Document:

TENTH AMENDMENT TO CREDIT AGREEMENT

 

THIS TENTH AMENDMENT
TO CREDIT AGREEMENT (this "Amendment") is dated as of July 29, 2013 (the "Effective Date") between
JPMORGAN CHASE BANK, N.A., as Administrative Agent, Issuing Bank, Swingline Lender, and as a Lender and ESCALADE, INCORPORATED
(the "Borrower").

 

Recitals

 

The Borrower and JPMorgan
Chase Bank, N.A., as Administrative Agent, Issuing Bank, and a Lender are parties to a Credit Agreement, dated as of April 30,
2009 (as amended by a First Amendment to Credit Agreement, dated as of July 29, 2009, a Second Amendment to Credit Agreement,
dated as of September 30, 2009, a Third Amendment to Credit Agreement dated as of October 30, 2009, a Fourth Amendment
to Credit Agreement dated as of March 1, 2010, a Fifth Amendment to Credit Agreement dated as of April 15, 2010, a Sixth Amendment
to Credit Agreement, dated as of May 31, 2010, a Seventh Amendment to Credit Agreement, dated as of April 14, 2011, an Eighth Amendment
to Credit Agreement, dated as of May 4, 2012, and a Ninth Amendment to Credit Agreement dated as of March 1, 2013, the "Credit
Agreement"). As of the Effective Date, JPMorgan Chase Bank, N.A. is the only Lender under the Credit Agreement.

 

The Borrower is requesting
the Lender and the Administrative Agent to agree to amend the Credit Agreement as made by and in accordance with the terms of this
Amendment.

 

Agreement

 

NOW, THEREFORE, in consideration
of the premises, the mutual covenants and agreements herein, and each act performed and to be performed hereunder, the Administrative
Agent, the Lender, Issuing Bank, Swingline Lender, and the Borrower agree as follows:

 

1.                 
Amendment to the Credit Agreement. As of the Effective Date, the following definition set forth in Section
1.01 of the Credit Agreement is amended and, as so amended, restated to read as follows:

 

"Revolving
USD Loan Maturity Date" means September 30, 2013, or any earlier date on which: (i) the Revolving USD Loan Commitments
are reduced to zero or otherwise terminated pursuant to the terms of this Amendment; or (ii) the maturity of the Revolving USD
Loans is accelerated pursuant to the terms of this Amendment.

 

2.                 
Binding on Successors and Assigns. All of the terms and provisions of this Amendment shall be binding upon
and inure to the benefit of the parties hereto, their respective successors, assigns and legal representatives.

 

3.                 
Governing Law. This Amendment is a contract made under, and shall be governed by and construed in accordance
with the laws of the State of Indiana.

 

    	-1-

    	 

    

 

4.                 
Amendment of Other Loan Documents. All references to the Credit Agreement in the other Loan Documents shall
mean the Credit Agreement, as modified and amended by this Amendment and as it may be further amended, modified, extended, renewed,
supplemented and/or restated from time to time and at any time. Except as expressly modified and amended by this Amendment, all
of the terms and provisions of the Credit Agreement and the other Loan Documents remain in full force and effect, and are fully
binding on the parties thereto and their respective successors and assigns.

 

5.                 
Counterparts. This Amendment may be executed in two or more counterparts, each of which shall constitute an
original, but all of which when taken together shall constitute but one agreement.

 

6.                 
Defined Terms. Except as expressly otherwise stated in this Amendment, all terms used in this Amendment and
the Recitals that are defined in the Credit Agreement, and that are not otherwise defined in this Amendment, shall have the same
meanings in this Amendment as in the Credit Agreement.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed and delivered by their respective authorized signatories.

 

 

	 	JPMORGAN CHASE BANK, N.A., as

                                                                                Administrative Agent, Issuing Bank, Swingline

                                                                                Lender and Lender

	 	 	 
	 	By:	 /s/Randall K. Stephens
	 	 	Randall K. Stephens, Senior Vice President
	 	 	 
	 	 	 
	 	ESCALADE, INCORPORATED
	 	By:	 /s/Deborah J. Meinert
	 	 	Deborah J. Meinert, VP Finance and CFO

 

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Consent and Reaffirmation

 

Each of the undersigned
expressly consents to the execution, delivery and performance by the Borrower, the Issuing Bank, the Swingline Lender, the Lender
and the Administrative Agent of the Tenth Amendment to Credit Agreement, dated as of July 29, 2013 (the "Amendment")
and all agreements, instruments and documents delivered pursuant to the Amendment, and agrees that neither the provisions of the
Amendment nor any action taken or not taken in accordance with the terms of the Amendment shall constitute a termination, extinguishment,
release, or discharge of any of its obligations under the Unlimited Continuing Guaranty, dated as of April 30, 2009, in favor of
the Lender and the Administrative Agent guaranteeing payment of the Secured Obligations when due (each a "Guaranty"),
or provide a defense, set off, or counterclaim to it with respect to any of its obligations under such Guaranty or any other Loan
Documents. Each of the undersigned affirms to the Issuing Bank, the Swingline Lender, the Lender and the Administrative Agent that
its Guaranty is in full force and effect, is a valid and binding obligation of the undersigned and continues to secure and support
the Secured Obligations, the payment of which is guaranteed by the undersigned pursuant to the Guaranty. Each of the undersigned
acknowledges and agrees that the fact that the Administrative Agent, the Issuing Bank, the Swingline Lender, and the Lender have
sought this Reaffirmation does not create any obligation, right, or expectation that the Administrative Agent and the Lender will
seek the undersigned's consent to or reaffirmation with respect to any other or further amendments or modifications to the Credit
Agreement or the Loan Documents.

 

Dated as of July 29,
2013.

 

 

 

	Bear Archery, Inc.	 	Martin Yale Industries, Inc.	 
	 	 	 	 	 	 
	By: 	/s/Deborah
    J. Meinert	 	By:  	/s/Deborah J. Meinert	 
	Deborah J. Meinert, VP Finance and Secretary	 	Deborah J. Meinert, VP Finance and Secretary	 
	 	 	 	 	 	 
	EIM Company, Inc.	 	Olympia Business Systems, Inc.	 
	 	 	 	 	 	 
	By:	/s/Deborah
J. Meinert	 	By: 	/s/Deborah J. Meinert	 
	Deborah J. Meinert, VP Finance and Secretary	 	Deborah J. Meinert, VP Finance and Secretary	 
	 	 	 	 	 	 
	Escalade Insurance, Inc.	 	SOP Services, Inc.	 
	 	 	 	 	 	 
	By:	/s/Deborah
J. Meinert	 	By: 	/s/Deborah J. Meinert	 
	Deborah J. Meinert, VP Finance and Secretary	 	Deborah J. Meinert, VP Finance and Secretary	 
	 	 	 	 	 	 
	Escalade Sports Playground, Inc.	 	U. S. Weight, Inc.	 
	 	 	 	 	 	 
	By:	/s/Deborah J. Meinert	 	By: 	/s/Deborah J. Meinert	 
	Deborah J. Meinert, VP Finance and Secretary	 	Deborah J. Meinert, VP Finance and Secretary 	 
	 	 	 	 	 	 
	Harvard Sports, Inc.	 	Indian Industries, Inc.	 
	 	 	 	 	 	 
	By:	/s/Deborah J. Meinert	 	By: 	/s/Deborah J. Meinert	 
	Deborah J. Meinert, VP Finance and Secretary	 	Deborah J. Meinert, VP Finance and Secretary	 
	 	 	 	 	 	 

  

    	-3-THE SECURITIES REPRESENTED BY THIS INSTRUMENT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED,
SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE
STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

 

PROMISSORY
NOTE

 

	Principal Amount: [
    _________ ]	Executed:[
    _________ ]

 

Loton, Corp., a Nevada
corporation (the “Company”), for value received, hereby promises to pay to the order of Trinad Capital Master Fund,
Ltd. (“Holder”) on    [
    _________ ] or when sooner declared due and payable in accordance herewith (the “Maturity
Date”) the sum of US[
    _________ ] (the “Principal Amount”). The unpaid principal balance of this Promissory Note (this
“Note”) at any time, together with all accrued and unpaid interest thereon at such time, is referred to herein as the
“Note Amount”.

 

1.          Interest.
Interest shall accrue on the outstanding Principal Amount at the rate of 6% per annum from the date hereof. All such interest shall
be calculated on the basis of a 365-day year for actual days elapsed. Payment shall be made at 4751 Wilshire Boulevard, 3rd
Floor, Los Angeles, California 90010.

 

2.          Maturity;
Prepayment. The outstanding unpaid principal balance and accrued but unpaid interest shall be due and payable on the Maturity
Date, unless such term is extended in the sole and absolute discretion of Holder. In the event that the Company closes, prior to
June 17, 2014, a capital-raising transaction or series of transactions for the sale of Company capital stock for or in excess of
$500,000, the Maturity Date shall be accelerated to the date of the closing of such transaction or series of transactions. The
Company may prepay all or part of the accrued but unpaid interest or principal balance due under this Note, without premium or
penalty.

 

3.          Event of Default.
Upon the occurrence of any Event of Default (as defined herein), this Note, upon written notice to the Company, shall forthwith
be immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly
waived, and the Holder may exercise any and all rights and remedies available to it under this Note or as provided by law. The
acceptance of any payment by Holder after the time when it is due shall not be held to establish a custom, or to waive any rights
of Holder to enforce payments when due of any further payments, or any other rights, nor shall any failure or delay to exercise
any rights be held to waive the same. An “Event of Default” shall mean the occurrence of any of the following events:

 

(a)          Failure to
Pay. The Company shall fail to pay (i) when due any principal or interest payment on the due date hereunder or (ii) any other
payment required under the terms of this Note on the date due and such payment shall not have been made within five (5) days of
the Company’s receipt of Holder’s written notice to the Company of such failure to pay; or

 

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(b)          Breaches of
Covenants. The Company shall fail to observe or perform any other covenant, obligation, condition or agreement contained in
this Note and the Loan (i) such failure shall continue for fifteen (15) days, or (ii) if such failure is not curable within such
fifteen (15) day period, but is reasonably capable of cure within thirty (30) days, either (A) such failure shall continue for
thirty (30) days or (B) the Company shall not have commenced a cure in a manner reasonably satisfactory to Investor within the
initial fifteen (15) day period; or

 

(c)          Voluntary Bankruptcy
or Insolvency Proceedings. The Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator
or custodian of itself or of all or a substantial part of its property, (ii) be unable, or admit in writing its inability, to pay
its debts generally as they mature, (iii) make a general assignment for the benefit of its or any of its creditors, (iv) be dissolved
or liquidated, (v) become insolvent (as such term may be defined or interpreted under any applicable statute), (vi) commence a
voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under
any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment
of or taking possession of its property by any official in an involuntary case or other proceeding commenced against it, or (vii)
take any action for the purpose of effecting any of the foregoing; or

 

(d)          Involuntary
Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator or custodian of the
Company of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation,
reorganization or other relief with respect to the Company or the debts thereof under any bankruptcy, insolvency or other similar
law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or
discharged within thirty (30) days of commencement.

 

4.          Waivers; Continued
Liability. It is agreed that the granting to the Company or any other party of an extension or extensions of time for the payment
of any sum or sums due under this Note or the exercising or failure to exercise of any right or power under this Note, shall not
in any way release or affect the liability of the Company evidenced by this Note.

 

5.          Waiver.
The Company expressly waives presentment, protest, demand, notice of dishonor, notice of nonpayment, notice of maturity, notice
of protest, presentment for the purpose of accelerating maturity, and diligence in collection.

 

6.          Amendment
and Waiver. No term, condition or provision of this Note may be amended or waived except in a writing signed by both the Company
and Holder.

 

7.          Governing
Law. This Note will be governed by and construed in accordance with the laws of the State of California applicable to contracts
made and to be performed entirely within such State. Each of the Company and Holder agrees to submit to the exclusive jurisdiction
and venue of the United States District Court for the Southern District of California for any civil action, suit or proceeding
arising out of or relating to this Note or the transactions contemplated hereby. To the extent permitted by applicable law, each
of the Company and Holder hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to this
Note or the transactions contemplated hereby or thereby.

 

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8.          Headings.
The headings of the various paragraphs of this Note are for convenience of reference only and shall in no way modify any of the
terms or provisions of this Note.

 

[Signature Page to
Follow]

 

 

 

 

 

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IN WITNESS WHEREOF,
the undersigned has executed and delivered this Note as of the day and year first above written.

 

	 	LOTON, CORP.
	 	 	 	 
	 	 	 	 
	 	By:		 
	 	Name: Robert S. Ellin	 
	 	Title: Chief Executive Officer

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