Document:

Registration Rights Agreement dated March 18, 2010

 Exhibit 10.5 
 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION RIGHTS
AGREEMENT (“Agreement”) is made as of March 18, 2010 by and between eGames, Inc., a Pennsylvania corporation (the “Company”), and Bandera Master Fund L.P., a Cayman Islands limited partnership (the
“Investor”), and each person or entity that subsequently becomes a party to this Agreement pursuant to, and in accordance with, the provisions of Section 4 hereof (collectively, the “Permitted Transferees” and each
individually a “Permitted Transferee”). 
 WHEREAS, pursuant to a securities purchase agreement (the
“Purchase Agreement”), dated as of the date hereof, the Company has agreed to issue and sell to the Investor, and the Investor has agreed to purchase from the Company, 1,000,000 shares (the “Shares”) of the Company’s common
stock, without par value (the “Common Stock”), and the Company has agreed to issue to the Investor, and the Investor has agreed to accept from the Company, Warrant No. 1, dated March 18, 2010 (in whole or in part, the
“Warrant”), to purchase 1,000,000 shares (the “Warrant Shares”) of the Common Stock. 
 NOW,
THEREFORE, in consideration of the premises and mutual covenants contained herein, the parties hereto hereby agree as follows: 
 1. Definitions. As used in this Agreement, the following terms shall have the following respective meanings: 

“Board” shall mean the board of directors of the Company. 

“Purchase” shall mean the Closing Date under the Purchase Agreement. 

“Holder” shall mean, collectively, the Investor and the Permitted Transferees; provided,
however, that the term “Holder” shall not include any of the foregoing that ceases to own or hold any Registrable Securities. 
 “Qualifying Holder” shall have the meaning ascribed thereto in Section 4 hereof. 
 “Registrable Securities” shall mean the Shares and Warrant Shares of Common Stock, and shall include any shares of the Company’s Common Stock issued with respect to the Registrable
Securities as a result of any stock split, stock dividend, recapitalization, exchange or similar event; provided, however, that all Registrable Securities shall cease to be Registrable Securities once they have been sold pursuant to a registration
statement or in a transaction exempt from registration under the Securities Act. 
 “Rule
144” shall mean Rule 144 promulgated under the Securities Act and any successor or substitute rule, law or provision. 
 “SEC” shall mean the Securities and Exchange Commission. 
 “Securities Act” shall mean the Securities Act of 1933, as amended, and all of the rules and regulations promulgated there under. 

 “Purchase Date” shall mean the date of this
Agreement. 
 2. Effectiveness. This Agreement shall become effective and legally binding with respect to
an investor upon the investor’s Purchase of the Common Stock. 
 3. Registration Rights. 

3.1. Piggyback Registration. If the Company at any time after the Purchase Date proposes for any
reason to register any of its equity securities under the Securities Act (other than pursuant to a registration statement on Forms S-8 or S-4 or similar or successor form which is not available for registering the Common Stock for sale to the public
(collectively, the “Excluded Forms”)), it shall each such time promptly give written notice to all Holders of outstanding Shares, the Warrant and Warrant Shares of its intention so to do but in no event less than 30 days before the
anticipated filing date, and, upon the written request, given within 10 days after receipt of any such notice, of the Holders of any such Shares, Warrant and Warrant Shares to register any shares of Registrable Securities, shall use its best efforts
to cause all such shares of Registrable Securities then held by each such Holder to be registered under the Securities Act promptly upon receipt of the written request of such Holders for such registration, all to the extent requisite to permit the
sale or other disposition (in accordance with the intended methods thereof, as set forth in the holder’s written request) by the then Holders of the shares of Registrable Securities so registered. In the event that the proposed registration by
the Company is, in whole or in part, an underwritten public offering of securities of the Company, any request pursuant to this Section 3.1 to register shares of Registrable Securities may so specify, and such shares shall be included in the
underwriting on the same terms and conditions as the shares of Common Stock, if any, otherwise being sold through underwriters under such registration; provided, however, that the Company and all Holders proposing to distribute their
Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the managing underwriter or underwriters selected for such underwriting (including, without limitation, a market stand-off agreement
of up to 180 days after the effective date of such registration if required by such underwriters). Notwithstanding any other provision of this Agreement, if the managing underwriter(s) determine(s) in good faith that marketing factors require a
limitation of the number of shares to be underwritten, then the managing underwriter(s) may exclude shares (including up to 100% of the Registrable Securities from the registration and the underwriting, with the number of Registrable Securities, if
any, included in the registration and the underwriting being allocated to each of the Holders requesting inclusion of their Registrable Securities in such Registration Statement on a pro rata basis based on the total number of Registrable Securities
then held by each such Holder, provided that the number of Registrable Securities to be offered by the Holders may not be reduced below an amount equal to 15% of the total Registrable Securities offered. If any Holder disapproves of the terms of any
such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter(s), delivered at least 10 business days prior to the effective date of the Registration Statement. Any Registrable Securities
excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration. In each case, those shares of Registrable Securities which are excluded from the underwritten public offering shall be withheld from the market by
the holders thereof for a period, not to exceed 90 days, which the managing underwriter reasonably determines is necessary in order to effect the underwritten public offering. 

  
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 3.2. Preparation and Filing. If and whenever the
Company is under an obligation pursuant to the provisions of this Section 3 to use its best efforts to effect the registration of any shares of Registrable Securities, the Company shall, as promptly as reasonably practicable: 

(a) Prepare and file with the SEC such amendments and supplements to any Registration Statement and the
prospectus used in connection with such Registration Statement as may be necessary to comply with the provisions of the Securities Act with respect to the contemplated distribution of all securities covered by such Registration Statement for up to
90 days. 
 (b) Furnish to each Holder such number of copies of a prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities Act, as the Holder may reasonably request in order to facilitate the public sale or other disposition of such shares of Registrable Securities then held by such Holder.

 (c) Use its best efforts to register or qualify the shares of Registrable Securities covered
by such registration statement under the securities or blue sky laws of such jurisdictions as shall be appropriate, as reasonably requested by any of the selling Holders; provided, however, that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business, to file a general consent to service of process or to become subject to any material tax in any such states or jurisdictions and, provided, further, that
(notwithstanding anything in this Agreement to the contrary with respect to the bearing of expenses) if any jurisdiction in which any of such Registrable Securities then held by a selling Holder shall be qualified shall require that expenses
incurred in connection with the qualification therein of any such Registrable Securities be borne by the selling Holders without reimbursement by the Company, then each selling Holder shall, to the extent required by such jurisdiction, pay its
respective pro rata share of such qualification expenses. 
 (d) Notify each Holder of shares of
Registrable Securities covered by such registration statement, at any time when a related prospectus is required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a material fact or omits any fact necessary to make the statements therein not misleading in light of the circumstances in which they are made; and, thereafter, the Company
shall prepare and furnish to the Holders a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such prospectus, as so supplemented
or amended, shall not include an untrue statement of a material fact or omit to state a fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; provided,
however, that upon such notification by the Company, the selling Holders agree that they shall not offer or sell Registrable Securities unless and until (i) the Company has notified such selling Holders that it has prepared a supplement
or amendment to such prospectus and delivered copies of such supplement or amendment to such selling Holders or (ii) the Company has advised such selling Holders in writing that the use of the applicable prospectus may be resumed (it being
understood and agreed by the Company that the foregoing proviso shall in no way diminish or otherwise impair the Company’s obligation to prepare a prospectus amendment or supplement as 

  
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above provided in this Section 3.2(d) and deliver copies of same as above provided in Section 3.2(b). 

(e) In connection with a sale of Registrable Securities pursuant to such Registration Statement (assuming
that no stop order is in effect with respect to such Registration Statement at the time of such sale), cooperate with the selling Holder and provide the transfer agent for the Registrable Securities with such instructions and legal opinions as may
be required in order to facilitate the issuance to the purchaser (or the selling Holder’s broker) of new unlegended certificates for such Registrable Securities. 

(f) Use its best efforts to cause all Registrable Securities covered by the Registration Statement to be
listed on each securities exchange on which similar securities issued by the Company are then listed. 
 3.3. Expenses. All expenses incurred by the Company in effecting all registrations for Holders of Registrable Securities pursuant to this Section 3, including, without limitation, all
registration and filing fees, fees and expenses of complying with securities and blue sky laws, printing expenses and fees and disbursements of not more than one counsel for all the Holders of Registrable Securities requesting registration
thereunder, and of the independent certified public accountants (including the expenses of any special audits in connection with any such registration) (but excluding the compensation of regular employees of the Company which shall be paid in any
event by the Company), shall be paid by the Company; provided, however, that all underwriting discounts and selling commissions applicable to the shares of Registrable Securities covered by such registration shall be borne by the Holder or
Holders thereof; provided, further, that anything in this Agreement to the contrary notwithstanding, if any jurisdiction in which the securities shall be qualified shall require that expenses incurred in connection with the qualification of
the securities in that jurisdiction be borne by selling shareholders, then such expenses shall be payable by such selling shareholders pro rata based on the number of securities being registered, to the extent required by such jurisdiction.

 3.4. Indemnification. 

(a) Indemnification by the Company. The Company will indemnify each Holder of Registrable
Securities with respect to which registration has been effected pursuant to this Agreement, each of such Holder’s partners, officers, directors, employees, advisors and agents and each person controlling such Holder, against all claims, losses,
damages, costs, expenses and liabilities of any nature whatsoever (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any Registration Statement or prospectus
incident to any such registration, qualification or compliance, or arising out of or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not
misleading, or any violation by the Company of the Securities Act or any state securities law or of any rule or regulation promulgated under the Securities Act or any state securities law applicable to the Company and relating to action or inaction
required of the Company in connection with any such registration, and will reimburse each such Holder, each of its partners, officers, directors, employees, advisors and agents and each person controlling such Holder for any legal and other expenses
reasonably incurred in connection with investigating or defending 

  
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any such claim, loss, damage, cost, expense, liability or action, except that the Company will not be liable in any such case to the extent that any such claim, loss, damage, cost, expense,
liability or action arises out of or is based on any untrue statement or omission based upon information furnished to the Company by a Holder and stated to be specifically for use therein, and except that the foregoing indemnity agreement is subject
to the condition that, insofar as it relates to any such untrue statement (or alleged untrue statement) or omission (or alleged omission) made in the preliminary prospectus but eliminated or remedied in the amended prospectus on file with the SEC at
the time the Registration Statement becomes effective or in the amended prospectus filed with the SEC pursuant to Rule 424(b) (the “Final Prospectus”), such indemnity agreement shall not inure to the benefit of any Holder if a copy of the
Final Prospectus was furnished to the person or entity asserting the claim, loss, damage, cost, expense, liability or action at or prior to the time such action was required by the Securities Act. 

(b) Indemnification by the Holders. Each Holder will, if Registrable Securities held by or issuable
to such Holder are included in the securities to which a registration is being effected, indemnify the Company, each of its directors and officers and each person who controls the Company within the meaning of the Securities Act, and each other
Holder, each of such other Holder’s officers and directors and each person controlling such other Holder, against all claims, losses, damages, costs, expenses and liabilities of any nature whatsoever (or actions in respect thereof) arising out
of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such Registration Statement or that prospectus incident to any such registration, or arising out of or based on any omission (or alleged omission)
to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by such Holder of the Securities Act or any state securities law or of any rule or regulation promulgated
under the Securities Act or any state securities law applicable to such Holder and relating to action or inaction required of such Holder in connection with any such registration, and will reimburse the Company, such other Holders, and such
directors, officers and other persons for any legal or other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, cost, expense, liability or action, in each case to the extent, but only to the
extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such Registration Statement or prospectus in reliance upon and in conformity with information furnished to the Company by such indemnifying
Holder and stated to be specifically for use therein, except that the foregoing indemnity agreement is subject to the condition that, insofar as it relates to any such untrue statement (or alleged untrue statement) or omission (or alleged omission)
made in the preliminary prospectus but eliminated or remedied in the Final Prospectus, such indemnity agreement shall not inure to the benefit of the Company or any Holder if a copy of the Final Prospectus was furnished to the person or entity
asserting the claim, loss, damage, cost, expense, liability or action at or prior to the time such action was required by the Securities Act. The liability of any indemnifying Holder under this Section 3.4(b) shall be limited in respect of any
Registration Statement to an amount equal to the aggregate proceeds received in respect of the Registrable Securities sold by such Holder under such Registration Statement. 

(c) Indemnification Procedures. Each party entitled to indemnification under this Section 3
(the “Indemnified Party”), shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought,
and shall permit the Indemnifying 

  
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Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or
litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense. Failure of the Indemnified Party to give notice as provided herein shall relieve
the Indemnifying Party of its obligations under this Section 3 only to the extent that the failure or delay in giving notice has a material adverse impact on the ability of the Indemnifying Party to defend against such claim. No Indemnifying
Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof, the giving of a
release from all liability in respect to such claim or litigation. If any such Indemnified Party shall have been advised by counsel chosen by it that there may be one or more legal defenses available to such Indemnified Party that are different from
or additional to those available to the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense of such action on behalf of such Indemnified Party and will reimburse such Indemnified Party and any person controlling
such Indemnified Party for the reasonable fees and expenses of any counsel retained by the Indemnified Party, it being understood that the Indemnifying Party shall not, in connection with any one action or separate but similar or related actions in
the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys for such Indemnified Party or controlling person, which firm shall be
designated in writing by the Indemnified Party to the Indemnifying Party. 
 (d)
Contribution. In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (a) any party entitled to indemnification under this Section 3, makes a claim for
indemnification pursuant to this Section 3 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that
such indemnification may not be enforced in such case notwithstanding the fact that this Section 3 provides for indemnification in such case, or (b) contribution under the Securities Act may be required on the part of any such party in
circumstances for which indemnification is provided under this Section 3; then, and in each such case, the Company and each Holder whose securities were included in the registration in question will contribute to the aggregate losses, claims,
damages or liabilities to which they may be subject in such proportion as is appropriate to reflect the relative fault of each such party in connection with the events giving rise to such claims, losses, damages, costs, expenses and liabilities, as
well as any other relevant equitable considerations, provided, that each participating Holder shall be limited in respect of any Registration Statement to an amount equal to the aggregate proceeds received in respect of the Registrable Securities
sold by such Holder under such Registration Statement, provided further, however, that, in any such case, no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will
be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation. 
 (e) Alternative Indemnification. Notwithstanding the foregoing provisions of this Section 3.4, if the Company, the selling shareholders and the underwriters, pursuant to an underwritten public
offering of the Common Stock, enter into an underwriting or purchase agreement relating to such offering which contains provisions covering indemnification or contribution among the parties thereto in connection with such offering, then the

  
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indemnification or contribution provisions of this Section 3.4 shall be deemed inoperative for purposes of such offering. 

3.5. Information from Holders. In connection with any registration effected pursuant to this
Section 3, each holder of the shares of Registrable Securities then held by such Holder included in any registration effected pursuant to this Section 3 shall furnish to the Company such information with respect to it and its proposed
distribution as the Company shall reasonably request in writing on a timely basis and as shall be required by federal or state securities or blue sky laws applicable to such registration. The Company may exclude from such registration the
Registrable Securities of any such Holder who unreasonably fails to furnish such information within a reasonable time after receiving such request. 
 4. Transfer of Registration Rights. None of the rights of any Holder under this Agreement shall be transferred or assigned to any person unless (i) such person is a Qualifying Holder (as
defined below), (ii) such person agrees to become a party to, and bound by all of the terms and conditions of, this Agreement by duly executing and delivering to the Company an Instrument of Adherence in the form attached as Exhibit A hereto,
(iii) the transfer or assignment is made in accordance with the applicable requirements of the Purchase Agreement and (iv) following the transfer or assignment, the further disposition of the Registrable Securities by such person is
restricted under the Securities Act and applicable state securities laws. For purposes of this Section 4, the term “Qualifying Holder” shall mean, with respect to any Holder, any corporation, partnership or other affiliated entity
controlling, controlled by, or under common control with, such Holder, or any partner, if such Holder is a partnership, or any member, if such Holder is a limited liability company. None of the rights of any Holder under this Agreement shall be
transferred or assigned to any person that acquires Registrable Securities in the event that and to the extent that such Person is eligible to resell all of such Registrable Securities pursuant to Rule 144 of the Securities Act within a three-month
period. 
 5. Entire Agreement. This Agreement constitutes and contains the entire agreement and
understanding of the parties with respect to the subject matter hereof, and it also supersedes any and all prior negotiations, correspondence, agreements or understandings with respect to the subject matter hereof. 

6. Deferral. Notwithstanding anything in this Agreement to the contrary, if the Company shall furnish to the
selling Holders a certificate signed by the President and Chief Executive Officer of the Company stating that the Board has made the good faith determination (i) that continued use by the selling Holders of the Registration Statement for
purposes of effecting offers or sales of Registrable Securities pursuant thereto would require, under the Securities Act, disclosure in the Registration Statement (or the prospectus relating thereto) of material, nonpublic information concerning the
Company, its business or prospects or any proposed transaction involving the Company, (ii) that such disclosure would be premature and would be adverse to the Company, its business or prospects or any such proposed transaction or would make the
successful consummation by the Company of any such transaction significantly less likely and (iii) that it is therefore essential to suspend the use by the Holders of such Registration Statement (and the prospectus relating thereto) for
purposes of effecting offers or sales of Registrable Securities pursuant thereto, then the right of the selling Holders to use the Registration Statement (and the prospectus relating thereto) for purposes of effecting offers or

  
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sales of Registrable Securities pursuant thereto shall be suspended for a period (the “Suspension Period”) of not more than 90 days after delivery by the Company of the certificate
referred to above in this Section 6. During the Suspension Period, the Holders agree that they shall not offer or sell any Registrable Securities pursuant to or in reliance upon the Registration Statement (or the prospectus relating thereto).
The Company may not exercise this right more than two times in each year after the Purchase Date. 
 7.
Miscellaneous. 
 (a) This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of New York, and shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors or assigns, provided that the terms and conditions of
Section 4 hereof are satisfied. This Agreement shall also be binding upon and inure to the benefit of any transferee of any of the Registrable Securities provided that the terms and conditions of Section 4 hereof are satisfied.
Notwithstanding anything in this Agreement to the contrary, if at any time any Holder shall cease to own all of its Registrable Securities or the Warrant, all of such Holder’s rights under this Agreement shall immediately terminate. 

(b) 

(i) Any notices, reports or other correspondence (hereinafter collectively referred to as
“correspondence”) required or permitted to be given hereunder shall be sent by courier (overnight or same day) or telecopy or delivered by hand to the party to whom such correspondence is required or permitted to be given hereunder. The
date of giving any notice shall be the date of its actual receipt. 
 (ii) All correspondence to
the Company shall be addressed as follows: 
 eGames, Inc. 

2000 Cabot Boulevard, Suite 110 
 Langhorne, PA 19047-1833 
 Attention: Gerald Klein, Chief
Executive Officer 
 Facsimile: 215-750-3722 

jklein@egames.com 
 with a copy to: 
 McCausland Keen & Buckman 

Radnor Court, Suite 160 
 259 North Radnor-Chester Road 
 Radnor, PA 19087-5251 

Attention: Nancy D. Weisberg, Esq. 

Facsimile: (610) 341-1099 
 nweisberg@mkbattorneys.com 
 (iii) All
correspondence to any Holder shall be sent to the address set forth on 

  
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such Holder’s signature page hereto (or, in the case of a Permitted Transferee, such Permitted Transferee’s Instrument of Adherence hereto). 

(iv) Any party may change the address to which correspondence to it is to be addressed by notification as
provided for herein. 
 (c) The parties acknowledge and agree that in the event of any breach of
this Agreement, remedies at law may be inadequate, and each of the parties hereto shall be entitled to seek specific performance of the obligations of the other parties hereto and such appropriate injunctive relief as may be granted by a court of
competent jurisdiction. 
 (d) This Agreement may be executed in a number of counterparts, each
of which together shall for all purposes constitute one Agreement, binding on all the parties hereto notwithstanding that all such parties have not signed the same counterpart. 

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

			
	eGAMES, INC.
		
	By:	 	/s/ Gerald W. Klein 
	Name:	 	Gerald W. Klein
	Title:	 	President and CEO
	
	BANDERA MASTER FUND L.P.

 By: Bandera Partners Management LLC, a Delaware 
 limited liability company, its General Partner

			
		
	By:	 	/s/ Jefferson Gramm
	Name:	 	Jefferson Gramm
	Title:	 	Managing Director

 Investor’s Address and Fax Number for Notice: 

Bandera Master Fund L.P. 
 c/o Bandera Partners Management LLC 
 50 Broad Street, Suite 1820

 New York, NY 10004 

  
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 EXHIBIT A 
 INSTRUMENT OF ADHERENCE 
 Reference is hereby made to that certain
Registration Rights Agreement, dated as of March 18, 2010, among eGames, Inc., a Pennsylvania corporation (the “Company”) and the Investor and the Permitted Transferees, as amended and in effect from time to time (the
“Registration Rights Agreement’). Capitalized terms used herein without definition shall have the respective meanings ascribed thereto in the Registration Rights Agreement. 

The undersigned, in order to become the owner or holder of, or have the right to acquire,
                     shares of Registrable Securities, hereby agrees that, from and after the date hereof, the undersigned has become a party
to the Registration Rights Agreement in the capacity of a Permitted Transferee, and is entitled to all of the benefits under, and is subject to all of the obligations, restrictions and limitations set forth in, the Registration Rights Agreement that
are applicable to Permitted Transferees. This Instrument of Adherence shall take effect and shall become a part of the Registration Rights Agreement immediately upon execution. 
 Print Name of Permitted Transferee: 
  

			
	 
		
	By:	 	 
	Name:
	Title:

 Permitted Transferee’s Address and Fax Number for Notice: 

 

			
	
	 
	
	 
	
	 

 Accepted: 

eGames, Inc.Senior Secured Promissory Note in the amount of $400,000

 Exhibit 10.6 
 THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (II) PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS IN WHICH THE HOLDER HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY
LAWFULLY BE MADE. 
 SENIOR SECURED PROMISSORY NOTE 

$400,000 
 Issue
Date: As of June 3, 2011 
 FOR VALUE RECEIVED, EGAMES, INC., a Pennsylvania corporation with an address of 2000
Cabot Boulevard West, Suite 110, Langhorne, PA 19047 (the “Company”) hereby promises to pay to the order of Fertilemind Capital Fund I or its successors, assigns and legal representatives (the
“Holder”), at 405 Lexington Avenue, Suite 2600, New York, NY 10174, or at such other location as the Holder may designate from time to time, the aggregate principal sum of Four Hundred Thousand Dollars ($400,000), in
lawful money of the United States of America, together with interest thereon at a rate of twenty-four percent (24%) per annum (the “Interest Rate”). 

1. Maturity. Unless prepaid by the Company pursuant to and in accordance with Section 2 hereof, this
Note shall mature on June 3, 2014 (the “Maturity Date”). On the Maturity Date, unless otherwise prepaid in accordance with the provisions hereof, one hundred (100%) of the then outstanding principal balance and any
accrued but unpaid interest due and owing on the Note shall be immediately paid by the Company to the Holder. 

2. Method of Payment. The Company shall by entering into an amendment (the “First
Amendment”) to the Visicom Agreement (as defined below) on the Issue Date instruct Visicom Media Inc. (“Visicom”) to pay directly to Holder all revenues generated pursuant to that certain Yahoo-Enabled Partner
Toolbar Agreement dated April 4, 2007 by and between Visicom and the Company (as amended on the date hereof pursuant to the First Amendment to, among other things, add the Holder as a party thereto, collectively with the First Amendment, the
“Visicom Agreement”), which payments shall be made by wire to the Holder pursuant to the wiring instructions attached as Schedule A to the Visicom Agreement. Such payments from Visicom to Holder shall be applied first
to accrued but unpaid interest and then to principal due to Holder under this Note. A copy of the fully executed Visicom Agreement (including the First Amendment) is annexed hereto as Exhibit A. To the extent that any payment due
hereunder is not paid or is less than the amount required to be paid hereunder on the date that any such payment is due hereunder, the Company shall pay the amount of any such shortfall within one (1) business day of receipt of notice of such
shortfall by the Holder. 
 3. Calculation and Payment of Interest. 

(a) This Note shall bear interest (“Interest”) at a rate equal to twenty-four
percent (24%) (the “Interest Rate”) per annum on a 360-day year basis. Interest shall be payable monthly in arrears, compounding daily through and including the last day of each calendar month, with the first interest
payment being due on July 3, 2011, and continuing on the third day of each and every succeeding month until all amounts owed under the Note shall have been fully repaid. The Note shall be payable in full on the earlier of (i) the Maturity
Date, and (ii) the Prepayment Date (as defined in Section 4 hereof, as the case may be. 
 (b) The Company agrees that upon the occurrence and during the continuation of an Event of Default, whether or not the Holder has accelerated payment of this Note, and after judgment has been rendered on
this Note and after the Maturity Date, the unpaid principal on this Note shall bear interest to the Holder at an annual rate of thirty (30%) percent and the Holder shall be entitled to any and all attorneys’ fees, costs and expenses
incurred in the collection of the amount of non-payment on the Note and any accrued but unpaid interest thereon. 

 (c) All payments to be made by the Company hereunder or
pursuant to the Note shall be made, without setoff or counterclaim, in lawful money of the United States and in immediately available funds. 
 (d) In the event that it is determined that, under the laws relating to usury applicable to the Company or the indebtedness evidenced by this Note (“Applicable Usury Laws”), the
interest charges and fees payable by the Company in connection herewith or in connection with any other document or instrument executed and delivered in connection herewith cause the effective interest rate applicable to the indebtedness evidenced
by this Note to exceed the maximum rate allowed by law (the “Maximum Rate”), then such interest shall be recalculated for the period in question and any excess over the Maximum Rate paid with respect to such period shall be
credited, without further agreement or notice, to the Principal Amount outstanding hereunder to reduce said balance by such amount with the same force and effect as though the Company had specifically designated such extra sums to be so applied to
principal and the Payee had agreed to accept such extra payment(s) as a premium-free prepayment. All such deemed prepayments shall be applied to the principal balance payable at maturity. In no event shall any agreed-to or actual exaction as
consideration for this Note exceed the limits imposed or provided by Applicable Usury Laws in the jurisdiction in which the Company is resident applicable to the use or detention of money or to forbearance in seeking its collection in the
jurisdiction in which the Company is resident. 
 4. Prepayment. Except for payments
of principal made under Section 2 of this Note, all or any portion of the principal amount of the Note may be prepaid by the Company, commencing at any time after July __, 2012, on or after the third (3rd) business day (the “Prepayment Date”)
following receipt by Holder of written notification from the Company of the Company’s intent to prepay the Note. Upon notice of prepayment being given by the Company, the Company covenants and agrees that it will pay the prepayment amount set
forth in such notice, on the date fixed for prepayment in such notice, together with interest accrued and unpaid thereon to the date fixed for such prepayment and together with any applicable costs and expenses of which Company has notice, all as a
condition to such prepayment. Interest, however, shall not stop accruing until the day following the day all such interest is actually received by the Holder. 
 5. Affirmative Covenants. The Company agrees that so long as any amounts payable under the Note remain unpaid, the Company shall: 

(a) Promptly pay and discharge all taxes, assessments and governmental charges or levies imposed upon its
income and profits, or upon any of its property, before the same shall become delinquent, as well as all claims for labor, materials and supplies which, if unpaid, might become a lien or charge upon such properties or any part thereof; provided,
however, that the Company shall not be required to pay and discharge any such tax, assessment, charge, levy or claim so long as the validity thereof shall be contested in good faith, by appropriate proceedings and the Company shall set aside on its
books adequate reserves in accordance with United States generally accepted accounting principles (“GAAP”) with respect to any such tax, assessment, charge, levy or claim so contested. 

(b) Do or cause to be done all things reasonably necessary to preserve and keep in full force and effect
its corporate existence, rights and franchises and comply with all laws applicable to the Company, except where the failure to comply would not have a material adverse effect on the Company. 

(c) At all times maintain, preserve, protect and keep its property used or useful in the conduct of its
business in good repair, working order and condition, and from time to time make all needful and proper repairs, renewals, replacements and improvements thereto as shall be reasonably required in the conduct of its business. 

(d) At all times keep true and correct books, records and accounts reflecting all of its business affairs
and transactions in accordance with GAAP. Such books and records shall be open at reasonable times and upon reasonable notice to the inspection of the Holder or its agents. 

(e) Pay all taxes imposed upon them or any of their properties or assets or with respect to any of their
franchises, businesses, income or property before any penalty accrues thereon. 

  
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 (f) Comply with the requirements of all applicable laws,
rules, regulations and orders of any governmental authority as now in effect and which may be imposed in the future in all jurisdictions in which the Company is not doing business of may hereafter be doing business, except where the failure to
comply would not have a material adverse effect on the Company. 
 (g) Do everything in its power
as requested by the Holder to preserve and protect the property covered by the Agreement (as such term is defined below). 
 (h) The Company shall use the net proceeds from the sale of this Note to pay reasonable and necessary expenses related to its acquisition and development of the proposed Heyday property and the operation
of its business. Notwithstanding anything to the contrary provided herein or elsewhere, no net proceeds from the sale of this Note shall be used to pay back salaries and/or make any other payments to affiliates of the Company. 

6. Sale-Leaseback Agreement. The Indebtedness (as such term is defined in Section 7 below) evidenced
by this Note and the obligations created hereby and thereby are secured pursuant to a Sale-Leaseback Agreement entered into by and between the Holder and the Company and dated of even date herewith (the “Agreement”). The
Company represents and covenants that the grant of the security interest pursuant to the Agreement is and shall remain while any Indebtedness under the Note is outstanding (including, but not limited to principal and accrued but unpaid interest
thereon), senior in all respects to all other security interests of the Company and/or its Subsidiaries with regard to all Company and/or its Subsidiaries’ assets and is not and shall not be subordinated to any other security interest or
guaranty of any other party. 
 7. Seniority and Liquidation Preference. 

(a) The Note will be senior in all respects to all Indebtedness of the Company and their Subsidiaries
including, but not limited to any subordinated debt. For purposes of this Note, the term “Indebtedness” shall mean all of the following, whether direct or indirect, joint or several, absolute or contingent, or now or
hereafter existing or arising, or due or to become due: all liabilities for borrowed money, obligations, advances, debts, guaranties, endorsements, covenants, duties of the Company and its successors and assigns to the Holder and its successors and
assigns. 
 (b) Any issuance of commercial debt, bank debt, or any other form of financing that
would rank senior and/or pari passu to the Note is prohibited. The Company, however, may issue senior financing to the Indebtedness if the proceeds of such financing are used to pay off the outstanding principal balance of the Note at 115% of the
principal amount outstanding at that time. 
 (c) In the event of any liquidation or winding up
of the Company, the Note will be accelerated and entitled to receive in preference to all other claim holders of the Company an amount equal to 115% of the principal amount outstanding plus all accrued but unpaid interest. 

(d) In the event of a merger, sale of substantially all of the assets of the Company, or other change of
control, the Note will be accelerated and entitled to receive in preference to all other claim holders of the Company an amount equal to 115% of the principal amount outstanding plus all accrued but unpaid interest thereon through the date of
payment. 
 8. Events of Default. Each of the following shall constitute an “Event of
Default” hereunder: 
 (a) The Company shall fail to pay any payments due under the
Note including, but not limited to, any principal amount of this Note and any accrued interest thereon, on the date that any such payment is due; 

(b) The Company shall fail to pay any other amount under this Note when due and payable (whether at the
maturity date therefor, upon acceleration or otherwise); 

  
 3 

 (c) Other than payment defaults set forth in
Section 8(a) and/or Section 8(b) of this Note, if (i) there shall have occurred and be continuing for a period of three (3) business days a breach (including, but not limited to any representation, warranty,
agreement and/or covenant) by the Company of any provision of this Note, the Agreement, the Warrant issued by the Company to the Holder in connection herewith and/or any ancillary document (collectively, the “Transaction
Documents”), and (ii) the Company has not been given a notice of a breach of the same provision of any Transaction Document within the preceding twelve (12) months, then such default may be cured (and no Event of Default will
have occurred) if the Company, after receiving written notice from Holder demanding cure of such default or an Event of Default caused by any such breach: (1) cures the default within five (5) business days; or (2) if the cure
requires more than five (5) business days, immediately initiates steps which Holder deems, in Holder’s sole discretion, to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps
sufficient to produce compliance as soon as reasonably practical and Holder provides Company an express written consent to cure the default and the number of days the Company has to cure the default.(d) Any representation or warranty made by the
Company in any Transaction Documents shall have been untrue or misleading when made and/or any covenant made by the Company herein is false or misleading at any time; 

(d) The Company is in default under, or in breach of, the provisions of the Visicom Agreement or any
agreement with any party other than the Holder. 
 (e) Judgment in an amount of $50,000 or more
is entered against the Company; 
 (f) Unless expressly consented to in writing by Holder, the
Company shall sell, transfer, lease or otherwise dispose of all or any substantial portion of its assets in one transaction or a series of related transactions, participate in any share exchange, consummate any recapitalization, reclassification,
reorganization or the Company shall adopt a plan of liquidation or dissolution or agree to do any of the foregoing; 
 (g) The Company shall have applied for or consented to the appointment of a custodian, receiver, trustee or liquidator, or other court-appointed fiduciary of all or a substantial part of its properties;
or a custodian, receiver, trustee or liquidator or other court appointed fiduciary shall have been appointed with or without the consent of the Company; , or the Company has made a general assignment for the benefit of creditors; or the Company
files a voluntary petition in bankruptcy, or a petition or an answer seeking reorganization or an arrangement with creditors or seeking to take advantage of any insolvency law, or an answer admitting the material allegations of a petition in any
bankruptcy, reorganization or insolvency proceeding or has taken action for the purpose of effecting any of the foregoing; or if, within ninety (90) days after the commencement of any proceeding against the Company seeking any reorganization,
rehabilitation, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the Federal bankruptcy code or similar order under future similar legislation, the appointment of any trustee, receiver, custodian, liquidator,
or other court-appointed fiduciary of the Company or of all or any substantial part of its properties, such order or appointment shall not have been vacated or stayed on appeal or otherwise or if, within ninety (90) days after the expiration of
any such stay, such order or appointment shall not have been vacated (collectively, “Insolvency Events”). 
 Upon the occurrence of any Event of Default and during its continuation as provided hereunder, the Holder may, at its option, declare all amounts due hereunder to be due and payable immediately and, upon
any such declaration, the same shall become and be immediately due and payable. If an Insolvency Event occurs with respect to the Company, then all amounts due hereunder, shall become immediately due and payable without any declaration or other act
on the part of the Holder. Upon the occurrence of any Event of Default and during its continuation as provided hereunder, the Holder may, in addition to declaring all amounts due hereunder to be immediately due and payable, pursue any available
remedy, whether at law or in equity, including but not limited to those remedies set forth in the Agreement. If an Event of Default occurs the Company shall pay to the Holder all of its reasonable attorneys’ fees and disbursements and all other
reasonable out-of-pocket costs incurred by the Holder in order to collect amounts due and owing under this Note or otherwise to enforce the Holder’s rights and remedies hereunder. 

9. Waiver of Presentment, Demand and Dishonor. The Company hereby waives presentment for payment, protest, demand,
notice of protest, notice of non-payment and diligence with respect to this Note, and waives and renounces all rights to the benefit of any statute of limitations or any moratorium, appraisement,

  
 4 

 
exemption or homestead now provided or that hereafter may be provided by any federal or applicable state statute, including but not limited to exemptions provided by or allowed under the Federal
Bankruptcy Code, both as to itself and as to all of its property, whether real or personal, against the enforcement and collection of the obligations evidenced by this Note and any and all extensions, renewals and modifications hereof. 

No failure on the part of the Holder hereof to exercise any right or remedy hereunder with respect to the Company,
whether before or after the happening of an Event of Default, shall constitute a waiver of any future Event of Default or of any other Event of Default. No failure to accelerate the debt of the Company evidenced hereby by reason of an Event of
Default or indulgence granted from time to time shall be construed to be a waiver of the right to insist upon prompt payment thereafter; nor shall be deemed to be a novation of this Note or a reinstatement of such debt evidenced hereby or a waiver
of such right of acceleration or any other right, or be construed so as to preclude the exercise of any right the Holder may have, whether by law, by agreement or otherwise; and the Company hereby expressly waives the benefit of any statute or rule
of law or equity that would produce a result contrary to or in conflict with the foregoing. 
 10.
Enforcement Costs. In the case of any Event of Default, the Company shall pay to the Holder all amounts incurred by the Holder due to such Event of Default, including all reasonable attorneys fees and expenses and all costs of collection and
enforcement. 
 11. Amendment; Waiver. Any term of this Note may be amended or waived only upon the
written consent of the Company and the Holder. No such waiver or consent on any one instance shall be construed to be a continuing waiver or a waiver in any other instance unless it expressly so provides. 

12. Transfers. The Holder shall have the right to transfer this Note or any interest herein in any transaction
meeting the requirements of applicable securities laws. The Company shall not have the right to transfer any of its obligations hereunder without the Holder’s express prior written consent. 

13. Binding Effect, Governing Law; Consent to Jurisdiction. This Note shall be governed by and construed solely
and exclusively in accordance with the internal laws of the State of New York without regard to the conflicts of laws principles thereof. The parties hereto hereby expressly and irrevocably agree that any suit or proceeding arising directly and/or
indirectly pursuant to or under this Note shall be brought solely in a federal or state court located in the City, County and State of New York. By its execution hereof, the parties hereby covenant and irrevocably submit to the in
personam jurisdiction of the federal and state courts located in the City, County and State of New York and agree that any process in any such action may be served upon any of them personally, or by certified mail or registered mail upon them
or their agent, return receipt requested, with the same full force and effect as if personally served upon them in New York City. The parties hereto expressly and irrevocably waive any claim that any such jurisdiction is not a convenient forum for
any such suit or proceeding and any defense or lack of in personam jurisdiction with respect thereto. In the event of any such action or proceeding, the party prevailing therein shall be entitled to payment from the other party hereto
of all of its reasonable counsel fees and disbursements. 
 14. Fees and Expenses. The Company shall pay
all fees and expenses incurred in connection with the negotiation, preparation, execution, delivery and performance of this Note and the other Transaction Documents including, but not limited to, the reasonable legal fees of the Holder’s legal
counsel, as well as its own fees and expenses, including but not limited to the fees and expenses of each such parties’ advisors, counsel, accountants and other experts, if any, and all other expenses incurred in connection therewith.

 15. Notices. All notices required or permitted hereunder shall be in writing and shall be deemed
effectively given: (a) upon personal delivery to the party to be notified; (b) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (c) the next business day after
deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the parties hereto at their addresses set forth above. 

[SIGNATURE PAGE TO FOLLOW] 

  
 5 

 IN WITNESS WHEREOF, this Note has been duly executed by the parties hereto as of the
date set first above written. 
  

					
	COMPANY:
	eGames, Inc.
		
	By:	 	/s/ Gerald W. Klein
		 	Name:	 	Gerald W. Klein 
		 	Title: 	 	Chief Executive Officer

  

					
	HOLDER:
	 Fertilemind Capital Fund I

			
		 	By:	 	Fertilemind Management, LLC 
			
		 	By:	 	/s/ Aram Fuchs 
		 	Name:	 	Aram Fuchs 
		 	Title:	 	Managing Member

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