SEC Contract Filing

Filing Date: 2022-07-14

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>ea162834ex10-2_liveone.htm
<DESCRIPTION>AMENDMENT NO. 2 OF NOTES AGREEMENT, DATED AS OF JULY 6, 2022, BETWEEN THE COMPANY AND HARVEST SMALL CAP PARTNERS, LTD
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.2</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AMENDMENT NO. 2 OF NOTES AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Amendment No. 2 of Notes
Agreement (this &ldquo;<U>Agreement</U>&rdquo;), dated as of July 6, 2022 and effective as of the same date (the &ldquo;<U>Effective Date</U>&rdquo;),
is entered into between LiveOne, Inc., a Delaware corporation (the &ldquo;<U>Company</U>&rdquo;), and Harvest Small Cap Partners Master,
Ltd., a company organized under the laws of Cayman Islands (the &ldquo;<U>Noteholder</U>&rdquo;). Capitalized terms used in this Agreement
but not defined herein have the meanings ascribed to them in the Securities Purchase Agreement, dated as of July 2, 2020, as amended on
July 30, 2020 (the &ldquo;<U>SPA</U>&rdquo;), between the Company and No Street Capital LLC, a Delaware limited liability company, pursuant
to which the Note was issued to the Noteholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>Recitals</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS, </B>the Company
and the Noteholder entered into that certain 8.5% Senior Secured Convertible Note in the aggregate amount of $10,503,965 (the &ldquo;<U>Note</U>&rdquo;)
originally issued on September 15, 2020 and amended on June 3, 2021; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS, </B>the Company
and the Noteholder desire to (i) amend the Note, (ii) extend the maturity date of the Note and (iii) agree to certain other terms as set
forth herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>Agreement</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>NOW THEREFORE</B>, in consideration
of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by each of the parties, the parties mutually agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A.&nbsp;<U>Maturity
Date</U>. The maturity date of the Note shall be extended to June 3, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">B.&nbsp;<U>Interest
Payments</U>. The quarterly interest payment due to Noteholder for the fiscal quarter ended June 30, 2022 (the &ldquo;<U>June Interest
Payment</U>&rdquo;) shall be paid by the Company to Noteholder no later than July 18, 2022; provided that if the Company does not pay
the June Interest Payment by July 18, 2022, the Company shall pay the default interest rate set forth in the Note and an additional $50,000
shall be added to the accrued interest as a penalty. The quarterly interest payment due to Noteholder for the fiscal quarter ending September
30, 2022 shall be due and payable at the same time as the quarterly interest payment due and payable to Noteholder for the fiscal quarter
ending December 31, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">C.&nbsp;<U>Free
Cash Restriction</U>. The amount of Free Cash (as such term is defined in the Note) required under Section 6(c) of the Note shall be as
follows with no other changes to Section 6(c): (i) $7,000,000 from the date hereof through December 31, 2022 (inclusive), (ii) $8,000,000
from January 1, 2023 and until June 30, 2023 (inclusive), and (iii) $10,000,000 from July 1, 2023 and until the Note is repaid in full
at its maturity date of June 3, 2024; provided, that in the event that the Note is repaid or prepaid by the Company, the amount of Free
Cash required under Section 6(c) of the Note shall be then permanently reduced to the amount equal to the product of (x) (A) the aggregate
principal amount of the Note then outstanding, plus (B) the aggregate principal amount of the Company&rsquo;s 8.5% Senior Secured Convertible
Note in the aggregate a