Document:

Exhibit 10.16

   

SOFTWARE TRANSFER
AGREEMENT

 

This SOFTWARE TRANSFER AGREEMENT
(this “Agreement”) is entered into as of April 7, 2019, by and between Swiss Interactive Software GmbH,
a Swiss corporation with offices at Ave. Beauregard 12, 1700 Fribourg, Switzerland (“Swiss Interactive”), and
Esports Entertainment Group, Inc., a Nevada corporation with its principal office at 170 Pater House, Psaila Street, Birkirkara,
Malta, (“Esports Entertainment”) (Swiss Interactive and Esports Entertainment each, a “Party;”
together, the “Parties”).

 

RECITALS

 

WHEREAS, Swiss Interactive
is (with the exception of the rights in respect of the Third Party Software (as defined below)) the sole owner of all rights, title,
and interest in and to the Transferred Software (as defined below);

 

WHEREAS, Swiss Interactive
desires to transfer to Esports Entertainment in exchange for Esports Entertainment’s payment of the Transfer Fee, and Esports Entertainment
has agreed to pay the Transfer Fee and (in consideration of such payment, to receive from Swiss Interactive, ownership of the Transferred
Software;

 

NOW, THEREFORE, in consideration
of the foregoing and of the mutual promises contained in this Agreement, the Parties hereby agree as follows:

 

AGREEMENT

 

ARTICLE I

 

DEFINITIONS AND CONSTRUCTION

 

1.1. Capitalized Terms. The following
capitalized terms shall have the meanings set forth below:

 

“Confidential
Information” means any and all confidential information (whether in oral, written or electronic form) given including
technical or other information imparted in confidence or disclosed by one party to the other or otherwise obtained by one party
relating to the other’s business, finance or technology, know-how, intellectual property, assets, strategy, products and customers,
including without limitation information relating to manufacturing or other processes, management, financial, marketing, technical
and other arrangements or operations of any associate, person, firm, or organisation associated with that party. Without limitation
to the foregoing, Confidential Information shall include this Agreement, its terms and the Parties intention to enter into the
Transaction.

 

“Derivative
Work” has the meaning ascribed to it under the United States Copyright Law, Title 17 U.S.C. Sec. 101 et. seq., as
the same may be amended from time to time.

 

“Documentation”
means any documentation relating to the Transferred Software in the possession or under the control of Swiss Interactive as at
the date of this Agreement, photos, comments, to the code, graphics, logos, software, and source code set out in Exhibit A to this
Agreement.

 

“Effective Date” means the date upon
which the Qualified Offering is consummated.

 

“Intellectual
Property Rights” means all past, present and future intellectual property or proprietary rights of any kind recognized
in any country or jurisdiction in the world, in each case registered or unregistered, including, without limitation, in and to,
arising out of, or associated with: (i) all United States and foreign patents and applications therefor, including provisional
applications, and all reissues, divisions, renewals, extensions, continuations and continuations-in-part thereof (“Patents”);
(ii) all rights (other than Patents) in inventions (whether patentable or not), invention disclosures, improvements, trade secrets,
proprietary information, know-how, technology and technical data (“Trade Secrets”); and (iii) all copyrights,
copyright registrations and applications therefor and all other rights corresponding thereto throughout the world (“Copyrights”).

 

“Initial Payment” means the sum of
$1,360,000 plus VAT or any other applicable sales tax thereon.

  

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“Open Source Software” means
means any open source software or libraries or code licensed from time to time under any form of open source license, including
the General Public License (as described by the Free Software Foundation and set out at http://www.opensource.org/docs/definition.php.

 

“Prior Grantee” means those third
parties who have been granted a license to, or otherwise have a right, to the Transferred Software.

 

“Qualified Offering” means
(i) any private placement offerings or one or more registered public offerings by the Company under the Securities Act of 1933,
as amended (the “Securities Act”), pursuant to which Esports Entertainment receives proceeds in an amount greater than
$6,000,000 in exchange for securities of Esports Entertainment, or (ii) any private placement offerings or one or more registered
public offerings by Esports Entertainment under the Securities Act in connection with its listing onto a national securities exchange.

 

“Transfer Fee” means the sum of
$1,700,000 excluding any VAT or other sales tax applicable to such sum.

 

“Third Party Software”
means any Software that is a component of, or necessary to compile, the Transferred Software and that is either not owned by Swiss
Interactive to which Swiss Interactive is restricted from transferring ownership to Esports Entertainment.

 

“Transaction”
means the proposed assignment and transfer of (amongst other things) the Transferred Software, as contemplated by this Agreement.

 

“Transfer Documents”
means the short form assignment set out in Exhibit B hereof, together with all other assignments, licenses, consents, documents
or further instruments of transfer listed in that schedule.

 

“Transferred Confidential
Information” means the Confidential Information in the possession or under the control of Swiss Interactive that relates
solely to the Transferred Software, other than the Excluded Transferred Confidential Information.

 

“Transferred Intellectual Property Rights”
means all Intellectual Property Rights in and to the Transferred Software.

 

“Transferred Software”
means with the exception of the Third Party Software, the betting exchange and pool betting and other software which is described
in Exhibit A to this Agreement and used by Esports Entertainment as at the Closing of this Agreement in connection with their online
wagering platform.

 

1.2 Construction.
For purposes of this Agreement, whenever the context requires:

 

(a) the
singular number will include the plural, and vice versa; the masculine gender will include the feminine and neuter genders; the
feminine gender will include the masculine and neuter genders; and the neuter gender will include the masculine and feminine genders;

 

(b) the
words “include” and “including” and variations thereof, will not be deemed to be terms of limitation, but rather
will be deemed to be followed by the words “without limitation;”

 

(c) except
as otherwise indicated, all references in this Agreement to “Sections” and “Exhibits” are intended to refer
to Sections of this Agreement and Exhibits to this Agreement; and

 

(d) the
headings in this Agreement are for convenience of reference only, will not be deemed to be a part of this Agreement, and will not
be referred to in connection with the construction or interpretation of this Agreement.

  

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ARTICLE II 

 

SOFTWARE TRANSFER
AND DELIVERY

 

2.1 Assignment. In
consideration for Esports Entertainment’s payment of the Transfer Fee in accordance with Section 3.1 and Section 3.2
hereof, Swiss Interactive undertakes to grant, convey and assign with immediate effect on its receipt of payment of the
Initial Payment all its rights in and to:

 

(a) the
Transferred Software;

 

(b) the
Transferred Intellectual Property Rights;

 

(c) the
Transferred Confidential Information.

 

(together, the “Assigned
Matters”) to be held and enjoyed by Esports Entertainment and its successors and assigns. Esports Entertainment hereby
accepts the foregoing grants, conveyances and assignments.

 

2.2 Further
Assurances. Swiss Interactive shall, following the Closing, take all reasonable actions, render such assistance and
execute such documents as Esports Entertainment may reasonably request, at Esports Entertainment’s sole expense. Swiss
Interactive will also (on Esports Entertainment’s request and at is sole cost) assist Esports Entertainment in filing and
pursuing Malta Gaming Authority applications at Esports Entertainment’s expense.

 

2.3 Ownership. Without
limiting the foregoing, upon the Closing, Esports Entertainment will have the right to commercialize, prepare and
sell products based upon, license, sublicense, prepare derivative works from, and otherwise use and exploit the Transferred
Software and Transferred Intellectual Property Rights, free of all liens and encumbrances.

 

2.4 Delivery.
On the Closing Date, Swiss Interactive shall deliver to Esports Entertainment:

 

(a) the
Transferred Software via FTP (File Transfer Protocol) download;

 

(b) an affirmation
for Software product purchase by electronic transfer as set forth in Exhibit B; and

 

(c) the
Transfer Documents.

 

2.5 Third
Party Software. [License, delivery etc, procuring license to use the same as currently enjoyed]

 

No Assumed
Liabilities. The Parties agree that Esports Entertainment shall not assume any of the liabilities of Swiss Interactive to
third parties that are associated with the Transferred Software or the Transferred Intellectual Property Rights that have
arisen prior to Closing, regardless of whether any such liabilities are determined or asserted after Closing has taken
place.

 

ARTICLE III

 

TRANSFER FEE AND CLOSING

 

3.1 Purchase
and Sate; Transfer Fee.

 

(a) Esports
Entertainment shall pay the Transfer Fee in accordance with this Section 3.1 in consideration for Swiss Interactive’s
undertaking to transfer and assign to Esports Interactive the Assigned Items in accordance with Section 2.1 hereof.

 

(b) Esports
Entertainment shall pay to Swiss Interactive:

 

(i)
the Initial Payment, on the Closing Date (as defined below); and

 

(ii)
the Final Payment, not later than the date which is 90 days after the Closing Date (the “Final Payment Date”).

  

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(c) Esports
Entertainment shall make each payment set out as due to be made by it under this Section3.1 in cleared funds by electronic transfer
to the following bank account, details of which are set out below:

 

Bank:

 

Account Number:

 

Sort Code:

 

IBAN:

 

Swift:

 

(d) The
Transferred Software shall be sold, assigned and transferred to and purchased by Purchaser upon the Initial Payment Date, in consideration
for the Initial Payment and the obligation to make the Final Payment.

 

3.2 Execution,
Closing and Post Closing Obligations.

 

		(a)	Upon execution and delivery of this Agreement, each of
the parties shall deliver to the other party, the following:

 

		(i)	this Agreement including any and all Exhibits and schedules
related thereto; and

 

		(ii)	all associated supporting documentation set out expressly
as to be delivered by it on the signature of this Agreement,

 

properly executed by it or on it behalf.

 

(b) Without
unreasonable delay following the Effective Date and in any event within 5 business days of its occurrence, Esports
Entertainment shall notify Swiss Interactive in writing of the occurrence of the Effective Date, specifying the date upon
which it wishes Closing to occur (the “Closing Date”), which shall be a date no later than 10 business days
following the Effective Date. Following its receipt of Esports Entertainment’s notice give under this Section3.2(b)

 

		(c)	on the Closing Date:

 

		(i)	Esports
Entertainment shall deliver to Swiss Interactive the Initial Payment in accordance with Section3.1(b)(i); and

 

		(ii)	Swiss
Interactive shall deliver to Esports Entertainment matters set out to be delivered by it to Esports Entertainment under Section2.4
of this Agreement, in accordance with that clause, together with the Transfer Documents.

 

		(d)	On the Final Payment Date:

 

		(i)	Esports
Entertainment shall deliver to Swiss Interactive the Final Payment; and

 

		(ii)	Swiss
Interactive shall on Esports Entertainment’s reasonable request and sole cost do all such things and shall deliver all such
documents and matters as may be in its possession or under its control and sign all such documents as may be reasonably necessary
to complete the assignment and transfer of the Assigned Matters to Esports Entertainment.

 

(e) For
purposes of this Agreement, ‘Closing’ shall be deemed to have taken place on each of the parties having performed its
obligations set out in Section3.2(c) of this Agreement.

 

(f) Without
prejudice to any other provision of this Agreement, in the event that the Effective Date does not take place prior to the
date which is [6 months] after the date of this Agreement (the “Deadline Date”), then the Agreement shall terminate
with immediate-effect on the Deadline Date and neither party shall have any further rights or obligations to the other party
hereunder, notwithstanding the pre-existing Software License Agreement between the Parties.

  

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3.3 Taxes.

 

(a) Payment
of Taxes. Swiss Interactive shall be solely responsible for the payment of, and shall pay when due and indemnify Esports Entertainment
against, all applicable federal and state taxes, including any use, excise or transfer taxes and other taxes associated with payments
to Swiss Interactive under this Agreement (except for taxes assessed on Esports Entertainment’s net income and any sales, VAT
or other tax applicable to the proposed transaction itself). The Parties shall cooperate and take all reasonable steps to reduce
any transfer taxes associated with the transactions contemplated hereby.

 

(b) Post-Closing
Tax Covenants.

 

(i) In
the case of any personal property taxes (or other similar taxes) attributable to the Transferred Software, Swiss Interactive shall
be responsible for tax returns which cover the taxable period through and until the Effective Date and, subject to the provisions
of Section 3.3(b)(ii) Esports Entertainment shall be responsible for tax returns relating to the taxable period from the Effective
Date forward.

 

(ii) To
the extent relevant to the Transferred Software, each Party shall (at the other Party’s sole cost) (i) provide the other with such
assistance as may reasonably be required in connection with the preparation of any tax return and the conduct of any audit or other
examination by any taxing authority or in connection with judicial or administrative proceedings relating to any liability for
taxes; and (ii) retain and provide the other with all records or other information that may be relevant to the preparation of any
tax returns, or the conduct of any audit or examination, or other proceeding relating to taxes.

 

ARTICLE IV

 

NON-COMPETE AND EXCLUSIVITY

 

4.1 Non-compete
and (Non-Solicit). Commencing on the Closing Date and for twenty-four (24) months thereafter, Swiss Interactive shall
not engage in developing on behalf of any other person or entity any software which is wholly or mainly designed for the
purposes of competing with the Transferred Software for use in real money wagering on esports events, or which has features
and / or functions which are similar to those of the Transferred Software and which compete with those of the Transferred
Software for use in real money wagering on esports events. The Parties agree that such covenant is necessary to protect
Esports Entertainment’s Trade Secrets in and to the Transferred Software and the value of Esports Entertainment’s investment
in the Transferred Software

 

4.2 Non-Solicitation. Commencing
on the Closing Date and for twenty-four (24) months thereafter, Swiss Interactive shall not, and shall cause its subsidiaries
not to, (a) directly or indirectly, hire, engage or employ (as an employee, consultant or otherwise) any Esports Employee,
contractors, or affiliates set forth on Exhibit A attached hereto (collectively, “Buyer Employees”), (b)
through any director or officer of Swiss Interactive, directly or indirectly, solicit for employment or the engagement of
services of any Buyer Employee or induce or attempt to induce any Buyer Employee to leave his or her employment with Esports
Entertainment, or in any way intentionally interfere with the employment relationship between any Buyer Employee and Esports
Entertainment or any Affiliate of Esports Entertainment, in each case for the purpose of employing or engaging the services
of such Esports Employee or soliciting such Esports Employee to become an employee or consultant of Swiss Interactive or its
subsidiaries or any other person.

 

4.3 Separate
Covenants. The covenants contained in Section 4 will be construed as a series of separate covenants, one for each county,
city, state and country of the geographic scope. If, in any judicial proceeding, a court refuses to enforce any of such separate
covenants (or any part thereof), then such unenforceable covenant (or such part) will be eliminated from this Agreement to the
extent necessary to permit the remaining separate covenants (or portions thereof) to be enforced. In the event that the provisions
of Sections 4.1 are deemed to exceed the time, geographic or scope limitations permitted by applicable law, then such provisions
will be reformed to the maximum time, geographic or scope limitations, as the case may be, permitted by applicable laws.

  

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ARTICLE V

 

CONFIDENTIAL INFORMATION

 

5.1 Transferred
Confidential Information. all Transferred Confidential Information shall become the sole property of Esports
Entertainment on Closing, and Swiss Interactive shall have no further interest therein, unless Swiss Interactive . In the
event that Swiss Interactive obtains notice that it has retained any Transferred Confidential Information following Closing,
it shall upon Esports Entertainment’s request, promptly provide to Esports Entertainment all such Transferred Confidential
Information.

 

5.2 Exclusions. Notwithstanding
the provisions of Section 5.1, the Transferred Confidential Information shall exclude all Confidential Information that Swiss
Interactive can demonstrate: (i) was independently developed by Swiss Interactive either: (A) without any use of
Esports Entertainment’s Confidential Information; or (B) by Swiss Interactive’s employees or other agents (or independent
contractors hired by Swiss Interactive) without use of Esports Entertainment’s Confidential Information (provided that this
Section does not limit the terms of Section 4); (ii) becomes known to Swiss Interactive, without restriction, from a source
other than Esports Entertainment that had a right to disclose it without breach of this Agreement; or (iii) was in the public
domain at the time it was disclosed or enters the public domain through no act or omission of Swiss Interactive in breach of
this Agreement.

 

5.3 Transferred
Software. Notwithstanding anything in Sections 5.1 and 5.2, all Confidential Information which relates solely to the
Transferred Software and any other non-public information which relates directly and solely to the Transferred Intellectual
Property Rights shall be deemed as from Closing the Confidential Information of Esports Entertainment.

 

5.4 Confidentiality
Obligation and retained Intellectual Property Rights.

 

		(a)	As from the date of this Agreement, each Party shall maintain
the confidentiality of the other party’s Confidential Information and shall not without the prior written consent of the other
use, disclose, copy or modify the other party’s Confidential Information (or permit others to do so) other than:

 

		(i)	as
necessary for the performance of its rights and obligations under this Agreement;

 

		(ii)	with the consent of the other Party; or

 

		(iii)	as
required by applicable law, by court or governmental or regulatory order to be disclosed provided that the relevant party, where
possible, notifies the other party at the earliest opportunity before making any disclosure.

 

		(b)	The provisions of this Section shall not apply to information
which:

 

		(i)	is
or comes into the public domain through no fault of the recipient, its officers, employees. agents or contractors;

 

		(ii)	is
lawfully received by the recipient from a third party free of any obligation of confidence at the time of its disclosure; or

 

		(iii)	is independently developed by the recipient, without access
to or use of such information. 

 

The obligations under this Section shall continue for a period of 24 months from Closing.

 

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		(c)	Without
limiting the foregoing, each Party shall use at least the same degree of care which it uses to prevent the disclosure of its own
Confidential Information of like importance, but in no event with less than reasonable care, to prevent the disclosure of the
other Party’s Confidential Information. Each Party further agrees to take all reasonable precautions to prevent any unauthorized
disclosure or use of any of the other Party’s Confidential Information.

 

		5.5	Confidentiality of Agreement.

 

		(a)	Each Party agrees that the terms and conditions, and the
existence, of this Agreement shall be treated as Confidential Information and that no reference to the terms and conditions of
this Agreement or to activities pertaining thereto may be made in any form of public or commercial advertising without the prior
written consent of the other Party, which shall not be unreasonably withheld; provided, however, that either Party may
disclose the terms and conditions of this Agreement: (i) to its legal counsel; (ii) as required by any court or other governmental
body, or to the extent required by a recognized investment exchange; or (ii) as otherwise required by law.

 

5.6 Remedies. Unauthorized
use by either Party of the other Party’s Confidential Information will diminish the value of such information. Therefore, a
Party breaches any of its obligations with respect to confidentiality or use of Confidential Information hereunder, the other
Party agrees and acknowledges that such Party shall be entitled to seek equitable relief to protect its interest
therein, including injunctive relief, as well as money damages.

 

5.7 Required
Disclosure. In the event that either Party believes that it will be compelled, or is compelled, by a court,
administrative agency, or other governmental body to disclose the other Party’s Confidential Information, it shall, to the
extent permitted under applicable law: (i) provide prompt notice thereof to the other Party so that the other Party make take
steps to oppose such disclosure, and (ii) cooperate with the other Party’s reasonable attempts to oppose such disclosure, and
(iii) at the sole cost of the other Party, use its reasonable efforts to obtain a protective order or otherwise prevent
unrestricted or public disclosure of such information.

 

5.8 Public
Announcements. Neither Party shall make any public announcement relating to this Agreement except upon the other Party’s
prior written consent, which shall not be unreasonably withheld. Notwithstanding the previous sentence, each Party
acknowledges that either Party shall be entitled to withhold its consent to the other Party making a public announcement
relating to this Agreement if the making of such public announcement would cause the relevant Party to be in breach of
applicable law or the rules of a recognized investment exchange upon which its securities are listed.

 

5.9 Retained
Intellectual Property Rights.

 

	 	(a)	Except as expressly agreed above, no Intellectual Property Rights of either party are transferred or licensed as a result of this Agreement, Swiss Interactive shall have no ongoing right to use or license or otherwise encumber or exploit the Transferred Software or any other of the Assigned Matters or any part of any of them (or permit others to do so) following Closing.

 

	 	(b)	Each Party shall be entitled to use in any way it deems fit any skills, techniques or know how acquired or developed or used in connection with the Transferred Software or otherwise in connection with this Agreement provided always that such skills, techniques or know how do not infringe the other party’s Intellectual Property Rights now or in the future or disclose or breach the confidentiality of the other party’s Confidential Information.

  

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ARTICLE VI

 

REPRESENTATIONS AND
WARRANTIES

 

6.1 General. Each
Party represents and warrants to the other that: (i) such Party has the full right, power and authority to enter into this
Agreement and fully perform its obligations hereunder; and (ii) the making of this Agreement and such Party’s performance of
all its obligations hereunder is not prohibited by or in conflict with any agreement between such Party and any third
party.

 

6.2 Warranty.
Swiss Interactive represents and warrants to Esports Entertainment that, as of the date of this Agreement:

 

		(a)	the
Transferred Software and Transferred Intellectual Property Rights do not infringe any third party’s Intellectual Property Rights
and Swiss Interactive is the sole and exclusive owner of the Transferred Software and Transferred Intellectual Property Rights;

 

		(b)	it
shall (subject to Esports Entertainment’s payment of the Initial Payment in accordance with Section 3.1 on Closing convey to Esports
Entertainment all of its right, title and interest to the Transferred Software and Transferred Intellectual Property Rights, free
and clear of all liens. mortgages, pledges, security interests, encumbrances or charges of any kind or description and upon Closing,
it shall procure that Esports Entertainment is entitled to good title in the Transferred Software and Transferred Intellectual
Property Rights;

 

(b) Exhibit
C contains a complete, accurate list and description of all Third-Party Software and other technology of third parties included
in the Transferred Software;

 

(c)
Exhibit D contains a complete, accurate list and description of all Prior Grantees;

 

(d) it
has not transferred ownership of, granted any exclusive license of or right to or authorized the retention of any exclusive rights
to or joint ownership of, any Transferred Software;

 

(e) it
has not permitted its rights in the Transferred Intellectual Property Rights to lapse or enter the public domain; and no open source
or public library software, including any version of any software licensed pursuant to any GNU public license, was used in the
development or modification of any Software that is or was Transferred Software or is incorporated into any Transferred Software;

 

(f) in
each case in which Swiss Interactive has acquired any Transferred Software from any person, it has obtained a valid and enforceable
assignment sufficient to irrevocably transfer all rights in and to all such Transferred Software and Transferred Intellectual Property
Rights (including the right to seek past and future damages with respect thereto) to Swiss Interactive;

 

(g) it
has no knowledge of any facts or circumstances that would render any Transferred Intellectual Property Rights invalid or unenforceable;

 

(h) there
is no action, suit, claim, proceeding or investigation of any nature, to Swiss Interactive’s knowledge, pending or threatened against
Swiss Interactive relating to the Transferred Software or Transferred Intellectual Property Rights, nor is there any reasonable
basis therefore.

 

(i) to
Swiss Interactive’s knowledge, there is no investigation or other proceeding pending or threatened relating to the Transferred
Software by or before any governmental entity, nor is there any reasonable basis therefor; and there are no judgments nor orders
or decrees issued by any governmental entity, nor orders or decrees, citations, fines or penalties heretofore assessed against
Swiss Interactive, affecting the Transferred Software under any foreign, federal, state or local law.

 

(j) the
Transferred Software is free and clear of any liens or encumbrances;

 

(k) it
is the exclusive owner of the Transferred Software and the Transferred Intellectual Property Rights;

 

(l) no Transferred Software
or Transferred Intellectual Property Rights is subject to any proceeding or outstanding decree, order, judgment or settlement
agreement or stipulation that restricts in any manner the use, transfer or licensing thereof by Swiss Interactive or may affect
the validity, use or enforceability of such Transferred Software or Transferred Intellectual Property Rights by Esports Entertainment;

  

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(m) following
Closing, as far as Swiss Interactive is aware, Esports Entertainment will be permitted to exploit the Transferred Software to the
same extent Swiss Interactive would have been able to had the transactions contemplated by this Agreement not occurred and without
the payment of any additional amounts or consideration to Swiss Interactive (but without prejudice to Esports Entertainment’s obligation
to pay the Final Payment to Swiss Interactive in accordance with Section 3.1 hereof,

 

(n) to
Swiss Interactive’s knowledge, no person is infringing any Transferred Intellectual Property Rights;

 

(o) it
has taken all reasonable steps to protect Swiss Interactive’s rights in its Confidential Information and Trade Secrets within the
Transferred Software; and

 

(p) neither
the execution and delivery of this Agreement by Swiss Interactive, nor the consummation by Swiss Interactive of the transactions
contemplated hereby, will (i) require any consent, approval, authorization or permit of, or filing, registration or qualification
with or prior notification to, any governmental or regulatory authority under any law of the United States, any state or any political
subdivision thereof applicable to Swiss Interactive, (ii) violate any statute, law, ordinance, rule or regulation of the United
States, any state or any political subdivision thereof, or any judgment, order, writ, decree or injunction applicable to Swiss
Interactive or any of Swiss Interactive’s properties or assets, the violation of which would have a material adverse effect upon
Swiss Interactive, or (iii) violate, conflict with, or result in a breach of any provisions of, or constitute a default (or any
event which, with or without due notice or lapse of time, or both, would constitute a default) under, or result in the termination
of, or accelerate the performance required by, any of the terms, conditions or provisions of any note, bond, mortgage, indenture,
deed of trust, license, lease, agreement or other instrument or obligation to which Seller is a party or by which Swiss Interactive
or any of Swiss Interactive’s properties or assets may be bound which would have a material adverse effect upon Seller

 

ARTICLE VII

 

INDEMNIFICATION

 

7.1 Indemnification
by Swiss Interactive. Subject always to Esports Entertainment’s performance of its obligations under Section 7.2, Swiss Interactive
shall indemnify and hold harmless Esports Entertainment and its officers, directors, and employees from and against any and all:

 

		(a)	any harm or damages incurred by Esports Entertainment that
may arise from claims against the Transferred Software or Swiss Interactive prior to Esports Entertainment’s acquisition of the
Transferred Software under this Agreement.

 

7.2 Conditions
to Indemnification. Swiss Interactive’s obligation to indemnify Esports Entertainment under Section 7.1 shall be subject
to Esports Entertainment:

 

		(a)	providing Swiss Interactive with prompt and full written
notice of any third party claim for which it requires indemnification under Section 7.1 (“Relevant Claim”), setting
out full details of the applicable Relevant Claim;

 

		(b)	 not making
any admission of liability nor agreeing any settlement or compromise of an applicable Relevant Claim without the prior written
consent of Swiss Interactive (which shall not be unreasonably withheld or delayed);

 

		(c)	permitting Swiss Interactive at its request and own expense
have conduct of the settlement of all negotiations and litigation in respect of the applicable Relevant Claim;

  

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		(d)	providing
Swiss Interactive with proper and full information and its prompt and reasonable assistance in relation to the defense, negotiation
and/or settle any such Relevant Claim; and

 

		(e)	not
having prior to the applicable Relevant Claim arising amended or otherwise modified the Transferred Software with the effect that
it infringes third party Intellectual Property Rights or otherwise causes the Transferred Software to breach the Warranties.

 

7.3 Mitigation:
In respect of any indemnity given by either party under this Agreement, the Party which receives the benefit of the indemnity
shall take all reasonable steps so as to reduce or mitigate the loss covered by the indemnity.

 

7.4 Infringement.If Esports
Entertainment receives notice of a claim that any of the Transferred Software or Work Product as delivered by Swiss
Interactive to Esports Entertainment hereunder infringes any third party’s intellectual property rights, or if Esports
Entertainment reasonably believes that such a claim may occur, Esports Entertainment shall notify Swiss Interactive. In the
event of the foregoing or if Swiss Interactive reasonably believes that such a claim may occur, Swiss Interactive shall, with
Esports Entertainment’s written consent (which shall not be unreasonably withheld, conditioned or delayed), either: (i)
procure for Esports Entertainment the right to continue to exercise the rights to such Transferred Software granted to
Esports Entertainment under this Agreement; or (ii) provide Esports Entertainment with alternative non-infringing technology
with substantially equivalent functionality.

 

7.5 Limitations
and Exclusions of Liability.

 

		(a)	Modifications: Swiss Interactive shall have no liability
hereunder, with respect to any claim or damages to the extent arising from or relating to:

 

		(i)	any
modification made to the Transferred Software by a party other than Swiss Interactive, if such infringement would not have occurred
but for such modification; or

 

		(ii)	any
combination of the Transferred Software by Swiss Interactive hereunder with Transferred Software, hardware or other technology
or materials supplied by anyone other than Swiss Interactive, if such infringement or misappropriation would not have occurred
but for such combination.

 

		(b)	Performance: Esports Entertainment acknowledges
and agrees that:

 

		(i)	Swiss Interactive is not and cannot be aware of the extent
of any potential loss or damage to Esports Entertainment resulting from any failure of the Transferred Software or any failure
by Swiss Interactive to discharge its obligations under this Agreement:

 

		(ii)	Swiss Interactive does not warrant or represent that the
Transferred Software shall be:

 

		(A)	uninterrupted or error free; and

 

		(B)	compatible with other software or equipment; and

 

		(iii)	no warranties are given in relation to any Third-Party
Software or Open Source Software.

 

		(iv)	Swiss Interactive agrees to, at its own expense and on
a best efforts basis, remedy any errors in the Transferred Software that are detected by Esports Entertainment for a period of
up to six months after the Closing.

  

    10

     

    

 

		(c)	Limitations: In no event shall the aggregate liability
of any Party to the other (whether in contract, tort (including negligence) or otherwise) and in respect of all claims, losses
and damages arising under or in connection with this Agreement exceed:

  

		(i)	$100,000
in respect of any one claim or series of related claims; and

 

		(ii)	provided
that this shall be subject to an overall limit of $1,360,000 in respect of any and all claims, losses and damages arising under
or in connection with this Agreement.

 

		(d)	Exclusions: Neither Party’s liability to the other
in contract, tort (including negligence), for misrepresentation (whether innocent or negligent), for breach of statutory duty
or otherwise arising out of or in connection with this Agreement shall not extend to any loss of profits, business opportunity,
goodwill, data anticipated savings or any special, indirect or consequential loss or damage whatsoever, even if foreseeable or
if Swiss Interactive has been advised of the possibility of such damage.

 

		(e)	Time Limitation:

 

		(i)	Esports
Entertainment shall not bring a claim against Swiss Interactive for breach of the Warranties or in respect of Swiss Interactive’s
breach of any other provision of this Agreement (including for the avoidance of doubt a claim under the Warranties) unless written
notice has been given to Swiss Interactive 5 days after Esports Entertainment becomes aware of the grounds for a claim, and in
any event, on or before the date which is 18 (eighteen) calendar months after Closing (the “Claim Date”), providing
details of the nature of the claim in reasonably sufficient detail and, so far as practicable, the amount claimed.

 

		(ii)	Any
claim referred to in Section 7.4(e)(i) above shall become fully barred and unenforceable on the Claim Date unless proceedings
in respect of that claim have been commenced. For this purpose proceedings shall not be deemed to have been commenced unless they
have been issued and served upon Swiss Interactive.

 

		(f)	Specific Limitations: Esports Entertainment shall
not be able to bring a claim against Swiss Interactive if and to the extent that:

 

		(i)	the breach on which the claim is based occurs as a result
of any legislation not in force at the date of this Agreement taking effect retrospectively, any increase in the rates of taxation
in force at that date or as a consequence of a change in the interpretation of the law in any jurisdiction after the date of this
Agreement;

 

		(ii)	the breach on which the claim is based would not have arisen
but for any voluntary act, omission, transaction or arrangement by or with Esports Entertainment or any person connected with
Esports Entertainment after Closing otherwise than in the ordinary course of conducting its business which Esports Entertainment
knew or ought reasonably to have known could give rise to a claim;

 

		(g)	Disclosure: No claim shall be made by Esports Entertainment
in respect of Swiss Interactive’s breach of the Warranties or under the indemnities set out in Section7.1 if Esports Entertainment
has actual, constructive or imputed knowledge of the fact, omission, circumstance or occurrence.

 

		(h)	Nature and Scope of Limitations

 

		(i)	The parties agree that the limitations on liability in
this Agreement are fundamental to the Agreement and are reasonable given their respective commercial positions and ability to
purchase relevant insurance in respect of risks under this Agreement. Esports Entertainment acknowledges that Swiss Interactive
would not provide the Transferred Software to Esports Entertainment without such limitations.

  

    11

     

    

 

		(ii)	Notwithstanding any other aspect of this Section 7.4, neither
Party excludes or limits any liability for:

 

		(A)	personal
injury (including sickness and death) to the extent that such injury results from the negligence or wilful default of a party
or its employees; or

 

		(B)	fraud or fraudulent misrepresentation; or

 

		(C)	any
breach of any obligations implied by section 12 of the Sale of Goods Act 1979 or section 2 of the Supply of Goods and Services
Act 1982; or

 

		(D)	any
other liability to the extent the same cannot be excluded or limited by law.

 

ARTICLE VIII

 

GENERAL

 

8.1 Expenses.
Except as expressly provided herein, each Party shall be solely responsible for its own costs and expenses (including its attorneys’
fees and accountants’ fees): (i) incurred in negotiating and consummating the transactions contemplated hereby; and (ii) for maintaining
and perfecting the rights granted to such Party hereunder. including costs for recordation of documents, registration of rights
and payment of government fees incurred after Closing.

 

8.2 No
Agency. Each Party shall in all matters relating to this Agreement act as an independent contractor. Neither Party shall have
authority, nor shall either Party represent that it has any authority, to assume or create any obligation, express or implied,
on behalf of the other, or to represent the other Party as agent or employee or in any other capacity. Neither execution nor performance
of this Agreement shall be construed to have established any agency, joint venture, or partnership.

 

8.3 Attorneys’
Fees. if any legal action or other legal proceeding relating to this Agreement or the enforcement of any provision of this
Agreement is brought against any Party to this Agreement, the Parties shall each pay their own costs.

 

8.4 Notices.
Any notice or other communication required or permitted to be delivered to any Party under this Agreement must be in writing and
shall be deemed properly delivered, given and received when delivered (by hand, by registered mail, by courier or express delivery
service or by facsimile) to the address or email address set forth beneath the name of such Party below (or to such other address
or email address as such Party may have specified in a written notice given to the other Party):

 

If to Esports Entertainment:

 

Address:

 

Esports Entertainment Group, Inc.

170 Pater
House, Psaila Street

Birkirkara, Malta

 

Email
Address: grant@esportsentertainmentgroup.com

  

    12

     

    

 

If to Swiss Interactive:

  

Address:

 

Swiss Interactive Software GmbH

Ave. Beauregard 12

1700 Fribourg, Switzerland

 

Email Address: yan@swissbet.com

  

8.5 Governing
Law. This letter agreement is governed by, and interpreted in accordance with, the laws of the State of Nevada without regard
to conflict of laws principles.

 

8.6 Forum
and Venue. Any judicial action or proceeding arising hereunder or relating hereto shall be brought in, and the Parties hereby
consent to the exclusive, personal jurisdiction of, the Courts of Nevada.

 

8.7 Injunctive
Relief. It is understood and agreed that, notwithstanding any other provision of this Agreement either Party’s breach of confidentiality
obligations or provisions relating to proprietary rights will cause irreparable damage for which recovery of money damages would
be inadequate, and that the other Party will therefore be entitled to seek timely, injunctive relief to protect such Party’s rights
under this Agreement in addition to any and all remedies available at law.

 

8.8 Waiver.
No failure on the part of a Party to exercise any power, right, privilege, or remedy under this Agreement, and no delay on the
part of any Party in exercising any power, right, privilege, or remedy under this Agreement, will operate as a waiver of such power,
right, privilege, or remedy; and no single or partial exercise of any such power, right, privilege, or remedy will preclude any
other or further exercise thereof or of any other power, right, privilege, or remedy.

 

(a) No
Party shall he deemed to have waived any claim arising from this Agreement, or any power, right, privilege or remedy under this
Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly
executed and delivered on behalf of such Party; and any such waiver will not be applicable or have any effect except in the specific
instance in which it is given.

 

8.9 Assignment.
Esports Entertainment may assign all of its assets and other rights acquired hereunder (but not its obligations) in their entirety
and in whole, and in part, provided the successor agrees in writing to be bound by all of the obligations set forth in this Agreement
in the same manner as Esports Entertainment and such assignment or transfer does not serve to increase the liability of Swiss Interactive
under this Agreement. Swiss Interactive shall have no right to assign or transfer this Agreement, or any of its rights hereunder,
without the prior permission of Esports Entertainment, which may be granted or withheld at Esports Entertainment’s sole discretion.
Any assignment in violation of this Section 8.9 is null and void.

 

8.10 Severability.
If, for any reason, a court of competent jurisdiction finds any provision of this Agreement, or portion thereof, to be invalid
or unenforceable, such provision of the Agreement will be enforced to the maximum extent permissible so as to effect the intent
of the Parties, and the remainder of this Agreement will continue in full force and effect. The Parties agree to negotiate in good
faith an enforceable substitute provision for any unenforceable provision that most nearly achieves the intent and economic effect
of the unenforceable provision. Notwithstanding the foregoing, if a court of competent jurisdiction determines that any restriction
on any license granted herein is invalid or unenforceable, then the license grants to which such restriction relates shall terminate
automatically.

 

8.11 Entire
Agreement. This Agreement (including the Exhibits hereto) sets forth the entire understanding of the Parties hereto relating
to the subject matter hereof and supersedes all prior agreements and understandings between the Parties hereto relating to the
subject matter hereof.

 

8.12 Amendments.
This Agreement may not be amended, modified, altered or supplemented other than by means of a written instrument duly executed
and delivered on behalf of Swiss Interactive and Esports Entertainment.

  

    13

     

    

 

8.13 Counterparts.
This Agreement may be executed in counterparts, which, when taken together, shall constitute one agreement.

 

8.14 Waiver; Remedies
Cumulative. The rights and remedies of the Parties are cumulative and not alternative. Neither any failure nor any delay by
any Party in exercising any right, power or privilege under this Agreement or any o f the documents referred to in this Agreement
will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege
will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege.
To the maximum extent permitted by law: (a) no claim or right arising out of this Agreement or any of the documents referred to
in this Agreement can be discharged by one Party, in whole or in part, by a waiver or renunciation of the claim or right unless
in writing signed by another Party; (b) no waiver that may be given by a Party will be applicable except in the specific
instance for which it is given; and (c) no notice to or demand on one Party will be deemed to be a waiver of any obligation of
that Party or of the right of the Party giving such notice or demand to take further action without notice or demand as provided
in this Agreement or the documents referred to in this Agreement.

 

IN WITNESS WHEREOF,
the Parties, by their duly authorized representatives, have executed this Agreement as of the Effective Date.

 

	Swiss Interactive software GmbH.	 	Esports Entertainment Group,
    Inc.
	 	 	 
	By:	 /s/ Yan Rozum	 	By:	/s/ Grant Johnson
	Name:  	Yan Rozum	 	Name: 	 Grant Johnson
	Title: 	Director	 	Title: 	Chief Executive Officer

 

    14

     

    

 

EXHIBIT A

 

Transferred Software and Delivery

 

TRANSFERRED SOFTWARE:

 

The betting exchange and pool betting software currently
used by Esports Entertainment on www.vie.gg as at the date of the Closing:

 

		(i)	Wagering Platform

 

		a.	Player management module

		b.	Payments and transaction module

		c.	Bets module

		d.	CMS module

		e.	Desktop and mobile browser-based application for wagering
platform

 

		(ii)	Betting Exchange Platform

 

		a.	Exchange events creation module

		b.	Exchange events settlement module

		c.	Automatic data importer from Sportsradar AG data supplier

		d.	Desktop and mobile browser-based application for betting
exchange platform

 

		(iii)	Pool Betting Platform

 

		a.	Pool betting events creation module

		b.	Pool betting settlement module

		c.	Automatic data importer from Abiosgaming.com data supplier

		d.	Desktop and mobile browser-based application for pool betting
platform

 

DELIVERY: On the Effective Date, Swiss Interactive
shall make the Transferred Software and any related documentation or other Transferred Software available at an agreed upon secure
Web site for FTP (File Transfer Protocol) download to Esports Entertainment’s facility.

  

    15

     

    

 

EXHIBIT B

 

Affirmation for Software Product Purchase by Electronic
Transfer

 

The undersigned hereby affirm the following to
be true:

 

On the 4th day
of November 2019, the following software products were delivered to Esports Entertainment Group, Inc. (“Esports
Entertainment”) at Malta via electronic transfer:

 

a. Proof Positive
Transferred Software as more fully described in the Software Transfer of Agreement between

 

Esports Entertainment and Swiss Interactive
dated 4th November, 2019.

 

Electronic
Transmission via Remote Telecommunication delivery.

 

The software products were transferred to Esports
Entertainment by telecommunications or via Internet download to Esports Entertainment’s computer.

 

Esports Entertainment warrants that, at no time
during or after installation of this software product(s) did any employee of Esports Entertainment come into possession of any
of the computer media utilized during installation.

 

Esports Entertainment warrants that Esports Entertainment
has neither retained nor has any access to “back-up” or “just in case” copies of the installed software.

 

No escrow or other holding
of a master copy of the purchased software exists. 

 

Affirmed this dated 4th November, 2019.

   

 

 

 

 

	(Esports Entertainment employee)	(Swiss Interactive
employee or

 authorized representative)

  

All parties: Please retain a copy of this document
for your files.

  

    16

     

    

 

EXHIBIT C

 

Third Party Software

 

THIRD PARTY SOFTWARE:

 

Wagering Platform: Go, Elixir, Rabbit, Sentry, Graylog,
Postgres, PI-1P 7.3, Symfony, Doctrine, Redis

 

Front end libraries: alertify js, axios, camelize, classnames, debug, js-cookie, ramda, react, react-async-script,
react-datetime„ react-dom, react-forma, react-google-recaptcha, react-modal, react-redux, react-router, react-router-active-component,
react-router-redux, redux, redux-ac, redux-form, redux-logger, redux-promise, redux-thank, store, yup, babel-cli, babel-core, babel-eslint,
babel-loader, babel-plugin-ramda, babel-plugin-react-transform, babel-plugin-transform-react-constant-elements, babel-plugin-transform-react-remove-prop-types,
babel-plugin-transform-runtime, babel-preset-es2015, babel-preset-es2015-native-modules, babel-preset-react, babel-preset-stage-0,
babel-register, babel-runtime, better-npm-run, copy-webpack-plugin, css-loader, cssnano, eslint, eslint-config-standard, eslint-config-standard-react,
eslint-loader, eslint-plugin-babel, eslint-plugin-promise, eslint-plugin-react, eslintplugin-standard, estraverse-fb, extract-text-webpack-plugin,
file-loader, fs-extra, html-webpack-plugin, imports-loader, isparta-loader, json-loader, koa, koa-connect-history-api-fallback,
koa-convert, koa-proxy, koa-static, less, less-loader, nodemon, postcss-loader, react-addons-test-utils, react-transform-catch-errors,
react-transform-hmr, redbox-react, redux-devtools, redux-devtools-dock-monitor, redux-devtools-log-monitor, rimraf, shipit-cli,
deploy, style-loader, url-loader, webpack, webpack-dev-middleware, webpack-hot-middleware, yargs

  

    17

     

    

  

EXHIBIT D

 

Prior Grantees

 

PRIOR GRANTEES: None

 

18mtb-ex101_267.htm

Exhibit 10.1

M&T BANK CORPORATION

2009 EQUITY INCENTIVE COMPENSATION PLAN

 

***

 

PERFORMANCE SHARE UNIT AWARD AGREEMENT

 

GRANTEE: <Participant Name>

 

DATE OF GRANT: <Grant Date>

 

PERFORMANCE SHARE UNITS (“Target Award”): <Share Units Granted>

 

PERFORMANCE PERIOD: <Performance Period Start Date> through <Performance Period End Date>

 

M&T Bank Corporation (the “Company”) hereby grants to the Grantee this Performance Share Unit Award. This grant is made pursuant to the M&T Bank Corporation 2009 Equity Incentive Compensation Plan (the “Plan”) and is subject to the terms and conditions of the Plan and this Agreement. As used herein, the term “Agreement” shall mean, collectively, this cover page with the Performance Goals attached as Exhibit A, the related Terms and Conditions of Performance Share Unit Award delivered to the Grantee with this cover page (the “Terms and Conditions”), and, as applicable, the Policy for Alignment of Incentive Compensation with Risk (the “Forfeiture Policy”). As used herein, the term “vest” shall mean the satisfaction of the Performance Goals and other conditions described herein and in the Plan with respect to one or more Performance Share Units but shall not mean the actual settlement of the Award. Capitalized terms used in this Agreement without definition shall have the meanings assigned to them in the Plan. A copy of the Plan and the Forfeiture Policy can be viewed and downloaded from the Company’s Intranet under the Human Resources page.

 

Subject to the terms of the Plan, the Forfeiture Policy (as applicable), and this Agreement, including without limitation, the Grantee’s fulfillment of the employment requirements in Section 4 of the Terms and Conditions, the Performance Share Units awarded hereunder will vest by achieving the Performance Goals set forth on Exhibit A attached hereto, subject to the applicable provisions of the Plan and this Agreement.  Based on the achievement of the Performance Goals set forth on Exhibit A, the Grantee is eligible to vest in up to 150% of the Target Award, subject to fulfillment of the employment requirements in Section 4 of the Terms and Conditions.

 

To the extent the Performance Goals are achieved and the Grantee fulfills the employment requirements in Section 4 of the Terms and Conditions, a number of shares of Common Stock equal to the vested Performance Share Units will be distributed to the Grantee.  

 

To the extent the Performance Share Units do not vest, the unvested portion of the Grantee’s Performance Share Units is subject to forfeiture under Section 4 of the Terms and Conditions and, as applicable, the Forfeiture Policy. 

Exhibit 10.1

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be signed on its behalf effective as of the Date of Grant.

 

		
	
 
	
M&T BANK CORPORATION

	
 
	
 

 

By:  ________________                         

	
 
	
 

 

 

 

Exhibit A

ROTCE Performance Goals

 

1.Calculation of ROTCE.  

(a)Except as otherwise set forth in Sections 4(c), (d) and (e) of the Terms and Conditions, vesting of Performance Share Units will be based on the following performance results: (a) the average relative return on tangible common equity (“ROTCE”) for the Performance Period, which means the Company’s ROTCE relative to the median ROTCE of the Peer Group (defined below) and (b) the Company’s ROTCE for the Performance Period (“Absolute ROTCE”).  

(b)At the end of the Performance Period, the ROTCE for the Company, and for each Company in the Peer Group, shall be calculated as a three-year average as follows:

(i)by taking net operating income available to common equity and dividing by the average tangible common equity for each fiscal year in the Performance Period, and.

(ii)by calculating a three-year average for the Performance Period based on the annual amounts in Section 1(b)(i) above. 

(iii)Net operating income available to common equity shall be computed by taking net income available to common equity and adding back the after-tax effect of the amortization of core deposit and other intangible assets, adding back the after-tax effects of merger- related expenses, and subtracting the after-tax effects of merger-related gains.  Average tangible common equity shall be computed by taking average common equity for the applicable period and subtracting average goodwill and average core deposit and other intangible assets (net of any related average deferred tax amounts).  The Committee shall have discretion to make such adjustments as it deems necessary or appropriate to provide comparable ROTCE calculations among the Company and the companies in the Peer Group.

2.Relative ROTCE Vesting Percentage.  

(a)Subject to Section 3 below, the number of Performance Share Units that may vest for the Performance Period shall be determined by multiplying the Target Award by the Relative ROTCE Vesting Percentage, as determined under this Section 2. 

(b)The Relative ROTCE Vesting Percentage will be determined based on the Company’s ROTCE percentile ranking compared to the ROTCE of the companies in the Peer Group for the Performance Period, as follows:

[Insert Relative ROTC Vesting Percentage Schedule approved by the Committee]

 

- 3 -

 
 

 

(c)The companies in the Peer Group will be determined on the first day of the Performance Period for purposes of the ROTCE calculation and will be changed only in accordance with Section 2(d) below.  No company shall be added to the Peer Group during the Performance Period for purposes of the ROTCE calculation. 

(d)The term “Peer Group” means the companies listed on Schedule A and will be subject to change as follows:  

(i)In the event of a merger, acquisition or business combination transaction of a company in the Peer Group in which the company in the Peer Group is the surviving entity and remains publicly traded, the surviving entity shall remain a company in the Peer Group.  Any entity involved in the transaction that is not the surviving company shall no longer be a company in the Peer Group.

(ii)In the event of a merger, acquisition or business combination transaction of a company in the Peer Group, a “going private” transaction or other event involving a company in the Peer Group, or the liquidation of a company in the Peer Group, in each case where the company in the Peer Group is not the surviving entity or is no longer publicly traded, the company shall no longer be a company in the Peer Group.

(iii)Notwithstanding the foregoing, in the event of a bankruptcy of a company in the Peer Group where the company in the Peer Group is not publicly traded at the end of the Performance Period, such company shall remain a company in the Peer Group but shall be deemed to have an ROTCE of negative 100% (-100%).

3.Adjustment Based on Absolute ROTCE.  Notwithstanding Section 2 above, and except as provided in Sections 4(c), (d) and (e) of the Terms and Conditions,

 

[Insert adjustments to Relative ROTC Vesting Percentage Schedule approved by the Committee]

 

4.General Vesting Terms.  The Committee shall have sole discretion to calculate the achievement of the Performance Goals and to make such adjustments as the Committee deems necessary or appropriate, including any adjustments deemed necessary or appropriate to determine vesting upon a Change in Control consistent with Section 4(e) of the Terms and Conditions.  The Committee’s determinations shall be final and binding.  Any fractional Performance Share Unit resulting from the vesting of the Performance Share Units in accordance with this Exhibit A shall be rounded down to the nearest whole number.  Any portion of the Performance Share Units that does not vest as of the end of the Performance Period shall be forfeited as of the end of the Performance Period.

- 4 -

 
 

 

Schedule A

Peer Group

[Insert Peer Group Members]

- 5 -

 
 

 

M&T BANK CORPORATION

2009 EQUITY INCENTIVE COMPENSATION PLAN

TERMS AND CONDITIONS

OF

PERFORMANCE SHARE UNIT AWARD

 

1.Definitions. Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan or on the cover page.

 

2.Grant of Performance Share Unit Award. The Performance Share Unit Award granted hereby is granted in accordance with the cover page of this Agreement.  Vesting of the Performance Share Units will be based on achievement of the performance goals set forth on Exhibit A to the cover page of this Agreement and, except as otherwise provided herein, the Grantee’s continued employment from the Date of Grant to the Vesting Date (as defined in Section 4(a) below). 

 

3.Nature of Performance Stock Unit Award. Performance Share Units are not actual shares of Common Stock. The Grantee’s interest in Performance Share Units shall make the Grantee only a general, unsecured creditor of the Company until the Performance Share Units become vested and settled.

 

	
4.
	
Vesting on Certain Terminations of Employment; Change in Control.

 

(a)Employment Requirement; Forfeiture. Except as provided herein, the Grantee must remain continuously employed by the Company or one of its Affiliates from the Date of Grant and until the last day of the Performance Period (the “Vesting Date”) in order to be entitled to receive shares of Common Stock in settlement of the Performance Share Unit Award. Except as provided in Sections 4(b), (c) or (d) below, upon the Grantee’s termination of employment with the Company and its Affiliates that constitutes a “separation from service,” as defined under Section 409A of the Code (“Termination of Employment”) for any reason, including for Cause or as a result of the Grantee’s resignation, before the Grantee’s Performance Share Units have fully vested, the Grantee will forfeit that portion of the Performance Share Units that have not vested as of the date of the Grantee’s Termination of Employment.  Except as provided in Sections 4(c), (d) and (e) below, if the Performance Goals are not attained at the end of the Performance Period, as determined by the Committee in its sole discretion, the Performance Share Units will be immediately forfeited.

 

(b)Retirement.  If the Grantee incurs a Termination of Employment prior to the Vesting Date on account of Retirement, the Grantee will not forfeit the Performance Share Units upon Retirement, and the Performance Share Units will continue to vest based on the attainment of the Performance Goals, except as provided in Section 4(c) (death) and 4(e) (Change in Control) below, and subject to Section 4(f) below.  Notwithstanding Sections 4(c) and 4(d), if the Grantee incurs a Termination of Employment on account of Disability or 

- 6 -

 
 

 

Termination without Cause at a time when the Grantee has met the age and service requirements for Retirement, this Section 4(b) shall apply to the Performance Share Units, instead of Section 4(c) or 4(d). 

 

(c)Death; Disability.  The Performance Share Unit Award shall vest with respect to 100% of the Target Award upon (i) the Grantee’s death during employment by the Company or an Affiliate or after Retirement as described in Section 4(b) prior to the Vesting Date, or (ii) the Grantee’s Termination of Employment on account of Disability prior to the Vesting Date, subject to Section 4(f) below.

 

(d)Termination without Cause.  If prior to the Vesting Date, the Grantee incurs a Termination of Employment by the Company or an Affiliate other than for Cause, the Performance Share Unit Award shall vest with respect to a pro-rated portion of the Target Award, subject to Section 4(f) below.  The pro-rated portion shall be determined by multiplying the Target Award by a fraction, the number of which is the number of months that elapsed during the period beginning on [Insert Performance Period Start Date] through the date of the Grantee’s Termination of Employment, and the denominator of which is [Insert Number of Months in Performance Period].  A partial month shall be counted as a full month for purposes of this calculation.  Any Performance Share Units that do not become vested upon a Termination of Employment in accordance with this Section 4(d) shall be forfeited.

 

(e)Change in Control.  Notwithstanding the foregoing, in the event that a Change in Control occurs before the Vesting Date while the Grantee is employed by the Company or one of its Affiliates or while the Performance Shares Units are outstanding pursuant to Section 4(b), the outstanding Performance Share Units will become vested upon the consummation of the Change in Control in an amount equal to the greater of (i) the Target Award or (ii) the number of Performance Share Units that vest based on achievement of the Performance Goals, measured as if the end of the quarter immediately preceding the date of the Change in Control were the end of the Performance Period, as determined by the Committee as in effect before the Change in Control in its sole discretion.  Any Performance Share Units that do not become vested upon a Change in Control in accordance with this Section 4(e) shall be forfeited. 

 

(f)Release of Claims.   Any vesting under this Section 4 as a result of Retirement or other Termination of Employment shall be conditioned on the Grantee signing and not revoking a general release of claims provided by the Company.

 

5.Settlement. 

 

(a)Subject to the satisfaction of all tax obligations as provided in Section 9 below and except as otherwise provided in this Section 5, the vested Performance Share Units shall be settled within 90 days following the Vesting Date (the “Settlement Date”).  Upon settlement, the Company shall deliver to the Grantee one share of Common Stock for each vested Performance Share Unit.

 

- 7 -

 
 

 

(b)The vested Performance Share Units shall be settled earlier than the Settlement Date in the following circumstances:

 

(i)If the Performance Share Units vest upon death in accordance with Section 4(c), the vested Performance Share Units will be settled within 30 days following the date of the Grantee’s death.

 

(ii) If the Performance Share Units vest upon Termination of Employment on account of Disability in accordance with Section 4(c) or upon Termination of Employment by the Company or an Affiliate other than for Cause in accordance with Section 4(d), the vested Performance Share Units will be settled within 30 days following the date of the Grantee’s Termination of Employment.   

 

(iii)If the Performance Share Units vest in accordance with Section 4(e), the vested Performance Share Units shall be settled upon or within 60 days following the date of the Change in Control, provided that the Change in Control constitutes a “change in control event” within the meaning of Section 409A of the Code (a “409A CIC”).   If the Change in Control does not constitute a 409A CIC, the vested Performance Share Units shall be settled upon the first to occur of (A) the Settlement Date, (B) within 30 days following the Grantee’s death, or (C) within 30 days following Termination of Employment.  

 

6.Dividend Equivalents. In connection with the Performance Share Unit Award, any cash dividends paid on the shares of Common Stock underlying the Performance Share Units shall be converted to additional Performance Share Units on the dividend payment date, based on the Fair Market Value of a share of Common Stock on such date (“Dividend Equivalents”).  Dividend Equivalents shall accrue with respect to Performance Share Units and shall be payable subject to the same Performance Goals, vesting terms and other conditions as the Performance Share Units to which they relate.  Dividend Equivalents shall be credited on the Performance Share Units when dividends are paid on shares of Common Stock from the Date of Grant until the settlement date for the vested Performance Share Units.  If and to the extent that the underlying Performance Share Units are forfeited, all related Dividend Equivalents shall also be forfeited.  Notwithstanding the foregoing, dividends and distributions other than regular cash dividends, if any, may result in an adjustment pursuant to Section 8, rather than under this Section 6.

 

7.Rights as a Stockholder. The Grantee acknowledges and agrees that, with respect to the Performance Share Units, he or she has no voting rights with respect to the Company unless and until such Performance Share Units are settled in Common Stock pursuant to Section 5 above. Upon and following the settlement of a Performance Share Unit, the Grantee shall be the record owner of the Common Stock issued to him or her unless and until such shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a stockholder of the Company holding such Common Stock, including, without limitation, voting rights, if any, with respect to such Common Stock. Prior to the Settlement Date, the Grantee shall not be deemed for any purpose to be the owner of any Common Stock denominated by the Performance Share Unit Award.

 

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8.Capital Adjustments. The number of Performance Share Units is subject to adjustment, in accordance with Section 4.2 of the Plan, on an equitable and proportionate basis in the manner deemed appropriate by the Committee.

 

9.Taxes. The Grantee expressly acknowledges that: (a) the Grantee’s Performance Share Units will constitute wages under the Federal Insurance Contributions Act (FICA) and Federal Unemployment Tax Act (FUTA) that are subject to tax withholding by the Company or its Affiliate upon becoming vested and (b) the Common Stock delivered to a Grantee upon the settlement of his or her Performance Share Units will constitute wages for purposes of federal and all other employment taxes, subject to tax withholding by the Company or its Affiliate. The Company’s obligation to issue or deliver shares of Common Stock with respect to the settlement of Performance Share Units shall be subject to the satisfaction of any applicable federal, state, local or foreign tax withholding requirements (including the Grantee’s FICA and FUTA obligation). To the extent permitted by law, the Company and its Affiliates shall have the right to deduct any such taxes from any payment otherwise due to the Grantee (or his or her beneficiary). The Committee may establish such procedures as it deems appropriate, including making irrevocable elections, for the settlement of withholding obligations with Common Stock having a Fair Market Value on the date of withholding equal to the minimum amount (and not any greater amount) required to be withheld for tax purposes.  

 

10.Restriction on Issuance of Common Stock. Notwithstanding any other provision of this Agreement, the Grantee agrees, for himself or herself and his or her successors, that Common Stock will not be issued at any time that the Company does not have in effect a registration statement under the Securities Act of 1933, as amended, relating to the offer of Common Stock to the Grantee under the Plan, unless the Company agrees to permit such issuance. The   Grantee further agrees, for himself or herself and his or her successors, that, upon the issuance of any Common Stock, he or she will, upon the request of the Company, agree in writing that he or she is acquiring such shares for investment only and not with a view to resale, and that he    or she will not sell, pledge or otherwise dispose of such shares so issued unless and until (a) the Company is furnished with an opinion of counsel to the effect that registration of such shares pursuant to the Securities Act of 1933, as amended, is not required by that Act and the rules and regulations thereunder; (b) the staff of the Securities and Exchange Commission has issued a “no-action” letter with respect to such disposition; or (c) such registration or notification as is, in the opinion of counsel for the Company, required for the lawful disposition of such shares has been filed by the Company and has become effective; provided, however, that the Company is not obligated hereby to file any such registration or notification. The Grantee further agrees that the Company may place a legend embodying such restriction on the certificates evidencing such shares.

 

11.Non-Solicitation.  In consideration for the Grantee’s employment with the Company or with any of its affiliates and/or subsidiaries, the award of these Performance Share Units to the Grantee, and other good and valuable consideration (the sufficiency of which is acknowledged), the Grantee agrees that for a period of six months immediately following termination of the Grantee’s employment for any reason, the Grantee will not directly or indirectly (a) solicit an employee to leave the employee of the Company or any of its affiliates and/or subsidiaries; or (b) directly or indirectly solicit business from any clients, customers or prospective customers 

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of the Company or any of its affiliates and/or subsidiaries whose identity became known to the Grantee during his or her employment with the Company or any of its affiliates and/or subsidiaries.  This six-month limitation is not intended to impair the rights of the Company and/or any of its affiliates or subsidiaries to prevent misappropriation of its confidential information beyond the six-month period.  The Committee shall have discretion to determine that all Performance Share Units, whether or not vested, shall be forfeited in the event of the Grantee’s breach of this Section 11. 

 

12.Employment. Neither the Performance Share Unit Award evidenced by this Agreement nor any term or provision of this Agreement shall constitute or be evidence of any understanding, express or implied, on the part of the Company or any of its Affiliates to employ the Grantee for any period. Whenever reference is made in this Agreement to the employment of the Grantee, it means employment by the Company or an Affiliate.

 

13.Beneficiary. The Committee may permit the Grantee to file with the Company a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. In the absence of any such designation or if all designated beneficiaries predecease the Grantee, the Grantee’s estate shall be deemed to be the Grantee’s beneficiary.

 

14.Subject to the Plan. The Performance Share Unit Award evidenced by this Agreement is subject to the terms and conditions of the Plan, which are incorporated herein by reference and made a part hereof, but the terms of the Plan shall not be considered an enlargement of any benefits under this Agreement. In addition, the Performance Share Unit Award is subject to any rules and regulations promulgated by the Committee.  The Grantee’s receipt of the Performance Share Unit Award constitutes the Grantee’s acknowledgment that all decisions and determinations of the Committee with respect to the Plan and this Agreement shall be final and binding on the Grantee and any other person claiming an interest in the Performance Share Unit Award. 

 

15.Section 409A. The Performance Share Unit Award is intended to comply with the applicable requirements of Section 409A of the Code and shall be administered in accordance with Section 409A of the Code.  Notwithstanding anything in this Agreement to the contrary, if the Performance Share Units or the Dividend Equivalents constitute “deferred compensation” under Section 409A of the Code and the Performance Share Units become vested and settled upon the Grantee’s Termination of Employment, payment with respect to the Performance Share Units shall be delayed for a period of six months after the Grantee’s Termination of Employment if the Grantee is a “specified employee” as defined under Section 409A of the Code (as determined by the Committee) and if required pursuant to Section 409A of the Code.  If payment is delayed, the shares of Common Stock and Dividend Equivalents shall be distributed within 30 days following the date that is the six-month anniversary of the Grantee’s Termination of Employment (or death, if earlier).  Notwithstanding any provision to the contrary herein, payments made with respect to this Performance Share Unit Award may only be made in a manner and upon an event permitted by Section 409A of the Code.  To the extent that any provision of this Agreement would cause a conflict with the requirements of Section 409A of the Code, or would cause the administration of this Performance Share Unit 

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Award to fail to satisfy the requirements of Section 409A of the Code, such provision shall be deemed null and void to the extent permitted by applicable law.  In no event shall a Grantee, directly or indirectly, designate the calendar year of payment.   Any payment that is to be made within a specified time period under this Agreement may be made at such other date as may be permitted by Section 409A with respect to such payment. 

 

16.Company Policies.  All amounts payable under this Agreement shall be subject to any applicable clawback or recoupment policies, share trading policies and other policies that may be implemented by the Company’s Board of Directors from time to time, including the Forfeiture Policy.   

 

17.Stock Certificates. The Grantee hereby (a) acknowledges that the Common Stock issued with respect to a vested Performance Share Unit upon its settlement may be held in book entry form on the books of Registrar and Transfer Company (or another institution specified by the Company), and (b) agrees to sign such other powers and take such other actions as the Company may reasonably request to accomplish the transfer.

 

18.Nontransferability. Performance Share Units may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated by the Grantee other than by will or by the laws of descent and distribution.  This Agreement shall bind and inure to the benefit of successors and assignees of the Company. 

 

19.Governing Law. The validity, construction, interpretation and enforceability of this Agreement shall be determined and governed by the laws of the State of New York without giving effect to the principles of conflicts of laws.

 

20.Headings. The headings of the sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

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