Document:

Exhibit 10.10

 

 

 

SHARE EXCHANGE AGREEMENT

 

by and among

 

DRAFTKINGS INC.

 

and

 

DEAC NV Merger Corp.

 

and

 

JASON ROBINS

 

Dated as of April 23, 2020

 

 

 

     

     

    

 

THIS SHARE EXCHANGE AGREEMENT (this “Agreement”),
dated as of April 23, 2020, is entered into by and among DraftKings Inc., a Delaware corporation (“DraftKings”),
Jason Robins (the “CEO”) and DEAC NV Merger Corp., a Nevada corporation (“Newco”). Capitalized
terms used but not defined herein shall have the meanings ascribed to them in the BCA (as defined below). Following the NV Merger,
Newco as the surviving entity will change its name to DraftKings Inc.

 

RECITALS

 

WHEREAS, DraftKings, SBTech (Global) Limited,
a company limited by shares, incorporated in Gibraltar and continued as a company under the Isle of Man Companies Act 2006, with
registration number 014119V (“SBT”), the SBT shareholders, Shalom Meckenzie, in his capacity as the SBT Sellers’
Representative, Diamond Eagle Acquisition Corp., a Delaware corporation (“DEAC”), Newco, a wholly-owned Subsidiary
of DEAC, and DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of DEAC (“Merger Sub”)
entered into a Business Combination Agreement, dated as of December 22, 2019, as amended by Amendment No. 1 thereto, dated as of
April 7, 2020 (the “BCA”), pursuant to which (i) DEAC will change its jurisdiction of incorporation to Nevada
by merging with and into Newco, with Newco surviving the merger and changing its name to DraftKings Inc., (ii) following the reincorporation,
Merger Sub will merge with and into DraftKings, with DraftKings surviving the merger (the “DK Merger”) and (iii)
immediately following the DK Merger, Newco will acquire all of the issued and outstanding share capital of SBT, such that upon
consummation of the foregoing transactions (the “Transactions”), DraftKings and SBT will be wholly-owned subsidiaries
of Newco.

 

WHEREAS, pursuant to the BCA, DraftKings is
required to (i) effect the DK Preferred Stock Conversion as of immediately prior to the DK Merger Effective Time and (ii) immediately
following the DK Preferred Stock Conversion and immediately prior to the DK Merger Effective Time, amend and restate the DK Charter
to implement the Dual Class Structure as set forth in Article IV of the Amended and Restated New DK Charter (such amended and restated
DK Charter, the “A&R DK Charter”), and in connection therewith, all shares of common stock of DraftKings,
par value $0.001 per share (“DK Common Stock”), will convert into the right to receive (i) in the case of all
stockholders of DraftKings (including the CEO), the same number of shares of Class A common stock, par value $0.001 per share,
of DraftKings (“DK Class A Common Stock”), and (ii) in the case of the CEO, pursuant to the Share Exchange (as
defined below) such additional number of shares of Class B common stock, par value $0.001 per share, of DraftKings (“DK
Class B Common Stock”) such that as of immediately following the completion of the Transactions, the CEO shall have ninety
percent (90%) of the voting power of the capital stock of Newco on a fully-diluted basis at such time.

 

WHEREAS, in accordance with the BCA, immediately
following the adoption of the A&R DK Charter and immediately prior to the DK Merger Effective Time, DraftKings shall issue
to the CEO (i) 1,659,078 shares of DK Class A Common Stock (the “CEO Class A Shares”, which, for the avoidance
of doubt, do not include any shares of DK Class A Common Stock to which the CEO may be entitled to as a result of the vesting of
any DraftKings options, restricted stock units or warrants) and (ii) 393,013,951 shares of DK Class B Common Stock (the “CEO
Class B Shares”, and together with the CEO Class A Shares, the “Shares”), in exchange for 1,659,078
shares of DK Common Stock held by the CEO (the “Old DK Shares”), on the terms and subject to the conditions
set forth herein (the “Share Exchange”).

 

     

     

    

 

WHEREAS, in accordance with the BCA, pursuant
to the DK Merger, the CEO Class A Shares will be converted into the right to receive shares of New DK Class A Common Stock, and
the CEO Class B Shares will be converted into the right to receive shares of New DK Class B Common Stock (and together with the
exchange of such Shares in accordance with the DK Merger, the “Merger Share Exchange”).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual
covenants and agreements contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows:

 

ARTICLE I

the share exchange

 

Section 1.1           
Share Exchange. Upon the terms and subject to the conditions of this Agreement, at the Share Exchange Closing
(as defined below), DraftKings agrees to issue the Shares to the CEO, and in exchange therefor, the CEO shall deliver to DraftKings
the certificates representing the Old DK Shares.

 

Section 1.2           
Share Exchange Closing.

 

(a)       DraftKings
will deliver to the CEO evidence of the issuance of the Shares registered in the name of the CEO, and the CEO will deliver to DraftKings
the certificates representing the Old DK Shares. Subject to the satisfaction of the conditions set forth in Article V, such
deliveries shall occur on the Closing Date (the “Share Exchange Closing”). For the avoidance of doubt, the Share
Exchange Closing shall occur immediately following the adoption of the A&R DK Charter and immediately prior to the DK Merger
Effective Time on the Closing Date.

 

(b)       The
documents to be delivered at the Share Exchange Closing by or on behalf of the parties hereto pursuant to this Article I
shall be delivered by electronic transfer of documents (including any stock certificates) and signature pages to avoid the necessity
of a physical Share Exchange Closing.

 

Section 1.3           
Share Exchange and Merger Share Exchange Tax Reporting. Newco and DraftKings each agree to treat and report for
applicable income tax purposes (i) the Share Exchange with respect to the CEO Class A Shares as a tax-free “reorganization”
within the meaning of Section 368(a)(1)(E) of the Code (and corresponding provisions of applicable state and local law), and
(ii) the Merger Share Exchange as a tax-free “reorganization” within the meaning of Section 368(a)(1)(A) of the
Code (and corresponding provisions of applicable state and local law). Neither Newco nor DraftKings shall report any income to
or with respect to the CEO in respect of the Share Exchange or the issuance of the CEO Class B Shares or the New DK Class B Common
Stock for tax purposes. None of Newco, DraftKings or the CEO shall take any position inconsistent with the foregoing two sentences,
including on any financial statement, tax return or in any administrative or judicial action or proceeding, unless otherwise required
pursuant to a determination as defined in Section 1313 of the Code. The parties hereto adopt this Agreement as a “plan of
reorganization” within the meaning of Sections 1.368-2(g) and 1.368-3(a) of the United States Treasury Regulations. The CEO
shall not make an election pursuant to Section 83(b) of the Code with respect to the CEO Class B Shares or the New DK Class B Common
Stock.

 

    	 	2	 

     

    

 

Section 1.4           
 Indemnification for Taxes. Newco and DraftKings shall jointly and severally indemnify and hold harmless the
CEO, on an after-tax basis and determined on a with or without basis, from and against any federal, state and local taxes resulting
from the Share Exchange itself with respect to, or as a result of, the receipt of the CEO Class B Shares or any income recognized
by the CEO with respect to the CEO Class B Shares received by the CEO in connection with the Share Exchange or the New DK Class
B Common Stock received by the CEO in exchange for the CEO Class B Shares (including interest and penalties, and costs and expenses
incurred in connection with any audit, examination, inquiry or other action or proceeding with respect to the foregoing (including
the documented fees and disbursements of the CEO’s counsel related thereto)). Without limiting the foregoing, such taxes
shall include income, net investment, withholding, payroll, employment, social security, and unemployment taxes. Any indemnity
payable by Newco and DraftKings pursuant to this Section 1.4 shall not take into account as a reduction of the indemnity payment
any tax basis or other tax attribute created by the income that produced the tax, and shall be paid within 5 days of the CEO's
written request, and such request may be made as the CEO incurs the indemnification costs and expenses or as the CEO becomes liable
for the tax (or interest and penalties). This Section 1.4 will provide the exclusive remedy against Newco and DraftKings for any
breach of any representation, warranty, covenant or other claims arising out of or relating to Section 1.3 and Section 1.4 of this
Agreement.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF DRAFTKINGS

 

DraftKings represents and warrants to the
CEO and Newco as of the date hereof that:

 

Section 2.1           
Existence and Power. DraftKings is a corporation duly incorporated, validly existing and in good standing under
the laws of the State of Delaware. DraftKings has the requisite corporate power and authority to own or lease all of its properties
and assets and to carry on its business as it is now being conducted, and is duly licensed or qualified to do business in each
jurisdiction in which the nature of the business conducted by it or the character or location of the properties and assets owned
or leased by it makes such licensing or qualification necessary.

 

    	 	3	 

     

    

 

Section 2.2           
Authorization. The execution, delivery and performance of this Agreement has been duly authorized by all necessary
action on the part of DraftKings, and this Agreement is a valid and binding obligation of DraftKings, enforceable against it in
accordance with its terms.

 

Section 2.3           
.Approvals. The transactions contemplated by this Agreement, including without limitation the issuance of the
Shares and the compliance with the terms of this Agreement, have been duly and validly authorized by all necessary corporate consent
and authorizations on the part of DraftKings, and no other corporate actions on the part of DraftKings are necessary to authorize
the execution and delivery by DraftKings of this Agreement.

 

Section 2.4           
Valid Issuance. Upon their issuance, the Shares will have been duly authorized by all necessary corporate action
and will be validly issued, fully paid and non-assessable, will not subject the holders thereof to personal liability and will
not be subject to any preemptive or similar rights. The voting rights provided for in the terms of the Shares are validly authorized
and shall not be subject to restriction or limitation in any respect.

 

Section 2.5           
Non-Contravention. The execution, delivery and performance of this Agreement, and the consummation by DraftKings
of the transactions contemplated hereby, will not (i) violate or result in a breach of any provision of law to which DraftKings
is subject; (ii) conflict with, violate or result in a breach of any provision of, or constitute a default (or an event which,
with notice or lapse of time or both would constitute a default) under, any provision of the A&R DK Charter or the bylaws of
DraftKings; or (iii) violate or result in a violation of, conflict with or constitute or result in a default (whether after the
giving of notice, lapse of time or both) under, accelerate any obligation under, or give rise to a right of termination of, the
BCA.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE CEO

 

The CEO represents and warrants to DraftKings
and Newco as of the date hereof that:

 

Section 3.1           
Authorization. The CEO has all requisite power and authority to enter into, deliver and perform its obligations
under this Agreement. The execution, delivery and performance of this Agreement has been duly authorized by all necessary action
on the part of the CEO, and this Agreement is a valid and binding obligation of the CEO, enforceable against the CEO in accordance
with its terms.

 

Section 3.2           
Non-Contravention.Section 3.3

 

Section 3.4 Section 3.5The execution,
delivery and performance of this Agreement, and the consummation by the CEO of the transactions contemplated hereby, will not (i)
violate or result in a breach of any provision of law to which the CEO is subject; (ii) violate or result in a violation of, conflict
with or constitute or result in a default (whether after the giving of notice, lapse of time or both) under, accelerate any obligation
under, or give rise to a right of termination of, any contract, permit, license, authorization, agreement or any other instrument
to which the CEO is a party or by which the CEO is bound; or (iii) result in the creation or imposition of any liens on any of
the Old DK Shares.

 

Section 3.3           
Title to InterestsSection 3.4. The CEO is the sole beneficial owner of the Old DK Shares and has good title
to the Old DK Shares, free and clear of any liens, other than restrictions under applicable securities laws or as set forth under
the A&R DK Charter. The CEO is not a party to any option, warrant, purchase right or other contract or commitment that could
require the CEO to sell, transfer, or otherwise dispose of any Old DK Shares (other than this Agreement and the BCA).

 

Section 3.4           
.Acquisition for Own Account. The CEO is acquiring the Shares for his own account and not with a view to the
distribution thereof in violation of the Securities Act of 1933, as amended, and the rules and regulations of the Securities and
Exchange Commission promulgated thereunder (the “Securities Act”).

 

Section 3.5           
No Registration.(a) The CEO understands that (i) the Shares have not been registered under the Securities Act
or any state securities laws, and are being issued in a transaction exempt from the registration requirements thereof and (ii)
the Shares may not be sold unless such disposition is registered under the Securities Act and applicable state securities laws
or is exempt from registration thereunder.

 

    	 	4	 

     

    

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF NewCo

 

Newco represents and warrants to DraftKings
and the CEO as of the date hereof that:

 

Section 4.1           
Existence and Power. Newco is a corporation duly incorporated, validly existing and in good standing under the
laws of the State of Nevada. Newco has the requisite corporate power and authority to own or lease all of its properties and assets
and to carry on its business as it is now being conducted, and is duly licensed or qualified to do business in each jurisdiction
in which the nature of the business conducted by it or the character or location of the properties and assets owned or leased by
it makes such licensing or qualification necessary.

 

Section 4.2           
Authorization. The execution, delivery and performance of this Agreement has been duly authorized by all necessary
action on the part of Newco, and this Agreement is a valid and binding obligation of Newco, enforceable against it in accordance
with its terms.

 

    	 	5	 

     

    

 

Section 4.3.           
Approvals. The transactions contemplated by this Agreement, and the compliance with the terms of this Agreement,
have been duly and validly authorized by all necessary corporate consent and authorizations on the part of Newco, and no other
corporate actions on the part of Newco are necessary to authorize the execution and delivery by Newco of this Agreement.

 

Section 4.4           
Valid Issuance. Upon their issuance, the shares of New DK Class A Common Stock and New DK Class B Common Stock
issued to the CEO in respect of the Shares in the Merger Share Exchange will have been duly authorized by all necessary corporate
action and will be validly issued, fully paid and non-assessable, will not subject the holders thereof to personal liability and
will not be subject to any preemptive or similar rights. The voting rights provided for in the terms of such shares of New DK Class
A Common Stock and New DK Class B Common Stock shall be validly authorized and shall not be subject to restriction or limitation
in any respect.

 

Section 4.5           
Non-Contravention. The execution, delivery and performance of this Agreement, and the consummation by Newco of
the transactions contemplated hereby, will not (i) violate or result in a breach of any provision of law to which Newco is subject;
(ii) conflict with, violate or result in a breach of any provision of, or constitute a default (or an event which, with notice
or lapse of time or both would constitute a default) under, any provision of the articles of incorporation or bylaws of Newco;
or (iii) violate or result in a violation of, conflict with or constitute or result in a default (whether after the giving of notice,
lapse of time or both) under, accelerate any obligation under, or give rise to a right of termination of, the BCA.

 

ARTICLE V

CONDITIONS TO SHARE EXCHANGE CLOSING

 

Section 5.1           
Conditions to Each Party’s Obligation To Effect the Share Exchange. The respective obligations of the parties
hereunder to effect the Share Exchange shall be subject to the following conditions:

 

(a)  
No Injunctions or Restraints; Illegality. No order, injunction or decree issued by any court or agency of competent
jurisdiction or other law preventing or making illegal the consummation of the Share Exchange shall be in effect.

 

(b)  
Satisfaction of BCA Closing Conditions. The conditions set forth in Article XI of the BCA shall have been
satisfied or irrevocably waived in accordance with the terms and conditions thereunder (other than those conditions that by their
nature are to be satisfied at the Closing, but subject to the satisfaction or waiver of those conditions), and the parties to the
BCA shall stand ready, willing and able to complete the Transactions.

 

    	 	6	 

     

    

 

ARTICLE VI

MISCELLANEOUS

 

Section 6.1           
Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall
be deemed given, delivered and/or provided (a) when delivered personally, (b) when sent by facsimile (which is confirmed by
a printed confirmation produced by the sending machine) or (c) when delivered when dispatched for overnight delivery by Federal
Express or a similar courier, in either case, to the parties at the following addresses (or at such other address for a party as
shall be specified by like notice):

 

 

(a)  
if to DraftKings, to:

 

DraftKings Inc.

222 Berkeley St

Boston, MA 02116

Attention: Stanton Dodge

 

with a copy to:

 

Sullivan & Cromwell LLP

125 Broad Street

New York, NY 10004

Attention: Scott D. Miller

Fax: (212) 291-9101

 

(b)  
if to the CEO, to:

 

Jason Robins

c/o DraftKings Inc.

222 Berkeley St

Boston, MA 02116

 

with a copy to:

 

Orrick, Herrington & Sutcliffe, LLP

1000 Marsh Road

Menlo Park, CA 94025

Attention: Bill Hughes; Christine McCarthy

 

    	 	7	 

     

    

 

(c)  
if to Newco, to:

 

DEAC NV Merger Corp.

2121 Avenue of the Stars, Suite 2300

Los Angeles, CA 90067

Attention: Eli Baker

 

with a copy to (which shall not constitute a notice):

Winston & Strawn LLP

333 South Grand Avenue, 38th Floor

Los Angeles, CA 90071

Attention: Joel L. Rubinstein

Fax: (212) 294-4700

 

Section 6.2           
Further Assurances. Each party hereto shall do and perform or cause to be done and performed all further acts
and shall execute and deliver all other agreements, certificates, instruments and documents as any other party hereto reasonably
may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

Section 6.3           
Amendments and Waivers. Any provision of this Agreement may be amended or waived if, but only if, such amendment
or waiver is in writing and is duly executed and delivered by DraftKings, Newco and the CEO. No failure or delay by any party in
exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies
herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

Section 6.4           
Fees and Expenses. Each party hereto shall pay all of its own fees and expenses (including attorneys’ fees)
incurred in connection with this Agreement and the transactions contemplated hereby.

 

Section 6.5           
Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns, provided that neither party may assign, delegate or otherwise
transfer any of its rights or obligations under this Agreement without the consent of the other party hereto, such consent not
to be unreasonably withheld or delayed.

 

Section 6.6           
Governing Law. This Agreement shall be governed by, and construed in accordance with, the Laws of the State of
Nevada, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. The parties
hereto agree that any suit, action or proceeding brought by either party to enforce any provision of, or based on any matter arising
out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the Clark County Business
Court, or if such court lacks jurisdiction, any other federal or state court located in the State of Nevada. Each of the parties
hereto submits to the jurisdiction of any such court in any suit, action or proceeding seeking to enforce any provision of, or
based on any matter arising out of, or in connection with, this Agreement or the transactions contemplated hereby and hereby irrevocably
waives the benefit of jurisdiction derived from present or future domicile or otherwise in such action or proceeding. Each party
hereto irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying
of venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum.

 

    	 	8	 

     

    

 

Section 6.7           
Waiver Of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT
IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A
LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED AND UNDERSTANDS THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS
WAIVER VOLUNTARILY AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION 6.7.

 

Section 6.8           
Entire Agreement. This Agreement and the BCA constitute the entire agreement between the parties with respect
to the subject matter of this Agreement (i.e., the Share Exchange), and this Agreement and the BCA supersede all prior agreements
and understandings, both oral and written, between the parties and/or their affiliates with respect to the subject matter of this
Agreement (i.e., the Share Exchange).

 

Section 6.9           
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law,
such provision shall be enforced to the maximum extent permissible and the balance of this Agreement shall be enforced in accordance
with its terms.

 

Section 6.10       
Counterparts; Third Party Beneficiaries. This Agreement may be signed in any number of counterparts, each of which
shall be an original, with the same effect as if the signatures were upon the same instrument. No provision of this Agreement shall
confer upon any person other than the parties hereto any rights or remedies hereunder.

 

Section 6.11       
Specific Performance. The parties agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms. It is accordingly agreed that the parties shall be
entitled to specific performance of the terms hereof, this being in addition to any other remedies to which they are entitled at
law or equity.

 

[Remainder of page intentionally
left blank]

 

    	 	9	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

 

	 	DRAFTKINGS INC., a Delaware corporation
	 	 
	 	By: 	/s/ R. Stanton Dodge
	 	 	Name: R. Stanton Dodge

Title: Chief Legal Officer
	 	 	 
	 	 	 
	 	JASON ROBINS
	 	 
	 	By: 	/s/ Jason Robins
	 	 	 
	 	 	 
	 	DEAC NV MERGER CORP., a Nevada corporation
	 	 
	 	By: 	/s/ Eli Baker
	 	 	Name: Eli Baker

Title: President and Secretary

 

 

 

[Share
Exchange Agreement Signature Page]Exhibit 10.20

 

SEVENTH
AMENDMENT AND JOINDER 

TO

AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT

 

This Seventh Amendment
and Joinder to Amended and Restated Loan and Security Agreement (this “Seventh Amendment and Joinder”), dated
as of April 23, 2020, is executed and delivered by DRAFTKINGS INC., a Nevada corporation (“New Borrower”),
DRAFTKINGS INC., a Delaware corporation, CROWN GAMING INC., a Delaware corporation, and CROWN DFS INC., a
Delaware corporation (individually, each a “Borrower” and collectively, “Borrowers”), and
PACIFIC WESTERN BANK, a California state-chartered bank (“Bank”). Capitalized terms used herein but not
otherwise defined herein shall have the meanings ascribed to those terms in the Loan Agreement (as defined below).

 

RECITALS

 

a.       Borrower
and Bank are parties to that certain Amended and Restated Loan and Security Agreement dated as of October 21, 2016 (as amended
from time to time, the “Original Loan Agreement”).

 

b.       From
and after the date hereof (the “Effective Date”), New Borrower, Borrowers, and Bank desire to amend and supplement
the terms and provisions of the Original Loan Agreement as provided herein, and the Original Loan Agreement, as amended and supplemented
by this Seventh Amendment and Joinder, and as may be hereafter further supplemented, amended, modified or restated from time to
time, shall be referred to collectively as the “Loan Agreement.”

 

c.       Bank
desires that New Borrower execute this Seventh Amendment and Joinder for the purpose of acknowledging that it is and shall be a
 “Borrower” under the Loan Agreement and the other Loan Documents.

 

d.       New
Borrower has read and approved the Loan Documents and has asked Bank to agree to allow New Borrower to become a party to the Loan
Documents in order to facilitate its ability to continue to operate its business by achieving a stronger financial base for itself
and its affiliated companies.

 

NOW, THEREFORE,
in consideration of the premises herein contained, and for other good and valuable consideration (the receipt, sufficiency and
adequacy of which are hereby acknowledged), the parties hereto (intending to be legally bound) hereby agree as follows:

 

1.       Incorporation.
The foregoing preamble and recitals are incorporated herein by this reference.

 

2.       Joinder
and Assumption. From and after the Effective Date, New Borrower hereby absolutely and unconditionally:

 

(a) (i) joins as and
becomes a party to the Loan Agreement as a “Borrower” thereunder, (ii) assumes, as a joint and several obligor thereunder,
all of the obligations, liabilities and indemnities of a “Borrower” under the Loan Agreement and all other Loan Documents,
and (iii) covenants and agrees to be bound by and adhere to all of the terms, covenants, waivers, releases, agreements and conditions
of or respecting a “Borrower” with respect to the Loan Agreement and the other Loan Documents and all of the representations
and warranties contained in the Loan Agreement (in the manner set forth in Section 5 of this Seventh Amendment and Joinder) and
the other Loan Documents with respect to New Borrower; and

 

     

     

    

 

(b)       collaterally
assigns and transfers to Bank, and hereby grants to Bank, a continuing security interest in all of New Borrower’s now owned
and existing and hereafter acquired and arising assets constituting Collateral, as collateral security for the prompt and complete
payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of all of the Obligations. New
Borrower hereby authorizes Bank to file at any time Uniform Commercial Code financing statements in such jurisdictions and offices
as Bank deems necessary in connection with the perfection of a security interest in all of New Borrower’s now owned or hereafter
arising or acquired assets and property, including, without limitation, accounts receivable, deposit accounts, equipment, general
intangibles, inventory, and any and all other personal property of New Borrower, and all products, substitutions, replacements,
and proceeds of such property and assets. New Borrower has read the Loan Agreement and affirmatively grants to Bank all rights
to New Borrower’s Collateral as set forth in the Loan Agreement and the Loan Documents.

 

From and after the
Effective Date, any reference to the term “Borrower” in the Loan Agreement shall also include New Borrower. Except
as expressly provided herein, the Loan Agreement remains in full force and effect and is hereby ratified and confirmed in all respects.

 

3.      Amendments
to Loan Agreement.

 

(a)       Borrowers
hereby agree that an Event of Default will immediately result if Borrowers do not execute, on or before May 1, 2020, an amendment
to the Loan Agreement that establishes monthly minimum cumulative Revenue covenant levels for the 2020 calendar year.

 

(b)       The
following defined term in Exhibit A to the Loan Agreement is hereby amended and restated, as follows:

 

“Parent”
means DraftKings Inc., a Delaware corporation.

 

(c)       Exhibit
B to the Loan Agreement is hereby replaced with Exhibit B in the form attached hereto as Appendix I.

 

4.       Consent
to Acquisition. Borrower has informed Bank that Parent has entered into that certain Business Combination Agreement, dated
as of December 22, 2019, by and among Diamond Eagle Acquisition Corp., a Delaware corporation (“DEAC”), Parent,
SBTech (Global) Limited, a company limited by shares, originally incorporated in Gibraltar and continued as a company under the
Isle of Man Companies Act 2006, with registration number 014119V (“SBT”), DEAC NV Merger Corp., a Nevada corporation
and a wholly-owned subsidiary of DEAC (“New Borrower”), DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned
subsidiary of DEAC (“Merger Sub”), the shareholders of SBT who are party thereto (the “SBT Sellers”),
and Shalom Meckenzie in his capacity as the SBT Sellers’ Representative (the “Business Combination Agreement”).
Pursuant to the Business Combination Agreement:

 

(a)       DEAC
will merge with and into New Borrower, with New Borrower surviving that merger, and New Borrower will change its name to DraftKings
Inc. (the “NV Merger”);

 

(b)       Merger
Sub will merge with and into Parent, with Parent surviving that merger as a wholly owned subsidiary of New Borrower (the “DK
Merger”); and

 

(c)       concurrently
with the DK Merger, New Borrower will acquire all of the issued and outstanding share capital of SBT from the SBT Sellers (the
 “SBT Acquisition”);

 

    	DraftKings – Seventh Amendment and Joinder to Loan and Security Agreement – EXECUTION 

     

    

 

all as more particularly
described in the Business Combination Agreement (the NV Merger, the DK Merger, and the SBT Acquisition, collectively, the “Business
Combination Transactions”). In consideration for the DK Merger and the SBT Acquisition, Parent’s stockholders will
receive shares of common stock of New Borrower, and the SBT Sellers will receive a combination of cash and shares of common stock
of New Borrower, as described more fully in the Business Combination Agreement. In addition, immediately prior to the closing of
the Business Combination Transactions, DEAC will sell equity securities to certain institutional investors and receive proceeds
of approximately $304.7 million from those sales (the “Private Placement”).

 

Bank hereby consents
to the Business Combination Transactions.

 

5.       Representations
and Warranties. Each Borrower and New Borrower hereby represents and warrants to Bank, which representations and warranties
shall survive the execution and delivery hereof, that: (a) this Seventh Amendment and Joinder is the legally valid and binding
obligation of each Borrower and New Borrower, enforceable against each Borrower and New Borrower in accordance with its terms,
and (b) each of the representations and warranties contained in the Original Loan Agreement is true and correct in all respects
as of the date of this Seventh Amendment and Joinder.

 

6.       Successors
and Assigns. This Seventh Amendment and Joinder shall be binding upon New Borrower, Borrowers, Bank, and Bank’s successors
and assigns, and shall inure to the benefit of New Borrower, Borrowers, Bank, and Bank’s successors and assigns. No other
person or entity shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim in
connection with, this Seventh Amendment and Joinder. New Borrower may not assign or transfer any of its rights or obligations under
this Seventh Amendment and Joinder without the prior written consent of Bank.

 

7.       Severability;
Construction. Wherever possible, each provision of this Seventh Amendment and Joinder shall be interpreted in such a manner
so as to be effective and valid under applicable law, but if any provision of this Seventh Amendment and Joinder shall be prohibited
by or invalid under applicable law, such provision shall be ineffective to the extent of such provision or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this Seventh Amendment and Joinder. All obligations
of Borrowers and New Borrower and rights of Bank expressed herein shall be in addition to and not in limitation of those provided
by applicable law.

 

8.       Counterparts;
Facsimile and other Electronic Transmission. This Seventh Amendment and Joinder may be executed in any number of counterparts
and by the different parties hereto on separate counterparts, and each such counterpart shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same Seventh Amendment and Joinder. Receipt of an executed signature
page to this Seventh Amendment and Joinder by facsimile or other electronic transmission shall constitute for all purposes effective
delivery thereof. Electronic records of this executed Seventh Amendment and Joinder maintained by Bank shall be deemed to be originals.

 

9.       GOVERNING
LAW. THIS SEVENTH AMENDMENT AND JOINDER SHALL BE A CONTRACT MADE UNDER AND BE CONSTRUED, ENFORCED AND GOVERNED BY THE LAWS
OF THE STATE OF NORTH CAROLINA APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT
OF LAW PRINCIPLES.

 

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10.     WAIVER
OF JURY TRIAL. BANK, NEW BORROWER, AND BORROWERS EACH WAIVE ANY RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF THIS SEVENTH AMENDMENT AND JOINDER OR ANY TRANSACTION CONTEMPLATED HEREIN, INCLUDING CLAIMS BASED ON CONTRACT,
TORT, BREACH OF DUTY AND ALL OTHER COMMON LAW OR STATUTORY BASES. ALL DISPUTES, CONTROVERSIES, CLAIMS, ACTIONS AND SIMILAR PROCEEDINGS
ARISING WITH RESPECT TO THIS SEVENTH AMENDMENT AND JOINDER OR ANY RELATED AGREEMENT OR TRANSACTION SHALL BE BROUGHT IN THE GENERAL
COURT OF JUSTICE OF NORTH CAROLINA SITTING IN DURHAM COUNTY, NORTH CAROLINA OR THE UNITED STATES DISTRICT COURT FOR THE MIDDLE
DISTRICT OF NORTH CAROLINA, EXCEPT AS PROVIDED BELOW WITH RESPECT TO ARBITRATION OF SUCH MATTERS. IF THE JURY WAIVER SET FORTH
IN THIS SECTION IS NOT ENFORCEABLE, THEN ANY DISPUTE, CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS SEVENTH AMENDMENT
AND JOINDER OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN WILL BE FINALLY SETTLED BY BINDING ARBITRATION IN DURHAM COUNTY, NORTH
CAROLINA IN ACCORDANCE WITH THE THEN-CURRENT COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION BY ONE ARBITRATOR
APPOINTED IN ACCORDANCE WITH SAID RULES. THE ARBITRATOR SHALL APPLY NORTH CAROLINA LAW TO THE RESOLUTION OF ANY DISPUTE, WITHOUT
REFERENCE TO RULES OF CONFLICTS OF LAW OR RULES OF STATUTORY ARBITRATION. JUDGMENT ON THE AWARD RENDERED BY THE ARBITRATOR MAY
BE ENTERED IN ANY COURT HAVING JURISDICTION THEREOF. NOTWITHSTANDING THE FOREGOING, THE PARTIES MAY APPLY TO ANY COURT OF COMPETENT
JURISDICTION FOR PRELIMINARY OR INTERIM EQUITABLE RELIEF, OR TO COMPEL ARBITRATION IN ACCORDANCE WITH THIS PARAGRAPH. THE EXPENSES
OF THE ARBITRATION, INCLUDING THE ARBITRATOR’S FEES, REASONABLE ATTORNEYS’ FEES AND EXPERT WITNESS FEES, INCURRED BY
THE PARTIES TO THE ARBITRATION, MAY BE AWARDED TO THE PREVAILING PARTY, IN THE DISCRETION OF THE ARBITRATOR, OR MAY BE APPORTIONED
BETWEEN THE PARTIES IN ANY MANNER DEEMED APPROPRIATE BY THE ARBITRATOR. UNLESS AND UNTIL THE ARBITRATOR DECIDES THAT ONE PARTY
IS TO PAY FOR ALL (OR A SHARE) OF SUCH EXPENSES, THE PARTIES SHALL SHARE EQUALLY IN THE PAYMENT OF THE ARBITRATOR’S FEES
AS AND WHEN BILLED BY THE ARBITRATOR.

 

11.       Conditions
Precedent to Effectiveness of Seventh Amendment and Joinder. The agreement of Bank to enter into this Seventh Amendment and
Joinder on the date hereof is subject to the condition precedent that Bank shall have received, in form and substance satisfactory
to Bank, each of the following items and completed each of the following requirements:

 

(a)               
this Seventh Amendment and Joinder, duly executed by New Borrower and each Borrower;

 

(b)              
all conditions precedent to the consummation of the Business Combination Transactions, each as specified in the Business
Combination Agreement, and the Private Placement have been satisfied or will be satisfied simultaneously with the effectiveness
of this Seventh Amendment and Joinder, in each case as determined by Bank in Bank’s sole discretion;

 

(c)               
a fully executed copy of the Business Combination Agreement, along with all accompanying exhibits and schedules and
all related documents;

 

(d)              
an officer’s certificate of New Borrower with respect to incumbency and resolutions authorizing the execution
and delivery of this Seventh Amendment and Joinder;

 

(e)               
a financing statement (Form UCC-1) with respect to New Borrower;

 

    	DraftKings – Seventh Amendment and Joinder to Loan and Security Agreement – EXECUTION 

     

    

 

(f)                
payment of the fees and Bank Expenses incurred in connection with the documentation of this Seventh Amendment and Joinder
and any other related documentation, which may be debited from any of a Borrower’s or New Borrower’s accounts with
Bank;

 

(g)               
current SOS Reports indicating that, as to New Borrower, except for Permitted Liens, there are no security interests
or Liens of record in the Collateral;

 

(h)              
a Borrower Information Certificate from New Borrower; and

 

(i)                
such other documents or certificates, and completion of such other matters, as Bank may reasonably deem necessary or
appropriate.

 

12.       Payment
of Success Fee. Borrowers hereby agree that, upon consummation of the Business Combination Transactions, Borrowers will pay
to Bank a fee of $650,000 in full satisfaction of the success fee described in Section 2.5(c) of the Loan Agreement.

 

13.       Notices.
The address for notices to be sent to New Borrower is:

 

DraftKings Inc., on behalf of each Borrower

222 Berkeley Street, 5th Floor

Boston, MA 02116

Attn: Jason Park, Chief Financial Officer

  

14.       New
Borrower Deemed Execution. Bank, Borrowers, and New Borrower hereby agree that New Borrower shall be deemed to have executed
this Seventh Amendment and Joinder immediately after consummation of the Business Combination Transactions.

 

 

[Signature Page Follows]

 

    	DraftKings – Seventh Amendment and Joinder to Loan and Security Agreement – EXECUTION 

     

    

 

IN WITNESS WHEREOF,
the undersigned have caused this Seventh Amendment and Joinder to Amended and Restated Loan and Security Agreement to be duly executed
and delivered as of the date first above written.

 

	 	NEW BORROWER:	 
	 	 	 	 
	 	DRAFTKINGS INC., a Nevada corporation	 
	 	 	 	 
	 	By:	/s/ Jason Park	 
	 	Name:	Jason Park	 
	 	Title: 	CFO	 
	 	 	 	 
	 	 	 	 
	 	BANK:	 
	 	 	 	 
	 	PACIFIC WESTERN BANK	 
	 	 	 	 
	 	By:	/s/ Joel Marquis	 
	 	Name:	Joel Marquis	 
	 	Title:	SVP	 
	 	 	 	 
	 	 	 	 
	 	BORROWERS:	 
	 	 	 	 
	 	DRAFTKINGS INC., a Delaware corporation	 
	 	 	 	 
	 	By:	/s/ Jason Park	 
	 	Name:	Jason Park	 
	 	Title:	CFO	 
	 	 	 	 
	 	 	 	 
	 	CROWN GAMING INC.	 
	 	 	 	 
	 	By: 	/s/ Tim Dent	 
	 	Name:	Tim Dent	 
	 	Title:	Treasurer	 
	 	 	 	 
	 	CROWN DFS INC.	 
	 	 	 	 
	 	By:	/s/ Tim Dent	 
	 	Name:	Tim Dent	 
	 	Title:	Treasurer	 

 

 

[Signature Page to Seventh Amendment
and Joinder to Loan and Security Agreement]

 

     

     

    

 

APPENDIX I

 

EXHIBIT B

 

	DEBTORS:	DRAFTKINGS INC., a Nevada corporation
	 	DRAFTKINGS INC., a Delaware corporation
	 	CROWN GAMING INC., a Delaware corporation
	 	CROWN DFS INC., a Delaware corporation
	 	 
	SECURED PARTY:	PACIFIC WESTERN BANK

 

COLLATERAL DESCRIPTION ATTACHMENT TO
LOAN AND SECURITY AGREEMENT 

 

All personal property of each Borrower
(each herein referred to as “Borrower” or “Debtor”) whether presently existing or hereafter created or
acquired, and wherever located, including, but not limited to:

 

(a)               
all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel
paper), deposit accounts, documents (including negotiable documents), equipment (including all accessions and additions thereto),
financial assets, general intangibles (including patents, trademarks, copyrights, goodwill, payment intangibles, domain names,
and software), goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for sale
or lease or to be furnished under a contract of service, and including returns and repossessions), investment property (including
securities and securities entitlements), letter of credit rights, money, and all of each Debtor’s books and records with
respect to any of the foregoing, and the computers and equipment containing said books and records;

 

(b)              
any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without limitation, insurance
proceeds, and all supporting obligations and the security therefor or for any right to payment.

 

All terms above have
the meanings given to them in the North Carolina Uniform Commercial Code, as amended or supplemented from time to time, including
revised Article 9 of the Uniform Commercial Code-Secured Transactions.

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