Document:

Exhibit 10.10

 

__, 2021

 

	 	Re:	Forward Purchase Contract

 

Ladies and Gentlemen:

 

We are pleased to accept the offer the undersigned subscribers
(each individually, the “Subscriber” or “you”) has made Isos Acquisition Corporation, a Cayman
Islands exempted company (the “Company”) to purchase the Company’s units (the “Units,”
comprising one Class A ordinary share of the Company, par value $0.0001 per share (“Class A Ordinary Share”
or “Share”), and one-third of one warrant (“Warrant”) in an aggregate amount equal to Twenty
Five Percent (25%) of the units (the “Maximum Units”) sold in the Company’s initial public offering, allocated
to the Subscribers on a ratable basis based upon the percentages set forth on Schedule 1 attached hereto . Each whole Warrant is
exercisable to purchase one Share at an exercise price of $11.50 per Share during the period commencing on the later of (i) twelve
(12) months from the date of the closing of the Company’s initial public offering of Units (the “IPO”)
and (ii) thirty (30) days following the consummation of the Company’s Business Combination (as defined below) and expiring
on the five year anniversary of the consummation of the Business Combination. The Units and the securities underlying the Units
are hereinafter collectively referred to as the “Securities.” In no event will Subscribers be obligated to purchase
more than 7,500,000 Units in the aggregate. The parties acknowledge that, at the closing of the Company’s Business Combination,
the Company may deliver to Subscriber the number of Class A Ordinary Shares and Warrants that would have been included in the Units
to be purchased by Subscriber pursuant hereto, in lieu of delivering such Units. The terms on which the Company is willing to sell
the Securities to the Subscriber, and the Company and the Subscriber’s agreements regarding such Securities, are set forth
in this agreement (this “Agreement”) and are as follows:

 

		1.	Purchase of the Securities.

 

		1.1.	Subject to the terms and conditions of this Agreement, the Company agrees to sell the Securities
to the Subscriber, and the Subscriber hereby agrees to purchase the Securities from the Company, in a private placement at an aggregate
purchase price of $10.00 per Unit multiplied by the number of Units being purchased hereunder (“Aggregate Purchase Price”).
The Maximum Units Subscriber is obligated to purchase pursuant to this Agreement shall be reduced to the extent of any Units purchased
by Subscriber in the IPO. Notwithstanding anything to the contrary herein, the relative amount of Units to be purchased by Subscriber
pursuant to this Agreement or in the IPO, in a combined amount not to exceed the Maximum Units, may be adjusted at the sole discretion
of the Company at any time prior to the consummation of the IPO.

 

		1.2.	Solely to the extent the number of Units to be purchased pursuant
to this Agreement following the IPO, together with the other shares of the Company held directly or indirectly by the Subscriber,
will result in the Subscriber beneficially owning over 9.9% of shares of the Company (or such other entity as may be the continuing
public company following the Business Combination), as determined pursuant to Rule 13d--3 under the Securities Exchange Act of
1934, as amended, Subscriber shall have the right to limit its incremental purchase obligation pursuant hereto to such number of
Units as would not result in its beneficial ownership exceeding 9.9%, as determined above. The Warrants included in the Units to
be purchased pursuant hereto shall, so long as such Warrants are held by the Subscriber, be identical to the private placement
warrants]to be purchased by Isos Acquisition Sponsor LLC (the “Sponsor”) in a private placement concurrent with
the IPO (that is, the Warrants will not be redeemable and will be exercisable on a cashless basis).

 

2. Representations,
Warranties and Agreements.

  

2.1 Subscriber’s
Representations, Warranties and Agreements. To induce the Company to issue the Securities to the Subscriber, the Subscriber
hereby represents and warrants to the Company and agrees with the Company as follows:

 

2.1.1 No
Government Recommendation or Approval. The Subscriber understands that no federal or state agency has passed upon or made any
recommendation or endorsement of the offering of the Securities.

 

     

     

    

  

2.1.2 No
Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Subscriber of the transactions
contemplated hereby do not violate, conflict with or constitute a default under (i) the formation and governing documents of the
Subscriber, (ii) any agreement, indenture or instrument to which the Subscriber is a party, (iii) any law, statute, rule or regulation
to which the Subscriber is subject, or (iv) any agreement, order, judgment or decree to which the Subscriber is subject.

 

2.1.3 Organization
and Authority. Subscriber possesses all requisite power and authority necessary to carry out the transactions contemplated
by this Agreement. Upon execution and delivery by Subscriber, this Agreement is a legal, valid and binding agreement of Subscriber,
enforceable against Subscriber in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally and subject to
general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

2.1.4 Experience,
Financial Capability and Suitability. Subscriber is: (i) sophisticated in financial matters and is able to evaluate the risks
and benefits of the investment in the Securities and protect its own interests and (ii) able to bear the economic risk of its investment
in the Securities for an indefinite period of time because the Securities have not been registered under the Securities Act of
1933, as amended (“Securities Act”) and therefore cannot be sold by Subscriber unless subsequently registered
under the Securities Act or an exemption from such registration is available. Subscriber is able to afford a complete loss of Subscriber’s
investment in the Securities.

 

2.1.5 Access
to Information; Independent Investigation. Prior to the execution of this Agreement, Subscriber has had the opportunity to
ask questions of and receive answers from representatives of the Company concerning an investment in the Company, as well as the
finances, operations, business and prospects of the Company, and the opportunity to obtain additional information to verify the
accuracy of all information so obtained. In determining whether to make this investment, Subscriber has relied solely on Subscriber’s
own knowledge and understanding of the Company and its business based upon Subscriber’s own due diligence investigation and
the information furnished pursuant to this paragraph. Subscriber understands that no person has been authorized to give any information
or to make any representations which were not furnished pursuant to this Agreement and Subscriber has not relied on any other representations
or information in making its investment decision, whether written or oral, relating to the Company, its operations and/or its prospects.

 

2.1.6 Regulation
D Offering. Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) of
Regulation D under the Securities Act and acknowledges the sale contemplated hereby is being made in reliance on a private placement
exemption to “accredited investors” within the meaning of Section 501(a) of Regulation D under the Securities Act or
similar exemptions under federal or state law.

 

2.1.7 Investment
Purposes. The Subscriber is purchasing the Securities solely for investment purposes and not with a view towards the further
distribution or dissemination thereof. The Subscriber did not decide to enter into this Agreement as a result of any general solicitation
or general advertising within the meaning of Rule 502 under the Securities Act.

  

2.1.8 Restrictions
on Transfer; Shell Company. Subscriber understands the Securities are being offered in a transaction not involving a public
offering within the meaning of the Securities Act. Subscriber understands the Securities will be “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act and Subscriber understands that any certificates representing the
Securities will contain a legend in respect of such restrictions. If in the future the Subscriber decides to offer, resell, pledge
or otherwise transfer the Securities, such securities may be offered, resold, pledged or otherwise transferred only pursuant to:
(i) registration under the Securities Act, or (ii) an available exemption from registration. Subscriber agrees that if any transfer
of its Securities or any interest therein is proposed to be made, as a condition precedent to any such transfer, Subscriber may
be required to deliver to the Company an opinion of counsel satisfactory to the Company. Absent registration or an exemption, the
Subscriber agrees not to resell the Securities. Subscriber further acknowledges that because the Company is a shell company, Rule
144 may not be available to the Subscriber for the resale of the Securities until one (1) year following consummation of the Business
Combination, despite technical compliance with the requirements of Rule 144 and the release or waiver of any contractual transfer
restrictions.

 

2.1.9 No
Governmental Consents. No governmental, administrative or other third party consents or approvals are required, necessary or
appropriate on the part of Subscriber in connection with the transactions contemplated by this Agreement.

 

    	 	2	 

     

    

 

2.2 Company’s Representations,
Warranties and Agreements. To induce the Subscriber to purchase the Securities, the Company hereby represents and warrants
to the Subscriber and agrees with the Subscriber as follows:

 

2.2.1 Organization
and Corporate Power. The Company is a Cayman Islands exempted company. The Company possesses all requisite corporate power
and authority necessary to carry out the transactions contemplated by this Agreement. Upon execution and delivery by the Company
of this Agreement, the Agreement will constitute a legal, valid and binding agreement of the Company, enforceable against the Company
in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance
or similar laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity (regardless
of whether enforcement is sought in a proceeding at law or in equity).

 

2.2.2 No
Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions
contemplated hereby do not violate, conflict with or constitute a default under (i) the Certificate of Incorporation or Bylaws
of the Company, (ii) any agreement, indenture or instrument to which the Company is a party or (iii) any law, statute, rule or
regulation to which the Company is subject, or (iv) any agreement, order, judgment or decree to which the Company is subject.

 

2.2.3 Title
to Securities. Upon issuance in accordance with, and payment pursuant to, the
terms hereof and the Company's Amended and Restated Memorandum and Articles of Association and upon registration in the Register
of Members of the Company (in respect of shares), the Securities will be duly and validly issued, fully paid and non-assessable.
Upon issuance in accordance with, and payment pursuant to, the terms hereof the Subscriber will have or receive good title to the
Securities, free and clear of all liens, claims and encumbrances of any kind, other than (a) transfer restrictions under federal
and state securities laws, and (b) liens, claims or encumbrances imposed due to the actions of the Subscriber.

 

2.2.4 No
Adverse Actions. There are no actions, suits, investigations or proceedings pending, threatened against or affecting the Company
which: (i) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated by this Agreement
or (ii) question the validity or legality of any transactions or seeks to recover damages or to obtain other relief in connection
with any transactions.

 

2.2.5 No
Governmental Consents. No governmental, administrative or other third party consents or approvals are required, necessary or
appropriate on the part of the Company in connection with the transactions contemplated by this Agreement, other than the filing
of a Form D with the Securities and Exchange Commission and such state Blue Sky, FINRA and NASDAQ consents and approvals as
may be required.

 

2.2.6 No
General Solicitation. No form of general solicitation or general advertising within the meaning of Regulation D of the U.S.
Securities Act (including, but not limited to, advertisements, articles, notices or other communications published in any newspaper,
magazine or similar medium or broadcast over television or radio, or any seminar or meeting whose attendees have been invited by
any general solicitation or general advertising) was used by the Company or any of its representatives in connection with the offer
and sale of the Securities.

 

2.2.8 No
Brokers. No broker, finder or similar intermediary has acted for or on behalf of the Company or any of its affiliates in connection
with this Agreement or the transactions contemplated hereby and no broker, finder, agent or similar intermediary is entitled to
any broker’s, finder’s or similar fee or other commission in connection therewith.

 

2.2.9 Arms-Length.
The purchase and sale of the Securities contemplated by this Agreement is an arms-length transaction between Subscriber and the
Company.

 

    	 	3	 

     

    

 

3. Settlement Date and Delivery.

 

3.1 Closing of Purchase of Securities.
The consummation and settlement of the forward purchase contract for the purchase and sale of the Securities hereunder (the “Closing”)
shall be held at the same date and immediately prior to the closing of the Business Combination (the date of the Closing being
referred to as the “Closing Date”). No later than two business days prior to the Closing, the Subscriber shall
deliver the Aggregate Purchase Price for the Units purchased hereunder in cash via wire transfer to an account specified in writing
by the Company. Upon the Closing, the Company will issue to the Subscriber the Units being purchased hereunder, each registered
in the name of the Subscriber, against delivery of the Aggregate Purchase Price.

 

3.2 Conditions
to Closing of the Company.

 

The Company’s obligations to sell
and issue the Securities at the Closing are subject to the fulfillment of the following conditions:

 

3.2.1 Representations
and Warranties Correct. The representations and warranties made by the Subscriber in Section 2 hereof shall be true and correct
in all material respects when made and shall be true and correct in all material respects on and as of the Closing Date and closing
of the Company’s IPO, as the case may be, (unless they specifically speak as of another date in which case they shall be
true and correct in all material respects as of such date) with the same force and effect as if they had been made on and as of
said date.

 

3.2.2 Covenants.
All covenants, agreements and conditions contained in this Agreement to be performed by the Subscriber on or prior to the Closing
Date shall have been performed or complied with in all material respects.

 

3.2.3 Blue
Sky. The Company shall have obtained all necessary Blue Sky law permits and qualifications, or secured an exemption therefrom,
required by any state for the offer and sale of the Securities.

 

3.2.4 Ancillary
Agreements. All Ancillary Agreements (defined below) to be signed by Subscriber pursuant to hereto shall have been executed
by Subscriber.

 

3.3 Conditions to Closing of the
Subscriber.

 

The Subscriber’s obligation to purchase
the Securities at the Closing is subject to the fulfillment on or prior to the Closing Date of each of the following conditions:

 

3.3.1 Representations
and Warranties Correct. The representations and warranties made by the Company in Section 2 hereof shall be true and correct
in all material respects when made and shall be true and correct in all material respects on and as of the Closing Date and closing
of the IPO, as the case may be (unless they specifically speak as of another date in which case they shall be true and correct
in all material respects as of such date), with the same force and effect as if they had been made on and as of said date.

 

3.3.2 Covenants.
All covenants, agreements and conditions contained in this Agreement to be performed by the Company on or prior to the Closing
Date shall have been performed or complied with in all material respects.

 

3.3.3 Blue
Sky. The Company shall have obtained all necessary Blue Sky law permits and qualifications, or secured an exemption therefrom,
required by any state for the offer and sale of the Securities.

  

    	 	4	 

     

    

 

3.3.4 Registration
Rights Agreement. The Company and Subscriber shall have entered into a registration rights agreement (the “Registration
Rights Agreement”), as referenced in Section 4.2 and 5.2, in a form customary for transactions of the type contemplated
hereby, with the other holders of the Company’s securities prior to the IPO. Subscriber (and its counsel) shall have been
provided a reasonable opportunity to review and comment on the Registration Rights Agreement and any amendment or supplement thereto
prior to filing the same with the Securities and Exchange Commission. The rights granted to Subscriber pursuant to the Registration
Rights Agreement shall be no less favorable to Subscriber than the other parties to the Registration Rights Agreement.

 

3.3.6 IPO
Closing. The Company shall have consummated the IPO.

 

3.3.7 Business
Combination. The Company’s proposed initial merger, share exchange, asset acquisition, share purchase, reorganization
or similar business combination with one or more businesses or entities (the “Business Combination”) shall have
been approved by unanimous vote of the Board of Directors of the Company and the conditions to the closing of the Business Combination,
including the approval of the Company’s shareholders, if applicable, shall have been satisfied or waived.

 

4. Restrictions on Transfer.
Subscriber hereby agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Securities unless,
prior thereto (a) a registration statement on the appropriate form under the Securities Act and applicable state securities laws
with respect to the Securities proposed to be transferred shall then be effective or (b) the Company has received an opinion of
counsel for the Company that such registration is not required because such transaction is exempt from registration under the Securities
Act and the rules promulgated by the Securities and Exchange Commission thereunder and under all applicable state securities laws.
All certificates representing the Securities shall have endorsed thereon a legend substantially as follows:

 

“THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL,
IS AVAILABLE.”

 

The Company agrees to cause its counsel
to deliver an opinion to the Company’s transfer agent directing the removal of the foregoing legends once able to do so pursuant
to applicable securities laws.

   

5. Other Agreements.

 

5.1 Further
Assurances. Each of the Company and the Subscriber agrees to execute such further instruments and to take such further action
as may reasonably be necessary to carry out the intent of this Agreement.

 

5.2 Notices.
All notices, statements or other documents which are required or contemplated by this Agreement shall be: (i) in writing and delivered
personally or sent by first class registered or certified mail or overnight courier service, (ii) by facsimile and (iii) by electronic
mail, in each case to the address, facsimile number or email address as set forth on the signature page hereto. Any notice or other
communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business
day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery
to an overnight courier service or five (5) days after mailing if sent by mail.

 

5.3 Entire
Agreement. This Agreement, together with those certain agreements to be entered into between the Subscriber (and/or its affiliates)
and the Company in connection with the IPO, including but not limited to an insider letter, a subscription agreement governing
the purchase of shares and warrants of the Company prior to and simultaneously with the closing of the IPO and Registration Rights
Agreement (collectively, the “Ancillary Agreements”), each substantially in the form to be filed as an exhibit
to the registration statement relating to the IPO (“Registration Statement”), embodies the entire agreement
and understanding between the Subscriber and the Company with respect to the subject matter hereof and supersedes all prior oral
or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant
or agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the
express terms and provisions of this Agreement.

 

    	 	5	 

     

    

 

5.4 Modifications
and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by
all parties hereto.

  

5.5 Waivers
and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only
by written document executed by all parties hereto. No such waiver or consent shall be deemed to be or shall constitute a waiver
or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such waiver or consent
shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing
waiver or consent.

 

5.6 Assignment.
The rights and obligations under this Agreement may not be assigned by any of the parties hereto without the prior written consent
of the other parties; provided that Subscriber may assign its rights and obligations to an affiliate without the prior consent
of the other parties.

 

5.7 Benefit.
All statements, representations, warranties, covenants and agreements in this Agreement shall be binding on the parties hereto
and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement
shall be construed to create any rights or obligations except among the parties hereto, and no person or entity shall be regarded
as a third-party beneficiary of this Agreement.

 

5.8 Governing
Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed
by the laws of New York applicable to contracts wholly performed within the borders of such state, without giving effect to the
conflict of law principles thereof.

 

5.9 Severability.
In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof, contained in
this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed limited to the extent
that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect. In the event that
such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions of this Agreement
shall nevertheless remain in full force and effect.

 

5.10 No
Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under
this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power or remedy
of such party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment
or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any other or further exercise
thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto shall not constitute
a waiver of the right of such party to pursue other available remedies. No notice to or demand on a party not expressly required
under this Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand in similar
or other circumstances or constitute a waiver of the rights of the party giving such notice or demand to any other or further action
in any circumstances without such notice or demand.

 

5.11 Survival
of Representations and Warranties. All representations and warranties made by the parties hereto in this Agreement or in any
other agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution and delivery hereof
and any investigations made by or on behalf of the parties.

 

5.12 Headings
and Captions. The headings and captions of the various subdivisions of this Agreement are for convenience of reference only
and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

 

5.13 Counterparts.
This Agreement may be executed in one or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or any other form of electronic delivery, such signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

    	 	6	 

     

    

 

5.14 Construction.
The words “include,” “includes,” and “including” will be deemed to be
followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include
any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise
requires. The words “this Agreement,” “herein,” “hereof,” “hereby,”
“hereunder,” and words of similar import refer to this Agreement as a whole and not to any particular subdivision
unless expressly so limited. The parties hereto intend that each representation, warranty, and covenant contained herein will have
independent significance. If any party hereto has breached any representation, warranty, or covenant contained herein in any respect,
the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the
relative levels of specificity) which such party hereto has not breached will not detract from or mitigate the fact that such party
hereto is in breach of the first representation, warranty, or covenant.

 

5.15 Mutual
Drafting. This Agreement is the joint product of the Subscriber and the Company and each provision hereof has been subject
to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against any party hereto.

  

6. Indemnification. Each party
shall indemnify the other against any reasonable loss, cost or damages (including reasonable attorney’s fees and expenses)
incurred as a result of such party’s breach of any representation, warranty, covenant or agreement in this Agreement, as
determined by a final non-appealable judgment of a court of competent jurisdiction.

  

7. Term. The Subscriber’s
obligation to acquire the Securities hereunder, and the Company’s obligation to sell the Securities hereunder, shall be in
effect until the earlier of (i) the consummation of the Business Combination within the time frame permitted by the Company’s
amended and restated certificate of incorporation (the “Charter”), which, as of the date hereof, is expected
to be 24 months from the consummation of the IPO, including any extensions beyond such term effected pursuant to the terms of the
Charter, and (ii) the liquidation of the Company in the event that the Company is unable to consummate the Business Combination
within the time frame permitted by the Charter (including any extensions).

 

8. Disclosure. The Subscriber
hereby acknowledges that (i) the terms of this Agreement will be disclosed in the Registration Statement, (ii) if deemed reasonably
necessary by the Company, this Agreement will be filed with the Securities and Exchange Commission as an exhibit to the Registration
Statement and (iii) the Company will disclose the terms of this Agreement to potential IPO investors and to potential Business
Combination targets. Notwithstanding the foregoing, before the filing of any such Registration Statement or the use of any marketing
materials for potential IPO investors or potential Business Combination targets or otherwise in connection with the “road
show” for the IPO which include the Purchaser’s name, the Purchaser shall have a reasonable opportunity to review the
disclosure in such Registration Statement or other marketing materials concerning the Purchaser and this Agreement and make reasonable
comments thereon.

 

9. Waiver of Claims against Trust.
The Subscriber hereby acknowledges that it is aware that the Company will establish a trust account (the “Trust Account”)
for the benefit of its public shareholders upon the closing of the IPO. The Subscriber, for itself and its affiliates, hereby agrees
that it has no right, title, interest or claim of any kind in or to any monies held in the Trust Account, or any other asset of
the Company as a result of any liquidation of the Company, except for redemption and liquidation rights, if any, the Subscriber
may have in respect of any shares issued as part of the units sold in the IPO (“Public Shares”) held by the
Subscriber. The Subscriber hereby agrees that it shall have no right of set-off or any right, title, interest or claim of any kind
(“Claim”) to, or to any monies in, the Trust Account, and hereby irrevocably waives any Claim to, or to any
monies in, the Trust Account that it may have now or in the future, except for redemption and liquidation rights, if any, the Subscriber
may have in respect of any Public Shares held by the Subscriber; provided, however, that the foregoing shall not restrict Subscriber
from bringing any claim Subscriber may have against the Company against the Company (or any successor entity) following consummation
of a Business Combination or against any funds held by the Company outside of the Trust Account prior to the consummation of a
Business Combination.

 

[Signature Page Follows]

  

    	 	7	 

     

    

 

If the foregoing accurately sets forth
our understanding and agreement, please sign the enclosed copy of this Agreement and return it to us.

 

Accepted and agreed this __ day of January,
2021.

 

	ISOS ACQUISITION CORPORATION	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	Address:	 	 
	Facsimile:	 	 
	Email:	 	 

 

	APOLLO CREDIT STRATEGIES MASTER FUND LTD.	 
	 	 
	By: Apollo ST Fund Management LLC, its investment manager	 
	 	 	 
	By:	 	 
	Name: 	Joseph D. Glatt	 
	Title:	Vice President	 
	 	 	 
	APOLLO PPF CREDIT STRATEGIES, LLC	 
	 	 
	By: Apollo Credit Strategies Master Fund Ltd., its member	 
	By: Apollo ST Fund Management LLC, its investment manager	 
	 	 	 
	By:	 	 
	Name: 	Joseph D. Glatt	 
	Title:	Vice President	 
	 	 	 
	APOLLO ATLAS MASTER FUND, LLC	 
	 	 
	By: Apollo Atlas Management, LLC, its investment manager	 
	 	 	 
	By:	 	 
	Name: 	Joseph D. Glatt	 
	Title:	Vice President	 
	 	 	 
	APOLLO A-N CREDIT FUND (DELAWARE), L.P.	 
	 	 
	By: Apollo A-N Credit Management, LLC, its investment manager	 
	 	 	 
	By:	 	 
	Name:  	Joseph D. Glatt	 
	Title:	Vice President  	 

 

     

     

    

 

Schedule 1

 

	Subscriber	 	Percentage Allocation	 
	Apollo Credit Strategies Master Fund Ltd.	 	 	76.3232	%
	Apollo PPF Credit Strategies, LLC	 	 	11.4640	%
	Apollo Atlas Master Fund, LLC	 	 	5.6893	%
	Apollo A-N Credit Fund (Delaware), L.P.	 	 	6.5235	%
	Total:	 	 	100	%Exhibit 4.1

 

 

SCORE MEDIA AND GAMING
INC.

 

ANNUAL INFORMATION FORM

 

For the year ended

August 31, 2020

 

October 28, 2020

 

     

     

    

 

TABLE OF CONTENTS

 	 	 	Page No.
	ANNUAL INFORMATION FORM	 	5
	FORWARD-LOOKING INFORMATION AND FORWARD-LOOKING STATEMENTS	 	5
	CORPORATE STRUCTURE and history	 	6
	GENERAL DEVELOPMENT OF THE BUSINESS – three year history	 	7
	THE BUSINESS OF THEscore	 	9
	General Description of the Business	 	9
	theScore	 	9
	theScore esports	 	9
	theScore Bet	 	10
	COVID-19 – Operational Update	 	10
	Employees	 	11
	Properties	 	11
	User Demographics and User Metrics	 	11
	Revenues	 	13
	Competitive Conditions	 	13
	Market Trends	 	14
	U.S. Gaming Regulatory Landscape	 	15
	U.S. Jurisdictions where theScore Bet Currently Operates	 	15
	New Jersey	 	15
	Indiana	 	16
	Colorado	 	17
	Canadian Gaming Regulatory Landscape	 	17
	risk factors	 	18
	Risks Related to Our Business and Industry	 	18
	Regulation of Gaming Industry	 	18
	Continued Support of Banks and Payment Processors	 	21
	Losses with Respect to Individual Events or Betting Outcomes	 	22
	Competition in the Online and Mobile Sports Betting and Media Industry	 	22
	Digital Sports Media Industry Reliant on Mobile Advertising	 	24
	Recent Expansion of Sports Betting Operations	 	24
	Historical Losses and Negative Operating Cash Flows	 	24
	Liquidity Risk	 	25
	COVID-19	 	25
	Cancellation, Postponement or Curtailing of Sporting and Other Events	 	25
	Reductions in Discretionary Consumer Spending	 	26
	Dependence on Key Suppliers	 	26
	Mobile Device Users May Limit Data Tracking and Targeting	 	27
	New and Evolving Industry	 	27
	Limited Long-Term Agreements with Advertisers	 	27
	Substantial Capital Requirements	 	28
	Protection of Intellectual Property	 	28
	Infringement on Intellectual Property	 	28
	Brand Development	 	29
	Corporate Social Responsibility, Responsible Gaming, Reputation and Ethical Conduct	 	29
	Dependence on Key Personnel and Employees	 	30

 

    2

     

    

 

	Defects in Products	 	30
	Real or Perceived Inaccuracies in Key Performance Metrics	 	31
	User Data	 	31
	Reliance on Collaborative Partners	 	32
	New Business Areas and Geographic Markets	 	32
	Operational and Financial Infrastructure	 	33
	Information Technology Defects	 	33
	Reliance on Third-Party Owned Communication Networks	 	33
	Uncertain Economic Health of the Wider Economy	 	34
	Governmental Regulation of the Internet	 	34
	Currency Fluctuations	 	36
	Changes in Taxation	 	36
	Exposure to Taxable Presences	 	36
	Risk of Litigation	 	36
	Internal Controls	 	36
	Free and Open Source Software Utilization	 	36
	Risk Relating to Ownership of theScore Shares	 	37
	Major Shareholder with 100% of the Special Voting Shares	 	37
	Market Price and Trading Volume of Class A Shares	 	37
	Debt Obligations Will Have Priority Over Class A Shares in the Event of a Liquidation, Dissolution or Winding Up	 	37
	Dividend Policy	 	38
	Future Sales of Class A Shares by Existing Shareholders	 	38
	Potential Dilution	 	38
	Dividends	 	38
	Description of Capital Structure	 	39
	Class A Shares	 	39
	Special Voting Shares	 	39
	Preference Shares	 	40
	Share Constraints	 	42
	MARKET FOR SECURITIES	 	42
	DIRECTORS AND OFFICERS	 	42
	Name and Occupation	 	42
	Cease Trade Orders, Bankruptcies, Penalties or Sanctions	 	45
	Conflicts of Interest	 	45
	Audit Committee	 	46
	Audit Committee	 	46
	Relevant Education and Experience	 	46
	Pre-Approval Policies and Procedures	 	46
	External Auditor Service Fees	 	47
	LEGAL PROCEEDINGS	 	47
	INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS	 	47
	Registrar and Transfer Agent	 	47
	MATERIAL CONTRACTS	 	48
	Respective Rights Agreement	 	48
	Management Services Agreement	 	49

 

    3

     

    

 

	Board Nomination Agreement	 	49
	Relay Ventures Pre-emptive Rights Agreement	 	49
	Coat Tail Agreement	 	50
	Investment Agreement and Convertible Debenture	 	50
	INTEREST OF EXPERTS	 	51
	ADDITIONAL INFORMATION	 	51
	SCHEDULE A	 	52

 

    4

     

    

 

SCORE MEDIA AND GAMING INC.

 

ANNUAL
INFORMATION FORM

 

All references in this annual information
form (“AIF”) to “theScore”, “we”, “us” and “our” refers to Score
Media and Gaming Inc. and its direct and indirect subsidiaries unless otherwise noted or the context requires otherwise. All information
contained herein is as of August 31, 2020 unless otherwise noted.

 

All dollar amounts in this AIF are expressed
in Canadian dollars, unless otherwise noted.

 

Certain trademarks used in this AIF, such
as “theScore”, “theScore Bet”, “theScore esports”, “theScore.com”, “theScore.bet”,
and “theScoreesports.com”, and theScore logo, theScore | Bet logo, S | Bet logo, theScore esports logo and the “S”
icon are trademarks or registered trademarks of theScore. All other trademarks or services marks appearing in this AIF are the
trademarks or service marks of their respective owners.

 

References in this AIF to research reports
or articles should not be construed as depicting the complete findings of the entire referenced report or article. The information
in each report or article is not incorporated by reference into this AIF.

 

FORWARD-LOOKING
INFORMATION AND FORWARD-LOOKING STATEMENTS

 

Certain statements made in this AIF constitute
forward-looking statements that are made as of the date hereof. All statements other than statements of historical fact contained
in this AIF, including, without limitation, those regarding our future financial position and results of operations, strategy,
plans, objectives, goals and targets, including in light of the ongoing and evolving COVID-19 pandemic, regulatory approvals, future
developments in the markets where we participate or are seeking to participate, and any statements preceded by, followed by or
that include the words “aim,” “anticipate,” “believe,” “continue,” “plan,”
 “estimate,” “expect,” “forecast,” “intend,” “predict,” “project,”
 “seek,” “will,” “would,” “may” and “should” or similar expressions
or the negative thereof, are forward-looking statements. These forward-looking statements are not historical facts but reflect
our current expectations concerning future results and events, and relate to, among other things, anticipated financial performance,
business prospects, strategies, regulatory developments, new services, market forces, commitments and technological developments.
By its nature, such forward-looking information is subject to various risks and uncertainties, including risks related to our operating
in an evolving regulatory landscape, continued support of banks and payment processors, losses with respect to individual events
or betting outcomes, competition in the online and mobile sports betting industry, regulatory investigations, market access limitations,
shareholders being subject to extensive governmental regulation, industry social responsibility concerns, reliance on mobile advertising,
recent expansion of our sports betting operations, our historical losses and negative operating cash flows, liquidity risk associated
with meeting our financial obligations, the impacts of COVID-19, cancellations and delays of sporting and other events, reductions
in discretionary consumer spending, our dependence on key suppliers, the possibility of mobile device users limiting targeted advertising,
the new and evolving industries in which we operate, our limited long-term agreements with advertisers, our potential requirements
for substantial capital, the protection of our intellectual property, the possibility of infringing on the intellectual property
of others, our brand development, our responsible and ethical conduct, our dependence on key personnel, rapid technology developments,
defects in products, inaccuracies in key performance metrics, user data, reliance on collaborative partners, our expansion into
new business areas and geographic markets and several other risk factors, including those discussed in this AIF, which could cause
our actual results and experience to differ materially from the anticipated results or other expectations expressed (see “RISK
FACTORS”). Readers are cautioned not to place undue reliance on this forward-looking information, and we disclaim any
intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable law. The forward-looking statements and information contained in this AIF
are expressly qualified by this cautionary statement.

 

    5

     

    

 

 

CORPORATE
STRUCTURE and history

 

theScore was incorporated pursuant to the
Business Corporations Act (Ontario) on August 30, 2012 under the name “theScore, Inc.” and continued
under the Business Corporations Act (British Columbia) on August 29, 2019 under the name “Score Media and Gaming
Inc.”

 

Our fiscal year commences September 1st
of each year and ends on August 31st of the following year. Our fiscal year which ended on August 31, 2020
is referred to as “current fiscal year”, “fiscal 2020”, “F2020” or using similar words. Our
previous fiscal year which ended on August 31, 2019 is referred to as “previous fiscal year”, “fiscal 2019”,
 “F2019” or using similar words.

 

Our principal place of business is 500
King Street West, 4th Floor, Toronto, Ontario, M5V 1L9 and our registered office is 745 Thurlow Street, Suite 2400,
Vancouver, British Columbia, V6E 0C5.

 

The following chart depicts the intercorporate
relationships among theScore and its material subsidiaries (all of which are wholly-owned) as of the date of this AIF:

 

 

    6

     

    

 

GENERAL
DEVELOPMENT OF THE BUSINESS – three year history

 

Highlights of Fiscal 2020

 

We began the multi-state expansion of our
mobile sports betting app, theScore Bet, launching in both Colorado and Indiana in September 2020. theScore Bet is authorized
to operate in Colorado by the Colorado Division of Gaming, via our market access agreement with a subsidiary of U.S. gaming operator
Jacobs Entertainment Inc. theScore Bet is authorized to operate in Indiana by the Indiana Gaming Commission, via our multi-state
market access framework agreement with Penn National Gaming Inc. theScore Bet first launched in New Jersey in September 2019
as authorized by the New Jersey Division of Gaming Enforcement, via our December 2018 market access agreement with Darby
Development LLC, the operator of Monmouth Park Racetrack, and the New Jersey Thoroughbred Horsemen’s Association.

 

After receiving final approval to graduate
to the Toronto Stock Exchange (“TSX”) from the TSX Venture Exchange (“TSXV”), our Class A
Subordinate Voting Shares (“Class A Shares”) commenced trading on the TSX at market open on September 15,
2020 under the existing ticker “SCR”. Our Class A Shares were voluntarily delisted from the TSXV concurrently
with the commencement of trading on the TSX.

 

theScore Bet secured market access to operate
an online casino (iGaming) in New Jersey via a market access agreement with Twin River Worldwide Holdings Inc. We anticipate launching
our online casino product in New Jersey in the second half of 2021, subject to securing applicable licensing and regulatory approvals
from the New Jersey Division of Gaming Enforcement and the completion of Twin River’s pending acquisition of Bally’s
Atlantic City Hotel & Casino in Atlantic City, New Jersey.

 

We announced a multi-year agreement to
become an Authorized Gaming Operator of Major League Baseball (“MLB”), providing us with access to Official
MLB Data, league marks, and logos for theScore Bet. We also became an Authorized Sports Betting Operator of the National Basketball
Association (“NBA”) in a multiyear partnership. The agreement provides us with access to Official NBA Betting
Data, leagues marks, and logos for theScore Bet.

 

We unveiled FUSE, a new suite of innovative
integrations linking our media and sports betting platforms, creating faster and more seamless navigation between theScore and
theScore Bet. Available on iOS devices, FUSE enables sports fans to create betslips from within theScore app for the first time,
with a single tap then taking registered users directly into theScore Bet to complete the wager.

 

We announced the appointment of two experienced
gaming executives to our senior leadership team. In September 2019, Alvin Lobo joined as Chief Financial Officer from major
U.S.-based casino operator Boyd Gaming Corporation, where he served as Vice President of Corporate Finance. In December 2019,
we appointed Josh Sidsworth as General Counsel and Chief Compliance Officer. Josh previously served as Executive Vice President
Corporate Development and General Counsel with the NRT Group of Companies, a leading supplier of ticket redemption kiosks and payment
processing solutions to casinos worldwide.

 

We closed a bought deal public offering
of our Class A Shares via short-form prospectus (the “Offering”), raising gross proceeds of $25,649,390.
Canaccord Genuity Corp. and Eight Capital acted as lead underwriters for the Offering on behalf of a syndicate of underwriters
which also included Cormark Securities Inc., INFOR Financial Inc. and Scotia Capital Inc. Net proceeds from the Offering will
be used to fund working capital and other general corporate purposes, including the growth and expansion of our sports betting
operations in the U.S. and Canada by supporting the multi-jurisdiction deployment and operation of theScore Bet and user acquisition
and retention in jurisdictions where we are, or will be, operating.

 

    7

     

    

 

Highlights of Fiscal 2019

 

We secured market access rights to offer online and mobile sports betting and iGaming applications in 11 U.S. states in July 2019
via a 20-year multi-state market access framework agreement with Penn National Gaming Inc. In connection with this market
access framework agreement, Penn National took an equity stake in theScore by subscribing for US$7.5 million of Class A Shares
as part of a US$10 million private placement, alongside other investors including John Levy Family Holdings Ltd., the family holding
company of theScore Founder and CEO John Levy, with proceeds used to support the expansion of our sports betting platform in the
U.S., including the funding of an upfront market access fee of US$7.5 million due to Penn National under the framework agreement.

 

In August 2019, we entered into an
investment agreement with a fund managed and controlled by Fengate Asset Management, raising $40,000,000 to fund the growth and
development of the our businesses. Under the terms of the agreement, Fengate purchased a $40,000,000 8.00% convertible unsecured
subordinated debenture of our company, due August 31, 2024. This strategic investment closed on September 5, 2019.

 

To support the development and launch of
our mobile sportsbook, we executed a binding term sheet with U.S.-based sportsbook platform provider Bet.Works, whose proprietary
sports betting technology is being used to power theScore’s sports betting platforms. Bet.Works is our exclusive supplier
of sportsbook platform technology in the U.S. and is also providing certain operational services to facilitate our sports betting
operations.

 

In November 2018, we closed a non-brokered
$8.5 million private placement, with proceeds used to support our sports betting related business development activities, as well
as for working capital and general corporate purposes. Participants included John Levy Family Holdings Ltd., Relay Ventures Fund
II L.P. and Relay Ventures Parallel Fund II L.P., entities controlled by directors of the Company.

 

We updated our flagship mobile sports media
application ‘theScore’ to include new innovative public chat and messaging features, helping our community of fans
connect around the games and content they love. Public chat is available in every matchup page, while fans can also set-up group
messaging with friends and family or just chat 1-1.

 

We continued to expand our video strategy
across our primary sports vertical, creating longer-form video content episodes, including features on high-profile athletes including
NBA stars Serge Ibaka, Austin Rivers, and Enes Kanter.

 

theScore esports continued to establish
itself as a leading provider of esports video content. In F2019, subscribers to our YouTube channel more than doubled from F2018
to over 900,000 subscribers. In November 2018, theScore esports won Best Category Specific YouTube Channel at the 2018 Cynopsis
Model D Awards in New York City, beating out a number of primetime competitors, including The Ellen Show.

 

Highlights of Fiscal 2018

 

In May 2018, the Supreme Court of
the United States struck down the Professional and Amateur Sports Protection Act of 1992 (‘PASPA’), an Act that largely
outlawed sports betting outside Nevada, effectively clearing a path for the legalization of sports betting in the United States.

 

We redesigned our website, theScore.com,
creating a stronger connection between the look and feel of our mobile application and our web platforms. In addition, we redesigned
the PGA golf section of theScore app to provide deeper stats coverage and personalization options.

 

We extended our video strategy to our primary
sports vertical, launching the first of a new longer-form video content series “theScore X” in Q4 F2018, which debuted
with a feature on NBA star Lance Stephenson.

 

We launched our service for Bixby Home,
resulting in our news and data content being available to users on Samsung Galaxy devices, including their flagship S9 and S9+
devices, across the United States. Users are able to access our content by swiping through to Bixby Home, the name of Samsung’s
personal assistant.

 

    8

     

    

 

 

THE
BUSINESS OF THEscore

 

General Description of the Business

 

Score Media and Gaming Inc. empowers
millions of sports fans through our digital media and sports betting products. Our media app ‘theScore’ is one of the
most popular in North America, delivering fans highly-personalized live scores, news, stats, and betting information from their
favourite teams, leagues, and players. Our sports betting app ‘theScore Bet’ delivers an immersive and holistic mobile
sports betting experience and is currently available to place wagers in New Jersey, Colorado, and Indiana. We also create and distribute
innovative digital content through our web, social and esports platforms.

 

theScore

 

Natively developed for iOS and Android
operating systems, theScore app is free to end users and delivers comprehensive and customizable news, scores, stats, and notifications
for all major leagues and sports, including the National Football League (“NFL”), NCAA Football and Basketball,
the National Basketball Association (“NBA”), Major League Baseball (“MLB”), the National
Hockey League (“NHL”), PGA Golf, NASCAR Racing and major European soccer leagues, including the English Premier
League and Champions League, as well as special events such as the Olympic Games and FIFA World Cup. theScore app provides sports
fans with deep personalization options, allowing them to follow and receive push notifications on news, scores and stats from their
favourite teams and fantasy players in real-time with customizable feeds and seamless social sharing. We deliver comprehensive
original news content across all major leagues and competitions, presenting stories in a way to make them easily consumable on
mobile devices, including rich visuals and multimedia such as videos and embedded tweets. theScore app also includes innovative
public chat and messaging features, enabling our community of fans to connect around the games and content they love. News stories
are produced by our industry-leading mobile-first newsroom, where a team of news editors creates content via our in-house content
management system that allows them to deliver mobile news to the user. During F2019, we also introduced additional sports betting
data and content into theScore app. Coinciding with the launch of theScore Bet, in September 2019 we unveiled ‘Bet Mode’
in our sports media app. When Bet Mode is activated, sports app users unlock access to even faster scoring updates and data, with
no need to pull-to-refresh, real-time odds, and additional betting content.

 

Users of theScore app are primarily located
in North America. In the year ended August 31, 2020, the location of the audience for theScore app on iOS and Android was
approximately 62% in the United States, 27% in Canada and 11% in other international markets.

 

theScore.com is our principal web property.
It provides sports news, scores, video and editorial content written by a roster of original, engaging sports voices, while curating
the best and most relevant sports content from around the web. theScore.com is fully responsive and provides a great viewing experience
for sports fans across a wide range of devices and screens, combined with all the news and data fans have come to expect from our
flagship mobile app.

 

We continue to support our marketing efforts
through a dedicated team of social media editors, content creators and curators, who are responsible for sharing and syndicating
our editorial content and other multimedia through social platforms including Facebook, Twitter, Instagram, TikTok, and other
third-party platforms. This syndication increases the exposure of our brand and editorial content and drives users back to theScore.com.

 

theScore esports

 

We also provide comprehensive coverage
of the growing competitive video gaming scene through theScore esports. Via a dedicated newsroom of specialist content creators,
theScore esports produces and shares original video content pieces across its web and social platforms, including features and
documentaries on high-profile teams, games and players from across the world of esports, as well as highlights and interviews.
theScore esports’ video content is distributed across YouTube, Facebook, Twitter, Instagram, and TikTok.

 

    9

     

    

 

theScore Bet

 

Launched
in New Jersey in September 2019, theScore Bet is a comprehensive mobile sports betting platform natively built for iOS and
Android devices that delivers an immersive and holistic sports betting experience. theScore Bet delivers a wide variety of pre-game
and in-game markets and betting options, scores and in-game data, features like early cash-out, and easy and secure deposit and
withdrawal options. Fans are able to place bets on sports including NFL and NCAA football, NBA and NCAA basketball, MLB baseball,
NHL hockey, PGA golf, ATP and WTA tennis, MMA, and boxing as well as soccer from the UEFA Champions League and Europa League,
English Premier League, La Liga, Bundesliga, Ligue 1 and MLS. theScore Bet also delivers a seamless cross-state experience for
sports fans as it expands across the U.S. via a single mobile app and cutting-edge multi-state wallet functionality.

 

In November 2019, we introduced FUSE,
a new suite of innovative integrations linking theScore app with theScore Bet. Currently available on iOS devices, FUSE allows
users to create bet slips from within theScore app, including markets for money lines, spreads and totals. These native integrations
have been embedded into theScore app’s box scores, where users can leverage deep data, scores, and stats to inform, support
and now build their bet slip. A single tap then takes registered users directly into theScore Bet to complete the wager.

 

theScore Bet is authorized to provide sports
betting services in New Jersey (by the New Jersey Division of Gaming Enforcement, via our market access agreement with Darby Development
LLC, the operator of Monmouth Park Racetrack), in Colorado (by the Colorado Division of Gaming, via our market access agreement
with a subsidiary of Jacobs Entertainment Inc.), and in Indiana (by the Indiana Gaming Commission, via a multi-state market access
framework agreement with Penn National Gaming). We also have market access for up to 10 additional states via our multi-state market
access agreements with Penn National Gaming, subject to the enactment of enabling state gaming laws and regulations, and the receipt
of relevant licenses and approvals. theScore Bet also has market access to operate an online casino in New Jersey via a multi-year
agreement with Twin River Worldwide Holdings, Inc. and anticipates launching its online casino product in the state in the
second half of calendar 2021, subject to securing applicable licensing and regulatory approvals from the New Jersey Division of
Gaming Enforcement and the completion of Twin River’s pending acquisition of Bally’s Atlantic City Hotel &
Casino in Atlantic City, New Jersey.

 

We are a Platinum member of the National
Council on Problem Gambling, whose mission is to lead state and national stakeholders in the development of comprehensive policy
and programs for all those affected by problem gambling. theScore Bet is committed to promoting safe, responsible gaming, and we
provide our users with access to responsible gaming resources and a suite of tools within theScore Bet app in order to help keep
betting safe and fun.

 

COVID-19 – Operational Update

 

In March 2020, the COVID-19 pandemic
led to the unprecedented postponement, suspension or cancellation of sporting events on a global scale. We actively responded by
taking measures to ensure the health and safety of our team members, and to mitigate the business impact on theScore. We successfully
adopted a mandatory work-from-home program and, as substantially all of our day-to-day activities can be fully performed by personnel
working remotely, have been able to remain fully operational during this period. We also took measures to manage costs, including
the reduction of operating expenses and availing ourselves of all applicable government programs. As part of these cost management
efforts, every member of theScore’s management team agreed to forego 25% of their salary from May 1 to August 31,
2020 in exchange for an equivalent grant of Restricted Stock Units (“RSU”) in theScore, and a variation of this
program was also made available on an optional basis to all full-time staff.

 

The extent to which the COVID-19 pandemic
may impact our business and activities will depend on future developments which remain highly uncertain and cannot be predicted
with confidence, such as the spread and severity of the disease, the duration of the outbreak including any possible resurgence,
and actions taken by the Canadian and U.S. authorities to control the spread of the virus, as well as the postponement, suspension,
cancellation, rescheduling and resumption of sporting events, the impact of the pandemic on consumer and advertiser spending, and
the ability or willingness of suppliers and vendors to provide products and services.

 

    10

     

    

 

Despite the unprecedented disruption to
the sports calendar, we achieved 2.9 million and 3.0 million average monthly active users of theScore app on iOS and Android in
Q3 and Q4 F2020 respectively, representing nearly 75% and 83% of our average monthly active users achieved in the same periods
the previous year. Live sports drive significant engagement in theScore app, and the disruption to the sports calendar led to an
expected decline in engagement in Q3 and Q4 F2020. However, our focus on delivering innovative and interactive content during these
periods resulted in users continuing to engage with theScore app, with 35 average monthly sessions-per-user during Q3 F2020 and
70 average monthly sessions-per-user during Q4 F2020, with the increase in engagement in Q4 coinciding with the gradual resumption
of major sports leagues and events.

 

Employees

 

As of August 31, 2020, we had 239
full-time employees and 12 part-time employees based in Toronto and 19 full time employees and one part-time employee in the United
States. Of our 271 employees, 111 are involved in software and product development, 90 are involved in content development, 49
are involved in sales and marketing and 21 are involved in executive management, finance, and administration. In addition, as of
this same date we had two contractors in executive management, finance and administration.

 

We believe that our success will be dependent
on the performance of our management and key employees, many of whom have specialized knowledge and skills related to the digital
sports media and gaming businesses. We believe we have the personnel with the specialized skills required to successfully carry
out our operations and business objectives.

 

Properties

 

We maintain our operations at leased premises
in Toronto, Ontario. This facility, totalling approximately 30,881 square feet, contains corporate, administration, sales and production
functions. Total annual base rent is currently $972,752 per calendar year. The lease for this facility expires in 2022, and we
have the option to extend this lease for an additional five years. We also maintain offices at leased premises in Hamilton, Ontario,
which is partially owned by John Levy, our Chairman and Chief Executive Officer. This facility, totalling approximately 1,500 square
feet, contains an executive office. We also maintain offices in New York City, New York, in a shared workspace for our New York-based
employees who are engaged in sales, marketing and business development functions.

 

User Demographics and User Metrics

 

As shown in the table below, users of theScore
app are primarily young, male, educated and affluent, which is a highly sought-after demographic in a number of key advertising
categories including automotive, consumer electronics, quick service restaurants, beer and beverage products.

 

theScore App Users – Selected Demographic
Profile

 

	 	United States Audience	Canadian Audience
	Between the ages of 18-44	53%	63%
	Male	84%	84%
	Household Income >$100,000	47%	56%
	College Education	63%	50%

(Source: Comscore Mobile Metrix and
Comscore MobilLens, September 2020)

 

According to YouTube Analytics, audience
for our esports’ video content on YouTube for F2020 was primarily male (97%), with most aged between 18-34 (79%). Video views
were predominantly generated from the United States (31%), with the rest spread relatively evenly across rest-of-world, with the
Philippines and United Kingdom ranked second and third respectively. (Source: YouTube Analytics, September 2020)

 

    11

     

    

 

The following chart highlights average
monthly active users of theScore app on iOS and Android on a quarterly basis for our last three fiscal years. A monthly active
user is a unique user that uses theScore app at least once a month:

 

	 	F2018	F2019	F2020
	Q1	4.3M	4.2M	4.3M
	Q2	4.1M	4.0M	4.1M
	Q3	3.9M	3.9M	  2.9M*
	Q4	3.7M	3.6M	  3.0M*

  (Source: Internal company data)

* MAUs impacted by disruption to sports calendar caused by
the COVID-19 pandemic.

 

The following chart highlights the average session per user
of theScore app on iOS and Android on a quarterly basis for our last three fiscal years. Monthly user sessions are the number of
times our mobile applications are opened in the month:

 

	 	F2018	F2019	F2020
	Q1	102.7	111.4	122.9
	Q2	84.7	97.0	109.9
	Q3	92.6	102.3	 35.0*
	Q4	70.0	75.1	 70.1*

  (Source: Internal company data)

* Sessions impacted by disruption to sports calendar caused
by the COVID-19 pandemic.

 

The following chart highlights the average
monthly reach of our content across Facebook, Instagram and Twitter collectively on a quarterly basis since we started tracking
such data in F2018. Social reach does not necessarily represent unique monthly users, as there may be duplication in audience across
social media platforms:

 

	 	F2018	F2019	F2020
	Q1	n/a	67.0M	96.7M
	Q2	30.0M	95.0M	90.8M
	Q3	50.0M	100.0M	104.5M
	Q4	55.0M	142.0M	103.0M

(Source: Facebook Insights, Instagram,
Twitter Analytics, and TikTok)

 

The following chart highlights the number
of subscribers to theScore esports YouTube channel at the end of each fiscal quarter for our last three fiscal years:

 

	 	F2018	F2019	F2020
	Q1	165,276	531,404	1,033,297
	Q2	214,305	637,410	1,159,844
	Q3	278,172	762,553	1,349,074
	Q4	396,468	908,244	1,460,918

(Source: YouTube Analytics)

 

The following chart highlights total video
views of theScore esports content across YouTube, Facebook, Twitter, Instagram, and TikTok* on a quarterly basis for our last
three fiscal years:

 

	 	F2018	F2019	F2020
	Q1	17.2M	41.2M	78.4M
	Q2	20.3M	40.6M	77.8M
	Q3	22.3M	68.0M	144.5M
	Q4	33.1M	85.0M	291.8M

  (Sources: YouTube Analytics, Facebook Insights, Twitter Analytics, Instagram,
TikTok Analytics)

*theScore esports launched on TikTok in late Q2 F2020

 

    12

     

    

 

Revenues

 

The revenue model for theScore app and
website and theScore esports is advertising based. Advertising revenue is generated by selling impressions and integrations within
the app to advertisers. Impressions appear within ad units, which are embedded in various locations throughout our apps, website,
and video content. Impressions are refreshed when a user opens an app or website or navigates to a different page or section
within one of the apps or websites or, in the case of theScore esports, when someone watches our video content.

 

For theScore app and website, we derive
advertising revenue via a combination of programmatic advertising and direct sales. Programmatic advertising allows for automated
bidding by advertisers on available inventory within theScore app in real-time via automated exchanges. Advertisers pay on a cost-per-thousand
(“CPM”), also called cost-per-mille, basis. CPM rates can range depending on a number of variables at any given
time, including the type and placement of the advertising unit, any applicable audience demographics, segmentation and targeting,
the nature of the sales channel (e.g. direct sold vs. programmatic) and market forces including advertiser demand and seasonality.
The majority of theScore’s media advertising revenue in the U.S. is driven by programmatic advertising, complemented by direct
sales.  In Canada, our revenue model is almost exclusively driven by direct sales.

 

For theScore esports, revenue
is generated by selling impressions and integrations within our video content to advertisers. The primary distribution channel
for our esports video content is YouTube, where advertisers are able to target by audience demographic and bid programmatically
for advertising inventory across YouTube’s network. YouTube offers a variety of advertising units, including pre-roll, mid-roll
and overlay with the publisher earning a share of the advertising revenue sold by YouTube. The amount of revenue derived from YouTube
advertising varies depending on a number of factors, including the type and placement of the advertising unit, any applicable audience
demographics, segmentation and targeting, market forces including advertiser demand and seasonality, the number of impressions
generated and the amount of time a viewer watches the video. theScore esports also generates advertising revenue via direct sales
to brands looking to engage with fans of competitive gaming through direct integration into existing franchises, custom content
creation on theScore esports’ platforms and white label content production to power a brand's marketing channels.

 

Sports betting gross gaming revenue (otherwise
known as the ‘hold’ or ‘gross win percentage’) is the total of all sums wagered (also known as the ‘handle’)
less the sums paid out in respect of sums wagered (also known as the ‘winnings’). Sports betting gross gaming revenues
are thus dependent on a number of factors, including the number and type of bets placed, the quantum of the sums wagered, the quoted
odds and the outcome of the applicable events.

 

In order to place a bet, users of theScore
Bet must (i) download theScore Bet app; (ii) complete the account registration process, including all applicable know-your-customer
(KYC) procedures; (iii) successfully deposit funds into their theScore Bet account; and (iv) be physically located in
one of the states where wagering is currently permitted on theScore Bet and for which the user has successfully completed the account
registration process (i.e. New Jersey, Colorado, and Indiana).

 

Competitive Conditions

 

theScore app operates in a highly competitive
mobile sports media market. In this space, we directly compete with many companies that offer mobile sports products. These include
major media companies such as CBS Sports, ESPN, Fox Sports, SB Nation, Sportsnet, TSN, Turner Sports, and Yahoo Sports, and the
digital media divisions of major North American sports leagues, independent fantasy sports companies, other digital media companies
that cover esports, as well as start-up companies.

 

For theScore esports, direct competitors
include companies that provide dedicated esports news and feature content on their platforms, including Dexerto, Dot Esports, and
ESPN as well as the content arms of some professional esports leagues and teams.

 

Our theScore Bet mobile sports betting
platform operates in a highly competitive and regulated U.S. sports betting market. We compete directly with many online gaming
and fantasy sports companies, casino operators, and other media companies that offer online and mobile sports betting products.
These include companies such as Barstool Sports, Bet 365, Caesars, DraftKings, FanDuel, FOX Bet, MGM/GVC, PointsBet, and William
Hill. Competition may also include unlicensed offshore online gaming operators that may make their products accessible to users
in the U.S. market.

 

    13

     

    

 

Market Trends

 

Growth of revenues associated with theScore
app will be driven in part by overall market trends, including the continued growth of the smartphone market, of mobile web usage
and of mobile advertising in Canada and the United States. Alongside this, our ability to compete in an increasingly competitive
mobile app market will determine our future growth.

 

In April 2020, Statista estimated
that the number of U.S. consumers with a smartphone is expected to grow from 269 million in 2019 to 290 million in 2024. According
to eMarketer, adults in the U.S. are expected to spend 3 hours, 6 minutes per day on a smartphone in 2020, a 14% increase from
2019. In 2019, for the first time, adults spent more time engaging with their mobile devices than watching television. eMarketer
forecasts that mobile ad spend in the U.S. would account for US$91.5 billion of U.S. media ad spending in 2020. By the end of 2024,
eMarketer forecasts that mobile ad spending will account for US$161.5 billion. (Sources: Statista, April 2020 - Number
of Smartphone Users in the United States from 2018 to 2024; eMarketer, June 2020 – US Mobile Time Spent 2020; eMarketer,
May 2019, US Time Spent with Mobile 2019; eMarketer, April 2020 – Prior Assumptions About 2020 TV Ad Spend Growth
May Shift in Light of Pandemic)

 

In April 2020, Statista reported that
the number of smartphone users in Canada had reached 31.4 million which represents approximately 83% of the population. Statista
forecasts this will grow to 33 million by 2024. Adoption of mobile advertising continues to increase as marketers become more comfortable
with mobile advertising formats. Digital ad spending in Canada has now had the largest share of Canadian ad spend for six years,
passing television in 2014. According to a July 2020 eMarketer report, mobile ad spending will grow 8% in 2020. In 2020, digital
advertisers in Canada were forecast to spend a total of $8.5 billion. (Sources: Statista, April 2020 – Number of
smartphone users in Canada from 2018 to 2024; eMarketer, July 2020 – Canada Digital Ad Spending Update Q2 2020)

 

According to data from research firm Statista
published September 2020, there are approximately 4.5 million apps and games currently available in the App Store and Google
Play worldwide. Growth in app downloads in the U.S. was 10% over the past three years, from 11.3 billion in 2017 to 12.5 billion
in 2019. (Sources: Statista, September 2020 – Number of apps available in leading app stores as of 2nd
quarter 2020; Sensor Tower Store Intelligence, September 2020)

 

However, the emergence of new and more
restrictive privacy laws, and the change in practice by smartphone manufacturers on data processing by application developers,
may impact some of the forecasted mobile advertising industry growth in both the United States and Canada.

 

Growth of revenues associated with theScore
esports will be driven in part by overall market trends, including the continued growth in audience of the esports industry and
the ability for us to continue to grow and effectively monetize the audience consuming our video content via advertising.

 

Growth of our esports audience and revenues
will be driven by the continued expansion of the market for competitive gaming. According to the 2020 Newzoo Global Esports Market
Report, global esports’ audience is expected to reach 495 million in 2020, made up of 223 million esports enthusiasts and
a further 272 million occasional viewers. The number of esports enthusiasts is expected to grow another 32% by 2023, totaling 295
million. (Source: Newzoo, July 2020 – Newzoo Global Esports Market Report)

 

Growth of revenues associated with our
sports betting platform will be driven in part by overall market trends, including the growth of the U.S. sports betting industry,
the continued state-by-state roll-out of regulated online and mobile sports betting, our ability to secure additional market access
to offer online and mobile sports betting services, and our ability to secure the relevant licenses and approvals from state gaming
regulators in those states where we have secured market access. Alongside this, our ability to compete in a highly competitive
online and mobile sports betting market will also determine our future growth.

 

    14

     

    

 

In February 2020, Eilers and Krejcik
Gaming LLC (“Eilers and Krejcik”) forecast that the U.S. sports betting industry could generate US$17.3 billion
in revenue annually if all 50 states regulated sports betting to allow a “robust online sports betting product as well as
retail sports betting.” In 2018, the year the Professional and Amateur Sports Protection Act 1992 was ruled unconstitutional
by the U.S. Supreme Court, US$497 million in revenue was generated by regulated sports betting in the U.S. In 2019, revenue generated
by regulated sports betting in the U.S. grew to US$908 million.

 

Mobile sports betting accounts for the
majority of revenue in states where mobile gaming is permitted. According to Eilers and Krejcik, the overall amount wagered in
the New Jersey sports betting market in 2019 was US$4.5 billion, with online and mobile accounting for US$3.8 billion, or 84% of
total handle. In Colorado, where retail and online sports betting was launched in May 2020, the amount wagered in August 2020
more than doubled month-over-month to US$128.6 million, with online and mobile accounting for US$126.6 million, or 98% of total
handle. In Indiana, where retail and online sports betting was launched in September 2019, the amount wagered in August 2020
more than doubled month-over-month to US$169 million, with online and mobile accounting for US$143 million, or 85% of total handle.
(Sources: PlayNJ.com – January 2020 – New Jersey Sportsbooks’ Hot December Pushes Annual Handle
to More than $4.5 Billion in 2019; iGB North America – September 2020, CO sports betting handle more than doubles in
August; Gambling.com – September 2020, Indiana August Sports Betting Handle Reaches $169 million).

 

U.S. Gaming Regulatory Landscape

 

In May 2018, the Supreme Court of
the United States ruled that the Professional and Amateur Sports Protection Act of 1992 (PASPA), an act that largely outlawed sports
betting in the U.S. outside of Nevada, was unconstitutional. With PASPA’s repeal, individual states gained almost complete
legislative authority over sports betting within their respective borders. The regulatory landscape for sports betting in the U.S.
is nascent and fluid. As at October 28, 2020, 18 states and the District of Columbia offer fully legalized and regulated sports
betting, with four other states passing sports betting-related bills, and an additional five states with legislation pending.

 

	 	Jurisdictions
	Jurisdictions offering fully legalized and regulated sports betting (retail and online)	Colorado; District of Columbia; Illinois; Indiana; Iowa; Nevada; New Hampshire; New Jersey; Oregon; Pennsylvania; Rhode Island; and West Virginia
	Jurisdictions offering fully legalized and regulated sports betting (retail only)	Arkansas; Delaware; Michigan; Mississippi; Montana; New Mexico; and New York
	Jurisdictions that passed legislation but launch date pending	North Carolina; Tennessee; Virginia; and Washington
	Jurisdictions with legislation pending	Louisiana; Maryland; Massachusetts; Ohio; and South Dakota

 

U.S. Jurisdictions where theScore Bet Currently Operates

 

New Jersey

 

In New Jersey, the provision of online
gaming, sports betting and other aspects of casino gaming are subject to the requirements of the New Jersey Casino Control Act
(the “NJ Act”) and the regulations promulgated thereunder. Under the sports wagering laws in New Jersey, third-party
companies, such as theScore Bet, may provide services to casino and racetrack licensees to facilitate online/mobile sports wagering,
including website hosting. Such service providers must obtain a casino service industry enterprise (a “CSIE”)
license. The New Jersey Division of Gaming Enforcement (the “NJ DGE”) is responsible for investigating all license
applications, issuing such required licenses and approvals, and prosecuting violations of the NJ Act.

 

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theScore Bet is authorized to provide sports
wagering services in New Jersey by the NJ DGE, via a market access agreement with Darby Development LLC, the operator of Monmouth
Park Racetrack, (“Monmouth Park”), a licensed racetrack in the State of New Jersey. The New Jersey Racing Commission
(“Racing Commission”) issued a sports wagering license to Monmouth Park on June 13, 2018. Due to the length
of investigative time prior to issuing of a plenary CSIE license, the New Jersey regulations allow a CSIE applicant to petition
the NJ DGE for authorization to conduct business, including sports wagering operations, prior to the issuance of a license at the
discretion of the NJ DGE and subject to certain conditions, including the filing of a complete application. On May 14, 2019,
theScore Bet submitted its application to the NJ DGE for a CSIE license. In addition to the application for theScore Bet, separate
application forms were submitted to the NJ DGE for various entities holding ownership interests in theScore Bet, including theScore
as well as for individuals affiliated with and those entities holding a beneficial ownership interest of 5% or more in theScore.

 

The NJ DGE deemed these applications complete
on June 24, 2019 and thereafter the NJ DGE conducted a preliminary review of theScore Bet’s suitability and that of
its qualifiers. On August 24, 2019, the NJ DGE issued an order authorizing theScore Bet to commence permanent sports wagering
operations, while the NJ DGE completes its investigation of theScore Bet and its qualifiers. Those qualifiers include theScore’s
directors, officers, key employees and certain investors of 5% or more, unless otherwise waived from such qualification requirements.
If the NJ DGE were to find such a person or investor unsuitable, theScore would be required to sever its relationship with that
person or the investor and may be required to dispose of his, her or its interest in theScore. The NJ DGE may conduct investigations
into the conduct or associations of our directors, officers, key employees or investors to ensure compliance with applicable standards
set for in the NJ Act.

 

The NJ DGE has input into our operations,
including the types of sports wagers and promotions we can offer to New Jersey patrons. The NJ DGE may also levy substantial fines
against or seize our assets or the people involved in violating gaming laws or regulations. To date we have demonstrated suitability
to obtain and have obtained all NJ DGE licenses, registrations, permits and approvals necessary for us to operate our existing
sports wagering operations within the state of New Jersey.

 

Indiana

 

theScore Bet is classified by the Indiana
Gaming Commission (“IGC”) as a “sports wagering vendor” (“Vendor”) and has received
its “temporary vendor license” (the “Temporary License”). As part of the Temporary License application
process, theScore Bet submitted all level-one individual/occupational license applications required by the IGC. Those applications,
along with theScore Bet’s corporate Vendor application, were deemed complete and preliminarily acceptable to the IGC, pending
completion of a full investigation (which will conclude in due course). In addition, theScore Bet has also (i) secured the
requisite occupational licensing approvals for applicable “lower-level” employees; (ii) received IGC approval
of all internal controls and house rules associated with theScore Bet’s Indiana mobile application; and (iii) demonstrated
the product to the satisfaction of IGC staff, including functionality of geolocation technology. Certain third-party providers
of services to theScore Bet were also required to complete various licensing and/or registration requirements with the IGC. theScore
Bet received authorization from the IGC to commence its mobile sports betting services in Indiana on September 17, 2020. Full
investigations related to theScore Bet’s corporate Vendor application and level-one occupational applications are continuing,
individual interviews will be conducted, and permanent licenses may be awarded by the IGC at a future date.

 

theScore Bet is obligated to report to
the IGC any transfers of 5% or greater beneficial ownership in theScore Bet. In order to determine the necessary licensing requirements
for a new investor, the IGC must receive and review information related to the transaction and provide to such new investor a determination
as to which of its corporate entities / individuals will be required to file a license application and which satisfy the definition
of “institutional investor” at 68 IAC 1-1-52 and may therefore be eligible to complete an institutional investor waiver
application rather than engage in the full licensing process. This determination is subject to the discretion of the IGC staff.

 

theScore Bet’s Temporary and/or permanent
Vendor license, as well as any occupational licenses held by key individuals, may be subject to disciplinary action up to and including
revocation (or theScore Bet may not receive its permanent Vendor license) if theScore Bet violates any of the Indiana Emergency
Sports Wagering Rules (the “Emergency Rules”) or related statutes or IGC directives. Either the Vendor
license or individual occupational licenses may be subject to disciplinary action or revocation at the discretion of the IGC for
reasons including, but not limited to, failure to update the IGC with information initially disclosed as part of the application
process; failure to comply with reporting requirements; and/or failure to comply with any other ongoing requirements related to
license fee payments, renewals, and all other requirements detailed in the Emergency Rules.

 

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theScore Bet’s Vendor license, individual
level-one occupational licenses, and all level-two occupational licenses are to be renewed on an annual basis, including payment
of annual renewal fees. The Vendor license is also contingent on theScore Bet maintaining its market access agreement with Ameristar
East Chicago, LLC (a subsidiary of Penn National Gaming Inc.), as Indiana law requires Vendors to remain in contract with a casino
partner to maintain a Vendor license through the IGC.

 

Colorado

 

theScore Bet holds an “internet sports
betting operator” license which was approved by the Colorado Limited Gaming Control Commission (“Commission”)
and issued by the Colorado Division of Gaming (“Division”). The internet sports betting operator license allows
theScore Bet to offer sports wagering on theScore Bet app in Colorado. Once the Division completes its full investigation and the
Commission approves the Division’s findings, this temporary sports betting license will be converted to a permanent license.

 

Colorado allows sports betting to be conducted
by a licensed internet sports betting operator on behalf of a Colorado casino holding a sports betting “master license.”
theScore Bet has an agreement with a master licensee – The Gilpin Casino, located in Black Hawk, Colorado (“The
Gilpin”) – to conduct online sports wagering on behalf of The Gilpin.

 

Further, Colorado requires operational
approval of an internet sports betting operator’s “sports betting system,” which includes the interactive components,
software, and associated equipment that comprise the operator’s sports betting platform. Colorado also requires approval
of the “internal control standards” that govern the internet sports betting operator’s sports betting system
and that demonstrate how the internet sports betting operator will abide by, among other requirements, ensuring geofencing restrictions,
prohibiting excluded participants, managing participant wagering accounts, and establishing house rules. theScore Bet has received
operational approval of both its sports betting system and internal control standards from the Division.

 

In Colorado, all sports betting licenses
expire two years after issuance but may be renewed upon the filing and approval of a renewal application by the Commission. Renewal
applications for internet sports betting operators and vendor majors must be received by the Division no later than 120 days before
the expiration of the current license. Colorado sports betting licensees have an ongoing obligation to disclose any changes in
board directors or corporate officers, as well as other key individuals who oversee the licensee’s sports betting operations.
Licensees must also disclose any person who acquires “any voting or controlling interest of ten percent or more,” and
any person who acquires “any nonvoting or passive ownership interest of twenty-five percent or more.” In addition,
licensees must disclose changes in their corporate structure, including all parent, holding, intermediary, and subsidiary companies
of the licensee.

 

The Commission has broad powers to suspend,
revoke, or not renew sports betting licenses. Licenses shall be revoked if a licensee has: provided misleading information to the
Division or to the Commission; been convicted of a felony or any gambling-related offense; become a person whose character is no
longer consistent with the protection of the public interest and trust in sports betting; or intentionally refused to pay a prize
to a person entitled to receive the price. Licenses may be suspended, revoked, or not renewed if a licensee: is delinquent in remitting
money rightfully owed to players, contractors, or others involved in sports betting; fails to ensure the trustworthy operation
of sports betting; or commits any intentional violation of any sports betting law, regulation, or other rule or guidance.

 

Canadian Gaming Regulatory Landscape

 

Canada’s federal Criminal Code (the
 “Code”) makes it an offence for any entity other than a provincial government to offer sports-betting services
to residents of Canada. The Code contains an exception that allows each provincial government to ‘conduct and manage’
gambling operations, including sports betting, within its jurisdiction. The provinces responded to this exception by establishing
purpose-specific corporations (typically lottery corporations) to conduct and manage gaming on behalf of the applicable provincial
government. Lottery corporations are, for all intents and purposes, the monopoly providers of legal gaming, including sports-betting,
in their respective provinces.

 

Notwithstanding that broad exception for
provincial operations, the Code maintains a blanket prohibition on certain betting activities, the most important of which is the
taking of bets on a single sporting event. As this prohibition extends to provincial governments, there is currently no legal
avenue for betting on single sports events.

 

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In April 2019, Ontario’s provincial
government commenced consultations with key industry stakeholders to establish a more competitive market for online legal gambling,
including sports betting. It is now anticipated that within the next two fiscal quarters, the Ontario government will introduce
a new legal structure for online gaming that will be based on a license, tax and regulate model. This will permit companies like
ours to provide sports betting and other gaming services directly to Ontario residents. Further, the general consensus of Canadian
regulatory and industry groups is that once Ontario introduces this new model for online gaming, all of the other provinces and
territories will follow suit. Assuming this does occur, there is the prospect of an open online gaming market throughout Canada
within the next two to three years.

 

A related development is the possibility
that the Safe and Regulated Sports Betting Act (Bill C-218), a Private Members Bill which called for the legalization of taking
bets on a single sporting event, will be introduced in Parliament this quarter, and then, because of the bill’s all-party
approval, move through the House of Commons, into and through committee and into the Senate within the next six months. If the
bill does proceed through the House of Commons and the Senate without significant objections, it will dovetail with the “privatizing”
of online gaming by the provinces, permitting our company to offer betting on single sports events to residents of Canada.

 

risk
factors

 

An investment in our securities involves
risks and uncertainties. In addition to the other information contained in this AIF, investors should carefully consider the risks
and uncertainties described below before investing in our securities. Additional risks and uncertainties not presently known to
us or that we currently consider immaterial also may impair business operations and cause the price of our securities to decline.
If any of the following risks actually occur, our business and prospects may be harmed, and our financial condition and results
of operations may suffer significantly. Some of the following statements are forward-looking and actual results may differ materially
from the results anticipated in these forward-looking statements. See “FORWARD-LOOKING INFORMATION AND FORWARD-LOOKING
STATEMENTS” herein.

 

Risks Related to Our Business and Industry

 

Regulation of Gaming Industry

 

While gaming, iGaming and sports betting
regulations are a creature of state law and vary from state to state, in general there are a number of common principles that underline
the concept of gaming regulation. Participation in the gaming industry is considered to be a privilege, not a right, and thus those
who seek to participate must submit themselves to licensure as required by the state regulatory body. In this regard, gaming licenses
do not create or entail a property right and such licenses cannot be sold or transferred (although ownership interests in license
holders may be transferred subject to regulatory approval). A good example of this is the preliminary provisions to New Jersey’s
Casino Control Act, which provides that a key element of regulation of gaming is “public confidence and trust in the credibility
and integrity of the regulatory process and of casino operations,” and therefore the model is to extend “strict State
regulation to all persons, locations, practices, and associations related to the operation of licensed casino enterprises and all
related service industries.” Gaming legislation in virtually all jurisdictions contain substantively similar provisions.

 

Our company and our officers, directors,
major shareholders, key employees, and business partners are generally subject to the sports betting and gaming laws and regulations
of the jurisdictions in which we conduct or will conduct business. In addition, we are subject to the general laws and regulations
that apply to all online, digital and e-commerce businesses, such as those related to privacy and personal information, data security,
tax, and consumer protection. The laws and regulations vary in each jurisdiction and future legislative and regulatory action,
court decisions, and/or other governmental action, which could be affected by, among other things, political pressures, attitudes
and climates, may have a material impact on our operations and financial outcomes.

 

    18

     

    

 

The jurisdictions where we operate (as
described above under “THE BUSINESS OF THESCORE – U.S. Gaming Regulatory Landscape”), or will operate,
each have their own regulatory framework. More often than not these frameworks will require us to receive a license. Each jurisdiction
will normally require us to make detailed and extensive disclosures as to our beneficial ownership, our source of funds, the probity
and integrity of certain persons associated with our business, our management competence, structure, and business plans, our proposed
geographical territories of operation, and our ability to operate a gaming business in a socially responsible manner in compliance
with regulation. Such jurisdictions will also impose ongoing reporting and disclosure obligations, both on a periodic and ad hoc
basis in response to material issues affecting the business. Our current and future gaming licenses or approvals in each jurisdiction
in which we operate or intend to operate are subject to our ongoing compliance with applicable laws, rules and regulations
in each such jurisdiction. There can be no assurance that we will be able to retain existing licenses or approvals or demonstrate
suitability to obtain new licenses or approvals. In addition, the loss of a license or approval in one jurisdiction could trigger
the loss of a license or approval or affect our eligibility for a license or approval in another jurisdiction. As we expand our
sports wagering operations, we may also have to meet additional suitability requirements and obtain additional licenses or approvals
from gaming authorities in such jurisdictions and we cannot be sure that we will be successful in this regard.

 

Our gaming-related technology will also
be subject to testing and certification by the regulators in the jurisdictions in which we operate or will operate. Such testing
and certification are generally designed to confirm matters such as the fairness of the gaming products offered by the business,
our ability to accurately generate settlement instructions, and recover from outages.

 

Any gaming license may be revoked, suspended,
or conditioned at any time. The loss of a gaming license in one jurisdiction could prompt the loss of a gaming license, or affect
our eligibility for such a license, in another jurisdiction. These potential losses of licenses would cause us to cease offering
some or all of our product offerings in the impacted jurisdiction(s). We may be unable to obtain or maintain all necessary registrations,
licenses, permits or approvals, and could incur fines or experience delays related to the licensing process, which could adversely
affect our operations. The process of determining suitability may be expensive and time-consuming. Delay or failure to obtain gaming
licenses in any jurisdiction may prevent us from offering our products in such jurisdiction, increasing our customer base and/or
generating revenues. A gaming regulatory body may refuse to issue or renew a gaming license if our company, or one of our directors,
officers, employees, major shareholders or business partners: (i) is considered to be a detriment to the integrity or lawful
conduct or management of gaming, (ii) no longer meets a licensing or registration requirement, (iii) has breached or
is in breach of a condition of licensure or registration or an operational agreement with a regulatory authority, (iv) has
made a material misrepresentation, omission or misstatement in an application for licensure or registration or in reply to an inquiry
by a person conducting an audit, investigation or inspection for a gaming regulatory authority, (v) has been refused a similar
gaming license in another jurisdiction, (vi) has held a similar gaming license in that province, state or other jurisdiction
which has been suspended, revoked or cancelled, or (vii) has been convicted of an offence, inside or outside of Canada or
the United States that calls into question the honesty or integrity of our company or any of our directors, officers, employees
or associates.

 

Furthermore, our product offerings must
be approved in most regulated jurisdictions in which they are offered; this process is not assured or guaranteed. It is a prolonged,
potentially extremely costly process to obtain these approvals. A developer and provider of online or mobile sports betting and
iGaming products may pursue corporate regulatory approval with regulators of a particular jurisdiction while it pursues technical
regulatory approval for its product offerings by that same jurisdiction. It is also possible that, after incurring significant
expenses and dedicating substantial time and effort towards such regulatory approvals, we may not obtain such approvals. In the
event we fail to obtain the necessary gaming license in a given jurisdiction, we would likely be prohibited from operating in that
particular jurisdiction altogether. If we fail to seek, do not receive, or receive a suspension or revocation of a license in a
particular jurisdiction for our product offerings (including any related technology and software), then we cannot operate in that
jurisdiction and our gaming licenses in other jurisdictions may be impacted. We may not be able to obtain all necessary gaming
licenses in a timely manner, or at all. These delays in regulatory approvals or failure to obtain such approvals may also serve
as a barrier to entry to the market for our product offerings. Our operations and future prospects will be affected if we are unable
to overcome these barriers to entry.

 

    19

     

    

 

To the extent new sports betting and/or
iGaming jurisdictions are established or expanded, we cannot guarantee we will be successful in penetrating such new jurisdictions
or expanding our business or customer base in line with the growth of existing jurisdictions. As we directly or indirectly enter
into new markets, we may encounter legal, regulatory, and political challenges that are difficult or impossible to foresee and
which could result in an unforeseen adverse impact on planned revenues or costs associated with the new market opportunity. In
the event we are unable to effectively develop and operate directly or indirectly within these new markets or if our competitors
are able to successfully penetrate geographic markets that we cannot access or where we face other restrictions, then our business,
operating results, and financial condition could be impaired. Our failure to obtain or maintain the necessary regulatory approvals
in jurisdictions, whether individually or collectively, would have a material adverse effect on our business, results of operations,
financial condition and prospects. We may need to be licensed, obtain approvals of our products and/or seek licensure of our officers,
directors, major shareholders, key employees or business partners to expand into new jurisdictions. This is a costly and time-consuming
process. Any delays in obtaining or difficulty in maintaining regulatory approvals needed for expansion within existing markets
or into new jurisdictions can negatively affect our opportunities for growth. This includes the growth of our customer base, or
delay in our ability to recognize revenue from our product offerings in any such jurisdictions.

 

Future legislative and regulatory action,
and court decisions or other governmental action, may have a material impact on our operations and financial results. There can
be no assurance that legally enforceable and prohibiting legislation will not be proposed and passed in jurisdictions relevant
or potentially relevant to our business to prohibit, legislate, or regulate various aspects of the Internet, e-commerce, payment
processing, or the online and mobile wagering and interactive entertainment industries (or that existing laws in those jurisdictions
will not be interpreted negatively). Moreover, legislation may require us to pay certain fees in order to operate a sports betting
and iGaming-related business. Such fees may include integrity fees paid to sports leagues and/or fees required to obtain official
sports-wagering related data. Compliance with any such legislation may have a material adverse effect on our business, results
of operations, financial condition and prospects.

 

The success of online and mobile sports
betting and our product offerings may be also be affected by future regulatory and marketplace developments related to mobile platforms
and application storefronts, social networks, advertising networks, payment processing and banking, data and information privacy,
cloud and other infrastructure hosting, and other regulatory and marketplace developments that we are unable to predict and are
beyond our control. As a result, our future operating results relating to our sports betting products are difficult to anticipate,
and we cannot provide assurance that our product offerings will grow as expected or with success in the long term. Adverse developments
in these areas may have a material adverse effect on our business, results of operations, financial condition and prospects.

 

Additionally, our ability to successfully
pursue our sports betting and iGaming strategy in the United States and Canada depends on the laws and regulations relating to
wagering through interactive channels both federally and in individual states and provinces in each of these countries, respectively.
There is considerable debate and opposition to online and interactive real-money gaming in the United States and Canada and there
can be no assurance that this opposition will not succeed in preventing the legalization of online and mobile sports betting and
iGaming in jurisdictions where it is presently prohibited, including Canada and certain states in the United States, thereby prohibiting,
or limiting the expansion of such activities where it is currently permitted or causing the repeal of legalized online or mobile
sports betting and/or iGaming in any jurisdiction. Any successful effort to limit the expansion of or prohibit legalized online
or mobile sports betting and/or iGaming could have an adverse effect on our results of operations, cash flows and financial condition.
Combatting such efforts to curtail expansion of, or limit or prohibit, legalized online and mobile sports betting and/or iGaming
can again be time-consuming and can be extremely costly.

 

In the United States, the Unlawful Internet
Gambling Enforcement Act of 2006 (“UIGEA”) prohibits among other things, the acceptance by a business of a wager
by means of the Internet where such wager is prohibited by any federal or state law where initiated, received or otherwise made.
Under UIGEA severe criminal and civil sanctions may be imposed on the owners and operators of such systems and on financial institutions
that process wagering transactions. The law contains a safe harbour for wagers placed within a single state (disregarding intermediate
routing of the transmission) where the method of placing the wager and receiving the wager is authorized by that state’s
law, provided the underlying regulations establish appropriate age and location verification.

 

The Illegal Gambling Business Act (“IGBA”),
makes it a crime to conduct, finance, manage, supervise, direct or own all or part of an “illegal gambling business”
and the Travel Act makes it a crime to use the mail or any facility in interstate commerce with the intent to “distribute
the proceeds of any unlawful activity,” or “otherwise promote, manage, establish, carry on, or facilitate the promotion,
management, establishment, or carrying on, of any unlawful activity.” For there to be a violation of either the IGBA or the
Travel Act there must be a violation of underlying state law.

 

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Until 2011, there was uncertainty as to
whether the Federal Wire Act of 1961 (the “Wire Act”) prohibited states from conducting intrastate lottery transactions
via the Internet if such transactions crossed state lines. In late 2011, the Office of Legal Counsel (the “OLC”)
of the Department of Justice (“DOJ”) issued an opinion which concluded that the prohibitions of the Wire Act
were limited to sports gambling and thus did not apply to state lotteries at all (the “2011 DOJ opinion”). Following
the issuance of the 2011 DOJ opinion, within the past few years, state-authorized Internet casino gaming has been launched in Delaware,
New Jersey, Pennsylvania and West Virginia, and state authorized online poker has been launched in Nevada.

 

In 2018, at the request of the Criminal
Division, the OLC reconsidered the 2011 DOJ opinion’s conclusion that the Wire Act was limited to sports gambling. On January 14,
2019, the OLC published a legal opinion dated November 2, 2018 (the “2018 DOJ opinion”), which concluded
that the 2011 DOJ opinion had incorrectly interpreted the Wire Act. In the 2018 DOJ opinion, the OLC concluded that the restrictions
on the transmission in interstate or foreign commerce of bets and wagers in the Wire Act were not limited to sports gambling but
instead applied to all bets and wagers. The OLC also found that the enactment of the UIGEA described above did not modify the scope
of the Wire Act. The OLC acknowledged that its conclusion in the 2018 DOJ opinion, which was contrary to the 2011 DOJ opinion,
will make it more likely that the executive branch’s view of the law will be tested in the courts. The
United States District Court for the District of New Hampshire disagreed with the 2018 DOJ Opinion. In an opinion dated June 3,
2019, in New Hampshire Lottery Commission, et. al. vs. William Barr, AG, Case No. 1:19-cv-00163, Opinion
No. 2019 DNH 091P, p. 60, United States District Judge Barbadoro held that § 1084(a) of the Federal Wire Act “applies
only to transmissions related to bets or wagers on a sporting event or contest” and granted summary judgment to the Plaintiff
(who effectively challenged the position taken in the 2018 DOJ Opinion). While the court stated that the decision was limited to
the parties, the DOJ then issued an additional statement providing that it is reviewing the court’s opinion and that the
forbearance period set forth by way of memorandum issued subsequent to the issuance of the 2018 DOJ Opinion dated February 28,
2019 is extended until December 31, 2019 or 60 days after the entry of a final judgement in the New Hampshire litigation,
whichever is later. The DOJ filed a Notice of Appeal to the United States Court of Appeals for the First Circuit on August 16,
2019 appealing the court’s June 3, 2019 opinion as well as the court’s June 20, 2019 judgment in favour of
the Plaintiff.  That appeal is currently pending. At this time, we are unable to determine whether the 2018 DOJ opinion
will be upheld by the courts, or what impact it will have on us or our customers.

 

If we fail to comply with any existing
or future laws, rules, regulations, approvals, registrations, permits, licenses or other requirements, regulators may take action
against us. Such action may include fines, the conditioning, suspension or revocation of approvals, registrations, permits or licenses,
and other disciplinary action. If we fail to adequately adjust to any such potential changes, our business, results of operations
or financial condition could also be harmed.

 

Continued Support of Banks and Payment Processors

 

We rely on payment processing and banking
providers to facilitate the movement of funds between us and our customer base for our sports betting platform. Anything that could
interfere with or otherwise harm our relationships with payment and banking service providers could have a material adverse effect
on our business, results of operations, financial condition and prospects. Our ability to accept payment from our customers or
facilitate withdrawals by them may be restricted by any introduction of legislation or regulations restricting financial transactions
with online or mobile sports betting operators or prohibiting the use of credit cards and other banking instruments for online
or mobile sports betting transactions, or any other increase in the stringency of regulation of financial transactions, whether
in general or in relation to the gambling industry in particular.

 

Stricter anti-money laundering regulations
may also affect the quickness and accessibility of payment processing systems, resulting in added inconvenience to our customers.
Card issuers and acquirers may dictate how transactions and products need to be coded and treated which could also make an impact
on acceptance rates. Card issuers, acquirers, payment processors and banks may also cease to process transactions relating to the
online or mobile sports betting industry as a whole or certain operators, such as ourselves. This could be due to reputational
and/or regulatory reasons or in light of increased compliance standards of such third parties that seek to limit their business
relationships with certain industry sectors considered as “high risk”. It may also result in customers being dissuaded
from accessing our product offerings if they cannot use a preferred payment option, or the quality or the speed of the supply is
not suitable or accessible to the customers. Any such developments may have a material adverse effect on our business, results
of operations, financial condition and prospects.

 

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Losses with Respect to Individual Events or Betting Outcomes

 

Sports betting involves betting where winnings
are paid on the basis of the stake placed and the odds quoted. Odds are determined with the objective of providing an average return
to the bookmaker over a large number of events and therefore, over the long term. In contrast, there can be significant variation
in gross win percentage event-by-event and day-by-day. We have systems and controls intended to reduce the risk of daily losses
occurring on a gross-win basis, but there can be no assurance that these will be effective in reducing our exposure. As a result,
in the short term, there is less certainty of generating a positive gross win, and we may experience significant losses with regard
to individual events or betting outcomes, specifically if large, individual bets are placed on an event or betting outcome or series
of events or betting outcomes. Odds compilers and risk managers are capable of human error, thus, even noting that a number of
betting products are subject to capped pay-outs, significant volatility can occur. Any significant losses on a gross-win basis
could have a material adverse effect on our business, results of operations, financial condition and prospects.

 

Sports betting can also fluctuate due to
seasonal trends and other factors. Our operations, and thus our financial performance, are also dependent on the seasonal variations
dictated by various sports calendars, which will have an effect on our financial performance.

 

Competition in the Online and Mobile Sports Betting and
Media Industry

 

Our current and potential competitors in
mobile sports betting include Barstool Sports, BetMGM, Bet 365, Caesars, DraftKings, FanDuel, FOX Bet, PointsBet, and William Hill,
and other online and mobile gaming operators. Certain competitors have more established relationships and greater financial resources
and they can use their resources against us in a variety of competitive ways, including by making acquisitions, investing aggressively
in research and development, and competing aggressively for strategic partners, advertisers, employees, technologies, digital media
rights, websites and applications. These competitors also may spend more money and time on developing and testing products and
services, undertake more extensive marketing campaigns, adopt more aggressive pricing or promotional policies, or otherwise develop
more commercially successful products or services than our own, which could negatively impact our business by affecting our ability
to attract and retain existing and new sports betting customers.

 

Our current and potential competitors in
digital sports media include large and established companies, such as CBS Sports, ESPN, Fox Sports, SB Nation, Sportsnet, TSN,
Turner Sports, and Yahoo Sports, the digital media divisions of major sports leagues, independent fantasy sports companies, other
digital media companies that cover esports, as well as start-up companies. The digital media divisions of major sports leagues
have more access to proprietary content that may not be made available to us. Emerging start-ups may be able to innovate and provide
products and services faster than we can. If competitors are more successful than us in developing compelling products and engaging
content or in attracting and retaining users, advertisers and digital media rights, our revenues and growth rates and the value
of the capitalized digital assets could be negatively affected. There is no assurance that we will be able to maintain our position
in the marketplace.

 

We must continually introduce and successfully
market new and innovative technologies, product offerings and product enhancements to remain competitive and effectively procure
customer demand, acceptance, and engagement as a result of the intense industry competition, along with other factors. The process
of developing new product offerings and systems is unclear and complexed, and new product offerings may not be well received by
customers. Although we intend to continue investing in research and development, there can be no assurance that such investments
will lead to successful new technologies or timely new product offerings or enhanced existing product offerings with product life
cycles long enough to be successful. We may not recover the substantial up-front costs of developing and marketing new technologies
and product offerings or recover the opportunity cost of diverting management and financial resources away from other technologies
and product offerings.

 

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Regulatory Investigations

 

We have, and may in future, receive formal
and informal inquiries from government authorities and regulators from time to time, including securities authorities, tax authorities,
privacy commissions and gaming regulators, regarding our compliance with laws and other matters. We expect to continue to be the
subject of investigations and audits in the future as we continue to grow and expand our gaming operations. Violation of existing
or future regulatory orders or consent decrees could subject us to substantial monetary fines and other penalties providing a negative
effect on our financial condition and results of operations. In addition, there is a possibility that future orders issued by,
or inquiries or enforcement actions initiated by, government or regulatory authorities may cause us to incur substantial costs,
expose us to unanticipated civil and criminal liability or penalties, or require us to change our business practices that may have
materially adverse effects on our business.

 

Market Access Limitations

 

The prevailing trend in the United States
is for states to require sports betting to be conducted by or through an existing licensed casino or racetrack. In such states
where mobile or internet-based sports betting is legal, each casino or racetrack often is permitted to offer sports betting through
a limited number of branded websites, known as skins. The number of skins each casino or racetrack is permitted to offer varies
by state and is dictated by law, regulation or policy. Casinos and racetracks have, accordingly, begun to enter into agreements
to allow third-party sports betting operators to operate skins through the casino’s or racetrack’s license. Further,
certain of these agreements provide for a sports betting operator to obtain “second skin” or “third skin”
access, meaning that another operator has the right to operate the first, and potentially the second, skin of a casino or racetrack,
to the extent permitted by law, regulation or policy. Consequently, if a state does not permit casinos or racetracks to have more
than one skin (or more than two skins as the case may be), an operator’s right to utilize a second (or third skin as the
case may be) is rendered meaningless in such state. We have entered into multiple agreements allowing us market access via the
right to operate specific skins. Certain of these agreements contemplate us receiving second or third skins. Accordingly, should
states not permit our casino or racetrack partners to offer sports betting through an adequate number of skins, we would not have
access to such markets (unless we enter into additional agreements for market access in such states). Our inability to gain access
to offer mobile and internet sports betting in states as such states legalize sports betting could have a material adverse effect
on our business, results of operations, financial condition and prospects.

 

Further, a state may change its law, regulation
or policy framework to alter the number of skins a casino or racetrack is permitted to offer. An increase to the number of skins
could result in increased competition within such state, while a decrease to the number of skins a casino or racetrack may offer
could reduce or eliminate the ability for us to gain access to operate in such state. Such changes could have a material adverse
effect on our business, results of operations, financial condition and prospects.

 

Shareholders Subject to Extensive Governmental Regulation

 

A number of jurisdictions’ gaming
laws may require any of our shareholders to file an application, be investigated, and qualify or have their suitability determined
by gaming authorities. Gaming authorities have very broad discretion when ruling on whether an applicant should be deemed suitable
or not. Subject to certain administrative proceeding requirements, the gaming regulators have the authority to deny any application
or limit, condition, revoke or suspend any gaming license, or fine any person licensed, registered or found suitable or approved,
for any cause deemed reasonable by the gaming authorities.

 

Any person found unsuitable by a gaming
authority may not hold directly or indirectly ownership of any voting security or the beneficial or record ownership of any non-voting
security or any debt security of any company that is licensed with the relevant gaming authority beyond the time prescribed by
the relevant gaming authority. A finding of unsuitability by a particular gaming authority impacts that person’s ability
to associate or affiliate with gaming licensees in that specific jurisdiction and could impact the person’s ability to associate
or affiliate with gaming license holders in other jurisdictions.

 

Many jurisdictions also require any person
who obtains a beneficial ownership of more than a certain percentage, typically 5%, of voting securities of a publicly traded gaming
company or parent company thereof and, in some jurisdictions, non-voting securities to report the acquisition to gaming authorities.
Gaming authorities may require such holders to apply for qualification or a finding of suitability, subject to limited exceptions
in certain jurisdictions for “institutional investors” that hold a company’s voting securities for investment
purposes only. Other jurisdictions may also limit the number of gaming licenses with which a person may be associated.

 

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Our corporate articles and bylaws include
certain provisions to ensure that we comply with applicable gaming regulations. These provisions provide, among other things, that
we shall have the right, subject to the conditions set out in our articles and bylaws, to repurchase securities shares held by
an unsuitable person. Such repurchase rights may negatively affect the trading price and/or liquidity of our securities.

 

Industry Social Responsibility Concerns

 

Public opinion can meaningfully affect
sports betting regulation. A negative shift in the perception of sports betting by the public, by politicians, or by others could
impact future legislation or regulation in different jurisdictions. Moreover, such a shift could cause jurisdictions to abandon
proposals to legalize sports betting, thereby limiting the number of new jurisdictions into which we could expand. Negative public
perception can also lead to new, harsher restrictions on sports betting, including restrictions on marketing, betting product offerings,
other restrictions on our gaming operations and increased compliance costs. Such changes could have a material adverse effect on
our business, results of operations, financial condition and prospects.

 

Digital Sports Media Industry Reliant on Mobile Advertising

 

We have historically derived all of the
revenues in digital sports media from sales of advertising and sponsorship. The digital sports media industry is a relatively new
and rapidly evolving industry and as such it is difficult to predict the prospects for growth. There is no assurance that advertisers
will continue to increase their purchases of online and mobile advertising, that the supply of advertising inventory will not exceed
demand or that smartphone penetration in the United States and Canada will continue to grow. If the industry grows more slowly
than anticipated or our existing products and services lose, or our new products and services fail to achieve, market acceptance,
we may be unable to achieve our strategic objectives, which could have a material adverse effect on our prospects, business, financial
condition or results of operations.

 

Recent Expansion of Sports Betting Operations

 

Our sports betting operations compete in
a rapidly evolving and highly competitive market against an increasing number of competitors. In order to support our revenue-generation,
we have entered into certain market access agreements with certain other licensed gaming operators and we may not be able to do
so on terms that are favourable to us. The success of our proposed sports betting operations is dependent on a number of additional
factors that are beyond our control, including the ultimate tax rates and license fees charged by jurisdictions across the United
States; our ability to gain market share in a newly developing market; the timeliness and the technological and popular viability
of our products, our ability to compete with new entrants in the market; changes in consumer demographics and public tastes and
preferences; and the availability and popularity of other forms of entertainment. There can be no assurance that we will be able
to compete effectively or that our expansion will be successful and generate sufficient returns on our investment.

 

Historical Losses and Negative Operating Cash Flows

 

We have a history of operating losses and
we can be expected to generate continued operating losses and negative cash flows in the future while we carry out our current
business plan to further develop and expand our businesses in digital sports media and mobile sports betting. We have made significant
up-front investments in research and development, sales and marketing, market access for mobile sports betting and general and
administrative expenses in order to rapidly develop and expand our business. We are currently incurring expenditures related to
our operations that have generated negative operating cash flows from operations. The successful development and commercialization
of these operations will depend on a number of significant financial, logistical, technical, marketing, legal, regulatory, competitive,
economic and other factors, the outcome of which cannot be predicted. In addition, we have a limited operating history with respect
to our newer product offerings such as our sports betting products, which makes it difficult to forecast future results. There
is no guarantee that such operations will become profitable or produce positive cash flow or that we will be successful in generating
significant revenues in the future or at all. While we can utilize cash and cash equivalents to fund our operating and development
expenditures, we do not have access to material amounts under committed credit facilities or other committed sources of funding.
Our inability to ultimately generate sufficient revenues to become profitable and have positive cash flows could have a material
adverse effect on our prospects, business, financial condition, results of operations or overall viability as an operating business.

 

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Liquidity Risk

 

Liquidity risk is the risk that we will
not be able to meet our financial obligations as they fall due. Our objective in managing liquidity is to ensure we will always
have sufficient liquidity to meet our liabilities when due, under both normal and distressed conditions, without incurring unacceptable
losses or risking damage to our reputation. There is no assurance that our approach to managing liquidity will prove successful
and should we be unable to meet our liabilities when due it could have a material adverse effect on our prospects, business, financial
condition and results of operations.

 

COVID-19

 

The current COVID-19 pandemic crisis is
evolving rapidly and could have a material adverse impact on our business, affairs, operations, results of operations, financial
condition, liquidity, availability of credit and foreign exchange exposure. COVID-19 is altering business and consumer activity
in affected areas and beyond. The global response to the COVID-19 outbreak has resulted in, among other things, border closures,
severe travel restrictions, the temporary shut-down of non-essential services and extreme fluctuations in financial and commodity
markets. Additional measures may be implemented by one or more governments in jurisdictions where we operate. Labour shortages
due to illness, company or government-imposed isolation programs, or restrictions on the movement of personnel could result in
a reduction or cessation of all or a portion of our operations.

 

The extent to which the COVID-19 pandemic
may impact our business and activities will depend on future developments, which are highly uncertain and cannot be predicted with
confidence, such as the spread of the disease, the duration of the outbreak, new information which may emerge concerning the spread
and severity of the coronavirus, actions taken by Canadian and U.S. authorities to manage this pandemic, the postponement, suspension,
cancellation or rescheduling of sports leagues and sporting events, the impact of the pandemic on consumer and advertiser spending,
and the ability or willingness of suppliers and vendors to provide products and services. If the coronavirus continues to spread
at the current pace, disruption to consumer spending and trade could trigger a global recession.

 

The actual and threatened spread of COVID-19
globally could also have a material adverse effect on the regional economies in which we operate, could continue to negatively
impact stock markets, including the trading price of our securities, could cause continued interest rate volatility and movements
and could adversely impact our ability to raise capital.

 

Any of these developments, and others,
could have a material adverse effect on our business, affairs, operations, results of operations, financial condition, liquidity,
availability of credit and foreign exchange exposure. In addition, because of the severity and global nature of the COVID-19 pandemic,
it is possible that estimates in our financial statements could change in the near term and the effect of any such changes could
be material, which could result in, among other things, an impairment of non-current assets and a change in the expected credit
losses on accounts receivable.

 

Cancellation, Postponement or Curtailing of Sporting and
Other Events

 

We and our suppliers have operations in,
and our customers reside in, locations subject to natural occurrences such as natural crises, severe weather and other geological
events, including, without limitation, pandemics, epidemics, outbreaks of infectious disease, hurricanes, earthquakes, floods,
blizzards, wild fires or tsunamis that could disrupt operations and gameplay. Our betting business is affected by the scheduling
and live broadcasting of significant sporting and other events. Disruptions to the scheduling and broadcasting of those events,
including disruptions resulting from any of the aforementioned natural occurrences, may have a material impact on our business,
results of operations or financial condition for the relevant period. In some instances, the scheduling of major sporting and other
events occurs seasonally, or at regular but infrequent intervals.

 

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The cancellation, postponement or curtailment
of significant sporting or other events, for example due to adverse weather conditions, terrorist acts or other acts of war or
hostility or the outbreak of infectious diseases, pandemics, or cancellation of, disruption to, postponement of such sporting events,
for example due to contractual disputes, technological or communication problems, could materially adversely affect our business,
results of operations, financial condition and prospects.

 

Reductions in Discretionary Consumer Spending

 

Our net revenues are dependent, in part,
upon the volume and spending levels of customers through our product and/or service offerings, and as such, our business has been
adversely impacted by economic downturns in the past. Decreases in discretionary consumer spending brought about by weakened general
economic conditions such as, but not limited to, lackluster recoveries from recessions, high unemployment levels, higher income
taxes, low levels of consumer confidence, weakness in the housing market, cultural and demographic changes, high fuel or other
transportation costs and increased stock market volatility may negatively impact our revenues and operating cash flow.

 

Dependence on Key Suppliers

 

In the operation of our business we depend
on a number of key suppliers, including (i) third-party web hosting and other technology service providers to enable us to
operate our products and services; (ii) sports data, content and odds providers who provide a significant portion of the content
for our mobile applications and websites, (iii) our exclusive sportsbook platform provider who provides certain backend platform
technology and operational services which are integral to the operation of our sports betting offering in the United States; and
(iv) our market access partners, who provide us with the right to operate our sports betting solution in applicable jurisdictions.

 

If any of these suppliers elect not to
renew their contracts at the expiration of their current terms, cease operations or do not meet their contractual obligations or
cease to provide their services for any reason, and if we cannot find suitable alternate suppliers in a timely manner (should such
suitable alternate suppliers exist), we may be unable to operate our sports betting platform. Our inability to retain such third-party
suppliers or find suitable alternate suppliers in a timely manner could lead to significant costs and disruptions that could reduce
our revenue, harm our business reputation and have a material adverse effect on our prospects, business, financial condition and
results of operations.

 

We also rely on application storefronts
operated by the applicable operating system manufacturers, along with selected third-party application storefronts to distribute
our mobile sports applications and mobile sports betting applications to consumers. If these operating system manufacturers cease
to make our mobile sports or mobile sports betting applications available in their application storefronts, will only make such
mobile applications available on terms unacceptable to us, or otherwise prohibit or restrict the distribution of our mobile applications
on their application storefronts, this could prevent the broad distribution of our products and services and could have a material
adverse effect on our prospects, business, financial condition and results of operations. Google currently prohibits the distribution
of mobile sports betting applications through their Google Play storefront outside of the United Kingdom, Ireland and France,
and imposes certain restrictions on gambling-related app integrations and advertising, which could limit the promotion and/or distribution
of our mobile sports betting applications on Android devices.

 

We share and syndicate our editorial content
through third party platforms including Facebook, Twitter, Instagram, YouTube and others. This syndication increases the exposure
of our editorial content and generates user traffic for our websites. If these third-party platforms modify or alter their policies
with respect to the sharing and/or syndication of content, traffic to our websites could be negatively affected and could have
a material adverse effect on our prospects, business, financial condition and results of operations.

 

We also curate and aggregate content from
selected third-party sources, including news articles, social media content and other multimedia content, and present it to our
audience through our mobile sports applications and website. If these third parties modify or alter their policies, or otherwise
preclude other publishers from curating and aggregating such content, our ability to present this content to our audience could
be negatively affected and could have a material adverse effect on our prospects, business, financial condition and results of
operations.

 

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Mobile Device Users May Limit Data Tracking and Targeting

 

The success of our digital sports media
platforms depends on our ability to deliver targeted, highly relevant ads to users of our mobile sports applications and website.
Targeted advertising is done primarily through analysis of data, much of which is collected on the basis of user-provided permissions.
This data might include a mobile device’s location or data collected when users view an advertisement or when they click
on or otherwise engage with an advertisement. Users may elect not to allow data sharing for targeted advertising for a number of
reasons, such as privacy concerns, or pricing mechanisms that may charge the user based upon the amount or types of data consumed.
In addition, the designers of mobile device operating systems are increasingly promoting features and tools that allow device users
to disable some of the functionality, which may impair or disable the delivery of advertisements to their devices, and device manufacturers
may include these features as part of their standard device specifications (e.g. Apple changing its practice for IDFA ad tracking
to ‘opt-in’ from ‘opt-out’). Although we are not aware of any other such products or functionalities that
are widely used in the market today, as has occurred in the online advertising industry, companies may develop products and features
that enable users to prevent advertisements from appearing on their mobile device screens. Finally, as discussed more fully below,
the delivery of targeted advertising is under increasing scrutiny by regulators in many of the jurisdictions in which we operate,
and regulatory changes could impact our business model and may have similar impact for many if not most entities that rely on targeted
advertising. If any of these developments were to occur, it could have a material adverse effect on our prospects, business,
financial condition and results of operations.

 

New and Evolving Industry

 

The iGaming and online sports betting industries
are relatively new and continue to evolve. Whether these industries grow and whether our business will ultimately succeed, will
be affected by, among other things, developments in social networks, mobile platforms, legal and regulatory developments (such
as passing new laws or regulations or extending existing laws or regulations to online sports betting, iGaming and related activities),
taxation of gaming activities, data and information privacy and payment processing laws and regulations, and other factors that
we are unable to predict and which are beyond our control. Given the dynamic evolution of these industries, it can be difficult
to plan strategically, including as it relates to product launches in new or existing jurisdictions which may be delayed or denied,
and it is possible that competitors will be more successful than us at adapting to change and pursuing business opportunities.
Additionally, as the online sports betting and iGaming industries advance, including with respect to regulation in new and existing
jurisdictions, we may become subject to additional compliance-related costs, including as it relates to licensing and taxes. Consequently,
we cannot provide assurance that our online and interactive offerings will grow at the rates expected or be successful in the long
term. If our product offerings do not obtain popularity or maintain popularity, or if they fail to grow in a manner that meets
our expectations, or if we cannot offer our product offerings in particular jurisdictions that may be material to our business,
it could have a material adverse effect on our prospects, business, financial condition and results of operations.

 

Limited Long-Term Agreements with Advertisers

 

The success of our digital sports media
platforms requires us to maintain and expand our current advertiser client relationships and to develop new relationships. Our
contracts with our advertiser clients generally do not include long-term obligations requiring them to purchase our services and
may be cancelled upon short or no notice and without penalty. As a result, we may have limited visibility as to our future advertising
revenue streams. We cannot ensure our advertiser clients will continue to use our services or that we will be able to replace,
in a timely or effective manner, departing clients with new clients that generate comparable revenue. Any non-renewal, renegotiation,
cancellation or deferral of significant advertising contracts that in the aggregate account for a significant amount of revenue,
could have a material adverse effect on our prospects, business, financial condition and results of operations.

 

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Substantial Capital Requirements

 

We may require substantial additional equity
or debt financing in order to carry out our business objectives, including the continued development of new and upgraded functionality
of our products and services. There can be no assurance that debt or equity financing or cash generated by operations would be
available or sufficient to meet these requirements or for other corporate purposes or, if debt or equity financing is available,
that it would be on terms acceptable to us. Failure to obtain sufficient financing may result in the delay or indefinite postponement
of development or production on any or all of our products and services which could have a material adverse effect on our business,
financial condition and results of operations.

 

Protection of Intellectual Property

 

Our commercial success depends upon our
ability to develop new or improved technologies and products, and to successfully obtain or acquire patent or other proprietary
or statutory protection for these technologies and products in Canada, the United States and other countries.

 

We rely on, among other things, copyrights,
trademarks, trade secrets, confidentiality procedures and contractual provisions to protect our proprietary rights. While we enter
into confidentiality and non-disclosure agreements with our employees, consultants, users, potential users and others to attempt
to limit access to and distribution of proprietary and confidential information, it is possible that:

 

		·	some or all of our confidentiality and non-disclosure agreements will not be honoured;

 

		·	third parties will independently develop equivalent technology or misappropriate our technology or designs;

 

		·	disputes will arise with our strategic partners, users or others concerning the ownership of intellectual property;

 

		·	unauthorized disclosure or use of our intellectual property, including source code, know-how or trade secrets will occur; or

 

		·	contractual provisions may not be enforceable.

 

There can be no assurance that we will
be successful in protecting our intellectual property rights or that we will become aware of third-party infringements that might
be occurring. Inability to protect our intellectual property rights could have a material adverse effect on our prospects, business,
financial condition or results of operations.

 

Infringement on Intellectual Property

 

Our commercial success depends upon us
avoiding the infringement of intellectual property rights owned by others. The industries in which we compete have many participants
that own, or claim to own, intellectual property, including participants that have been issued patents and may have filed patent
applications or may obtain additional patents and proprietary rights for technologies similar to those used by us in our products.
Some of these patents may grant very broad protection to the third-party owners thereof. Patents can be issued very rapidly and
there is often a great deal of secrecy surrounding pending patent applications. We cannot determine with certainty whether any
existing third-party patents or the issuance of any new third-party patents would require us to alter our technologies, pay for
licenses, challenge the validity or enforceability of the patents, or cease certain activities. Third parties may assert intellectual
property infringement claims against us and against our partners and/or suppliers. We may be subject to these types of claims either
directly or indirectly through indemnities assuming liability for these claims that we may provide to certain partners. There can
be no assurance that our attempts to negotiate favourable intellectual property indemnities in favour of us with our suppliers
for infringement of third-party intellectual property rights will be successful or that a supplier’s indemnity will cover
all damages and losses suffered by us and our partners and other suppliers due to infringing products, or that we can secure a
license, modification or replacement of a supplier’s products with non-infringing products that may otherwise mitigate such
damages and losses.

 

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Some of our competitors have, or are affiliated
with companies that have, substantially greater resources than us, and these competitors may be able to sustain the costs of complex
intellectual property infringement litigation to a greater degree and for longer periods of time than us. Regardless of whether
third-party claims of infringement against us have any merit, these claims could:

 

		·	adversely affect our relationships with our customers and users;

 

		·	be time-consuming to evaluate and defend;

 

		·	result in costly litigation;

 

		·	result in negative publicity for us;

 

		·	divert our management’s attention and resources;

 

		·	cause product and software delivery delays or stoppages;

 

		·	subject us to significant liabilities;

 

		·	require us to enter into costly royalty or licensing agreements;

 

		·	require us to develop possible workaround solutions that may be costly and disruptive to implement; or

 

		·	require us to cease certain activities or to cease distributing our products and delivering our services in certain markets.

 

In addition to being liable for potentially
substantial damages relating to a patent or other intellectual property following an infringement action against us, we may be
prohibited from developing or commercializing certain technologies or products unless we obtain a license from the holder of the
patent or other applicable intellectual property rights, or purchase the patent. There can be no assurance that we will be able
to obtain any such license or purchase the patent on commercially reasonable terms, or at all. If we do not obtain such a license,
our prospects, business, operating results and financial condition could be materially adversely affected, and we could be required
to cease related business operations in some markets and restructure our business to focus on continuing operations in other markets.
In addition, we include and promote certain third-party applications and content with our products. Our support and promotion of
third-party applications and content increases the risk of intellectual property claims being asserted against us if such applications
and content infringe on the patents or other intellectual property rights of others.

 

Brand Development

 

The brand identity that we have developed
has significantly contributed to the success of our business. Maintaining and enhancing ‘theScore’ brand is critical
to expanding our base of users, advertisers and partners. ‘theScore’ brand may be negatively impacted by a number of
factors, including product malfunctions, delivery of incorrect information or data, data privacy and security issues. If we fail
to maintain and enhance ‘theScore’ brand, or if we incur excessive expenses in this effort, it could have a material
adverse effect on our prospects, business, financial condition and results of operations. Maintaining and enhancing ‘theScore’
brand will depend largely on our ability to be a technology leader and to continue to provide high-quality products and services,
which we may not do successfully.

 

Corporate Social Responsibility, Responsible Gaming, Reputation
and Ethical Conduct

 

Many factors influence our reputation and
the value of our brands, including the perception held by our customers, business partners, investors, other key stakeholders and
the communities in which we operate regarding theScore and our business and governance practices, such as our social responsibility,
corporate governance and responsible gaming practices. We may face increased scrutiny related to responsible gaming, social and
governance activities, and our reputation, and the value of our brands can be materially adversely harmed if we fail to act responsibly
in a number of areas, such as supply chain management, diversity and inclusion, workplace conduct and labour relations, responsible
gaming, human rights, philanthropy and support for local communities. Any harm to our reputation could impact employee engagement
and retention, the willingness of customers and our partners to do business with us, and current and potential investors to invest
in us, which could have a materially adverse effect on the our business, results of operations, cash flows and stock price.

 

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We believe that our reputation is critical
to our role as a leader in the online sports betting, iGaming and interactive entertainment industries and as a publicly traded
company. Our management is heavily focused on the integrity of our directors, officers, senior management, employees, other personnel
and third-party suppliers and partners. Illegal, unethical or fraudulent activities perpetrated by any of such individuals, suppliers
or partners for personal gain could expose us to potential reputational damage and financial loss.

 

Dependence on Key Personnel and Employees

 

Our success is dependent on the services
and performance of key executives, including our directors and a small number of highly skilled and experienced executives and
personnel. We strongly depend on the business and technical expertise of our management and key personnel. Due to our relatively
small size, the loss of any of these individuals or our inability to attract and retain additional highly skilled employees may
adversely affect our business and future operations. The competition for highly skilled technical, research and development, management
and other employees is high and there can be no assurance that we will be able to engage the services of such personnel or retain
our current personnel.

 

Rapid Technology Developments

 

The digital sports media, mobile sports
betting and iGaming industries are characterized by rapid technological change, evolving industry standards, frequent new product
introductions and short product life cycles. To keep pace with the technological developments, achieve product acceptance and remain
relevant to users and therefore attractive to advertisers, we will need to continue developing new and upgraded functionality of
our products and services and adapt to new business environments and competing technologies and products developed by our competitors.
The process of developing new technology is complex and uncertain. To the extent we are not able to adapt to new technologies and/or
standards, experiences delays in implementing adaptive measures or fails to accurately predict emerging technological trends and
the changing needs of users, we may lose users and advertisers and/or fail to secure new sports data and content licences or renew
existing licences as they expire.

 

We have developed, and are continuing to
develop, a number of products and services incorporating advanced technologies and we will pursue those products and services that
we expect to have the best chance for success based on our expectations of future market demand. The development and application
of new technologies involve time, substantial costs and risks. There can be no certainty that we will be able to develop new products,
services and technologies to keep up to date with developments in the digital sports media and mobile sports betting industries
and, in particular, to launch such products, services or technologies in a timely manner or at all. There can be no certainty that
such products will be popular with users or that such products or new technologies will be reliable, robust and not susceptible
to failure. Any of these factors could have a material adverse effect on our prospects, business, financial condition or results
of operations.

 

Defects in Products

 

Our products are highly complex and sophisticated
and may contain design defects or errors that are difficult to detect and correct. Defects, errors or bugs found in our new products
could delay regulatory review and approval and commercial release for an extended period of time. Errors or defects may be found
in new products after launch and, even if discovered, we may not be able to successfully correct such errors or defects in a timely
manner or at all. The occurrence of errors and failures in our products could result in loss of or delay in end user acceptance
of our products, may harm our reputation and brand, could result in regulatory action being taken against us, could subject us
to fines, and could result in the suspension and/or loss of our gaming license(s). Correcting such errors and failures in our products
could require significant expenditures by us, involving cost or time and effort of personnel. The consequences of such errors,
failures and claims could have a material adverse effect on our prospects, business, financial condition or results of operations.

 

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Real or Perceived Inaccuracies in Key Performance Metrics

 

Our user metrics are based on internal
company data that are not independently verified, data from third-party analytics providers that measure the performance of our
mobile applications and websites, and/or data from third-party platforms where our content is distributed, like Facebook, Instagram
and YouTube. While these numbers are based on what we believe to be reasonable calculations for the applicable period of measurement,
there are inherent challenges in measuring usage and user engagement across multiple platforms and across our large user base around
the world. Our measures of user growth and user engagement may differ from estimates published by third parties or from similarly
titled metrics of our competitors due to differences in methodology.

 

If advertisers, partners or investors do
not perceive our user metrics to be accurate representations of our user base or user engagement, or if we discover material inaccuracies
in our user metrics, our reputation may be harmed and advertisers and partners may be less willing to allocate their budgets or
resources to our products and services, which could have a material adverse effect on our prospects, business, financial condition
or results of operations. Further, as our business develops, we may revise or cease reporting metrics if we determine that such
metrics are no longer accurate or appropriate measures of our performance.

 

User Data

 

We may require the registration of our
users prior to accessing our products or services or certain features of our products or services and we may be subject to increased
legislation and regulations on the collection, storage, retention, transmission and use of user-data that is collected. Our efforts
to protect the personal information of our users may be unsuccessful due to the actions of third parties, software bugs or technical
malfunctions, employee error or malfeasance, or other factors. In addition, third parties may attempt to fraudulently induce employees
or users to disclose information in order to gain access to our data or our users’ data. If any of these events occur, users’
information could be accessed or disclosed improperly. Any incidents involving the unauthorized access to or improper use of the
information of users or incidents involving violation of our terms of service or policies could damage our reputation and our brand
and diminish our competitive position. In addition, the affected users or governmental authorities could initiate legal or regulatory
action against us in connection with such incidents, including in respect of new mandatory breach reporting and record-keeping
obligations in Canada and certain states in the United States which will soon become effective, which could cause us to incur significant
expense and liability or result in orders or consent decrees forcing us to modify our business practices and remediate the effects
of any such incidents of unauthorized access or use. Any of these events could have a material adverse effect on our prospects,
business, financial condition or results of operations.

 

We transmit and store a large volume of
data in the course of supporting our website and mobile sports applications. The interpretation of privacy and data protection
laws and their application to the Internet is unclear and subject to rapid change in numerous jurisdictions. There is a risk that
these laws may be interpreted and applied in a manner that is not consistent with our data protection practices and results in
additional compliance or changes in our business practices, or both, and liability or sanction under these laws. In addition, because
our website and mobile sports applications are accessible in many jurisdictions, certain foreign jurisdictions may claim that we
are required to comply with local laws, even where we have no local operating entity, employees, infrastructure or other physical
presence in those jurisdictions. In particular, in the spring of 2018, the General Data Protection Regulation (“GDPR”),
which provides for extraterritorial enforcement in some cases and includes the possibility of substantial monetary penalties for
non-compliance, came into effect in the European Union. In addition, with the possibility of the United Kingdom leaving the European
Union in the fall of 2019, the UK may adapt an amended version of the GDPR into UK law. The impact of the GDPR and the UK adopted
version of the GDPR on our business is uncertain. Likewise, California enacted the California Consumer Privacy Act (“CCPA”),
effective on January 1, 2020, that creates additional rights for consumers with respect to the collection and use of their
data, and depending on how it is interpreted by the California Attorney General in the promulgation of regulations and enforcement,
it could negatively impact our business model. Furthermore, we may face conflicting obligations arising from the potential concurrent
application of laws of multiple jurisdictions. In the event that we are not able to reconcile such obligations, we may be required
to change business practices or face liability or sanction.

 

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In addition, a Parliamentary Committee
has recently recommended certain changes to Personal Information Protection and Electronic Documents Act (Canada), the federal
privacy and data protection statute in Canada, including new administrative enforcement powers and new financial penalties for
non-compliance. There is a risk that the Government may implement changes to this statute that may result in additional compliance
or changes in our business practices, or create additional risk of liability or sanction, or all of the foregoing.

 

Reliance on Collaborative Partners

 

We may rely on collaborative arrangements
to provide services and to develop and commercialize some of our products or services in the future. There can be no assurance
that we will be able to negotiate acceptable collaborative arrangements, that such collaborative arrangements will be successful
or that we would not be required to relinquish certain material rights to our products or services. In addition, there can be no
assurance that our collaborative partners will not pursue alternative technologies or develop alternative products or services
either on their own or in collaboration with others, including our competitors. To the extent that we succeed in entering into
collaborative arrangements, we will be dependent on the efforts of third parties for the continued development of certain services
or products.

 

Additionally, we employ agents and subcontractors
as part of the development, commercialization and operation of our products and services. The ultimate liability for the performance
of such agents or subcontractors lies with us. Further, our business model is based on the distribution of our products and services
by third parties, including communication network providers, web hosting providers and operating system manufacturers. The failure
of such third parties in the performance of their duties and obligations with regards to the development, commercialization, operational
support or distribution our products and services could lead to significant costs and disruptions that could reduce our revenue,
harm our business reputation and have a material adverse effect on our prospects, business, financial condition or results of operations.

 

New Business Areas and Geographic Markets

 

Our growth strategy is dependent upon expanding
our products into new business areas or new geographic markets. There can be no assurance that these new business areas and geographic
markets will generate the anticipated volume of users or revenue. In addition, any expansion into new business areas or geographic
markets could expose us to new risks, including compliance with applicable laws and regulations, changes in the regulatory or legal
environment; different user preferences or habits; adverse exchange rate fluctuations; adverse tax consequences; differing technology
standards or user requirements and capabilities; difficulties staffing and managing foreign operations; infringement of third-party
intellectual property rights; the cost of localising software (including translations) or otherwise adapting our products and services
for new markets; difficulties collecting accounts receivable; or difficulties associated with repatriating cash generated or held
abroad in a tax-efficient manner. These factors could cause our expansion into new business areas or geographic markets to be unsuccessful
or less profitable than our existing markets, or could cause our operating costs to increase unexpectedly or our sales to decrease,
any of which could have a material adverse effect on our prospects, business, financial condition or results of operations.

 

We expect that a substantial portion of
our future revenue will be derived from outside of Canada. Execution of this business strategy is subject to a variety of risks,
including operating and technical problems, regulatory uncertainties and possible delays. If we do proceed to operate in different
international regions, revenues earned from users may decrease in the future for a variety of reasons, including increased competition
and new entrants into geographic markets in which we operate or intend to operate. Depending on the countries involved, any or
all of the foregoing factors could have a material adverse effect on our prospects, business, financial condition and results of
operations. In addition, there can be no assurance that laws or administrative practices relating to taxation, foreign exchange
or other matters in countries within which we intend to operate will not change. Any such change could have a material adverse
effect on our prospects, business, financial condition and results of operations.

 

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Operational and Financial Infrastructure

 

We are subject to growth-related risks,
capacity constraints and pressure on our internal systems and controls. Our ability to manage growth effectively will require us
to continue to implement and improve our operational and financial systems and to expand, train and manage our employee base. This
expansion may require us to commit financial, operational and technical resources in advance of an increase in the size of our
business, with no assurance that the volume of business will increase or that such initiatives to improve and upgrade our systems
and infrastructure will be successful. The inability to deal with this growth or any failure in these initiatives could have a
material adverse effect on our prospects, business, financial condition or results of operations.

 

Information Technology Defects

 

The integrity, reliability and operational
performance of our operational information technology (“IT”) systems are critical to our ability to operate
our digital sports media applications, websites and mobile sports betting platform. Our IT systems may be damaged or interrupted
by increases in usage, human error, unauthorised access, natural hazards or disasters or similarly disruptive events. Any failure
of these IT systems or the telecommunications and/or other third-party infrastructure on which such systems rely, as described
in “Risk Factors – Risks Related to Our Business and Industry
– Reliance on Third-Party Owned Communication Networks” could lead to significant costs and disruptions
that could reduce our revenue, harm our business reputation, subject us to regulatory actions and have a material adverse effect
on our prospects, business, financial condition or results of operations.

 

We have procedures and measures in place
to protect against network or IT system failure or disruption. However, those procedures and measures may not be effective to ensure
that we are able to carry on our business in the ordinary course if they fail or are disrupted. In addition, our IT systems may
not be effective in detecting any intrusion or other security breaches, or safeguarding against sabotage, hackers, denial of service
attacks, viruses or cybercrime. Any failure in these protections could harm our business reputation, subject us to regulatory actions
and have a material adverse effect on our prospects, business, financial condition or results of operations.

 

Reliance on Third-Party Owned Communication Networks

 

The delivery of our products and services
and a significant portion of our revenues are dependent on the continued use and expansion of third party-owned communication networks,
including wireless networks and the Internet. No assurance can be given of the continued use and expansion of these networks as
a medium of communications for us. Ongoing regulatory initiatives make it impossible to predict how this segment of the market
might respond to such initiatives, which could have a downstream impact on our delivery of products and services.

 

Effective delivery of our products and
services through the Internet is dependent on Internet service providers continuing to expand high-speed Internet access, maintaining
reliable networks with the necessary speeds, data capacity and security, and developing complementary products and services for
providing reliable and timely access and services. Changes in access fees (for example, revising the application of bandwidth caps
or other metered usage schemes) to users may adversely affect the ability or willingness of users to access our content. Changes
in access fees to distributors, such as us or our service providers, or a departure from “net neutrality” (the principle
that all forms of Internet traffic (including video, voice, and text) are subject to equal treatment in transmission speed and
quality) or its governing regulations, as described in “RISK FACTORS – Risks Related to Our Business and Industry
 – Governmental Regulation of the Internet” could result in increased costs to us. All of these factors are out
of our control and the manifestation of any of them could ultimately have a material adverse effect on our prospects, business,
financial condition or results of operations.

 

In addition, increasing traffic, user numbers
or bandwidth requirements may result in a decline in Internet (or a subset thereof, including in particular mobile Internet) performance
and/or Internet reliability. Internet outages or delays or loss of network connectivity may result in partial or total failure
of our services, additional and unexpected expenses to fund further product development or to add programming personnel to complete
a development project, loss of revenue because of the inability of users or subscribers to use our services, or the cancellation
by users or subscribers of their service with us, any of which could have a material adverse effect on our prospects, business,
financial condition or results of operations.

 

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Uncertain Economic Health of the Wider Economy

 

Our revenue streams are dependent on the
overall macro-economic environment (in particular for sales of online advertising and sponsorship, and consumer discretionary spending
habits). Advertisers are directly affected by current economic conditions affecting the broader market. Consumer discretionary
spending or consumer preferences are driven by socioeconomic factors beyond our control. Current and future conditions in the domestic
and global economies remain uncertain and volatile. Accordingly, adverse developments in the macro-economic environment could substantially
reduce the funds spent on advertising by advertisers; and decreased consumer confidence in the overall economic environment could
cause a decline in consumer discretionary spending on non-essential or leisure products and services; resulting in a material adverse
effect on our prospects, business, financial condition or results of operations.

 

Governmental Regulation of the Internet

 

Governments and regulatory authorities
in some jurisdictions in which our content originates or our users reside, including Canada, impose rules and regulations
affecting the third-party-owned communications networks over which our services are accessed, including Internet and mobile connectivity
(“network services”), and affecting the audiovisual content distributed to the public as part of our services
(“audiovisual media”). In certain circumstances this governmental regulation of the Internet, which is frequently
controversial, protects our activities from certain tactics by competitors or potential competitors. Should efforts to overturn
this governmental regulation prove successful, network services providers could impose restrictions that adversely impact our ability
to deliver content on an equal footing with other audiovisual media providers, which could have a material adverse effect on our
prospects, business, financial condition and results of operations.

 

Canada

 

In Canada, the country in which we are
established, network services fall under the Telecommunications Act (Canada); audiovisual media fall under the Broadcasting
Act (Canada); and spectrum regulation falls under the Radiocommunication Act (Canada). In June 2018, the Federal
Government established an expert panel to review and recommend amendments to the Telecommunications Act, the Broadcasting
Act and (if necessary) the Radiocommunication Act (Canada) (the “Legislative Review”). The Expert
Panel tabled its report with 97 recommendations in January 2020, however, to date, no legislative proposals have been tabled.

 

Both the Telecommunications Act
(Canada) and Broadcasting Act (Canada) grant broad discretion to the Canadian Radio-television and Telecommunications Commission
(“CRTC”) to pursue the objectives set out in those Acts by regulating and supervising the Canadian broadcasting
and telecommunications systems. In addition, the Radiocommunication Act (Canada) grants the Department of Innovation, Science
and Economic Development Canada (“ISED”) discretion to pursue the objectives set out in the Telecommunications
Act (Canada) by fixing the terms and conditions of the spectrum licences and exemptions which authorize the provision of mobile
services in Canada. Both ISED and the CRTC have taken actions to increase competition between network providers, which could lower
access costs. The CRTC has also established and clarified its network neutrality rules through several decisions. In recent
years, the wholesale regimes for both wireless and wireline services have been changed by the CRTC, and various other decisions
have been made with a view to facilitating sustainable competition that provides reasonable prices, innovative services and continued
innovation and investment in high-quality wireless and wireline networks. Furthermore, the CRTC has rejected proposals to establish
an administrative site-blocking regime to police intellectual property piracy on the Internet.

 

With respect to the Broadcasting Act
(Canada), our activities which involve the transmission of audiovisual content, and fall under that Act, are subject to the Exemption
Order for Digital Media Broadcasting Undertakings (“DMBU Order”). The DMBU Order generally exempts audiovisual
content transmitted to the public only over the Internet, or through point-to-point mobile applications (including sports applications),
from licensing. In September 2014, the CRTC completed a major public proceeding with respect to the manner in which it regulates
video services and which proceeding included, among many other topics, a discussion of the DMBU Order. In a series of decisions
in the first four months of 2015, the CRTC refrained from amending or revoking the DMBU Order. However, potential changes to the
regulatory obligations applicable to digital media services, which could include new financial contributions and/or content-related
obligations, are within the scope of the current Legislative Review.

 

If the CRTC’s and/or ISED’s
approaches to the issues discussed above, or the legislative basis under which they operate, should change, it could negatively
impact our business.

 

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In addition, the Canadian Anti-Spam
Legislation (“CASL”) came into force on July 1, 2014. CASL prohibits the transmission of commercial
electronic messages without an addressee’s consent and includes additional requirements relating to form and content of commercial
electronic messages. Failure to comply with CASL can result in financial penalties which could affect our operating profit and
financial position. On July 1, 2017, the private right of action provisions of CASL were to have come into effect, allowing
any person to bring claims for contraventions of CASL. However, on June 7, 2017, the Government suspended that provision and
indicated that a Parliamentary Committee would be asked to study it. That Committee recommended further consideration, which the
Government has agreed to undertake. There is currently no clear expectation as to whether the private right of action will be brought
into force or, if so, when. Should it not be amended or cancelled, we could be negatively impacted by plaintiffs claiming that
we violated the provisions of CASL.

 

United States

 

In the United States, where much of our
content is distributed, telecommunications services are subject to regulation by the Federal Communications Commission (“FCC”)
under the Communications Act of 1934 (“Communications Act”). While the FCC regulates use of radio spectrum,
certain aspects of telephony service, some fiber optic cable services, and some cable infrastructure and programming, content distributed
by Internet is generally not considered to be a telecommunications service and thus free of FCC regulation. The extent to which
the Federal Trade Commission (“FTC”) intends to fill this void remains uncertain.

 

Even without direct regulation of Internet
content, FCC regulation of infrastructure providers can have an effect on our business. The Open Internet Order, FCC 15-24, 30
FCC Rcd. 5601 (2015) (“Open Internet Order”) declared internet service to be protected as a regulated utility
under Title II of the Communications Act. The Open Internet Order was part of a series of regulatory and judicial interpretations
of net neutrality, establishing the degree to which Internet content providers will be protected from blocking, paid prioritization
and other service restrictions or interference by wireline and mobile infrastructure owners. Even though the FCC declined to impose
a full regulatory regime on the Internet, opponents of the Open Internet Order sued to block the new rules. While the lawsuits
were pending, the 2016 election brought a change in administration in the United States and a change in control of the FCC. As
a result of the changes, the FCC reversed the Open Internet Order. The result is that we will not be regulated in our content distribution
or insulated from business practices of infrastructure providers that support distribution of our content.

 

The State of California passed a comprehensive
net neutrality law on September 30, 2018. The California Internet Consumer Protection and Net Neutrality Act of 2018
targets “fixed Internet service providers,” defined to include providers of broadband Internet access service that
serves end users primarily at fixed endpoints, including fixed wireless providers. The providers will be prohibited from actions
like blocking lawful content, impairing or degrading lawful Internet traffic, and engaging in paid prioritization, among other
prohibitions. While the law would insulate our content distribution from business practices of infrastructure providers, the FCC
and the U.S. Department of Justice have already challenged the law, calling for injunctive relief. The injunction action is pending
as of October 4, 2018.

 

Some video distributed over the Internet
and previously carried on television is subject to closed captioning rules. 47 C.F.R. §79.4. Application of those rules to
our video content could add expense and regulatory risk for us.

 

Before the 2016 election, the FCC had under
consideration a proposed rulemaking to treat certain “over-the-top” on-line video programming providers like multi-channel
video programming distributors, or cable companies. Notice of Proposed Rulemaking, 29 FCC Rcd 15995 (2014). With the change of
administrations, the proposed regulatory changes are in suspense. If implemented in a way that included the content distributed
by us, the proposed regulations could add cost and impose traditional cable company obligations on us.

 

Other Jurisdictions

 

In other jurisdictions, both network services
and media distribution are frequently subject to particular rules or regulations. Guidelines or rules are in place in
a number of jurisdictions, with varying degrees of enforcement, with respect to both network services, including network neutrality
and audiovisual media, including content exclusivity and standards. However, although regulatory schemes can vary significantly
from jurisdiction to jurisdiction, we are not aware of regulations in any material jurisdiction that would require us to be licensed
to carry on our activities over the public Internet in those jurisdictions.

 

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Currency Fluctuations

 

Our reporting and functional currency is
Canadian dollars, but an increasing proportion of our revenue may be earned, and expenses may be incurred, in other currencies,
including the US dollar, pound sterling and the euro. See “RISK FACTORS – Risks Related to Our Business and Industry
 – New Business Areas and Geographic Markets” above. A significant movement of any of these currencies against
the Canadian dollar could have a material adverse effect on our prospects, business, financial condition and results of operations.

 

Changes in Taxation

 

Changes in taxation rates or law, or misinterpretation
of the law or any failure to manage tax risks adequately could result in increased charges, financial loss, including penalties
and reputational damage, and which could have a material adverse effect on our prospects, business, financial condition and results
of operations.

 

Exposure to Taxable Presences

 

Our policy will be to manage and operate
our business in a way that is intended to ensure that we are resident for tax purposes solely in the jurisdiction in which we are
incorporated or domiciled and that we have no taxable permanent establishments or other taxable presence in any other jurisdiction.
However, if we are found to be tax resident elsewhere or to have a taxable permanent establishment or other taxable presence elsewhere,
whether on the basis of existing law or the current practice of any tax authority or by reason of a change in law or practice,
this may have a material adverse effect on the overall amount of tax payable by us.

 

Risk of Litigation

 

We may become involved in disputes with
other parties in the future which may result in litigation. The results of litigation cannot be predicted with certainty. If we
are unable to resolve these disputes favourably, it could have a material adverse effect on our prospects, business, financial
condition and results of operations.

 

Internal Controls

 

Internal controls over financial reporting
are procedures designed to provide reasonable assurance that transactions are properly authorized, recorded and reported and assets
are safeguarded against unauthorized or improper use. A control system, no matter how well designed and operated, can provide only
reasonable, and not absolute, assurance with respect to the reliability of financial reporting and financial statement preparation.

 

Credit Risk

 

Credit risk is the risk of financial loss
to us if a counterparty to a financial instrument fails to meet its contractual obligations. The carrying amount of financial assets
represents the maximum credit exposure. Although we establish an allowance for doubtful accounts that represents our estimate of
potential credit losses in respect of accounts receivables and historically has not experienced any significant losses, there is
no assurance that the allowance for doubtful accounts will be sufficient to cover credit losses in the future and future credit
losses could have a material adverse effect on our prospects, business, financial condition and results of operations.

 

Free and Open Source Software Utilization

 

We, together with our third-party suppliers
and collaborative partners, make use of Free and Open Source Software (“FOSS”) in the development of our mobile
sports applications, web properties and related operational IT systems.  The law surrounding the use of FOSS is in a state
of evolution and the legal ramifications of such use remain uncertain in Canada and in other countries. The use of FOSS may
therefore lead to unintended legal consequences that may have a material adverse effect on our proprietary technology and intellectual
property, or those of our third-party suppliers and collaborative partners, including potential tainting and a loss of our or our
suppliers’ or partners’ proprietary positions in relation to the said applications, properties and systems, and the
possibility of intellectual property infringement claims or breach of contract claims from FOSS licensors or from our third-party
suppliers or collaborative partners.

 

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Risk Relating to Ownership of theScore Shares

 

Major Shareholder with 100% of the Special Voting Shares

 

Mr. John Levy controls or directs
100% of the issued and outstanding Special Voting Shares and approximately 19.4% of the outstanding Class A Shares. As a result,
Mr. Levy is entitled to nominate a majority of the members of our board of directors (the “Board”) and
he has the ability to influence the outcome of matters submitted to the our shareholders for approval, which include amendments
to our corporate governing documents and business combinations. Our interests and the interests of other shareholders may at times
conflict with those of Mr. Levy, and this conflict might be resolved against our interests and the interests of other shareholders.
Due to these shareholdings and contractual rights of Mr. Levy and John Levy Family Holdings Ltd. (“Levy Holdings”)
in the Respective Rights Agreement, Mr. Levy will be in a position to determine whether we or our operations are acquired
by a third-party, to significantly influence the election of the members of the Board and the board of directors of our subsidiaries
and to generally direct our affairs.

 

Market Price and Trading Volume of Class A Shares

 

During the period in which this AIF relates,
our Class A Shares traded on the TSXV. After receiving final approval to graduate to the TSX from the TSXV, our Class A
Shares commenced trading on the TSX at market open on September 15, 2020 under the existing ticker “SCR”. Our
Class A Shares were voluntarily delisted from the TSXV concurrently with the commencement of trading on the TSX. The price
of the Class A Shares is likely to be significantly affected by a variety of factors and events including short-term changes
to our financial condition or results of operations as reflected in our quarterly earnings reports. Other factors unrelated to
our performance that may have an effect on the price of our Class A Shares include the following: (i) the extent of analytical
coverage available to investors concerning our business may be limited if investment banks with research capabilities do not follow
our securities; (ii) lessening in trading volume and general market interest in our securities or technology companies more
generally may affect an investor’s ability to trade significant numbers of the Class A Shares; (iii) the size of
our public float may limit the ability of some institutions to invest in our securities; and (iv) a substantial decline in
the price of the Class A Shares that persists for a significant period of time could cause our securities, if listed on an
exchange, to be delisted from such exchange, further reducing market liquidity.

 

As a result of any of these factors, the
market price of the Class A Shares is subject to fluctuations and may not accurately reflect our long-term value at any given
point in time. Securities class action litigation has often been brought against companies following periods of volatility in the
market price of their securities. We may be the target of similar litigation in the future. Securities litigation could result
in substantial costs and damages and divert management’s attention and resources.

 

In addition, our Class A Shares may
not qualify as a permitted investment under the investment policies or guidelines of certain institutional investors which could
result in a lessening in trading volume and our securities.

 

Debt Obligations Will Have Priority Over Class A
Shares in the Event of a Liquidation, Dissolution or Winding Up

 

In the event of
our liquidation, dissolution or winding up, the Class A Shares would rank below all debt claims against us. In addition, any
convertible or exchangeable securities or other equity securities that we may issue in the future (such as the Preferred Shares,
of which there are none outstanding as of the date hereof) may have rights, preferences and privileges more favourable than those
of the Class A Shares. As a result, holders of Class A Shares will not be entitled to receive any payment or other distribution
of assets upon the liquidation or dissolution until after our obligations to our debt holders and holders of equity securities
that rank senior to the Class A Shares, if any, have been satisfied.

 

    37

     

    

 

Dividend Policy

 

We have not paid any dividends on either
the Class A Shares or the Special Voting Shares. Our current policy is to retain earnings for our future growth. Any future
declaration of dividends is, subject to certain statutory restrictions and certain restriction set out in our amended and restated
credit facility dated July 14, 2020, with Scotia Capital Inc., as lender (the “Credit Facility”), within
the discretion of the Board based on their assessment of, among other factors, our overall financial condition, results of operations,
capital and operating expenditure requirements and other relevant factors. At this time, we have negative operating cash flow and
anticipate using all available cash resources towards our stated business objectives and retaining all earnings, if any, to finance
our business operations and accordingly, have no plans to pay any dividend.

 

Future Sales of Class A Shares by Existing Shareholders

 

Sales of a large number of Class A
Shares in the public markets, or the potential for such sales, could decrease the trading price of our Class A Shares and
could impair our ability to raise capital through future sales of Class A Shares. In particular, Mr. John Levy controls
or directs approximately 19.4% of the issued and outstanding Class A Shares. If either Mr. Levy or any other significant
shareholder decides to liquidate all or a significant portion of their position, it could adversely affect the price of our Class A
Shares.

 

In addition, if our Class A Shares
failed to qualify as permitted investments under the investment policies or guidelines of certain institutional investors and such
institutions were forced to liquidate their position, it could adversely affect the price of our Class A Shares.

 

Potential Dilution

 

We are authorized to issue an unlimited
number of Class A Shares for consideration and terms as established by our board, in many cases without any requirement for
explicit shareholder approval. We may issue additional Class A Shares in subsequent offerings (including through the sale
of securities convertible into or exchangeable for Class A Shares) and in connection with stock options, restricted stock
units, convertible debentures or other securities exchangeable or exercisable for Class A Shares. We cannot predict the size
of future issuances of Class A Shares or the effect that future issuances and sales of Class A Shares will have on the
market price of the Class A Shares. Issuances of a substantial number of additional Class A Shares, or the perception
that such issuances could occur, may adversely affect prevailing market prices for the Class A Shares. With any additional
issuance of Class A Shares, investors will suffer dilution to their voting power and we may experience dilution in our earnings
per share. Under certain circumstances, the Convertible Debenture we issued to a fund managed and controlled by Fengate Asset Management
may be convertible into Class A Shares (for further information on the Convertible Debenture, please reference “MATERIAL
CONTRACTS - Investment Agreement and Convertible Debenture”.

 

Dividends

 

We have not paid or declared any dividends
on either our Class A Shares or our Special Voting Shares. Our current policy is to retain earnings, if any, for its future
growth. Any future declaration of dividends is, subject to certain statutory restrictions and certain restrictions set out in the
Credit Facility, within the discretion of the Board based on their assessment of, among other factors, our overall financial condition,
results of operations, capital and operating expenditure requirements and other relevant factors.

 

    38

     

    

 

 

Description
of Capital Structure

 

Our authorized capital consists of 5,566
Special Voting Shares (the “Special Voting Shares”), an unlimited number of Class A Subordinate Voting
Shares (the “Class A Shares”) and an unlimited number of Preference Shares (the “Preference Shares”),
issuable in series.

 

We also have outstanding a $40,000,000
8.00% convertible unsecured subordinated debenture due August 31, 2023 that was issued to a fund managed and controlled by
Fengate Asset Management (see “MATERIAL CONTRACTS – Investment Agreement and Convertible Debenture”).

 

Class A Shares

 

The holders of Class A Shares are
entitled to receive notice of and to attend, and to cast one vote for each Class A Share held by them at all meetings of our
shareholders, other than meetings at which only the holders of another class or series of shares (if any) are entitled to vote
separately as a class or series and other than with respect to certain matters which are exclusively reserved for the holders of
Special Voting Shares.

 

The holders of Class A Shares, voting
separately as a class, have the right to elect that number of members of the Board that is not elected by the holders of the Special
Voting Shares (other than the director, if any, that holders of the Preference Shares are collectively entitled to elect), provided
that at no time will the number of directors to be elected by the holders of the Class A Shares be less than two directors.

 

The holders of Class A Shares are
entitled to receive, subject to the prior rights of the holders of the Preference Shares and to the pari passu rights of
the holders of the Special Voting Shares, any dividend declared by the Board on the Class A Shares. Subject to the rights
of holders of shares ranking prior to or on a parity with the Class A Shares, the holders of Class A Shares shall be
entitled to receive pari passu with the holders of Special Voting Shares, the remaining property of theScore in the event
of any liquidation, dissolution or winding-up of theScore, whether voluntary or involuntary, or other distribution of the assets
of theScore among its shareholders for the purpose of winding-up its affairs.

 

Special Voting Shares

 

The holders of Special Voting Shares are
entitled to receive notice of and to attend, and vote at all meetings of our shareholders, other than any meeting of holders of
another class of shares who are entitled to vote separately as a class at such meeting and other than with respect to certain matters
which are exclusively reserved for the holders of Class A Shares. The holders of Special Voting Shares are entitled to one
vote for each share held.

 

The holders of Special Voting Shares, voting
separately as a class, have the right to elect that number of members of the Board that is equal to the sum of: (i) the number
of members of the Board that would constitute a majority of the authorized number of our directors (after deducting one from such
authorized number if the holders of the Preference Shares are collectively entitled to elect one director), plus (ii) two,
subject to the rights of the holders of the Class A Shares to elect at least two members of the Board.

 

The holders of Special Voting Shares are
entitled to receive, subject to the prior rights of the holders of Preference Shares and pari passu with the holders of
Class A Shares, any dividend declared by the Board on the Class A Shares.

 

Subject to the rights of holders of shares
ranking prior to or on a parity with Special Voting Shares, the holders of Special Voting Shares shall be entitled to receive pari
passu with the holders of Class A Shares, the remaining property of theScore in the event of any liquidation, dissolution
or winding-up of theScore, whether voluntary or involuntary, or other distribution of the assets of theScore among its shareholders
for the purpose of winding-up its affairs.

 

Each outstanding Special Voting Share is
convertible into one Class A Share at the option of the holder at any time and from time to time.

 

    39

     

    

 

Pursuant to a trust agreement dated October 19,
2012, between theScore, Levy Holdings (as assignee of Levfam Holdings Ltd. (“Levfam”)) and Computershare Trust
Company of Canada (as assignee of Valiant Trust Company) (as supplemented by a supplemental trust agreement dated May 6, 2019,
the “Coat Tail Agreement”) Levy Holdings, the holder of Special Voting Shares, agreed not to sell any Special
Voting Shares pursuant to a take–over bid under circumstances in which securities legislation would have required the same
offer be made to holders of Class A Shares if the sale had been of Class A Shares rather than Special Voting Shares unless,
either (i) an identical offer is made for the Class A Shares, which identical offer has no condition other than the right
not to take up and pay for shares tendered if no shares are purchased pursuant to the offer for Special Voting Shares, or (ii) there
is a concurrent unconditional offer to purchase all of the Class A Shares at a price per share at least as high as the highest
price per share paid pursuant to the take–over bid for the Special Voting Shares.

 

Preference Shares

 

Preference Shares may at any time and from
time to time be issued in one or more series, each series to consist of such number of shares as may, before the issue thereof,
be determined by resolution of the Board, provided that any such resolution shall have been approved by all directors elected by
the holders of Special Voting Shares.

 

The Board shall by resolution fix from
time to time before the issue thereof the designation of, and the rights, privileges, restrictions and conditions attaching to,
the Preference Shares of each series including, without limiting the generality of the foregoing, the rate or amount of dividends
or the method of calculating dividends, the dates of payment thereof, the redemption and/or purchase prices and terms and conditions
of redemption and/or purchase, the rights of holders on liquidation, dissolution or winding-up, any voting rights, any conversion
rights and any sinking fund or other provisions, the whole to be subject to the issue of a certificate and articles of amendment
or such other document as may be prescribed by law setting forth the designation of, and the rights, privileges, restrictions and
conditions attaching to, the Preference Shares of such series.

 

The Preference Shares of each series shall,
with respect to the payment of dividends and the distribution of assets in the event of liquidation, dissolution or winding-up
of theScore, whether voluntary or involuntary, or any other distribution of the assets of theScore among its shareholders for the
purpose of winding-up its affairs, rank on a parity with the Preference Shares of every other series and be entitled to preference
over the Special Voting Shares, the Class A Shares and any other shares of theScore ranking junior to the Preference Shares.

 

The holders of the Preference Shares as
such shall not be entitled to receive notice of or to attend or to vote at any meeting of our shareholders, provided that the provisions
attaching to one or more series of Preference Shares may provide that in the event that we have has failed to pay dividends prescribed
in such series provisions for the period of time fixed by the directors in such series provisions and until such time as all arrears
of such dividends on such shares have been paid, the holders of such shares will be entitled to receive notice of and to attend
any meeting of our shareholders called for the purpose of electing directors and will be entitled, voting separately thereat as
a class together with holders of any other series of Preference Shares who have similar voting rights upon a failure to pay dividends,
to collectively, elect one director of theScore in addition to the directors which the holders of Special Voting Shares and of
Class A Shares are entitled to elect.

 

There are currently no Preference Shares
issued or outstanding.

 

    40

     

    

 

Share Constraints

 

Our notice of articles and articles (collectively,
our “Articles”) contain restrictions on the issue, transfer and ownership of our securities, including introducing
certain requirements triggered by the acquisition of 5% or more of our outstanding securities (or such other greater or lower threshold
or additional threshold or thresholds as may be established by applicable gaming authorities from time to time) (the “Gaming
Regulatory Ownership Requirements”). The Articles also set out the remedies available to us in the event that a person
(a “Subject Securityholder”) (i) fails to comply with the Gaming Regulatory Ownership Requirements, (ii) owns
our securities in a way that is inconsistent with gaming laws, (iii) owns our securities in a way that jeopardizes our ability
to maintain or obtain a gaming license, or places us under undue hardships to maintain or obtain said gaming license, (iv) refuses
or fails to comply, within a reasonable time, with a request or requirement by a gaming authority to appear before, or submit to
the jurisdiction of, or file an application with, or provide information to, any gaming authority, pursuant to any gaming law,
or (v) is determined by a gaming authority not to be suitable or qualified with respect to owning or controlling our securities
or securities of one of our affiliates (such events are considered the “Triggering Events”), including:

 

(a)            not
issuing any of our securities to the Subject Securityholder;

 

(b)            placing
a stop transfer on any and all of our securities owned by the Subject Securityholder;

 

(c)           suspending
all voting, interest, convertible, dividend and other distribution rights on all or any of our securities owned by the Subject
Securityholder;

 

(d)            applying
to a court of competent jurisdiction (the “Court”) seeking an injunction to prevent a breach or continuing breach
of the Gaming Regulatory Ownership Requirements or applicable gaming laws or for an order directing that the number of securities
giving rise to the breach of the Gaming Regulatory Ownership Requirements or applicable gaming laws be sold or otherwise disposed
of in a manner that the Court may deem appropriate;

 

(e)           applying
to the Ontario Securities Commission, or such other governmental authority having jurisdiction over our affairs, to effect a cease
trading order or such similar restriction against the Subject Securityholder until such time as the Subject Securityholder complies
with applicable gaming laws; and

 

(f)            taking
any further actions as are necessary to comply with gaming laws.

 

Our Articles provide that the Gaming Regulatory
Ownership Requirements do not apply to (i) underwriters or portfolio managers who own our securities for the purposes of distribution
to the public or for the benefit of third parties who are compliant with the Gaming Regulatory Ownership Requirements, and (ii) persons
providing centralized facilities for the clearing of trades who are acting solely as an intermediary of the payment of funds or
the delivery of securities, however, such person may still be subject to applicable gaming laws and subject to a Triggering Event.

 

Our Articles require us to provide a Subject
Securityholder with notice in writing upon the discovery of a Triggering Event. Our Articles require the Subject Securityholder
who is the recipient of such notice, to forthwith rectify such Triggering Event, or within 30 days, to dispose of or otherwise
transfer the number of our securities giving rise to the Triggering Event so long as such transfer or disposition is permissible
under the applicable gaming laws, or else deposit such shares in escrow with us until such time as the Subject Securityholder’s
ownership of the securities no longer constitutes a Triggering Event.

 

According to our Articles, if we are holding
securities in escrow for a Subject Securityholder that is not a holder of the Special Voting Shares (the “Special Voting
Shareholder”) and the Triggering Event has not been rectified or otherwise continues to exist, we may, subject to gaming
laws, (i) sell all or a portion of the securities and distribute the proceeds to the Subject Securityholder, or (ii) repurchase
said shares, for cancellation, at a price (the “Repurchase Price”) as determined in a written valuation and
fairness opinion (“Valuation Opinion”) prepared by a disinterested investment banking firm.

 

If we do not receive the securities in
escrow and the Subject Securityholder has not disposed of or otherwise transferred the number of our securities giving rise to
the Triggering Event, and the Triggering Event has not been rectified or otherwise continues to exist, our Articles provide that
we may repurchase, for cancellation, the securities, at the Repurchase Price.

 

If the Special Voting Shareholder is subject
to a Triggering Event that continues to exist after the expiry of the 30 day period following delivery of the Notice, we will be
entitled to exercise control and direction over the Special Voting Shareholder’s Special Voting Shares and any other securities
in question as trustee for the benefit of the Special Voting Shareholder until the Triggering Event has been rectified; provided
that we will not be granted the power and authority to dispose of or otherwise transfer the Special Voting Shareholder Securities
or to convert the Special Voting Shares. If a gaming authority orders that the Special Voting Shareholder’s securities be
sold or otherwise disposed of, a special trustee may be appointed who would have the authority to dispose of or transfer all but
not less than all of the Special Voting Shareholder’s securities, provided that the special trustee may only do so (i) at
a price that is not less than the value of the Special Voting Shareholder’s securities determined pursuant to a Valuation
Opinion, (ii) for cash proceeds, and (iii) in compliance with gaming laws.

 

    41

     

    

 

Our Articles also require all Subject Securityholders,
at our request, to provide a certificate of compliance in a form prescribed by us (a “Certificate of Compliance”)
certifying that no Triggering Event has or may occur by the acquisition of our securities by the Subject Securityholder. Failure
by a Subject Securityholder to provide the Certificate of Compliance shall result in a deemed Triggering Event and shall trigger
the same remedies as though that Subject Securityholder had caused a Triggering Event.

 

MARKET
FOR SECURITIES

 

During the period in which this AIF relates,
our Class A Shares traded on the TSXV. After receiving final approval to graduate to the TSX from the TSXV, our Class A
Shares commenced trading on the TSX at market open on September 15, 2020 under the existing ticker “SCR”. Our
Class A Shares were voluntarily delisted from the TSXV concurrently with the commencement of trading on the TSX. The following
sets forth the high and low market prices and the volume of the Class A Shares traded on the TSX Venture Exchange and TSX
during the periods indicated:

 

	Month
 
	 	High
 ($)
	 	 	Low
 ($)
	 	 	Trading Volume

 (shares)	 
	September 2019	 	 	0.92	 	 	 	0.57	 	 	 	9,382,616.00	 
	October 2019	 	 	0.70	 	 	 	0.51	 	 	 	4,713,561.00	 
	November 2019	 	 	0.77	 	 	 	0.56	 	 	 	4,006,222.00	 
	December 2019	 	 	0.76	 	 	 	0.65	 	 	 	3,739,780.00	 
	January 2020	 	 	0.87	 	 	 	0.63	 	 	 	9,216,697.00	 
	February 2020	 	 	0.78	 	 	 	0.55	 	 	 	4,475,920.00	 
	March 2020	 	 	0.66	 	 	 	0.28	 	 	 	8,094,321.00	 
	April 2020	 	 	0.47	 	 	 	0.34	 	 	 	7,617,264.00	 
	May 2020	 	 	0.62	 	 	 	0.42	 	 	 	6,613,298.00	 
	June 2020	 	 	1.06	 	 	 	0.57	 	 	 	29,643,751.00	 
	July 2020	 	 	0.84	 	 	 	0.66	 	 	 	9,800,324.00	 
	August 2020	 	 	0.72	 	 	 	0.60	 	 	 	12,959,360.00	 
	September 2020	 	 	0.87	 	 	 	0.55	 	 	 	20,075,839.00	 

 

The closing price for the Class A Shares listed on the
TSX on October 28, 2020 was $0.79.

 

DIRECTORS
AND OFFICERS

 

Name and Occupation

 

The following table sets out the names,
provinces and country of residence, positions with theScore, principal occupations in the past five years of each of our directors
and executive officers. The table also sets out the number of Special Voting Shares, Class A Shares and options beneficially
owned directly or indirectly or over which control or direction is exercised as of October 28, 2020 by each of our directors
and executive officers.

 

Information as to Class A Shares,
Special Voting Shares and options beneficially owned or over which control or direction is exercised, not being within our knowledge,
has been supplied by the respective individuals.

 

    42

     

    

 

	Name and Municipality
 of Residence	 	Principal Occupation
 During Past Five Years	 	Position with theScore	 	Securities of theScore
	 	 	 	 	 	 	 
	John Levy
 Ontario, Canada	 	Chairman of the Board and Chief Executive Officer of theScore  	 	Chairman of the Board and Chief Executive Officer

     

    (Director since August 30, 2012)
	 	5,566 Special Voting Shares, 77,745,750 Class A Shares and options to acquire 7,600,000 Class A Shares (4)
	 	 	 	 	 	 	 
	Ralph Lean, Q.C. (1)(2)(3)
 Ontario, Canada	 	Counsel, Gowling WLG (law firm - retired)  	 	Director

     

    (Director since October 18, 2012)
	 	216,115 Class A Shares and options to acquire 580,000 Class A Shares
	 	 	 	 	 	 	 
	John Albright

 Ontario, Canada	 	Managing Partner, Relay Ventures (venture capital company)	 	Director

     

    (Director since May 3, 2013)
	 	64,082,236 Class A Shares and options to acquire 540,000 Class A Shares(6)
	 	 	 	 	 	 	 
	Angela Ruggiero Weston,

 Massachusetts	 	CEO, Co-Founder, Sports Innovation Lab, Inc. (communication platform) (Dec. 2016 ndash; Present)

     

    Founder, Ruggiero Sports Ventures (consulting services) (Jan. 1998 –
    Present)

     

    Bridgewater Associates (investment management firm) (2014 – 2015)

     

    Los Angeles 2028 Bidding Committee 

(Olympic bid committee) (2016 – 2017)
	 	Director

     

    (Director since October 14, 2020)  
	 	NIL Class A Shares and options to acquire NIL Class A Shares
	 	 	 	 	 	 	 
	Mark Scholes (1)(2)(3)
 Ontario, Canada	 	Partner, Weisz, Rocchi  & Scholes (law firm)	 	Director

     

    (Director since October 18, 2012)
	 	227,847 Class A Shares and options to acquire 580,000 Class A Shares
	 	 	 	 	 	 	 
	William Thomson 

(1)(2) (3) Ontario, Canada	 	Managing Partner, Mercana Growth Partners (merchant banking company)	 	Director

     

    (Director since October 18, 2012)
	 	233,054 Class A Shares and options to acquire 580,000 Class A Shares
	 	 	 	 	 	 	 
	Brian Cooper 

Ontario, Canada	 	Chairman, MKTG Canada (marketing agency)	 	Director

     

    (Director since April 22, 2020)
	 	33,756 Class A Shares and options to acquire Nil Class A Shares  

 

    43

     

    

 

	Name and Municipality
 of Residence	 	Principal Occupation
 During Past Five Years	 	Position with theScore	 	Securities of theScore
	 	 	 	 	 	 	 
	
        Benjamin Levy

        Ontario, Canada
	 	
        President and Chief Operating Officer of theScore

         
	 	
        Director, President and Chief Operating Officer

         

        (Director since August 31, 2012)
	 	6,185,087 Class A Shares and options to acquire 4,000,000 Class A Shares(5)
	 	 	 	 	 	 	 
	Alvin Lobo

Ontario, Canada	 	
        SVP, Finance of Score Digital Sports Ventures Inc.
        (June 2019 – Sept. 2019)

         

        VP, Corporate Finance of Boyd Gaming Corporation (gaming and
hospitality company) (Sept. 2016 – June 2019)

         

        Director, Corporate Finance and Investor Relations of Wynn Resorts,
        Limited (hotel and casino developer and operator) (May 2014 – Sept. 2016)
	 	
        Chief Financial Officer

         

        (CFO since September 2019)
	 	83,305 Class A Shares and options to acquire 1,200,000 Class A Shares
	 	 	 	 	 	 	 
	Hecham Ghazal

Ontario, Canada	 	
        SVP, Engineering of theScore (Sept. 2018 – Sept.
        2019)

         

        VP, Engineering of theScore (May 2016 – Sept. 2018)

         

        Founder of Roller Inc. (start-up marketplace for service professionals)
(Jan. 2016 – May 2016)

         

        Director of Growth of WaveApps (financial services and
        software company) (April 2012 – Dec. 2015)
	 	
        Chief Technology Officer

         

        (CTO since September 2019)
	 	123,292 Class A Shares and options to acquire 2,900,000 Class A Shares

 

    44

     

    

 

	Name and Municipality
 of Residence	 	Principal Occupation
 During Past Five Years	 	Position with theScore	 	Securities of theScore
	 	 	 	 	 	 	 
	Joshua Sidsworth

        Ontario, Canada
	 	
        EVP, Corporate Development and General Counsel of NRT Group
        of Companies (cash management service-provider) (Sept. 2017 – Dec. 2019)

         

        VP Corporate Development of NRT Technology Corp. (cash
        management service-provider) (Aug. 2010 – Sept. 2017)
	 	
        General Counsel, Chief Compliance Officer and Corporate Secretary

         

        (GC & CCO since December 2019)
	 	92,427 Class A Shares and options to acquire 1,000,000 Class A Shares

 

		(1)	Member of the Human Resources and Compensation Committee (“HRC Committee”).

		(2)	Member of the Audit Committee.

		(3)	Member of the Nominating
and Corporate Governance Committee.

		(4)	5,566 Special Voting Shares and 70,972,802 Class A Shares are held by Levy Holdings; 5,662,088
Class A Shares are held by Norwest Video Inc. (“Norwest”); 1,110,860 Class A Shares are held by Mr. John
Levy directly. Norwest holds options to acquire 7,600,000 Class A Shares. Levy Holdings and Norwest are corporations controlled
by John Levy.

		(5)	4,250,000 Class A Shares are held by Benjie Levy Family Holdings Inc., a corporation controlled
by Mr. Benjamin Levy. Mr. Benjamin Levy also holds 1,935,087 Class A Shares directly and/or in trust for his children.
Mr. Benjamin Levy is a beneficiary of certain family trusts which hold an indirect interest in the shares controlled and directed
by Mr. John Levy (see note 4). He holds options to acquire 4,000,000 Class A Shares.

		(6)	43,258 Class A Shares and 540,000 options to acquire Class A Shares are held by John
Albright directly and 64,038,978 Class A Shares are held by Relay Ventures. John Albright co-directs Relay Ventures.

 

Each director will hold office until the
next annual meeting or until his successor is elected or appointed.

 

As of October 28, 2020, our directors
and executive officers as a group, beneficially own, directly or indirectly, or exercise control or direction over, an aggregate
of 149,023,243 Class A Shares, representing 37.2% of the issued and outstanding Class A Shares. Mr. John Levy, one
of our directors and officers, beneficially owns or controls 5,566 Special Voting Shares, representing 100% of the issued and outstanding
Special Voting Shares.

 

Cease Trade Orders, Bankruptcies, Penalties or Sanctions

 

John Albright was a director of Axios Mobile
Assets Corp. (“Axios”) until he resigned on January 10, 2017. On February 24, 2017, the Ontario Superior
Court of Justice granted an application of Axios’ senior lender to appoint a receiver and manager over the assets, undertakings
and property of Axios and its subsidiaries.

 

Conflicts of Interest

 

Mr. John Levy controls or directs
100% of the issued and outstanding Special Voting Shares, controls or directs approximately 19.4% of the outstanding Class A
Shares. As a result of the Special Voting Shares, Mr. Levy controls us and is entitled to nominate a majority of the members
of the Board and he has the ability to influence the outcome of matters submitted to our shareholders for approval, which include
amendments to our corporate governing documents and business combinations. Our interests and the interests of other shareholders
may at times conflict with those of Mr. Levy, and this conflict might be resolved against our interests and the interests
of other shareholders. Due to the shareholdings and contractual rights of Mr. Levy and Levy Holdings in the Respective Rights
Agreement, Mr. Levy will be in a position to determine whether we or our operations are acquired by a third-party, to significantly
influence the election of the Board and the board of directors of our subsidiaries and to generally direct our affairs.

 

    45

     

    

 

 

Audit
Committee

 

Audit Committee

 

Our Audit Committee is responsible for
monitoring our accounting and financial reporting practices and procedures, the adequacy of internal accounting controls and procedures,
the quality and integrity of financial statements and for overseeing the external audit.

 

The Audit Committee is composed of three
directors, Ralph Lean, Q.C., Mark Scholes and William Thomson, each of whom is considered to be “independent” as defined
in National Instrument 52-110 — Audit Committees (“NI 52-110”). Each member of the Audit Committee
is considered to be “financially literate” within the meaning of NI 52-110 which includes the ability to read and understand
a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable
to the breadth and complexity of our financial statements.

 

The Audit Committee Charter and Terms of
Reference are attached as Schedule A to this AIF.

 

Relevant Education and Experience

 

The relevant education and experience of each of the members
of the Audit Committee is as follows:

 

	Member	 	 	Relevant Education and Experience
	William Thomson	 	·	Chairman of Score Media Audit Committee.
	 	 	 	 
	 	 	·	Currently the Managing Partner of Mercana Growth Partners, a merchant banking company specializing in the areas of finance, leadership, strategic alliances and corporate development.
	 	 	 	 
	 	 	·	Chartered Accountant.
	 	 	 	 
	 	 	·	Experience preparing, analyzing and evaluating financial statements having a breadth and level of complexity similar to or more complex than those of theScore.
	 	 	 	 
	 	 	·	Practical knowledge of internal controls and procedures for financial reporting.
	 	 	 	 
	Mark Scholes	 	·	Member of Score Media Audit Committee.
	 	 	 	 
	 	 	·	Partner with the law firm of Weisz, Rocchi & Scholes with a practice consisting primarily of Commercial Real Estate transactions, where the guidance he provided to clients includes advice relating to the financial aspects of real estate.
	 	 	 	 
	 	 	·	Bachelor of Laws Degree obtained from the University of Toronto, and a Bachelor of Arts Degree in Business from McMaster University, with major emphasis in accounting.
	 	 	 	 
	 	 	·	Past Treasurer for a medium sized charitable institution in Hamilton, Ontario.
	 	 	 	 
	Ralph Lean, Q.C.	 	·	Member of Score Media Audit Committee.
	 	 	 	 
	 	 	·	Counsel at GowlingWLG, Counsel at Heenan Blaikie LLP, and Partner at Cassels, Brock and Blackwell LLP for over 20 years, specializing in corporate law
	 	 	 	 
	 	 	·	
        Bachelor
        of Laws degree from Osgoode Hall Law School and a Bachelor's degree in Business Administration from the University of Western Ontario.

        

 

Pre-Approval Policies and Procedures

 

In accordance with the relevant independence
rules and related interpretations prescribed by the relevant professional bodies in Canada, we are restricted from engaging
auditors to provide certain non-audit services to us and our subsidiaries, including bookkeeping or other services related to the
accounting records or financial statements, information technology services, valuation services, actuarial services, internal audit
services, corporate finance services, management functions, resource functions, legal services and expert services unrelated to
the audit.

 

    46

     

    

 

The Audit Committee has established a process
to pre-approve audit, audit-related and non-audit services of our external auditor. Annually, our management provides the Audit
Committee with a list of the audit-related and non-audit services that are anticipated to be provided during the year for pre-approval.
The Audit Committee reviews the services with the auditor and our management and considers whether the provision of the service
is compatible with maintaining the auditor’s independence. Our management may engage the auditor for specific engagements
that are included in the list of preapproved services. The Audit Committee delegates authority to the Chair of the Audit Committee
to approve requests for services not included in the pre-approved list of services or for services not previously pre-approved
by the Audit Committee. Any services approved by the Chair will be reported to the full Audit and Risk Committee at the next meeting.
A review of all audit and non-audit services and fees rendered to us by KPMG LLP is reviewed by the Audit Committee.

 

External Auditor Service Fees

 

Our consolidated financial statements for
the year ended August 31, 2020 and 2019 have been audited by KPMG LLP. The amounts paid by us to our external auditors in
the last two fiscal years are set out below. The Audit Committee considered and agreed that the services covered by these fees
are compatible with maintaining the independence of our auditors. Audit fees consist of fees related to the audit of the consolidated
financial statements and interim reviews. Audit related fees includes fees for procedures related to prospectus and related assistance
to underwriters. Tax fees relate principally to fees associated with assistance related to tax compliance requirements and certain
tax credit filings.

 

	Category	 	Fiscal Year Ended August 31, 2020^	 	 	Fiscal Year Ended August 31, 2019	 
	Audit Fees	 	$	357,360	 	 	$	253,800	 
	Audit Related Fees	 	$	91,800	 	 	 	NIL	 
	Tax Fees	 	$	65,880	 	 	$	61,345	 
	All Other Fees	 	 	NIL	 	 	 	NIL	 
	Total	 	$	515,060	 	 	$	315,145	 

 

^Amounts for fiscal
year ended August 31, 2020 include reimbursed costs and support charges incurred in connection with the services.

 

LEGAL
PROCEEDINGS

 

We are not aware of any material legal
proceedings that we are a party to, or that any of our properties is or was the subject of, during the fiscal year ended August 31,
2020.

 

INTEREST
OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

 

None of our directors or executive officers
or any person that beneficially owns or controls, directly or indirectly, 10% or more of the issued and outstanding Class A
Shares or Special Voting Shares or associate or affiliate of any such director or executive officer or 10% shareholder has any
material interest, direct or indirect, in any transaction within our most recently completed financial year or within the current
financial year that has materially affected or would materially affect us.

 

Registrar
and Transfer Agent

 

Our registrar and transfer agent is Computershare
Trust Company of Canada, at its principal office located at 100 University Avenue, North Tower, 8th floor, Toronto,
Ontario.

 

    47

     

    

 

MATERIAL
CONTRACTS

 

The only material contracts we or any of
our predecessors entered into during the year ended August 31, 2020 (or prior thereto and which are still in effect) are as
follows:

 

Respective Rights Agreement

 

On August 30, 2019, we entered into
a third amended and restated respective rights agreement (the “Respective Rights Agreement”) with John Levy
Family Holdings Ltd. (“Levy Holdings”) and Mr. John Levy. Levy Holdings is controlled by Mr. John
Levy.

 

Pursuant to the Respective Rights Agreement,
Levy Holdings has a contractual pre-emptive right which entitles it to subscribe for a pro rata share of any Class A
Shares or Special Voting Shares issued by us. In addition, the Special Voting Shares owned by Levy Holdings will be deemed to have
been converted to Class A Shares if at any time the number of Class A Shares owned by Levy Holdings and its affiliates,
in the aggregate, is less than the Threshold Amount except (a) on a sale of all of the Special Voting Shares and at least
50% of the Class A Shares owned by Levy Holdings in a transaction or series of related transactions, and (b) where Levy
Holdings is subject to a Triggering Event.

 

“Threshold Amount” is
defined in the Respective Rights Agreement to mean 12,000,000 Class A Shares adjusted for: (i) all Class A Subordinate
Voting Share Reorganizations (as hereinafter defined) if, at the close of the principal stock market on which the Class A
Shares are traded on the date of declaration of any such Class A Subordinate Voting Share Reorganization, we have a market
capitalization of less than $500 million; and (ii) for all reductions, combinations, consolidations or changes of the Class A
Shares into a lesser number of Class A Shares if at the close of the principal stock market on which the Class A Shares
are traded on the date of declaration of any such reduction, combination, consolidation or change we have a market capitalization
of $500 million or more.

 

“Class A Subordinate Voting
Share Reorganization” is defined in the Respective Rights Agreement to mean any: (i) subdivision, redivision or
change of the outstanding Class A Shares into a greater number of Class A Shares; (ii) reduction, combination, consolidation
or change of the outstanding Class A Shares into a lesser number of Class A Shares; or (iii) issuance of Class A
Shares (or securities, including debt, convertible into or exchangeable for Class A Shares or rights, options or warrants
to acquire Class A Shares) to the holders of all or substantially all of the then outstanding Class A Shares by way of
stock dividend or other distribution.

 

Pursuant to the Respective Rights Agreement,
each of Levy Holdings and its affiliates has the right to request that we file, at the expense of the requesting party, a prospectus
for the sale in any provinces of Canada of all or any Class A Shares owned by them provided that such request must be in respect
of Class A Shares with a fair market value of at least $5 million. Any such request may be pre-empted by us if we identify
a specific business need and use for the proceeds of the sale of such securities and we use commercially reasonable efforts to
effect a treasury offering within 60 days of the exercise of this pre-emptive right. In addition, in any public offering (whether
a treasury offering or a secondary offering) made by us, Levy Holdings and its affiliates are entitled to an unlimited right to
sell Class A Shares owned by them as part of that public offering, provided that we and the underwriters can reduce the number
of shares proposed to be sold by Levy Holdings and its affiliates in view of market conditions.

 

Pursuant to the Respective Rights Agreement,
Mr. John Levy agreed that, so long as he controls us and is actively involved in its management, he will not: (i) carry
on any business activities that are competitive with the business of us and our subsidiaries; and/or (ii) own any interest
in or provide financial or managerial assistance to any entity that is primarily engaged in the business of, or whose assets or
properties are significantly comprised of, digital sports media, except as follows: (i) passive investment in shares of a
public company of not more than 5% of the outstanding equity; (ii) entities in which the HRC Committee has asked him to take
an interest as director, officer or similar capacity on behalf of us or for our benefit; (iii) any business in which he had
an ownership interest as of May 9, 2014; and (iv) any investment that he has recommended to the Board as an investment
for us which the Board and the HRC Committee has decided not to make; provided that the making of any such investment does not
impede the performance by him of his duties and responsibilities as our officer and he does not become actively involved in the
management of any such investment.

 

    48

     

    

 

Management Services Agreement

 

Mr. John Levy, Chairman and Chief
Executive Officer, and his services are made available to us by Norwest Video Inc. (“Norwest”) (a corporation
controlled by Mr. John Levy). We entered into a management services agreement with Norwest and Mr. John Levy effective
April 11, 2018. It had a term of approximately two years and provided that Norwest was entitled to a basic management services
fee of $640,000 per year between September 1, 2018 and August 31, 2020, the date upon which it expired. We entered into
a new management services agreement (“Management Services Agreement”) with Norwest and Mr. John Levy effective
September 1, 2020. It has a term of one year and provides that Norwest is entitled to a basic management services fee of $640,000
between September 1, 2020 and August 31, 2021.

 

In addition, Norwest is entitled to participate
in an annual bonus pool in an amount to be determined annually by the HRC Committee and to participate in any long-term incentive
plan, our stock option and restricted share unit plan, our employee share purchase plan, our RRSP contribution program and any
similar plan created by us in the manner and to the extent authorized by the Board. Norwest is also entitled to reimbursement for
certain expenses incurred on our behalf by Mr. John Levy, including reasonable travel and other out-of-pocket expenses provided
such expenses were actually and properly incurred by Mr. John Levy in connection with management of our business.

 

We are able to terminate the Management
Services Agreement at any time upon payment to Norwest of two times the sum of (i) the highest annual basic management fee
earned in any one of the three most recently completed fiscal years and the highest bonus fees earned in any one of the three most
recently completed fiscal years, and (ii) accelerated vesting of all options which will vest within twelve months of the termination
date.

 

The Management Services Agreement provides
that Mr. John Levy will not, during the term of the Management Services Agreement, (i) carry on any business activities
that are competitive with our business; and/or (ii) own any interest in or provide financial or managerial assistance to any
entity that is primarily engaged in the business of, or whose assets or properties are significantly comprised of, digital sports
media, except as follows: (i) passive investment in shares of a public company of not more than 5% of the outstanding equity;
(ii) entities in which the HRC Committee has asked him to take an interest as director, officer or similar capacity on our
behalf or for our benefit; (iii) any business in which he had a prior ownership interest; and (iv) any investment that
he has recommended to the Board as an investment for us which the Board and the HRC Committee has decided not to make.

 

Board Nomination Agreement

 

We entered into a board nomination agreement
(the “Board Nomination Agreement”) with certain Relay Ventures’ funds on May 3, 2013 that was amended
on July 15, 2019. The Board Nomination Agreement provides Relay Ventures with the right to designate one of certain specified
individuals to be included among the Board’s nominees as directors at each meeting of our shareholders at which directors
are to be elected by the holders of the Class A Shares for so long as Relay Ventures holds at least 7.5% of the outstanding
Class A Shares. Relay Ventures’ co-founder and managing partner, John Albright, was appointed to the Board on May 3,
2013 pursuant to the Board Nomination Agreement.

 

The Board Nomination Agreement requires
Relay Ventures to vote the Class A Shares controlled or beneficially held by Relay Ventures or its affiliates in favour of
the Board’s slate of nominees for election as directors at each meeting of our shareholders at which directors are to be
elected provided that the Relay Nominee has been nominated in accordance with the Board Nomination Agreement. In addition, Mr. John
Levy agreed to vote or cause to be voted all Class A Shares controlled or beneficially owned by him or his affiliates in favour
of the Relay Nominee for election as a director at each meeting of our shareholders at which directors are to be elected provided
the Relay Nominee has been nominated in accordance with the Board Nomination Agreement.

 

Relay Ventures Pre-emptive Rights Agreement

 

We also entered into a pre-emptive rights
agreement (the “Pre-emptive Rights Agreement”) with certain Relay Ventures funds on May 3, 2013. The Pre-emptive
Rights Agreement provides Relay Ventures, so long as it holds a minimum of a 5% equity interest in us (on a non-diluted basis),
with pre-emptive rights to co-subscribe on any future equity issuance by us subject to customary exclusions for the issuance of
shares under stock incentive plans or in connection with arm’s length acquisitions and similar transactions, to maintain
its proportional equity interest at the relevant time.

 

    49

     

    

 

Coat Tail Agreement

 

For a summary of the terms of the Coat
Tail Agreement, see “DESCRIPTION OF CAPITAL STRUCTURE – Special Voting Shares”.

 

Investment Agreement and Convertible Debenture

 

We entered into an investment agreement
on August 31, 2019 (the “Investment Agreement”) with a fund managed and controlled by Fengate Asset Management
(the “Fund”) pursuant to which the Fund agreed to purchase a $40,000,000 8.00% convertible unsecured subordinated
debenture due August 31, 2024 (the “Convertible Debenture”) on a private placement basis. We issued the
Convertible Debenture to the Fund on September 5, 2019.

 

The Convertible Debenture matures on August 31,
2024 and accrues interest at the rate of 8.00% per annum payable semi-annually on the last day of February and August of
each year commencing on February 29, 2020. At the holder’s option, the Convertible Debenture may be converted into our
Class A Shares at any time prior to the close of business on the earlier of the business day immediately preceding the maturity
date and the business day immediately preceding the date fixed for redemption of the Convertible Debenture. The conversion price
will be $0.75 for each Class A Share, being a conversion rate of 1,333.3333 Class A Shares issuable for each $1,000 principal
amount of the Convertible Debenture, subject to adjustment in certain circumstances.

 

Subject to specified conditions, we may
force the conversion of the Convertible Debenture into Class A Shares if the volume weighted average trading price of our
Class A Shares during the 20 trading days ending on the fifth trading day preceding the date on which notice of the forced
conversion is given is not less than 125% of the conversion price at any time (i) after August 31, 2021, or (ii) if
the principal sum of the Convertible Debenture outstanding is $4,000,000 or less.

 

Subject to specified conditions, the Convertible
Debenture may be redeemed at our option at par plus accrued and unpaid interest at any time (i) after August 31, 2023
if the volume weighted average trading price of our Class A Shares during the 20 trading days ending on the fifth trading
day preceding the date on which notice of the redemption is given is not less than 125% of the conversion price, or (ii) if
the principal sum of the Convertible Debenture outstanding is $4,000,000 or less.

 

Subject to specified conditions and subject
to any required regulatory and/or stock exchange or marketplace approvals, we are entitled to repay all or a portion of the outstanding
principal amount of the Convertible Debenture on maturity by issuing that number of our Class A Shares equal to the quotient
obtained by dividing the applicable portion of the principal amount to be repaid in Class A Shares by 85% of the volume weighted
average trading price of our Class A Shares during the 20 trading days ending on the fifth trading day preceding the maturity
date.

 

Until August 31, 2021, we are also
entitled to satisfy our obligation to pay interest by adding the amount of the applicable interest payment to the principal amount
of the Convertible Debenture. The interest added to the principal amount of the Convertible Debenture will be convertible into
Class A Shares in accordance with the conversion features of the Convertible Debenture, subject to the requirements of any
regulatory and/or stock exchange or marketplace at the time of conversion.

 

Upon the occurrence of a change of control
of theScore or the sale by us of our core assets, we will be required to make an offer to purchase the Convertible Debenture at
a price equal to 105% of the principal amount plus accrued and unpaid interest.

 

The Convertible Debenture includes certain
provisions to ensure we comply with applicable gaming regulations. Upon the occurrence of certain Triggering Events, we can require
the holder of the Convertible Debenture to deposit the Convertible Debenture into escrow with us until the Triggering Event is
cured or rectified (and we are prohibited from exercising our rights under our Articles to force a sale or repurchase of the Convertible
Debenture). If certain adverse regulatory events occur while we are holding the Convertible Debenture in escrow, the Convertible
Debenture will cease to be convertible into Class A Shares, and we will redeem the Convertible Debenture for 100% of the principal
amount plus accrued and unpaid interest (to the date of the adverse regulatory event).

 

    50

     

    

 

The Investment Agreement provides the Fund
with certain rights including (i) a right to participate in future equity offerings to maintain its pro rata equity interest
for so long as the Convertible Debenture is outstanding (or, following conversion, for so long as the Fund and its affiliates hold
at least 5% of the outstanding Class A Shares), (ii) a right of first refusal over certain future debt financings for
so long as the Convertible Debenture is outstanding, (iii) a right to nominate one individual to serve on our board of directors
(or, if such right is not exercised, the right to designate a board observer) for so long as the Convertible Debenture is outstanding
(or, following conversion, for so long as the Fund and its affiliates hold at least 7.5% of the outstanding Class A Shares)
and (iv) a demand registration right to sell all of its Class A Shares. The Fund is also restricted from selling any
Class A Shares acquired upon conversion of the Convertible Debenture to certain of our competitors without first complying
with a right of first refusal in our favour.

 

INTEREST
OF EXPERTS

 

KPMG LLP are our auditors and have confirmed
that they are independent of theScore in accordance with the ethical requirements that are relevant to the audit of the financial
statements in Canada.

 

ADDITIONAL
INFORMATION

 

Additional information relating to us may
be found on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.

 

Additional information, including directors'
and officers' remuneration and indebtedness, principal holders of our securities, and securities authorized for issuance under
equity compensation plans is contained in our management information circular for our most recent annual meeting of shareholders
that involved the election of directors, which may be found on SEDAR at www.sedar.com.

 

Additional financial information is contained
in our consolidated financial statements as at and for the years ended August 31, 2020 and 2019 and our MD&A for the year
ended August 31, 2020 and may be found on SEDAR at www.sedar.com.

 

    51

     

    

 

SCHEDULE
A

 

SCORE MEDIA AND GAMING INC.

AUDIT COMMITTEE CHARTER

 

		A.	Audit Committee Purpose

 

The Audit Committee (the “Committee”)
is a committee of the board of directors (the “Board”) of Score Media and Gaming Inc. (the “Corporation”)
whose primary function is to assist the Board in assessing the effectiveness of the accounting and financial reporting principles
and policies and internal controls and procedures that provide for compliance with accounting standards and applicable laws and
regulations.

 

		B.	Committee Composition, Appointment and Procedures

 

Structure
and Composition of Committee

 

The Committee shall be comprised
of not less than three directors, all of whom must be independent directors in accordance with applicable regulatory and stock
exchange requirements.

 

Financial
Literacy

 

All members of the Committee
shall have the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting
issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by
the financial statements of the Corporation.

 

Appointment
of Committee Members

 

Members of the Committee shall
be appointed from time to time and shall hold office at the pleasure of the Board, upon the recommendation of the Nominating and
Corporate Governance Committee.

 

 Vacancies

 

Where a vacancy
occurs at any time in the membership of the Committee, it may be filled by the Board; and

 

The Board
shall fill any vacancy if the membership of the Committee is less than three Directors.

 

Committee
Chairman

 

The Board shall appoint a Chairman
for the Committee.

 

Absence
of Committee Chairman

 

If the Chairman of the Committee
is not present at any meeting of the Committee, one of the other members of the Committee who is present at the meeting shall be
chosen by the Committee to preside at the meeting.

 

Secretary
of Committee

 

The Committee shall appoint its
own secretary, who shall serve as the secretary of the Committee.

 

    52

     

    

 

 Meetings

 

The Chairman
of the Committee or the Chairman of the Board, or any two members of the Committee may call a meeting of the Committee;

 

The Committee
shall meet at such times during each year as it deems appropriate;

 

The Committee
will ordinarily meet in camera at the end of each of its formal meetings and may meet in camera at any other time as required;

 

There shall
be four senior management personnel available for meetings of the Committee at the invitation of the Chairman of the Committee.
These four persons will be those holding the positions of Chief Executive Officer, Chief Financial Officer, Chief Operating Officer,
and Corporate Secretary; and

 

Representatives
of the external auditors shall be available for Committee meetings at the invitation of the Chairman of the Committee.

 

 Quorum

 

A majority of the members of the Committee shall constitute
a quorum.

 

Notice of
Meetings

 

Notice of
the time and place of every meeting shall be given in writing (including by way of written facsimile or electronic communication)
to each member of the Committee at least 24 hours prior to the time fixed for such meeting; provided, however, that a member may
in any manner waive a notice of a meeting; and

 

Attendance
of a member at a meeting constitutes a waiver of notice of the meeting except where a member attends a meeting for the express
purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called.

 

Review of
Charter

 

The Committee shall review its performance and this
Charter annually or otherwise as it deems appropriate and propose recommended changes to the Board.

 

		C.	Responsibilities of the Committee

 

		12.	The Committee shall:

 

Review all
quarterly unaudited and annual audited financial statements and accompanying reports to the shareholders, MD&A, related annual
and interim earnings press releases, earnings guidance disclosure or any other disclosure based on the Corporation’s financial
statements prior to the release of those statements;

 

Make recommendations
to the Board for approval with respect to the annual audited financial statements and, in each case, review:

 

The appropriateness
of the Corporation's significant accounting principles and practices, including acceptable alternatives, and the appropriateness
of any significant changes in accounting principles and practices;

 

The existence
and substance of significant accruals, estimates, or accounting judgements, and the level of conservatism;

 

Unusual
or extraordinary items, transactions with related parties, and adequacy of disclosures;

 

Asset and
liability carrying values;

 

    53

     

    

 

Income tax
status and related reserves;

 

Qualifications
contained in letters of representation;

 

Assurances
of compliance with covenants in trust deeds or loan agreements;

 

Business
risks, uncertainties, commitments, litigation and contingent liabilities;

 

The adequacy
of explanations for significant financial variances between years;

 

The adequacy
of control systems utilized by the Corporation; and

 

Material
valuation issues.

 

Review the
Corporation's Annual Information Form (if any), management proxy circular and annual report and make a recommendation for
approval thereof to the Board.

 

Oversee the
external audit process, including:

 

The selection
and appointment of an auditing firm to conduct the annual audit of the Corporation’s annual financial statements and review
of the Corporation’s quarterly financial statements (and related notes and management’s discussion and analysis in
each case);

 

Assess the
independence of the appointed auditing firm;

 

Review of
the external audit plan comprising a fee estimate, objectives, scope, materiality, timing and areas of audit risk;

 

Review of
audit reports and reviews and findings, including corresponding management responses;

 

Approve
the audit fee;

 

Establish,
from time to time, pre-approval arrangements for specific categories of permitted audit related services; and

 

Private
discussions regarding the quality of financial personnel, the level of co-operation received and unresolved material differences
of opinion or disputes.

 

Oversee the
external non-audit process, including:

 

Approving
the nature of any non-audit services provided and any material mandates by the auditing firm to the Corporation or its subsidiary
entities, the fees charged by the firm for such services and the impact on the independence of the auditor provided that the auditing
firm is prohibited from providing appraisal or valuation services, fairness opinions, actuarial services, internal audit outsourcing
services, management functions or human resources, bookkeeping or other services relating to the accounting records or financial
statements of the Corporation or financial information systems designed in implementation; and

 

Information
as to the non-audit services provided by the auditing firm, the fees charged by the firm for such services and the impact on the
independence of the auditor.

 

Review incidents
of fraud, illegal acts and conflicts of interest;

 

Review cases
where management has sought accounting advice on a specific issue from an accounting firm other than the one appointed as auditor;

 

    54

     

    

 

Establish
financial whistle blowing procedures for:

 

receipt,
retention and treatment of complaints received by the Corporation regarding accounting, internal accounting controls, or auditing
matters; and

 

confidential,
anonymous submission by employees of the Corporation of concerns regarding questionable accounting or auditing matters; and

 

Review and
approve the Corporation’s hiring policies regarding partners, employees and former partners and employees of the present
and former external auditor of the Corporation.

 

The Committee
may, at the request of the Board, investigate such other matters as the Board considers appropriate in the circumstances.

 

		D.	Resources, Meetings and Reports

 

		14.	The Committee shall have adequate resources to discharge its responsibilities. The Committee may,
for and on behalf of the Corporation and at the Corporation’s sole expense, engage such consultants as it considers in its
sole discretion necessary to assist it in fulfilling its duties and responsibilities.

 

The Committee
shall meet not less than four times per year.

 

The meetings
of the Committee shall ordinarily include the auditors and the Chairman of the Board shall be an ex officio member of the Committee
if not otherwise appointed as a member of the Committee. The Committee may request the attendance of other officers at its meetings
from time to time.

 

The Board
shall be kept informed of the Committee's activities by a report presented at the Board meeting following each Committee meeting.

 

The Committee
shall keep minutes of its meetings in which shall be recorded all actions taken by the Committee which minutes shall be made available
to the Board.

 

The members
of the Committee shall have the right, for the purposes of discharging the powers and responsibilities of the Committee, to inspect
any relevant records of the Corporation and its subsidiaries.

 

    55

     

    

 

SCORE MEDIA AND GAMING INC.

(the “Corporation”)

 

TERMS OF REFERENCE FOR THE CHAIRMAN OF
THE AUDIT COMMITTEE

 

	Title:	Chairman (the “Chair”) of the Audit Committee (the “Committee”)
	 	 
	Appointment:	The Chair is a financially literate Director of the Corporation who is elected as a Director by the Corporation’s shareholders and is appointed by the other directors annually as a member of the Committee. The Chair is an independent Director in accordance with applicable regulatory and stock exchange requirements. The Chair is appointed by the members of the Board of Directors (the “Board”) and serves in this role at the pleasure of the Board
	 	 
	Reports:	The Chair maintains open communication with the Chairman of the Board. The Chair has unfettered two-way communication with all senior officers and the Corporation’s auditor.
	 	 
	Function:	The Chair’s primary role includes ensuring that the Committee functions properly, that it meets its obligations and responsibilities, and that its organization and mechanisms are in place and are working effectively. 

 

		A.	Key Responsibilities:

 

Provides
leadership to the Committee with respect to its functions as described in the Committee’s written mandate and as otherwise
may be appropriate, including overseeing the logistics of the operations of the Committee.

 

Calls and
chairs meetings of the Committee. Meetings of the Committee may also be called by the Chairman of the Board or any two members
of the Committee.

 

Ensures
that the Committee meets on a regular basis and at least quarterly.

 

In consultation
with the Chairman of the Board, the Chief Financial Officer and the Committee members, establishes a calendar for holding meetings
of and sets the agendas for the meetings of the Committee.

 

In collaboration
with the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer and the Secretary ensures that agenda
items for all Committee meetings are ready for presentation and that adequate information is distributed to Committee members in
advance of such meetings in order that Committee members may properly inform themselves on matters to be acted upon.

 

Assigns
work to Committee members.

 

Acts as
liaison and maintains communication with the Chairman of the Board and the Board to optimize and co-ordinate input from Directors,
and to optimize effectiveness of the Committee. This includes reporting regularly to the full Board on all proceedings and deliberations
of the Committee. Such reports shall be made not less frequently than quarterly.

 

Ensures
that the Committee receives adequate and regular updates from the management on all issues relating to audits, financial statements,
MD&A, annual and interim earnings, press releases, procedures for disclosure of financial information and disclosure controls.

 

Meets separately
as required with management to optimize his liaison function and to ensure efficient communication between management and the Committee.

 

Meets separately
as required with the Corporation’s auditor to ensure that the Committee has the information required to perform its role
of oversight in line with its mandate.

 

Pre-approves
non-audit services not prohibited by law to be performed by the Corporation’s auditor in conformity with the terms of any
authorization delegated to him by the Committee.

 

Reports
annually to the Committee on the role of the Chair and the effectiveness of the Chair role in contributing to the objectives and
responsibilities of the Committee as a whole.

 

Reports
annually to the Board on the role of the Committee and the effectiveness of the Committee role in contributing to the objectives
and responsibilities of the Board as a whole.

 

    56

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