Document:

Exhibit 10.3

 

RIGHT OF FIRST REFUSAL

AND DISTRIBUTION AGREEMENT

 

THIS RIGHT OF FIRST REFUSAL
AND DISTRIBUTION AGREEMENT (this “Agreement”), is made as of the ______, 2022 by and among TGS Esports Inc., a British
Columbia corporation publicly traded on the TSX Venture Exchange (TSXV:TGS) (the “Company”) and NextPlay Technologies,
Inc., a Nevada corporation publicly traded on the Nasdaq Capital Market (Nasdaq: NXTP) (the “Investor”).

 

WHEREAS, Investor is
the beneficial owner of shares of Preferred Shares of the Company;

 

WHEREAS, the Company
and the Investor are parties to that certain Securities Exchange Agreement, of even date herewith (the “Purchase Agreement”),
pursuant to which the Investor agreed to purchase convertible preferred shares of the Company (the “Preferred Shares”);
and

 

WHEREAS, the Company
and Investor agree to further restrict the Preferred Shares to provide the Company with the rights and privileges set forth herein.

 

NOW, THEREFORE,
the Company and the Investor agree as follows:

 

		1.	Definitions. 
“Affiliate” means, with respect to any specified Person, any other Person who directly or indirectly, controls, is
controlled by or is under common control with such Person, including, without limitation, any general partner, managing member, officer,
director or trustee of such Person, or any venture capital fund or registered investment company now or hereafter existing which is controlled
by one or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser
with, such Person.

 

	 	(b)	 “Applicable Law” means, with respect to any Person, any and all applicable law (statutory, common or otherwise),
constitution, treaty, convention, ordinance, code, rule, regulation, award, Order, injunction, judgment, decree, ruling or other similar
requirement, whether domestic or foreign, enacted, adopted, promulgated, rendered, issued, ordered or applied by a governmental entity
that is binding upon or otherwise applicable to such person or its business, undertaking, property or securities, and to the extent that
they have the force of law, policies, guidelines, notices and protocols of any governmental entity, as amended unless expressly specified
otherwise.
	 	 	 
		(c)	“Board of Directors” means the board of directors
of the Company.
	 	 	 

		(d)	“Capital Stock” means (a) Common Shares
and Preferred Shares (whether now outstanding or hereafter issued in any context), (b) Common Shares issued or issuable upon conversion
of Preferred Shares, in each case now owned or subsequently acquired by Investor or its successors.
	 	 	 

     

     

    

 

		(e)	“Common Shares” means Common Shares of the
Company.
	 	 	 

		(f)	“Company Notice” means written notice from
the Company notifying the Investor that the Company intends to exercise its Right of First Refusal as to some or all of the Transfer
Stock with respect to any Proposed Investor Transfer.
	 	 	 

		(g)	“Conversion” means the conversion of Preferred
Shares into Common Shares by Investor as governed by Article 24.6 of the Preferred Share Certificate.
	 	 	 

		(h)	“Distribution” means the disposition by the
Investor of Company Common Shares upon a Conversion to the Investor’s Record Holders.
	 	 	 

		(i)	“Distribution Date” means the date on which
the Distribution occurs.
	 	 	 

		(j)	“Distribution Effective Time” means the time
established by the board of directors of Investor as the effective time of the Distribution on the Distribution Date.
	 	 	 

		(k)	“Investor” means the signatory hereto.
	 	 	 

		(l)	“Investor Common Stock” means the common
stock of Investor.
	 	 	 

		(m)	“Preferred Shares” means the Company’s
Preferred Shares as set forth in the Preferred Share Certificate.
	 	 	 

		(n)	“Preferred Share Certificate” means the Company’s
Preferred Share Certificate, as amended and/or restated from time to time.
	 	 	 

		(o)	“Proposed Investor Transfer” means any assignment,
sale, offer to sell, pledge, mortgage, hypothecation, encumbrance, disposition of or any other like transfer or encumbering of any Transfer
Stock (or any interest therein) proposed by Investor.
	 	 	 

		(p)	“Proposed Transfer Notice” means written
notice from the Investor setting forth the terms and conditions of a Proposed Investor Transfer.
	 	 	 

		(q)	“Prospective Transferee” means any person
to whom the Investor proposes to make a Proposed Investor Transfer.
	 	 	 

		(r)	“Record Date” means the time and date to
be determined by the board of directors of Investor as the record date for determining the holders of shares of Investor Common Stock
entitled to receive Common Shares of the Company in the Distribution.
	 	 	 

		(s)	“Record Holder(s)” means a person whose name
is registered on the books of the Investor as a holder of record of Investor Common Stock as of the Record Date.
	 	 	 

		(t)	“Right of First Refusal” means the right,
but not an obligation, of the Company, or its permitted transferees or assigns, to purchase some or all of the Transfer Stock with respect
to a Proposed Investor Transfer, on the terms and conditions specified in the Proposed Transfer Notice.
	 	 	 
	 	(u)	“Transfer Stock” means Preferred
                                            Shares owned by the Investor, or issued to Investor after the date hereof (including, without
                                            limitation, in connection with any stock split, stock dividend, recapitalization, reorganization,
                                            or the like), but does not include any Preferred Shares or Common Shares that are issued
                                            or issuable upon Conversion.

 

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		2.	Agreement Between
the Company and Investor. 

 

	 	(a)	Right of First Refusal.

 

		(i)	Grant. Subject to the terms of Section 3
below, Investor hereby unconditionally and irrevocably grants to the Company a Right of First Refusal to purchase all or any portion
of Transfer Stock that Investor may propose to transfer in a Proposed Investor Transfer, at the same price and on the same terms and
conditions as those offered to the Prospective Transferee.
	 	 	 

		(ii)	Notice. If proposing to make a Proposed Transfer,
Investor must deliver a Proposed Transfer Notice to the Company not later than forty-five (45) days prior to the consummation of such
Proposed Investor Transfer. Such Proposed Transfer Notice shall contain the material terms and conditions (including price and form of
consideration) of the Proposed Investor Transfer, the identity of the Prospective Transferee and the intended date of the Proposed Investor
Transfer. To exercise its Right of First Refusal under this Section 2, the Company must deliver a Company Notice to the selling
Investor within fifteen (15) days after delivery of the Proposed Transfer Notice specifying the number of shares of Transfer Stock to
be purchased by the Company.
	 	 	 

		(iii)	Forfeiture of Rights. If the Company does not deliver
the Company Notice, then the Company shall be deemed to have forfeited any right to purchase such Transfer Stock, and the Investor shall
be free to sell all, but not less than all, of the Transfer Stock to the Prospective Transferee on terms and conditions substantially
similar to (and not more favorable to the Prospective Transferee than) the terms and conditions set forth in the Proposed Transfer Notice,
it being understood and agreed that (i) any such sale or transfer shall be subject to compliance with (A) Applicable Law and the rules
of the TSXV and any other applicable stock exchange on which any of shares of the Capital Stock are listed and (B) the other terms and
restrictions of this Agreement, including, without limitation, the terms and restrictions set forth in Subsections 2.2 and
6.9(b); (ii) any future Proposed Investor Transfer shall remain subject to the terms and conditions of this Agreement, including
this Section 2; and (iii) such sale shall be consummated within forty-five (45) days after receipt of the Proposed Transfer
Notice by the Company and, if such sale is not consummated within such forty-five (45) day period, such sale shall again become subject
to the Right of First Refusal on the terms set forth herein.
	 	 	 

		(iv)	Consideration; Closing. If the consideration proposed
to be paid for the Transfer Stock is in property, services or other non-cash consideration, the fair market value of the consideration
shall be as determined in good faith by the Board of Directors and as set forth in the Company Notice. If the Company cannot for any
reason pay for the Transfer Stock in the same form of non-cash consideration, the Company may pay the cash value equivalent thereof,
as determined in good faith by the Board of Directors and as set forth in the Company Notice. The closing of the purchase of Transfer
Stock by the Company shall take place, and all payments from the Company and the Investors shall have been delivered to the selling Investor,
by the later of (i) the date specified in the Proposed Transfer Notice as the intended date of the Proposed Investor Transfer; and
(ii) forty-five (45) days after delivery of the Proposed Transfer Notice. Notwithstanding the foregoing, in the event of any regulatory
restrictions or delays (including but not limited to stock exchange or securities regulators in the U.S. or Canada), such closing shall
take place no later than fifteen (15) days following regulatory approval of such sale of Transfer Stock.
	 	 	 

		(b)	Distribution. As set forth in the Preferred Share Certificate and the Purchase Agreement, respectively, in connection with a Conversion of the Preferred Shares into Common Shares of Company, the Investor shall distribute such Common Shares to its stockholders in accordance with the following:

                                                                                 

	

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		(i)	Form of Distribution. In connection with a Conversion, the board of directors of Investor (or a
committee of the board of directors of Investor acting pursuant to delegated authority), in accordance with the Nevada Revised Statutes
any applicable securities laws and the rules and regulations of the Nasdaq Capital Market (or such applicable trading market at the time
of such Conversion), shall set the Record Date and the Distribution Date and Investor shall establish appropriate procedures in connection
with the Distribution. In connection with the Distribution, all Company Common Shares held by Investor on the Distribution Date will be
distributed to Record Holders in the manner determined by Investor and in accordance with Section 2.2(b).
	 	 	 

		(ii)	Manner of Effecting Distribution.
	 	 	 

		(1)	Subject to the terms and conditions established pursuant to Section 2.2(a), each Record Holder
shall be entitled to receive for each share of Investor Common Stock held by such Record Holder a number of shares of Company Common Shares
equal to the number of shares of Company Common Shares held by the Investor on the Distribution Date, multiplied by a fraction, the numerator
of which is one and the denominator of which is the total number of shares of Investor Common Stock outstanding on the Record Date.
	 	 	 

		(2)	No Party, nor any of its Affiliates, will be liable to any Person in respect of any shares of Company
Common Shares, or distributions in respect thereof, that are delivered to a public official in accordance with the provisions of any applicable
escheat, abandoned property or similar Applicable Law.
	 	 	 

		(iii)	Actions Prior to the Distribution.
	 	 	 

		(1)	Company shall use reasonable commercial efforts to cooperate with Investor to give effect to and accomplish
the Distribution, including in connection with the preparation of all documents and the making of all filings required under Applicable
Law in connection with the Distribution. Investor shall be entitled to direct and control the efforts of the Parties in connection with,
and prior to, the Distribution, including the selection of an investment bank or banks to manage the Distribution, as well as any financial,
legal, accounting and other advisors of Investor, and Company shall use reasonable commercial efforts to take, or to cause to be taken,
all actions and to do, or cause to be done, all other things reasonably necessary to facilitate the Distribution as reasonably requested
by Investor. Notwithstanding the foregoing, in the event that the Distribution requires a regulatory filing by the Company, then the Company
shall be entitled to direct and control such filing. Without limiting the foregoing, prior to the Distribution, Company shall use commercially
reasonable efforts to, and shall cause its employees, advisors, agents, accountants, counsel and other representatives to, as requested
by Investor, reasonably cooperate in and take the following actions: (i) preparing and filing a registration statement or statements for
the registration on an appropriate registration form or forms designated by Investor; (ii) participating in meetings, drafting sessions,
due diligence sessions, management presentation sessions, “road shows” and similar meetings or sessions in connection with
the Distribution; (iii) furnishing to any dealer manager or similar agent participating in the Distribution (A) “comfort”
letters from independent public accountants in customary form and covering such matters as are customary for an underwritten public offering
(including with respect to events subsequent to the date of financial statements included in any offering document) and (B) opinions and
negative assurance letters of counsel in customary form and covering such matters as reasonably may be requested; and (iv) furnishing
all historical and forward-looking financial and other relevant financial and other information that is available to Company and is reasonably
required in connection with the Distribution.
	 	 	 

		(2)	Investor and Company shall prepare and mail, prior to the Distribution Date and in accordance with Applicable
Law, to the holders of Investor Common Stock, such information concerning Company and Investor, their respective businesses, operations
and management, the Distribution and such other matters as Investor reasonably shall determine and as may be required by Applicable Law.
Investor and Company shall use reasonable commercial efforts to prepare, and Company shall, to the extent required by Applicable Law,
file with applicable securities regulators and exchanges any such documentation that Investor reasonably determines are necessary or desirable
to effectuate the Distribution, and Investor and Company each shall use reasonable commercial efforts to obtain all necessary approvals
from applicable securities regulators and exchanges with respect to the foregoing as soon as practicable.
	 	 	 

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		(3)	Investor and Company shall take all actions as may be reasonably necessary under any applicable securities,
“blue sky” or comparable laws of the United States, the states and territories thereof and any foreign jurisdiction in connection
with the Distribution.
	 	 	 

		(4)	Investor and Company shall use reasonable commercial efforts to take all actions and steps reasonably
necessary and appropriate to cause the conditions to the Distribution set forth in Section 2.2(d) to be satisfied as soon
as practicable and to effect the Distribution on the Distribution Date in accordance with this Agreement.
	 	 	 

		(5)	Notwithstanding any other provision of this Agreement, if the Company is in possession of material information
that has not been disclosed to the public and the Company, in accordance with the advice of its counsel, reasonably deems it to be advisable
not to disclose such information in a prospectus, registration statement or other public filing and, in the reasonable judgment of the
Board of Directors, there is a reasonable likelihood that such disclosure would be materially adverse to the Company’s interests,
be seriously detrimental to the Company’s shareholders, or would materially interfere with any financing, acquisition, disposition,
arrangement, amalgamation, merger, business combination or similar transaction involving the Company, then the period during which the
Company would otherwise be required to make such disclosure will be extended while such information remains non-public for a period not
to exceed sixty (60) days after such notice of Conversion; provided, however, that the Company may not invoke this right more than once.
	 	 	 

		(iv)	Additional Matters in Connection with the Distribution.
	 	 	 

		(1)	Investor, Company, and any agent appointed in connection with the Distribution, as applicable, shall be
entitled to withhold and deduct from the consideration otherwise payable pursuant to this Agreement such amounts as are required to be
withheld and deducted in connection with such payments under Applicable Law. Any withheld amounts shall be treated for all purposes of
this Agreement as having been paid to the Persons otherwise entitled thereto.
	 	 	 

		(2)	Upon consummation of the Distribution, Investor shall deliver to the agent a global certificate representing
the Company Common Shares being distributed in the Distribution for the account of the Investor stockholders that are entitled to such
shares.
	 	 	 

		(3)	From immediately after the Conversion, the Company the Company Common Shares shall not be transferable
and the transfer agent for the Company Common Shares shall not transfer any Company Common Shares except as provided in this Agreement.
Investor shall give written notice of the Distribution Effective Time to the transfer agent with written authorization to proceed as set
forth in Section 2.2(b).  Investor shall not exercise any voting rights attached to such Company Common Shares between
the date of Conversion and the Date of the Distribution.
	 	 	 

		(c)	Effect of Failure to Comply.
	 	 	 

		(i)	Transfer Void; Equitable Relief. Any Proposed Investor Transfer or Conversion not made in compliance
with the requirements of this Agreement shall be null and void ab initio, shall not be recorded on the books of the Company or its transfer
agent and shall not be recognized by the Company. Each party hereto acknowledges and agrees that any breach of this Agreement would result
in substantial harm to the other parties hereto for which monetary damages alone could not adequately compensate. Therefore, the parties
hereto unconditionally and irrevocably agree that any non-breaching party hereto shall be entitled to seek protective orders, injunctive
relief and other remedies available at law or in equity (including, without limitation, seeking specific performance or the rescission
of purchases, sales and other transfers of the Preferred Shares not made in strict compliance with this Agreement).
	 	 	 

		(ii)	Violation of First Refusal Right. If any Investor becomes obligated to sell any Transfer Stock
to the Company under this Agreement and fails to deliver such Transfer Stock in accordance with the terms of this Agreement, the Company
may, at its option, in addition to all other remedies it may have, send to such Investor the purchase price for such Transfer Stock as
is herein specified and transfer to the name of the Company on the Company’s books any certificates, instruments, or book entry
representing the Transfer Stock to be sold.
	 	 	 

		(iii)	Violation
                                            of Distribution Rights. In addition to such Prohibited Transfer being null and void ab
                                            initio, if Investor purports to sell any Company Common Shares following a Conversion in
                                            contravention of Section 2.2 (a “Prohibited Transfer”), Investor
                                            shall reimburse Company for any and all reasonable and documented out-of-pocket fees and
                                            expenses, including reasonable legal fees and expenses, incurred pursuant to the exercise
                                            or the attempted exercise of the Investor’s rights in contravention of Section 2.2.

	 	 	 

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		3.	Exempted Offerings. Notwithstanding the foregoing
or anything to the contrary herein, the provisions of Section 2 shall not apply to the sale of any Preferred Shares pursuant to
a Deemed Liquidation Event (as defined in the Preferred Share Certificate).
	 	 	 

		4.	Legend. Each certificate, instrument, or book entry representing Preferred Shares held by the Investor
shall be notated with the following legend:
	 	 	 

 

THE SALE, PLEDGE, HYPOTHECATION,
OR TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS SUBJECT TO, AND IN CERTAIN CASES PROHIBITED BY, THE TERMS AND CONDITIONS OF A CERTAIN
RIGHT OF FIRST REFUSAL AND DISTRIBUTION AGREEMENT BY AND AMONG THE INVESTOR AND THE COMPANY. COPIES OF SUCH AGREEMENT MAY BE OBTAINED
UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.

 

Investor agrees that the Company
may instruct its transfer agent to impose transfer restrictions on the shares notated with the legend referred to in this Section 4
above to enforce the provisions of this Agreement, and the Company agrees to promptly do so. The legend shall be removed upon termination
of this Agreement at the request of the holder.

 

		5.	Miscellaneous. Term. This Agreement shall automatically terminate upon the consummation of a
                                                                                  Deemed Liquidation Event (as defined in the Preferred Share Certificate), Transfer of all of the Preferred Shares held by Investor
                                                                                  or Distribution of all Company Common Stock issued upon a Conversion of the Preferred Shares. 

 

		(b)	Stock
                                            Split. All references to numbers of shares in this Agreement shall be appropriately adjusted
                                            to reflect any stock dividend, split, combination or other recapitalization affecting the
                                            Capital Stock occurring after the date of this Agreement.
	 	 	 
		(c)	Ownership. Investor represents and warrants that Investor is the sole legal and beneficial owner of the
Preferred Shares subject to this Agreement and that no other person or entity has any interest in such shares (other than a community
property interest as to which the holder thereof has acknowledged and agreed in writing to the restrictions and obligations hereunder).
	 	 	 
		(d)	Jurisdiction. Each of the Parties hereto irrevocably consents to the non-exclusive jurisdiction and venue
of the Court of Chancery of the State of Delaware in connection with any matter based upon or arising out of this Agreement.

 

Waiver of Jury Trial: EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AND ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON
CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF ANY PARTY HERETO IN NEGOTIATION, ADMINISTRATION,
PERFORMANCE OR ENFORCEMENT HEREOF.

 

		(e)	Notices. All notices and other communications hereunder shall be in writing and shall be deemed given
if delivered personally or by commercial messenger or courier service, or mailed by registered or certified mail (return receipt requested)
or sent via email (with automated or personal acknowledgment of receipt) to the Parties at the following addresses (or at such other address
for a Party as shall be specified by like notice or, if specifically provided for elsewhere in this Agreement, by email):

 

		(i)	if to Company, to:

 

TGS ESPORTS INC.

4211 No.3 Road

Richmond, BC V6X 3C3

Email: skhouri@thegamingstadium.com

 

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

 

Clark Wilson LLP

900-885 West Georgia Street

Vancouver, BC V6C 3H1

Attention: Nafeesa Valli-Hasham
and Craig Hoskins

Email: nvalli-hasham@cwilson.com
and choskins@cwilson.com

 

		(ii)	If to the Investor, to:

 

NextPlay Technologies, Inc.

1560 Sawgrass Corporate Parkway,
Suite 130

Sunrise, Florida 33323

Attention: Nithinan Boonyawattanapisut,
Co-CEO

Email: nithinan.boonyawattanapisut@nextplaytechnologies.com

 

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

 

Procopio, Cory, Hargreaves & Savitch LLP

12544 High Bluff Drive, Suite
400

San Diego, California 92130

Attention: Paul B. Johnson,
Esq.

Email: paul.johnson@procopio.com

 

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Any notice given as specified
in this Section 5.5 (i) if delivered personally shall conclusively be deemed to have been give or served at the time
of delivery (ii) if delivered by electronic mail shall conclusively be deemed to have been given effective upon actual receipt if
during the recipient’s normal business hours, or at the beginning of the recipient’s next normal Business Day after receipt
if not received during the recipient’s normal business hours, and (iii) if sent by commercial delivery service or mailed by
registered or certified mail (return receipt requested) shall conclusively be deemed to have been received on the third Business Day after
the post of the same. No notice to the Investor or the Company shall be deemed given or received unless the entity noted “with a
copy to” is simultaneously given notice in the same manner as any notice given to the Investor or the Company as the case may be;
provided, however, that no notice to such Party shall constitute notice to the Investor or the Company for purposes of this Section 
5.5.

 

		(f)	Entire Agreement. This Agreement and the Purchase Agreement (including, the Exhibits and Schedules thereto)
constitutes the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other
written or oral agreement relating to the subject matter hereof existing between the parties are expressly canceled.
	 	 	 

		(g)	Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party
under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy
of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed
a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character
on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions
of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies,
either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.
	 	 	 

		(h)	Amendment; Waiver and Termination. This Agreement may be amended, modified or terminated (other than pursuant
to Section 5.1 above) and the observance of any term hereof may be waived (either generally or in a particular instance and
either retroactively or prospectively) only by a written instrument executed by the Company and the Investor. Any amendment, modification,
termination or waiver so effected shall be binding upon the Company, the Investor and all of their respective successors whether or not
such party, or other shareholder entered into or approved such amendment, modification, termination or waiver. No waivers of or exceptions
to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further
or continuing waiver of any such term, condition or provision.
	 	 	 

		(i)	Assignment of Rights and Assumption of Obligations
	 	 	 

		(i)	The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except
as expressly provided in this Agreement.
	 	 	 

		(ii)	The rights and obligations of the Investor hereunder are not assignable without the Company’s written
consent.
	 	 	 

		(iii)	The Investor shall not enter into a transaction that would result in a change of control of the Investor
unless the counterparty to such transaction first agrees to assume the obligations of the Investor hereunder.
	 	 	 

		(iv)	The Investor will not consummate any transaction (whether by way of arrangement, amalgamation, merger,
reorganization, consolidation, sale of assets or otherwise) whereby all or substantially all of its undertaking, property and assets would
become the property of any other person or, in the case of a business combination, of the continuing person resulting therefrom, unless
such other person (the “Successor”), by operation of law, becomes bound by the terms and provisions of this Agreement
or, if not so bound, executes, prior to or contemporaneously with the consummation of such transaction, an agreement supplemental hereto
and such other instruments (if any) as are reasonably necessary or advisable to evidence the assumption by the Successor of liability
for all amounts payable and property deliverable hereunder and the covenant of such Successor to pay and deliver or cause to be delivered
the same and its agreement to observe and perform all the covenants and obligations of the Investor under this Agreement.
	 	 	 

		(v)	Whenever the conditions of Section 5.9(d) have been duly observed and performed, if required by Section
5.9(d), the Successor and the other parties hereto will execute and deliver the supplemental agreement provided for herein and thereupon
the Successor will possess and, from time to time, may exercise each and every right and power and will be subject to each and every obligation
of the Investor under this Agreement in the name of the Investor or otherwise and any act or proceeding under any provision of this Agreement
required to be done or performed by the Investor or any officer of the Investor may be done and performed with like force and effect by
the directors or officers of such Successor.
	 	 	 

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	 	(j)	Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such determination shall not impair or affect the validity, legality or enforceability of the remaining provisions hereof, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either of the parties and each provision is hereby declared to be separate, severable and distinct.
	 	 	 
	 	(k)	Governing Law. This Agreement shall be governed by the internal law of the State of Delaware, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.
	 	 	 
	 	(l)	Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
	 	 	 
	 	(m)	Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
	 	 	 
	 	(n)	Specific Performance. In addition to any and all other remedies that may be available at law in the event of any breach of this Agreement, each Party shall be entitled to specific performance of the agreements and obligations of the other Party hereunder and to such other injunction or other equitable relief as may be granted by a court of competent jurisdiction.
	 	 	 
	 	(o)	Expenses. The Investor shall pay all expenses incident to the Company’s performance under or compliance with this Agreement, including, without limitation all registration and filing fees, printing expenses, expenses and out-of-pocket costs relating to road shows (including the expenses of the Company, the underwriters or agents and any other person involved in such road show), listing fees, fees and disbursements of counsel and independent auditors for the Company, fees of securities dealers, transfer taxes, fees of transfer agents and registrars and reasonable out-of-pocket expenses (including without limitation, reasonable legal fees and disbursements of legal counsel for the Company and the reasonable legal fees and disbursements of underwriters or agents counsel) of the Company, underwriting fees, discounts and selling commissions allocable to the Distribution.
	 	 	 
	 	(p)	Indemnity. The Investor agrees to indemnify and hold harmless the Company, its directors, officers, employees and agents and each person (other than the Investor), if any, who controls the Company against any demands, claims, actions, proceedings, losses (other than loss of profit), damages, costs, expenses or liabilities (including reasonable fees, charges and disbursements of legal counsel) whatsoever to which the Company may become subject under Applicable Law or stock exchange rule, or otherwise or as a result of a Distribution under this Agreement. This indemnification provision will survive the expiry of this Agreement and will remain in full force and effect regardless of any investigation made by or on behalf of the Company or any officer, director or controlling person of the Company and will survive any transfer of securities pursuant to a Distribution to which this Agreement relates. Notwithstanding the foregoing, the Investor shall not be liable for any demands, claims, actions, proceedings, losses (other than loss of profit), damages, costs, expenses or liabilities (including reasonable fees, charges and disbursements of legal counsel) whatsoever to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with information furnished by or on behalf of the Company expressly for use in connection with such Distribution.

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF,
the parties have executed this Right of First Refusal and Distribution Agreement as of the date first written above.

 

	 	COMPANY:
	 	 
	 	TGS ESPORTS, INC.
	 	 
	 	By:	                   
	 	Name:	 
	 	Title:	 
	 	 	 
	 	INVESTOR:
	 	 
	 	NEXTPLAY TECHNOLOGIES, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:Exhibit
10.4

 
Form
of Escrow Agreement

 

STOCK
ESCROW AGREEMENT

 

This STOCK
ESCROW AGREEMENT, dated as of                               ,
2022 (the “Agreement”) is entered into by and among TGS Esports Inc., a British Columbia corporation publicly traded
on the TSX Venture Exchange (TSXV:TGS) (“Company”), the undersigned parties listed as Stockholders on the signature
page hereto (collectively, the “Stockholders”) and [TBC] (“Escrow Agent”).

 

WHEREAS,
the Company has entered into a Securities Exchange Agreement with NextPlay Technologies, Inc., a Nevada corporation publicly traded on
the Nasdaq Capital Market (Nasdaq: NXTP) (“NextPlay”) and the Stockholders, dated June 28, 2022 (the “Exchange
Agreement”), pursuant to which, among other matters, the Company has agreed to issue 69,714,286 shares of the Company’s
Common Shares (the “Common Shares”) to the Stockholders.

 

WHEREAS,
pursuant to the terms of the Exchange Agreement, the Stockholders have agreed that, as a condition thereof, 11,619,048 of the Common
Shares (the “Escrow Shares”) issued to the Stockholders by the Company pursuant to the Exchange Agreement be held
in escrow pursuant to the terms of this Agreement to be released, subject to the terms of this Agreement.

 

WHEREAS,
the Company and the Stockholders desire that the Escrow Agent accept the Escrow Shares, in escrow, to be held and disbursed as hereinafter
provided.

 

NOW,
THEREFORE, in consideration of the foregoing, of the mutual agreements herein contained, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Company, each Stockholder and the Escrow Agent hereby agree as follows:

 

1. Appointment
of Escrow Agent. The Company and the Stockholders hereby appoint the Escrow Agent to act in accordance with and subject to the terms
of this Agreement and the Escrow Agent hereby accepts such appointment and agrees to act in accordance with and subject to such terms.

 

2. Deposit
of Escrow Shares. On the Closing Date (as defined in the Exchange Agreement), the Company shall have delivered to the Escrow Agent
certificates representing their respective Escrow Shares as set forth opposite their respective names on Exhibit A hereto, which certificates
shall remain in the name of such Stockholder or in the name of such Stockholder’s Permitted Transferee (as defined below), to be
held and disbursed subject to the terms and conditions of this Agreement. Each Stockholder acknowledges that the certificate representing
such Stockholder’s Escrow Shares bears a legend to reflect the deposit of such Escrow Shares under this Agreement.

 

3. Disbursement
of the Escrow Shares. Upon receipt of the Escrow Shares, the Escrow Agent shall hold the Escrow Shares, and for all purposes of this
Agreement shall be treated as and considered legally, a custodian of the Escrow Shares, and shall not release the Escrow Shares until
it receives instructions to do so pursuant to and in accordance with this Section 3.

 

3.1
The Escrow Agent shall hold the Escrow Shares until the date that is four (4) years after the Closing Date unless earlier released as
set forth in this Section 3 (the “Escrow Period”). In the event that a Trigger Notice (as defined below) is not delivered
by the end of the Escrow Period, the Stockholders agree that the Escrow Agent shall return to the Company for cancellation, at no cost,
all of the Escrow Shares.

 

3.2
If, during the Escrow Period, the Stockholders shall have delivered a Trigger Notice (as defined below) to the Escrow Agent and the Company,
and the Company shall not have disputed such Trigger Notice in writing within five (5) business days after its receipt of the Trigger
Notice, the Escrow Shares shall promptly, but in any event within two (2) Business Days, be released by the Escrow Agent and delivered
to the Stockholders. The parties agree that the Escrow Agent may rely on the Stockholders’ representation that the Trigger Notice
was in fact delivered to the Company and the Escrow Agent shall have no duty to confirm such delivery or otherwise inform the Company
of such notice.

 

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3.4
For purposes of this Agreement, a “Trigger Notice” is a written notice by the Stockholders to Escrow Agent, with a
copy thereof to the Company, upon the following events occurring:

 

(i)
at the time of a Conversion (as defined in that certain Right of First Refusal and Distribution Agreement of even date herewith) by NextPlay
of Parent Preferred Shares (as defined in the Exchange Agreement), the last traded price of the Company’s Common Shares is equal
to or greater than CDN$0.06375 per share (the “Target Price”), which is equivalent to a 115% premium on the Common
Shares; or

 

(ii)
at the time of a redemption or sale of the Parent Preferred Shares by NextPlay, the Parent Preferred Shares are sold for a price of CDN$14,030,000
or greater, which is equivalent to a 115% premium to the value of the Parent Preferred Shares.

 

3.5
Any release or disbursement of Escrow Shares in accordance with this Section 3 shall be made by delivering the stock certificates representing
such Escrow Shares to the designated party. In the event of release to the Company, the Escrow Agent shall retain such shares in its
capacity as the transfer agent of the Company and shall cause such shares to be cancelled on the Company’s books and records and
returned to the Company’s treasury. Notwithstanding anything to the contrary, a release of any Escrow Shares to the Company shall,
if accompanied by delivery of the stock certificates, be valid and shall have full force and effect even in the absence of delivery of
any required stock transfer powers. Any release of Escrow Shares to the Company shall be deemed to be a cancellation of such Escrow Shares.

 

4. Rights
of Stockholders in Escrow Shares.

 

4.1 Voting
Rights as a Stockholder. The Stockholders shall retain all of their rights as stockholders of the Company during the Escrow Period,
including, without limitation, the right to vote the Escrow Shares.

 

4.2 Dividends
and Other Distributions in Respect of the Escrow Shares. During the Escrow Period, all dividends payable in cash with respect to
the Escrow Shares shall be paid to the Stockholders, but all dividends or other distributions made by the Company during the Escrow Period
payable in shares of Common Stock or other non-cash property (“Non-Cash Dividends”) shall be delivered to the Escrow
Agent to hold in accordance with the terms hereof. As used herein, the term “Escrow Shares” shall be deemed to include
the Non-Cash Dividends distributed thereon, if any.

 

4.3 Restrictions
on Transfer. During the Escrow Period, no sale, transfer or other disposition may be made of any or all of the Escrow Shares except
to permitted transferees which includes: (i) a member of Stockholder’s immediate family or a trust (the beneficiary of which
is a member of the Stockholder’s immediate family); (ii) any person who receives such Escrow Shares by virtue of the laws
or descent and distribution upon death of the Stockholder; or (iii) any person who receives such Escrow Shares pursuant to a qualified
domestic relations order (each such transferee, a “Permitted Transferee”); provided, however, that
such permissive transfers may be implemented only upon the respective transferee’s written agreement to be bound by the terms and
conditions of this Agreement signed by the Stockholder transferring the Escrow Shares. During the Escrow Period, the Stockholders shall
not pledge or grant a security interest in the Escrow Shares or grant a security interest in their rights under this Agreement.

 

5. Concerning
the Escrow Agent.

 

5.1 Good
Faith Reliance. The Escrow Agent shall not be liable for any action taken or omitted by it in good faith and in the exercise of its
own best judgment, and may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or
advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report or other paper or document (not only
as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information
therein contained) which is believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons.
The Escrow Agent shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement
unless evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the
Escrow Agent are affected, unless it shall have given its prior written consent thereto.

 

    - 2 -

     

    

 

5.2 Indemnification.
The Escrow Agent shall be indemnified and held harmless by the Company from and against any expenses, including counsel fees and disbursements,
or loss suffered by the Escrow Agent in connection with any action, suit or other proceeding involving any claim which in any way, directly
or indirectly, arises out of or relates to this Agreement, the services of the Escrow Agent hereunder, or the Escrow Shares held by it
hereunder, other than expenses or losses arising from the gross negligence or willful misconduct of the Escrow Agent. Promptly after
the receipt by the Escrow Agent of notice of any demand or claim or the commencement of any action, suit or proceeding, the Escrow Agent
shall notify the other parties hereto in writing. In the event of the receipt of such notice, the Escrow Agent, in its sole discretion,
may commence an action in the nature of interpleader in an appropriate court to determine ownership or disposition of the Escrow Shares
or it may deposit the Escrow Shares with the clerk of any appropriate court or it may retain the Escrow Shares pending receipt of a final,
non-appealable order of a court having jurisdiction over all of the parties hereto directing to whom and under what circumstances the
Escrow Shares are to be disbursed and delivered. The provisions of this Section 5.2 shall survive in the event the Escrow Agent
resigns or is discharged pursuant to Sections 5.5 or 5.6 below.

 

5.3 Compensation.
The Escrow Agent shall be entitled to reasonable compensation from the Company for all services rendered by it hereunder, as set forth
on Exhibit B hereto. The Escrow Agent shall also be entitled to reimbursement from the Company for all expenses
paid or incurred by it in the administration of its duties hereunder including, but not limited to, all counsel, advisors’ and
agents’ fees and disbursements and all taxes or other governmental charges.

 

5.4 Further
Assurances. From time to time on and after the date hereof, the Company and the Stockholders shall deliver or cause to be delivered
to the Escrow Agent such further documents and instruments and shall do or cause to be done such further acts as the Escrow Agent shall
reasonably request to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to
assure itself that it is protected in acting hereunder.

 

5.5 Resignation.
The Escrow Agent may resign at any time and be discharged from its duties as escrow agent hereunder by its giving the other parties hereto
written notice and such resignation shall become effective as hereinafter provided. Such resignation shall become effective at such time
that the Escrow Agent shall turn over the Escrow Shares held hereunder to a successor escrow agent appointed by the Company. If no new
escrow agent is so appointed within the 60 day period following the giving of such notice of resignation, the Escrow Agent may deposit
the Escrow Shares with the Court of Chancery of the State of Delaware, provided the Escrow Agent provides notice of
such deposit to the Company and the Stockholders in accordance with Section 6.7 hereof.

 

5.6 Discharge
of Escrow Agent. The Escrow Agent shall resign and be discharged from its duties as escrow agent hereunder if so requested in writing
at any time by the other parties hereto, jointly; provided, however, that such resignation shall become effective only upon
the appointment by a successor escrow agent as provided for in Section 5.5.

 

5.7 Liability.
Notwithstanding anything herein to the contrary, the Escrow Agent shall not be relieved from liability hereunder for its own gross negligence
or its own willful misconduct.

 

6. Miscellaneous.

 

6.1 Governing
Law. This Agreement shall for all purposes be deemed to be made under and shall be construed in accordance with the laws of the State
of Delaware. Each of the parties hereby agrees that any action, proceeding or claim against it arising out of or relating in any way
to this Agreement shall be brought and enforced in the Court of Chancery of the State of Delaware, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. Each of the parties hereby waives any objection to such exclusive jurisdiction and that such courts
represent an inconvenient forum.

 

6.2 Third
Party Beneficiaries. Each of the Stockholders hereby expressly acknowledges and agrees that NextPlay is a third party beneficiary
of this Agreement and this Agreement may not be modified, amended or changed without the prior written consent of NextPlay.

 

6.3 Entire
Agreement. This Agreement contains the entire agreement of the parties hereto with respect to the subject matter hereof and, except
as expressly provided herein, may not be changed or modified except by an instrument in writing signed by the party to be charged.

 

    - 3 -

     

    

 

6.4 Headings.
The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
thereof.

 

6.5 Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their legal representatives,
successors and assigns.

 

6.6 Notices.
Any notice or other communication required or which may be given hereunder shall be in writing and either be delivered personally or
by private national courier service, or be mailed, certified or registered mail, return receipt requested, postage prepaid or via electronic
communication, and shall be deemed given when so delivered personally or, if sent by private national courier service, on the next business
day after delivery to the courier, or, if mailed, two business days after the date of mailing, or if sent via electronic communication,
the next business day after transmission of the electronic communication, as follows:

 

If
to the Company, to:

 

TGS
ESPORTS INC.

4211
No. 3 Road

Richmond, BC V6X 3C3

Attention: Spiro Khouri, CEO

Email:
skhouri@thegamingstadium.com

 

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

 

Clark
Wilson LLP

900-885
West Georgia Street

Vancouver,
BC V6C 3H1

Attention:
Nafeesa Valli-Hasham and Craig Hoskins

Email:
nvalli-hasham@cwilson.com and choskins@cwilson.com

 

If
to a Stockholder, to his, her or its address set forth in Exhibit A.

 

and
if to the Escrow Agent, to:

 

[TBC]

 

A
copy of any notice sent hereunder shall be sent to:

 

Procopio,
Cory, Hargreaves & Savitch LLP

12544
High Bluff Drive, Suite 400

San
Diego, California 92130

Attention:
Christopher L. Tinen, Esq.

Email:
Christopher.tinen@procopio.com

 

The
parties may change the persons and addresses to which the notices or other communications are to be sent by giving written notice to
any such change in the manner provided herein for giving notice.

 

6.7 Counterparts.
This Agreement may be executed in several counterparts each one of which shall constitute an original and may be delivered by electronic
communication and together shall constitute one instrument.

 

[Signature
Page Follows]

 

    - 4 -

     

    

 

IN
WITNESS WHEREOF, this Stock Escrow Agreement has been duly executed by the parties hereto as of the day and year first above written.

 

	 	TGS ESPORTS INC.
	 	 	 
	 	By:	 
	 	Name: 	 
	 	Title:	 
	 	 	 
	 	 	 
	 	 	William Kerby, as Stockholder
	 	 	 
	 	 	 
	 	 	Donald P. Monaco, as Stockholder

 

	 	[ESCROW AGENT]
	 	 	 
	 	By:	             
	 	Name: 	 
	 	Title:	 

 

    - 5 -

     

    

 

EXHIBIT
A

 

	Name
                                                                   and Address of Stockholder
	 	Number
    of Shares	 	 	Stock
    Certificate Number	 
	William Kerby
    
	 	 	         	 	 	 	               	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Donald P. Monaco	 	 	 	 	 	 	 	 

 

    - 6 -

     

    

 

EXHIBIT
B

 

Escrow
Agent Fees

 

$             annually
for acting agent escrow fee.

 

Initial
acceptance fee and first year agent fee to be paid at closing.

 

 

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7 -

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