Document:

Exhibit
10.16

 

FORM
OF MOTORSPORT GAMES INC.
 2021 EQUITY INCENTIVE PLAN

 

NOTICE
OF GRANT OF INCENTIVE STOCK OPTIONS

 

This
Incentive Stock Option Agreement consists of this Notice of Grant of Incentive Stock Options (the “Grant Notice”)
and the Incentive Stock Option Award Agreement immediately following. The Incentive Stock Option Agreement sets forth the specific
terms and conditions governing Incentive Stock Option Awards under the Motorsport Games Inc. 2021 Equity Incentive Plan
(the “Plan”). All of the terms of the Plan are incorporated herein by reference.

 

	Name
    of Optionee:	[Name]
	Total
    No. of shares of Stock subject to the Option:	[Number]
    
	Date
    of Grant:	[Date]
    
	Expiration
    Date:	[Date]
    
	Exercise
    Price:	$[____]
	Vesting
    Schedule:	[_________________]

 

by
executing this INCENTIVE stock option AGREEMENT, optionee accepts participation in the plan, acknowledges that he or she has read
and understands the provisions of this grant NOTICE and the plan, and agrees that this grant NOTICE, the award agreement AND THE
pLAN shall govern the terms and conditions of thIS AWARD.

 

IN
WITNESS WHEREOF, the Company and Optionee have duly executed this Incentive Stock Option Agreement, and this Incentive Stock
Option Agreement shall be effective as of the Date of Grant set forth above.

 

	MOTORSPORT
    GAMES INC.	 	OPTIONEE
	 	 	 	 
	By:	 	 	 
	 	 	 	Signature
	Print
    Name:	     	 	
	 	 	 	 
	Its:	 	 	 
	 	 	 	Print
    Name

 

    	 	 	 

     

    

 

INCENTIVE
STOCK OPTION AWARD AGREEMENT 

Under
the Motorsport Games Inc.

2021 Equity Incentive Plan

 

This
Incentive Stock Option Award Agreement (this “Agreement”) is between Motorsport Games Inc. (the “Company”)
and the individual (the “Optionee”) identified in the Notice of Grant of Incentive Stock Options (the “Grant
Notice”), and is effective as of the grant date referenced in the Grant Notice (the “Date of Grant”). This Agreement
supplements the Grant Notice to which it is attached, and, together, with the Grant Notice, constitutes the “Incentive Stock
Option Agreement” referenced in the Grant Notice.

 

RECITALS

 

A.
The Board of Directors of the Company (the “Board”) has adopted and the stockholders have approved the Motorsport
Games Inc. 2021 Equity Incentive Plan (the “Plan”) to promote the interests and long-term success of the Company
and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Company and by
motivating such persons to contribute to the continued growth and profitability of the Company.

 

B.
The Committee has approved the grant of Incentive Stock Options to Optionee pursuant to Section 6.2 of the Plan.

 

C.
To the extent not specifically defined in this Agreement, all capitalized terms used in this Agreement shall have the meaning
set forth in the Plan.

 

D.
In consideration of the mutual covenants and conditions hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and Optionee agree as follows:

 

AGREEMENT

 

1.
Grant of Option. Subject to the terms of this Agreement and Section 6.2 of the Plan, the Company grants to Optionee
the right and option to purchase from the Company all or any part of the aggregate number of shares of Stock specified in the
Grant Notice (“Option”). The Option granted under this Agreement is intended to be an “Incentive Stock
Option” under Section 422 of the Code.

 

2.
Exercise Price. The exercise price under this Agreement is the exercise price per share of Stock specified in the Grant
Notice, as determined by the Committee, which shall not be less than the Fair Market Value of a share of Stock on the Date
of Grant.

 

3.
Vesting of Option. Subject to the Optionee’s continued employment, the Option shall vest and become exercisable
according to the vesting schedule set forth in the Grant Notice.

 

4.
Exercise of Option. This Option may be exercised in whole or in part at any time after it vests in accordance with
Section 3 and before the Option expires by delivery of a written notice of exercise (under Section 5 below) and payment of the
exercise price. The exercise price may be paid in cash, or shares of Stock (through actual tender or by attestation), or such
other method permitted by the Committee (including broker-assisted “cashless exercise” arrangements) and communicated
to Optionee before the date Optionee exercises the Option.

 

    	 	 	 

     

    

 

5.
Method of Exercising Option. Subject to the terms of this Agreement, the Option may be exercised by timely delivery
to the Company of written notice, which notice shall be effective on the date received by the Company. The notice shall state
Optionee’s election to exercise the Option and the number of underlying shares in respect of which an election to exercise
has been made. Such notice shall be signed by Optionee, or if the Option is exercised by a person or persons other than Optionee
because of Optionee’s death, such notice must be signed by such other person or persons and shall be accompanied by proof
acceptable to the Committee of the legal right of such person or persons to exercise the Option.

 

6.
Term of Option. The Option granted under this Agreement expires, unless sooner terminated, ten (10) years from the
Date of Grant, through and including the normal close of business of the Company on the tenth (10th) anniversary of
the Date of Grant (the “Expiration Date”).

 

7.
Termination of Employment. 

 

(a)
If Optionee’s employment is terminated by the Company by reason of death or Disability, the Option shall lapse (to the
extent not exercised) on the earlier of: (i) the Expiration Date; or (ii) twelve (12) months after the date Optionee terminates
employment. The Option may be exercised pursuant to this Section 7(a) only if the Option was exercisable by Optionee immediately
prior to his or her termination of employment. In no event shall the Option be exercisable after the Expiration Date.

 

(b)
If Optionee’s employment is terminated for any reason other than those described in Section 7(a), the Option shall lapse
(to the extent not exercised) on the earlier of: (i) the Expiration Date; or (ii) three (3) months after the date Optionee terminates
employment; provided, however, that if Optionee’s employment is terminated for Cause, the Option shall immediately
lapse which means that the Option shall not be exercisable by Optionee regardless of whether the Option is already vested. The
Option may be exercised pursuant to this Section 7(b) only if the Option was exercisable by Optionee immediately prior to his
or her termination of employment. In no event shall the Option be exercisable after the Expiration Date.

 

8.
Disqualifying Disposition. By accepting this Award, the Optionee agrees that he or she shall notify the Company if
the Optionee disposes of any shares of Stock subject to the Option in a “disqualifying disposition” as described in
Section 422 of the Code. Such notice must be provided within fifteen (15) days following the date of the disqualifying disposition
and must include the date or dates of the disposition, the number of shares of Stock subject to the disposition, and the consideration
received, if any, for the shares of Stock. Upon request by the Company, the Optionee agrees to forward to the Company the amount
necessary to satisfy any federal, state or local taxes as are required by law to be withheld upon the disqualifying disposition.
If requested by the Company, the Optionee also agrees to forward to the Company up to the maximum statutory amount necessary,
in the applicable jurisdiction, to satisfy any other applicable taxes or assessments that may be incurred as a result of the disqualifying
disposition.

 

9.
Nontransferability of Options. The Options granted by this Agreement shall not be transferable by Optionee or any other
person claiming through Optionee, either voluntarily or involuntarily, except by will or the laws of descent and distribution
or as otherwise provided by the Committee pursuant to Section 12.3 of the Plan.

 

10.
No Right to Continued Employment. This Agreement shall not be construed to confer upon Optionee any right to
continue employment with the Company and shall not limit the right of the Company, in its sole and absolute discretion, to terminate
Optionee’s employment at any time.

 

    	 	 	 

     

    

 

11.
Administration. This Agreement shall at all times be subject to the terms and conditions of the Plan and the Plan shall
in all respects be administered by the Committee in accordance with the terms of and as provided in the Plan. The Committee shall
have the sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of the Committee with
respect thereto and to this Agreement shall be final and binding upon Optionee and the Company. In the event of any conflict between
the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control.

 

12.
Adjustments. The number of shares of Stock issued to Optionee pursuant to this Agreement shall be adjusted by the Committee
pursuant to Section 10 of the Plan, in its discretion, in the event of a change in the Company’s capital structure.

 

13.
Securities Laws Compliance. The Company shall not be required to deliver any shares of Stock pursuant to the exercise
of the Option if, in the opinion of counsel for the Company, such issuance would violate the Securities Act of 1933, as amended,
the Securities Exchange Act of 1934, as amended, or any other applicable federal or state securities laws or regulations.

 

14.
No Shareholders Rights. Optionee will have no voting rights or any other rights as a shareholder of the Company with
respect to the Option until the Company issues the stock certificates representing the shares of Stock underlying the Option.

 

15.
Copy of Plan. By the execution of this Agreement, Optionee acknowledges receipt of a copy of the Plan.

 

16.
Governing Law. This Agreement shall be interpreted and administered under the laws of the State of California.

 

17.
Amendment. Except as otherwise provided in the Plan, this Agreement may be amended only by a written agreement executed
by the Company and Optionee. The provisions of this Agreement may not be waived or modified unless such waiver or modification
is in writing and signed by a representative of the Committee.

 

18.
Clawback. Pursuant to Section 12.6 of the Plan, every Award issued pursuant to the Plan is subject to potential forfeiture
or “clawback” to the fullest extent called for by applicable federal or state law or any policy of the Company. By
accepting this Award, Optionee agrees to be bound by, and comply with, the terms of any such forfeiture or “clawback”
provision imposed by applicable federal or state law or prescribed by any policy of the Company.

 

MANY
OF THE PROVISION OF THIS AWARD AGREEMENT ARE SUMMARIES OF SIMILAR PERTINENT PROVISIONS OF THE PLAN. TO THE EXTENT THAT THIS AGREEMENT
IS SILENT ON AN ISSUE OR THERE IS A CONFLICT BETWEEN THE PLAN AND THIS AGREEMENT, THE PLAN PROVISIONS SHALL CONTROL.Exhibit
10.17

 

 

FORM
OF

RESTRICTED
STOCK AWARD AGREEMENT

UNDER
THE MOTORSPORT GAMES INC.

2021
EQUITY INCENTIVE PLAN

 

THIS
RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) is entered into pursuant to the Motorsport Games Inc. 2021
Equity Incentive Plan (the “Plan”). This Agreement is made effective as of _________ (the “Date of Grant”)
by and between Motorsport Games Inc., a Delaware corporation (the “Company”), and _______________ (the “Grantee”).

 

1.
Defined Terms. Capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings assigned
to such terms in the Plan.

 

2.
Grant of Stock. Subject to the terms and conditions of this Agreement and Section 8.1 of the Plan, the Company
hereby awards Grantee __________ shares of Stock representing Restricted Stock Award under the Plan (such shares shall be referred
to herein as the “Restricted Shares”).

 

3.
Vesting of Restricted Shares. 

 

(a)
General Rule. The Restricted Shares granted pursuant to Section 2 above shall become vested and nonforfeitable on __________________
(“Vesting Date”).

 

(b)
[Termination. Notwithstanding Section 3(a) above, upon a termination of employment (or termination of service in the case
of a Consultant or Non-Employee Director), all of the Restricted Shares (to the extent not previously vested) shall be forfeited.]1

 

(c)
Change in Control. Notwithstanding Section 3(a) or 3(b) above, all of the Restricted Shares (to the extent not previously
vested), shall become vested and nonforfeitable if a Change of Control occurs prior to a Vesting Date.

 

4.
Stockholder Rights. Grantee will have all rights of the stockholder with respect to the Restricted Shares as of the
Date of Grant; provided, however, that the Restricted Shares that have not become vested and nonforfeitable may not be transferred
or assigned by Grantee or by operation of law, other than by will or by the laws of descent and distribution. For the avoidance
of doubt, Grantee shall have the right to receive dividends with respect to the Restricted Shares.

 

5.
Right to Terminate Service. Nothing contained in this Agreement shall create a contract of employment (or service)
or give Grantee a right to continue in the employ (or service) of the Company or any Subsidiary, or restrict the right of the
Grantee to terminate his employment at any time or the Company or a Subsidiary to terminate the employment (or service) of Grantee
at any time.

 

6.
Adjustments. Upon the occurrence of certain events relating to the Company’s Common Stock as contemplated by
Section 10 of the Plan, an adjustment shall be made to the Restricted Shares granted hereby as the Committee, in its sole discretion,
deems equitable or appropriate to prevent dilution or enlargement of the rights of Grantee.

 

 

1
To be revised if the Grantee has inconsistent provisions in the applicable employment or similar agreement.

 

    	 

     

    

 

7.
Additional Restrictions on Transfer. The Restricted Shares issued hereunder shall be
subject to any additional restrictions on transfer then in effect pursuant to the certificate of incorporation or by-laws of the
Company.

 

8.
Withholding.  Pursuant to Section 14 of the Plan, the Company may require Grantee to remit to the Company the minimum
amount necessary to satisfy all applicable income and employment taxes required to be withheld by the Company in connection with
this Agreement.

 

9.
Section 83(b). The Grantee understands that Section 83 of the Code taxes as ordinary income the difference between
the amount paid, if any, for the Restricted Shares and the fair market value of the Restricted Shares on each Vesting Date. The
Grantee understands that he may elect, pursuant to Section 83(b) of the Code, to be taxed at the time the Restricted Shares are
granted rather than when and as the Restricted Shares vest by filing a Section 83(b) election with the Internal Revenue Service
within 30 days from the date the Restricted Shares are transferred to Grantee. Grantee understands that failure to make this filing
timely shall result in the recognition of ordinary income by the Grantee on the fair market value of the Restricted Shares as
the Restricted Shares become vested and nonforfeitable. GRANTEE ACKNOWLEDGES THAT IT IS GRANTEE’S SOLE RESPONSIBILITY, AND
NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF GRANTEE REQUESTS THE COMPANY OR ITS REPRESENTATIVES
TO MAKE THIS FILING ON GRANTEE’S BEHALF.

 

10.
Clawback. Pursuant to Section 12.6 of the Plan, every Award issued pursuant to the Plan is subject to potential forfeiture
or “clawback” to the fullest extent called for by applicable federal or state law or any policy of the Company. By
accepting this Award, the Grantee agrees to be bound by, and comply with, the terms of any such forfeiture or “clawback”
provision imposed by applicable federal or state law or prescribed by any policy of the Company.

 

11.
Plan. This Agreement and all rights of Grantee under this Agreement are subject to all of the terms and conditions
of the Plan, which are incorporated herein by reference. In the event of a conflict or inconsistency between the terms and conditions
of this Agreement and the Plan, the terms and conditions of the Plan shall govern. Grantee agrees to be bound by the terms of
the Plan and this Agreement. Grantee acknowledges having read and understood the Plan and this Agreement. Unless otherwise expressly
provided in other sections of this Agreement, provisions of the Plan that confer discretionary authority on the Board or the Committee
do not (and shall not be deemed to) create any rights in Grantee unless such rights are expressly set forth herein or are otherwise
in the sole discretion of the Board or the Committee so conferred by appropriate action of the Board or the Committee under the
Plan after the date hereof.

 

12.
Entire Agreement. This Agreement and the Plan together constitute the entire agreement and supersede all prior understandings
and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. This Agreement may be amended
only by a written agreement executed by the Company and Grantee.

 

13.
Counterparts. This Agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same instrument.

 

14.
Section Headings. The section headings of this Agreement are for convenience of reference only and shall not be deemed
to alter or affect any provision hereof.

 

15.
Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State
of Delaware without regard to conflict of law principles thereunder.

 

    	 

     

    

 

by
executing this AGREEMENT, GRANTEE accepts participation in the plan, acknowledges that he has read and understands the provisions
of this AGREEMENT and the plan, and agrees that this AGREEMENT AND THE pLAN shall govern the terms and conditions of thIS AWARD.

 

IN
WITNESS WHEREOF, the Company and Grantee have duly executed this Agreement effective as of the Date of Grant set forth above.

 

	MOTORSPORT GAMES INC. 	 	GRANTEE
	 	 	 	 
	By:	 	 	 
	Print Name:	 	 	Signature
	Its:	 	 	 
	 	 	 	Print Name

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