Document:

Exhibit
10.3

 

PROMISSORY
NOTE

 

(LINE
OF CREDIT UP TO $10,000,000.00)

 

	UP
    TO U.S. $10,000,000.00	Effective
    Date: April 1, 2020
	 	Executed
    and Delivered in Miami, Florida

 

ON
DEMAND (or as otherwise provided in this Note), FOR VALUE RECEIVED, the undersigned, MOTORSPORT GAMING US, LLC, a Florida company
(“Maker”), does hereby promise to pay to the order of MOTORSPORT NETWORK, LLC, a Florida limited liability
company (“Holder”), the principal sum of up to U.S. $10,000,000.00.

 

1.
Interest. This promissory note (this “Note”) bears interest at a rate of ten percent (10%) per annum,
compounded quarterly (the “Interest”) based upon a 365-day year.

 

2.
Funding of Advances; Payment. The principal amount of this Note has been and shall continue to be funded by Holder
to Maker in one or more advances in the amount of each such advance and on the date of each such advance (each, an “Advance
Date”) as determined by Maker and Holder (each, an “Advance” and collectively, the “Advances”).
The Advance(s) and Advance Date(s) shall be set forth in Annex A attached to this Note (such Annex A to be updated from
time to time after any new Advances are made). All sums payable by Maker hereunder shall be payable to Holder by wire transfer
to the bank account as Holder may designate from time to time in writing, in currency as shall be legal tender at the time of
payment for the payment of public and private debts in the United States of America. The entire outstanding principal balance
of this Note and all accrued and unpaid interest hereunder shall be paid in full in a single payment upon demand by Holder (unless
earlier payment is required in accordance with the terms and conditions of this Note, including, without limitation, paragraphs
3 and 4 below).

 

The
undersigned Maker hereby expressly acknowledges and agrees that this Note is a demand note and matures upon issuance, and that
the indebtedness hereunder shall be payable upon demand (unless earlier payment is required in accordance with the terms and conditions
of this Note), and that Holder may, at any time in its sole and absolute discretion, without notice and without reason and whether
or not any Event of Default (as defined below) or Corporate Event (as defined below) shall have occurred and/or exist under this
Note, without notice, demand that this Note and the indebtedness hereunder be immediately paid in full. Holder may from time to
time make demand for partial payments under this Note and these demands shall not preclude Holder from demanding at any time that
this Note be immediately paid in full. Further, the demand nature of this Note shall not be deemed to be modified, limited or
otherwise affected by any reference to any Default in this Note, and to the extent that there are any references to any Events
of Default or Corporate Events hereunder.

 

3.
Prepayment. This Note may be voluntarily prepaid by Maker in whole or in part at any time or from time to time without
penalty or charge. Any partial prepayment made with respect to this Note shall reduce the outstanding principal balance hereunder.

 

    	 

     

    

 

4.
Acceleration Upon Corporate Event; Acceleration Upon Event of Default. In the event Maker or any other entity in the
consolidated group of Maker (including parent entity of Maker or direct or indirect subsidiary of Maker or such parent entity)
consummates any capital reorganization, consolidation, joint venture, spin off, merger or any other business combination or restructuring
of any nature whatsoever (a “Corporate Event”), the entire principal amount and all accrued and unpaid interest
hereunder shall be accelerated and become payable by Maker to Holder on the date of consummation of such Corporate Event. Further,
the entire unpaid principal balance of this Note shall become immediately due and payable upon the occurrence of any of the following
events (each, an “Event of Default”):

 

(a)
Maker shall: (i) apply for or consent to the appointment of a receiver, trustee, liquidator, or custodian of itself or of
all or a substantial part of its property,(ii) admit in writing its inability, to pay its debts generally as they mature, (iii)
make a general assignment for the benefit of any of its creditors, (iv) be dissolved or liquidated in full or in part,(v) commence
a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under
any bankruptcy, insolvency, or other similar law now or hereafter in effect or consent to any such relief or to the appointment
of or taking possession of its property by any official in an involuntary case or other proceeding commenced against it, or (vi)
take any action for the purpose of effecting any of the foregoing; or

 

(b)
Maker seeks the appointment of a receiver, trustee, liquidator, or custodian of Maker or of all or a substantial part of the
property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization, or other relief with respect
to Maker or the debts thereof under any bankruptcy, insolvency, or other similar law or hereafter in effect shall be commenced
and an order for relief entered or such proceeding shall not be dismissed or discharged within sixty (60) days of commencement;
or

 

(c)
Maker fails to pay the principal amount under this Note when due and payable (whether on demand by Holder or due to an Event
of Default or a Corporate Event) and such failure continues for five (5) business days from the date of such failure.

 

5.
Use of Proceeds. The entire principal amount under this Note shall be used for working capital, operations, acquisitions,
investments or any other purposes of Maker as determined by Maker.

 

6.
Severability. The invalidity of any one or more of the words, phrases, sentences, clauses, sections or subsections
contained in this Note shall not affect the enforceability of the remaining portions of this Note or any part hereof, all of which
are inserted conditionally on their being valid in law, and, in the event that any one or more of the words, phrases, sentences,
clauses, sections or subsections contained in this Note shall be declared invalid, this Note shall be construed as if such invalid
word or words, phrase or phrases, sentence or sentences, clause or clauses, section or sections, or subsection or subsections
had not been inserted.

 

7.
Time is of the Essence. Time shall be of the essence with respect to the terms of this Note.

 

    	 

     

    

 

8.
Amendments. Except as expressly stated herein to the contrary, this Note may not be amended or modified in any way,
except by a written instrument executed by Maker and Holder.

 

9.
Assignment. No party to this Note may assign or transfer this Note, nor may any of such party’s rights hereunder
be assigned or transferred in any manner to any person or entity.

 

10.
Governing Law; Venue. This Note shall be governed by and construed in accordance with the local laws of the State of
Florida without reference to that state’s rules regarding choice of law. The exclusive venue for all actions or disputes
relating to this Note shall be a state of federal court located in Miami-Dade County, Florida and the parties irrevocably submit
to personal jurisdiction before that court, and agree not to assert, by way of motion, as a defense or otherwise in any such suit,
action or proceeding that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action
or proceeding is improper or that this Note or the subject matter hereof may not be enforced by such court or that the court lacks
personal jurisdiction over them.

 

11.
Jury Trial Waiver. EACH OF MAKER AND HOLDER VOLUNTARILY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS NOTE OR ANY OTHER DOCUMENT RELATED HERETO, OR THE TRANSACTIONS
OR OBLIGATIONS UNDER WHICH THIS NOTE WAS DELIVERED, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER ORAL OR WRITTEN)
OR ACTIONS OF ANY PARTY RELATING TO THIS NOTE.

 

12.
Presentation. All parties now or hereafter liable with respect to this Note, whether Maker, endorser or any other person
or entity, hereby expressly waive presentation, demand of payment, protest, notice of demand of payment, protest and notice of
non-payment, or any other notice of any kind with respect hereto.

 

13.
Waiver. No delay or failure on the part of Holder in the exercise of any right or remedy hereunder or at law or in
equity, shall operate as a waiver thereof, and no single or partial exercise by Holder of any right or remedy hereunder, under
any loan agreement or security agreement, or at law or in equity shall preclude or estop another or further exercise thereof or
the exercise of any other right or remedy.

 

14.
Counterparts. This Note may be executed in any number of counterparts, each of which when executed, shall be deemed
to be an original and all of which together shall be deemed to be one and the same instrument binding upon all of the parties
hereto notwithstanding the fact that all parties are not signatory to the original or the same counterpart. For purposes of this
Note, facsimile signatures or signatures transmitted by electronic mail in pdf format shall be deemed originals.

 

    	 

     

    

 

IN
WITNESS WHEREOF, Maker has executed this Note as of the Effective Date set forth above.

 

	 	MAKER:
	 
	 	MOTORSPORT
    GAMING US LLC
	 	 
	 	By: 	 /s/ Dmitry Kozko 
	 	Name:	Dmitry
Kozko
	 	Title: 	CEO

 

	HOLDER
    ACCEPTS AND ACKNOWLEDGES:
	 	 	 
	MOTORSPORT
    NETWORK, LLC
	 
	By:	 /s/ Mike Zoi 	 
	Name:	Mike Zoi	 
	Title:	Manager	 

 

    	 

     

    

 

ANNEX
A

 

Schedule
of Advance(s) and Advance Date(s)

(to
be updated from time to time after any new Advances are made)

 

	Advance
    Date	 	Advance
    Amount (in U.S. Dollars)
	September
    30, 2018	 	$4,473,169
	March
    31, 2019	 	$1,891,322
	June
    30, 2019	 	$499,973
	September
    30, 2019	 	$428,791
	December
    31, 2019	 	$707,526
	March
    31, 2020	 	$258,917Exhibit 10.4

STOCKHOLDERS’
AGREEMENT 

 

This
STOCKHOLDERS’ AGREEMENT (“Agreement”), effective as of August 14, 2018 (the “Effective Date”),
is entered into by and among Gaming Nation Inc., an Ontario corporation (“GN”), PlayFast Games, LLC,
a North Carolina limited liability company (“PF”), Leo Capital Holdings, LLC, an Illinois limited liability
company (“Leo”), HC2 Holdings 2, Inc., a Delaware corporation (“HC2”), Continental
General Insurance Company, a Texas corporation (“CGI”), and Motorsport Gaming US LLC, a Florida
limited liability company (“Motorsport” and together with GN, PF, Leo, HC2 and CGI, the “Stockholders”),
and 704Games Company, a Delaware corporation (formerly DMi, Inc.) (the “Company”), with respect to the
following:

 

RECITALS:

 

 

WHEREAS,
the Company, GN, PF, Leo and HC2 previously entered into that certain Amended and Restated Investor Rights Agreement, dated as
of April 12, 2016 (the “Prior Agreement”).

 

WHEREAS,
Motorsport is purchasing, concurrently with the Effective Date, from the Company 217,352 newly issued shares of the Company’s
common stock, par value $0.001 per share (“Common Stock”) pursuant to that certain Stock Purchase Agreement,
dated on or about the date hereof, between the Company and Motorsport (the “Purchase Agreement”).

 

WHEREAS,
the obligations in the Purchase Agreement are conditioned upon (i) termination of the Prior Agreement as of the Effective Date
and (ii) the execution and delivery of this Agreement; and

 

WHEREAS,
the Stockholders beneficially own the number of shares of the outstanding common stock, par value $0.001 per share, of the Company
(the “Common Stock”), and Series A Convertible Participating Preferred Stock (the “Preferred Stock”
and collectively with Common Stock, the “Shares”) as follows:

 

	Stockholder	Number
    of Shares
	 	 
	GN	41,204
    shares of Common Stock
	 	 
	HC2	54,807
    shares of Common Stock
	 	 
	PF	30,903
    shares of Common Stock
	 	 
	Leo	10,301
    shares of Common Stock
	 	 
	CGI	51,500
    shares of Common Stock
	 	 
	Motorsport	217,352
    shares of Common Stock

 

WHEREAS,
the Stockholders and the Company desire to enter into this Agreement to supersede in its entirety the Prior Agreement and to provide
for (1) certain restrictions on the transfer and disposition of the Shares, and (2) certain other terms, rights, and obligations
concerning the Shares and the operations, business, and affairs of the Company, all as more specifically provided herein.

 

NOW,
THEREFORE, in consideration of the foregoing, and the mutual agreements and covenants contained herein, the Parties agree
as follows:

 

    	1

     

    

 

1. Definitions.

 

As
used herein, the following words shall have the following meanings:

 

1.1
“Act” shall mean the Securities Act of 1933, as amended.

 

1.2
“Affiliate” shall mean any Person who directly or indirectly controls, is controlled by, or is under common
control with the specified Person.

 

1.3
“Agreement” shall mean this Stockholders’ Agreement.

 

1.4
“Board” shall mean the Board of Directors of the Company.

 

1.5
“Change of Control” means (i) the Disposition of all or substantially all of the assets of the Company to any
Person; (ii) a Disposition resulting in more than fifty percent (50%) of the Shares being held by one or more Persons; or (iii)
a merger, consolidation, recapitalization, reorganization or similar transaction of the Company.

 

1.6
“Company” shall mean 704GAMES COMPANY, a Delaware corporation (formerly DMi, Inc.), and its successors and
assigns.

 

1.7
“Disposition” (and, in the verb form, “Dispose”) shall mean any assignment, transfer, sale,
exchange, conveyance, disposition, gift or testamentary disposition whatsoever, whether voluntary, involuntary, by operation of
law or otherwise.

 

1.8
“Equity Securities” shall mean (i) any Common Stock, Preferred Stock, any other preferred stock or other security
of the Company, (ii) any security convertible into or exercisable or exchangeable for, with or without consideration, any Common
Stock, Preferred Stock, any other preferred stock or other security (including any option to purchase such a convertible security),
(iii) any security carrying any warrant or right to subscribe to or purchase any Common Stock, Preferred Stock, or any other preferred
stock or other security or (iv) any such warrant or right.

 

1.9
“Offered Shares” shall have the meaning set forth in Section 3.2.

 

1.10
“Offering Stockholder” shall have the meaning set forth in Section 3.2.

 

1.11
“Parties” shall mean the Company and each of the Stockholders. “Party” shall mean one of
the foregoing.

 

1.12
“Percentage Interest” shall mean, with respect to a Stockholder as of any date, such Stockholder’s portion
of all outstanding Shares, expressed as a percentage, and adjusted from time to time in accordance with this Agreement. The percentage
referenced in the preceding sentence shall be determined by dividing (x) the total number of Shares held by such Stockholder as
of such date by (y) the total number of outstanding Shares held by all Stockholders as of such date.

 

1.13
“Person” shall mean an individual, firm, partnership, corporation, or other legal or business entity, howsoever
characterized.

 

1.14
“Remaining Shares” shall have the meaning set forth in Section 3.2.

 

1.15
“Remaining Stockholder” shall have the meaning set forth in Section 3.2.

 

1.16
“Securities” shall mean and include any securities of the Company the holders of which are entitled to vote
for members of the Board, including without limitation, all shares of Common Stock, Preferred Stock and any other preferred stock
or other security of the Company by whatever name called, now owned or subsequently acquired by the Stockholders, however acquired,
whether through stock splits, stock dividends, reclassifications, recapitalizations, conversions, similar events or otherwise.

 

    	2

     

    

 

1.17
“Stockholder” and “Stockholders” shall mean the Stockholders as reflected in the introductory
paragraph above, any Stockholders subsequently added to this Agreement pursuant to Section 2.2, and their legal representatives,
permitted successors, and permitted assigns.

 

1.18
“Transfer” shall mean to Dispose or pledge, encumber, hypothecate, or otherwise create a security interest,
whether voluntary, involuntary, by operation of law or otherwise.

 

2.
Issuance of Shares.

 

2.1
The Parties understand that the Shares have not been registered under the Act and have been issued in reliance in part upon the
exemptions afforded under Regulation D or Section 4(a)(2) of the Act; nor have such Shares been registered or qualified under
the securities laws of any state securities laws.

 

2.2
Subject to the restrictions and provisions of this Agreement, including Section 5.3, the Board shall be authorized to sell
additional shares of Common Stock or Preferred Stock, provided that any new Stockholder executes and agrees to be bound by the
terms of this Agreement by executing a counterpart to this Agreement.

 

2.3
Each certificate, if any, representing the Shares of the Company shall bear on the face of the same the following legend:

 

“The
sale or other transfer for consideration of the shares represented by this certificate or any interest therein is subject to the
restrictions of a Stockholders’ Agreement effective as of August 14, 2018, as the same may be amended or restated from time
to time (the “Stockholders’ Agreement”). A copy of the Stockholders’ Agreement is available for
inspection during normal business hours at the principal executive office of the Company. All the terms and provisions of the
Stockholders’ Agreement are hereby incorporated by reference and made a part of this certificate. THESE SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.”

 

3.
Transfers.

 

3.1
All Transfers Limited.

 

(a)
Except as provided in Section 3.3, no Stockholder shall Transfer any Shares (including rights to receive distributions
with respect to such Shares), whether in order to secure any debt or obligation or otherwise, and whether voluntarily or involuntarily,
without the complying with the provisions of Section 3.2.

 

(b)
Subject to the restrictions of this Agreement, no Stockholder shall Dispose of all or any part (whether with or without consideration
and whether voluntarily or involuntarily or by operation of law) of the Shares owned by it unless and until the transferee, and
such transferee’s spouse (if any) executes and delivers to the Company a counterpart signature page of this Agreement, and
any spousal consent (if applicable), whereby such transferee (and such transferee’s spouse, if applicable) shall become
bound by the provisions of this Agreement (and the spousal consent) in the same manner and to the same extent as the other Stockholders
(or their spouses, as applicable).

 

    	3

     

    

 

(c)
Subject to Section 3.1(d) below, any Transfer in violation of this Section 3.1 shall be void ab initio and
of no force or effect.

 

(d)
Notwithstanding anything to the contrary contained in this Agreement or otherwise, each Stockholder may Transfer any Shares (including
rights to receive distributions with respect to such Shares) to such Stockholders’ Affiliate without any consent of approval
of the Board, any other Stockholder and without the Legacy Director Approval.

 

3.2
Rights of First Refusal.

 

(a)
Notice of Intent to Dispose. If a Stockholder wishes to Dispose of any of his, her or its Shares (an “Offering
Stockholder”), such Offering Stockholder must first give written notice of such intent to the Company (the “Disposition
Notice”). The Disposition Notice shall (i) be accompanied by a signed copy of any proposed Disposition agreement or
offer letter and (ii) name the proposed transferee, describe such transferee’s business background and specify the class
and series of Shares to be sold (each, an “Offered Share”), the number of Offered Shares, the price per Offered
Share, the payment terms the intended date of such Disposition and the other material terms and conditions to such Disposition.
Promptly on receipt of the Disposition Notice, the secretary of the Company shall forward a copy of the Disposition Notice to
each member of the Board.

 

(b)
Company Right of First Refusal. For twenty (20) days following delivery of the Disposition Notice to the Company in accordance
with this Agreement (the “Company Exercise Period”), the Company shall have the right of first refusal (but
not an obligation) to purchase the Offered Shares. The purchase price and terms for such right of first refusal shall be the same
price per Share and terms and conditions as those offered to the proposed transferee. If the Company exercises the option on or
prior to the expiration of the Company Exercise Period, as to all or part of the Offered Shares, the Company shall give notice
of that fact to the Offering Stockholder.

 

(c)
Stockholders’ Secondary Right of First Refusal. If the Company does not exercise its right of first refusal as to
all of the Offered Shares on or prior to the expiration of the Company Exercise Period, then the Stockholders other than the Offering
Stockholder (the “Remaining Stockholders”) shall have a right of first refusal (but not an obligation) to purchase
any Offered Shares not purchased by the Company (the “Remaining Shares”).

 

(i)
Notice. A copy of the Disposition Notice shall be given by the Company to the Remaining Stockholders promptly, and in any
event no less than two (2) days, following the earlier of: (a) the day following the Company’s election not to exercise
its right of first refusal as to all of the Offered Shares; or (b) the expiration of the Company Exercise Period. The purchase
price and terms for the Remaining Stockholders’ right of first refusal shall be the same price per Share and terms and conditions
as those offered to the proposed transferee.

 

(ii)
Exercise. Within twenty (20) days after the delivery of the Disposition Notice to the Remaining Stockholders (the “Stockholder
Notice Period”), any Remaining Stockholder desiring to acquire any part or all of the Remaining Shares shall deliver
to the CEO or President of the Company a written election to purchase such Remaining Shares. Notwithstanding the foregoing, if
more than one Remaining Stockholder wishes to purchase all of the Remaining Shares, then each Remaining Stockholder shall have
the right to purchase its Percentage Interest of Remaining Shares (as determined with respect to the Remaining Stockholders) or
such Remaining Shares as the Remaining Stockholders may otherwise agree among themselves, each at the same price per Share and
terms and conditions as those offered to the proposed transferee.

 

    	4

     

    

 

(iii)
Undersubscription of Transfer Stock. If rights of first refusal have been exercised by the Company or any Remaining Stockholders
pursuant to this Section 3.2 with respect to some but not all of the Offered Stock by the expiration of the Stockholder Notice
Period, then the Company shall, within three (3) days after the expiration of the Stockholder Notice Period, send written notice
(the “Undersubscription Notice”) to those Remaining Stockholders who fully exercised their right of first refusal
within the Stockholder Notice Period (the “Exercising Stockholders”). Each Exercising Stockholder shall, subject
to the provisions of this Section 3.2(c)(iii), have an additional right to purchase all or any part of the balance of any
such remaining unsubscribed Remaining Shares at the same price per Share and terms and conditions as those offered to the proposed
transferee. To exercise such right, an Exercising Stockholder must deliver an Undersubscription Notice to the Offering Stockholder
and the Company within ten (10) days after the expiration of the Stockholder Notice Period. In the event there are two (2) or
more such Exercising Stockholders that choose to exercise such right of first refusal for a total number of Remaining Shares in
excess of the number available, the Remaining Shares available for purchase under this Section 3.2(c)(iii), shall be allocated
to such Exercising Stockholders pro rata based on the number of shares of Offered Stock such Exercising Stockholders have elected
to purchase pursuant to their rights of first refusal (without giving effect to any shares of Offered Stock that any such Exercising
Stockholder has elected to purchase pursuant to the Undersubscription Notice). If the rights to purchase the remaining shares
are exercised in full by the Exercising Stockholders, the Company shall immediately notify all of the Exercising Stockholders
and the Offering Stockholder of that fact.

 

(d)
Closing. Within five (5) days after the expiration of the Stockholder Notice Period or the Undersubscription Period (as
applicable) the CEO or President of the Company shall notify each Remaining Stockholder who exercised its right of first refusal
of the number of the Remaining Shares as to which such Remaining Stockholder’s election is effective. The closing of the
purchase of Offered Stock by the Company and the Remaining Stockholders (as applicable) shall take place, and all payments from
the Company and the Remaining Stockholders (as applicable) shall have been delivered to the Offering Stockholder, by the later
of (i) the date specified in the Proposed Disposition Notice as the intended date of the proposed transferee; and (ii) one hundred
twenty (120) days after delivery of the Disposition Notice.

 

(e)
Not All Shares Purchased. If not all of the Offered Shares are subscribed for, the Offering Stockholder is free to Dispose
all of the Offered Shares not subscribed for to the transferee named in the Disposition Notice, subject to Section 3.4
hereof. This Disposition may occur at any time within forty-five (45) days following the expiration of the Stockholder Notice
Period or the Undersubscription Period (as applicable) and shall be made at the price and on the terms and conditions stated in
the Disposition Notice. The Offering Stockholder shall not be entitled to Dispose of the Shares without again complying with this
Section unless the Offered Shares are actually Disposed of within such forty-five (45) day period to the proposed transferee named,
and at the price and on the terms and conditions specified, in the Disposition Notice.

 

(f)
Dispositions Not Subject To Right Of First Refusal. The following Dispositions (“Permitted Dispositions”)
shall not be subject to the rights of first refusal set forth in this Section 3.2:

 

(i)
Dispositions Among Stockholders. Any Stockholder may effect the Disposition of such Shares by Disposing such Shares to
another Stockholder in an arm’s length transaction for said Shares’ fair market value.

 

(ii)
Inter Vivos Dispositions. Any Stockholder who is a natural person may Dispose, by inter vivos Disposition, any or all of
his, her, or its Shares to a trust primarily for such Stockholder’s (and/or his or her immediately family’s) benefit
so long as such Stockholder is and remains a trustee of the trust and, as such, has sole voting and disposition control on behalf
of the trust with respect to such Shares, and provided that all terms and conditions set forth in this Agreement shall apply to
such Shares as if still held by the transferor Stockholder. Any Shares Disposed pursuant to this Section 3.2(b) subsequently
may be Disposed back to the Disposing Stockholder, in which case the terms and conditions of this Agreement shall also apply.

 

(iii)
Company Repurchase Rights. The Company may repurchase Shares from any Stockholder at the lower of cost or the then current
fair market value for such Shares pursuant to the terms of any separate written agreement to which such Stockholder is a party
containing vesting or repurchase provisions with respect thereto.

 

    	5

     

    

 

(iv)
Drag-Along or Tag-Along. A Disposition may be effected pursuant to (1) the exercise of the drag-along rights set forth
in Section 3.3 and (2) the tag-along rights set forth in Section 3.4 hereof.

 

(v)
Equityholder Disposition. Any Stockholder who is a corporation, limited partnership or limited liability company may effect
the Disposition of such Shares by Disposing such Shares to its stockholders, members, partners or Affiliates.

 

3.3
Drag-Along Rights

 

(a)
Participation. If the holders of at least 85% of the Company’s then issued and outstanding voting securities approve
or agree to effect (the “Approving Stockholders”) a Change of Control (a “Drag-Along Sale”),
then, each Stockholder (each, a “Drag-Along Stockholder”) shall participate in such Drag-Along Sale in the
manner set forth in this Section 3.3.

 

(b)
Sale of Stock; Sale of Assets. Subject to compliance with Section 3.3(c) and Section 3.3(d):

 

(i)
If the Drag-Along Sale is structured as a Change of Control involving the sale of Shares, then each Drag-Along Stockholder shall
sell, with respect to all Shares included in the Drag-Along Sale, the same proportion of his, her or its Shares being sold by
the Company’s other Stockholders and holders of the Equity Securities (on an as converted into Common Stock basis), and
on the same terms and conditions as the Company’s other Stockholders and holders of the Equity Securities; and

 

(ii)
If the Drag-Along Sale is structured as a sale of all or substantially all of the consolidated assets of the Company or as a merger,
consolidation, recapitalization, reorganization or similar transaction of the Company or other transaction requiring the consent
or approval of the Stockholders, then notwithstanding anything to the contrary in this Agreement, each Drag-Along Stockholder
shall (A) vote (in person, by proxy or by written consent, as requested) all of its Shares in favor of the Drag-Along Sale (and
any related actions necessary to consummate such sale) and otherwise consent to and raise no objection to such Drag-Along Sale
and such related actions and (B) refrain from taking any actions to exercise, and shall take all actions to waive, any dissenters’,
appraisal, or other similar rights that it may have in connection with such transaction.

 

(c)
Drag-Along Notice. The Approving Stockholders shall exercise their rights pursuant to this Section 3.3 by delivering
a written notice (the “Drag-Along Notice”) to each Drag-Along Stockholder no more than ten (10) days after
the execution and delivery by all of the parties thereto of the definitive agreement entered into with respect to the Drag-Along
Sale (the “Drag-Along Agreement”) and, in any event, no later than twenty (20) days prior to the closing date
of such Drag-Along Sale. The Drag-Along Notice shall attach a copy of the Drag-Along Agreement and all ancillary agreements (including
any form of ancillary agreement) proposed to be executed in connection with the Drag-Along Sale and describe in reasonable detail
(i) the name(s) of the parties to the Drag-Along Sale, (ii) the proposed date, time, and location of the closing of the Drag-Along
Sale and (iii) the proposed amount and form of consideration in the Drag-Along Sale, including, if applicable, the purchase price
per Share and the other material terms and conditions of the Drag-Along Sale.

 

(d)
Conditions of Sale. The obligations of the Drag-Along Stockholders in respect of a Drag-Along Sale under this Section
3.3 are subject to the satisfaction of the following conditions:

 

(i)
The consideration to be received by each Drag-Along Stockholder shall be the same form and price per Share to be received by each
other Drag-Along Stockholder (on a fully diluted and exercised basis) and the terms and conditions of such sale shall be the same
as those upon which each other Drag-Along Stockholder sells its Shares;

 

    	6

     

    

 

(ii)
If any Drag-Along Stockholder is given an option as to the form and amount of consideration to be received, the same option shall
be given to all Drag-Along Stockholders;

 

(iii)
Each Drag-Along Stockholder shall execute the same Drag-Along Agreement and any related ancillary agreements in connection with
the Drag-Along Sale (in each case, as applicable) and make or provide the same representations, warranties, covenants (including
covenants not to compete and other restrictive covenants), indemnities (directly to the third party purchaser and/or indirectly
pursuant to a contribution agreement, as required by the Board), purchase price adjustments, escrows, and other obligations as
each other Drag-Along Stockholder makes or provides in connection with the Drag-Along Sale; and

 

(iv)
Each Drag-Along Stockholder’s liability for indemnification in the Drag-Along Sale (including for the inaccuracy of any
representations and warranties made by the Company), is several and not joint with any other person (except to the extent that
funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as
well as breach by any Drag-Along Stockholder of any representations, warranties and covenants provided by all Drag-Along Stockholders),
and is pro rata in proportion to and does not exceed the amount of consideration paid to such Drag-Along Stockholder in connection
with such Drag-Along Sale.

 

(e)
Cooperation. Each Drag-Along Stockholder shall take all actions as may be reasonably necessary to consummate the Drag-Along
Sale, including, without limitation, entering into agreements and delivering certificates and instruments, in each case, consistent
with the agreements being entered into and the certificates being delivered by each other Drag-Along Stockholder.

 

(f)
Fees and Expenses. The fees and expenses of the Stockholders (either directly or indirectly by the Company) incurred in
connection with a Drag-Along Sale and for the benefit of all Drag-Along Stockholders, to the extent not paid or reimbursed by
the Company or the third party purchaser, shall be shared by all the Drag-Along Stockholders on a pro rata basis, based on the
aggregate monetary consideration received by each such Stockholder in the Drag-Along Sale.

 

3.4
Tag-Along Rights.

 

(a)
If a Stockholder desires to Dispose of any or all of its Shares, such Disposition is subject to the restrictions set forth in
this agreement (including the rights of first refusal set forth in Section 3.2), and if there are any Remaining Shares
after the expiration of the Stockholder Notice Period or the Undersubscription Period (as applicable), each Remaining Stockholder
may elect to exercise its right to participate with the Offering Stockholder in the proposed Disposition (the “Tag-Along
Sale”) at the same price per Share and terms and conditions as those offered to the proposed transferee.

 

(b)
Each Remaining Stockholder who desires to exercise its tag-along right must give the Offering Stockholder a written notice prior
to the expiration of Stockholder Notice Period. If any Remaining Stockholder elects to participate in such Disposition (each such
Person so electing to participate is a “Tag-Along Stockholder”), each Tag-Along Stockholder will be entitled
to sell in the contemplated Disposition, at the same price per Share and terms and conditions, the number of Remaining Shares
equal to the product of (i) the quotient determined by dividing (A) the Percentage Interest of the Tag-Along Stockholder by (B)
the sum of the Percentage Interests of the Offering Stockholder and all of the Tag-Along Stockholders, multiplied by (ii)
the number of Remaining Shares to be sold in the Tag-Along Sale. For the avoidance of doubt, all numbers included in such formula
shall be determined after taking into account any Remaining Shares bought or sold (or to be bought or sold) pursuant to the Remaining
Stockholders’ rights of first refusal set forth in Section 3.2. For example, if there were 20 Remaining Shares,
and if the Offering Stockholder’s Percentage Interest at such time was 10% and if the sum of the Tag-Along Stockholders’
Percentage Interests at such time was 75%, the Offering Stockholder would be entitled to sell 2.35 Remaining Shares ((10% ÷
85%) x 20 Shares) and the Tag-Along Stockholders would be entitled to sell 17.65 Remaining Shares ((75% ÷ 85%) x 20 Shares).

 

    	7

     

    

 

(c)
The Offering Stockholder will not Dispose of any of its Shares to the prospective transferee if the prospective transferee declines
to allow the participation of any Tag-Along Stockholder.

 

(d)
If the closing of such Tag-Along Sale does not occur within one hundred twenty (120) days after the date of the Disposition Notice
with respect thereto, or if the actual price per Share and terms and conditions of the Tag-Along Sale are not the same price per
Share and terms and conditions as those offered to the proposed transferee by the Offering Stockholder, the Tag-Along Stockholders
shall be entitled to revoke their election to participate in such Tag-Along Sale, in which event any subsequent Disposition of
Shares by such Offering Stockholder shall once again become subject to the provisions of Section 3.1, Section 3.2
and this Section 3.5. The exercise or non-exercise of the rights of a Stockholder hereunder to participate in one or more
sales of Shares made by an Offering Stockholder shall not adversely affect a Stockholder’s right to participate in subsequent
sales of Shares.

 

(e)
Dispositions Not Subject To Tag-Along Rights. Permitted Dispositions (for the avoidance of doubt, other than Permitted
Distributions effected under Section 3.2(f)(iv)(2)) shall not be subject to the tag-along rights set forth in this Section
3.4.

 

4.
Other Agreements.

 

4.1
Covenant Not to Compete; Non-Solicitation.

 

(a)
As used in this Section 4.1, the following terms shall have the following meanings:

 

(i)
“Applicable Platform” means Sony PlayStation, Microsoft Xbox, Nintendo Wii, personal computers utilizing or
that will utilize from time to time during the during the Restricted Period (as defined below) Microsoft Windows as the operating
system, and any mobile phone or tablet devices utilizing Apple OS X, Apple iOS, Android, Blackberry OS, Microsoft Windows or any
successor platform, operating system or online version thereof, and any other similar platform, operating system or online version
utilized by the Company.

 

(ii)
“Restricted Business” means the business of developing, marketing, licensing and/or selling any video gaming
product that (A) is playable on an Applicable Platform, (B) is licensed to the Company on an exclusive basis from time to time
during the Restricted Period or developed by the Company or any of its subsidiaries exclusively for the use by the Company, and
(C) that has a motorsports theme that is intended to replicate authentic motorsports racing vehicles, competition rules and structure
and/or fantasy motorsports racing.

 

(b)
In consideration for the mutual promises contained herein, each Stockholder agrees that, for a period during which any such Person
holds or beneficially owns the Shares or any other securities of the Company plus three (3) years following the date after any
such Person ceases to hold or beneficially own the Shares or any other securities of the Company (the “Restricted Period”),
neither such Stockholder, nor its Affiliates, shall engage in the Restricted Business, whether directly or indirectly, as a partner,
stockholder, officer, director, employee, consultant, independent contractor, agent, sole proprietor, manager or other personal
or representative capacity, within the United States of America; provided, however, that nothing herein shall in
any manner (i) prohibit any Stockholder or any Affiliate thereof from owning, as a passive investment, up to two percent (2%)
of the outstanding equity securities of any Person listed on any national securities exchange, (ii) restrict any direct or indirect
holder or beneficial owner of equity in PF, or (iii) restrict Motorsport or any of its Affiliates with respect to its development
and licenses of the gaming products.

 

    	8

     

    

 

(c)
Each Stockholder agrees and covenants that, during the Restricted Period, it will not, anywhere in the world, individually or
collectively, directly or indirectly, cause, induce, encourage, or assist any Person to (i) call on or solicit any supplier, vendor,
business partner, independent contractor, client or customer of the Company for purposes of diverting such customer to a competing
business, or induce or encourage (or attempt to induce or encourage) any supplier, vendor, business partner, independent contractor,
client or customer or other Person to cease conducting business with the Company; or (ii) induce or encourage (or attempt to induce
or encourage) any employee of the Company to leave such employment, whether for purposes of employing or contracting any such
employee in a competing business or for any other reason; provided, however, nothing in this Section 4.1(c)
shall prevent or preclude any Stockholder from, directly or indirectly, (A) offering employment through public advertising or
general solicitations to the public not targeting employees of the Company, or (B) soliciting, hiring, or otherwise engaging any
former employee of the Company whose employment was terminated by the Company more than six (6) months prior to the date of such
solicitation, hiring, or engagement.

 

(d)
The Parties agree that to the extent any provision or portion of Section 4.1 shall be held, found, or deemed to be unreasonable,
unlawful, or unenforceable by a court of competent jurisdiction, that any such provision or portion thereof shall be deemed to
be modified to the extent necessary in order that any such provision or portion thereof shall be legally enforceable to the fullest
extent permitted by applicable law. The Parties do further agree that any court of competent jurisdiction shall, and the Parties
hereto do hereby expressly authorize, require and empower any court of competent jurisdiction to, enforce any such provision thereof
in order that any such provision or portion thereof shall be enforced to the fullest extent permitted by applicable law.

 

4.2
Confidentiality.

 

(a)
Each Stockholder shall keep confidential and not divulge any information (including all client lists, business plans, and analyses)
concerning the Company, including its client information, assets, business, operations, financial condition, or prospects (“Information”),
and use such Information only in connection with the operation of the Company; provided, however, that nothing herein
shall prevent any Stockholder from disclosing such Information (i) upon the order of any court or administrative agency, (ii)
upon the request or demand of any regulatory agency or authority having jurisdiction over such Stockholder, (iii) to the extent
compelled by legal process or required pursuant to subpoena, interrogatories or other discovery requests, (iv) to the extent necessary
in connection with the exercise of any remedy hereunder, (v) to other Stockholders, (vi) to such Stockholder’s legal and
accounting advisors that in the reasonable judgment of such Stockholder need to know such Information or (vii) to the extent necessary
in connection with such Stockholder’s performance of duties to the Company as an employee or otherwise; provided,
further, that in the case of clause (i), (ii) or (iii), such Stockholder shall notify the Company of the proposed disclosure
as far in advance of such disclosure as practicable and use reasonable efforts to ensure that any Information so disclosed is
accorded confidential treatment. Upon the termination of any Stockholder’s employment with the Company for any reason, such
Stockholder shall promptly return all Information to the Company or provide the Company with written certification that all such
Information has been destroyed.

 

(b)
The restrictions of this Section 4.2 shall not apply to information that (i) is or becomes generally available to the public
other than as a result of a disclosure by a Stockholder in violation of this Agreement; (ii) is or becomes available to a Stockholder
on a non-confidential basis prior to its disclosure to the receiving Stockholder, (iii) is or has been independently developed
or conceived by such Stockholder without use of the Company’s Information or (iv) becomes available to the receiving Stockholder
on a non-confidential basis from a source other than the Company or any other Stockholder, provided, that such source is
not known by the recipient of the information to be bound by any obligation of confidentiality to the Company or any disclosing
Stockholder or any of their representatives.

 

    	9

     

    

 

(c)
As a violation by any Party of this Section 4.2 would cause irreparable injury to the Company, and there is no adequate
remedy at law for such violation, the Company shall, notwithstanding anything to the contrary herein, have the right in addition
to any other remedies available, at law or equity, to equitable relief against the Stockholder from violating such provisions.
The Parties hereby waive any and all defenses they may have on the grounds of lack of jurisdiction or competence of the court
to grant an injunction or other equitable relief, or otherwise. The existence of this right shall not preclude any other rights
and remedies at law or in equity that the Company may have.

 

4.3
Consent to Specific Performance under the Purchase Agreement. Each Stockholder hereby consents to the issuance of Shares
to Motorsport (and waives its rights under Section 6.1 of this Agreement) to the limited extent such issuance is made pursuant
to the enforcement by Motorsport of its rights under and in accordance with Section 8.17 of the Purchase Agreement, which is set
forth below:

 

“If
as of the date of the Closing the representation of the Company in Section 2.2.4 of this Agreement is breached because any person
owns or has a legally binding and enforceable right to own shares of the capital stock of the Company (or securities convertible
for shares of such capital stock), and such ownership or right causes the Purchaser to own less than own fifty one percent (51%)
of the capital stock of the Company, calculated on a fully diluted basis as of the date of the Closing (the “Minimum
Threshold”), the Purchaser may elect in lieu of its rights under Section 6.1.1 to require the Company to issue such
number of shares of Common Stock (with the same powers, preferences and other rights held by the other Common Stock of the Company)
necessary to cause the Purchaser to own the Minimum Threshold. For the avoidance of doubt, the calculation of the Minimum Threshold
shall exclude any and all stock appreciation rights, phantom stock rights or other rights that are not convertible for shares
of the capital stock of the Company.”

 

5.
Voting Provisions Relating to the Board; Special
Approval Rights.

 

5.1
Board Size and Composition.

 

(a)
Each Stockholder shall vote, or cause to be voted, at a regular or special meeting of stockholders (or by written consent) all
Securities owned by such Stockholder (or as to which such Stockholder has voting power or voting control) in whatever manner as
shall be necessary to ensure that the size of the Board shall be set and remain at five (5) directors.

 

(b)
On the date hereof and from time to time and at all times thereafter, in any election of the Company’s directors, the Stockholders
shall each vote at any regular or special meeting of stockholders (or by written consent) all Securities owned by such Stockholder
(or as to which such Stockholder has voting power or voting control) to elect three (3) directors nominated by Motorsport and
two (2) directors nominated by the holders of a majority of the shares of the Company’s capital stock held by GN, PF, Leo,
HC2 and CGI.

 

(c)
Any vote taken to remove any director elected pursuant to this Section 5.2, or to fill any vacancy created by the resignation,
removal or death of a director elected pursuant to this Section 5.2, shall also be subject to the provisions of this Section 5.2.

 

5.2
Failure to Designate a Board Member. In the absence of any designation from the Persons or groups with the right to designate
a director as specified above, the director previously designated by them and then serving shall be reelected if still eligible
to serve as provided herein. The Stockholders agree to execute any written consents required to perform the obligations of this
Agreement, and the Company agrees at the request of any party entitled to designate directors to call a special meeting of stockholders
for the purpose of electing directors.

 

5.3
Special Approval Rights. The Company shall not without Legacy Director Approval:

 

(a)
Increase or decrease the number of members of the Board;

 

    	10

     

    

 

(b)
Take any action which results in a Change of Control (other than in connection with a Disposition of Shares in accordance Section
3.3 or any Transfer of Shares in accordance with Section 3.1 and 3.2);

 

(c)
Amend, alter or repeal this Agreement or the certificate of incorporation, articles of incorporation, certificate of formation,
articles of organization, certificate of limited partnership, articles of limited partnership, bylaws, limited liability company
agreement, operating agreement, partnership agreement, stockholder agreement, shareholder agreement or any other organizational
document of the Company or any subsidiary thereof;

 

(d)
Liquidate, dissolve or wind-up the business and affairs of the Company, effect any merger, consolidation, recapitalization, reorganization
or similar transaction in which the Company is a constituent party, or effect the sale, lease, transfer, exclusive license or
other Disposition, in a single transaction or series of related transactions, by the Company of all or substantially all the assets
of the Company;

 

(e)
Create, or authorize the creation of, or issue or obligate itself to issue shares of, any additional class or series of capital
stock, or increase the authorized number of shares of any class or series of capital stock;

 

(f)
(i) Reclassify, alter or amend any existing security of the Company that is pari passu with the Common Stock in respect of the
distribution of assets on the liquidation, dissolution or winding up of the Company, the payment of dividends or rights of redemption,
if such reclassification, alteration or amendment would render such other security senior to the Common Stock in respect of any
such right, preference, or privilege, or (ii) reclassify, alter or amend any existing security of the Company that is junior to
the Common Stock in respect of the distribution of assets on the liquidation, dissolution or winding up of the Company, the payment
of dividends or rights of redemption, if such reclassification, alteration or amendment would render such other security senior
to or pari passu with the Common Stock in respect of any such right, preference or privilege;

 

(g)
Purchase or redeem (or permit any subsidiary to purchase or redeem) or pay or declare any dividend or make any distribution on,
any shares of capital stock of the Company other than (i) dividends or other distributions payable on the Common Stock solely
in the form of additional shares of Common Stock and (ii) repurchases of stock from former employees, officers, directors, consultants
or other persons who performed services for the Company or any subsidiary in connection with the cessation of such employment
or service at the lower of the original purchase price or the then-current fair market value thereof;

 

(h)
Incur any (i) obligations for borrowed money or advances, in each case in excess of $1,500,000 in any fiscal year of the Company;
(ii) obligations evidenced by bonds, debentures, notes, loan agreements or similar instruments, in each case in excess of $1,500,000
in any fiscal year of the Company; (iii) indebtedness secured by any lien on property owned or acquired by such person, in each
case in excess of $1,500,000 in any fiscal year of the Company; (iv) non-contingent obligations for the reimbursement of any obligor
in respect of letters of credit, letters of guaranty, bankers’ acceptances and similar credit transactions, in each case
in excess of $1,500,000 in any fiscal year of the Company or (v) contingent obligations in respect of the foregoing, in each case
in excess of $1,500,000 in any fiscal year of the Company;

 

(i)
Enter into or be a party to, or amend, alter or waive, any agreement or transaction with any director, officer, or employee of
the Company or any Affiliate or “associate” (as defined in Rule 12b-2 promulgated under the Exchange Act) of any such
Person; except for agreements or transactions contemplated by this Agreement or the Purchase Agreement (other than for purposes
this exception, agreements and transactions regarding claims for indemnification or escrow between the Company and any Purchaser
Indemnified Party (as defined in the Purchase Agreement));

 

    	 

     

    

 

(j)
Abandon the business of developing and commercializing games utilizing NASCAR intellectual property or enter into a material new
line of business (other than iRacing hosting);

 

(k)
Sell, assign, license, pledge, or encumber material assets, technology or intellectual property of the Company with aggregate
value of $1,500,000 or greater, other than in the ordinary course of business;

 

(l)
(i) Adopt, amend or terminate any incentive plans, agreements or arrangements, or (ii) increase the number of shares of capital
stock reserved pursuant to any stock incentive plans or reserved for future issuance to employees or directors of, or consultants
or advisors to, the Company or any of its subsidiaries pursuant to any other plan, agreement or arrangement;

 

(m)
(i) Make an assignment for the benefit of creditors; (ii) file a voluntary petition in bankruptcy, (iii) become the subject of
an order for relief or be declared insolvent in any federal or state bankruptcy or insolvency proceeding (unless such order is
dismissed within ninety (90) days following entry); (iv) file a petition or answer seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any statute, law, or regulation; (v) file an answer or other pleading
admitting or failing to contest the material allegation of a petition filed against the Company in any proceeding similar in nature
to those described in the preceding clause, or otherwise failing to obtain dismissal of such petition within one hundred twenty
(120) days following its filing; or (vi) seek, consent to, or acquiesce in, the appointment of a trustee, receiver, or liquidator
of all or any substantial part of the Company’s properties;

 

(n)
Until the earlier of the date when (i) Motorsport shall have made the 2019 Payment in accordance with the Purchase Agreement,
(ii) the reduction of the 2019 Payment to zero as a result of the adjustment set forth in Section 1.3.1 of the Purchase Agreement
and (iii) termination of the 2019 Payment pursuant to Section 1.3.2 of the Purchase Agreement, amend or modify, or make any expenditures
or incur any obligations inconsistent with, the operating budget and business plan delivered to Motorsport on August 2, 2018 and
approved and adopted by the Company’s Board on August 14, 2018;

 

(o)
Do any of the foregoing directly or indirectly or with respect to any subsidiary of the Company; and/or

 

(p)
Agree to do any of the foregoing.

 

As
used herein, “Legacy Director Approval” shall mean the prior affirmative vote or prior written consent of at
least one director nominated by the holders of a majority of the shares of the Company’s capital stock held by GN, PF, Leo,
HC2 and CGI.

 

5.4
No “Bad Actor” Designees. Each Person with the right to designate or participate in the designation of a director
as specified above hereby represents and warrants to the Company that, to such Person’s knowledge, none of the “bad
actor” disqualifying events described in Rule 506(d)(1)(i)-(viii) under the Act (each, a “Disqualification Event”),
is applicable to such Person’s initial designee named above except, if applicable, for a Disqualification Event as to which
Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. Any director designee to whom any Disqualification Event is applicable, except
for a Disqualification Event to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable, is hereinafter referred to as a “Disqualified
Designee.” Each Person with the right to designate or participate in the designation of a director as specified above
hereby covenants and agrees (A) not to designate or participate in the designation of any director designee who, to such Person’s
knowledge, is a Disqualified Designee and (B) that in the event such Person becomes aware that any individual previously designated
by any such Person is or has become a Disqualified Designee, such Person shall as promptly as practicable take such actions as
are necessary to remove such Disqualified Designee from the Board and designate a replacement designee who is not a Disqualified
Designee.

 

    	12

     

    

 

6.
Preemptive Right.

 

6.1
For so long as a Stockholder holds Shares, such Stockholder shall have the pre-emptive right to purchase up to a pro rata
percentage of all Equity Securities (as defined below) that the Company may propose to sell and issue after the date hereof, such
percentage to be equal to the ratio of (a) the number of shares of the Company’s Common Stock (including all shares of Common
Stock issuable or issued upon conversion of the Securities or upon the exercise of outstanding warrants or options) of which such
Stockholder is deemed to be a holder immediately prior to the issuance of such Equity Securities to (b) the total number of shares
of the Company’s outstanding Common Stock (including all shares of Common Stock issued or issuable upon conversion of the
Securities or upon the exercise of any outstanding warrants or options) immediately prior to the issuance of the Equity Securities.

 

6.2
If the Company proposes to issue any Equity Securities, it shall give each Stockholder a written notice of its intention, describing
the Equity Securities, the price and the terms and conditions upon which the Company proposes to issue the same. Each Stockholder
will have twenty (20) days after receiving such notice from the Company within which to exercise this preemptive right in writing
by giving written notice to the Company and stating therein the quantity of Equity Securities to be purchased.

 

6.3
Notwithstanding anything herein to the contrary, the pre-emptive rights in this Section 6 shall not be applicable to (i)
the issuance of securities that are exempted from such pre-emptive right by the unanimous written consent of the Board, (ii) issuances
of securities (and issuances of securities issued upon exercise of such securities) pursuant to any equity incentive plan, option
plan, or similar arrangement for directors, officers, employees or consultants of the Company in connection with their service
as directors of the Company, their employment by the Company or their retention as consultants by the Company, in each case as
duly adopted by the Board, (iii) issuances of securities in connection with the Company’s acquisition of or merger with
a third party entity or business with the prior approval of the Board and Legacy Director Approval pursuant to Section 5.4(d)
above, (iv) issuances of securities in connection with any bank or lease financing to the Company duly approved by the Board;
(v) issuances of securities in connection with any stock split or stock dividend by the Company; (vi) securities issued or issuable
pursuant to options granted by the Company to Paul Brooks and Ed Martin to purchase 9,932 and 6,181 Shares of Common Stock, respectively;
(vii) the Company entering into that certain amendment, which has been adopted by the board of the Company, to the warrant issued
by the Company to NASCAR Team Properties to purchase 4,000 Shares of Common Stock, to the extent such amendment is entered in
order to ensure that such warrant does not terminate upon the consummation of the transactions set forth in the Purchase Agreement,
as well as any securities issued or issuable pursuant to such warrant; and (viii) the issuance of any Shares pursuant to the Purchase
Agreement.

 

7.
Financial Statements; Observer Rights.

 

7.1
Financial Statements.

 

(a)
The Company shall deliver to each Stockholder:

 

(i)
as soon as practicable, but in any event within twenty (20) days after the end of each fiscal year of the Company, preliminary
unaudited statements of income and of cash flows for such fiscal year and an unaudited balance sheet and statement of stockholders’
equity as of the end of such fiscal year, all prepared in accordance with generally accepted accounting principles in the United
States (“GAAP”) (except that such financial statements may (A) be subject to normal year-end audit adjustments;
and (B) not contain all notes thereto that may be required in accordance with GAAP) (the “Annual Financial Statement”);

 

    	13

     

    

 

(ii)
as soon as practicable, but in any event within sixty (60) days after the end of each fiscal year of the Company (A) a balance
sheet as of the end of such year, (B) statements of income and of cash flows for such year, and a comparison between (x) the actual
amounts as of and for such fiscal year and (y) the comparable amounts for the prior year and as included in the annual operating
plan and capital budget for such year, with an explanation of any material differences between such amounts and a schedule as
to the sources and applications of funds for such year, and (iii) a statement of stockholders’ equity as of the end of such
year, with all such financial statements to be prepared in accordance with GAAP and audited and certified by an independent registered
public accounting firm of regionally recognized standing selected by the Company (the “Audited Financial Statements”);

 

(iii)
as soon as practicable, but in any event within ten (10) days after the end of each of the first three (3) quarters of each fiscal
year of the Company, preliminary unaudited statements of income and cash flows for such fiscal quarter, and an unaudited balance
sheet and a statement of stockholders’ equity as of the end of such fiscal quarter, all prepared in accordance with GAAP
(except that such financial statements may (A) be subject to normal year-end audit adjustments; and (B) not contain all notes
thereto that may be required in accordance with GAAP) (the “Quarterly Financial Statements”);

 

(iv)
as soon as practicable, but in any event within twenty (20) days after the end of each of the first three (3) quarters of each
fiscal year of the Company, final Quarterly Financial Statements;

 

(v)
as soon as practicable, but in any event within thirty (30) days after the end of each of the non-quarter/year end months of each
fiscal year of the Company, unaudited statements of income and an unaudited balance sheet as of the end of such fiscal month,
all prepared in accordance with GAAP (except that such financial statements may (A) be subject to normal year-end audit adjustments;
and (B) not contain all notes thereto that may be required in accordance with GAAP) (the “Monthly Financial Statements”);

 

(vi)
contemporaneously with the delivery of, and with respect to, the financial statements called for in Sections 7.1(a)(ii) and (iv),
an instrument executed by the chief financial officer and chief executive officer of the Company certifying that such financial
statements were prepared in accordance with GAAP consistently applied with prior practice for earlier periods (except as otherwise
set forth in Section 7.1(a)(iv)) and fairly present in all material respects the financial condition of the Company and its results
of operation for the periods specified therein; and

 

(vii)
such other information relating to the financial condition, business, prospects, or corporate affairs of the Company as any Stockholder
may from time to time reasonably request; provided, however, that the Company shall not be obligated under this
Section 7.1 to provide information (A) that the Company reasonably determines in good faith to be a trade secret or confidential
information (unless covered by an enforceable confidentiality agreement, in a form acceptable to the Company); or (B) the disclosure
of which would adversely affect the attorney-client privilege between the Company and its counsel.

 

(b)
Notwithstanding the foregoing, such financial statements shall be distributed within a time frame that will permit a Stockholder
to, and shall provide such information concerning the operations of the Company as may be required for a Stockholder (or its Affiliates)
to, prepare and timely submit filings with the Securities and Exchange Commission.

 

(c)
If, for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect
of such period the financial statements delivered pursuant to the foregoing sections shall be the consolidated and consolidating
financial statements of the Company and all such consolidated subsidiaries.

 

(d)
Notwithstanding anything else in this Section 7.1 to the contrary, the Company may cease providing the information set
forth in this Section 7.1 during the period starting with the date thirty (30) days before the Company’s good-faith
estimate of the date of filing of a registration statement if it reasonably concludes it must do so to comply with the SEC rules
applicable to such registration statement and related offering; provided, however, that the Company’s covenants under this
Section 7.1 shall be reinstated at such time as the Company is no longer actively employing its commercially reasonable
efforts to cause such registration statement to become effective.

 

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7.2
Observer Rights.

 

(a)
As long as Leo owns at least one (1) Share of Common Stock, the Company shall invite a representative of Leo, who shall initially
be Randall O. Rissman, to attend all meetings of the Board in a nonvoting observer capacity and, in this respect, shall give such
representative copies of all notices, minutes, consents, and other materials that it provides to its directors at the same time
and in the same manner as provided to such directors; provided, however, that such representative shall agree in
writing to hold in confidence and trust and to act in a fiduciary manner with respect to all information so provided; and,
provided, further, that the Company reserves the right to withhold any information and to exclude such representative
from any meeting or portion thereof if access to such information or attendance at such meeting could adversely affect the attorney-client
privilege between the Company and its counsel or result in disclosure of trade secrets or a conflict of interest, or if such Stockholder
or its representative is a competitor of the Company.

 

(b)
As long as HC2 owns at least one (1) Share of Common Stock, the Company shall invite a representative of HC2, who shall initially
be AJ Stahl, to attend all meetings of the Board in a nonvoting observer capacity and, in this respect, shall give such representative
copies of all notices, minutes, consents, and other materials that it provides to its directors at the same time and in the same
manner as provided to such directors; provided, however, that such representative shall agree in writing to hold
in confidence and trust and to act in a fiduciary manner with respect to all information so provided; and, provided,
further, that the Company reserves the right to withhold any information and to exclude such representative from any meeting
or portion thereof if access to such information or attendance at such meeting could adversely affect the attorney-client privilege
between the Company and its counsel or result in disclosure of trade secrets or a conflict of interest, or if such Stockholder
or its representative is a competitor of the Company.

 

(c)
As long as PF owns at least one (1) Share of Common Stock, the Company shall invite a representative of PF, who shall initially
be Brad Keselowski, to attend all meetings of the Board in a nonvoting observer capacity and, in this respect, shall give such
representative copies of all notices, minutes, consents, and other materials that it provides to its directors at the same time
and in the same manner as provided to such directors; provided, however, that such representative shall agree in
writing to hold in confidence and trust and to act in a fiduciary manner with respect to all information so provided; and,
provided, further, that the Company reserves the right to withhold any information and to exclude such representative
from any meeting or portion thereof if access to such information or attendance at such meeting could adversely affect the attorney-client
privilege between the Company and its counsel or result in disclosure of trade secrets or a conflict of interest, or if such Stockholder
or its representative is a competitor of the Company.

 

(d)
As long as GN owns at least one (1) Share of Common Stock, the Company shall invite a representative of GN, who shall initially
be Scott Secord, to attend all meetings of the Board in a nonvoting observer capacity and, in this respect, shall give such representative
copies of all notices, minutes, consents, and other materials that it provides to its directors at the same time and in the same
manner as provided to such directors; provided, however, that such representative shall agree in writing to hold
in confidence and trust and to act in a fiduciary manner with respect to all information so provided; and, provided,
further, that the Company reserves the right to withhold any information and to exclude such representative from any meeting
or portion thereof if access to such information or attendance at such meeting could adversely affect the attorney-client privilege
between the Company and its counsel or result in disclosure of trade secrets or a conflict of interest, or if such Stockholder
or its representative is a competitor of the Company.

 

    	15

     

    

 

7.3
Assistance with Financial Reporting and Presentations. The Company shall, and shall cause its subsidiaries and their respective
officers, managers, employees and representatives to, use commercially reasonable efforts to provide such cooperation in connection
with the preparation of reports and information requests pursuant to HC2’s investment review requirements, applicable law
or regulation, reports or presentations to Stockholders. HC2 shall provide advance notice to the Company and it should respond
within a reasonable amount of time to the requests. The nature of such requests will be other financial and operational data that
cannot be found in the financial statements provided in Section 7.1.

 

8.
Termination of Agreement

 

This
Agreement shall terminate on the earliest of:

 

8.1
Intentionally Omitted;

 

8.2
IPO. Upon an initial public offering of the Company’s equity securities; or

 

8.3
One Stockholder. At such time as only one (1) Stockholder remains, the Shares of all others having been Disposed of or
repurchased.

 

9.
Spousal Consents. By executing this Agreement,
each of the Stockholders represents and warrants that he or she has secured the permission and consent of his or her respective
spouse to enter into this Agreement and fully perform his or her respective obligations hereunder. Each Party whose spouse is
not a Party to this Agreement shall obtain the signature of his or her spouse on the spousal consent in the form attached hereto
as Exhibit A.

 

10.
After-Acquired Shares. Shares acquired
subsequent to the execution of this Agreement by a Stockholder shall be subject to the provisions of this Agreement to the same
extent, and in the same manner, as Shares owned by a Stockholder on the date hereof.

 

11.
Press Releases. Any press release or general
media communication issued by the Company and/or any a Stockholder must be approved in writing by Motorsport prior to issuance
of any such press release or general media communication.

 

12.
Termination of the Prior Agreement and Release.
The Company, GN, PF, Leo and HC2 hereby agree that the Prior Agreement, together with any and all rights, claims, liabilities
and obligations imposed upon the parties thereto, is hereby terminated and void. Each of GN, PF, Leo and HC2, for itself and for
its successors and assigns, hereby releases, remises, acquits, discharges and forever frees the Company, its successors and assigns,
and Company’s other shareholders, officers, directors, representatives, employees and affiliates of and from any and all
manner of actions, causes, causes of actions, claims for attorneys’ fees, suits, debts, liabilities, accounts, bonds, bills,
covenants, contracts, controversies, agreements, promises, damages, judgments, expenses, executions, claims and demands, with
respect to or relating to or arising under or out of the Prior Agreement.

 

13.
General Provisions.

 

13.1
Acknowledgement Concerning Counsel. Each of the Stockholders and the Company acknowledges and understands that this Agreement
was prepared by Snell & Wilmer L.L.P., counsel for Motorsport, and that Snell & Wilmer L.L.P. does not represent any of
the other Stockholders or the Company with respect to this Agreement, but only represents Motorsport. Each other Party acknowledges
that, in executing this Agreement, such Person has had the opportunity to seek the advice of independent legal counsel, and such
Person has read and understood all of the terms and provisions of this Agreement. Snell & Wilmer L.L.P. is hereby expressly
made a third party beneficiary of this Agreement for purposes of this Section 13.1.

 

    	16

     

    

 

13.2
Agreement to Perform Necessary Acts; Specific Performance. Each Party to this Agreement agrees to perform any further acts
and execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Agreement. 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 Parties hereunder and to such other injunction or other
equitable relief as may be granted by a court of competent jurisdiction. Each Party to this Agreement hereby certifies all corporate,
company or other requisite action with respect to such Party necessary for the authorization, execution and delivery of this Agreement
by such Party and the performance of the obligations of such Party under this Agreement has been taken prior to such Party’s
execution and delivery of this Agreement.

 

13.3
Attorneys’ Fees and Costs. If any action at law or in equity is necessary to enforce or interpret the terms of this
Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees, costs, and necessary disbursements in addition
to any other relief to which he, she, or it may be entitled.

 

13.4
Entire Agreement; Amendments. This Agreement (including the Exhibit attached hereto, which is hereby incorporated by reference
and made apart hereof) constitutes the entire and final agreement among the Parties with respect to the subject matter hereof,
and supersedes and replaces all prior agreements, understandings, commitments, communications and representations made among the
Parties, whether written or oral, with respect to the subject matter hereof; provided, however, that with respect
to the restrictive covenants contained in Section 4, this Agreement does not supersede or replace any prior agreements
between the Company and any Stockholder other than the Prior Agreement. The provisions of this Agreement may be waived, altered,
amended, or repealed, in whole or in part, only on the written consent of all Parties to this Agreement.

 

13.5
Successors, Assigns, and Transferees. This Agreement shall be binding on, and shall inure to the benefit of, the Parties
to it and their respective heirs, legal representative, successors, and assigns. Each transferee or any subsequent transferee
of Shares of the Company, or any interest in such Shares, shall, unless this Agreement expressly provides otherwise, hold such
Shares or interest in the Shares subject to all of the provisions of this Agreement and shall make no further Dispositions except
as provided in this Agreement. The rights and obligations of the Stockholders hereunder are not assignable without the prior consent
of the Board and Legacy Director Approval (which shall not be unreasonably withheld, delayed or conditioned). Except in connection
with an assignment by the Company by operation of law to the acquirer of the Company in accordance with this Agreement, the rights
and obligations of the Company hereunder may not be assigned under any circumstances.

 

13.6
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded
and shall be enforceable in accordance with its terms.

 

13.7
Notices. Notices permitted or required under this Agreement shall be in writing and shall be given to the address on the
signature page below by personal delivery (in which case notice shall be deemed given upon such personal delivery), by certified
or registered mail (in which case notice shall be deemed given on the third business day after deposit with adequate postage),
with next-business-day instruction by a recognized courier service (in which case notice shall be deemed given on the next business
day), by electronic mail to the email address indicated for such Party on the signature page hereof (in which case notice shall
be deemed given on the same date as the transmission of such email, unless such transmission occurs after regular business hours,
in which case notice shall be deemed given on the next business day).

 

    	17

     

    

 

13.8
Governing Law. This Agreement shall be governed by and construed under the laws of the State of Delaware, irrespective
of its choice of law principles. Each party hereby irrevocably submits to the exclusive jurisdiction of the federal court sitting
in Miami-Dade County, Florida, and if such court will not or cannot hear the case for any reason, the exclusive jurisdiction of
any court of the State of Florida sitting in Miami-Dade County, Florida in respect of any action, suit or proceeding arising in
connection with this Agreement and the transactions contemplated hereby and thereby, and agrees that any such action, suit or
proceeding shall be brought only in such court (and waives any objection based on forum non conveniens or any other objection
to venue therein). Any and all process may be served in any action, suit or proceeding arising in connection with this Agreement
by complying with the provisions of Section 13.7. Such service of process shall have the same effect as if the party being
served were a resident in the State of Florida and had been lawfully served with such process in such jurisdiction. The parties
hereby waive all claims of error by reason of such service. Nothing herein shall affect the right of any party to serve process
in any other manner permitted by law. THE PARTIES HEREBY WAIVE THEIR RIGHT TO A TRIAL BY JURY WITH RESPECT TO DISPUTES ARISING
UNDER THIS AGREEMENT AND THE TRANSACTION DOCUMENTS AND CONSENT TO A BENCH TRIAL WITH THE APPROPRIATE JUDGE ACTING AS THE FINDER
OF FACT.

 

13.9
Captions and Pronouns. The captions of sections in this Agreement are for the convenience of the reader only and are not
intended to be part of this Agreement. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine,
neuter, singular, or plural as the identification of the person, firm, corporation, or other entity referred to may require.

 

13.10
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. The exchange of copies of this Agreement and of signature
pages by facsimile transmission or .PDF delivered via email will constitute effective execution and delivery of this Agreement
as to the Parties and may be used in lieu of the original Agreement for all purposes.

 

(The
remainder of this page has been intentionally left blank.)

 

    	18

     

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement effective as of the date set forth above.

 

	 	704GAMES COMPANY
	 	 	 
	 	By:	/s/ Paul Brooks 
	 	Name:	Paul Brooks
	 	Title:	Chief Executive Officer
	 		
	 	Address: 	550 South Caldwell Street, 17th Floor
	 		Charlotte, NC 28202
	 	Attn:	Chief Executive Officer
	 	Email:	paul@704games.com 

 

704Games Company – Stockholders’
Agreement

 

    	 

     

    

 

	 	PLAYFAST
    GAMES, LLC
	 	 	 
	 	By:	/s/
    Paul Brooks 
	 	Name:
     	Paul
    Brooks 
	 	Title:
     	Managing
    Member 
	 	 	 
	 	Address:
    	2500
    Red Fox Trl 
	 	 	Charlotte,
    NC 28211
	 		
	 	Attn:	
    Paul Brooks 
	 	Email:	paul@peaklandplace.com
    

 

704Games
Company – Stockholders’ Agreement

 

    	 

     

    

 

	 	GAMING
    NATION INC.
	 	 	 
	 	By:	/s/
    Scott Secord 
	 	Name:
     	Scott
    Secord 
	 	Title:
     	President/CEO
    
	 	 	 
	 	Address:
    	207
    Queens Quay, Suite 500 
	 	 	Toronto,
    ON
	 	 	 
	 	Attn:
	     
	 	Email:	ssecord@gamingnationinc.co
    

 

704Games Company – Stockholders’
Agreement

 

    	 

     

    

 

	 	HC2
    HOLDINGS 2, INC.
	 	 	 
	 	By:	/s/
    Michael J. Sena
	 	Name:
     	Michael
    J. Sena 
	 	Title:
     	Chief
    Financial Officer 
	 	 	 
	 	Address:
    	450
    Park Avenue, 30th Floor 
	 	 	 New
    York, NY 10022 
	 	 	 
	 	Attn:	
    Michael J. Sena 
	 	Email:	msena@hc2.com
    

 

704Games Company – Stockholders’
Agreement

 

    	 

     

    

 

	 	LEO
    CAPITAL HOLDINGS, LLC
	 	 	 
	 	By:	/s/
    Randy Rissman
	 	Name:
     	Randy
    Rissman 
	 	Title:
     	Manager
    
	 	 	
	 	Address:
	
	 	 	
	 	 	
			
	 	Attn:	 
	 	Email:
	 

 

704Games Company – Stockholders’
Agreement

 

    	 

     

    

 

 

	 	Continental
    General Insurance Company
	 	 	 
	 	By:	/s/
    James P. Corcoran 
	 	Name:
     	James
    P. Corcoran  
	 	Title:
     	Executive
    Chairman 
	 	 	 
	 	Address:
    	450
    Park Avenue, 30th Floor 
	 	 	New
    York, NY 10022 
			
	 	 	Attn:
    James P. Corcoran 
	 	 	 
			
	 	Email:	jpcorcoran@jpcorcoran.com
    

 

704Games Company – Stockholders’
Agreement

 

    	 

     

    

 

	 	MOTORSPORT
    GAMING US LLC
	 	 	 
	 	By:	/s/
    Mike Zoi 
	 	Name:	Mike
    Zoi
	 	Title:	Manager
	 	 	 
	 	Address:	5972
    NE 4th Avenue
	 	 	Miami,
    FL 33137
	 	 	Attn:
    Legal and Yura Barabash 
	 	Email:	amanda@motorsport.com
    and 
	 	 	 yb@motorsport.com
    

 

704Games Company – Stockholders’
Agreement

 

    	 

     

    

 

EXHIBIT
A

 

SPOUSAL
CONSENT

 

I
acknowledge that I have read the foregoing Stockholders’ Agreement (the “Agreement”), and that I know and understand
its contents. I am aware by its provisions, my spouse agrees to sell the shares of the capital stock (“Shares”) of
704GAMES COMPANY, a Delaware corporation, including my interest in them, upon certain events. I hereby approve of the provisions
of the Agreement and consent to such sale; and I agree that I will not make any transfer of, or otherwise deal with, the Shares
of my interest therein during my lifetime except as expressly permitted by the Agreement. Upon my death, I agree that I will not
make any transfer of, or otherwise deal with, my interest in the Shares, whether by bequest or by application of residuary clause
of my will or otherwise, in any manner which would have the effect of causing the Shares to cease being subject to the Agreement.

 

I
further acknowledge that (a) I have had a fully opportunity to review the Agreement, (b) have been urged to seek independent legal
advice regarding the terms of the Agreement and this Spousal Consent, and (c) that the Company’s attorneys or agents have
not acted as legal counsel or tax advisor either for me or my spouse.

 

I
hereby appoint my spouse, _________________, as my authorized representative to hereafter amend or otherwise modify the terms
and conditions of the Agreement and to vote my interest in the Shares as defined therein, for any purposes which are contemplated
within the terms and conditions of the Agreement, even to the extent they relate to my community property interest.

 

Executed
on __________________, 2018.

 

	 	 
	 	Name:
	 
	 	Spouse
    of

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