Document:

SECURITIES PURCHASE AGREEMENT

 

SECURITIES PURCHASE
AGREEMENT (the " Agreement "), dated as of March , 2014, by and among PROPELL TECHNOLOGIES GROUP, INC.,
a Delaware corporation, with headquarters located at 1701 Commerce Street, Houston, Texas 77002 (the "Company"),
and the person listed on the signature page hereof ( “Buyer”).

 

WHEREAS:

 

A.           The
Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by Section 4(a)(2) under the Securities Act of 1933, as amended (the “ 1933 Act ”).

 

B.          The
Company has designated 500,000 shares of its Preferred Stock as Series B Convertible Preferred Stock, with such terms and preferences
as set forth in the Certificate of Designation, Rights and Preferences of the Series B Convertible Preferred Stock, in the form
attached hereto as Exhibit A (the “Certificate of Designation”) and may sell in an offering all 500,000
shares of Series B Convertible Preferred Stock.

 

C. The Buyer
wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement the number of Series
B convertible preferred stock (the “Preferred Shares” of the “Securities”) pursuant to the
Certificate of Designation, which Preferred Shares are convertible into shares of the Company’s Common Stock (the “Common
Stock” and, as converted, are herein referred to as the “Conversion Shares”).

 

D. On February
6, 2014, the Buyer deposited $100,000 with the Company based upon an agreement with the Company that the Company would issue Shares
to the Buyer at a price of $10 per Share, and the Company agreed to issue such Shares based upon the Buyer’s agreement to
invest an aggregate of $750,000 in the Company on or prior to March 31, 2014.

 

E. The parties now
desire to memorialize their agreement.

 

NOW, THEREFORE,
the Company and each Buyer hereby agree as follows:

 

1.  PURCHASE
AND SALE OF PREFERRED SHARES.

 

(a)  Purchase
of the Shares.

 

(i)   The
Shares.   The Buyer hereby agrees to purchase from the Company and the Company agrees to sell, an aggregate of
$750,000 of the Preferred Shares, as shown on the signature page of this Agreement, at the purchase price of Ten Dollars ($10.00)
per Share (the “Purchase Price”) on March 31, 2014 (the “Closing”)

 

(b)  Form
of Payment. Prior to the date hereof, the Buyer deposited Five Hundred Fifty Thousand Dollars ($550,000) with the Company based
upon an agreement with the Company that the Company would issue Preferred Shares to Buyer at a price of $10 per Preferred Share
upon receipt from Buyer of an additional Two Hundred Thousand Dollars $200,000), which Buyer agreed to pay by March 31, 2014. The
Company’s agreement to issue the Preferred Shares was based upon the Buyer’s agreement to acquire an aggregate of $750,000
of Preferred Shares in the Company by March 31, 2014. The Company hereby acknowledges receipt of Five Hundred Fifty Thousand Dollars
($550,000) in consideration of the Preferred Shares to be issued at the Closing and upon receipt of such additional Two Hundred
Thousand Dollars ($200,000) shall deliver to Buyer the Preferred Shares, duly executed on behalf of the Company and registered
in the name of such Buyer or its designee. The Buyer shall pay the balance of the Purchase Price to the Company for the Preferred
Shares to be issued and sold to Buyer at Closing, by wire transfer of immediately available funds in accordance with the Company's
written wire instructions and upon receipt thereof the Company shall deliver to Buyer the Preferred Shares, duly executed on behalf
of the Company and registered in the name of such Buyer or its designee.

 

    	 

    	 

    

  

2. BUYER'S
REPRESENTATIONS AND WARRANTIES. Buyer represents and warrants that:

 

(a)   Organization;
Authority. If an entity, Buyer is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by this
Agreement. If an individual, Buyer has the requisite power and authority to enter into and to consummate the transactions contemplated
by the Agreement. The execution, delivery and performance by Buyer of the transactions contemplated by this Agreement has been
duly authorized by all necessary action on the part of such Buyer. This Agreement has been duly executed by Buyer, and when delivered
by Buyer in accordance with the terms hereof, will constitute the valid and legally binding obligation of Buyer, enforceable against
it in accordance with its terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable
creditors' rights and remedies.

 

(b)No Conflicts.
The execution, delivery and performance by Buyer of this Agreement and the consummation by Buyer of the transactions contemplated
hereby will not (i) result in a violation of the organizational documents of Buyer or (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which Buyer is a party, or (iii) result in
a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to
Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not,
individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of Buyer to perform its
obligations hereunder.

 

(c) Accredited
Investor. At the time the Buyer was offered the Securities, it was, and as of the date hereof it is, and it will be: an “accredited
investor” as defined in Rule 501 under the 1933 Act.

 

(d)  No
Public Sale or Distribution. Buyer (i) is acquiring the Securities and (ii) upon conversion of the Preferred Shares, will
acquire the Conversion Shares issuable upon conversion and exercise thereof, in each case, for its own account and not with a view
towards, or for resale in connection with, the public sale or distribution thereof in violation of applicable securities laws,
except pursuant to sales registered or exempted under the 1933 Act; provided, however, by making the representations herein, such
Buyer does not agree, or make any representation or warranty, to hold any of the Securities for any minimum or other specific term
and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an
exemption under the 1933 Act. Such Buyer does not presently have any agreement or understanding, directly or indirectly, with any
Person to distribute any of the Securities in violation of applicable securities laws.  The Buyer has no intention to
distribute either directly or indirectly any of the Securities in the.

 

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(e)  Reliance
on Exemptions. Such Buyer understands that the Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon
the truth and accuracy of, and such Buyer’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of such Buyer set forth herein in order to determine the availability of such exemptions and the eligibility
of such Buyer to acquire the Securities.

 

(f) Information.
Such Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of
the Company and materials relating to the offer and sale of the Securities which have been requested by such Buyer.  Such
Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Such Buyer understands that
its investment in the Securities involves a high degree of risk. Such Buyer has sought such accounting, legal and tax advice as
it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

 

(g)  No
Governmental Review.  Such Buyer understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability
of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(h) Transfer
or Resale. Such Buyer understands that: (i) the Securities have not been and are not being registered under the 1933 Act or
any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder,
(B) such Buyer shall have delivered to the Company (if requested by the Company) an opinion of counsel to such Buyer, in a form
reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned
or transferred pursuant to an exemption from such registration (it being acknowledged that an opinion issued by Gracin & Marlow,
LLP shall be acceptable to the Company), or (C) such Buyer provides the Company with reasonable assurance that such Securities
can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act (or a successor rule thereto)
(collectively, “ Rule 144 ”); (ii) any sale of the Securities made in reliance on Rule 144 may be made only
in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities under circumstances
in which the seller (or the Person (as defined below) through whom the sale is made) may be deemed to be an underwriter (as that
term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations
of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Securities
under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

(i) Certain
Trading Activities. Such Buyer has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding
with such Buyer, engaged in any transactions in the securities of the Company (including, without limitation, any Short Sales (as
defined below) involving the Company’s securities) during the period commencing as of the time that such Buyer was first
contacted by the Placement Agent (as defined below) regarding the specific investment in the Company contemplated by this Agreement
and ending immediately prior to the execution of this Agreement by such Buyer (it being understood and agreed that for all purposes
of this Agreement, and, without implication that the contrary would otherwise be true, that neither transactions nor purchases
nor sales shall include the location and/or reservation of borrowable shares of Common Stock). “Short Sales”
means all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Securities Exchange Act of
1934, as amended (the “1934 Act”).

 

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(j)  Experience
of Such Buyer. Such Buyer, either alone or together with its representatives, has such knowledge, sophistication and experience
in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities,
and has so evaluated the merits and risks of such investment.  Such Buyer is able to bear the economic risk of an investment
in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(k) General
Solicitation.  Such Buyer is not purchasing the Securities as a result of any advertisement, article, notice or other
communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio
or presented at any seminar or any other general solicitation or general advertisement.

 

3.  REPRESENTATIONS
AND WARRANTIES OF THE COMPANY. The Company represents and warrants to each Buyer that, as of the date hereof and the date of each
Closing (which representations and warranties shall be deemed to apply, where appropriate, to each Subsidiary (as defined below)
of the Company):

 

(a)               
Reporting Company Status. The Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware, and has the requisite corporate power to own its properties and to carry on its business
as now being conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction
where the nature of the business conducted or property owned by it makes such qualification necessary other than those jurisdictions
in which the failure to so qualify would not have a material and adverse effect on the business, operations, properties, prospects
or condition (financial or otherwise) of the Company. The Company has registered its Common Stock pursuant to Section 12 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Common Stock is listed and traded on the
OTC-QB.

 

(b)              
Authorized Shares. The Company has authorized and reserved for issuance, free from preemptive rights, shares
of Common Stock equal to the number of Conversion Shares. The Preferred Shares and the Conversion Shares have been duly authorized
and, when issued, respectively, will be duly and validly issued, fully paid and non-assessable and will not subject the holder
thereof to personal liability by reason of being such holder. The Preferred Shares have the rights, privileges and preferences
set forth on the Certificate of Designations.

(c)               
Securities Purchase Agreement. This Agreement and the transactions contemplated hereby have been duly and
validly authorized by the Company, this Agreement is a valid and binding agreement of the Company enforceable in accordance with
their respective terms, subject as to enforceability to general principles of equity and to bankruptcy, insolvency, moratorium,
and other similar laws affecting the enforcement of creditors’ rights generally.

 

(d)              
Non-contravention. The execution and delivery of this Agreement by the Company, the issuance of the Securities,
and the consummation by the Company of the other transactions contemplated by this Agreement do not and will not conflict with
or result in a breach by the Company of any of the terms or provisions of, or constitute a default under (i) the certificate of
incorporation or by-laws of the Company, (ii) any indenture, mortgage, deed of trust, or other material agreement or instrument
to which the Company is a party or by which it or any of its properties or assets are bound, (iii) to its knowledge, any existing
applicable law, rule, or regulation or any applicable decree, judgment, or (iv) to its knowledge, order of any court, United States
federal or state regulatory body, administrative agency, or other governmental body having jurisdiction over the Company or any
of its properties or assets, except such conflict, breach or default which would not have a material adverse effect on the transactions
contemplated herein. The Company is not in violation of any material laws, governmental orders, rules, regulations or ordinances
to which its property, real, personal, mixed, tangible or intangible, or its businesses related to such properties, are subject.

 

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(e)               
Approvals. No authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory
organization, or stock exchange or market is required to be obtained by the Company for the issuance and sale of the Shares to
the Buyer as contemplated by this Agreement, except such authorizations, approvals and consents that have been obtained.

 

(f)               
SEC Documents, Financial Statements. The Company has filed on a timely basis all reports, schedules, forms,
statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Exchange Act,
including material filed pursuant to Section 13(a) or 15(d). The Company has not provided to the Buyer any information which, according
to applicable law, rule or regulation, should have been disclosed publicly by the Company but which has not been so disclosed,
other than with respect to the transactions contemplated by this Agreement. As of their respective dates, the SEC Documents complied
in all material respects with the requirements of the Act or the Exchange Act as the case may be and the rules and regulations
of the SEC promulgated thereunder and other federal, state and local laws, rules and regulations applicable to such SEC Documents,
and none of the SEC Documents contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made,
not misleading. The financial statements of the Company included in the SEC Documents comply as to form in all material respects
with applicable accounting requirements and the published rules and regulations of the SEC or other applicable rules and regulations
with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles
applied on a consistent basis during the periods involved (except (i) as may be otherwise indicated in such financial statements
or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may not include footnotes or may be
condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates
thereof and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments).

 

4. CERTAIN COVENANTS
AND ACKNOWLEDGMENTS.

 

(a)Transfer
Restrictions. The Buyer acknowledges that (1) the Securities have not been registered under the provisions of the 1933 Act
and may not be transferred unless (A) subsequently registered thereunder, as provided for herein, or (B) the Buyer shall have delivered
to the Company an opinion of counsel, reasonably satisfactory in form, scope and substance to the Company, to the effect that the
Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration; and (2) any sale
any Security made in reliance on Rule 144 promulgated under the 1933 Act may be made only in accordance with the terms of said
Rule and further, if said Rule is not applicable, any resale of that Security under circumstances in which the seller, or the person
through whom the sale is made, may be deemed to be an underwriter, as that term is used in the 1933 Act, may require compliance
with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder.

 

(b) Restrictive
Legend. The Buyer acknowledges and agrees that the Shares until such time as they are registered under the Securities Act as
hereinafter contemplated, the Shares shall bear a restrictive legend in substantially the following form (and a stop-transfer order
may be placed against transfer thereof):

 

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THESE SHARESHAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY
STATE AND MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OR AN OPINION OF COUNSEL OR
OTHER EVIDENCE ACCEPTABLE TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

 

(c) Filings.
The Company undertakes and agrees to make all necessary filings in connection with the sale of the Shares to the Buyer under any
United States laws and regulations, or by any domestic securities exchange or trading market, and to provide a copy thereof to
the Buyer promptly after such filing.

 

(d) Reporting
Status. So long as the Buyer beneficially owns the Shares, the Company shall file all reports required to be filed with the
SEC pursuant to Section 13 or 15(d) of the 1934 Act, and the Company shall not terminate its status as an issuer required to file
reports under the Exchange Act or the rules and regulations thereunder would permit such termination.

 

(e) Use of
Proceeds. The Company will use the proceeds from the sale of the Shares for working capital purposes only.

 

(f) Available
Shares. The Company shall have at all times authorized and reserved for issuance, free from preemptive rights, shares of Common
Stock equal to the number of Conversion Shares.

 

5.
GOVERNING LAW, JURY TRIAL.

 

All questions concerning
the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State
of Texas, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Texas or any
other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Texas. Each party
hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the County of Harris, for the
adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that
the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address
for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted
by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

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6.
MISCELLANEOUS.

 

(a)This Agreement may be executed
simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such
counterparts taken together will constitute one and the same Agreement.  This Agreement, to the extent delivered by means
of a facsimile machine or electronic mail (any such delivery, an “Electronic Delivery”), shall be treated in
all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as
if it were the original signed version thereof delivered in person.  At the request of any party hereto, each other party
hereto shall re-execute original forms hereof and deliver them in person to all other parties.  No party hereto shall
raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted
or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever
waives any such defense, except to the extent such defense related to lack of authenticity.

 

(b) The headings
of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement or the validity or enforceability of this Agreement
in any other jurisdiction. This Agreement may be amended only by an instrument in writing signed by the party to be charged with
enforcement. This Agreement supersedes all prior agreements and understandings among the parties hereto with respect to the subject
matter hereof.

 

(c)                
This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns.

 

7. NOTICES.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party
to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

Propell Technologies Group, Inc.

1701 Commerce Street

Houston, Texas 77002

 

with a copy (for informational purposes only) to:

 

Gracin & Marlow, LLP

405 Lexington Avenue, 26th Floor

New York, New York 10174

Telephone: (212) 907-6457

Facsimile: (212) 208-4657

Attention: Leslie Marlow, Esq.

 

If to each Buyer:

 

At the address listed on the signature page hereto

 

to its address and facsimile number set
forth below, or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party
has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically
generated by the sender's facsimile machine containing the time, date, recipient facsimile number and an image of the first page
of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt
by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively. 

 

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IN WITNESS WHEREOF,
this Agreement has been duly executed by the Buyer or one of its officers thereunto duly authorized as of March 31, 2014.

 

For 75,000 shares of
Series B Convertible Preferred Stock, the Buyer has tendered herewith the full purchase price of $750,000 ($10.00 a Share), of
which $550,000 was received prior to the date hereof and $200,000 was received on the date hereof.

 

	Charles Eric Hoogland	 	Address:	 
	Name of Buyer	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/Charles
Eric Hoogland	 	Fax No.	 
	(Signature of Authorized Person)	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Charles Eric Hoogland	 		Illinois
	Printed Name and Titleor organization	 		Jurisdiction
of Incorporation
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	Taxpayer identification number or social security number, as applicable	 	 	 

 

  

 

This Agreement
has been accepted as of the date set forth below.

 

	 	COMPANY:
	 	 
	 	
        PROPELL TECHNOLOGIES GROUP, INC.

         

	 	 
	 	By:	/s/ John Huemoeller
	 	 	Name: John Huemoeller
	 	 	
        Title: CEO

          

[Signature Page to Securities

Purchase Agreement]

 

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EXHIBITS

	 	 

 

	Exhibit A	Certificate of Designation, Rights and Preferences of the Series B Convertible Preferred Stock
	 	 
	 	 
	 	 

 

    	9EXECUTION
VERSION

 

ASSET
PURCHASE AGREEMENT

 

by and between

 

CARDRUNNERS GAMING, INC.

 

and

 

MGT CAPITAL INVESTMENTS, INC.

 

March 31, 2014

 

    	 

    	 

    

 

Table of
Contents

 

	 	 	Page
	 	 	 
	1.	DEFINITIONS; INTERPRETATION	1
	 	 	 
	 	1.1	Definitions	1
	 	1.2	Interpretation	5
	 	 	 
	2.	PRE-CLOSING AGREEMENTS	5
	 	 	 
	 	2.1	Conduct of the Business	5
	 	2.2	Offers of Employment	6
	 	2.3	Additional Listing Application	6
	 	 	 
	3.	PURCHASE AND SALE OF ASSETS	6
	 	 	 
	 	3.1	Purchase and Sale of Purchased Assets	6
	 	3.2	Liabilities Assumed and Not Assumed	7
	 	3.3	Cash Payment; Issuance of Common Stock	7
	 	3.4	Purchase Price; Allocation of the Purchase Price	7
	 	 	 
	4.	CLOSING	8
	 	 	 
	 	4.1	Closing	8
	 	4.2	Conditions to Closing	8
	 	4.3	Closing Deliverables and Actions	9
	 	4.4	Effect of Closing	10
	 	4.5	Termination	10
	 	4.6	Effect of Termination	11
	 	 	 
	5.	REPRESENTATIONS AND WARRANTIES OF THE PURCHASER	11
	 	 	 
	 	5.1	Incorporation; Authority	11
	 	5.2	Execution; Validity of Agreement; Due Authorization	11
	 	5.3	Consents and Approvals; No Violations	11
	 	5.4	MGT Shares and Escrow Shares	12
	 	5.5	Broker’s Fee	12
	 	 	 
	6.	REPRESENTATIONS AND WARRANTIES REGARDING SELLER AND THE PURCHASED ASSETS	12
	 	 	 
	 	6.1	Incorporation; Authority	12
	 	6.2	Execution; Validity of Agreement; Due Authorization	12
	 	6.3	Consents and Approvals; No Violations	13
	 	6.4	Investment Representations	13
	 	6.5	Purchased Assets	13

 

    	 

    	 

    

 

	 	6.6	Litigation	14
	 	6.7	Employees	14
	 	6.8	Contracts	15
	 	6.9	Bankruptcy	15
	 	6.10	Compliance with Laws; Permits	15
	 	6.11	Intentionally Omitted	16
	 	6.12	Financial Statements	16
	 	6.13	Books and Records	16
	 	6.14	Consents and Approvals	16
	 	6.15	Broker’s Fee	16
	 	 	 
	7.	ADDITIONAL AGREEMENTS	17
	 	 	 
	 	7.1	Seller Noncompete and Non-Solicit	17
	 	7.2	Public Announcements	17
	 	7.3	Confidentiality	17
	 	7.4	Further Assurances	17
	 	7.5	Legend Removal	18
	 	7.6	Transition Services	18
	 	 	 
	8.	SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS; INDEMNIFICATION	18
	 	 	 
	 	8.1	Survival of Representations, Warranties and Covenants	18
	 	8.2	Indemnification Obligations of Seller	19
	 	8.3	Indemnification Obligations of MGT	19
	 	8.4	Notification of Claims	19
	 	8.5	Objections to Claims for Indemnification	19
	 	8.6	Resolution of Conflicts.	20
	 	8.7	Investigation	20
	 	8.8	Third-Party Claims	20
	 	8.9	Limitations On Indemnification	21
	 	8.10	Release of Escrow Funds	21
	 	 	 
	9.	MISCELLANEOUS	21
	 	 	 
	 	9.1	Costs and Attorneys’ Fees	21
	 	9.2	Notices	22
	 	9.3	Entire Agreement	23
	 	9.4	Governing law; Consent to Jurisdiction	23
	 	9.5	Binding effect	23
	 	9.6	Waivers and Amendments	23
	 	9.7	Recitals, Exhibits and Schedules	24
	 	9.8	Headings	24
	 	9.9	Severability	24
	 	9.10	Specific Performance	24
	 	9.11	Fees and Expenses	24

 

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	 	9.12	Legal Representation of the Parties	24
	 	9.13	Payment of Transfer Costs and Expenses	24
	 	9.14	No Third Party Beneficiaries	24
	 	9.15	Counterparts; Signatures	25

 

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ASSET PURCHASE AGREEMENT

 

THIS ASSET PURCHASE
AGREEMENT (this “Agreement”) is dated as of March 31, 2014 (the “Agreement Date”), by
and between CardRunners Gaming, Inc., a Delaware corporation (“Seller”), and MGT Capital Investments, Inc.,
a Delaware corporation (“MGT or “Purchaser”, and together with Seller, the “Parties”).
Andrew Wiggins (“Wiggins”) and Taylor Caby (“Caby”) are executing this Agreement in an individual
capacity solely for purposes of Section 7.1 and Article 9.

 

RECITALS

 

WHEREAS, Seller is
the owner of a daily fantasy sports website called draftday.com (the “Website”) that offers daily fantasy sports
tournaments (the “Business”); and

 

WHEREAS, Seller desires
to sell to the Purchaser, and the Purchaser desires to purchase from Seller, the Purchased Assets (as defined below), in exchange
for (i) cash and (ii) shares of Common Stock, $0.001 par value, of Purchaser (the “Common Stock”), on the terms
and conditions set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the promises, covenants and other agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

 

1.     DEFINITIONS;
INTERPRETATION.

 

1.1    
 Definitions. For purposes of this Agreement, the following terms are defined as follows:

 

“Action”
means any action (including declaratory judgment actions), suit, litigation, controversy, mediation, hearing, claim, charge, complaint,
arbitration, reexamination, interference, reissue, investigation, pending inquiry, audit or other proceeding at law or in equity
or of, in, by or before any Governmental Authority, mediator or arbitrator.

 

“Affiliate”
means, with respect to any Person, a Person that directly or indirectly through one or more intermediaries, controls, is controlled
by, or is under common control with such Person; and “control” (including the terms “controlled by”
and “under common control with”) shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract
or otherwise.

 

“Applicable
Law” means, with respect to any Person, any federal, state, local, municipal, foreign or other Law, enacted, adopted,
passed, approved, promulgated, made, implemented or otherwise put into effect, in each case as of the date of this Agreement, by
any Governmental Authority that applies to such Person, its business and its properties.

 

    	 

    	 

    

 

“Consents”
means the consents of any third parties or any Governmental Authorities necessary to transfer the Purchased Assets to the Purchaser
or to otherwise consummate the transactions contemplated by this Agreement.

 

“Employee
Plan” means each employee benefit plan that has been maintained by Seller which constitutes an “employee pension
benefit plan” under Section 3(2) of ERISA that is intended to qualify under Section 401 or 501 of the Internal Revenue Code.

 

“Escrow Agent”
means VStock Transfer, LLC.

 

“Escrow Agreement”
means the Escrow Agreement dated the Closing Date among Purchaser, Seller and the Escrow Agent.

 

“Escrow Release
Date” means 6 months from the Closing Date.

 

“Governmental
Authority” means any court, tribunal, arbitrator, authority, agency, commission, official or other instrumentality of
the United States, any foreign country or any domestic or foreign state, county, city or other political subdivision or similar
governing entity.

 

“Intellectual
Property” means any and all ideas, inventions, designs, expressions and works of authorship, copyrights, copyrightable
works (including, without limitation, all software, middleware and firmware), semiconductor topography, source code of any software
or program, trademarks, trade names, moral rights, database rights, mask works, applications therefor, registrations thereof and
licenses thereof, royalty rights, any and all goodwill associated with the Purchased Assets, proprietary and/or confidential information
(including technical information relating to development, design, manufacture, scheduling, installation, assembly or testing, Trade
Secrets, secret processes and procedures, know how, business and financial information, and all confidential information of any
nature, and any other similar property, whether or not embodied in tangible form (including technical drawings and specifications,
shop drawings, manuals, forms, working notes and memos, market studies, consultants’ reports, technical and laboratory data,
notebooks, samples and prototypes)).

 

“Knowledge”
or words of similar import (e.g. “knowledge,” “known,” or “aware”) with respect to: (i) any
individual, shall mean the actual knowledge of such individual; and (ii) Seller, shall mean the actual knowledge of Taylor Caby,
Andrew Wiggins, and Owen Hoyt after reasonable inquiry.

 

“Laws”
means all laws, statutes, rules, regulations, ordinances and orders of any Governmental Authority.

 

“Lease”
means Seller’s verbal agreement with the landlord to lease the office space located at Suite 614, 1165 North Clark Street,
Chicago Illinois 60610 on a month-to-month basis commencing April 1, 2014.

 

“Lien”
means any mortgage, lien, claim, pledge, charge, security interest, preemptive right, right of first refusal, option, judgment,
restriction or encumbrance of any kind, or any exceptions, reservations, restrictions, rights-of-way, easements or other matters
affecting title, whether arising by contract, law or otherwise.

 

    	2

    	 

    

 

“Material
Adverse Effect” means any change, event, violation, inaccuracy, circumstance or effect that, individually or taken together
with all other effects, is, or is reasonably likely to, be or become materially adverse in relation to the value, validity, effectiveness
or enjoyment of the Purchased Assets; provided, however, that none of the following shall be deemed in itself, or
in any combination, to constitute, and none of the following shall be taken into account in determining whether there has been
or will be, a Material Adverse Effect: (a) any adverse change, effect, event, occurrence, state of facts or development attributable
to the announcement or pendency of the transactions contemplated by this Agreement; (b) any adverse change, effect, event, occurrence,
state of facts, act of God, natural disaster or development attributable to conditions affecting the industry in which Seller participates,
the United States economy as a whole or the capital markets in general or the markets in which Seller operates, which such adverse
change, effect, event, occurrence, state of facts or development does not and would not reasonably be expected to have a materially
disproportionate effect on Seller; (c) any adverse change, event, development, or effect arising from or relating to changes in
law, rules, regulations, orders, or other binding directives issued by any Governmental Authority, which such adverse change, event,
development or effect does not and would not reasonably be expected to have a materially disproportionate effect on Seller; (d)
any adverse change, effect, event, occurrence, state of facts or development resulting from or relating to compliance with the
terms of, or the taking of any action required by, this Agreement; or (e) any adverse change, effect, event, occurrence, state
of facts or development arising from or relating to the commencement, continuation or escalation of a war, material armed hostilities
or other material international or national calamity or act of terrorism directly or indirectly involving the United States of
America.

 

“Permit”
means any permit, application, notice, waiver, qualification, license, import licenses, export license, franchise, consent, certificate,
certificate of occupancy, order, exemption, registration, filing, authorization, approval or registration.

 

“Person”
means and includes any individual, partnership, corporation, limited liability company, association, joint stock company, trust,
joint venture, unincorporated organization or any Governmental Authority or any department, agency or political subdivision thereof.

 

“Player Deposits”
means the aggregate of the Seller’s obligations to the players in respect of the player accounts as of the Closing Date,
and referred to on the financial statements of the Seller as “player trust fund liability.”

 

“Software”
means any and all (i) computer programs, including any and all software implementations of algorithms, models and methodologies,
whether in source code or object code form, (ii) databases, compilations, and any other electronic data files, including any and
all collections of data, whether machine readable or otherwise, (iii) descriptions, flow-charts, technical and functional specifications,
and other work product used to design, plan, organize, develop, test, troubleshoot and maintain any of the foregoing, (iv) without
limitation to the foregoing, the software technology supporting any functionality contained on all Internet website(s), owned and
operated by the Seller in the Business, (v) all computer-aided design software, including the underlying data, and (vi) all documentation,
including technical, end-user, training and troubleshooting manuals and materials, relating to any of the foregoing.

 

    	3

    	 

    

 

“Trade Secrets”
means all product specifications, data, know-how, formulae, compositions, processes, designs, sketches, photographs, graphs, drawings,
samples, inventions and ideas, research and development, manufacturing or distribution methods and processes, customer lists, current
and anticipated customer requirements, price lists, market studies, business plans, computer software and programs (including both
source code and object code), databases, interfaces, computer software and database technologies, systems, structures and architectures
(and related processes, formulae, composition, improvements, devices, know-how, inventions, discoveries, concepts, ideas, designs,
methods and information), and any other information, however documented, that is a trade secret within the meaning of the applicable
trade-secret protection law.

 

“Transaction
Agreements” shall mean and include this Agreement, the Escrow Agreement and all consents, releases, assignment and assumption
agreements, bills of sale and other instruments (each in form and substance satisfactory to Purchaser) which are necessary in order
to duly and properly transfer the Purchased Assets to the Purchaser.

 

The following terms
are defined in the following sections of this Agreement:

 

	Term	 	Section
	Agreement	 	Preamble
	Agreement Date	 	Preamble
	Asset Purchase	 	3.1
	Assumed Liabilities	 	3.2(b)
	Business	 	Recitals
	Caby	 	Preamble
	Cash Payment	 	3.3
	Closing	 	4.1
	Closing Date	 	4.1
	Common Stock	 	Recitals
	Employees	 	6.7(a)
	Escrow Fund	 	4.3(i)
	Escrow Shares	 	3.3
	Exchange Act	 	5.6
	Indemnification Notice	 	8.4
	Indemnifying Party	 	8.4
	Indemnitees	 	8.3
	Losses	 	8.2
	MGT	 	Preamble
	MGT Indemnitees	 	8.2
	MGT Shares	 	3.3
	NYSE MKT	 	2.3
	Parties	 	Preamble
	Purchased Assets	 	3.1
	Purchase Price	 	3.4
	Purchaser	 	Preamble
	Retained Liabilities	 	3.2(a)
	SEC	 	5.6

 

    	4

    	 

    

 

	Securities Act	 	3.3
	Seller	 	Preamble
	Seller Indemnitees	 	8.3
	Servers	 	3.1
	Termination Date	 	4.5(b)
	Third Party Claim	 	8.8
	Threshold Amount	 	8.9
	Transferred Contracts	 	3.1(c)
	Transferred Employees	 	2.2
	Website	 	Recitals
	Wiggins	 	Preamble

 

1.2     Interpretation.
Unless the context otherwise requires, the terms defined in Section 1.1 shall have the meanings herein specified for all
purposes of this Agreement, applicable to both the singular and plural forms of any of the terms defined herein. Whenever the
words “include,” “includes” or “including” are used in this Agreement, they shall be deemed
to be followed by the words “without limitation.” The use of the neuter gender herein shall be deemed to include the
masculine and feminine genders wherever necessary or appropriate, the use of the masculine gender herein shall be deemed to include
the neuter and feminine gender wherever necessary or appropriate and the use of the feminine gender herein shall be deemed to
include the neuter and masculine genders wherever necessary or appropriate.

 

2.     PRE-CLOSING
AGREEMENTS.

 

2.1          Conduct
of the Business. During the period from the Agreement Date and continuing until the earlier of (x) the termination of this
Agreement and (y) the Closing, without the prior written consent of Purchaser:

 

(a)          Seller will conduct the Business in the usual, regular and ordinary course in substantially the same manner as heretofore conducted
and in material compliance with all Applicable Law (except to the extent expressly provided otherwise in this Agreement).

 

(b)          Seller
will (i) pay or perform all of its Business related obligations when due, and (ii) continue to develop the Business consistent
with past practice.

 

(c)          Seller
will not engage in any practice, take any action, fail to take any action, or enter into any transaction as a result of which a
Material Adverse Effect is likely to occur; provided, however, that the failure to make additional capital investments
or hire additional employees will not in any case result in a Material Adverse Effect.

 

(d)          Seller
will confer with the Purchaser concerning matters of a material nature to the Business, but subject to reasonable restrictions
necessary to preserve confidential information from being disclosed to Purchaser or to prevent Seller from relinquishing the attorney-client
privilege. Seller shall cause the Employees to be available to Purchaser to discuss the Business during regular business hours.
Any expenses relating to the Business outside the ordinary course of business in excess of $5,000 shall be approved in advance
by MGT.

 

    	5

    	 

    

 

2.2          Offers
of Employment. At any time prior to or on the Closing Date, the Purchaser may offer at-will employment to any of the
Employees. The Purchaser is hereby permitted to hire and offer to hire such Employees effective on the Closing Date on such terms
and conditions as the Purchaser shall in its sole discretion deem appropriate. The Employees who accept and commence employment
with the Purchaser are hereinafter collectively referred to as the “Transferred Employees.” Seller will not
take, and will cause each of its Affiliates not to take, any action which would impede, hinder, interfere or otherwise compete
with the Purchaser’s effort to hire any Transferred Employees. The Purchaser shall assume no liability for any obligations
of Seller or any other Person to any Employee unless and until such Employee becomes a Transferred Employee, and in that case,
only to the extent agreed in writing by the Purchaser. For purposes of clarity, any such offer of employment shall be contingent
on the Closing occurring and shall terminate and be of no force and effect if this Agreement is terminated pursuant to Section
4.5.

 

2.3          Additional
Listing Application. The Purchaser shall promptly, and in any event no later than seven days after the Agreement Date, file
an Additional Listing Application with the NYSE MKT (“NYSE MKT”) with respect to the MGT Shares and the Escrow
Shares.

 

3.          PURCHASE
AND SALE OF ASSETS.

 

3.1          Purchase
and Sale of Purchased Assets. Upon the terms and subject to the conditions set forth herein, effective as of the Closing,
Seller hereby irrevocably sells, assigns, grants, transfers and delivers to the Purchaser and its successors and assigns, and
the Purchaser hereby accepts, free and clear of all Liens whatsoever (other than Liens imposed by commercially available off-the-shelf
software), the Purchased Assets (the “Asset Purchase”). The “Purchased Assets” shall mean
the following:

 

(a)          All
of Seller’s right, title and interest in and to the Business, including all Intellectual Property related to the website
www.draftday.com, and including the Intellectual Property described on Schedule 3.1(a) hereto, the user mailing list (including
current and former users), player data and source code;

 

(b)          All
of Seller’s rights in property, tangible or intangible, used solely in the Business, including all leasehold improvements,
supplies, furnishings, office equipment, IT equipment and other tangible personal property located at Suite 614, 1165 North Clark
Street, Chicago Illinois 60610, including the property listed or described on Schedule 3.1(b)(i) hereto but excluding the
property listed or described on Schedule 3.1(b)(ii) hereto;

 

(c)          All
of Seller’s rights under the following contracts: (i) License Agreement, between 4th and 1 LLC and STATS LLC,
dated January 3, 2011, as amended, and (ii) RotoWire Fantasy Service Agreement, between DraftDay and Roto Sports, Inc., dated June
11, 2013 (collectively, the “Transferred Contracts”);

 

(d)          Cash
in an amount equal to the Player Deposits; and

 

(e)          All
books and records, tangible or intangible, relating solely to the Purchased Assets.

 

    	6

    	 

    

 

The Purchased Assets
shall not include any assets or property other than as set forth in Section 3.1. For the avoidance of doubt, the Seller’s
computer servers (the “Servers”) are not a Purchased Asset.

 

3.2          Liabilities
Assumed and Not Assumed.

 

(a)          Other
than the Assumed Liabilities, the Purchaser shall assume no debts, obligations, contracts, leases or liabilities of Seller, and
will not be obligated to pay, perform or discharge, any debts, obligations, contracts, leases or liabilities of Seller, whether
arising out of occurrences prior to, at or after the Closing Date (the “Retained Liabilities”). For the avoidance
of doubt, (i) Seller shall pay all amounts owing under the Transferred Contracts through the Closing Date, (ii) Seller shall retain
all obligations to fund or otherwise provide benefits accrued before and through the Closing Date by Employees under the Employee
Plans, and (iii) Seller shall retain any liabilities or obligations relating to current or former Employees accrued as of the Closing
Date.

 

(b)          “Assumed
Liabilities” means (i) Seller’s obligations under the Transferred Contracts arising on and after the Closing Date,
(ii) all obligations of the Seller related to Player Deposits and non-cash items such as bonus funds existing as of the Closing
Date, and (iii) Seller’s obligations related to the Purchased Assets that arise on or after the Closing Date.

 

3.3          Cash
Payment; Issuance of Common Stock. At the Closing, in connection with the Asset Purchase described in Section 3.1 above,
the Purchaser shall (i) pay to Seller in cash an amount equal to $600,000 (the “Cash Payment”), (ii) issue
to Seller 47,583 shares of Common Stock (the “MGT Shares”), and (iii) deliver to the Escrow Agent 47,583 shares
of Common Stock (the “Escrow Shares”), issued in the name of Seller. The stock certificates representing the
MGT Shares and the Escrow Shares shall bear a legend stating that they have not been registered under the Securities Act of 1933,
as amended (the “Securities Act”), and such other restrictions described in Section 6.4(b) hereof.

 

3.4          Purchase
Price; Allocation of the Purchase Price. The purchase price for the Purchased Assets shall be the sum of the Cash Payment
and the value of the MGT Shares and the Escrow Shares issued pursuant to Section 3.3 (collectively, the “Purchase
Price”). The Purchase Price shall be allocated in accordance with Schedule 3.4 to be provided by Purchaser to
Seller no later than 30 days after the Closing Date. Each of Seller and the Purchaser shall report the purchase and sale of the
Purchased Assets for all tax purposes in a manner consistent with such allocation, and neither of them shall take a position inconsistent
with such allocation on any tax return, before any taxing authority or in any judicial proceeding that is, in any manner, inconsistent
with such allocation without the consent of the other unless specifically required pursuant to a determination by an applicable
taxing authority.

 

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4.          CLOSING.

 

4.1          Closing.
Unless this Agreement is earlier terminated in accordance with Section 4.5, the closing of the transactions contemplated
by this Agreement (the “Closing”) shall take place on April 2, 2014, or on such earlier or later date when
each of the conditions set forth in this Article 4 have been satisfied or waived (other than those conditions that by their
nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions), or at such other time
as the Parties may agree (the “Closing Date”). The Closing shall take place remotely by the electronic exchange
of documents and signatures, or at such location as the Parties hereto agree.

 

4.2          Conditions
to Closing.

 

(a)          Conditions
to Obligations Common to Both Parties. The respective obligations of each Party hereto to consummate the transactions contemplated
hereby shall be subject to the satisfaction at or prior to the Closing of each of the following conditions:

 

(i)          No
temporary restraining order, preliminary or permanent injunction or other order issued by any court of competent jurisdiction or
other legal or regulatory restraint or prohibition preventing the consummation of the Asset Purchase shall be in effect, nor shall
any action have been taken by any Governmental Authority seeking any of the foregoing, and no statute, rule, regulation or order
shall have been enacted, entered, enforced or deemed applicable to the Asset Purchase, which makes the consummation of the Asset
Purchase illegal; and

 

(ii)         MGT
and Seller shall have timely obtained from each Governmental Authority, including NYSE MKT, all approvals, waivers and consents,
if any, necessary for consummation of, or in connection with, the Asset Purchase and the other transactions contemplated hereby.

 

(b)          Additional
Conditions to Obligations of Seller. The obligations of Seller to consummate the transactions contemplated hereby shall be
subject to the satisfaction at or prior to the Closing of each of the following conditions (it being understood that each such
condition is solely for the benefit of Seller and may be waived by Seller in writing in its sole discretion without notice, liability
or obligation to any Person):

 

(i)          The
representations and warranties of MGT in this Agreement shall be true and correct in all material respects (except for such representations
and warranties that are qualified by their terms by a reference to materiality, which representations and warranties as so qualified
shall be true and correct in all respects) on and as of the Agreement Date and on and as of the Closing Date as though such representations
and warranties were made on and as of such date (except for representations and warranties which address matters only as to a specified
date, which representations and warranties shall be true and correct with respect to such specified date). MGT shall have performed
and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed
and complied with by it at or prior to the Closing.

 

(ii)         Seller
shall have received each of the deliveries required to be made by MGT to Seller pursuant to Section 4.3.

 

(c)          Additional
Conditions to Obligations of the Purchaser. The obligations of the Purchaser to consummate the transactions contemplated hereby
shall be subject to the satisfaction at or prior to the Closing of each of the following conditions (it being understood that each
such condition is solely for the benefit of the Purchaser and may be waived by the Purchaser in writing in its sole discretion
without notice, liability or obligation to any Person):

 

    	8

    	 

    

 

(i)          The
representations and warranties of Seller in this Agreement shall be true and correct in all material respects (except for such
representations and warranties that are qualified by their terms by a reference to materiality, which representations and warranties
as so qualified shall be true and correct in all respects) on and as of the Agreement Date and on and as of the Closing Date as
though such representations and warranties were made on and as of such date (except for representations and warranties which address
matters only as to a specified date, which representations and warranties shall be true and correct with respect to such specified
date). Seller shall have performed and complied in all material respects with all covenants, obligations and conditions of this
Agreement required to be performed and complied with by it at or prior to the Closing.

 

(ii)         MGT
shall have received each of the deliveries required to be made by Seller to MGT pursuant to Section 4.3.

 

(iii)        MGT
shall have entered into an agreement with a credit card processing company to provide credit card processing services to the Business
commencing on the Closing Date.

 

(iv)        There
shall not have occurred a Material Adverse Effect with respect to the Purchased Assets since the Agreement Date.

 

4.3           Closing
Deliverables and Actions. At the Closing:

 

(a)          Seller
shall execute and deliver to MGT a certificate dated as of the Closing Date, executed on behalf of Seller by its President, to
the effect that (i) the condition set forth in Section 4.2(c)(i) has been satisfied, and (ii) there shall not have occurred
a Material Adverse Effect with respect to the Purchased Assets since the Agreement Date;

 

(b)          MGT
shall execute and deliver to Seller a certificate dated as of the Closing Date, executed on behalf of MGT by its President, to
the effect that the condition set forth in Section 4.2(b)(i) has been satisfied;

 

(c)          Each
Party shall execute and deliver to the other Party a signature page to each of the Transaction Agreements to which such Party is
a party;

 

(d)          Seller
shall deliver to MGT evidence that all required Consents, if any, have been obtained;

 

(e)          MGT
shall deliver to Seller evidence that the consent from NYSE MKT has been obtained;

 

(f)          Purchaser
shall pay the Cash Payment to Seller;

 

    	9

    	 

    

  

(g)          Seller
shall pay to Purchaser cash in an amount equal to the Player Deposits, together with written evidence of the amount of the Player
Deposits and non-cash items such as bonus funds existing as of the Closing Date;

 

(h)          MGT
shall issue to Seller a certificate of Common Stock representing the MGT Shares;

 

(i)          MGT shall issue and deliver a certificate of Common Stock representing the Escrow Shares to the Escrow Agent to form the escrow
fund (the “ Escrow Fund”);

 

(j)          Seller
shall deliver, cause to be delivered, or make available in a manner satisfactory to the Purchaser, the source code underpinning
the Website, player data and user mailing lists;

 

(k)          Seller
shall deliver, cause to be delivered, or make available in a manner satisfactory to the Purchaser, the book and records solely
related to the Purchased Assets; and

 

(l)          All
other previously undelivered items required to be delivered at or prior to the Closing pursuant to this Agreement or otherwise
required in connection herewith shall have been delivered, unless delivery has been waived in writing by the intended recipient
thereof.

 

4.4          Effect
of Closing. All transactions contemplated herein and by the other Transaction Agreements to occur on and as of the Closing
Date shall be deemed to have occurred simultaneously and to be effective as of the close of business on the Closing Date; provided,
however, that none of such transactions shall be deemed to have occurred unless and until all of the conditions to closing
described in Section 4.2 and each of the deliverables and actions referenced in Section 4.3 shall have been delivered
and taken in accordance therewith.

 

4.5          Termination.
At any time prior to the Closing, this Agreement may be terminated and the transactions contemplated hereby abandoned by authorized
action taken by the terminating Party:

 

(a)          by
mutual written consent duly authorized by MGT and Seller;

 

(b)          by
either MGT or Seller, if the Closing shall not have occurred on or before April 15, 2014 or such other date that Purchaser and
Seller may agree upon in writing (the “Termination Date”); provided, however, that the right to
terminate this Agreement under this Section 4.5(b) shall not be available to any Party whose breach of this Agreement has
resulted in the failure of the Closing to occur on or before the Termination Date;

 

(c)          by
either MGT or Seller, if any permanent injunction or other order of a Governmental Authority preventing the consummation of the
transactions contemplated hereby shall have become final and nonappealable;

 

(d)          by
MGT, if Seller shall have breached any representation, warranty, covenant or agreement contained herein and such breach shall not
have been cured within five business days after receipt by Seller of written notice of such breach (provided, however,
that no such cure period shall be available or applicable to any such breach which by its nature cannot be cured) and if not cured
within the timeframe above and at or prior to the Closing, such breach would result in the failure of any of the conditions set
forth in Section 4.2(c) to be satisfied; or

 

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(e)          by
Seller, if MGT shall have breached any representation, warranty, covenant or agreement contained herein and such breach shall not
have been cured within five business days after receipt by MGT of written notice of such breach (provided, however,
that no such cure period shall be available or applicable to any such breach which by its nature cannot be cured) and if not cured
within the timeframe above and at or prior to the Closing, such breach would result in the failure of any of the conditions set
forth in Section 4.2(b) to be satisfied.

 

4.6          Effect
of Termination. In the event of termination of this Agreement as provided in Section 4.5, this Agreement shall
forthwith become void and there shall be no liability or obligation on the part of the Purchaser, Seller, or their respective
officers, directors, stockholders or Affiliates; provided, however, that the provisions of this Section 4.6
(Effect of Termination), Section 7.2 (Public Announcements), Section 7.3 (Confidentiality), and Article 9
(Miscellaneous) shall remain in full force and effect and survive any termination of this Agreement.

 

5.          REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER. The Purchaser hereby represents and warrants to Seller as follows:

 

5.1          Incorporation;
Authority. The Purchaser (i) is a duly incorporated and validly existing corporation in good standing under the laws of the
State of Delaware and is duly qualified as a foreign corporation in any other jurisdiction in which it does business; and (ii)
has all requisite power and authority to own, lease and operate the Purchased Assets and to carry on its business as presently
conducted and to execute, deliver and perform its obligations under this Agreement and each other Transaction Agreement to which
the Purchaser is a party.

 

5.2          Execution;
Validity of Agreement; Due Authorization. This Agreement and each other Transaction Agreement to which the Purchaser is a
party has been duly executed and delivered by the Purchaser and this Agreement and each other Transaction Agreement to which the
Purchaser is a party constitutes a legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in
accordance with its respective terms. The execution and delivery of this Agreement by the Purchaser and the performance by the
Purchaser of its obligations hereunder have been duly authorized by all necessary corporate action on the part of the Purchaser.

 

5.3          Consents
and Approvals; No Violations. Except as set forth in Schedule 5.3, none of the execution, delivery or performance of
this Agreement or any other Transaction Agreement by the Purchaser, the consummation by the Purchaser of the transactions contemplated
hereby or thereby, or the compliance by the Purchaser with any of the provisions hereof or thereof will (a) require (i) any filing
with or notice to any Governmental Authority or other Person, (ii) the obtaining of any Permit or (iii) the expiration or termination
of any statutory or regulatory waiting period, (b) result in a violation or breach of, or constitute (with or without due notice
or lapse of time or both) a default (or give rise to any right of termination, amendment, cancellation or acceleration or require
any payment) under, any of the terms, conditions or provisions of any material note, bond, mortgage, indenture, lease, license,
contract, agreement or other instrument or obligation to which the Purchaser is a party or by which the Purchaser or any of the
Purchaser’s properties or assets is bound, (c) violate any Applicable Laws, or (d) result in the creation of any Lien upon
any of the Purchased Assets.

 

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5.4          MGT
Shares and Escrow Shares. The MGT Shares and the Escrow Shares, when issued and paid for in accordance with the terms of this
Agreement, will be duly authorized, validly issued, fully paid and nonassessable securities of the Purchaser.

 

5.5          Broker’s
Fee. No agent, broker, investment banker, firm, or other Person, acting on behalf of or under the authority of the Purchaser
or any of its Affiliates, is or will be entitled to any broker’s or finder’s fee or any other commission or similar
fee or expense, directly or indirectly, in connection with any of the transactions contemplated by this Agreement or any of the
other Transaction Agreements.

 

5.6.          SEC
Reporting. Purchaser has timely filed all forms, reports and documents required to be filed by it with the U.S. Securities
and Exchange Commission (the “SEC”) pursuant to Section 13(a) or 15(d) and Section 14(a) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) since January 1, 2013. Purchaser
maintains a system of internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange
Act) which is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes. Purchaser maintains disclosure controls and procedures required by Rule 13a-15 or 15d-15
under the Exchange Act that are reasonably designed to ensure that all information required to be disclosed in Purchaser’s
reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the SEC.

 

5.7          Cash.
Purchaser has sufficient readily available cash-on-hand to consummate the transactions contemplated by this Agreement and make
the Cash Payment.

 

6.          REPRESENTATIONS
AND WARRANTIES REGARDING SELLER AND THE PURCHASED ASSETS. Seller hereby represents and warrants to the Purchaser as follows,
and the Purchaser, in agreeing to consummate the transactions contemplated by this Agreement, has relied upon such representations
and warranties:

 

6.1          Incorporation;
Authority. Seller (i) is a duly incorporated and validly existing corporation in good standing under the laws of the State
of Delaware and is duly qualified as a foreign corporation in any other jurisdiction in which it does business; and (ii) has all
requisite power and authority to own, lease and operate its property and to carry on its business as presently conducted and to
execute, deliver and perform its obligations under this Agreement and each other Transaction Agreement to which Seller is a party.
A true and correct copy of the Certificate of Incorporation of Seller, as amended to date, has been delivered to MGT and is in
full force and effect as of the Agreement Date.

 

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6.2          Execution;
Validity of Agreement; Due Authorization. This Agreement and each other Transaction Agreement to which Seller is a party has
been duly executed and delivered by Seller and this Agreement and each other Transaction Agreement to which Seller is a party
constitutes a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with their respective terms.
The execution and delivery of this Agreement by Seller and the performance by Seller of its obligations hereunder have been duly
authorized by all necessary corporate action on the part of Seller.

 

6.3          Consents
and Approvals; No Violations. Except as set forth on Schedule 6.3, none of the execution, delivery or performance of
this Agreement or any other Transaction Agreement by Seller, the consummation by Seller of the transactions contemplated hereby
or thereby, or the compliance by Seller with any of the provisions hereof or thereof will (a) require (i) any filing with or notice
to any Governmental Authority or other Person, (ii) the obtaining of any Permit or (iii) the expiration or termination of any
statutory or regulatory waiting period, (b) result in a violation or breach of, or constitute (with or without due notice or lapse
of time or both) a default (or give rise to any right of termination, amendment, cancellation or acceleration or require any payment)
under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, lease, license, contract, agreement
or other instrument or obligation to which Seller is a party or by which Seller or any of Seller’s properties or assets
is bound, (c) violate any Applicable Laws, or (d) result in the creation of any Lien upon any of the Purchased Assets.

 

6.4          Investment
Representations.

 

(a)          Seller
understands that the issuance of the Common Stock hereunder is not being registered under the Securities Act or any state securities
laws by reason of specific exemptions under the provisions thereof;

 

(b)          Seller
understands that (i) the shares of Common Stock are “restricted securities” under applicable securities laws which
provide, in substance, that the shares of Common Stock may only be disposed of pursuant to an effective registration statement
under the Securities Act and applicable state securities laws or an exemption from such registration, (ii) the Purchaser has no
obligation or intention to effect any registration of the shares of Common Stock, and (iii) the Purchaser may endorse any certificates
representing the shares of Common Stock with a legend describing the restrictions referenced in clause (i) of this Section 6.4(b);
and

 

(c)          Seller
has been provided with (i) MGT’s most recent annual report on Form 10-K filed with the SEC, (ii) the information contained
in any reports or documents required to be filed by MGT with the SEC since its most recent annual report on Form 10-K, and (iii)
a brief description of any material changes in MGT’s affairs that are not disclosed in the documents furnished.

 

6.5          Purchased
Assets. Prior to giving effect to the transactions contemplated herein:

 

(a)          Seller
is the exclusive, true and lawful owner of all right, title, and interest in and to the Purchased Assets and has good and valid
title thereto. The Purchased Assets are free and clear of any Liens, licenses or other encumbrances (other than Liens, licenses
or encumbrances imposed by commercially available off-the-shelf software) and no rights, licenses, covenants not to sue or similar
rights have been granted with respect to the Purchased Assets. Other than the Servers, the Purchased Assets are substantially all
of the assets and properties used in connection with the conduct of the Business and are sufficient to operate the Business as
presently operated.

 

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(b)          The
Purchased Assets have not been the subject of any Action and, to Seller’s Knowledge, there is no Action pending, asserted
or threatened by or against Seller concerning the ownership, use of, misappropriation, or licensed right to use, any of the Purchased
Assets.

 

(c)          No
inventor of the Purchased Assets is in default or breach of any term of any employment agreement, non-disclosure agreement, assignment
of invention agreement or similar agreement relating to the protection, ownership, development, use or transfer of the Purchased
Assets. To the extent that any Purchased Asset has been conceived, developed or created for Seller by any other Person, Seller
has executed valid and enforceable written agreements with such Person with respect thereto transferring to Seller the entire right,
title and interest therein and thereto by operation of law or by valid written assignment.

 

(d)          There
are no inventors of the Purchased Assets other than the named inventors of the Purchased Assets. There are no asserted or unasserted
claims of ownership of the Purchased Assets by any Person other than the named owners of the Purchased Assets.

 

(e)          All
documents, agreements, prototypes, models, product samples, books, notebooks, certificates, licenses, files and any other diligence
materials that Seller has provided to the Purchaser in connection with the Purchaser’s evaluation of the Purchased Assets
are true, correct and complete originals (if originals were provided by Seller) or copies of such materials.

 

(f)          Seller
owns or has the right to use all Software material to the Business, including, but not limited to, the operation of draftday.com.

 

(g)          Seller
has sufficient readily available cash-on-hand to consummate the transactions contemplated by this Agreement and to pay to Purchaser
cash in an amount equal to the Player Deposits.

 

6.6          Litigation.
There are no actions, lawsuits, judgments, claims, investigations or legal or administrative proceedings, pending or threatened
against Seller. There is no judgment, order, injunction, decree or award (whether rendered by a court, administrative agency or
by arbitration) to which Seller is a party.

 

6.7          Employees.

 

(a)          As
of the date of this Agreement, Seller employs nine (9) employees in operating the Business. The names, job titles and rates of
compensation (including wages, salaries and bonuses, including anticipated or contingent bonuses (if any), and deferred compensation
(if any)) of such employees are listed on Schedule 6.7 (collectively, the “Employees”).

 

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(b)          There
are no written employment agreements with any Employees which are not terminable on the giving of reasonable notice in accordance
with Applicable Law. To Seller’s Knowledge, no Employee is in violation of any term of any employment contract, confidentiality
or other proprietary information disclosure agreement or any other contract relating to the right of any such Person to be employed
by, or otherwise perform services for, Seller.

 

(c)          No
Employee has any rights to any of the Purchased Assets.

 

(d)          Seller
has never maintained any Employee Plan which has been subject to title IV of ERISA or Code Section 412 or ERISA Section 302. No
assets or liabilities with respect to the Employees shall be transferred as a result of this Agreement from any Employee Plan to
any plan maintained by the Purchaser.

 

6.8          Contracts.
The Transferred Contracts and the Lease collectively represent all of the contracts, agreements and commitments, whether written
or oral, of Seller used in the Business, other than contracts related to the Servers. Seller has previously delivered to Purchaser
a correct and complete copy of each such written agreement and contract of Seller used in the Business (as amended to date) and
a written summary setting forth the material terms and conditions of each oral agreement of Seller used in the Business. Each
such agreement is legal, valid, binding, enforceable, and in full force and effect. Seller is not in breach or default under such
agreements, and, to Seller’s Knowledge, no event has occurred which with notice or lapse of time would constitute a breach
or default of such agreements, or permit termination, modification, or acceleration, under such agreements. There is no agreement,
order, or other instrument binding upon the Seller or the Business which restricts or prohibits the Business from competing with
any other Person, from engaging in any business or from conducting activities in any geographic area, or which otherwise restricts
or prohibits the conduct of the Business.

 

6.9          Bankruptcy.
Seller has not committed nor does it currently intend to commit any act of bankruptcy, is not insolvent, has not proposed nor
currently intends to propose a compromise or arrangement to its creditors generally, has not had nor currently intends to have
any petition for a receiving order in bankruptcy filed against it, has not made nor currently intends to make a voluntary assignment
in bankruptcy, has not initiated nor intends to initiate any proceeding to have itself declared bankrupt or wound-up, has not
initiated nor intends to initiate any proceeding to have a receiver appointed to any part of its assets, has not had any creditor
take nor currently anticipates that any creditor will take possession of any of its property, nor has it had any of the foregoing
become enforceable nor currently anticipates that any of the foregoing will become enforceable upon any of its property or the
Purchased Assets.

 

6.10          Compliance
with Laws; Permits.

 

(a)          The
Seller has been and is in compliance in all material respects with all Applicable Laws, Permits, judgments, decrees, and reporting
requirements applicable to the Business and the Purchased Assets.

 

(b)          The
Seller has all Permits from Governmental Authorities required for the operation of the Business and the ownership of the Purchased
Assets, each of which will be in full force and effect on the Closing Date. A list of all such Permits is set forth on Schedule
6.10. Except as specified on Schedule 6.10, no registrations, filings, applications, notices, transfers, consents, approvals,
orders, qualifications, waivers or other actions of any kind are required by virtue of the assignment of such Permits to the Purchaser
as contemplated hereby.

 

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6.11          Intentionally
Omitted.

 

6.12          Financial
Statements.

 

(a)          The
following financial statements of the Business are set forth on Schedule 6.12(a) hereto: (i) statement of profits and losses
for the period ended December 31, 2013 and (ii) player deposit information, including related assets and liabilities, as of December
31, 2013. Such financial statements of the Business fairly present in all material respects the financial position and results
of operations and cash flows of the Business as at the dates and for the periods presented therein.

 

(b)          The
Business has no liabilities, except (i) those liabilities reflected, disclosed or reserved against on the financial statements
of the Business referenced in Section 6.12(a)(ii) above, (ii) liabilities resulting from the obligations set forth in this
Agreement and the other Transaction Agreements, (iii) liabilities under the Transferred Contracts, and (iv) liabilities incurred
in the ordinary course of business since December 31, 2013.

 

(c)          Since
December 31, 2013, no event or condition of any character has had, or is reasonably likely to result in, a Material Adverse Effect
on the Business.

 

(d)          All
existing Player Deposits represent valid deposits of customers of the Business arising from bona fide transactions entered into
in the ordinary course of business.

 

6.13          Books
and Records. All books and records of the Seller solely relating to the Business, including, but not limited to, records and
lists of past, present or prospective customers, suppliers, or personnel, marketing plans, sales literature and promotional literature
and other books, ledgers, files, reports, operating records, records relating to the Player Deposits and records relating to the
Assumed Liabilities are accurate and have been maintained in a manner consistent with customary industry practices and in compliance
with Applicable Law. All financial and accounting books, ledgers and accounts of the Seller relating to the Business have been
properly and accurately kept and completed in all material respects, and do not contain any material inaccuracies or discrepancies
of any kind.

 

6.14          Consents
and Approvals. No Consents or notices to, or filings, registrations, or qualifications with any Person or Governmental
Authority and no Consents or waivers from, or notices to, any other party are required for the consummation by Seller of the transactions
contemplated by this Agreement and the other Transaction Agreements, except for Consents from Seller’s board of directors
and preferred stockholders.

 

6.15          Broker’s
Fee. No agent, broker, investment banker, firm, or other Person, acting on behalf of Seller or any of its Affiliates, or under
the authority of Seller or any of its Affiliates, is or will be entitled to any broker’s or finder’s fee or any other
commission or similar fee or expense, directly or indirectly, in connection with any of the transactions contemplated by this
Agreement or any of the other Transaction Agreements.

 

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 7.          ADDITIONAL
AGREEMENTS.

 

7.1          Seller
Noncompete and Non-Solicit. From and for five (5) years after the Closing Date, Seller will not, directly or indirectly: (a)
own, manage, operate, join, control, or be connected in any manner with any business or activity which is competitive with the
Business, as conducted by Seller immediately prior to the Closing, or (b) cause or encourage any Transferred Employee to discontinue
his or her relationship with the Purchaser. In addition, from and for one (1) year after the Closing Date, each of Wiggins and
Caby will not, directly or indirectly: (x) establish, operate or control any business which is competitive with the Business,
as conducted by Seller immediately prior to the Closing, or (y) cause or encourage any Transferred Employee to discontinue his
or her relationship with the Purchaser. Notwithstanding the preceding sentence, nothing herein shall prevent Wiggins or Caby at
any time from (i) accepting employment with a business which is competitive with the Business or (ii) receiving minority equity
interests in any such business.

 

7.2          Public
Announcements. Seller shall not issue any press release or other public statement with respect to this Agreement or the transactions
contemplated hereby without the prior approval of MGT, except as disclosure may be required by Law. MGT shall use commercially
reasonable efforts to consult with Seller before issuing any press release or other public statement with respect to this Agreement
or the transactions, except as may be required by Applicable Law.

 

7.3          Confidentiality.
Except for any press release or public announcement previously issued or issued in accordance with Section 7.2, all terms
of this Agreement, the other Transaction Agreements and the transactions contemplated hereby and thereby shall remain confidential,
except as disclosure may be required by Law. No Party hereto shall disclose to anyone the negotiations, any information concerning
the contemplated transactions, or anything contained herein, except to their accountants, employees, bankers and attorneys in
connection with the transactions contemplated by this Agreement, without the prior written approval of the other Party. Seller
agrees that from and after the Closing Date, Seller will, and will cause its Affiliates to, keep secret and retain in the strictest
confidence, and will not use for the benefit of itself or others, any proprietary information with respect to the Purchased Assets;
provided, however, proprietary information in intangible form and not reduced to writing may be retained and used
by Persons who have access to such information.

 

7.4          Further
Assurances. The Purchaser and Seller shall, at any time and from time to time after the Agreement Date, do or cause to be
done all such further acts, and to execute, acknowledge, deliver and file, or cause to be executed, acknowledged, delivered or
filed, all such deeds, transfers, conveyances, assignments or assurances as may be reasonably requested by another Party for:
(i) transferring, conveying and assigning the Purchased Assets to the Purchaser; and (ii) otherwise effectuating the transactions
contemplated by this Agreement. To the extent related to the Purchased Assets, the Purchaser and Seller shall, at any time and
from time to time after the Agreement Date, provide such information or documentation as is reasonably requested by another Party
in connection with completing any tax returns or audits.

 

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7.5          Legend
Removal. Following the Closing, MGT shall file all forms, reports and documents required to be filed by MGT with the SEC,
and comply in all material respects with all other state, federal and SEC rules and regulations, to enable Seller to sell the
MGT Shares and the Escrow Shares on the NYSE MKT in accordance with the terms of Rule 144 under the Securities Act. In furtherance
thereof, MGT shall (at Seller’s sole cost and expense, if any) use commercially reasonable efforts to cause its transfer
agent to issue certificates without the legend referenced in Section 3.3: (i) in connection with a sale of the MGT Shares
and the Escrow Shares by Seller after the required holding period under Rule 144 of the Securities Act has expired, in compliance
with Rule 144, or (ii) in the event the MGT Shares and the Escrow Shares have been registered under the Securities Act, upon a
resale of the MGT Shares and the Escrow Shares pursuant to an effective registration statement. MGT agrees to use commercially
reasonable efforts to maintain its listing status with the NYSE MKT. MGT shall cooperate with Seller in connection with any resales
of the MGT Shares and the Escrow Shares pursuant to Rule 144 after the applicable holding period under Rule 144 has expired.

 

7.6          Transition
Services.

 

(a)          After
the Closing, Seller shall use commercially reasonable efforts to assist Purchaser to (i) make such modifications to the home page
of the Website as Purchaser shall request in order to redirect all customers and prospective customers to Purchaser’s website
and (ii) maintain current program of SEO (i.e. keep the Website alive with outbound links to FanThrowdown.com in order to pass
the “daily fantasy sports” keyword authority from the Website to FanThrowdown.com), in each case at no additional cost
to the Purchaser.

 

(b)          Seller
shall cooperate with Purchaser to create proper messaging to ensure maximum retention of players on the Website, including, but
not limited to, a posting on the RotoGrinders.com website.

 

(c)          From
the Closing through April 30, 2014, Seller shall allow Purchaser to use the office space provided under the Lease, at no charge
to Purchaser.

 

(d)          For
a period of up to six (6) months following the Closing Date, upon Purchaser’s request and at Purchaser’s cost and expense,
Seller shall continue to support the Website on its Servers in a manner consistent with current practice until Purchaser can complete
on orderly migration of the Website.

 

8.          SURVIVAL
OF REPRESENTATIONS, WARRANTIES AND COVENANTS; INDEMNIFICATION.

 

8.1          Survival
of Representations, Warranties and Covenants. All representations and warranties set forth or made in this Agreement and any
other Transaction Agreement shall survive the Closing until the date that is eighteen months after the Closing Date. All covenants
and agreements of the Parties set forth in this Agreement and the other Transaction Agreements to be performed after the Closing
shall survive the Closing in accordance with their respective terms. Any claim pending on the expiration date of any applicable
survival period for which a notification of claim has been made pursuant to Section 8.4 below on or before such expiration
date may continue to be asserted and indemnified against until finally resolved.

 

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8.2          Indemnification
Obligations of Seller. Seller agrees to indemnify, defend and hold harmless MGT and its shareholders, officers, directors,
managers, representatives, agents, employees and Affiliates (collectively, the “MGT Indemnitees”) from and
against any claim, suit, action, liability, loss, damage, deficiency, fee, cost or expense of any nature whatsoever (including,
without limitation, any interest, penalties, investigation expenses and fees through trial and appeals, and disbursements of counsel
and accountants, but excluding incidental, consequential, special, or punitive and treble damages) (collectively, “Losses”)
arising out of, based upon or resulting from: (i) the breach of any representation or warranty of Seller which is contained in
this Agreement, any other Transaction Agreement or any exhibits or schedules hereto or thereto; (ii) any breach or failure to
perform any of the covenants, agreements or undertakings of Seller contained in this Agreement, any other Transaction Agreement
or any exhibit or schedule hereto or thereto; (iii) any claims by Transferred Employees for compensation or benefits or other
matters under an Employee Plan accrued prior to the Closing Date and any claims of any nature whatsoever (whether accruing before
or after Closing) by any Employee who is not hired by the Purchaser; (iv) any failure to comply with any “bulk sales,”
“bulk transfer” or similar laws of any State, if applicable; and (v) any and all costs and expenses (including reasonable
legal and accounting fees) incident to the enforcement of the indemnification rights of the MGT Indemnitees under this Section
8.2.

 

8.3          Indemnification
Obligations of MGT.    MGT agrees to indemnify, defend and hold harmless
Seller and its shareholders, officers, directors, managers, representatives, agents, employees and Affiliates (collectively, the
“Seller Indemnitees”, and, together with the MGT Indemnitees, the “Indemnitees”) from and
against any Losses arising out of, based upon or resulting from: (i) the breach of any representation or warranty of MGT which
is contained in this Agreement, any other Transaction Agreement or any exhibits or schedules hereto or thereto; (i) any breach
or failure to perform any of the covenants, agreements or undertakings of MGT contained in this Agreement, any other Transaction
Agreement or any exhibits or schedules hereto or thereto; and (iii) any and all costs and expenses (including reasonable legal
and accounting fees) incident to the enforcement of the indemnification rights of the Seller Indemnitees under this Section
8.3.

 

8.4          Notification
of Claims. In the event that any Party asserts a claim for indemnification hereunder, such Party shall (a) provide the indemnifying
Party (“Indemnifying Party”) with prompt written notice of the nature of such claim (an “Indemnification
Notice”), (b) make available to the Indemnifying Party all relevant information which is material to the claim and which
is in the possession of the Indemnitee and (c) otherwise reasonably cooperate with the Indemnifying Party with respect to such
claim; provided, however, that the failure of an Indemnitee to deliver an Indemnification Notice under this Section
8.4 shall not relieve the Indemnifying Party of its indemnification obligations under this Article 8 unless and only
to the extent that such Indemnifying Party is materially prejudiced by such failure.

 

8.5          Objections
to Claims for Indemnification. No payment shall be made under Article 8 if (i) in the case of claims made by the MGT
Indemnitees, the Seller shall object to the claim made pursuant to Section 8.4 within 30 days after the Seller’s
receipt of such notice, or (ii) in the case of claims made by the Seller, MGT shall object to the claim made pursuant to Section
8.4 within 30 days after MGT’s receipt of such notice. If the Indemnifying Party does not object in writing within such
30-day period, such failure to so object shall be an irrevocable acknowledgment by the Indemnifying Party that the Indemnified
Party is entitled to the full amount of the claim for Losses set forth in the notice, and payment in respect of such Losses shall
thereafter be made in accordance with this Article 8 and the Escrow Agreement.

 

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8.6          Resolution
of Conflicts.

 

(a)          
In case the Indemnifying Party delivers an objection in accordance with Section 8.5, the Seller and Purchaser shall attempt
in good faith to agree upon the rights of the respective parties with respect to each of such claims. If the Seller and the Purchaser
should so agree, a memorandum setting forth such agreement shall be prepared and signed by both parties and, if such claim involves
a claim against the Escrow Fund, furnished to the Escrow Agent. The Escrow Agent shall be entitled to rely on any such memorandum
and make distributions from the Escrow Fund in accordance with the terms thereof.

 

(b)          If
the Purchaser and the Seller, notwithstanding such good faith effort, fail to resolve such dispute within 30 days after the Seller
advises the Purchaser of its objections, then such dispute shall be resolved in accordance with the provisions of Section 9.4.

 

8.7          Investigation.
The right to indemnification, payment of Losses or any other remedy based on the representations, warranties and the covenants
hereunder will not be affected by any investigation conducted with respect to, or any knowledge acquired, or capable of being
acquired at any time, whether before or after the Closing Date, with respect to the accuracy or inaccuracy of, or compliance with,
any such representation, warranty or covenant. Furthermore, no information or knowledge obtained in any investigation pursuant
this Agreement or any other Transaction Agreement shall affect or be deemed to modify any representation, warranty or covenant
contained herein or therein.

 

8.8          Third-Party
Claims.The obligations and liabilities of an Indemnifying Party under this Article 8, with respect to Losses resulting
from a claim brought by any third party (a “Third-Party Claim”) shall be subject to the following terms and
conditions:

 

(a)          Promptly
after delivery of an Indemnification Notice in respect of a Third-Party Claim, the Indemnifying Party may elect, by written notice
to the Indemnitee within ten (10) days of an Indemnification Notice, to undertake the investigation and defense thereof with counsel
reasonably satisfactory to the Indemnitee, at the sole cost and expense of the Indemnifying Party. If the Indemnifying Party chooses
to defend any Third-Party Claim, the Indemnitee shall cooperate with all reasonable requests of the Indemnifying Party and shall
make available to the Indemnifying Party any books, records or other documents within its control that are necessary or appropriate
for such defense.

 

(b)          In
the event that the Indemnifying Party, within ten (10) days after receipt of an Indemnification Notice, does not so elect to defend
such Third-Party Claim, the Indemnitee will have the right to undertake the investigation and defense of such Third-Party Claim
for the account of the Indemnifying Party. The Indemnitee shall not settle or compromise any Third-Party Claim, or consent to the
entry of a judgment, whether or not the Indemnifying Party shall elect to defend such Third-Party Claim, without the written consent
of the Indemnifying Party.

 

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8.9          Limitations
On Indemnification. From the Closing until the Escrow Release Date, the MGT Indemnitees shall first seek recovery for Losses
from the Escrow Fund until there are no amounts remaining in the Escrow Fund, after which the MGT Indemnitees may seek recovery
for Losses directly against the Seller. Absent fraud or any breach of the representations and warranties contained in Section
6.5 (Purchased Assets), (i) Seller shall have no obligation to indemnify the MGT Indemnitees under Section 8.2(i) unless
and until the aggregate amount of all Losses incurred by the MGT Indemnitees in respect thereof exceeds $5,000 (the “Threshold
Amount”), whereupon Seller shall be obligated in respect of all Losses so identified without regard to the Threshold
Amount from the first dollar of such Losses, (ii) Seller shall have no obligation to indemnify the MGT Indemnitees under Section
8.2(i) for aggregate Losses exceeding the value of the Escrow Shares, and (iii) Seller shall have no obligation to indemnify
the MGT Indemnitees under this Agreement for aggregate Losses exceeding the Purchase Price. Absent fraud, (x) Purchaser shall
have no obligation to indemnify the Seller Indemnitees under Section 8.3(i) unless and until the aggregate amount of all
Losses incurred by the MGT Indemnitees in respect thereof exceeds the Threshold Amount, whereupon MGT shall be obligated in respect
of all Losses so identified without regard to the Threshold Amount from the first dollar of such Losses, and (y) Purchaser shall
have no obligation to indemnify the Seller Indemnitees under this Agreement for aggregate Losses exceeding the Purchase Price.

 

8.10          Release
of Escrow Funds. On the Escrow Release Date all funds held under the Escrow Agreement shall be released to the Seller; provided,
however, that the Escrow Agent shall not deliver any amount that the Escrow Agent deems necessary to satisfy any claims
made pursuant to Section 8.4 that are not resolved as of the Escrow Release Date. As soon as the Escrow Agent receives
written notice from the Purchaser and the Seller that such claims have been resolved in accordance with Section 9.4, the
Escrow Agent shall deliver to the Seller the remaining portion of the Escrow Fund not required to satisfy such claim.

 

9.          MISCELLANEOUS.

 

9.1          Costs
and Attorneys’ Fees. The Parties agree that in the event it becomes necessary for any Party to institute litigation
or obtain the services of an attorney in order to enforce its rights under the provisions of this Agreement, then, in that event,
the prevailing Party as determined by a court of competent jurisdiction, may be awarded reasonable attorneys’ fees and costs
expended in pursuit of such litigation, including appellate litigation.

 

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9.2          Notices.
All notices, requests, claims, demands, waivers, instructions, documents and other communications to be given pursuant to this
Agreement shall be in writing and shall be delivered personally, faxed, or sent by nationally-recognized overnight courier to
a Party at the address set forth below for such Party or to such other address as the Party to whom notice is to be given may
have furnished to the other Party hereto in writing in accordance herewith. Any such notice or communication shall be deemed to
have been delivered and received (a) in the case of personal delivery, on the date of such delivery, (b) in the case of faxing,
on the date sent (or on the first business day following the date sent if the date sent is not a business day) if confirmation
of successful transmission is received, and (c) in the case of a nationally-recognized overnight courier, on the first business
day after the date when sent for overnight delivery:

 

If to MGT, to:

 

MGT Capital Investments,
Inc.

500 Mamaroneck Avenue
– Suite 204

Harrison, NY 10528

Attention: Robert B.
Ladd, President and CEO

Fax: (914) 630-7532

 

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

 

MGT Capital Investments,
Inc.

500 Mamaroneck Avenue
– Suite 204

Harrison, NY 10528

Attention: Stuart J.
van Leenen, General Counsel

 

If to Seller, to:

 

CardRunners Gaming,
Inc.

1165 N. Clark Street,
# 614

Chicago, IL 60610

Attention:
Andrew Wiggins, President

 

Fax: (312) 264-0403

 

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

 

DLA Piper LLP

203 N. LaSalle Street,
Suite 1900

Chicago, IL 60601

Attention: Gregory
S. Grossman

 

If to Wiggins, to:

 

Andrew Wiggins

525 W. Hawthorne Pl.
#603

Chicago, IL 60657

 

    	22

    	 

    

 

If to Caby, to:

 

Taylor Caby

1730 N. Clark St.
#2812

Chicago, IL 60614

 

9.3          Entire
Agreement. This Agreement (including the exhibits and schedules hereto), and the other Transaction Agreements constitute the
entire agreement among the Parties with respect to the subject matter hereto and supersede all prior agreements and understandings,
both oral and written, among the Parties with respect to the subject matter of this Agreement.

 

9.4          Governing
law; Consent to Jurisdiction.

 

(a)          This
Agreement shall be governed and construed in accordance with the laws of the State of New York, without regard to the conflict
of laws rules thereof.

 

(b)          The
Parties hereto irrevocably: (i) agree that any suit, action or other legal proceeding arising out of this Agreement shall be brought
in the United States District Court for the Southern District of New York or in the Borough of Manhattan, New York Supreme Court,
(ii) consent to the jurisdiction of each such court in any suit, action or proceeding, (iii) waive any objection which they, or
any of them, may have to the laying of venue of any such suit, action or proceeding in any of such courts, and (iv) agree that
service of process by overnight courier or registered or certified mail, at the addresses listed in Section 9.2 shall be
good and sufficient service of process. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

9.5          Binding
effect. This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective heirs,
personal representatives, successors and permitted assigns. This Agreement may not be assigned by any Party hereto without the
prior written consent of the other Party, which consent may be withheld at the discretion of each Party whose consent is requested
and any purported assignment, unless so consented to, shall be void and without effect.

 

9.6          Waivers
and Amendments. This Agreement may be amended, superseded, cancelled, renewed or extended, and the terms hereof may be waived,
only by a written instrument signed by the Parties hereto or, in the case of a waiver, by the Party waiving compliance. Any Party
may waive any misrepresentation by any other Party, or any breach of warranty by, or failure to perform any covenant, obligation
or agreement by any other Party, provided that mere inaction or failure to exercise any right, remedy or option under this
Agreement, or any delay in exercising the same, will not operate as nor shall be construed as a waiver, and no waiver will be
effective unless set forth in writing and only to the extent specifically stated therein, and no single or partial exercise of
any such right, power or privilege will preclude any further exercise thereof or the exercise of any other such right, power or
privilege.

 

    	23

    	 

    

  

9.7          Recitals,
Exhibits and Schedules. The recitals to this Agreement and all exhibits and schedules attached hereto are hereby incorporated
by reference into, and made a part of, this Agreement.

 

9.8          Headings.
The descriptive headings in this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

 

9.9          Severability.
If any provision of this Agreement is determined to be illegal or unenforceable, such provision will be deemed amended to the
extent necessary to conform to Applicable Law, or, if it cannot be so amended without materially altering the intention of the
Parties, it will be deemed stricken and the remainder of this Agreement will remain in full force and effect.

 

9.10          Specific
Performance. Each of the Parties hereto acknowledges and agrees that the other Party hereto would be irreparably damaged in
the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise
breached and that there would be no adequate remedy at law or in monetary damages to compensate for any such breach. Accordingly,
each Party hereto agrees that, in addition to any remedy to which such Party may be entitled at law or in equity, they each shall
be entitled to injunctive relief to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement
and the terms and provisions hereof, in each case without being required to post a bond or other security.

 

9.11          Fees
and Expenses. Subject to Section 9.1, Seller and MGT shall each pay their own expenses incidental to the preparation
and negotiation of this Agreement and the consummation of the transactions contemplated hereby.

 

9.12          Legal
Representation of the Parties. Each of the Parties hereto has had the opportunity to have its own legal counsel independently
advise such Party with respect to the transactions contemplated by this Agreement and the other Transaction Agreements. The Parties
expressly agree that the language used in this Agreement shall be deemed to be the language chosen by the Parties hereto to express
their mutual intent, and no provision of this Agreement should be construed against or interpreted to the advantage of any Party
hereto by reason of such Party or its legal counsel having drafted or participated in the drafting thereof.

 

9.13          Payment
of Transfer Costs and Expenses. All stamp, transfer, documentary, sales, use, bulk, registration and other such taxes and
fees (including penalties and interest) which may be imposed in any jurisdiction in connection with, or arising from, any of the
transactions set forth herein shall be paid by the Purchaser.

 

9.14          No
Third Party Beneficiaries. This Agreement is solely for the benefit of the Parties hereto and their successors and permitted
assigns and, except with respect to the rights of the MGT Indemnitees and Seller Indemnitees under Article 8, this Agreement
shall not be deemed to confer upon any third party any remedy, claim, reimbursement or other right in addition to those which
may exist without regard to this Agreement.

 

    	24

    	 

    

  

9.15          Counterparts;
Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all
of which together will constitute one and the same instrument. This Agreement and any amendments hereto, to the extent executed
and delivered by means of a facsimile machine or e-mail of a PDF file containing a copy of an executed agreement (or signature
page thereto), shall be treated in all respects and for all purposes as an original agreement or instrument and shall have the
same binding legal effect as if it were the original signed version thereof.

 

[Remainder of Page
Intentionally Blank–Signature Page Follows]

 

    	25

    	 

    

  

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the day and year first above written.

 

	 	CARDRUNNERS GAMING, INC.
	 	 
	 	By:	 
	 	 	Name: Andrew Wiggins
	 	 	Title:   President
	 	 
	 	MGT CAPITAL INVESTMENTS, INC.
	 	 
	 	By:	 
	 	 	Name: Robert B. Ladd
	 	 	Title: President and CEO

 

	 	Solely for purposes of Section 7.1 and Article 9:
	 	 
	 	By:	 
	 	 	Name: Andrew Wiggins
	 	 
	 	By:	 
	 	 	Name: Taylor Caby

 

[Signature Page to Asset Purchase Agreement
(Draft Day)]

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