Document:

Exhibit 10.1

 

 

AMENDED AND RESTATED MOTORSPORT GAMES INC.

2021 EQUITY INCENTIVE PLAN

 

EFFECTIVE
DATE: NOVEMBER 10, 2022

Approved by Stockholders: JANUARY 12, 2021

 

SECTION
1

ESTABLISHMENT, PURPOSE, EFFECTIVE DATE, EXPIRATION DATE

 

1.1
ESTABLISHMENT. Motorsport Games Inc. (the “Company”) hereby establishes the Amended and Restated
Motorsport Games Inc. 2021 Equity Incentive Plan (the “Plan”).

 

1.2
PURPOSE. The purpose of the Plan is to enhance and promote the success of the Company by linking the personal
interests of the members of the Board, employees, officers, executives, consultants and advisors to those of the Company stockholders
and by providing such individuals with an incentive for outstanding performance to generate superior returns to the Company stockholders.
The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of Board
members, employees, officers, executives, consultants and advisors upon whose judgment, interest, and special effort the successful conduct
of the Company’s operation is largely dependent. To further these objectives, the Plan provides for the grant of Options, Stock
Appreciation Rights, Restricted Stock Awards, Performance Share Awards and Restricted Stock Unit Awards.

 

1.3
EFFECTIVE DATE. The Plan became effective on January 12, 2021 (the “Original Effective Date”),
with the amended and restated version of the Plan being effective November 10, 2022.

 

1.4
EXPIRATION DATE. The Plan will expire on, and no Award may be granted under the Plan after, the tenth (10th)
anniversary of the Original Effective Date (the “Expiration Date”). Any Awards that are outstanding on the Expiration
Date shall remain in force according to the terms of the Plan and the applicable Award Agreement.

 

SECTION
2

GLOSSARY; CONSTRUCTION

 

2.1
GLOSSARY. When a word or phrase appears in this Plan document with the initial letter capitalized, and the word
or phrase does not commence a sentence, the word or phrase will generally be given the meaning ascribed to it in Section 1 or in the attached
Glossary, which is incorporated into and is part of the Plan. All of these key terms are listed in the Glossary. Whenever these key terms
are used, they will be given the defined meaning unless a clearly different meaning is required by the context.

 

2.2
CONSTRUCTION. The masculine gender, where appearing in the Plan, shall include the feminine gender (and vice
versa), and the singular shall include the plural, unless the context clearly indicates to the contrary. If any provision of this Plan
is determined to be for any reason invalid or unenforceable, the remaining provisions shall continue in full force and effect.

 

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SECTION
3

ELIGIBILITY AND PARTICIPATION

 

3.1
General Eligibility. Persons eligible to participate in this Plan include all employees, officers, and Non-Employee
Directors of, and Consultants to, the Company or any Subsidiary. Awards may also be granted to prospective employees or Non-Employee Directors
but no portion of any such Award will vest, become exercisable, be issued, or become effective prior to the date on which such individual
begins to provide services to the Company or its Subsidiaries.

 

3.2
Actual Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select from among
all eligible individuals, those to whom Awards will be granted and will determine the nature and amount of each Award.

 

3.3
FOREIGN PARTICIPANTS. In order to assure the viability of Awards granted to Participants employed in foreign
countries, the Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in
local law, tax policy, or custom. Moreover, the Committee may approve such supplements to, or amendments, restatements, or alternative
versions of, the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as
in effect for any other purpose; provided, however, that no such supplements, amendments, restatements, or alternative versions shall
increase the share limitations set forth in Section 5.

 

SECTION
4

ADMINISTRATION

 

4.1
GENERAL. The Plan shall be administered by the Compensation Committee or, with respect to individuals who are Non-Employee
Directors, the Board. All references in the Plan to the “Committee” shall refer to the Committee or Board, as applicable.
A majority of the Committee shall constitute a quorum. The acts of a majority of the members present at any meeting at which a quorum
is present, and acts approved in writing by a majority of the Committee in lieu of a meeting, shall be deemed the acts of the Committee.
Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member
by any officer or other employee of the Company or any Subsidiary, the Company’s independent registered public accountants, or
any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan. The
Committee is authorized to interpret the Plan, to prescribe, amend, and rescind rules and regulations as it may deem necessary or advisable
to administer the Plan, to provide for conditions and assurances deemed necessary or advisable to protect the interests of the Company,
and to make all other determinations necessary or advisable for the administration of the Plan, but only to the extent not contrary to
the express provisions of the Plan.

 

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4.2
COMMITTEE RESPONSIBILITIES. Subject to the provisions of the Plan, the Committee shall have the authority to:
(a) designate the Participants who are entitled to receive Awards under the Plan; (b) determine the types of Awards and the times when
Awards will be granted; (c) determine the number of Awards to be granted and the number of shares of Stock to which an Award will relate;
(d) determine the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to, the exercise price or
base value, grant price, or purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions
or restrictions on the exercisability of an Award, and accelerations or waivers thereof, based in each case on such considerations as
the Committee in its sole discretion determines; provided, however, that the Committee shall not take any action or fail to take any action
with respect to the operation of the Plan that would cause all or part of the payment under any Award to be subject to the additional
tax under Section 409A of the Code; (e) determine whether, to what extent, and in what circumstances an Award may be settled in, or the
exercise price or purchase price of an Award may be paid in, cash, Stock, other Awards, or other property, or whether an Award may be
cancelled, forfeited, exchanged or surrendered; (f) prescribe the form of each Award Agreement, which need not be the same for each Participant;
(g) decide all other matters that must be determined in connection with an Award; (h) interpret the terms of, and determine any matter
arising pursuant to, the Plan or any Award Agreement; and (i) make all other decisions or determinations that may be required pursuant
to the Plan or an Award Agreement as the Committee deems necessary or advisable to administer the Plan, including, without limitation,
establishing, adopting, or revising any rules and regulations as it may deem necessary or advisable to administer the Plan. The Committee
shall also have the authority to modify existing Awards to the extent that such modification is within the power and authority of the
Committee as set forth in the Plan. The foregoing list of powers is not intended to be complete or exclusive and, to the extent not contrary
to the express provisions of the Plan, the Committee shall have such powers, whether or not expressly set forth in this Plan, that it
may determine necessary or appropriate to administer the Plan.

 

4.3
Decisions Final. The Committee’s interpretation of the Plan, any Awards granted pursuant to the Plan, any Award
Agreement and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties.
No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award granted
under the Plan.

 

SECTION
5

Shares available for grant

 

5.1
number of shares. Subject to adjustment as provided in Section 10, the aggregate number of shares of Stock reserved
and available for grant pursuant to the Plan shall be 100,000 shares. The shares of Stock delivered pursuant to any Award may consist,
in whole or in part, of authorized but unissued Stock, treasury Stock not reserved for any other purposes, or Stock purchased on the
open market.

 

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5.2
share counting. The following rules shall apply solely for purposes of determining the number of shares of Stock available
for grant under the Plan at any given time:

 

(a) The number of shares
of Stock reserved and available for grant pursuant to the Plan shall be reduced by one share of Stock for each one share issued in connection
with Awards granted under the Plan (or by which the Award is valued by reference).

 

(b) In the event any Award
granted under the Plan after the Original Effective Date is terminated, expired, forfeited, or cancelled for any reason, the number of
shares of Stock subject to such Award will again be available for grant under the Plan (i.e., any prior charge against the limit set forth
in Section 5.1 shall be reversed).

 

(c) If shares of Stock are
not delivered in connection with an Award because the Award may only be settled in cash rather than in Stock, no shares of Stock shall
be counted against the limit set forth in Section 5.1. If any Award may be settled in cash or Stock, the rules set forth in Section 5.2(b)
shall apply until the Award is settled, at which time, if the Award is settled in cash, the underlying shares of Stock will be added back
to the shares available for grant pursuant to Section 5.1.

 

(d) The exercise of a Stock-settled
SAR or broker-assisted “cashless” exercise of an Option (or a portion thereof) will reduce the number of shares available
for grant under Section 5.1 by the entire number of shares of Stock subject to that SAR or Option (or applicable portion thereof), even
though a smaller number of shares of Stock will be issued upon such an exercise.

 

(e) Shares of Stock tendered
to pay the exercise price of an Option or tendered, withheld or otherwise relinquished by a Participant to satisfy a tax withholding obligation
arising in connection with any Award will not again become Stock available for grant under the Plan. Moreover, shares of Stock purchased
on the open market with cash proceeds generated by the exercise of an Option or SAR will not increase or replenish the number of shares
available for grant under Section 5.1.

 

(f) If the provisions of
this Section 5.2 are inconsistent with the requirements of any regulations issued pursuant to Section 422 of the Code, the provisions
of such regulations shall control over the provisions of this Section 5.2, but only as this Section 5.2 relates to Incentive Stock Options.

 

(g) To the maximum extent
permitted by applicable law and the NASDAQ listing standards (or the rules of any exchange on which the Stock is then listed), shares
of Stock awarded in assumption of, or in substitution for, any outstanding awards of any entity acquired in any form of combination by
the Company or any Subsidiary shall not be counted against shares of Stock available for grant under Section 5.1.

 

(h) The Committee may adopt
such other reasonable rules and procedures as it deems to be appropriate for determining the number of shares of Stock that are available
for grant under Section 5.1.

 

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5.3
Award LIMITS. Notwithstanding any other provision in the Plan, and subject to adjustment as provided in Section 10:

 

(a) The maximum number of
shares of Stock that may be awarded as Incentive Stock Options under the Plan shall be 100,000 shares.

 

(b) The sum of the total
cash compensation earned and paid and the aggregate grant date fair value (calculated as of the Date of Grant in accordance with applicable
accounting rules) of shares subject to Awards granted to any one Participant who is a Non-Employee Director during any one twelve (12)
month period shall not exceed $500,000. For the avoidance of doubt, if a Non-Employee Director serves the Company in more than one capacity
during any twelve (12) month period, the total compensation limit described in this Section 5.3(b) shall only apply to the compensation
paid for services performed as a Non-Employee Director. To the extent any Non-Employee Director compensation is deferred, it shall be
counted toward this total compensation limit for the year in which the compensation was first earned or granted.

 

5.4
FRACTIONAL SHARES. No fractional shares of Stock shall be issued pursuant to the Plan and the Committee, in the Award
Agreement, shall determine whether cash shall be given in lieu of fractional shares or whether such fractional shares shall be eliminated
by rounding up or down as appropriate. In the event of adjustment as provided in Section 10, the total number of shares of Stock subject
to any affected Award shall always be a whole number by rounding any fractional share to the nearest whole share.

 

SECTION
6

STOCK OPTIONS

 

6.1
Options. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant
Options to one or more Participants upon such terms and conditions and in such amounts, as shall be determined by the Committee. Options
are also subject to the following additional terms and conditions:

 

(a) Exercise Price.
No Option shall be granted at an exercise price that is less than the Fair Market Value of one share of Stock on the Date of Grant.

 

(b) Exercise of Option.
Options shall be exercisable at such times and in such manner, and shall be subject to such restrictions or conditions, as the Committee
shall in each instance approve, which need not be the same for each grant or for each Participant. Unless otherwise provided in an Award
Agreement, Options shall immediately lapse if a Participant’s employment is terminated for Cause. In addition, unless otherwise
provided in an Award Agreement, if a Participant incurs a termination of employment on account of Disability or death before the Option
lapses, the Option shall lapse, unless it is previously exercised, on the earlier of: (i) the scheduled termination date of the Option;
or (ii) twelve (12) months after the date of the Participant’s termination of employment on account of death or Disability. Upon
the Participant’s death or Disability, any Options exercisable at the Participant’s death or Disability may be exercised
by the Participant’s legal representative or representatives, by the person or persons entitled to do so pursuant to the Participant’s
last will and testament, or, if the Participant fails to make testamentary disposition of such Option or dies intestate, by the person
or persons entitled to receive the Option pursuant to the applicable laws of descent and distribution.

 

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(c) Term of Option.
Each Option shall expire at such time as determined by the Committee; provided, however, that no Option shall be exercisable later than
the tenth (10th) anniversary the Date of Grant.

 

(d) Payment. The exercise
price for any Option shall be paid in cash or shares of Stock held for longer than six (6) months (through actual tender or by attestation).
In the Award Agreement, the Committee also may prescribe other methods by which the exercise price of an Option may be paid, the form
of payment including, without limitation, any net-issuance arrangement or other property acceptable to the Committee (including broker-assisted
“cashless exercise” arrangements), and the methods by which shares of Stock shall be delivered or deemed to be delivered to
Participants. The Committee, in consideration of applicable accounting standards and applicable law, may waive the six (6) month share-holding
period described in the first sentence of this paragraph (d) in the event payment of an Option is made through the tendering of shares.

 

(e) Repricing of Options.
Notwithstanding any other provision in the Plan to the contrary, without approval of the Company’s stockholders, an Option may not
be amended, modified or repriced to reduce the exercise price after the Date of Grant. Except as otherwise provided in Section 10 with
respect to an adjustment in capitalization, an Option also may not be surrendered in consideration of or exchanged for cash, other Awards
or a new Option having an exercise price below the exercise price of the Option being surrendered or exchanged.

 

6.2
INCENTIVE STOCK OPTIONS. Incentive Stock Options shall be granted only to Participants who are employees and
the terms of any Incentive Stock Options granted pursuant to the Plan must comply with the following additional provisions of this Section
6.2:

 

(a) Exercise Price.
Subject to Section 6.2(d), the exercise price per share of Stock pursuant to any Incentive Stock Option shall be set by the Committee,
provided that the exercise price for any Incentive Stock Option shall not be less than the Fair Market Value of one share of Stock as
of the Date of Grant.

 

(b) Lapse of Option.
An Incentive Stock Option shall lapse in the following circumstances:

 

(i) The Incentive Stock
Option shall lapse ten (10) years from the Date of Grant, unless an earlier time is set in the Award Agreement;

 

(ii) The Incentive Stock
Option shall lapse upon a termination of employment for any reason other than the Participant’s death or Disability, unless otherwise
provided in the Award Agreement; and

 

(iii) If the Participant
incurs a termination of employment on account of Disability or death before the Option lapses pursuant to paragraph (i) or (ii) above,
the Incentive Stock Option shall lapse, unless it is previously exercised, on the earlier of: (1) the scheduled termination date of the
Option; or (2) twelve (12) months after the date of the Participant’s termination of employment on account of death or Disability.
Upon the Participant’s death or Disability, any Incentive Stock Options exercisable at the Participant’s death or Disability
may be exercised by the Participant’s legal representative or representatives, by the person or persons entitled to do so pursuant
to the Participant’s last will and testament, or, if the Participant fails to make testamentary disposition of such Incentive Stock
Option or dies intestate, by the person or persons entitled to receive the Incentive Stock Option pursuant to the applicable laws of
descent and distribution.

 

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(c) Individual Dollar Limitation.
The aggregate fair market value (determined as of the time an Award is made and calculated in accordance with Section 422 of the Code)
of all shares of Stock with respect to which Incentive Stock Options are first exercisable by a Participant in any calendar year may not
exceed $100,000 or such other limitation as imposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive
Stock Options are first exercisable by a Participant in excess of such limitation, the excess shall be considered Non-Qualified Stock
Options.

 

(d) Ten Percent Owners.
An Incentive Stock Option may be granted to any individual who, at the Date of Grant, owns stock possessing more than ten percent (10%)
of the total combined voting power of all classes of Stock of the Company only if such Option is granted at a price that is not less than
one hundred and ten percent (110%) of Fair Market Value on the Date of Grant and the Option is exercisable for no more than five (5) years
from the Date of Grant.

 

(e) Right to Exercise.
Except as provided in Section 6.2(b)(iii), an Incentive Stock Option may be exercised only by the Participant during the Participant’s
lifetime.

 

SECTION
7

STOCK APPRECIATION RIGHTS

 

7.1
Stock Appreciation Rights. Subject to the terms and provisions of the Plan, the Committee, at any time and from time
to time, may grant SARs to one or more Participants upon such terms and conditions, and in such amounts, as shall be determined by the
Committee. SARs are also subject to the following additional terms and conditions:

 

(a) Base Value. No
SAR shall be granted at a base value that is less than the Fair Market Value of one share of Stock on the Date of Grant.

 

(b) Exercise of SARs.
SARs shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall, in each instance approve,
which need not be the same for all Participants.

 

(c) Term of SARs.
Each SAR shall expire at such time as determined by the Committee; provided, however, that no SAR shall be exercisable later than the
tenth (10th) anniversary the Date of Grant.

 

(d) Payment of SAR Amount.
Upon the exercise of a SAR, the Participant shall be entitled to receive the payment of an amount determined by multiplying: (i) the
excess, if any, of the Fair Market Value of a share of Stock on the date of exercise, over the base value fixed by the Committee on the
Date of Grant; by (ii) the number of shares with respect to which the SAR is exercised. Payment for SARs shall be made in the manner
and at the time specified by the Committee in the Award Agreement. At the discretion of the Committee, the Award Agreement may provide
for payment of SARs in cash, shares of Stock of equivalent value, or a combination thereof.

 

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(e) Repricing of SARs.
Notwithstanding any other provision in the Plan to the contrary, without approval of the Company’s stockholders, a SAR may not be
amended, modified or repriced to reduce the base value after the Date of Grant. Except as otherwise provided in Section 10 with respect
to an adjustment in capitalization, a SAR also may not be surrendered in consideration of or exchanged for cash, other Awards or a new
SAR having a base value below the base value of the SAR being surrendered or exchanged.

 

SECTION
8

RESTRICTED STOCK AWARDS AND RESTRICTED STOCK UNIT AWARDS

 

8.1
Restricted Stock awards. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to
time, may grant Restricted Stock Awards to one or more Participants upon such terms and conditions, and in such amounts, as shall be determined
by the Committee. Restricted Stock Awards are also subject to the following additional terms and conditions:

 

(a) Issuance and Restrictions.
Restricted Stock Awards shall be subject to such conditions and/or restrictions as the Committee may impose (including, without limitation,
limitations on transferability, the right to receive dividends, or the right to vote the Stock), which need not be the same for each grant
or for each Participant. These restrictions may lapse separately or in combination at such times, pursuant to such circumstances, in such
installments, or otherwise, as determined by the Committee. Except as otherwise provided in the Award Agreement, Participants holding
shares of Restricted Stock Awards may not exercise voting rights with respect to the shares of Restricted Stock during the period of restriction.

 

(b) Forfeiture. Except
as otherwise provided in the Award Agreement or other written document, such as an employment agreement or a change of control agreement,
upon a termination of employment (or termination of service in the case of a Consultant or Non-Employee Director) during the applicable
period of restriction, Restricted Stock Awards that are at that time subject to restrictions shall be forfeited.

 

(c) Evidence of Ownership
for Restricted Stock Awards. Restricted Stock Awards granted pursuant to the Plan may be evidenced in such manner as the Committee
shall determine, which may include an appropriate book entry credit on the books of the Company or a duly authorized transfer agent of
the Company. If certificates representing shares of Stock are registered in the name of the Participant, the certificates must bear an
appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock Award, and the Company may,
in its discretion, retain physical possession of the certificate until such time as all applicable restrictions lapse.

 

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8.2
Restricted Stock Unit awards. Subject to the terms and provisions of the Plan, the Committee, at any time and from time
to time, may grant Restricted Stock Units to one or more Participants upon such terms and conditions, and in such amounts, as shall be
determined by the Committee. Restricted Stock Unit Awards are also subject to the following additional terms and conditions:

 

(a) Issuance and Restrictions.
Restricted Stock Unit Awards grant a Participant the right to receive a specified number of shares of Stock, or a cash payment equal to
the Fair Market Value (determined as of a specified date) of a specified number of shares of Stock, subject to such conditions and/or
restrictions as the Committee may impose, which need not be the same for each grant or for each Participant. These restrictions may lapse
separately or in combination at such times, in such circumstances, in such installments, or otherwise, as determined by the Committee.

 

(b) Forfeiture. Except
as otherwise provided in the Award Agreement or other written document, such as an employment agreement or a change of control agreement,
upon a termination of employment (or termination of service in the case of a Consultant or Non-Employee Director) during the applicable
period of restriction, Restricted Stock Unit Awards that are at that time subject to restrictions shall be forfeited.

 

(c) Form and Timing of Payment.
Payment for vested Restricted Stock Unit Awards shall be made in the manner and at the time designated by the Committee in the Award Agreement.
In the Award Agreement, the Committee may provide that payment will be made in cash or Stock, or in a combination thereof. As a general
rule, the shares issued under any Restricted Stock Unit Award (or cash delivered pursuant to such Award) will be paid to the Participant
in a single lump sum within sixty (60) days following the date on which the Restricted Stock Unit Awards vests. Unless the related Award
Agreement is structured to qualify for an exception to the requirements of Section 409A of the Code, such payment is intended to be made
at a specified time or pursuant to a fixed schedule under Treasury Regulation Section 1.409A-3(a)(4). Subject to the six (6) month delay
described in Section 16.11(b), the Restricted Stock Unit Awards that vest upon a Participant’s Separation from Service will be issued
to the Participant within sixty (60) days following the date of the Participant’s Separation from Service.

 

SECTION
9

PERFORMANCE SHARE AWARDS

 

9.1
PERFORMANCE SHARE AWARDS. Subject to the terms and provisions of the Plan, the Committee, at any time and from
time to time, may grant Performance Share Awards to one or more Participants upon such terms and conditions, restrictions and in such
amounts, as shall be determined by the Committee. These restrictions may lapse separately or in combination at such times, in such circumstances,
in such installments, or otherwise, as determined by the Committee.

 

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9.2
FORFEITURE. Except as otherwise provided in the Award Agreement or other written document, such as an employment
agreement or a change of control agreement, upon a termination of employment (or termination of service in the case of a Consultant or
Non-Employee Director) during the applicable performance period, Performance Share Awards that have not yet vested based on the attainment
of the applicable performance goals shall be forfeited.

 

9.3
FORM AND TIMING OF PAYMENT. Payment for vested Performance Share Awards shall be made in the manner and
at the time designated by the Committee in the Award Agreement. In the Award Agreement, the Committee may provide that payment will be
made in cash or Stock, or in a combination thereof. As a general rule, the shares issued under any Performance Share Award (or cash delivered
pursuant to such Award) will be paid to the Participant in a single lump sum within sixty (60) days following the date on which the Performance
Share Award vests.

 

SECTION
10

CHANGES IN CAPITAL STRUCTURE

 

10.1
SHARES AVAILABLE FOR GRANT. In the event of any change in the number of shares of Stock outstanding by reason of any
stock dividend or split, recapitalization, merger, consolidation, combination or exchange of shares or similar corporate change, the maximum
aggregate number of shares of Stock available for grant under Section 5.1, the number of shares of Stock subject to any Award, and any
numeric limitation expressed in the Plan shall be appropriately adjusted by the Committee. Any action taken pursuant to this Section 10.1
shall be taken in a manner consistent with the requirements of Section 409A of the Code and, in the case of Incentive Stock Options, in
accordance with the requirements of Section 424(a) of the Code.

 

10.2
outstanding awards – increase or decrease in issued shares without consideration. Subject to any required action
by the stockholders of the Company, in the event of any increase or decrease in the number of issued shares of Stock resulting from a
subdivision or consolidation of shares of Stock or the payment of a stock dividend (but only on the shares of Stock), or any other increase
or decrease in the number of such shares effected without receipt or payment of consideration by the Company, the Committee shall proportionally
adjust the number of shares of Stock subject to each outstanding Award and the exercise price per share of Stock of each such Award. Any
action taken pursuant to this Section 10.2 shall be taken in a manner consistent with the requirements of Section 409A of the Code and,
in the case of Incentive Stock Options, in accordance with the requirements of Section 424(a) of the Code.

 

10.3
outstanding awards – CERTAIN MERGERS. Subject to any required action by the stockholders of the Company, in the
event that the Company shall be the surviving corporation in any merger or consolidation (except a merger or consolidation as a result
of which the holders of shares of Stock receive securities of another corporation), each Award outstanding on the date of such merger
or consolidation shall pertain to and apply to the securities that a holder of the number of shares of Stock subject to such Award would
have received in such merger or consolidation. Any action taken pursuant to this Section 10.3 shall be taken in a manner consistent with
the requirements of Section 409A of the Code and, in the case of Incentive Stock Options, in accordance with the requirements of Section
424(a) of the Code.

 

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10.4
outstanding awards – OTHER CHANGES. In the event of any other change in the capitalization of the Company or corporate
change other than those specifically referred to in this Section 10, the Committee may, in its absolute discretion, make such adjustments
in the number and class of shares subject to Awards outstanding on the date on which such change occurs and in the per share exercise
price of each Award as the Committee may consider appropriate to prevent the dilution or enlargement of rights relating to Awards granted
under the Plan. Any action taken pursuant to this Section 10.4 shall be taken in a manner consistent with the requirements of Section
409A of the Code and, in the case of Incentive Stock Options, in accordance with the requirements of Section 424(a) of the Code.

 

10.5
NO OTHER RIGHTS. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision
or consolidation of shares of stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock
of any class or any dissolution, liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly provided
in the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to an Award or
the exercise price of any Award.

 

SECTION
11

CHANGE OF CONTROL

 

11.1
treatment of awards – assumption/substitution. Except as otherwise provided in an Award Agreement or other written
document, such as an employment agreement or a change of control agreement, if a Change of Control occurs and Awards are converted, assumed,
or replaced by a successor, the Committee shall have the discretion to cause all outstanding Awards to become fully exercisable and all
restrictions on outstanding Awards to lapse.

 

11.2
treatment of award – NO assumption/substitution. Except as otherwise provided in an Award Agreement or other
written document, such as an employment agreement or a change of control agreement, if a Change of Control occurs and Awards are not
converted, assumed, or replaced by a successor, all outstanding Awards shall automatically become fully exercisable and all restrictions
on outstanding Awards shall lapse. To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set
forth in Section 6.2(c), the excess Options shall be deemed to be Non-Qualified Stock Options. Upon, or in anticipation of, such an event,
the Committee may cause every Award outstanding hereunder to terminate at a specific time in the future and shall give each Participant
the right to exercise Awards during a period of time as the Committee, in its sole and absolute discretion, shall determine.

 

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11.3
PARTICIPANT CONSENT NOT REQUIRED. Nothing in this Section 11 or any other provision of this Plan is intended
to provide any Participant with any right to consent to or object to any transaction that might result in a Change of Control and each
provision of this Plan shall be interpreted in a manner consistent with this intent. Similarly, nothing in this Section 11 or any other
provision of this Plan is intended to provide any Participant with any right to consent to or object to any action taken by the Board
or Committee in connection with a Change of Control transaction.

 

SECTION
12

other provisions applicable to awards

 

12.1
award agreements. All Awards shall be evidenced by an Award Agreement. The Award Agreement shall include such terms
and provisions as the Committee determines appropriate including, without limitation, non-solicitation provisions, non-competition provisions,
confidentiality provisions and other restrictive covenant provisions the Committee deems appropriate. The terms of the Award Agreement
may vary depending on the type of Award, the employee or classification of the employee to whom the Award is made and such other factors
as the Committee deems appropriate.

 

12.2
FORM OF PAYMENT. Subject to the provisions of this Plan, the Award Agreement and any applicable law, payments or transfers
to be made by the Company or any Subsidiary on the grant, exercise, or settlement of any Award may be made in such form as determined
by the Committee including, without limitation, cash, Stock, other Awards, other property, or any combination thereof, and may be made
in a single payment or transfer, in installments, or any combination thereof, in each case determined by rules adopted by the Committee.

 

12.3
LIMITS ON TRANSFER.

 

(a) General. Except
as provided in Section 6.1(b), Section 6.2(b)(iii), Section 12.3(b) or Section 12.4, no Award granted under the Plan may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, to, or in favor of, any party other than the Company or a Subsidiary, until
the expiration of any period during which any vesting or transfer restrictions are applicable to the Award as determined by the Committee.

 

(b) Transfer to Family Members.
The Committee shall have the authority, in its discretion, to grant (or to sanction by way of amendment to an existing Award) Awards
which may be transferred by the Participant during his or her lifetime to any Family Member. Unless transfers for the Participant have
been previously approved by the Committee, the transfer of an Award to a Family Member may only be affected by the Company at the written
request of the Participant. In the event an Award is transferred pursuant to this Section 12.3(b), such transferred Award may not be
subsequently transferred by the transferee except by will or the laws of descent and distribution. A transferred Award shall continue
to be governed by and subject to the terms and limitations of the Plan and relevant Award Agreement, and the transferee shall be entitled
to the same rights as the Participant, as if the transfer had not taken place.

 

    	12

    	 

     

12.4
Beneficiaries. Notwithstanding Section 12.3(a), a Participant may, in the manner determined by the Committee, designate
a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s
death. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all
terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and Award Agreement
otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If no beneficiary has been designated
or survives the Participant, payment shall be made to the person entitled thereto pursuant to the Participant’s will or the laws
of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time
provided the change or revocation is provided to the Committee.

 

12.5
EVIDENCE OF OWNERSHIP. Notwithstanding anything herein to the contrary, the Company shall not be required to issue or
deliver any certificates, make any book entry credits, or take any other action to evidence shares of Stock pursuant to the exercise of
any Award, unless and until the Company has determined, with advice of counsel, that the issuance and delivery of such certificates, book
entry credits, or other evidence of ownership is in compliance with all applicable laws, regulations of governmental authorities and,
if applicable, the NASDAQ listing standards (or the rules of any exchange on which the Stock is then listed). All Stock certificates,
book entry credits, or other evidence of ownership delivered pursuant to the Plan are subject to any stop-transfer orders and other restrictions
as the Company deems necessary or advisable to comply with federal, state, or foreign jurisdiction, securities or other laws, rules and
regulations and the NASDAQ listing standards (or the rules of any exchange on which the Stock is then listed). If certificates representing
shares of Stock are registered in the name of the Participant, the certificates must bear an appropriate legend referring to the applicable
terms, conditions, and restrictions and the Company may, in its discretion, retain physical possession of the certificate until such time
as all applicable restrictions lapse. In addition to the terms and conditions provided herein, the Company may require that a Participant
make such reasonable covenants, agreements, and representations as the Company, in its discretion, deems advisable in order to comply
with any such laws, regulations, or requirements.

 

12.6
CLAWBACK. Every Award issued pursuant to this Plan is subject to potential forfeiture or recovery to the fullest extent
called for by law, any applicable listing standard, or any current or future clawback policy that may be adopted by the Company from
time to time, including, without limitation, any clawback policy adopted to comply with the final rules issued by the Securities and
Exchange Commission and the final listing standards to be adopted by the NASDAQ pursuant to Section 954 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act. By accepting an Award, each Participant consents to the potential forfeiture or recovery of his or
her Awards pursuant to applicable law, listing standard, and/or Company clawback policy, and agrees to be bound by and comply with the
clawback policy and to return the full amount required by the clawback policy. As a condition to the receipt of any Award, a Participant
may be required to execute any requested additional documents consenting to and agreeing to abide by the Company clawback policy as it
may be amended from time to time.

 

    	13

    	 

     

12.7
DIVIDEND EQUIVALENTS. In the event an Award Agreement for any Award calls for the grant of dividend equivalents,
such dividend equivalents shall be payable in accordance with the requirements of Section 409A or an exception thereto. With respect to
any Award that vests based on the achievement of performance goals, in no event will any dividend equivalents vest or be paid prior to
the vesting of the corresponding Award and such dividend equivalents shall only be paid to the Participant if and to the extent that the
performance goals related to the corresponding Award are satisfied.

 

SECTION
13

AMENDMENT, MODIFICATION, AND TERMINATION

 

13.1
AMENDMENT, MODIFICATION AND TERMINATION OF THE PLAN. With the approval of the Board, the Committee may, at any time
and from time to time, terminate, amend or modify the Plan; provided, however, that (a) to the extent necessary and desirable to comply
with any applicable law, regulation, or NASDAQ listing rule (or the rules of any exchange on which the Stock is then listed), the Company
shall obtain stockholder approval of any Plan amendment in such a manner and to such a degree as required; (b) except in the context of
an adjustment described in Section 10, stockholder approval is required for any amendment to the Plan that: (i) increases the number of
shares available under the Plan, (ii) permits the Committee to grant Options or SARs with an exercise price or base value that is below
Fair Market Value on the Date of Grant, (iii) permits the Committee to extend the exercise period for any Option or SAR beyond ten (10)
years from the Date of Grant, (iv) reprices or reduces the exercise price or base value of any previously granted Options or SARs (or
would be treated as a repricing under applicable NASDAQ listing rules or the rules of any exchange on which the Stock is then listed),
(v) expands the types of Awards available for grant under the Plan, or (vi) expands the class of individuals eligible to participate in
the Plan; and (c) no such action shall be taken that would cause all or part of the payment under any Award to be subject to the additional
tax under Section 409A of the Code.

 

13.2
AWARDS PREVIOUSLY GRANTED. No amendment, modification, or termination of the Plan or any Award under the Plan
shall in any manner adversely affect in any material way the rights of the holder under any Award previously granted pursuant to the Plan
without the prior written consent of the holder of the Award. Such consent shall not be required if the change: (a) is required by law
or regulation; (b) does not adversely affect in any material way the rights of the holder; (c) is required to cause the benefits under
the Plan to comply with the requirements of Section 409A of the Code; or (d) is made pursuant to any adjustment described in Section 10.

 

SECTION
14

TAX WITHHOLDING

 

The Company shall have the power
to withhold, or require a Participant to remit to the Company, up to the maximum statutory amount necessary in the applicable jurisdiction,
to satisfy federal, state, and local withholding tax requirements on any Award under the Plan. The Committee may permit the Participant
to satisfy a tax withholding obligation by: (a) directing the Company to withhold shares of Stock to which the Participant is entitled
pursuant to the Award in an amount necessary to satisfy the Company’s applicable federal, state, local or foreign income and employment
tax withholding obligations with respect to such Participant; (b) tendering previously-owned shares of Stock held by the Participant
for six (6) months or longer to satisfy the Company’s applicable federal, state, local, or foreign income and employment tax withholding
obligations with respect to the Participant (which holding period may be waived in accordance with Section 6.1(d)); (c) a broker-assisted
“cashless” transaction; or (d) personal check or other cash equivalent acceptable to the Company.

 

    	14

    	 

     

SECTION
15

INDEMNIFICATION

 

To the extent allowable pursuant
to applicable law, each person who is or shall have been a member of the Committee or of the Board shall be indemnified and held harmless
by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in
connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a involved by reason of any action
taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s
approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he
or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he undertakes to handle and defend
it on his or her behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which
such person may be entitled under the Company’s Articles of Incorporation or Bylaws, resolution or agreement, as a matter of law,
or otherwise, or pursuant to any other power the Company may have to indemnify them or hold them harmless.

 

SECTION
16

GENERAL PROVISIONS

 

16.1
No RIGHTS TO AWARDS. No Participant or other person shall have any claim to be granted any Award and neither the Company
nor the Committee is obligated to treat Participants and other persons uniformly.

 

16.2
No Stockholders Rights. No Award gives the Participant any of the rights of a stockholder of the Company unless and
until shares of Stock are in fact issued to such person in connection with such Award.

 

16.3
NO RIGHT TO Continued employment OR SERVICES. Nothing in the Plan or any Award Agreement shall interfere with or limit
in any way the right of the Company or any Subsidiary to terminate any Participant’s employment or service at any time, nor confer
upon any Participant any right to continue in the employ or service of the Company or any Subsidiary.

 

16.4
unfunded status of awards. The Company shall not be required to segregate any of its assets to ensure the payment of
any Award under the Plan. Neither the Participant nor any other persons shall have any interest in any fund or in any specific asset
or assets of the Company or any other entity by reason of any Award, except to the extent expressly provided hereunder. The Plan is an
unfunded, performance-based bonus plan for a select group of management or highly compensated employees and is not intended to
be either an employee pension or welfare benefit plan subject to ERISA.

 

    	15

    	 

     

16.5
RELATIONSHIP TO OTHER BENEFITS. No payment pursuant to the Plan shall be taken into account in determining any
benefits pursuant to any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or
any Subsidiary.

 

16.6
EXPENSES. The expenses of administering the Plan shall be borne by the Company and its Subsidiaries.

 

16.7
Titles and Headings. The titles and headings of the Sections in the Plan are for convenience of reference only and,
in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

 

16.8
Securities Law Compliance. With respect to any Participant who is, on the relevant date, obligated to file reports pursuant
to Section 16 of the Exchange Act, transactions pursuant to this Plan are intended to comply with all applicable conditions of Rule 16b-3
or its successors pursuant to the Exchange Act. Notwithstanding any other provision of the Plan, the Committee may impose such conditions
on the exercise of any Award as may be required to satisfy the requirements of Rule 16b-3 or its successors pursuant to the Exchange Act.
To the extent any provision of the Plan or action by the Committee fails to so comply, it shall be void to the extent permitted by law
and voidable as deemed advisable by the Committee.

 

16.9
GOVERNMENT AND OTHER REGULATIONS. The granting of Awards and the issuance of shares and/or cash under the Plan shall
be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges
as may be required. The Company shall be under no obligation to register pursuant to the Securities Act, any of the shares of Stock paid
pursuant to the Plan. If the shares of Stock paid pursuant to the Plan may in certain circumstances be exempt from registration pursuant
to the Securities Act, the Company may restrict the transfer of such shares in such manner as it deems advisable to ensure the availability
of any such exemption. The Committee shall impose such restrictions on any Award as it may deem advisable, including without limitation,
restrictions under applicable federal securities law, under the requirements of the NASDAQ (or the rules of any exchange on which the
Stock is then listed), and under any other blue sky or state securities law applicable to such Award.

 

16.10
Governing Law. The Plan and all Award Agreements shall be construed in accordance with and governed by the laws of
the State of Delaware without regard to the conflict of laws provisions of any jurisdictions. All parties agree to submit to the jurisdiction
of the state and federal courts of Delaware with respect to matters relating to the Plan and the Award Agreements and agree not to raise
or assert the defense that such forum is not convenient for such party.

 

    	16

    	 

     

16.11
Section 409A of the Code.

 

(a) General Compliance.
Some of the Awards that may be granted pursuant to the Plan (including, but not necessarily limited to, Restricted Stock Unit Awards and
Performance Share Awards) may be considered to be “non-qualified deferred compensation” subject to Section 409A of the Code.
If an Award is subject to Section 409A of the Code, the Company intends (but cannot and does not guarantee) that the Award Agreement and
this Plan comply with and meet all of the requirements of Section 409A of the Code or an exception thereto and the Award Agreement shall
include such provisions, in addition to the provisions of this Plan, as may be necessary to assure compliance with Section 409A of the
Code or an exception thereto.

 

(b) Delay for Specified Employees.
If, at the time of a Participant’s Separation from Service, the Company has any Stock which is publicly traded on an established
securities market or otherwise, and if the Participant is considered to be a Specified Employee, to the extent any payment for any Award
is subject to the requirements of Section 409A of the Code and is payable upon the Participant’s Separation from Service, such payment
shall not commence prior to the first business day following the date which is six (6) months after the Participant’s Separation
from Service (or the date of the Participant’s death if earlier than the end of the six (6) month period). Any amounts that would
have been distributed during such six (6) month period will be distributed on the day following the expiration of the six (6) month period.

 

(c) Prohibition on Acceleration
or Deferral. Under no circumstances may the time or schedule of any payment for any Award that is subject to the requirements
of Section 409A of the Code be accelerated or subject to further deferral except as otherwise permitted or required pursuant to regulations
and other guidance issued pursuant to Section 409A of the Code. If the Company fails to make any payment pursuant to the payment provisions
applicable to an Award that is subject to Section 409A of the Code, either intentionally or unintentionally, within the time period specified
in such provisions, but the payment is made within the same calendar year, such payment will be treated as made within the specified time
period. In addition, in the event of a dispute with respect to any payment, such payment may be delayed in accordance with the regulations
and other guidance issued pursuant to Section 409A of the Code.

 

	 	MOTORSPORT GAMEs INC.
	 	 
	 	By:	/s/
    Dmitry Kozko 
	 	Its:	Chief Executive Officer

 

    	17

    	 

     

GLOSSARY

 

(a) “Award”
means any Option, Stock Appreciation Right, Restricted Stock Award, Performance Share Award, or Restricted Stock Unit Award granted to
a Participant under the Plan.

 

(b) “Award Agreement”
means any written agreement, contract, or other instrument or document, including an electronic agreement or document, evidencing an Award,
regardless of whether the Participant’s signature or acknowledgement is required.

 

(c) “Board”
means the Company’s Board of Directors, as constituted from time to time.

 

(d) “Cause”
means and will exist in the following circumstances in which the Participant: (i) is convicted of a felony; (ii) engages in any fraudulent
or other dishonest act to the detriment of the Company; (iii) fails to report for work on a regular basis, except for periods of authorized
absence or bona fide illness; (iv) misappropriates trade secrets, customer lists, or other proprietary information belonging to the Company
for his or her own benefit or for the benefit of a competitor; (v) engages in any willful misconduct designed to harm the Company or its
stockholders; or (vi) fails to perform properly his or her assigned duties. The definition of “Cause” in this Plan shall be
superseded by the definition of “Cause” in any applicable change of control agreement or employment agreement that a Participant
has with the Company.

 

(e) “Change of Control”
means any of the following: (i) a sale, transfer, or other disposition by the Company through a single transaction or a series of transactions
of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then-outstanding
securities to any “Unrelated Person” or “Unrelated Persons” acting in concert with one another; (ii) a sale, transfer,
or other disposition through a single transaction or a series of related transactions of all or substantially all of the assets of the
Company to an Unrelated Person or Unrelated Persons acting in concert with one another; or (iii) any consolidation or merger of the Company
with or into an Unrelated Person, unless immediately after the consolidation or merger the holders of the common stock of the Company
immediately prior to the consolidation or merger are the beneficial owners of securities of the surviving corporation representing at
least fifty percent (50%) of the combined voting power of the surviving corporation’s then outstanding securities. For purposes
of this definition, the term “Person” shall mean and include any individual, partnership, joint venture, association, trust,
corporation, or other entity (including a “group” as referred to in Section 13(d)(3) of the Exchange Act) and the term “Unrelated
Person” shall mean and include any Person other than the Company, or an employee benefit plan of the Company

 

A Change of Control will not
be deemed to have occurred for purposes of the Plan until the transaction (or series of transactions) that would otherwise be considered
a Change of Control closes. The transfer of Stock or assets of the Company in connection with a bankruptcy filing by or against the Company
under Title 11 of the United States Code will not be considered to be a Change of Control for purposes of this Plan. Notwithstanding
the foregoing a Change of Control shall not occur for purposes of this Plan in the case of Awards that are subject to the requirements
of Section 409A of the Code unless such Change of Control constitutes a “change in control event” as defined in Section 409A
of the Code and the regulations thereunder. The definition of “Change of Control” in this Plan shall be superseded by the
definition of “Change of Control” in any applicable change of control agreement or employment agreement that a Participant
has with the Company.

 

    	i

    	 

     

(f) “Code”
means the Internal Revenue Code of 1986, as amended. All references to the Code shall be interpreted to include a reference to any applicable
regulations, rulings or other official guidance promulgated pursuant to such section of the Code.

 

(g) “Committee”
means the Committee identified in Section 4.1.

 

(h) “Company”
means Motorsport Games Inc.

 

(i) “Compensation
Committee” means the Compensation Committee of the Board and shall consist of at least two (2) individuals, each of whom qualify
as: (i) a Non-Employee Director; and (ii) an “independent director” for purposes of the NASDAQ listing standards. The composition
of the Compensation Committee may change from time to time in recognition of, response to, or in anticipation of, changes in applicable
laws, rules, or regulations, including, without limitation, the Code and the NASDAQ listing standards (or the rules of any exchange on
which the Stock is then listed).

 

(j) “Consultant”
means a consultant or advisor that provides bona fide services to the Company or any Subsidiary as an independent contractor and not as
an employee; provided, however, that such person may become a Participant in the Plan only if the Consultant: (i) is a natural person;
and (ii) does not provide services in connection with the offer or sale of the Company’s securities in a capital-raising transaction
and does not promote or maintain a market for the Company’s securities.

 

(k) “Date of Grant”
means the date the Committee approves the Award or a date in the future on which the Committee determines the Award will become effective.

 

(l) “Disability”
means that the Participant qualifies to receive long-term disability payments under the Company’s long-term disability insurance
program, as it may be amended from time to time but, for purposes of any Incentive Stock Option, “Disability” shall have the
meaning ascribed to it in Section 22(e)(3) of the Code. Except in the case of an Incentive Stock Option, the definition of “Disability”
in this Plan shall be superseded by the definition of “Disability” in any applicable change of control agreement or employment
agreement that a Participant has with the Company.

 

(m) “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended. All references to a section of ERISA shall be interpreted to include
a reference to any applicable regulations, rulings or other official guidance promulgated pursuant to such section of ERISA.

 

(n) “Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time. All references to the Exchange Act shall be interpreted to include
a reference to any applicable regulations, rulings or other official guidance promulgated pursuant to such section of the Exchange Act.

 

    	ii

    	 

     

(o)  “Expiration
Date” means the tenth (10th) anniversary of the Original Effective Date.

 

(p) “Fair Market
Value” means, as of any given date, the fair market value of Stock on a particular date determined by such methods or procedures
as may be established from time to time by the Committee. Unless otherwise determined by the Committee, the Fair Market Value of Stock
as of any date shall be the closing price for the Stock as reported on the NASDAQ (or on any national securities exchange on which the
Stock is then listed) for that date or, if no such prices are reported for that date, the average of the high and low trading prices on
the next preceding date for which such prices were reported.

 

(q) “Family Member”
means a Participant’s spouse and any parent, stepparent, grandparent, child, stepchild, or grandchild, including adoptive relationships
or a trust or any other entity in which these persons (or the Participant) have more than fifty percent (50%) of the beneficial interest.

 

(r) “Incentive Stock
Option” means an Option that is intended to meet the requirements of Section 422 of the Code or any successor provision thereto.

 

(s) “Non-Employee
Director” means a member of the Board who qualifies as a “Non-Employee Director” as defined in Rule 16b-3(b)(3) of the
Exchange Act, or any successor definition adopted by the Board.

 

(t) “Non-Qualified
Stock Option” means an Option that is not intended to be an Incentive Stock Option.

 

(u) “Original Effective
Date” means January 12, 2021.

 

(v) “Option”
means a right granted to a Participant under Section 6, to purchase Stock at a specified price during specified time periods. An Option
may be either an Incentive Stock Option or a Non-Qualified Stock Option.

 

(w) “Participant”
means a person who, as a member of the Board, or an employee, officer, or executive of, or Consultant to, the Company or any Subsidiary,
has been granted an Award pursuant to the Plan.

 

(x) “Performance
Share Award” means a right granted to a Participant under Section 9, to receive cash or Stock, the payment of which is contingent
upon achieving certain performance goals established by the Committee.

 

(y) “Plan”
means this Amended and Restated Motorsport Games Inc. 2021 Equity Incentive Plan, as amended from time to time.

 

(z) “Restricted
Stock Award” means Stock granted to a Participant under Section 8 that is subject to certain restrictions and risk of forfeiture
as determined by the Committee.

 

    	iii

    	 

     

(aa) “Restricted
Stock Unit Award” means a right granted to a Participant under Section 8, to receive cash or Stock, the payment of which is subject
to certain restrictions and risk of forfeiture as determined by the Committee.

 

(bb) “Securities
Act” means the Securities Act of 1933, as amended from time to time. All references to the Securities Act shall be interpreted to
include a reference to any applicable regulations, rulings or other official guidance promulgated pursuant to such section of the Securities
Act.

 

(cc) “Separation
from Service” is a term that applies only in the context of an Award that the Company concludes is subject to Section 409A of the
Code and shall have the meaning set forth in Section 409A. Whether a Separation from Service has occurred will be determined based on
all of the facts and circumstances and in accordance with Section 409A of the Code. In the case of a Non-Employee Director, Separation
from Service means that such member has ceased to be a member of the Board. Whether a Consultant has incurred a Separation from Service
will be determined in accordance with Treasury Regulation Section 1.409A-1(h).

 

(dd) “Specified Employee”
means certain officers and highly compensated employees of the Company as defined in Treasury Regulation Section 1.409A-1(i).

 

(ee) “Stock”
means the Class A common stock of the Company and such other securities of the Company that may be substituted for Stock pursuant to Section
10.

 

(ff) “Stock Appreciation
Right” or “SAR” means a right granted to a Participant under Section 7 to receive the appreciation on Stock.

 

(gg) “Subsidiary”
means any corporation or other entity of which a majority of the outstanding voting stock or voting power is beneficially owned directly
or indirectly by the Company.

 

    	ivDocument

Exhibit 10.1
SECOND AMENDMENT TO LOAN DOCUMENTS
THIS SECOND AMENDMENT TO LOAN DOCUMENTS (the “Amendment”), is made and entered into as of November 8, 2022 (the “Second Amendment Effective Date”), by and among (1) Benson Hill, Inc., a Delaware corporation (the “Parent”), Benson Hill Holdings, Inc., a Delaware corporation (“BH Holdings”), BHB Holdings, LLC, a North Carolina limited liability company (“BHB Holdings”), DDB Holdings, Inc., a Delaware corporation “DDB Holdings”), Dakota Dry Bean Inc., a North Dakota corporation (“Dakota Dry Bean”), Benson Hill Ingredients, LLC, a Delaware limited liability company “BHI”), Benson Hill Seeds Holding, Inc., a Delaware corporation (“BHS Holding”), Benson Hill Seeds, Inc., a Delaware corporation (“BHS”), Benson Hill Fresh, LLC, a Delaware limited liability company (“BHF”), J&J Produce, Inc., a Florida corporation (“JJP”), J&J Southern Farms, Inc., a Florida corporation (“JSF”), and Trophy Transport, LLC, a Florida limited liability company (“Trophy Transport”) (Parent and each of BH Holdings, BHB Holdings, DDB Holdings, Dakota Dry Bean, BHI, BHS Holding, BHS, BHF, JJP, JSF, and Trophy Transport are each individually referred to as a “Borrower” and all collectively as the “Borrowers”); (2) Avenue Capital Management II, L.P., a Delaware limited partnership, as administrative agent and collateral agent (the “Agent”); and (3) Avenue Venture Opportunities Fund, L.P., a Delaware limited partnership, Avenue Venture Opportunities Fund II, L.P., a Delaware limited partnership, Avenue Sustainable Solutions Fund, L.P., a Delaware limited partnership, Avenue Global Dislocation Opportunities Fund, L.P., a Delaware limited partnership, and Avenue Global Opportunities Master Fund LP, a Delaware limited partnership (each individually referred to as a “Lender” and all collectively as the “Lenders”);
Recitals:
A.Borrowers (other than BHI), Agent, and Lenders are parties to those certain Loan Documents, dated as of December 29, 2021, including the Loan and Security Agreement, as amended by that certain Joinder and First Amendment to Loan Documents dated June 30, 2022 (as amended from time to time, the “Agreement”) and the Supplement to Loan and Security Agreement (as amended from time to time, the “Supplement”);
B.Benson Hill Fresh Holdings, LLC, a Delaware limited liability company (“BHF Holdings”) was a party to the Loan and Security Agreement, as a “Borrower” therein, but with the consent of Agent was dissolved on March 16, 2022;
C.Pursuant to the Loan and Security Agreement, the Borrowers (other than BHI) and BHF Holdings delivered to the Lenders their Promissory Notes dated December 29, 2021, made payable to the Lenders in the aggregate original principal amount of $80,000,000 (each individually a “Note” and all collectively the “Notes”);
D.Pursuant to the Loan and Security Agreement, the Parent delivered to the Lenders its Stock Purchase Warrants dated December 29, 2021, each exercisable for an aggregate “Applicable Number” (as defined therein) of shares of the Parent’s Common Stock, par value $0.0001 per share (each individually a “Warrant” and all collectively the “Warrant”);
E.Pursuant to a Joinder and First Amendment to Loan Documents made and entered into as of June 30, 2022, among other things, (1) BHI was added and joined as a co-Borrower to 

the Agreement and other Loan Documents, and (2) the Loan Documents were amended; and
F.The parties desire to amend the Loan Documents in accordance with the terms of this Amendment.
Agreement:
NOW, THEREFORE, for and in consideration of the premises, and the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:
1.Definition of Terms.  All capitalized terms contained herein and not otherwise defined shall be defined as provided in the Agreement, as supplemented by the Supplement.
2.Agreement and Supplement Amendments.  The Agreement and Supplement hereby are amended, or amended and restated, as follows:
a.Section 5.10 of the Agreement is amended and restated in its entirety to read as follows: 
5.10    RML Financial Covenant.
(a)  From the Second Amendment Effective Date through March 31, 2023, maintain at all times an RML equal to or greater than four (4) months (the “RML Relief”).  From April 1, 2023, through April 30, 2024 (the “RML Relief Election Period”), maintain at all times an RML equal to or greater than (i) four (4) months, or (ii) six (6) months if the RML Relief is terminated in writing by Borrower.  Thereafter, Borrower shall maintain at all times an RML equal to or greater than six (6) months.
(b)  For each month during the RML Relief Election Period that (i) Parent’s Average Public Market Capitalization over the prior thirty (30) Trading Days is at least Market Cap Threshold 1, and (ii) Borrower’s unrestricted cash balance is at least One Hundred Million Dollars ($100,000,000) when measured on the last day of the prior month, the Final Payment shall increase by ten basis points (10bps) if Borrower has not yet terminated the RML Relief.
As an example, if Borrower elects to terminate the RML Relief such that the RML Relief terminates on May 31, 2023, the Final Payment would increase by twenty basis points (20bps) from ten and 70/100 percent (10.70%) to ten and 90/100 percent (10.90%) (or from fourteen and 20/100 percent (14.20%) to fourteen and 40/100 percent (14.40%) if all or any part of any Loan is outstanding when a Change of Control occurs).
(c)  For each month during the RML Relief Election Period that either (i) Parent’s Average Public Market Capitalization over the prior thirty (30) Trading Days is less than Market Cap Threshold 1, or (ii) Borrower’s unrestricted cash balance is less than One Hundred Million Dollars ($100,000,000) when measured on the last day of the prior month, the Final Payment shall increase by twenty-five basis points (25bps) if Borrower has not yet terminated the RML Relief.
As an example, if Borrower elects to terminate the RML Relief such that the RML Relief terminates on May 31, 2023, the Final Payment would increase by fifty 
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basis points (50bps) from ten and 70/100 percent (10.70%) to eleven and 20/100 percent (11.20%) (or from fourteen and 20/100 percent (14.20%) to fourteen and 70/100 percent (14.70%) if all or any part of any Loan is outstanding when a Change of Control occurs).
b.Article 11 of the Agreement is amended to add the following definitions: 
“RML Relief” shall have the meaning set forth in Section 5.10(a).
“RML Relief Election Period” shall have the meaning set forth in Section 5.10(a).
“Second Amendment Effective Date” means November 8, 2022.
c.“Revolving Indebtedness” as defined in Article 11 of the Agreement is amended and restated in its entirety to read as follows: 
“Revolving Indebtedness” means Indebtedness in favor of other Lenders, subject to a formula-based, borrowing base calculation comprised of cash, accounts receivable and Inventory, not including the BHO Indebtedness, not to exceed the aggregate principal amount of (i) Twenty Million Dollars ($20,000,000) up to and including June 30, 2023, if (x) approved by Agent, (y) Parent’s Average Public Market Capitalization over the prior thirty (30) Trading Days is at least Market Cap Threshold 1 when measured by the date of Borrower’s entry into the Revolving Indebtedness, and (z) Borrower has elected to terminate the RML Relief; and (ii) Forty Million Dollars ($40,000,000) on or after July 1, 2023, if (x) approved by Agent, (y) Parent’s Average Public Market Capitalization over the thirty (30) preceding Trading Days is at least Six Hundred Million Dollars ($600,000,000) when measured by the date of Borrower’s entry into the added Revolving Indebtedness, and (z) Borrower has elected to terminate the RML Relief.  For clarity, Borrower is deemed to have entered into Revolving Indebtedness (or added Revolving Indebtedness) at the time Borrower enters into a credit facility agreement or similar agreement with one or more lenders providing for Revolving Indebtedness (or added Revolving Indebtedness) as described above, and not each time Borrower draws upon the credit facility provided pursuant to such credit facility agreement or similar agreement.
d.Part I of the Supplement is amended to add the following additional definition: 
“SEC” means the United States Securities and Exchange Commission.
e.The definition of “Average Public Market Capitalization” as contained in Part 1 of the Supplement is amended is amended to add the following at the conclusion thereof:
As an example, assuming that Parent had 205,659,767 Outstanding Shares as of August 8, 2022 (as noted on the cover of Parent’s most recent SEC 10-Q filing dated June 30, 2022), that no shares have been cancelled or issued since August 8, 2022, and that on the September 22, 2022 Trading Day the NYSE closing price of the Common Stock was $2.61, then Parent’s Public Market Capitalization as of September 22, 2022 would be $2.61 x 205,659,767 shares = $536,771,992, and Parent’s Average Public Market Capitalization over the prior thirty (30) Trading Days ending on September 22, 2022 would be determined by the average over such period.
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f. “Designated Rate” as defined in Part 1 of the Supplement is amended and restated in its entirety to read as follows:
“Designated Rate” means, for each Growth Capital Loan, a variable rate of interest per annum equal to the sum of (i) the greater of (A) the Prime Rate and (B) three and one-quarters percent (3.25%), plus (ii) six percent (6.00%).  Changes to the Designated Rate based on changes to the Prime Rate shall be effective as of the next scheduled interest payment date immediately following such change.
g.“Final Payment” as defined in Part 1 of the Supplement is amended and restated in its entirety to read as follows:
“Final Payment” means a payment (in addition to and not a substitution for the regular monthly payments of principal plus accrued interest) equal to ten and seventy one hundredth (10.70%) of the original Commitment amount of One Hundred Dollars ($100,000,000); provided that, in the event all of any of part of any Loan is outstanding when a Change of Control occurs, “Final Payment” shall mean a payment (in addition to and not a substitution for the regular monthly payments of principal plus accrued interest) equal to fourteen and twenty one hundredths percent (14.20%) of the original Commitment amount of One Hundred Million Dollars ($100,000,000); provided further that, the Final Payment shall be increased pursuant to Section 5.10(b) and (c) of the Agreement.
h.“Market Cap Threshold 1” as defined in Part 1 of the Supplement is amended and restated in its entirety to read as follows:
“Market Cap Threshold 1” means Parent has maintained an Average Public Market Capitalization of at least Five Hundred Fifty Million and 00/100 Dollars ($550,000,000).
i.“Outstanding Shares” as defined in Part 1 of the Supplement is amended restated in its entirety to read as follows:
“Outstanding Shares” means the shares of capital stock which have been issued and are outstanding within the meaning of the Delaware General Corporation Law, as reflected on the cover of the Company’s most recent SEC 10-K filing or SEC 10-Q filing, which is then adjusted if any shares have since been cancelled or issued.
3.Milestone 2.  Parent hereby represents to Lender that Parent has achieved (i) at least eighty-five percent (85%) of T9M Revenue for the nine (9) months ending September 30, 2022; and (ii) Gross Margin for the nine (9) months ending September 30, 2022, greater than negative one and one-half percent (-1.50%).  Based upon the foregoing representation, Agent hereby confirms that condition (iii) of Milestone 2 has been satisfied, and that Milestone 2 is deemed to have been achieved.
4.Benson Hill Fresh Sale.
a.If Borrower decides to consummate a sale of its Benson Hill Fresh business (the “Benson Hill Fresh Sale”), subject to Agent’s satisfactory review of final documentation of such a sale, Agent agrees to consent to and approve Borrower’s disposition of its Benson Hill Fresh business, so long as (i) a binding purchase agreement is executed on or before February 14, 2023, and closes no later than July 31, 2023, and (ii) the sale generates non-escrowed cash closing proceeds, that are not otherwise subject to any contingencies, of at least the amount set forth on Annex I hereto as the “Minimum 
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Sale Proceeds” (the “Minimum Sale Proceeds”) that are received on or before July 31, 2023.
b.The cash closing proceeds from the Benson Hill Fresh Sale shall be held by Borrower in a restricted, blocked account in favor of Agent (the “Blocked Account”) until a date that is at least sixty (60) days following the date of the closing of the Benson Hill Fresh Sale, and at which time the cash closing proceeds shall be released to Borrower so long as:
i.The RML Relief terminates or expires; and
ii.Parent’s Average Public Market Capitalization over the prior thirty (30) Trading Days is at least Market Cap Threshold 1 when measured on the date of the release of the Blocked Account.
If the conditions set forth in Section 4.b.i. and ii. above have not been satisfied by April 30, 2024, then Agent shall apply the cash closing proceeds held in the Blocked Account toward the prepayment of outstanding principal and any associated prepayment fees due under the Loan. For the avoidance of doubt, in the event the Benson Hill Fresh Sale is consummated in a series of closings, the foregoing cash closing proceeds mechanics shall be applied at each relevant closing, provided that no cash closing proceeds shall be released pursuant to this Section 4(b) unless and until the Minimum Sale Proceeds are received. 
c.All cash closing proceeds held in the Blocked Account shall not be counted towards satisfaction of the RML financial covenant set forth in Section 5.10 of the Agreement unless and until such cash closing proceeds are released to Borrower pursuant to this Section 4.
d.If Borrower consummates the Benson Hill Fresh Sale on or before April 30, 2023, for an amount less than the Minimum Sale Proceeds, then the Minimum Sale Proceeds requirement shall be waived by Agent if Borrower has raised additional capital in an amount no less than the difference between the Minimum Sale Proceeds and the cash closing proceeds actually received from the Benson Hill Fresh Sale by April 30, 2023.  Such additional capital and cash closing proceeds shall be kept in the Blocked Account in an amount not less than the Minimum Sale Proceeds and shall be released not less than sixty (60) days after the closing of the Benson Hill Fresh Sale so long as the conditions set forth in Section 4.b. are satisfied.
5.Consents.  Subject to the conditions set forth on Annex II hereto or in Section 10, Agent (for itself and where applicable for Lenders) hereby consents to and approves the matters described on Annex II hereto.
6.Amendment Fees.
a.As partial consideration for this Amendment, Borrower shall pay to Lenders an amendment fee equal to One Million Five Hundred Thousand Dollars ($1,500,000), which has been fully earned and shall be non-refundable, the receipt of Five Hundred Thousand Dollars ($500,000) towards which Agent hereby confirms, and the One Million Dollar ($1,000,000) balance of which shall be payable to Agent by Borrower on or before December 15, 2022.  Failure to deliver the balance of the amendment fee by December 15, 2022, shall constitute an Event of Default under the Agreement.
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b.Lenders shall not charge an “Amendment Fee” to provide any additional debt to Borrower; provided that the foregoing shall not be construed as a covenant on the part of Lenders to provide any additional debt to Borrower.
7.No Waiver.  No course of dealing on the part of any Lender, nor any failure or delay in the exercise of any right by any Lender, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right.  A Lender’s failure at any time to require strict performance by any Borrower of any provision of the Loan Documents shall not affect any right of any Lender thereafter to demand strict compliance and performance of the Loan Documents.  Any suspension or waiver of a right under the Loan Documents must be in writing signed on behalf of each Lender by an authorized person thereof.
8.Full Force and Effect. The Loan Documents, as amended hereby, shall be and remain in full force and effect in accordance with their respective terms and hereby are ratified and confirmed in all respects.  Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of any Lender under the Loan Documents, as in effect prior to the date hereof.
9.Due Power and Authority.  Each Borrower hereby represents that (a) such Borrower has the power and due authority to execute and deliver this Amendment and to perform its obligations under the Loan Documents, as amended by this Amendment; and (b) the organizational documents of such Borrower delivered to Agent on the Closing Date, and updated pursuant to subsequent deliveries by such Borrower to Agent, remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect.
10.Conditions Precedent. As a condition to the effectiveness of this Amendment, Lenders shall have received, in form and substance reasonably satisfactory to Lenders, the following:
a.this Amendment, duly executed by Borrower;
b.all reasonable Lender expenses incurred through the date of this Amendment, which Borrower shall remit via wire transfer on the date of execution of this Amendment per the instructions set forth on Annex III hereto; and
c.such other documents, and completion of such other matters, as Lender may reasonably deem necessary or appropriate (and Lender’s execution and delivery to Borrower of this Amendment shall constitute confirmation that this condition has been satisfied).
11.Entire Agreement.  The Loan Documents, as amended by this Amendment, (a) represent the entire agreement among the parties with respect to the subject matter hereof, and are intended to be an integration of, and (b) supersede all prior or contemporaneous agreements, conditions, or undertakings between the parties hereto with respect to the subject matter hereof, including without limitation that certain Proposal between the parties dated October 17, 2022.
12.Electronic Signatures and Delivery.  Delivery of an executed counterpart of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of an original, and execution by use of an electronic signature or digital signature shall be valid for all purposes, but all of which together shall constitute one instrument.
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13.Successors and Assigns.  This Amendment shall apply to, inure to the benefit of, and be binding upon the parties hereto and upon their respective legal representatives, successors and permitted assigns, except as otherwise provided herein.
[Signature Page Follows]

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IN WITNESS WHEREOF, this Amendment has been executed by the parties hereto, in duplicate originals, as of the Second Amendment Effective Date.
BORROWERS:

BENSON HILL, INC.

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory

BENSON HILL HOLDINGS, INC.

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory

BHB HOLDINGS, LLC

By:    Benson Hill, Inc.
Its:    Sole Member

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory

DDB HOLDINGS, INC.

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory

DAKOTA DRY BEAN INC.

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory

Signature Page
to
Second Amendment to Loan Documents

BENSON HILL INGREDIENTS LLC

By:    DDB Holdings, Inc.
Its:    Sole Member

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory

BENSON HILL SEEDS HOLDING, INC.

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory

BENSON HILL SEEDS, INC.

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory

BENSON HILL FRESH, LLC

By:    Benson Hill Holdings, Inc.
Its:    Sole Member

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory

J&J PRODUCE, INC.

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory

J&J SOUTHERN FARMS, INC.

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory

Signature Page
to
Second Amendment to Loan Documents

TROPHY TRANSPORT, LLC

By:    J&J Produce, Inc.
Its:    Sole Member

By:    /s/ Dean Freeman
Name:    Dean Freeman
Title:    Authorized Signatory
Signature Page
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Second Amendment to Loan Documents

AGENT:

AVENUE CAPITAL MANAGEMENT II, L.P.

By:    Avenue Capital Management II GenPar, LLC
Its:    General Partner

By:    /s/ Sonia Gardner
Name:    Sonia Gardner
Title:    Member

LENDERS:

AVENUE VENTURE OPPORTUNITIES FUND, L.P.

By:    Avenue Venture Opportunities Partners, LLC
Its:    General Partner

By:    /s/ Sonia Gardner
Name:    Sonia Gardner
Title:    Authorized Signatory

AVENUE VENTURE OPPORTUNITIES FUND II, L.P.

By:    Avenue Venture Opportunities Partners II, LLC
Its:    General Partner

By:    /s/ Sonia Gardner
Name:    Sonia Gardner
Title:    Authorized Signatory

AVENUE SUSTAINABLE SOLUTIONS FUND, L.P.

By:    Avenue Sustainable Solutions Partners, LLC
Its:    General Partner

By:    GL Sustainable Solutions Partners, LLC
Its:    Managing Member

By:    /s/ Sonia Gardner
Name:    Sonia Gardner
Title:    Member

Signature Page
to
Second Amendment to Loan Documents

AVENUE GLOBAL DISLOCATION OPPORTUNITIES FUND, L.P.

By:    Avenue Global Dislocation Opportunities GenPar, LLC
Its:    General Partner

By:    GL Global Dislocation Opportunities Partners, LLC
Its:    Managing Member

By:    /s/ Sonia Gardner
Name:    Sonia Gardner
Title:    Member

AVENUE GLOBAL OPPORTUNITIES MASTER FUND LP

By:    Avenue Global Opportunities GenPar Holdings Ltd
Its:    General Partner

By:    /s/ Sonia Gardner
Name:    Sonia Gardner
Title:    Director
Signature Page
to
Second Amendment to Loan Documents

Annex I
Minimum Sale Proceeds
[Annex I to Second Amendment to Loan Documents]

Annex II
Consents
[Annex II to Second Amendment to Loan Documents]

Annex III
Barnes & Thornburg Wire Instructions
[Annex III to Second Amendment to Loan Documents]

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