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Page 1: Hotbox General 2
Page 2: Hotbox General 2

INTRODUCTION TO HOTBOX SPORTS

• Founded: 2005 and now has 19 employees

• Corporate Presence: New Jersey; New York; Boston; Madrid; St. Croix

• Market Position:  A white label technology provider of patented fantasy gaming software designed for deployment by professional sports leagues, teams, media and telecomm companies, state/government lotteries and gaming institutions to generate high engagement, loyalty and revenue across proprietary digital platforms.

• Patent Protection – U.S. Patent No. 7,699,707 issued April, 2010 and active through 2027 along with others pending. Lottery Game patented through 2031.

• Novel game concept in which users activate players once in a multi-event contest period creating uncertainty similar to fantasy football.

• HBX’s unique, patented process breaks down the week into distinct game periods and allows you to activate a player only once each period, creating uncertainty.

• A path to life-changing payouts ■ REINVENTING FANTASY SPORTS ■ -2-

Page 3: Hotbox General 2

EXECUTIVESTarek Bahou: Founder, Chairman, Chief Executive Officer The inventor of the current intellectual property and founder of HSV, Tarek Bahou works fulltime as its Chairman and Chief Executive Officer. Under Tarek’s leadership, HSV has grown from an idea to an enterprise-level website, which boasts the highest user engagement levels of any competitor in the industry.  Marcel Mamie – Vice ChairmanMarcel Mamie is Vice Chairman of Hotbox Sports, in charge of business development for Europe & Latin America, as well as strategy & finance. As CEO  & Founder of Mamie Capital AG, Switzerland, fundraiser in high tech, he organized and led the last 3 raises of HSV. He and his team, under guidance of Diego Martinez, were responsible for bringing in all European Operators for HSV. 30 years acting as financial advisor in industrial risks, pension planning and asset management, representing multiple insurance and banking institutions, based in US, England and Switzerland. Mr. Mamie currently sits on the Board of Directors for Boomwriter Media Inc., located in Boston, MA. Mr. Mamie graduated from Winterthur Business School, specializing in banking, insurance brokerage and management.

Joseph G. DiLorenzo: Chief Strategic AdvisorJoe DiLorenzo is most known for having worked for more than eighteen years with the Boston Celtics, primarily as Chief Financial Officer or Senior Vice President of Administration, including roles that helped take the Boston Celtics public on the New York Stock Exchange. Joe also held leadership roles with the Boston Garden/Boston Bruins organization for 11 years and was COO or CEO of Plymouth Rock Studios for 5 years and CEO of M/D Group for 7 years.  Terry Lyons: Chief Marketing AdvisorTerry Lyons is widely known in the sports world for his 27 year career helping build the NBA into a globally-recognized sports, business and philanthropic property. The long-time Vice President of the NBA, Lyons organized and managed the NBA’s international communications, public relations and media relations programs and also worked in conjunction with USA Basketball on four Summer Olympics and World Championships, dating back to the 1992 Barcelona Games, where for the first time professional basketball players such as Larry Bird, Magic Johnson and Michael Jordan were allowed to play and win the Gold Medal as part of the Dream Team.  Don Casey: Vice President of Business DevelopmentCoach Casey’s on-court basketball resume is extensive and is highlighted by stints as head coach of the NBA’s Los Angeles Clippers and New Jersey Nets, and long-time assistant coach of the Boston Celtics. Don Casey is best known for his implementation of zone defenses and is the brainchild of the Temple Zone, which is now utilized at all levels of basketball. His book “Own the Zone” is considered a coaches bible to not only implement a zone defense but also beating it.

■ REINVENTING FANTASY SPORTS ■ -3-

Page 4: Hotbox General 2

DAILY GAMES v. HOTBOX Fan Duel with recent raise of ($70m) and Draft Kings ($41m) appears to be needed to

raise capital to pay for Promotion and Mass-advertising to consumers. HBX model focuses on media company, government lotteries and potential league/team partnering w/ revenue share element!

Small daily payouts v. life-changing payouts!

Daily Games = B2C v. Hotbox Sports = primarily B2B

Daily game loyalty with so many similar games v. patented, different, more-engaging HBX game!

HBX works WITH partners to harness their brand and marketing power which means: - targeted, low cost, effective marketing and social media reach - near zero cost of user acquisition for HBX v. Daily Game advertising - white-labeled approach to have the partners promote their own site, not HBX

Daily Games currently not relevant in international markets

A huge differentiator with HSV versus other gaming is the margin or rake, which generally runs below 5%. Because of the insurance mitigation, the rake generally runs over 30% for most of HSV entry-fee based games.

HBX can bring back Intellectual Property rights “back” to Leagues (if they partner)

■ REINVENTING FANTASY SPORTS ■ -4-

Page 5: Hotbox General 2

COMPELLING DEMOGRAPHICSPLAYERS

• 80% male

• 51.5% Not Married

• Average Age: 34

• College Degree or More: 78.1%

• Years in Fantasy Sports: 9.51

• Hours Consuming Sports per week: 17.89

• Hours Consuming Fantasy per week: 8.67

• Favorite Fantasy Sport: Football (69.4%)

• Pay League Fee: 46.9%

INDUSTRY Per US

• League Fees $52 $1.71B

• Transaction Fees $8 $262M

• Website Hosting Fees $9 $290M

• Website Prize Fees $7 $230M

• Information Material $20 $656M

• Challenge Games $15 $492M

-5- ■ REINVENTING FANTASY SPORTS ■

Page 6: Hotbox General 2

PRODUCT OFFERINGSLEAGUE STYLES

• Free to Play - Team and bracket

games

• Cash Entry Fee Pick’em/Lottery

based (Cash Prizes)

• Tier Based – 50 players broken out into

groups of 5 in each of 10 Tiers.

Participants must choose one player from

each of the 10 Tiers, then choose which

night he is going to perform best

(statistically). The number of Tiers and

Players can be adjusted between 5 and

10.

• Pick’em – 50 players in the pool.

Participants must choose players and

which night each is going to perform best

(statistically). The number of players can

be adjusted between 5 and 10 for

differing payouts.

• Commissioner

TEAM-BASED CONTEST Fans use their favorite

teams to compete against other fans

■ REINVENTING FANTASY SPORTS ■ -6-

Page 7: Hotbox General 2

HOW IT WORKS

Hotbox Sports creates an “American” Fantasy Football Environment for Basketball, Hockey, Soccer & Baseball (and others).

STEP 1 Choose your player

STEP 2 Choose which game you think he will play best in

STEP 3

Your player’s stats only count for the game you

started him in

-7- ■ REINVENTING FANTASY SPORTS ■

Page 8: Hotbox General 2

ENTRY FEE/LOTTERY GAME PRODUCTS

Hotbox can offer an entry-fee game that is not based on a random drawing, but a game in which the participant controls his/her own fate, based on skill. It is that perception of controlling one’s fate and the simplicity of the game, that will be the lynch pin of the Hotbox lottery game success.

• Depending on game variations, participants select a starting lineup from a list of 12 to 50 players on a team or in a professional league.

• You pick 5-10 players

• Each player selected can only be used once over a rolling 3 event-game period. Therefore, more emphasis is placed on “determining” which game is most favorable to start a player.

• Jackpots per drawing could range from $100,000 - $1,000,000 or more, depending on the odds, the price of the entry fee and the number of players chosen within the rules of the respective games.

Example: Each participant must pick which game over the next three games he/she believes Lebron James will produce the most fantasy points. If the participant picks the correct night for each player, they win. The participant needs to be correct for all players selected in order to win the grand prize.

■ REINVENTING FANTASY SPORTS ■ -8-

Page 9: Hotbox General 2

NOT CONSIDERED GAMBLING (IN THE UNITED STATES)

The Unlawful Internet Gambling Enforcement Act (“UIGEA”), the Professional and Amateur Sports Protection Act (“PASPA”), the Wire Act, and the federal Prohibition on Illegal Gambling all address “betting or wagering” on sporting events. The UIGEA, however, contains a specific exemption for fantasy sports contests fulfilling certain conditions:

1. Participants pay a one-time, non-refundable entry fee in exchange for the experience of participating in the Promotion

2. All prizes and awards offered to winning participants must be established and made known to the participants in advance of the contest, and the value of those prizes and awards may not depend on the number of participants or the amount of any fees paid by those participants.

3. All winning outcomes must reflect the relative knowledge and skill of the participants and be determined predominantly by accumulated statistical results of the performance of individual athletes in multiple real-world sporting events.

4. Lastly, none of the results may be based on the outcome of the game, including the score, point-spread. The performance or performances of any single real-world team or any combination of such teams are not the deciding factors in our product.

Legal opinions available by Drinker Biddle and Michael and Carroll, PC

-9- ■ REINVENTING FANTASY SPORTS ■

Page 10: Hotbox General 2

RISK MITIGATION

Lloyd’s insurers provide coverage for well over $100,000,000 prizes. The premiums vary by sport, the odds, the amount of entry fee, the prizes and other components determined by the actuarial.

Certifies gaming products based on the testing, inspection and compliance with GLI Standards and applicable requirements of circa 450 gaming jurisdictions around the world.

Contracted as the payment custodian, handling all moneytransfers and transactions and able to take i-gaming transactions that gambling institutions are precluded from doing now.

Geo Blocking Capabilities

Age Verification

■ REINVENTING FANTASY SPORTS ■ -10-

Page 11: Hotbox General 2

RULES OF THE CONTESTExample: Select 10 different players over a 3-game play period.

You pick one of three games you want each player to start. The scoring examples below is similar, appropriate dynamic scoring for other sports.

Hockey

Point: 1 pointRebound: 1 pointAssist: 1 pointSteal: 1.5 pointsBlock: 1.5pointsDouble Double: 5 pointsTriple Double: 15 pointsQuadruple Double: 25 points20+ Rebounds: 5 points 15+ Assists: 5 points 40+ Points: 5 points 50+ Points: 10 points1 Minute: .1 points

Basketball

DefensemenTime on the ice: 0.01point per minute

Shot: 1 point

Goal: 5 points

Assist: 3 points

Shorthanded Goal: 2.5

points

Game Winning Goal: 3

points

Penalty Minutes: -1 pointper minute

2 Goal Game: 5 points

Hat Trick: 15 points

Plus Minus: Game Total

Forwards Time on the ice: 0.01point per minuteShot: 0.5 pointGoal: 5 pointsAssist: 3 points Shorthanded Goal: 2.5 pointsGame Winning Goal: 3 pointsPenalty Minutes: -1 point per minute2 Goal Game: 5 points Hat Trick: 15 points

GoaliesTime on the ice: 0.01 point per minuteSave: 0.4 pointGoals Against: -3 pointsWin: 5 pointsLoss: -3 pointsShut Out: 5 points

-11- ■ REINVENTING FANTASY SPORTS ■

Page 12: Hotbox General 2

FANTASY CHALLENGE DEMO

Banner Integration

Player Display Integration

MVP Player Integration

■ REINVENTING FANTASY SPORTS ■ -12-

Facebook “Like” Button

Page 13: Hotbox General 2

CUSTOMIZABLE TRIGGERA customizable trigger is built so

sponsors can run promotions or current offers. A “Page Takeover” box will

appear when a player sets their Fantasy Challenge Lineup.

■ REINVENTING FANTASY SPORTS ■ -13-

“Set Lineup” email reminders are sent every game period with the sponsorship

banner included.

E-BLASTS

Page 14: Hotbox General 2

COMMISSIONER LEAGUES

■ REINVENTING FANTASY SPORTS ■ -14-

LOTTERY GAME VISUALS

Page 15: Hotbox General 2

NEW JERSEY DEVILS DEMO

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"Fantasy sports plays an important role in a fan’s experience, and we wanted to bring Devils fans a game where they could focus on their favorite players and their favorite team,” said Scott O’Neil, CEO of the New Jersey Devils and Prudential Center. “Our collaboration with Hotbox Sports, offering both free-to-play games and this first-of-its-kind entry-fee game, will ensure Devils fans have an unrivaled fantasy game experience.”

Devils Hotnights Interactive Demo

Page 16: Hotbox General 2

ACTIVE DEMOS El reto de as (PRISA/AS.com)

■ REINVENTING FANTASY SPORTS ■ -16-

Page 17: Hotbox General 2

EXAMPLES OF PARTNERS

■ REINVENTING FANTASY SPORTS ■ -17-

Page 18: Hotbox General 2

REAL MADRID

Real Madrid is the Number 1 followed sports team in the world. Negotiating along with Real Madrid for a gaming partner. Integration of API’s are underway.  

RECENT PARTNERS

MARCA is a Spanish national daily sport newspaper owned by Unidad Editorial. The newspaper focuses primarily on futbol, in particular the day-to-day activities of Real Madrid. It has a daily readership of over 2,500,000, the highest in Spain for a daily newspaper, and more than half of sports readership. They also own 24-hour/day sports radio station, Radio Marca and the TV channel MARCA TV.

Mediatech Solutions is the operator that runs Marca sports betting platform. Media Tech will approach all their operators to offer an arrangement similar to MARCA, so far one of these, Mediaset, has opted in and will launch as soon as GLI approval

-18- ■ REINVENTING FANTASY SPORTS ■

Xbox terminal will allow you to see Hotbox fantasy statistics, through a sports ticker, on the same screen with your favorite TV show or sporting event. Hotbox wants to touch the user on TVs, phones, PCs or tablets.

Page 19: Hotbox General 2

PRISA is the world’s leading Spanish and Portuguese-language business group in the fields of information, entertainment and education. Present in 22 countries, it reaches more than 52 million users through its global brands. With over 250 web sites, visited by 36 million unique monthly users, it offers products and services tailored to the consumer habits of users through mobile phones, iPads, eBooks, PSP consoles, and all kinds of mobile devices.

RECENT PARTNERS2

Terra is a global digital media company and content producer with a presence in 19 countries, including the United States where it serves the growing Hispanic community. Focusing on lifestyle, entertainment, sports and news, Terra creates an interactive user experience for millions of U.S. Hispanics and provides solutions for advertisers seeking exposure among this key demographic. In Latin America, Terra is the region’s leading Internet company, with 100 million unique visitors per month. Telefonica, S.A. is a Spanish broadband and telecommunications provider with operations in Europe, Asia, North America and South America,. Operating globally, it is the sixth-largest mobile network provider in the world.

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Page 20: Hotbox General 2

Golazzos is an award-winning social gaming and betting platform for soccer fans in a gamified environment. Golazzos recently achieved 1st Prize at the Endevour Colombia Start-Up Competition Nov 2013 as "Best Start-Up", Best Product at the Movi-Forum, MoviFest in Miami, Fl and was selected by Apps.co, the Colombian government accelerator program, to be part of an acceleration process at www.hubbog, one of the leading accelerators in Colombia.

RECENT PARTNERS3

■ REINVENTING FANTASY SPORTS ■ -20-

Mediaset S.p.A., is an Italian-based mass media company that is the largest commercial broadcaster in the country. The company currently has three main television production centers, in Segrate, Cologno Monzese and Rome. Due to their proximity to (or encirclement by) Italy, Albania, Croatia, Switzerland, Malta, San Marino, the Vatican City and Slovenia also receive Mediaset broadcasts. In addition to its domestic television interests, Mediaset also operates a series of news, entertainment and sport websites; holds 50.1% of the Spanish broadcasting firm Mediaset España Comunicación; owns the film production company Medusa Film; and heads a consortium which owns the television production house Endemol.

,

Suertia is one of the fastest growing sport books in Spain.

Page 21: Hotbox General 2

RECENT PARTNERS4

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Luckia, a division of Egasa, is an off-line and on-line gaming experience allowing users to access games from a home computer, bar or cafe, one of their gaming arcades or even from the street on a mobile device. Egasa continues its international expansion process, with operations in countries such as Spain, Chile, Colombia, Peru, Mexico, Panama and Croatia.

Betware/Novomatic has been a pioneer in the Internet gaming market since 1996, developing interactive solutions for licensed gaming operators. Operating over 1,400 gaming facilities worldwide, NOVOMATIC is the undisputed market leader in Europe for electronic casino operations and one of the largest gaming technology companies in the world with over 30 years of experience.

Betware’s core product is a flexible and open Gaming Platform that allows lotteries and gaming operators to implement best-of-breed games, services and content from vendors of their choice. Betware operates the following lotteries: Spain, Finland, Belgium, United Kingdom, Iceland, Brazil, Columbia, Chile, British Columbia, Quebec.

RECORD is a Mexican version of Spanish newspaper Marca , which is distributed daily covering various sports as well as website and 24 hour a day sports and entertainment radio station.

Page 22: Hotbox General 2

COMPUTER AND TABLET INTEGRATION

1. A simple web page on your site that includes an iframe to our page (we will provide you with all the code for the page), or

IFRAME EXAMPLEo To get it working on your site, simply create a

web page with your header and footer, and add the following line of code: <iframe src='http://www.hotboxsports.com' frameborder='no' style='width:100%; height:100%;'></iframe>

I-Frame Portal Finished Product

-22- ■ REINVENTING FANTASY SPORTS ■

2. Adding a line to your site's .htaccess file (server-side configuration file) telling your server to show our content on a designated url (we will provide the line to add)

HTACCESS EXAMPLEo RewriteRule ^hotboxsports/?$

http://www.hotboxsports.com/ [P]o Under the "RewriteEngine on" line in their .htaccess file,

and send us the link.o What this should do is have

http://www.YOURWEBSITE.com/hotboxsports show the http://www.hotboxsports.com content

There are two possible routes that you can take to integrate our game on your site either via an iframe or HTaccess:

Page 23: Hotbox General 2

PHONE AND APP INTEGRATION

1. The game is not resource-intensive, so to

keep things simple, the app will show the

same site as the computer and tablet.

2. The app developer needs only to drop a

standard browser control in the app to show

the same URL as the computer and tablet

use.

3. Adjustments can be made to create a look

more fitting for a tablet or mobile device, if

necessary.

■ REINVENTING FANTASY SPORTS ■

FANTASY CHALLENGE

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Page 24: Hotbox General 2

CONTACTS This Overview has been prepared by Hotbox Sports (“HBX”) solely for informational and discussion purposes only. Nothing contained herein shall be deemed: (1) a commitment, undertaking or agreement of any kind on the part of HBX or any of its affiliates. By accepting this document, each recipient acknowledges and agrees that all of the information contained herein is highly confidential. Each recipient further agrees that it will hold the information contained in this document and the transactions contemplated hereby in confidence, and it will not copy, reproduce or distribute this document in whole or in part, or disclose its content to anyone without HBX’s prior written consent, other than to persons such recipient has retained to advise it in connection with a potential transaction.

By accepting delivery of this document, you expressly agree to the foregoing and expressly agree to maintain the disclosed information contained in this document in confidence. If a recipient does not wish to pursue this matter, it agrees that it will return this document to HBX as soon as practicable, together with any other materials relating to a transaction that the recipient may have received from HBX or any of its affiliates, agents or representatives, as specified.

Please direct all inquiries to any of the following individuals:

Tarek BahouCEO

Hotbox Sports

[email protected]

Mobile (201) 694-6753

Terry LyonsChief Marketing Officer

Hotbox Sports

[email protected]

Mobile (917) 613-4292

Joseph G. DiLorenzo Chief Strategic Officer

Hotbox Sports

[email protected]

Mobile (617) 650-2522

■ REINVENTING FANTASY SPORTS ■ -24-