Document:

exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”), by and between Global Cash Access, Inc., a
Delaware corporation (the “Company”) and wholly-owned subsidiary of Global Cash Access Holdings,
Inc., a Delaware corporation (“Holdings”), and Kathryn S. Lever (“Executive”), is made as of
September 12, 2005 (the “Effective Date”).

R E C I T A L S

     A. The Company desires assurance of the association and services of Executive in order to
retain Executive’s experience, skills, abilities, background and knowledge, and is willing to
engage Executive’s services on the terms and conditions set forth in this Agreement.

     B. Executive desires to be in the employ of the Company, and is willing to accept such
employment on the terms and conditions set forth in this Agreement.

     C. Company and Executive wish to enter into an employment relationship with a written
employment agreement intended to supersede all other written and oral representations regarding
Executive’s employment with Company.

A G R E E M E N T

     NOW, THEREFORE, based on the foregoing recitals and in consideration of the commitments set
forth below, Executive and the Company agree as follows:

     1. Position, Duties, Responsibilities

          1.1. Position. The Company hereby employs Executive to render services to the Company
in the position of Executive Vice President and General Counsel, reporting directly to the Chief
Executive Officer of the Company, for the period commencing on the Effective Date and ending on the
third anniversary of the Effective Date (the “Term”). The duties of this position shall include
such duties and responsibilities as are reasonably assigned to Executive by the Chief Executive
Officer, including but not limited to those customarily performed by general counsels of similarly
situated corporations. Executive agrees to serve in a similar capacity for the benefit of Holdings
and any of the Company’s direct or indirect, wholly-owned or partially-owned subsidiaries or
Holdings’ affiliates. Additionally, Executive shall serve in such other capacity or capacities as
the Chief Executive Officer may from time to time reasonably and
lawfully prescribe. During her employment by the Company,
Executive shall, subject to Section 1.2, devote her full energies, interest, abilities and
productive time to the proper and efficient performance of her duties under this Agreement.

          1.2. Other Activities. Except upon the prior written consent of the Chief Executive
Officer of the Company, Executive will not (i) accept any other employment, or (ii) engage,
directly or indirectly, in any other business activity (whether or not pursued for pecuniary
advantage) that is or may be in conflict with, or that might place Executive in a conflicting
position to that of, the Company. Notwithstanding the foregoing, Executive shall be

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permitted to engage in occasional professional or charitable activities outside the scope of
her employment with the Company so long as such activities (A) do not conflict with the actual or
proposed business of the Company or any of its subsidiaries or affiliates, and (B) do not affect
the performance of her duties hereunder.

          1.3. Proprietary Information. Executive recognizes that her employment with the
Company will involve contact with information of substantial value to the Company, which is not
generally known in the trade, and which gives the Company an advantage over its competitors who do
not know or use such information. As a condition precedent to Executive’s employment by the
Company, Executive agrees to execute and deliver to the Company, concurrent with her execution and
delivery of this Agreement, a copy of the “Employee Proprietary Information and Inventions
Agreement” attached hereto as Exhibit A.

     2. Compensation of Executive

          2.1. Base Salary. In consideration of the services to be rendered under this
Agreement, while employed by the Company, the Company shall pay Executive an initial base annual
salary of two hundred twenty thousand dollars ($220,000), less standard deductions and
withholdings, payable in regular periodic payments in accordance with Company payroll policy. Such
salary shall be prorated for any partial month of employment on the basis of a thirty (30) day
fiscal month. Such base salary shall be subject to annual review by the Board of Directors in
consultation with the Chief Executive Officer.

          2.2. Bonus. Executive will be eligible to receive an annual bonus of fifty percent
(50%) of her then-current base salary (the “Target Bonus”), the exact amount of such bonus to be
determined by the Board of Directors in consultation with the Chief Executive Officer based upon
Executive achieving certain performance criteria and the Company achieving specific goals, in each
case to be determined by the Board of Directors in consultation with the Chief Executive Officer.
Any such bonus shall be payable after the end of each fiscal year, and shall prorated for partial
fiscal years. In addition, Executive shall be eligible for such additional bonuses as may be
awarded by the Board of Directors in its sole discretion from time to time in consultation with the
Chief Executive Officer.

          2.3. Stock Option. Upon the commencement of Executive’s employment, Executive will be
granted a stock option pursuant to Holdings’ 2005 Stock Incentive Plan (the “Stock Option Plan”) to
purchase 75,000 shares of Holdings’ Class A Common Stock pursuant to a Stock Option Agreement to be
entered into by and between Executive and Holdings in substantially the form attached hereto as
Exhibit B (the “Stock Option Agreement”).

          2.4. Benefits. Executive shall be entitled to participate in the Company’s group
medical, dental, life insurance, 401(k), deferred compensation or other benefit plans and programs
on the same terms and conditions as other members of the Company’s senior executive management.
Executive shall be provided such perquisites of employment, including four (4) weeks of paid
vacation per year, and all paid holidays and sick leave as are provided to all other members of the
Company’s senior executive management. Executive shall be entitled to reimbursement of all
reasonable expenses incurred by Executive in the performance of her duties

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hereunder, in accordance with the policies and procedures established by the Company from time
to time, and as may be amended from time to time.

          2.5. Signing Bonus; Reimbursement Bonus; H1-B Expenses. Upon the commencement of
Executive’s employment, the Company shall pay to Executive a one-time signing bonus of fifty
thousand dollars ($50,000). Upon the commencement of Executive’s employment, the Company shall pay
to the law firm of Schreck Brignone in Las Vegas, Nevada, a sum of no
more than two thousand dollars ($2,000) for certain costs owed by Executive
to her former employer. Upon the commencement of Executive’s employment, the Company shall
directly pay, or reimburse Executive for the payment of, up to three thousand five hundred dollars
($3,500) of costs and expenses associated with the novation of Executive’s existing H1-B visa to
the Company.

     3. Employment At Will

     Company or Executive may terminate Executive’s employment with Company at any time for any
reason, including no reason at all, notwithstanding anything to the contrary contained in or
arising from any statements, policies, or practices of Company relating to the employment,
discipline, or termination of its employees. This at-will employment relationship cannot be
changed except in writing signed by a duly authorized officer of the Company other than Executive.
This Section 3 shall survive any termination or expiration of this Agreement.

     4. Termination of Employment

          4.1. Termination by Executive. Executive may terminate her employment upon notice to
the Company. In the event that Executive elects to terminate her employment other than for Good
Reason (as defined below), the Company shall pay Executive all base salary due and owing and all
other accrued but unpaid benefits (e.g., accrued vacation) through the last day actually worked and
thereafter the Company’s obligations under this Agreement shall terminate.

          4.2. Termination by the Company for Cause. In the event that the Company terminates
Executive’s employment for Cause, the Company shall pay Executive all base salary due and owing and
all other accrued but unpaid benefits (e.g., accrued vacation) through the last day actually worked
and thereafter the Company’s obligations under this Agreement shall terminate. For the purposes of
this Agreement, termination shall be for “Cause” if (i) Executive refuses or fails to act in
accordance with any lawful order or instruction of the Chief Executive Officer, and such refusal or
failure to act has not been cured within thirty (30) days of notice of such disobedience, (ii)
Executive fails to devote reasonable attention and time during normal business hours to the
business affairs of the Company or Executive is reasonably determined by the Board of Directors to
have been unfit (e.g., denied any license, permit or qualification required by any gaming regulator
or found unsuitable by any gaming regulator) (other than as a result of an Incapacity), unavailable
for service (other than as a result of an Incapacity) or grossly negligent in connection with the
performance of her duties on behalf of the Company, which unfitness, unavailability or gross
negligence has not been cured within thirty

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(30) days of notice of the same; (iii) Executive is reasonably determined by the Board of
Directors to have committed a material act of dishonesty or willful misconduct or to have acted in
bad faith to the material detriment of the Company in connection with the performance of her duties
on behalf of the Company; (iv) Executive is convicted of a felony or other crime involving
dishonesty, breach of trust, moral turpitude or physical harm to any person, or (v) Executive
materially breaches any agreement with the Company which breach has not been cured within thirty
(30) days notice of the same. For purposes of this Agreement, the term “without Cause” shall mean
termination of Executive’s employment for reasons other than for “Cause.”

          4.3. Termination by the Company without Cause or Termination by Executive for Good
Reason. In the event that the Company terminates Executive’s employment without Cause or
Executive terminates her employment for Good Reason, the Company shall pay Executive all base
salary due and owing and all other accrued but unpaid benefits (e.g., accrued vacation) through the
last day actually worked, and Executive shall be entitled to receive the severance payments and
benefits set forth below in this Section 4.3; provided, however, that such severance and benefits
are conditioned on Executive’s execution and non-revocation of a release agreement, the form of
which is attached hereto as Exhibit C, and thereafter the Company’s obligations under this
Agreement shall terminate. For the purposes of this Agreement, termination shall be for “Good
Reason” if (i) there is a material diminution of Executive’s responsibilities with the Company, or
a material change in the Executive’s reporting responsibilities or title, in each case without
Executive’s consent; (ii) there is a reduction by the Company in the Executive’s annual base salary
then in effect without Executive’s consent; or (iii) Executive’s principal work location is
relocated outside of the Las Vegas, Nevada metropolitan area without Executive’s consent.
Executive agrees that she may be required to travel from time to time as required by the Company’s
business and that such travel shall not constitute grounds for Executive to terminate her
employment for Good Reason.

               4.3.1. Pro Rata Target Bonus for Current Year. Within ten (10) days of the
termination of Executive’s employment, the Company shall pay to Executive, in a single lump-sum
payment, subject to standard deductions and withholdings, a bonus in the amount of fifty percent
(50%) of her then-current base salary, pro rated based on the number of days actually elapsed
through the date of termination in the year in which such termination occurs.

               4.3.2. Base Salary Continuation. The Company shall continue to pay to Executive her
then-current base annual salary for a period of twelve (12) months following her termination. Such
salary continuation shall be subject to standard deductions and withholdings and shall be payable
in regular periodic payments in accordance with Company payroll policy. The Company may
discontinue such salary continuation in the event that Executive breaches any of the provisions of
Sections 6 or 7.

               4.3.3. Target Bonus on Base Salary Continuation. The Company shall pay to Executive,
subject to standard deductions and withholdings, a bonus in the amount of fifty percent (50%) of
her then-current base salary, payable in equal installments concurrent with the salary continuation
payments pursuant to Section 4.3.2.

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               4.3.4. Group Medical Coverage. The Company shall provide the Executive with continued
coverage for the remainder of the Term under the Company’s group health insurance plans in effect
upon termination of Executive’s employment without Cause or for Good Reason to the extent permitted
under the terms of such plans then in effect, at no cost to Executive. If such continued coverage
is not permitted under the terms of such plans, then the Company shall, subject to Executive making
an election under the Federal COBRA law within the time prescribed by law, reimburse Executive for
her payment of premiums for such benefits for the remainder of the Term. If COBRA or similar
benefits are not available by law during any portion of the remainder of the Term, then the Company
shall pay Executive each month during which COBRA or similar benefits are not available by law an
amount equal to the premium paid by Executive for the last month during which such COBRA or similar
benefits were available.

          4.4. Termination for Incapacity. In the event that Executive suffers an Incapacity
during the Term, the Company may elect to terminate Executive’s employment pursuant to this Section
4.4. In such event, the Company shall pay Executive all base salary due and owing and all other
accrued but unpaid benefits (e.g., accrued vacation) through the date on which an Incapacity is
determined to exist (the “Determination Date”). In addition, within ten (10) days of such
termination of Executive’s employment, the Company shall pay to Executive, in a single lump-sum
payment, subject to standard deductions and withholdings, a bonus in the amount of fifty percent
(50%) of her then-current base salary, pro rated based on the number of days through the
Determination Date in the year in which such termination occurs. Thereafter the Company’s
obligations under this Agreement shall terminate; provided, however, that nothing contained in this
Agreement shall limit Executive’s rights to payments or other benefits under any long-term
disability plans of the Company in which Executive participates, if any. For the purposes of this
Agreement, Executive shall be deemed to have suffered an “Incapacity” if Executive shall, due to
illness or mental or physical incapacity, be unable to perform the duties and responsibilities
required to be performed by her on behalf of the Company for a period of at least one hundred
eighty (180) days.

          4.5. Termination upon Death. In the event that Executive dies during the Term,
Executive’s employment shall be deemed to have terminated upon the date of death. In such event,
the Company shall pay Executive’s estate all base salary due and owing and all other accrued but
unpaid benefits (e.g., accrued vacation) through the date of death. In addition, within ten (10)
days of such termination of Executive’s employment, the Company shall pay to Executive’s estate, in
a single lump-sum payment, subject to standard deductions and withholdings, a bonus in the amount
of fifty percent (50%) of her then-current base salary, pro rated based on the number of days
actually elapsed during the year in which such termination occurs. Thereafter the Company’s
obligations under this Agreement shall terminate; provided, however, that nothing contained in this
Agreement shall limit Executive’s estate’s or beneficiaries’ rights to payments or other benefits
under any life insurance plan or policy in which Executive participates or with respect to which
Executive has designated a beneficiary, if any.

          4.6. No Other Compensation or Benefits. Executive acknowledges that except as
expressly provided in this Agreement, she will not be entitled to any additional compensation,
severance payments or benefits after the termination of her employment.

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     5. Termination Obligations

          5.1. Return of Company’s Property. Without in any way limiting Executive’s
obligations and the Company’s rights under the Employee Proprietary Information and Inventions
Agreement described in Section 1.3, Executive hereby acknowledges and agrees that all books,
manuals, records, reports, notes, contracts, lists, spreadsheets and other documents or materials,
or copies thereof, and equipment furnished to or prepared by Executive in the course of or incident
to Executive’s employment, belong to Company and shall be promptly returned to Company upon
termination of Executive’s employment.

          5.2. Cooperation in Pending Work. Following any termination of Executive’s
employment, Executive shall, at the Company’s request, reasonably cooperate with the Company in all
matters relating to the winding up of pending work on behalf of the Company and the orderly
transfer of work to other employees of the Company. Executive shall also cooperate, at the
Company’s request, in the defense of any action brought by any third party against the Company that
relates in any way to Executive’s acts or omissions while employed by the Company. In
consideration of Executive’s cooperation under this Section 5.2, the Company shall reimburse
Executive for her reasonable out-of-pocket costs incurred to cooperate and the Company shall pay
Executive an hourly consulting fee equal to the hourly rate that results from dividing her
then-current base annual salary by two thousand eighty (2,080).

          5.3. Resignation. Upon the termination of Executive’s employment for any reason,
Executive shall be deemed to have resigned from all offices and directorships then held with the
Company, Holdings or any of their respective subsidiaries or affiliates. Executive agrees to
execute and delivery such documents or instruments as are reasonably requested by the Company,
Holdings or any such subsidiary or affiliate to evidence such resignations.

          5.4. Survival. The representations and warranties contained herein and Executive’s
obligations under Sections 5, 6, 7 and 8 and under the Employee Proprietary Information and
Inventions Agreement shall survive termination of Executive’s employment and the expiration of this
Agreement.

     6. Restrictions on Competition after Termination.

          6.1. Reasons for Restrictions. Executive acknowledges that the nature of the
Company’s business is such that it would be extremely difficult for Executive to honor and comply
with Executive’s obligation under the Employee Proprietary and Inventions Agreement described in
Section 1.3 to keep secret and confidential the Company’s trade secrets if Executive were to become
employed by or substantially interested in the business of a competitor of the Company soon
following the termination of Executive’s employment with the Company, and it would also be
extremely difficult to determine in any reasonably available forum the extent to which Executive
was or was not complying with Executive’s obligations under such circumstances.

          6.2. Duration of Restriction. In consideration for the severance payments and
benefits under Section 4, Executive agrees that during the Noncompete Term, Executive will

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not directly or indirectly engage in (whether as an employee, consultant, proprietor, partner,
director or otherwise), or have any ownership interest in, or participate in the financing,
operation, management or control of, any person, firm, corporation or business that engages in any
line of business in which the Company engages at the time of such termination, in the United
States, Canada, the United Kingdom or such other countries in which the Company conducts business
at the time of such termination (“Restricted Territory”). For purposes of this Agreement, the
“Noncompete Term” shall be the period of two (2) years after the termination of Executive’s
employment hereunder. The parties agree that ownership of no more than 1% of the outstanding
voting stock of a publicly-traded corporation or other entity shall not constitute a violation of
this provision. The parties intend that the covenants contained in this section shall be construed
as a series of separate covenants, one for each county, city, state and other political subdivision
of the Restricted Territory. Except for geographic coverage, each such separate covenant shall be
deemed identical in terms to the covenant contained in this section. If, in any judicial
proceeding, a court shall refuse to enforce any of the separate covenants (or any part thereof)
deemed included in this section, then such unenforceable covenant (or such part) shall be deemed
eliminated from this Agreement for the purpose of those proceedings to the extent necessary to
permit the remaining separate covenants (or portions thereof) to be enforced by such court. It is
the intent of the parties that the covenants set forth herein be enforced to the maximum degree
permitted by applicable law.

     7. Restrictions on Solicitation after Termination.

     For a period of one (1) year following the termination of Executive’s employment hereunder for
any reason, Executive shall not, without the prior written consent of the Company, directly or
indirectly, as a sole proprietor, member of a partnership, stockholder or investor, officer or
director of a corporation, or as an executive, associate, consultant, independent contractor or
agent of any person, partnership, corporation or other business organization or entity other than
the Company solicit or endeavor to entice away from the Company any person or entity who is, or,
during the then most recent three-month period, was, employed by, or had served as an agent or key
consultant of the Company, provided, however, that Executive shall not be prohibited from receiving
and responding to unsolicited requests for employment or career advice from Company’s employees.

     8. Arbitration.

          8.1. Agreement to Arbitrate Claims. The Company and Executive hereby agree that, to
the fullest extent permitted by law, any and all claims or controversies between them (or between
Executive and any present or former officer, director, agent, or employee of the Company or any
parent, subsidiary, or other entity affiliated with the Company) relating in any manner to the
employment or the termination of employment of Executive shall be resolved by final and binding
arbitration. Except as specifically provided herein, any arbitration proceeding shall be conducted
in accordance with the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association (“the AAA Rules”). Claims subject to arbitration shall include contract
claims, tort claims, claims relating to compensation and stock options, as well as claims based on
any federal, state, or local law, statute, or regulation, including but not limited to any claims
arising under Title VII of the Civil

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Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities
Act, and the California Fair Employment and Housing Act. However, claims for unemployment
compensation, workers’ compensation, and claims under the National Labor Relations Act shall not be
subject to arbitration.

          8.2. Arbitrator. A neutral and impartial arbitrator shall be chosen by mutual
agreement of Executive and the Company; however, if Executive and the Company are unable to agree
upon an arbitrator within a reasonable period of time, then a neutral and impartial arbitrator
shall be appointed in accordance with the arbitrator nomination and selection procedure set forth
in the AAA Rules. The arbitrator shall prepare a written decision containing the essential
findings and conclusions on which the award is based so as to ensure meaningful judicial review of
the decision. The arbitrator shall apply the same substantive law, with the same statutes of
limitations and same remedies, that would apply if the claims were brought in a court of law. The
arbitrator shall have the authority to consider and decide pre-hearing motions, including
dispositive motions.

          8.3. Enforcement Actions. Either the Company or Executive may bring an action in
court to compel arbitration under this Agreement and to enforce an arbitration award. Except as
otherwise provided in this Agreement, neither party shall initiate or prosecute any lawsuit in any
way related to any arbitrable claim, including without limitation any claim as to the making,
existence, validity, or enforceability of the agreement to arbitrate. All arbitration hearings
under this Agreement shall be conducted in Las Vegas, Nevada.

          8.4. Exceptions. Nothing in this Agreement precludes a party from filing an
administrative charge before an agency that has jurisdiction over an arbitrable claim. In
addition, either party may, at its option, seek injunctive relief in a court of competent
jurisdiction for any claim or controversy arising out of or related to the unauthorized use,
disclosure, or misappropriation of the confidential and/or proprietary information of either party.
By way of example, the Company may choose to use the court system to seek injunctive relief to
prevent disclosure of its proprietary information or trade secrets; similarly, Executive may elect
to use the court system to seek injunctive relief to protect Executive’s own inventions or trade
secrets.

          8.5. Governing Law. The agreement to arbitrate under this Section 8 shall be governed
by the Uniform Arbitration Act of 2000 (Nevada Revised Statutes 38.206 et seq).
In ruling on procedural and substantive issues raised in the arbitration itself, the Arbitrator
shall in all cases apply the substantive law of the State of Nevada.

          8.6. Attorneys’ Fees. Each party shall pay its own costs and attorney’s fees, unless
a party prevails on a statutory claim, and the statute provides that the prevailing party is
entitled to payment of its attorneys’ fees. In that case, the arbitrator may award reasonable
attorneys’ fees and costs to the prevailing party as provided by law. The costs and fees of the
arbitrator shall be borne equally by Executive and the Company.

          8.7. Survival. The parties’ obligations under this Section 8 shall survive the
termination of Executive’s employment with the Company and the expiration of this Agreement.

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          8.8. Acknowledgements. THE PARTIES UNDERSTAND AND AGREE THAT THIS SECTION 8
CONSTITUTES A WAIVER OF THEIR RIGHT TO A TRIAL BY JURY OF ANY CLAIMS OR CONTROVERSIES COVERED BY
THIS SECTION 8. THE PARTIES AGREE THAT NONE OF THOSE CLAIMS OR CONTROVERSIES SHALL BE RESOLVED BY
A JURY TRIAL. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE BEEN GIVEN THE OPPORTUNITY TO DISCUSS
THIS SECTION 8 WITH THEIR LEGAL COUNSEL AND HAVE AVAILED THEMSELVES OF THAT OPPORTUNITY TO THE
EXTENT THEY WISH TO DO SO.

     9. Expiration of Term

     The terms of this Agreement are intended by the parties to govern Executive’s employment with
the Company during the Term. Upon the expiration of the Term, this Agreement shall terminate and
be of no further force or effect, except to the extent of provisions hereof which expressly survive
the expiration or termination of this Agreement.

     10. Entire Agreement

     The terms of this Agreement are intended by the parties to be the final and exclusive
expression of their agreement with respect to the employment of Executive by Company and supersedes
in its entirety all prior undertakings and agreements of the Company and Executive with respect to
the subject matter hereof and may not be contradicted by evidence of any prior or contemporaneous
statements or agreements; provided, however, that to the extent of any conflict between the
provisions of this Agreement, on the one hand, and either the Employee Proprietary Information and
Inventions Agreement attached hereto as Exhibit A or the Stock Option Agreement attached
hereto as Exhibit B, on the other hand, the provisions of such Employee Proprietary
Information and Inventions Agreement or Stock Option Agreement shall govern. The parties further
intend that this Agreement shall constitute the complete and exclusive statement of its terms and
that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other
legal proceeding involving this Agreement.

     11. Amendments, Waivers

     This Agreement may not be modified, amended, or terminated except by an instrument in writing,
signed by Executive and by a duly authorized representative of the Company other than Executive.
No failure to exercise and no delay in exercising any right, remedy, or power under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy,
or power under this Agreement preclude any other or further exercise thereof, or the exercise of
any other right, remedy, or power provided herein or by law or in equity.

     12. Assignment; Successors and Assigns

     Executive agrees that Executive may not assign, sell, transfer, delegate or otherwise dispose
of, whether voluntarily or involuntarily, or by operation of law, any rights or obligations under
this Agreement, nor shall Executive’s rights be subject to encumbrance or the claims of creditors.
Any purported assignment, transfer, or delegation shall be null and void. Nothing in

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this Agreement shall prevent the consolidation of the Company with, or its merger into, any
other corporation, or the sale by the Company of all or substantially all of its properties or
assets, or the assignment by the Company of this Agreement and the performance of its obligations
hereunder to any successor in interest.

     13. Severability; Enforcement

     If any provision of this Agreement, or the application thereof to any person, place, or
circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable, or
void, the remainder of this Agreement and such provisions as applied to other persons, places, and
circumstances shall remain in full force and effect. Such court shall have the authority to modify
or replace the invalid or unenforceable term or provision with one which most accurately represents
the parties’ intention with respect to the invalid or unenforceable term or provision.

     14. Governing Law

     The validity, interpretation, enforceability, and performance of this Agreement shall be
governed by and construed in accordance with the law of the State of Nevada.

     15. Acknowledgment

     The parties acknowledge (a) that they have consulted with or have had the opportunity to
consult with independent counsel of their own choice concerning this Agreement, and (b) that they
have read and understand the Agreement, are fully aware of its legal effect, and have entered into
it freely based on their own judgment and not on any representations or promises other than those
contained in this Agreement.

     16. Notices

     All notices or demands of any kind required or permitted to be given by the Company or
Executive under this Agreement shall be given in writing and shall be personally delivered (and
receipted for) or mailed by certified mail, return receipt requested, postage prepaid, addressed as
follows:

	 	 	 	 	 
	 

	 	If to Company:
	 	Global Cash Access, Inc.
	 

	 	 	 	Attn: Chief Executive Officer
	 

	 	 	 	3525 East Post Road, Suite 120
	 

	 	 	 	Las Vegas, NV 89120
	 
	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	If to Executive:
	 	Kathryn S. Lever
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 

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Any such written notice shall be deemed received when personally delivered or three (3) days after
its deposit in the United States mail as specified above. Either party may change its address for
notices by giving notice to the other party in the name specified in this section.

     17. Representations and Warranties.

     Executive represents and warrants that she is not restricted or prohibited, contractually or
otherwise, from entering into and performing each of the terms and covenants contained in this
Agreement, and that her execution and performance of this Agreement will not violate or breach any
other agreements between Executive and any other person or entity.

     18. Counterparts

     This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, all of which together shall contribute one and the same instrument.

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     IN WITNESS WHEREOF, each of the undersigned has executed this Employment Agreement as of the
date first set forth above.

	 	 	 	 	 	 	 
	GLOBAL CASH ACCESS, INC.	 	 	 	KATHRYN S. LEVER
	 
	 	 	 	 	 	 
	By:

	 	/s/ Kirk Sanford
	 	 	 	/s/ Kathryn S. Lever
	 

	 	 
	 	 	 	 
	 

	 	Kirk Sanford
	 	 	 	Kathryn S. Lever
	 

	 	Chief Executive Officer	 	 	 	 

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EXHIBIT A

EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

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EXHIBIT B

FORM OF STOCK OPTION AGREEMENT

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EXHIBIT C

RELEASE AND WAIVER OF CLAIMS

     In exchange for the severance payments and other benefits to which I would not otherwise be
entitled, I hereby furnish Global Cash Access, Inc., its parent corporation, Global Cash Access
Holdings, Inc. and each of their respective subsidiaries and affiliates (collectively, the
“Company”) with the following release and waiver.

     I hereby release, and forever discharge the Company, its officers, directors, agents,
employees, stockholders, attorneys, successors, assigns and affiliates, of and from any and all
claims, liabilities, demands, causes of action, costs, expenses, attorneys fees, damages,
indemnities and obligations of every kid and nature, in law, equity, or otherwise, known and
unknown, suspected and unsuspected, disclosed and undisclosed, arising at any time prior to and
including the date I sign this Release with respect to any claims relating to my employment and the
termination of my employment, including but not limited to: any and all such claims and demands
directly or indirectly arising out of or in any way connected with my employment with the Company
or the termination of that employment; claims or demands related to salary, bonuses, commissions,
stock, stock options, or any other ownership interests in the Company, vacation pay, fringe
benefits, expense reimbursements, sabbatical benefits, severance benefits, or any other form of
compensation; claims pursuant to any federal, state or local law or cause of action including, but
not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination
Act of 1990; the Delaware Fair Employment Practices Act, as amended; tort law; contract law;
wrongful discharge; discrimination; harassment; fraud; emotional distress; and breach of the
implied covenant of good faith and fair dealing, provided, however, that this Release shall not
apply to claims or causes of action for defamation, libel, or invasion of privacy.

     In granting the releases herein, I acknowledge that I understand that I am waiving any and all
rights and benefits conferred by any law of any state or territory of the United States or other
jurisdiction, or principle of common law, which is similar, comparable or equivalent to Section
1542 of the Civil Code of the State of California, which provides: “A general release does not
extend to claims which the creditor does not know or suspect to exist in her favor at the time of
executing the release, which if known by her must have materially affected her settlement with the
debtor.” I hereby expressly waive and relinquish all rights and benefits under that section and
any law or legal principle of similar effect in any jurisdiction with respect to the release of
unknown and unsuspected claims granted in this Agreement.

     I acknowledge that, among other rights, I am waiving and releasing any rights I may have under
ADEA, that this waiver and release is knowing and voluntary, and that the consideration given for
this waiver and release is in addition to anything of value to which I was already entitled. I
further acknowledge that I have been advised, as required by the Older Workers Benefit Protection
Act, that: (a) the waiver and release granted herein does not relate to claims which may arise
after this agreement is executed; (b) I have the right to consult with an attorney prior to
executing this agreement (although I may choose voluntarily not to do so); (c) I have twenty-one
(21) days from the date I receive this agreement, in which to consider this agreement (although I
may choose voluntarily to execute this agreement earlier); (d) I have seven (7) days

2

 

following the execution of this agreement to revoke my consent to the agreement; and (e) this
agreement shall not be effective until the seven (7) day revocation period has expired.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Kathryn S. Lever

3exv10w2

 

Exhibit 10.2

GLOBAL CASH ACCESS HOLDINGS, INC. 2005 STOCK INCENTIVE PLAN

NOTICE OF STOCK OPTION AWARD

	 	 	 	 	 
	 

	 	Grantee’s Name and Address:
	 	Kathryn S. Lever
	 
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 

     You (the “Grantee”) have been granted an option to purchase shares of Class A Common Stock,
subject to the terms and conditions of this Notice of Stock Option Award (the “Notice”), the Global
Cash Access Holdings, Inc. 2005 Stock Incentive Plan, as amended from time to time (the “Plan”) and
the Stock Option Award Agreement (the “Option Agreement”) attached hereto, as follows. Unless
otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in
this Notice.

	 	 	 	 	 	 	 
	 

	 	Award Number
	 	113	 
	 

	 	 	 	 	 
	 

	 	Date of Award
	 	September 12, 2005

	 

	 	 	 	 	 
	 

	 	Vesting Commencement Date
	 	September 12, 2005

	 

	 	 	 	 	 
	 

	 	Exercise Price per Share
	 	$ 13.99	 	 
	 

	 	 	 	 	 
	 

	 	Total Number of Shares Subject	 	 	 	 
	 

	 	to the Option (the “Shares”)
	 	75,000	 
	 

	 	 	 	 	 
	 

	 	 	 	 	 
	 

	 	Total Exercise Price
	 	$ 1,049,250.00	 	 
	 

	 	 	 	 	 
	 

	 	Type of Option:
	 	Incentive Stock Option

	 

	 	 	 	 	 
	 

	 	Expiration Date:
	 	September 12, 2015

	 

	 	 	 	 	 
	 

	 	Post-Termination Exercise Period:
	 	Three (3) Months

Vesting Schedule:

     Subject to the Grantee’s Continuous Service and other limitations set forth in this Notice,
the Plan and the Option Agreement, the Option may be exercised, in whole or in part, in accordance
with the following schedule:

     25% of the Shares subject to the Option shall vest twelve months after the Vesting
Commencement Date, and 1/36th of the remaining number of Shares subject to the Option shall vest on
each monthly anniversary of the Vesting Commencement Date thereafter.

     Acceleration of Option Upon Corporate Transaction. In the event of a Corporate
Transaction:

          (A) for the portion of the Option that is Assumed or Replaced, the Option (if Assumed), the
replacement Award (if Replaced), or the cash incentive program (if Replaced) automatically shall
become fully vested, exercisable and payable and be released from any repurchase or forfeiture
rights (other than repurchase rights exercisable at Fair Market Value) for

1

 

all of the Shares at the time represented by such Assumed or Replaced portion of the Option,
immediately upon termination of the Grantee’s Continuous Service if such Continuous Service is
terminated by the successor company or the Company without Cause within eighteen (18) months after
the Corporate Transaction; and

          (B) for the portion of the Option that is neither Assumed nor Replaced, such portion of the
Option shall automatically become fully vested and exercisable and be released from any repurchase
or forfeiture rights (other than repurchase rights exercisable at Fair Market Value) for all of the
Shares at the time represented by such portion of the Option, immediately prior to the specified
effective date of such Corporate Transaction, provided that the Grantee’s Continuous Service has
not terminated prior to such date.

     Acceleration of Option Upon Change in Control. Following a Change in Control (other
than a Change in Control which also is a Corporate Transaction) and upon the termination of the
Continuous Service of a Grantee if such Continuous Service is terminated by the Company or Related
Entity without Cause within eighteen (18) months after a Change in Control, the Option
automatically shall become fully vested and exercisable and be released from any repurchase or
forfeiture rights (other than repurchase rights exercisable at Fair Market Value), immediately upon
the termination of such Continuous Service.

     Effect of Acceleration on Incentive Stock Option. To the extent that the Option is an
Incentive Stock Option and is accelerated in connection with a Corporate Transaction or Change in
Control, the Option shall remain exercisable as an Incentive Stock Option under the Code only to
the extent the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded.

     During any authorized leave of absence, the vesting of the Option as provided in this schedule
shall be suspended after the leave of absence exceeds a period of ninety (90) days. Vesting of the
Option shall resume upon the Grantee’s termination of the leave of absence and return to service to
the Company or a Related Entity. The Vesting Schedule of the Option shall be extended by the
length of the suspension.

     In the event of termination of the Grantee’s Continuous Service for Cause, the Grantee’s right
to exercise the Option shall terminate concurrently with the termination of the Grantee’s
Continuous Service, except as otherwise determined by the Administrator.

     IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the
Option is to be governed by the terms and conditions of this Notice, the Plan, and the Option
Agreement.

	 	 	 	 	 
	 	Global Cash Access Holdings, Inc.

a Delaware corporation

 	 
	 	By:  	/s/ Kirk Sanford
 	 

	 	 	 	 	 
	 

	 	Title:
	 	Chief Executive Officer
	 	 	 	 	 

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO

2

 

THE OPTION SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE GRANTEE’S CONTINUOUS SERVICE (NOT
THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER). THE
GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE OPTION AGREEMENT, OR THE
PLAN SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF THE
GRANTEE’S CONTINUOUS SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE GRANTEE’S RIGHT OR THE
RIGHT OF THE COMPANY OR RELATED ENTITY TO WHICH THE GRANTEE PROVIDES SERVICES TO TERMINATE THE
GRANTEE’S CONTINUOUS SERVICE, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE. THE GRANTEE
ACKNOWLEDGES THAT UNLESS THE GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE
CONTRARY, THE GRANTEE’S STATUS IS AT WILL.

     The Grantee acknowledges receipt of a copy of the Plan and the Option Agreement, and
represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the
Option subject to all of the terms and provisions hereof and thereof. The Grantee has reviewed
this Notice, the Plan, and the Option Agreement in their entirety, has had an opportunity to obtain
the advice of counsel prior to executing this Notice, and fully understands all provisions of this
Notice, the Plan and the Option Agreement. The Grantee hereby agrees that all questions of
interpretation and administration relating to this Notice, the Plan and the Option Agreement shall
be resolved by the Administrator in accordance with Section 18 of the Option Agreement. The
Grantee further agrees to the venue selection and waiver of a jury trial in accordance with Section
19 of the Option Agreement. The Grantee further agrees to notify the Company upon any change in
the residence address indicated in this Notice.

	 	 	 	 	 	 	 
	Dated:

	 	 	 	Signed:
	 	/s/ Kathryn Lever
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Grantee

3

 

Award Number: 113

GLOBAL CASH ACCESS HOLDINGS, INC. 2005 STOCK INCENTIVE PLAN

STOCK OPTION AWARD AGREEMENT

     1. Grant of Option. Global Cash Access Holdings, Inc., a Delaware corporation (the
“Company”), hereby grants to the Grantee (the “Grantee”) named in the Notice of Stock Option Award
(the “Notice”), an option (the “Option”) to purchase the Total Number of Shares of Common Stock
subject to the Option (the “Shares”) set forth in the Notice, at the Exercise Price per Share set
forth in the Notice (the “Exercise Price”) subject to the terms and provisions of the Notice, this
Stock Option Award Agreement (the “Option Agreement”) and the Company’s 2005 Stock Incentive Plan,
as amended from time to time (the “Plan”), which are incorporated herein by reference. Unless
otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in
this Option Agreement.

     If designated in the Notice as an Incentive Stock Option, the Option is intended to qualify as
an Incentive Stock Option as defined in Section 422 of the Code. However, notwithstanding such
designation, the Option will qualify as an Incentive Stock Option under the Code only to the extent
the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded. The $100,000
limitation of Section 422(d) of the Code is calculated based on the aggregate Fair Market Value of
the Shares subject to options designated as Incentive Stock Options which become exercisable for
the first time by the Grantee during any calendar year (under all plans of the Company or any
Parent or Subsidiary of the Company). For purposes of this calculation, Incentive Stock Options
shall be taken into account in the order in which they were granted, and the Fair Market Value of
the shares subject to such options shall be determined as of the grant date of the relevant option.

     2. Exercise of Option.

          (a) Right to Exercise. The Option shall be exercisable during its term in accordance
with the Vesting Schedule set out in the Notice and with the applicable provisions of the Plan and
this Option Agreement. The Option shall be subject to the provisions of Section 11 of the Plan and
the Notice relating to the exercisability or termination of the Option in the event of a Corporate
Transaction or Change in Control. The Grantee shall be subject to reasonable limitations on the
number of requested exercises during any monthly or weekly period as determined by the
Administrator. In no event shall the Company issue fractional Shares.

          (b) Method of Exercise. The Option shall be exercisable by delivery of an exercise
notice (a form of which is attached as Exhibit A) or by such other procedure as specified from time
to time by the Administrator which shall state the election to exercise the Option, the whole
number of Shares in respect of which the Option is being exercised, and such other provisions as
may be required by the Administrator. The exercise notice shall be delivered in person, by
certified mail, or by such other method (including electronic transmission) as determined from time
to time by the Administrator to the Company accompanied by payment of

1

 

the Exercise Price. The Option shall be deemed to be exercised upon receipt by the Company of
such notice accompanied by the Exercise Price, which, to the extent selected, shall be deemed to be
satisfied by use of the broker-dealer sale and remittance procedure to pay the Exercise Price
provided in Section 4(d), below.

          (c) Taxes. No Shares will be delivered to the Grantee or other person pursuant to the
exercise of the Option until the Grantee or other person has made arrangements acceptable to the
Administrator for the satisfaction of applicable income tax and employment tax withholding
obligations, including, without limitation, such other tax obligations of the Grantee incident to
the receipt of Shares. Upon exercise of the Option, the Company or the Grantee’s employer may
offset or withhold (from any amount owed by the Company or the Grantee’s employer to the Grantee)
or collect from the Grantee or other person an amount sufficient to satisfy such tax withholding
obligations.

     3. Grantee’s Representations. The Grantee understands that neither the Option nor the
Shares exercisable pursuant to the Option have been registered under the Securities Act of 1933, as
amended or any United States securities laws. In the event the Shares purchasable pursuant to the
exercise of the Option have not been registered under the Securities Act of 1933, as amended, at
the time the Option is exercised, the Grantee shall, if requested by the Company, concurrently with
the exercise of all or any portion of the Option, deliver to the Company his or her Investment
Representation Statement in the form attached hereto as Exhibit B.

     4. Method of Payment. Payment of the Exercise Price shall be made by any of the
following, or a combination thereof, at the election of the Grantee; provided, however, that such
exercise method does not then violate any Applicable Law, provided further, that the portion of the
Exercise Price equal to the par value of the Shares must be paid in cash or other legal
consideration permitted by the Delaware General Corporation Law:

          (a) cash;

          (b) check;

          (c) if the exercise occurs on or after the Registration Date, surrender of Shares or delivery
of a properly executed form of attestation of ownership of Shares as the Administrator may require
which have a Fair Market Value on the date of surrender or attestation equal to the aggregate
Exercise Price of the Shares as to which the Option is being exercised, provided, however, that
Shares acquired under the Plan or any other equity compensation plan or agreement of the Company
must have been held by the Grantee for a period of more than six (6) months (and not used for
another Award exercise by attestation during such period); or

          (d) if the exercise occurs on or after the Registration Date, payment through a broker-dealer
sale and remittance procedure pursuant to which the Grantee (i) shall provide written instructions
to a Company-designated brokerage firm to effect the immediate sale of some or all of the purchased
Shares and remit to the Company sufficient funds to cover the aggregate exercise price payable for
the purchased Shares and (ii) shall provide written directives

2

 

to the Company to deliver the certificates for the purchased Shares directly to such brokerage
firm in order to complete the sale transaction.

     5. Termination or Change of Continuous Service. In the event the Grantee’s Continuous
Service terminates, other than for Cause, the Grantee may, but only during the Post-Termination
Exercise Period, exercise the portion of the Option that was vested at the date of such termination
(the “Termination Date”). The Post-Termination Exercise Period shall commence on the Termination
Date. In the event of termination of the Grantee’s Continuous Service for Cause, the Grantee’s
right to exercise the Option shall, except as otherwise determined by the Administrator, terminate
concurrently with the termination of the Grantee’s Continuous Service (also the “Termination
Date”). In no event, however, shall the Option be exercised later than the Expiration Date set
forth in the Notice. In the event of the Grantee’s change in status from Employee, Director or
Consultant to any other status of Employee, Director or Consultant, the Option shall remain in
effect and the Option shall continue to vest in accordance with the Vesting Schedule set forth in
the Notice; provided, however, with respect to any Incentive Stock Option that shall remain in
effect after a change in status from Employee to Director or Consultant, such Incentive Stock
Option shall cease to be treated as an Incentive Stock Option and shall be treated as a
Non-Qualified Stock Option on the day three (3) months and one (1) day following such change in
status. Except as provided in Sections 6 and 7 below, to the extent that the Option was unvested
on the Termination Date, or if the Grantee does not exercise the vested portion of the Option
within the Post-Termination Exercise Period, the Option shall terminate.

     6. Disability of Grantee. In the event the Grantee’s Continuous Service terminates as
a result of his or her Disability, the Grantee may, but only within twelve (12) months commencing
on the Termination Date (but in no event later than the Expiration Date), exercise the portion of
the Option that was vested on the Termination Date; provided, however, that if such Disability is
not a “disability” as such term is defined in Section 22(e)(3) of the Code and the Option is an
Incentive Stock Option, such Incentive Stock Option shall cease to be treated as an Incentive Stock
Option and shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1)
day following the Termination Date. To the extent that the Option was unvested on the Termination
Date, or if the Grantee does not exercise the vested portion of the Option within the time
specified herein, the Option shall terminate. Section 22(e)(3) of the Code provides that an
individual is permanently and totally disabled if he or she is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than twelve (12) months.

     7. Death of Grantee. In the event of the termination of the Grantee’s Continuous
Service as a result of his or her death, or in the event of the Grantee’s death during the
Post-Termination Exercise Period or during the twelve (12) month period following the Grantee’s
termination of Continuous Service as a result of his or her Disability, the person who acquired the
right to exercise the Option pursuant to Section 8 may exercise the portion of the Option that was
vested at the date of termination within twelve (12) months commencing on the date of death (but in
no event later than the Expiration Date). To the extent that the Option was unvested on the date
of death, or if the vested portion of the Option is not exercised within the time specified herein,
the Option shall terminate.

3

 

     8. Transferability of Option. The Option, if an Incentive Stock Option, may not be
transferred in any manner other than by will or by the laws of descent and distribution and may be
exercised during the lifetime of the Grantee only by the Grantee. The Option, if a Non-Qualified
Stock Option, may not be transferred in any manner other than by will or by the laws of descent and
distribution, provided, however, that a Non-Qualified Stock Option may be transferred during the
lifetime of the Grantee to the extent and in the manner authorized by the Administrator.
Notwithstanding the foregoing, the Grantee may designate one or more beneficiaries of the Grantee’s
Incentive Stock Option or Non-Qualified Stock Option in the event of the Grantee’s death on a
beneficiary designation form provided by the Administrator. Following the death of the Grantee,
the Option, to the extent provided in Section 7, may be exercised (a) by the person or persons
designated under the deceased Grantee’s beneficiary designation or (b) in the absence of an
effectively designated beneficiary, by the Grantee’s legal representative or by any person
empowered to do so under the deceased Grantee’s will or under the then applicable laws of descent
and distribution. The terms of the Option shall be binding upon the executors, administrators,
heirs, successors and transferees of the Grantee.

     9. Term of Option. The Option must be exercised no later than the Expiration Date set
forth in the Notice or such earlier date as otherwise provided herein. After the Expiration Date
or such earlier date, the Option shall be of no further force or effect and may not be exercised.

     10. Company’s Right of First Refusal.

          (a) Transfer Notice. Neither the Grantee nor a transferee (either being sometimes
referred to herein as the “Holder”) shall sell, hypothecate, encumber or otherwise transfer any
Shares or any right or interest therein without first complying with the provisions of this Section
10 or obtaining the prior written consent of the Company. The Holder may not sell, hypothecate,
encumber or otherwise transfer any Shares or any right or interest therein unless such Shares are
Mature Shares (as defined below). “Mature Shares” shall mean the Shares that have been held by the
Holder (and any successor Holder) for a period of more than six (6) months. In the event the
Holder desires to accept a bona fide third-party offer for any or all of the Shares that are Mature
Shares, the Holder shall provide the Company with written notice (the “Transfer Notice”) of:

	 	(i)	 	The Holder’s intention to transfer;
	 
	 	(ii)	 	The name of the proposed transferee;
	 
	 	(iii)	 	The number of Shares to be transferred; and
	 
	 	(iv)	 	The proposed transfer price or value and terms thereof.

If the Grantee proposes to transfer any Shares to more than one transferee, the Grantee shall
provide a separate Transfer Notice for the proposed transfer to each transferee. The Transfer
Notice shall be signed by both the Grantee and the proposed transferee and must constitute a
binding commitment of the Grantee and the proposed transferee for the transfer of the Shares to the
proposed transferee subject to the terms and conditions of this Option Agreement.

4

 

          (b) Bona Fide Transfer. If the Company determines that the information provided by
the Grantee in the Transfer Notice is insufficient to establish the bona fide nature of a proposed
voluntary transfer, the Company shall give the Grantee written notice of the Grantee’s failure to
comply with the procedure described in this Section 10, and the Grantee shall have no right to
transfer the Shares without first complying with the procedure described in this Section 10. The
Grantee shall not be permitted to transfer the Shares if the proposed transfer is not bona fide.

          (c) First Refusal Exercise Notice. The Company shall have the right to purchase (the
“Right of First Refusal”) all but not less than all, of the Shares which are described in the
Transfer Notice (the “Offered Shares”) at any time within ninety (90) days after receipt of the
Transfer Notice (the “Option Period”). The Offered Shares shall be repurchased at (i) the per
share price or value and in accordance with the terms stated in the Transfer Notice (subject to
Section 10(d) below) or (ii) the Fair Market Value of the Shares on the date on which the purchase
is to be effected if no consideration is paid pursuant to the terms stated in the Transfer Notice,
which Right of First Refusal shall be exercised by written notice (the “First Refusal Exercise
Notice”) to the Holder. During the Option Period or the 45-day period specified in Section 10(f)
below, the Company may exercise its Repurchase Right (as set forth in Section 11 below) in lieu of
or in addition to its Right of First Refusal if the Repurchase Right is or becomes exercisable
during the Option Period or such 45-day period.

          (d) Payment Terms. The Company shall consummate the purchase of the Offered Shares on
the terms set forth in the Transfer Notice within 30 days after delivery of the First Refusal
Exercise Notice; provided, however, that in the event the Transfer Notice provides for the payment
for the Offered Shares other than in cash, the Company and/or its assigns shall have the right to
pay for the Offered Shares by the discounted cash equivalent of the consideration described in the
Transfer Notice as reasonably determined by the Administrator. Upon payment for the Offered Shares
to the Holder or into escrow for the benefit of the Holder, the Company or its assigns shall become
the legal and beneficial owner of the Offered Shares and all rights and interest therein or related
thereto, and the Company shall have the right to transfer the Offered Shares to its own name or its
assigns without further action by the Holder.

          (e) Assignment. Whenever the Company shall have the right to purchase Shares under
this Right of First Refusal, the Company may designate and assign one or more employees, officers,
directors or stockholders of the Company or other persons or organizations, to exercise all or a
part of the Company’s Right of First Refusal.

          (f) Non-Exercise. If the Company and/or its assigns do not collectively elect to
exercise the Right of First Refusal within the Option Period or such earlier time if the Company
and/or its assigns notifies the Holder that it will not exercise the Right of First Refusal, then
the Holder may transfer the Shares upon the terms and conditions stated in the Transfer Notice,
provided that:

	 	(i)	 	The transfer is made within forty-five (45)
days of the earlier of (A) the date the Company and/or its assigns
notify the Holder that

5

 

	 	 	 	the Right of First Refusal will not be exercised or (B) the
expiration of the Option Period; and
	 
	 	(ii)	 	The transferee agrees in writing that such
Shares shall be held subject to the provisions of this Option
Agreement.

The Company shall have the right to demand further assurances from the Grantee and the transferee
(in a form satisfactory to the Company) that the transfer of the Offered Shares was actually
carried out on the terms and conditions described in the Transfer Notice. No Offered Shares shall
be transferred on the books of the Company until the Company has received such assurances, if so
demanded, and has approved the proposed transfer as bona fide.

          (g) Expiration of Transfer Period. Following such 45-day period, no transfer of the
Offered Shares and no change in the terms of the transfer as stated in the Transfer Notice
(including the name of the proposed transferee) shall be permitted without a new written Transfer
Notice prepared and submitted in accordance with the requirements of this Right of First Refusal.

          (h) Termination of Right of First Refusal. The provisions of this Right of First
Refusal shall terminate as to all Shares upon the Registration Date.

          (i) Additional Shares or Substituted Securities. In the event of any transaction
described in Sections 10 or 11 of the Plan, any new, substituted or additional securities or other
property which is by reason of any such transaction distributed with respect to the Shares shall be
immediately subject to the Right of First Refusal, but only to the extent the Shares are at the
time covered by such right.

     11. Company’s Repurchase Right.

          (a) Grant of Repurchase Right. The Company is hereby granted the right to purchase
all or any portion of the Shares (the “Repurchase Right”), exercisable at any time (i) during the
ninety (90) day period commencing on the Termination Date, or (ii) during the ninety (90) day
period commencing upon any exercise of the Option that occurs after the Termination Date (together,
the “Share Repurchase Period”), provided, however, that if the Shares to be repurchased are not
Mature Shares then the Share Repurchase Period shall be extended by the number of days necessary
for the such Shares to become Mature Shares. The Repurchase Right may only be exercised with
respect to Mature Shares.

          (b) Exercise of the Repurchase Right. The Repurchase Right shall be exercisable by
written notice delivered to each Holder of the Shares prior to the expiration of the Share
Repurchase Period. The notice shall indicate the number of Shares to be repurchased and the date
on which the repurchase is to be effected, such date to be not later than the last day of the Share
Repurchase Period. On the date on which the repurchase is to be effected, the Company and/or its
assigns shall pay to the Holder in cash or cash equivalents (including the cancellation of any
purchase-money indebtedness) an amount equal to (i) the Fair Market Value on the date on which the
repurchase is to be effected of the Shares which are to be repurchased from the Holder, in the
event of termination of the Grantee’s Continuous Service other than for
 

6

 

Cause, or (ii) the lesser of the Exercise Price or the Fair Market Value on the date on which
the repurchase is to be effected of the Shares which are to be repurchased from the Holder, in the
event of termination of the Grantee’s Continuous Service for Cause. Upon such payment or deposit
into escrow for the benefit of the Holder, the Company and/or its assigns shall become the legal
and beneficial owner of the Shares being repurchased and all rights and interest thereon or related
thereto, and the Company shall have the right to transfer to its own name or its assigns the number
of Shares being repurchased, without further action by the Holder.

          (c) Assignment. Whenever the Company shall have the right to purchase Shares under
this Repurchase Right, the Company may designate and assign one or more employees, officers,
directors or stockholders of the Company or other persons or organizations, to exercise all or a
part of the Company’s Repurchase Right.

          (d) Termination of the Repurchase Right. The Repurchase Right shall terminate with
respect to any Shares for which it is not timely exercised. In addition, the Repurchase Right
shall terminate and cease to be exercisable with respect to all Shares upon the Registration Date.

          (e) Additional Shares or Substituted Securities. In the event of any transaction
described in Sections 10 or 11 of the Plan, any new, substituted or additional securities or other
property which is by reason of any such transaction distributed with respect to the Shares shall be
immediately subject to the Repurchase Right, but only to the extent the Shares are at the time
covered by such right.

     12. Stop-Transfer Notices. In order to ensure compliance with the restrictions on
transfer set forth in this Option Agreement, the Notice or the Plan, the Company may issue
appropriate “stop transfer” instructions to its transfer agent, if any, and, if the Company
transfers its own securities, it may make appropriate notations to the same effect in its own
records.

     13. Refusal to Transfer. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Option Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or
pay dividends to any purchaser or other transferee to whom such Shares shall have been so
transferred.

     14. Tax Consequences. Set forth below is a brief summary as of the date of this
Option Agreement of some of the federal tax consequences of exercise of the Option and disposition
of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE
SUBJECT TO CHANGE. THE GRANTEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR
DISPOSING OF THE SHARES.

          (a) Exercise of Incentive Stock Option. If the Option qualifies as an Incentive Stock
Option, there will be no regular federal income tax liability upon the exercise of the Option,
although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over
the Exercise Price will be treated as income for purposes of the alternative

7

 

minimum tax for federal tax purposes and may subject the Grantee to the alternative minimum
tax in the year of exercise.

          (b) Exercise of Incentive Stock Option Following Disability. If the Grantee’s
Continuous Service terminates as a result of Disability that is not permanent and total disability
as such term is defined in Section 22(e)(3) of the Code, to the extent permitted on the date of
termination, the Grantee must exercise an Incentive Stock Option within three (3) months of such
termination for the Incentive Stock Option to be qualified as an Incentive Stock Option. Section
22(e)(3) of the Code provides that an individual is permanently and totally disabled if he or she
is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than twelve (12) months.

          (c) Exercise of Non-Qualified Stock Option. On exercise of a Non-Qualified Stock
Option, the Grantee will be treated as having received compensation income (taxable at ordinary
income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date
of exercise over the Exercise Price. If the Grantee is an Employee or a former Employee, the
Company will be required to withhold from the Grantee’s compensation or collect from the Grantee
and pay to the applicable taxing authorities an amount in cash equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the exercise and refuse to
deliver Shares if such withholding amounts are not delivered at the time of exercise.

          (d) Disposition of Shares. In the case of a Non-Qualified Stock Option, if Shares are
held for more than one year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes. In the case of an Incentive Stock Option,
if Shares transferred pursuant to the Option are held for more than one year after receipt of the
Shares and are disposed more than two years after the Date of Award, any gain realized on
disposition of the Shares also will be treated as capital gain for federal income tax purposes and
subject to the same tax rates and holding periods that apply to Shares acquired upon exercise of a
Non-Qualified Stock Option. If Shares purchased under an Incentive Stock Option are disposed of
prior to the expiration of such one-year or two-year periods, any gain realized on such disposition
will be treated as compensation income (taxable at ordinary income rates) to the extent of the
difference between the Exercise Price and the lesser of (i) the Fair Market Value of the Shares on
the date of exercise, or (ii) the sale price of the Shares.

     15. Lock-Up Agreement.

          (a) Agreement. The Grantee, if requested by the Company and the lead underwriter of
any public offering of the Common Stock (the “Lead Underwriter”), hereby irrevocably agrees not to
sell, contract to sell, grant any option to purchase, transfer the economic risk of ownership in,
make any short sale of, pledge or otherwise transfer or dispose of any interest in any Common Stock
or any securities convertible into or exchangeable or exercisable for or any other rights to
purchase or acquire Common Stock (except Common Stock included in such public offering or acquired
on the public market after such offering) during the 200-day period following the effective date of
a registration statement of the Company filed under the

8

 

Securities Act of 1933, as amended, or such shorter or longer period of time as the Lead
Underwriter shall specify. The Grantee further agrees to sign such documents as may be requested
by the Lead Underwriter to effect the foregoing and agrees that the Company may impose
stop-transfer instructions with respect to such Common Stock subject to the lock-up period until
the end of such period. The Company and the Grantee acknowledge that each Lead Underwriter of a
public offering of the Company’s stock, during the period of such offering and for the lock-up
period thereafter, is an intended beneficiary of this Section 15.

          (b) No Amendment Without Consent of Underwriter. During the period from
identification of a Lead Underwriter in connection with any public offering of the Company’s Common
Stock until the earlier of (i) the expiration of the lock-up period specified in Section 15(a) in
connection with such offering or (ii) the abandonment of such offering by the Company and the Lead
Underwriter, the provisions of this Section 15 may not be amended or waived except with the consent
of the Lead Underwriter.

     16. Entire Agreement: Governing Law. The Notice, the Plan and this Option Agreement
constitute the entire agreement of the parties with respect to the subject matter hereof and
supersede in their entirety all prior undertakings and agreements of the Company and the Grantee
with respect to the subject matter hereof, and may not be modified adversely to the Grantee’s
interest except by means of a writing signed by the Company and the Grantee. Nothing in the
Notice, the Plan and this Option Agreement (except as expressly provided therein) is intended to
confer any rights or remedies on any persons other than the parties. The Notice, the Plan and this
Option Agreement are to be construed in accordance with and governed by the internal laws of the
State of Nevada without giving effect to any choice of law rule that would cause the application of
the laws of any jurisdiction other than the internal laws of the State of Nevada to the rights and
duties of the parties. Should any provision of the Notice, the Plan or this Option Agreement be
determined to be illegal or unenforceable, such provision shall be enforced to the fullest extent
allowed by law and the other provisions shall nevertheless remain effective and shall remain
enforceable.

     17. Construction. The captions used in the Notice and this Option Agreement are
inserted for convenience and shall not be deemed a part of the Option for construction or
interpretation. Except when otherwise indicated by the context, the singular shall include the
plural and the plural shall include the singular. Use of the term “or” is not intended to be
exclusive, unless the context clearly requires otherwise.

     18. Administration and Interpretation. Any question or dispute regarding the
administration or interpretation of the Notice, the Plan or this Option Agreement shall be
submitted by the Grantee or by the Company to the Administrator. The resolution of such question
or dispute by the Administrator shall be final and binding on all persons.

     19. Venue and Waiver of Jury Trial. The Company, the Grantee, and the Grantee’s
assignees pursuant to Section 8 (the “parties”) agree that any suit, action, or proceeding arising
out of or relating to the Notice, the Plan or this Option Agreement shall be brought in the United
States District Court for the District of Nevada (or should such court lack jurisdiction to hear
such action, suit or proceeding, in a Nevada state court in the County of Clark) and that the
parties

9

 

shall submit to the jurisdiction of such court. The parties irrevocably waive, to the fullest
extent permitted by law, any objection the party may have to the laying of venue for any such suit,
action or proceeding brought in such court. THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE
OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions
of this Section 19 shall for any reason be held invalid or unenforceable, it is the specific intent
of the parties that such provisions shall be modified to the minimum extent necessary to make it or
its application valid and enforceable.

     20. Notices. Any notice required or permitted hereunder shall be given in writing and
shall be deemed effectively given upon personal delivery, upon deposit for delivery by an
internationally recognized express mail courier service or upon deposit in the United States mail
by certified mail (if the parties are within the United States), with postage and fees prepaid,
addressed to the other party at its address as shown in these instruments, or to such other address
as such party may designate in writing from time to time to the other party.

END OF AGREEMENT

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EXHIBIT A

GLOBAL CASH ACCESS HOLDINGS, INC. 2005 STOCK INCENTIVE PLAN

EXERCISE NOTICE

                    

Attention: Secretary

     1. Effective as of today,                                         , the undersigned (the “Grantee”) hereby elects to
exercise the Grantee’s option to purchase
                     shares of the Common Stock (the “Shares”) of
Global Cash Access Holdings, Inc., (the “Company”) under and pursuant to the Company’s 2005 Stock
Incentive Plan, as amended from time to time (the “Plan”) and the Incentive Stock Option Award
Agreement (the “Option Agreement”) and Notice of Stock Option Award (the “Notice”) dated September
12, 2005. Unless otherwise defined herein, the terms defined in the Plan shall have the same
defined meanings in this Exercise Notice.

     2. Representations of the Grantee. The Grantee acknowledges that the Grantee has
received, read and understood the Notice, the Plan and the Option Agreement and agrees to abide by
and be bound by their terms and conditions.

     3. Rights as Stockholder. Until the stock certificate evidencing such Shares is
issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is
exercised. No adjustment will be made for a dividend or other right for which the record date is
prior to the date the stock certificate is issued, except as provided in Section 10 of the Plan.

     The Grantee shall enjoy rights as a stockholder until such time as the Grantee disposes of the
Shares or the Company and/or its assignee(s) exercises the Right of First Refusal or the Repurchase
Right. Upon such exercise, the Grantee shall have no further rights as a holder of the Shares so
purchased except the right to receive payment for the Shares so purchased in accordance with the
provisions of the Option Agreement, and the Grantee shall forthwith cause the certificate(s)
evidencing the Shares so purchased to be surrendered to the Company for transfer or cancellation.

     4. Delivery of Payment. The Grantee herewith delivers to the Company the full
Exercise Price for the Shares, which, to the extent selected, shall be deemed to be satisfied by
use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in
Section 4(d) of the Option Agreement.

     5. Tax Consultation. The Grantee understands that the Grantee may suffer adverse tax
consequences as a result of the Grantee’s purchase or disposition of the Shares. The Grantee
represents that the Grantee has consulted with any tax consultants the Grantee deems advisable

1

 

in connection with the purchase or disposition of the Shares and that the Grantee is not
relying on the Company for any tax advice.

     6. Taxes. The Grantee agrees to satisfy all applicable federal, state and local
income and employment tax withholding obligations and herewith delivers to the Company the full
amount of such obligations or has made arrangements acceptable to the Company to satisfy such
obligations. In the case of an Incentive Stock Option, the Grantee also agrees, as partial
consideration for the designation of the Option as an Incentive Stock Option, to notify the Company
in writing within thirty (30) days of any disposition of any shares acquired by exercise of the
Option if such disposition occurs within two (2) years from the Date of Award or within one (1)
year from the date the Shares were transferred to the Grantee.

     7. Restrictive Legends. The Grantee understands and agrees that the Company shall
cause the legends set forth below or legends substantially equivalent thereto, to be placed upon
any certificate(s) evidencing ownership of the Shares together with any other legends that may be
required by the Company or by state or federal securities laws:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”) OR ANY STATE SECURITIES LAWS AND
MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE
OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES,
SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN
COMPLIANCE THEREWITH.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER, A RIGHT OF FIRST REFUSAL AND A REPURCHASE
RIGHT HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE
OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE
SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF
THE ISSUER. SUCH TRANSFER RESTRICTIONS, RIGHT OF FIRST REFUSAL AND
REPURCHASE RIGHT ARE BINDING ON TRANSFEREES OF THESE SHARES.

     8. Successors and Assigns. The Company may assign any of its rights under this
Exercise Notice to single or multiple assignees, and this agreement shall inure to the benefit of
the successors and assigns of the Company. Subject to the restrictions on transfer herein set
forth, this Exercise Notice shall be binding upon the Grantee and his or her heirs, executors,
administrators, successors and assigns.

     9. Construction. The captions used in this Exercise Notice are inserted for
convenience and shall not be deemed a part of this agreement for construction or interpretation.

2

 

Except when otherwise indicated by the context, the singular shall include the plural and the
plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless
the context clearly requires otherwise.

     10. Administration and Interpretation. The Grantee hereby agrees that any question or
dispute regarding the administration or interpretation of this Exercise Notice shall be submitted
by the Grantee or by the Company to the Administrator. The resolution of such question or dispute
by the Administrator shall be final and binding on all persons.

     11. Governing Law; Severability. This Exercise Notice is to be construed in
accordance with and governed by the internal laws of the State of Nevada without giving effect to
any choice of law rule that would cause the application of the laws of any jurisdiction other than
the internal laws of the State of Nevada to the rights and duties of the parties. Should any
provision of this Exercise Notice be determined by a court of law to be illegal or unenforceable,
such provision shall be enforced to the fullest extent allowed by law and the other provisions
shall nevertheless remain effective and shall remain enforceable.

     12. Notices. Any notice required or permitted hereunder shall be given in writing and
shall be deemed effectively given upon personal delivery, upon deposit for delivery by an
internationally recognized express mail courier service or upon deposit in the United States mail
by certified mail (if the parties are within the United States), with postage and fees prepaid,
addressed to the other party at its address as shown below beneath its signature, or to such other
address as such party may designate in writing from time to time to the other party.

     13. Further Instruments. The parties agree to execute such further instruments and to
take such further action as may be reasonably necessary to carry out the purposes and intent of
this agreement.

     14. Entire Agreement. The Notice, the Plan and the Option Agreement are incorporated
herein by reference and together with this Exercise Notice constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and the Grantee with respect to the subject matter
hereof, and may not be modified adversely to the Grantee’s interest except by means of a writing
signed by the Company and the Grantee. Nothing in the Notice, the Plan, the Option Agreement and
this Exercise Notice (except as expressly provided therein) is intended to confer any rights or
remedies on any persons other than the parties.

3

 

	 	 	 	 	 
	Submitted by:	 	Accepted by:
	 
	 	 	 	 
	GRANTEE:	 	GLOBAL CASH ACCESS HOLDINGS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 

	Kathryn S. Lever

	 	Title:	 	 
	 	 	 	 	 
	 
	 	 	 	 
	Address:	 	Address:
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 	 	 

4

 

EXHIBIT B

GLOBAL CASH ACCESS HOLDINGS, INC. 2005 STOCK INCENTIVE PLAN

INVESTMENT REPRESENTATION STATEMENT

	 	 	 
	GRANTEE:

	 	Kathryn S. Lever
	COMPANY:

	 	GLOBAL CASH ACCESS HOLDINGS, INC.
	SECURITY:

	 	CLASS A COMMON STOCK
	AMOUNT:
	 	 
	 	 	 
	DATE:
	 	 
	 	 	 

In connection with the purchase of the above-listed Securities, the undersigned Grantee represents
to the Company the following:

     (a) Grantee is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and knowledgeable decision
to acquire the Securities. Grantee is acquiring these Securities for investment for Grantee’s own
account only and not with a view to, or for resale in connection with, any “distribution” thereof
within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

     (b) Grantee acknowledges and understands that the Securities constitute “restricted
securities” under the Securities Act and have not been registered under the Securities Act in
reliance upon a specific exemption therefrom, which exemption depends upon among other things, the
bona fide nature of Grantee’s investment intent as expressed herein. Grantee further understands
that the Securities must be held indefinitely unless they are subsequently registered under the
Securities Act or an exemption from such registration is available. Grantee further acknowledges
and understands that the Company is under no obligation to register the Securities. Grantee
understands that the certificate evidencing the Securities will be imprinted with a legend which
prohibits the transfer of the Securities unless they are registered or such registration is not
required in the opinion of counsel satisfactory to the Company.

     (c) Grantee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under
the Securities Act, which, in substance, permit limited public resale of “restricted securities”
acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the
satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701
at the time of the grant of the Option to the Grantee, the exercise will be exempt from
registration under the Securities Act. In the event the Company becomes subject to the reporting
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days
thereafter (or such longer period as any market stand-off agreement may require) the Securities
exempt under Rule 701 may be resold, subject to the satisfaction of certain of the conditions
specified by Rule 144, including: (1) the resale being made through a broker in an unsolicited
“broker’s transaction” or in transactions directly with a market maker (as said term is defined
under the Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the availability
of certain public information about the Company, (3) the amount of Securities being

1

 

sold during any three month period not exceeding the limitations specified in Rule 144(e), and
(4) the timely filing of a Form 144, if applicable.

     In the event that the Company does not qualify under Rule 701 at the time of grant of the
Option, then the Securities may be resold in certain limited circumstances subject to the
provisions of Rule 144, which requires the resale to occur not less than one year after the later
of the date the Securities were sold by the Company or the date the Securities were sold by an
affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the
Securities by an affiliate, or by a non-affiliate who subsequently holds the Securities less than
two (2) years, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of
the paragraph immediately above.

     (d) Grantee further understands that in the event all of the applicable requirements of Rule
701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A,
or some other registration exemption will be required; and that, notwithstanding the fact that
Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has
expressed its opinion that persons proposing to sell private placement securities other than in a
registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden
of proof in establishing that an exemption from registration is available for such offers or sales,
and that such persons and their respective brokers who participate in such transactions do so at
their own risk. Grantee understands that no assurances can be given that any such other
registration exemption will be available in such event.

     (e) Grantee represents that Grantee is a resident of the state of Nevada.

	 	 	 	 	 	 	 	 	 
	 	 	Signature of Grantee:
	 
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	Kathryn S. Lever
	 
	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	 	 	,	 
	 	 	 	 	 	 	 

2

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