Document:

Exhibit 10.1

June 19,
2006

Mr. Michael
Gavin Isaacs

RE:          Employment offer

Dear
Mr. Isaacs:

Bally Gaming, Inc. (the “Company”) is pleased to offer you
employment under the following terms and conditions. You will start to work at
the Company on the earlier of September 1, 2006, or any date prior to September 1,
2006 when you are released from non-competition obligations, if any, that would
prohibit you from working for the Company (the “Effective Date”). If you accept
employment with the Company you will be an at will employee and, as such,
either you or the Company may terminate your employment at any time with or
without cause, with the rights and obligations of the parties upon termination
of your employment limited strictly to the terms of this letter agreement.

1.             Definitions.

“Cause” means any of the following:  (1) an act or omission which is
dishonest or fraudulent involving work related conduct or the commission
by you of any act or the suffering by you of any occurrence or state of facts,
which renders you incapable of performing your duties under this letter
agreement, or which adversely affects or could reasonably be expected to
adversely affect the Company’s business reputation, (2) a formal charge or conviction of a felony,  a gross misdemeanor involving moral turpitude
or criminal conduct against any person or property, including without
limitation, the Company, (3) your failure to diligently or
effectively perform and comply with your duties under any provision of this
letter agreement or any duty as directed from time to time by the Company,
including the Company’s then current
policies, procedures and rules, (4) any breach by you of any of the
terms of, or the failure to perform any covenant contained in, this letter
agreement, (5) your disclosure, improper use or of or failure to protect
the Company’s confidential, proprietary or trade secret information, (6) your death or upon some
other condition which renders you unable to perform the essential functions of
your job, with or without accommodation,  (7) failure to comply with any provision
of the gaming laws of the State of Nevada or the rules and regulations of
the Nevada Gaming Control Board or the Nevada Gaming Commission or any gaming
law, ordinance, rule or regulation of any city or county having
jurisdiction, or the gaming laws, regulations and rules of any other
nation, state, county or other jurisdiction in which the Company may be doing
business at any time which will materially and negatively affect the
registration and licensing of the Company, including failure to maintain or have suspended, revoked or
denied any applicable license, permit or card required by the state or a
political subdivision thereof,
or (8) your commission of any action or the existence of any state
of facts which would constitute “cause” under Nevada law.

“Salary Continuation” means the Company’s continued payment of (1) your then-current
base salary on normal paydays following termination of your employment with the
Company and (2) during the first two years of this Agreement, the
allowance provided for under Section 2(G) of this letter agreement,
paid under such 

 

circumstances described in further detail in this letter agreement,
less standard withholding and offset by all income earned from other employment
during any period of time that you receive any Salary Continuation.

2.             Compensation and Duties.

A.            Position and Title. You are offered the position of Executive
Vice President and Chief Operating Officer (COO). You will report to the Chief
Executive Officer of the Company. Your duties will include responsibility for
the Bally Gaming business unit, along with any other related duties that the
Chief Executive Officer may assign to you. However, the duties set forth above
shall be subject to the following express and strict limitations:

a.                                       For a period of one year from the Effective
Date of this agreement you will not solicit any employee from your
former employer.

b.                                      You will maintain strict compliance with any
obligations that you may have to any third party, including your former
employer, to maintain their confidential, proprietary or trade secret
information. In this regard, if any of the job duties or tasks assigned to you
during your employment with the Company might (no matter how small the risk)
require you to use or disclose confidential, proprietary or trade secret
information of your former employer, you must inform our legal department of
this risk prior to engaging in the task or duty. This reporting mechanism will
allow us to adjust, modify or eliminate such duties or task. You should inform
our legal department of the problem without disclosing the underlying
confidential, proprietary or trade secret information.

c.                                       By
your signature below, you agree and acknowledge that you believe that you can
perform the duties set forth above and simultaneously maintain compliance with any obligations that you may
have to any third party, including your former employer, to maintain their confidential,
proprietary or trade secrets information, that the Company has not induced you
to breach any terms of any agreement that you may have and that the Company’s
assessment that you can perform the duties without breaching your former
employer’s confidences or using their confidential, proprietary or trade secret
information is based, in part, on your representations to us.

B.            Salary; Signing Bonus. Your base salary will be $340,000 a year
beginning on the Effective Date. On the second and third anniversary of the
Effective Date and each year thereafter, your performance and salary will be
reviewed by the CEO and or the Board of Directors as they determine
appropriate.

In addition to salary
compensation, you will be eligible to participate in certain employee benefit
programs established by Bally upon fulfillment of the eligibility requirements
for each program. These programs include medical, dental, vision, FSA, life and
disability insurance. Participation in these plans is optional and you share a
portion of the expense. Bally also offers a 401(k) savings plan to
employees after three months of employment. Bally reserves the right to modify
or discontinue any benefit program which it maintains.

You accrue vacation from the date of hire not to be
taken until your six-month anniversary. You will be entitled to a maximum of twenty
days paid vacation per year subject to company policy on carryover provisions
during the term of your employment, the time for such vacation to be determined
by mutual agreement.

You will be paid, within ten
(10) days of signing this letter agreement, a signing bonus of $10,000
dollars.

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C.            Stock Options. Subject to the approval of the Board of Directors of Bally
Technologies Inc., on the Effective Date you will be granted an option to
acquire 150,000 shares of Bally Technologies Inc. common stock at the per-share
exercise price which will be equal to the market price of a common share of
Bally Technologies Inc. as of the close of business on the Effective Date,
referred to below as the “Option”. You acknowledge and agree that these Options
constitute a material inducement for you to accept your new employment with the
Company, that the Options will not be issued pursuant to the Company’s 2001
Long Term Incentive Plan but will be issued subject to substantially similar
terms and conditions, and that the underlying shares will not be registered
under the Securities Act of 1933, as amended (the “Securities Act”). As a
result there will be certain federal security law restrictions on your ability
to sell the underlying shares.

The Option shall become
exercisable in four installments of 37,500 on each of the first four
anniversary dates after the Effective Date, subject to your continued
employment through each such date. The Option granted to you will be granted in
accordance with the Company’s then-current policies and procedures and you
agree that you will cooperate with the Company in completing any registrations,
filings or other documentation that may be required in conjunction with the
Option granted to you.

D.            Restricted
Stock. Subject to the
approval of the Board of Directors of Bally Technologies Inc., on the Effective
Date you will be granted 50,000 shares of Bally Technologies Inc. restricted
common stock, referred to below as the “Restricted Stock”. These shares will be
restricted such that, subject to compliance with federal and state securities
laws, they will be available for sale by you as follows (subject to your
continued employment through each such date):

25,000
shares after the second anniversary of the Effective Date;

12,500
shares after the third anniversary of the Effective Date; and

12,500
shares after the fourth anniversary of the Effective Date.

The Restricted Stock granted to you will be granted pursuant to the
Company’s 2001 Long Term Incentive Plan and in accordance with the Company’s
then-current policies and procedures and you agree that you will cooperate with
the Company in completing any registrations, filings or other documentation
that may be required in conjunction with the Restricted Stock granted to you.

E.             Salary Continuation. If the Company terminates your employment
without Cause after the Effective Date, the Company will pay you Salary
Continuation for a period of twelve months immediately following such
termination of your employment less standard withholdings and offset by any
income you earn from any other employment during the Salary Continuation period.
You will not receive Salary Continuation for any period of time following your
termination if the Company terminates your employment for Cause or if you
terminate this letter agreement for any reason at any time, except as follows:

a.                                       If you terminate your employment as a result
of and within one year of a reduction in salary, the Company will pay you
Salary Continuation for a period of twelve months immediately following such
termination of employment less standard withholdings and offset by any income
you earn from any other employment during the Salary Continuation period.

b.                                      If the Company increases your salary to less
than $490,000 on the second anniversary of the Effective Date, you will have
the option of either (i) accepting the compensation offered by the Company
as your new salary, or (ii) within 30 days of the second anniversary of
the Effective Date, terminating your employment, in which event the Company
will have the option to either (1) discontinue any payments due to you
pursuant to this letter agreement, 

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including but not limited
to the Salary Continuation, in which event your obligations in the Covenant not
to Compete in Section 3(A) of this letter agreement would terminate
immediately or (2) pay you the Salary Continuation for a period of twelve
months immediately following such termination of your employment less standard
withholdings and offset by any income you earn from any other employment during
the Salary Continuation period, in which event all of your other obligations
under this letter agreement, including but not limited to your obligations
pursuant to the Covenant not to Compete in Section 3(A) of this
letter agreement, would remain in full force and effect. In the event that you
do not terminate your employment pursuant to clause (ii) above within such
30 day period, you will be deemed to have accepted the compensation pursuant to
clause (i) above.

Notwithstanding
anything to the contrary in this letter agreement, if the Company determines (a) that
on the date your employment with the Company terminates or at such other time
that the Company determines to be relevant, you are a “specified employee” (as
such term is defined under Section 409A of the Internal Revenue Code of
1986 (the “Code”)) of the Company and (b) that any payments to be provided
to you pursuant to this Agreement are or may become subject to the additional
tax under Section 409A(a)(1)(B) of the Code or any other taxes or
penalties imposed under Section 409A of the Code (“Section 409A Taxes”)
if provided at the time otherwise required under this Agreement then such
payments shall be delayed until the date that is six months after date of your “separation
from service” (as such term is defined under Section 409A of the Code)
with the Company, or such shorter period that, as determined by the Company, is
sufficient to avoid the imposition of Section 409A Taxes.

F.             Management
Incentive Program. You
will be entitled to participate in the Company’s Management Incentive Program (“MIP”),
which along with all Company incentive programs is subject to change at any
time. The current MIP entitles you to receive a target performance bonus in the
amount of $204,000 per year, with a maximum of $347,000 per year. You will be
subject to the terms and conditions of the MIP, which will be provided to you
separately from this letter agreement. For the Company’s 2007 fiscal year
ending on June 30, 2007 (“FY 2007”), you will receive a pro rata portion
of the existing MIP based on your tenure during FY 2007. The Company may pay
you up to 30% of the amount of any performance bonus you have earned in shares
of restricted stock of the Company that shall vest and become exercisable by
you at the discretion of the Board of Directors up to two years after such
shares are granted. The allowance provided for pursuant to Section 2(G) shall
not be calculated as part of your salary for determining incentive targets and
awards under the MIP.

G.            Other Consideration.
During the first two full years of your employment, you will be provided
a $150,000 annual allowance, to be paid quarterly, in order to transition you
from the former status of an expatriate to the new status as a permanent
US-based employee. The allowance is intended to support other benefits
currently being provided to you and all of which may be taxable to you. On the
second anniversary of your employment, the allowance will end.

3.             Employment Covenants.

A.            Covenant not to compete. You agree not to compete with the Company for
as long as the Company employs you. You agree not to compete with the Company
for one year after your employment with the Company terminates if the Company
terminates you for Cause, or subject to Section 2(E)(b)(ii)(1) of
this letter agreement, if you quit for any reason (the “Non-Compete Period”); provided
however, that the Non-Compete Period shall be reduced to three months in
the event that (a) Aristocrat Gaming or any of its affiliates (as such

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term is defined in Rule 405
of the Securities Act) acquire a controlling interest in Bally Technologies, Inc.,
and (b) you decide to quit for any reason within three months of the
completion of such acquisition.

If you are terminated without Cause or you terminate due to a reduction
in salary, you agree not to compete with the Company for twelve months
following your termination.

To “compete” means to establish, engage, or be connected with, directly
or indirectly, any person or entity engaged in a business in competition with
the business of the Company (including any of the Company’s subsidiaries or
affiliates) in any area where the Company does business, whether as an
employee, owner, partner, agent, employee, officer, consultant, advisor,
stockholder (except as the beneficial owner of not more than 5 percent of the
outstanding shares of a corporation, any of the capital stock of which is
listed on any national or regional securities exchange or quoted in the daily
listing of over-the-counter market securities and, in each case, in which you do
not undertake any management or operational or advisory role) or in any other
capacity, for your own account or for the benefit of any person or entity.

You acknowledge and agree that the scope and duration of this covenant
not to compete are reasonable and fair. However, if a court of competent
jurisdiction determines that this covenant is overly broad or unenforceable in
any respect, you and the Company agree that the covenant shall be enforced to
the greatest extent the court deems appropriate and that the court may modify
this covenant to that extent.

B.            Covenant not to
solicit customers, employees, or consultants. You agree that during your employment with
the Company and for one year after your employment ends for any reason, you
shall not, directly or indirectly, (i) aid or endeavor to solicit or
induce any other employee or consultant of the Company to leave the Company to
accept employment of any kind with any other person or entity, or (ii) solicit
the trade or patronage of any of the Company’s customers (which includes
customers of any of the Company’s subsidiaries or affiliates) or of anyone who
has traded or dealt with the Company with respect to any technologies,
services, products, trade secrets, or other matters in which the Company is
active.

C.            Confidential
information. You
agree that your work for the Company will give you access to confidential
matters of the Company not publicly known such as proprietary matters of a
technical nature (including but not limited to know-how, technical data, gaming
processes, gaming equipment, techniques, developments) and proprietary matters
of a business nature (including but not limited to information about costs,
profits, markets, sales, lists of customers, and matters received by the
Company in confidence from other parties), collectively referred to as “Confidential
Matters.” Some Confidential Matters may be entitled to protection as “Trade
Secrets,” as that term is defined in N.R.S. 600A.030(5), the Restatement of
Torts, and case law interpreting the same.

You agree to keep secret all such Confidential Matters and agree not to
directly or indirectly, other than is necessary in the business of the Company
and the scope of your employment, disclose or use any such Confidential Matters
at any time except (i) with prior written consent of the Company, (ii) as
necessary in any judicial or arbitration action to enforce the provisions of
this letter agreement, (iii) in connection with any judicial or
administrative proceeding to the extent required by law, and (iv) as
otherwise required by law. You agree that all written materials (including
correspondence, memoranda, manuals, notes, and notebooks) and all models,
mechanisms, devices, drawings, and plans in your possession from time to time
(whether or not written or prepared by you) embodying Confidential Matters
shall be and remain the sole property of the Company, and you will use all
reasonable precautions to assure that all such written materials and models,
mechanisms, devices, drawings, and plans are properly protected and kept from
unauthorized persons. You further agree to

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deliver all Confidential Matters, including copies, immediately to the
Company on termination of your employment for any reason, or at any time the
Company may request.

After termination of your employment with the Company for any reason,
you shall not reveal directly or indirectly to any person or entity or use for
your personal benefit (including without limitation, for the purpose of
soliciting business, whether or not competitive with any business of the
Company) any Confidential Matters. To the extent that any Confidential Matters
are considered by the Company as Trade Secrets, you agree that all limitations
on use of these Trade Secrets shall last forever. You further agree that immediately
upon or after termination, you will deliver to the Company all memoranda,
notes, reports, lists, models, mechanisms, devices, drawings or plans and other
documents (and all copies thereof) in your possession relating to the business
of the Company or its subsidiaries and affiliates.

D.            Intellectual
Property. You shall
promptly disclose in writing to the Company all inventions, discoveries,
concepts, ideas, developments, improvements, and innovations, whether or not
patentable, and the expressions of all inventions, discoveries, concepts,
ideas, developments, improvements, and innovations, whether or not
copyrightable (collectively “Inventions”), conceived, developed, or first
actually reduced to practice by you, either alone or with others, during your
employment with the Company or during the first six months after your
employment with the Company ends for any reason, that (i) relate in any
manner to the existing or contemplated business or research activities of the
Company, (ii) are suggested by or result from your work for the Company;
or (iii) result from the use of time, materials, or facilities of the
Company. All Inventions you conceive, develop, or first actually reduce to
practice, either alone or with others, while employed by the Company that
relate in any manner to the existing or contemplated business or research
activities of the Company shall be the exclusive property of the Company. You
assign to the Company your entire right, title, and interest in and to all such
Inventions and to all unpatented Inventions that you now own, except those
specifically described in a statement that has been separately executed by you
and an officer of the Company and attached hereto, provided, however, that if
no such list is attached, you represent and warrant that there are no such
Inventions. You will, at the request and expense of the Company, execute
specific assignments to any such Inventions and execute, acknowledge, and
deliver patent applications and such other documents (including but not limited
to all provisionals, continuations, continuations-in-part, continued
prosecution applications, extensions, re-issues, re-examinations, divisionals
and foreign counterparts) and take such further action as may be considered
necessary by the Company at any time, whether during your employment with the
Company or after it terminates for any reason, to obtain and define letters
patent in any and all countries and to vest title to such Inventions and
related patents or patent applications in the Company or its assignees. Any
Invention that you disclose to a third person or describe in a patent
application filed by you or in your behalf during your employment with the
Company or within six months after your employment with the Company terminates
for any reason shall be presumed to have been conceived or made by you during
your employment with the Company unless proved to have been conceived and made
by you after the expiration or termination of this letter agreement.

E.             Non-disparagement. You and the Company each agree that, during
your employment with the Company and after your employment with the Company
terminates for any reason, neither shall, publicly or privately, disparage or
make any statements (written or oral) that could impugn the integrity, acumen (business
or otherwise), ethics, or business practices of the other (including, in the
case of the Company, its affiliates and subsidiaries), except, in each case, to
the extent (but solely to the extent) necessary (i) in any judicial or
arbitration action to enforce the provisions of this letter agreement, or (ii) in
connection with any judicial or administrative proceeding to the extent
required by applicable law, or (iii) as otherwise required by law.

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F.             Injunctive relief;
jurisdiction. You
acknowledge that the Company will suffer irreparable injury, not readily
susceptible of valuation in monetary damages, if you breach any of your
obligations under this letter agreement. Accordingly, you agree that the
Company will be entitled, at its option, to injunctive relief against any
breach or prospective breach by you of your obligations under this section in
any federal or state court of competent jurisdiction sitting in Nevada, in
addition to monetary damages and any other remedies available at law or in
equity. You hereby submit to the jurisdiction of such courts for the purposes
of any actions or proceedings instituted by the Company to obtain such
injunctive relief, and agree that process may be served on you by registered
mail, addressed to your last address known to the Company, or in any other
manner authorized by law. The Company may also suspend any salary continuation
payments during any period that you are in breach of this letter agreement and
the applicable restricted period shall be extended by any period that you are
in breach.

G.            Material
inducements; Reliance. The
restrictive covenants and other provisions in this letter agreement are
material inducements to the Company entering into and performing its
obligations under this letter agreement. Accordingly, in the event of any
breach of the provisions of this section by you, in addition to all other
remedies at law or in equity possessed by the Company, including but not
limited to the right to enforce the covenants you have agreed to in this letter
agreement, the Company shall have the right to terminate this letter agreement
and your employment with the Company and not pay any amounts payable to you
under this letter agreement. In the event any of the provisions of this letter
agreement are individually deemed unlawful, any remaining provisions of this
letter shall remain in full force and effect.

In addition, the Company is and will be acting in reliance upon your
full compliance with this letter agreement, including but not limited to,
employing you, foregoing looking at other candidates, the termination of high
level employees, restructuring and reassigning employees and the Company’s
payment to you of the signing bonus set forth in paragraph 2(B). In particular,
you agree and the Company relies upon your agreement to not engage in any form
of communication or discussion with any competitor of the Company, from the
date you sign this letter agreement until one (1) year from the date you
sign this letter agreement, for the purpose of the competitor retaining your
services, whether as an employee, independent contractor or otherwise. This
prohibition is meant to and does include your agreement not to discuss or
communicate with any competitor of the Company on the subject of you becoming
employed by the competitor in any capacity whatsoever.

Except as modified by this letter, the terms and conditions of your
employment with the Company shall be subject to the Company’s regular
employment policies and practices and benefits as may be in effect from time to
time. This letter comprises the entire agreement between you and the Company
and supersedes all other oral and written agreements previously entered into by
you and the Company concerning the same subject matter. If accepted, this offer
will not create an agreement of employment for any specific term or otherwise
alter the at-will nature of your employment relationship with the Company. If
you accept this offer, either you or the Company may terminate your employment
at any time with or without cause.

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If you accept this offer of employment, please sign below and return
this letter to me. A copy is enclosed for your records. Once signed and
returned, this letter will comprise a binding agreement between you and the
Company. If you have any questions about its meaning, you are urged to consult
with your attorney.

Sincerely,

Bally
Gaming, Inc.

	
  /s/ Richard Haddrill

  	
   

  
	
  By:  Richard Haddrill

  Chief Executive Officer

  	
   

  

 

ACCEPTANCE

I have read the foregoing letter, and I have reviewed it with counsel
or have had the opportunity to do so. I understand and accept its terms.

	
  /s/ Michael Gavin Isaacs

  	
   

  
	
  Michael
  Gavin Isaacs

  	
   

  

 

 8Exhibit
10.2

THIRD
AMENDMENT TO

HADDRILL EMPLOYMENT AGREEMENT

This Third Amendment to the Employment Agreement (the “Third
Amendment”) is made and entered into as of June    , 2006 (the “Effective Date”), by and
between Bally Technologies, Inc., a Nevada corporation (the “Company”),
and Richard Haddrill (“Haddrill”).

WHEREAS, the Company and Haddrill are parties to that
certain Employment Agreement dated as of June 30, 2004, as amended on December 22,
2004 and June 13, 2005 (as amended, “Employment Agreement”)
pursuant to which Haddrill is employed as the Company’s Chief Executive
Officer;

WHEREAS, the Employment Agreement is scheduled to
terminate on October 1, 2007 (the “Original Expiration Date”); and

WHEREAS, the Company and Haddrill desire to further amend
the Employment Agreement to grant additional non-statutory stock options and
restricted stock and to extend the term of the Employment Agreement until January 1,
2009, in each case, in accordance with and subject to the terms and conditions
of this Third Amendment.

NOW THEREFORE, on the basis of the foregoing premises
and in consideration of the mutual covenants and agreements contained herein,
the parties hereto agree as follows:

1.             The Company and Haddrill agree that the term of the
Employment Agreement and Haddrill’s employment by the Company is hereby
extended until, and that the Employment Agreement shall terminate in accordance
with Section 3 thereof on January 1, 2009, unless otherwise terminated as provided in the
Employment Agreement or renewed as mutually agreed between the parties. The
period commencing on the Original Expiration Date and ending on the date
Haddrill’s employment with the Company terminates is referred to herein as the “Extension
Term.”

2.             During
the Extension Term Haddrill shall continue to serve as Chief Executive Officer
of the Company on the terms and conditions described in Section 2 of the
Employment Agreement.

3.             During
the Extension Term, in consideration of Haddrill’s continued service as Chief
Executive Officer, Haddrill shall continue to receive the compensation and
benefits currently provided to him on the terms and conditions set forth in
Sections 4(a) and (b) of the Employment Agreement, except that
effective as of July 1, 2006, (i) Haddrill’s base salary shall be increased
to $998,000 per year (rather than $980,000 as currently provided for under the
Employment Agreement) and (ii) Haddrill shall be entitled to five weeks of
vacation time per year (rather than four weeks as currently provided for under
the Employment Agreement).

4.             As
soon as practicable following the Effective Date, subject to approval by the
Compensation Committee of the Board of Directors of the Company (the “Committee”),
the Company shall grant Haddrill additional non-statutory stock options (the “Extension
Options”) to acquire 200,000 shares of the Company’s common stock under the
Company’s Amended and Restated 2001 Long Term Incentive Plan (the “Plan”),
at an exercise price per share equal to the fair market value of a share of the
Company’s common stock on the date of grant (as determined 

 1
 

 

in accordance with the Plan). The Extension Options
shall vest and be subject to the terms and conditions set forth on Schedule A-2
hereto.

5.             The
Company hereby agrees that, subject to approval by the Committee, Haddrill will
be permitted to transfer his outstanding stock options and other equity
compensation awards to a trust in which Haddrill and his immediate family
members have more than fifty percent of the beneficial interest and that
Hadrrill retains the voting power of, for estate planning purposes; provided
that any such trust agrees that the awards remain subject to all of their
existing terms and conditions and executes documentation reasonably
satisfactory to the Company evidencing such agreement.

6.             As
soon as practicable following the Effective Date, subject to approval by the
Committee, the Company shall grant Haddrill a number of shares of restricted
stock under the Plan (the “Extension Restricted Stock”), having a value
equal to $1.4 million dollars, as calculated as of the date of grant in
accordance with Schedule B-2 hereto. The Extension Restricted Stock shall
vest and be subject to the terms and conditions set forth on Schedule B-2
hereto.

7.             The
Company hereby confirms that in accordance with the Section 9 of the
Employment Agreement, Haddrill shall, subject to applicable law and the Company’s
insider trading policy, be entitled to sell the shares of the Company’s common
stock acquired by Haddrill pursuant to the Employment Agreement on or before June 30,
2005, at any time after September 30, 2006.

8.             Except as expressly modified by this Third Amendment,
the Employment Agreement shall remain unchanged and shall remain in full force
and effect.

 [signatures on next page]

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IN WITNESS WHEREOF, the Company and Haddrill have duly
executed this Third Amendment as of the date first above written.

BALLY TECHNOLOGIES, INC.

	
  

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Richard Haddrill

  

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Schedule
A-2

EXTENSION
OPTIONS

1.             The
Company shall grant to Haddrill, as soon as practicable following the Effective
Date, the Extension Options pursuant to the terms of the Plan.

2.             The
Extension Options shall vest as follows: 
(i) 66,667 shares shall vest on February 28, 2008, (ii) an
additional 66,667 shares shall vest on July 31, 2008, and (iii) the
final 66,666 shares shall vest on January 1, 2009, in each case, subject
to Haddrill’s continuous employment by the Company as Chief Executive Officer
through each such date.

3.             If
Haddrill’s employment with the Company is terminated under paragraphs 7(b) or
7(c) of the Employment Agreement, and such termination of employment
occurs after October 1, 2007, in addition to the other compensation and
benefits provided under the Employment Agreement, the vesting of the Extension
Options shall be pro-rated through the month in which the date of termination
occurs (taking into account that portion of the award that has already vested
in accordance with its terms), based upon the number of full months between October 1,
2007 and the date of Haddrill’s termination of employment divided by 15 months.

4.             In
addition to the above, notwithstanding any provision of the Employment
Agreement, or the Plan to the contrary, in the event of a Change of Control (as
defined in the Employment Agreement): (i) if such Change of Control is
consummated on or prior to October 1, 2007, and, within one year following
such Change of Control Haddrill’s employment with the Company (or any
successor) is terminated under paragraphs 7(b) or 7(c) of the
Employment Agreement, the Extension Options shall become immediately and fully
vested and exercisable effective as of immediately prior to the date of such
termination of employment and (ii) if such Change of Control is
consummated after October 1, 2007, the Extension Options shall become
immediately and fully vested and exercisable effective as of immediately prior
to such Change of Control.

5.             Once
the Extension Options become vested and exercisable hereunder, they shall
remain exercisable until the tenth anniversary of the date of grant thereof
without regard to whether Haddrill continues to be employed by the Company
prior to or on such date.

6.             Except
as described in this Schedule A-2, upon a termination of Haddrill’s
employment with the Company (or any successor) for any reason, the unvested
portion of the Extension Options at the time of such termination of employment
(after giving effect to the pro-rated or accelerated vesting described in this
Schedule A-2, if any) shall terminate effective as of the date of
termination.

 4
 

 

Schedule
B-2

EXTENSION
RESTRICTED STOCK

1.             The
Company shall grant to Haddrill, as soon as practicable following the Effective
Date, the Extension Restricted Stock pursuant to the terms of the Plan. The
number of shares of common stock subject to the Extension Restricted stock
shall be determined by dividing $1.4 million dollars by the average per share
closing price of the Company’s common stock on the stock exchange in which the
stock is principally traded for the 20 business days immediately prior to the
date of the grant or such other method as the parties shall mutually agree to,
provided that such method complies with the Plan.

2.             The
Extension Restricted Stock shall vest as follows:  (i) 28.6% of the shares shall vest on July 1,
2008 and (ii) the remaining shares shall vest on January 1, 2009, in
each case, subject to Haddrill’s continuous employment by the Company as Chief
Executive Officer through each such date.

3.             If
Haddrill’s employment with the Company is terminated under paragraphs 7(b) or
7(c) of the Employment Agreement, in addition to the other compensation
and benefits provided under the Employment Agreement, the vesting of the
Extension Restricted Stock shall be pro-rated through the 12-month period
following the month in which the date of termination occurs (taking into
account that portion of the award that has already vested in accordance with
its terms), based upon the number of full months between July 1, 2006 and
the date that is 12 months following the date of Haddrill’s termination of
employment divided by 30 months.

4.             In
addition to the above, notwithstanding any provision of the Employment
Agreement, or the Plan to the contrary, in the event of a Change of Control (as
defined in the Employment Agreement) the Extension Restricted Stock shall
become immediately and fully vested effective as of immediately prior to such
Change of Control.

5.             Except
as described in this Schedule B-2, upon a termination of Haddrill’s
employment with the Company (or any successor) for any reason, the unvested
portion of the Extension Restricted Stock at the time of such termination of
employment (after giving effect to the pro-rated or accelerated vesting
described in this Schedule B-2, if any) shall be forfeited effective as
of the date of termination.

 

 5

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