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EXHIBIT 4.3
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DESCRIPTION OF SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES
EXCHANGE ACT OF 1934
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Common Stock
 
The following description is based on relevant portions of the Delaware General Corporation Law (the “DGCL”) and our Fourth Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”). This summary is a description of the material terms of, and is qualified in its entirety by, reference to our Certificate of Incorporation, a copy of which is filed as an exhibit to our previous filings with the SEC and incorporated by reference to the Annual Report on Form 10-K of which this Description of Securities is attached as an exhibit.
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Authorization; Outstanding Shares. We are authorized to issue 200,000,000 shares of common stock, par value $0.0001 per share, of which 8,811,423 shares were issued and outstanding as of March 18, 2022. We may amend from time to time our Certificate of Incorporation to increase the number of authorized shares of common stock. Any such amendment would require the approval of the holders of a majority of the voting power of the shares entitled to vote thereon.
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Voting Rights. Holders of our common stock are entitled to one (1) vote for each share on all matters submitted to a stockholder vote. The common stock does not have cumulative voting rights. Therefore, holders of a majority of the shares of common stock voting for the election of directors can elect all of the directors. Holders of our common stock representing a majority of the voting power of our capital stock issued, outstanding and entitled to vote, represented in person or by proxy, are necessary to constitute a quorum at any meeting of stockholders.
Dividends.  Subject to limitations under Delaware law and the rights of holders of any class of stock having preference over our common stock, holders of our common stock are entitled to share in all dividends that our board of directors, in its discretion, declares from legally available funds. 
Liquidation; Dissolution. In the event of a liquidation, dissolution or winding up, each outstanding share entitles its holder to participate pro rata in all assets that remain after payment of liabilities and after providing for each class of stock, if any, having preference over the common stock. 
Other Rights and Restrictions.  Our common stock has no pre-emptive rights, no conversion rights and there are no redemption provisions or sinking fund provisions applicable to the common stock.
Listing. Our common stock is quoted on the Nasdaq Capital Market under the symbol “ISPC.” As of March 18, 2022, there were 67 record holders of our common stock.
 
Transfer Agent and Registrar. The transfer agent and registrar for our common stock is Continental Stock Transfer & Trust. The transfer agent and registrar’s address is 1 State Street, 30th Floor, New York, NY 10004 and its telephone number is 1-212-509-4000.
 
Anti-Takeover Provisions
 
Provisions of our Certificate of Incorporation and Second Amended and Restated Bylaws (“Bylaws”) could make it more difficult to acquire us by means of a merger, tender offer, proxy contest, open market purchases, removal of incumbent directors and otherwise. These provisions, which are summarized below, are expected to discourage types of coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of us to first negotiate with us. We believe that the benefits of increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging takeover or acquisition proposals because negotiation of these proposals could result in an improvement of their terms.

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Vacancies.  Newly created directorships resulting from any increase in the number of directors and any vacancies on the board of directors resulting from death, resignation, disqualification, removal or other cause shall be filled by a majority of the remaining directors on the board.
Bylaws.  Our Certificate of Incorporation and Bylaws authorize the board of directors to adopt, repeal, rescind, alter or amend our bylaws without stockholder approval.
Removal.  Except as otherwise provided, a director may be removed from office only by the affirmative vote of the holders of not less than a majority of the voting power of the issued and outstanding stock entitled to vote.
Calling of Special Meetings of Stockholders.  Our Bylaws provide that special meetings of stockholders for any purpose or purposes may be called at any time only by the board of directors or by our Secretary following receipt of one or more written demands from stockholders of record who own, in the aggregate, at least 15% the voting power of our outstanding stock then entitled to vote on the matter or matters to be brought before the proposed special meeting.
Cumulative Voting.  Our certificate of Incorporation does not provide for cumulative voting in the election of directors, which would allow holders of less than a majority of the stock to elect some directors.
Staggered Board.  Our Bylaws provide for a board of directors divided into three classes with only one class of directors being elected in each year and each class (except for those directors appointed prior to our 2022 annual meeting of stockholders) serving a three-year term. As a result, only a minority of the board of directors will be considered for election at every annual meeting of stockholders, which may make the removal of management more difficult and may discourage transactions that otherwise could involve payment of a premium over prevailing market prices for our securities.

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​glxz-ex101_7.htm

Exhibit 10.1

 

Fortress Credit Corp.

1345 Avenue of the Americas, 46th Floor New York, NY 10105

 

 

March 16, 2022

 

 

c/o Galaxy Gaming, Inc.

6480 Cameron Street, Suite 305
Las Vegas, NV 89118

Attention:  Harry Hagerty, CFO

Telephone:  (702) 939-3255

E-mail:  hhagerty@GalaxyGaming.com

With a copy to:

Latham & Watkins LLP
12670 High Bluff Drive
San Diego, CA 92130 
Attention:  Sony Ben-Moshe, Esq.
Telephone:  (858) 523-3925
Facsimile:  (858) 523-5450

Re:Consent and Waiver to Credit Agreement 

Ladies and Gentlemen:

Reference is made to that certain Term Loan Credit Agreement (the “Credit Agreement”), dated as of November 15, 2021, by and among Galaxy Gaming, Inc. (the “Borrower”), the Lenders party thereto from time to time, and Fortress Credit Corp., as administrative agent and collateral agent for the Lenders (in such capacities, the “Agent”). Capitalized terms used but not defined herein shall have the meaning set forth in the Credit Agreement.

 

Borrower has acknowledged that it is currently in default under the Credit Agreement as a result of its failure to comply with the requirement in Section 7.14 of the Credit Agreement not to permit, on the last Business Day of each calendar month, more than the Dollar Equivalent of $1,000,000 (or such greater amount determined by the Agent in its sole discretion) in the aggregate to be on deposit in Isle of Man deposit or securities accounts which are not subject to Control Agreements (as such term is defined in the Guaranty and Security Agreement) or other security arrangements acceptable to the Agent (the “Existing Default”) for the months of November 2021, December 2021, January 2022 and February 2022 (the “Specified Compliance Periods”). Borrower has requested that the Agent and Required Lenders waive, and the Agent and the Lenders signatory hereto constituting the Required Lenders agree to waive, the Existing Default for the Specified Compliance Periods indicated above.

 

In consideration of the premises, the agreements, and provisions herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows:

 

Exhibit 10.1

 

(1)Subject to the terms set forth herein, the Agent and the Required Lenders hereby waive the Existing Default and such waiver shall apply only to the foregoing Specified Compliance Periods.

 

(2)Except to the extent expressly set forth in this letter agreement, the execution, delivery and performance of this letter agreement shall not (i) limit, impair, constitute an amendment, forbearance or waiver by, or otherwise affect any right, power or remedy of, the Agent or any Lender under the Credit Agreement or any other Loan Document or waive, affect or diminish any right of the Agent to demand strict compliance and performance therewith, (ii) constitute a waiver of, or forbearance with respect to, any Default or Event of Default, whether known or unknown or (iii) alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or in any of the other Loan Documents, all of which are ratified and affirmed in all respects and shall continue in full force and effect. The foregoing waiver shall not be deemed to operate as, or obligate the Agent or the Lenders to grant any future waiver or modification of, or consent to, or departure from, any provision, term or departure under the Credit Agreement.

 

(3)(a) In consideration of the agreements of the Agent and the Required Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower, on behalf of itself and the other Loan Parties, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges the Agent, each Lender, and each of their respective successors and assigns, and their respective present and former shareholders, members, managers, affiliates, subsidiaries, divisions, directors, officers, attorneys, employees, agents, legal representatives and other representatives (the Agent, each Lender and all such other Persons being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”), of and from any and all demands, actions, causes of action, suits, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a “Claim” and collectively, “Claims”) of every kind and nature, known or suspected, at law or in equity, which any Loan Party may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the date of this letter agreement by virtue of their relationship to Borrower and the other Loan Parties in connection with this letter agreement, the Credit Agreement, any of the other Loan Documents or any of the transactions hereunder or thereunder.  Borrower, on behalf of itself and the other Loan Parties, hereby represents to the Releasees that no Loan Party has assigned or transferred any interest in any Claims against any Releasee prior to the date hereof. Borrower, on behalf of itself and the other Loan Parties, understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense to any Claim and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

(b)Borrower agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered will affect in any manner the final, absolute and unconditional nature of the release set forth above.

(c)Borrower, on behalf of itself and the other Loan Parties, hereby absolutely, unconditionally and irrevocably covenants and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released, remised and discharged by any Loan Party pursuant to and subject to the terms of paragraph 3(a) above. If any Loan Party violates the foregoing covenant, Borrower agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all reasonable and documented attorneys' fees and costs incurred by any Releasee as a result of such violation.

 

 

Exhibit 10.1

 

(4)Borrower, on behalf of each Loan Party, represents and warrants to the Agent and the Lenders that no Default or Event of Default (other than the Existing Default) has occurred and is continuing.

 

(5)On and after the date of this letter agreement, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as affected by this letter agreement.

 

(6)To the extent that any of the terms and conditions in any of the Loan Documents shall contradict or be in conflict with any of the terms or conditions of the Credit Agreement after giving effect to this letter agreement, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Credit Agreement as modified or affected hereby.

 

This letter agreement shall be governed by and construed in accordance with the laws of the State of New York. The parties may execute this letter agreement in multiple counterparts, each of which constitutes an original as against the party that signed it, and all of which together constitute one agreement. This letter agreement is effective upon delivery of one executed counterpart from each party to each other party. The signatures of all parties need not appear on the same counterpart. The delivery of signed counterparts by facsimile or email transmission (including Adobe Portable Document Format or other electronic format) that includes a copy of the sending party’s signature is as effective as signing and delivering the counterpart in person.

 

 

[Signatures on following pages]

 

 

Exhibit 10.1

 

IN WITNESS WHEREOF, the parties have duly executed this letter agreement as of the date first above written.

 

FORTRESS CREDIT CORP., as Agent 

By: _________________________________
Name:  
Title:  

 

FORTRESS CREDIT OPPORTUNITIES IX CLO LIMITED, as Lender

By: FCOD CLO Management LLC, its collateral manager

 

 

By:____________________________ 

Name: 

Title:   

 

FORTRESS LENDING FUND II MA-CRPTF LP, as Lender

By: FLF II MA-CRPTF Advisors LLC, its investment manager 

 

 

By:_______________________________ 

Name: 

Title: 

 

FORTRESS CREDIT OPPORTUNITIES XV CLO LIMITED, as Lender

By: FCOD CLO Management LLC, its collateral manager

 

 

By:____________________________ 

Name: 

Title:   

 

FORTRESS LENDING II HOLDINGS L.P., as Lender

By: Fortress Lending Advisors II LLC, its investment manager 

 

 

By:_________________________ 

Name: 

Title:

 

FORTRESS CREDIT OPPORTUNITIES XI CLO LIMITED, as Lender

By: FCOD CLO Management LLC, its collateral manager

 

 

By:____________________________ 

Name: 

Title:   

[Signature Page to Consent and Waiver]

Exhibit 10.1

 

Acknowledged and agreed to as of the first date written above:

 

GALAXY GAMING, INC., as Borrower

By: _________________________________
Name:  
Title:  

[Signature Page to Consent and Waiver]

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