Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.2

GLOBAL CASH ACCESS HOLDINGS, INC. 2005 STOCK INCENTIVE PLAN

NOTICE OF STOCK OPTION AWARD

	 	 	 	 	 
	 

	 	Grantee’s Name and Address:
	 	George W. Gresham
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

You (the “Grantee”) have been granted an option to purchase shares of 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
	 	                    
	 
	 	 	 	 
	 

	 	Date of Award
	 	February 25, 2008 
	 
	 	 	 	 
	 

	 	Vesting Commencement Date
	 	February 25, 2008 
	 
	 	 	 	 
	 

	 	Exercise Price per Share	 	$6.01
	 
	 	 	 	 
	 
	 	Total Number of Shares Subject to the Option (the “Shares”)	 	350,000 shares
	 
	 	 	 	 
	 
	 	Total Exercise Price	 	$2,103,500.00
	 
	 	 	 	 
	 

	 	Type of Option:
	 	Incentive Stock Option
	 
	 	 	 	 
	 

	 	Expiration Date:
	 	February 25, 2018 
	 
	 	 	 	 
	 

	 	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.

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.

 

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In the event that, after the first anniversary of the Vesting Commencement Date, the Grantee’s
Continuous Service is terminated by the Company without Cause (as defined in that certain Employment Agreement, dated as of February 25, 2008, by and between the Company and
Grantee) or by the Grantee for Good Reason (as defined in that certain Employment Agreement, dated
as of February 25, 2008, by and between the Company and Grantee), fifty percent (50%) of the Shares
subject to the Option that have not previously vested shall become vested and exercisable upon such
termination.

In the event of a Corporate Transaction or a Change in Control, all of the Shares subject to
the Option shall become vested and exercisable immediately prior to the consummation of such
Corporate Transaction or Change in Control, provided that the Grantee’s Continuous Service has not
terminated prior to the consummation of such Corporate Transaction or Change in Control.

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 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:  	 	 
	 	 	Scott Betts, Chief Executive Officer 	 
	 	 	 	 
	 

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO 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.

 

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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 16 of the Option Agreement. The
Grantee further agrees to the venue selection and waiver of a jury trial in accordance with Section
17 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:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Grantee

 

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Award Number: ___

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 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.

 

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(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. Intentionally Omitted.

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

 

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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”); provided, however, that in the event such termination of Continuous Service, other than for Cause, occurs after the Grantee has both (a) attained age
fifty (50), and (b) completed ten (10) years of Continuous Service (such combination of age and
Continuous Service, “Retirement Eligibility”), the portion of the Option that was vested on the
Termination Date shall remain exercisable until the Expiration 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 otherwise provided in this Section 5 or in Section 6 or
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 time specified herein, 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; and provided further, that in the event that the Grantee’s
Continuous Service terminates as a result of his or her Disability after the Grantee achieves
Retirement Eligibility, the portion of the Option that was vested on the Termination Date shall
remain exercisable until the Expiration 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 on the Termination Date within twelve (12) months commencing on the date of death (but in no
event later than the Expiration Date); provided, however, that in the event that the Grantee’s
Continuous Service terminates as a result of his or her death after the Grantee achieves Retirement Eligibility, the portion of the Option that was vested on the Termination Date
shall remain exercisable until 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.

 

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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. 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.

11. 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.

12. 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
minimum tax for federal tax purposes and may subject the Grantee to the alternative minimum tax in
the year of exercise.

 

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(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.

13. Intentionally Omitted.

14. 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

 

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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.

15. 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.

16. 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.

17. 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 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 17 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.

18. 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] [Non-Qualified] Stock
Option Award Agreement (the “Option Agreement”) and Notice of Stock Option Award (the “Notice”)
dated October 31, 2007. 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.

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 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.

 

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7. Intentionally Omitted.

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.
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.

 

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

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	George W. Gresham
	 	 	 	 
	Address:	 	Address:
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
 
	 	 	 	 

 

3finalallocationagreement.htm

     Nicor Inc.

      Form 10-K

                                                                Exhibit
10.64

       

    

    FINAL ALLOCATION AGREEMENT

    

    

    This Final Allocation Agreement (“Agreement”) is entered into this 3rd day of January, 2008, by and between Northern Illinois Gas
Company d/b/a Nicor Gas Company (“Nicor”) and Commonwealth Edison Company
(“ComEd”) (each a “Utility,”and collectively, the “Utilities”), to reflect the Utilities’agreement concerning the final
allocation of certain costs
relating to particular former manufactured gas plant (“MGP”) sites (“Sites”) in Illinois.

    WHEREAS, without admitting any
liability, the Utilities
entered into an Interim Cooperative Agreement dated October 28, 1993, and
subsequently amended (“ICA”), to allow the Utilities to address
certain issues at certain MGP Sites on an interim basis;
and

    WHEREAS, without admitting any
liability, the Utilities
have in the past incurred, and expect in the future to incur, Shared Costs
relating to these MGP Sites; and

    WHEREAS, the ICA provides for a Final
Cost Allocation by negotiation or arbitration; and

    WHEREAS, to obtain a Final Cost
Allocation pursuant to the
ICA, Nicor initiated arbitration that is currently pending and captioned
Northern Illinois
Gas Company v. Commonwealth Edison Company, CPR File No. G-06-26H (“Arbitration”); and

    WHEREAS, the parties and the arbitration
panel haveagreed that the
Arbitration shall be stayed pending the Illinois Commerce Commission’s (“ICC”) approval of this Agreement;
and

     

    
      
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WHEREAS, the Utilities entered into a Memorandum of Understanding (“MOU”) on July 20, 2007, to reflect the
Utilities’agreement in principle concerning the Final Cost
Allocation of Shared Costs relating to these MGP Sites; and

    WHEREAS, in the MOU, the Utilities
agreed to use their best efforts and to act in good faith promptly to negotiate
and execute this Agreement; and

    WHEREAS, the Utilities have reached
anAgreement, as detailed
herein;

    NOW THEREFORE, based on the covenants
and mutual promises contained herein, Nicor and ComEd agree as
follows:

    
      	
              1.

            	
              Definitions

            
	 	1.1. 
      The following terms, as used anywhere in this Agreement, have the
      same meaning that they have in the ICA:  “Shared Costs,”“Final Cost
      Allocation,”and
      “Coordinator/Utility.”

    

    
    

    
      	
              2.

            	
              Final
      Cost Allocation

            

    

    
      	
               

            	
              2.1.  Except as specified in
      paragraph 2.3, with
      respect to the Sites listed on Attachment A to this Agreement, the Final
      Cost Allocation shall
      be and shall result in Nicor being responsible for 51.73 percent, and
      ComEd being responsible for 48.27 percent, of any and all past and future
      Shared Costs.

            

    

    
      	
               

            	
              2.2.  Except as specified in
      paragraph 2.3, with
      respect to the Sites listed on Attachment B to this Agreement, the Final Cost Allocation shall
      be and shall result in Nicor being responsible for 0 percent, and ComEd
      being responsible for 100 percent, of any and all past and future Shared
      Costs.  ComEd will become the Coordinator/Utility at
      any and all Sites
      listed on Attachment B other than the Site described on Attachment B as
      “MGP Site at Clinton
      and Jackson, Ottawa,
Illinois.”

            

    

    

    
      
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              2.3.  The parties recognize
      that there may be Shared Costs that do not relate
      exclusively either to the Sites listed on Attachment A or to the Sites
      listed on Attachment B, but rather relate to the Utilities’MGP remediation program in general
      (“Program
      Costs”).  Program Costs could
      include, by way of example and without limitation, costs associated with
      site prioritization,
      costs associated with jointly owned equipment and costs associated with
      producing documentation to provide general instructions to contractors
      relating to the site
      investigations and remediations.   TheFinal Cost Allocation shall be and
      shall result in Nicor
      being responsible for 50 percent, and ComEd being responsible for 50
      percent, of any and all past and future Program
    Costs.

            

    

    
      	
               

            	
              2.4.  On the date of ICC
      approval of this Agreement, to the extent that either Utility has paid
      more or less than the amounts determined by the percentages in
      paragraphs 2.1 through 2.3 of this Agreement, appropriate credits and
      debits, if required, will be made promptly to reflect the agreed upon
      percentage of each Utility’s Final Cost Allocation, as
      specified in paragraphs 2.1 through 2.3.  These credits
      and debits will be reflected in invoices for future remediation costs at
      Sites listed on Attachment
A.

            

    

    
      	
              3.

            	
              ICC
      Approval

            

    

    
      	
               

            	
              3.1.  This
      Agreement, including
      the prudence and
      reasonableness of the
      Final Cost Allocations set forth in section 2 and the indemnities set forth in
      section 5 below, is
      subject to and contingent upon approval by the
  ICC.

            

    

    
      	
               

            	
              3.2.  The Utilities agree to
      use their best efforts, and to act in good faith, promptly to seek and
      obtain ICC approval of this Agreement, including the Final Cost Allocations and indemnities
      set forth herein.

            

    

     

    
      
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              3.3.  In the event that the
      ICC does not approve this Agreement, including the Final Cost Allocations and
      indemnities set forth herein, this Agreement and the MOU shall
      be void,but the ICA shall remain in full
      force and
      effect.

            

    

    
      	
               

            	
              3.4.  In the event that the
      ICC approves this Agreement, including the Final Cost Allocations and
      indemnities set forth herein, (a) this Agreement shall supersede
      the MOU, (b) this Agreement shall control in the event of any conflict
      between this
      Agreement and the MOUor any conflict between this
      Agreement and the ICA, and (c) the date of such
      approval shall be the Effective Date of this
    Agreement.

            

    

    
      	
               

            	
              3.5.  If, before the ICC
      approvals
      contemplated by this
      Agreement become final and non-appealable, the Illinois General Assembly approves
      a change in Illinois law such that either party reasonably anticipates
      that it may be prevented by such change from obtaining, in whole or in
      part, recovery from customers of Shared Costs, then either party so
      potentially
      affected by such
      legislative action shall have the right to terminate the MOU and this
      Agreement, by giving notice of such termination to the other party within
      thirty (30) days of such change.  In the event of such
      termination, neither Utility shall have any continuing obligation under
      either the MOU or this
Agreement.

            

    

    

    
      	
              4.

            	
              Pending
      Arbitration

            

    

    
      	
               

            	
              4.1.  Upon execution of this
      Agreement, the Utilities will jointly request that the stay of Arbitration
      be continued pending the ICC’s review and approval of this
      Agreement, including the Final Cost Allocations and the
      indemnities set forth
herein.

            

    

     

    
      
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              4.2.  If and when a final
      Order of the ICC approving this Agreement, including the Final Cost Allocations and
      indemnities set forth herein,becomes non-appealable, the
      Utilities will request that the Arbitration be dismissed
      with prejudice.

            

    

    
      	
               

            	
              4.3.  In the event the ICC
      does not approve
      this Agreement,
      including
      the Final Cost
      Allocations and indemnities set forth herein, or in the event of termination of
      this Agreement as provided in paragraph 3.5, either Utility may reinstate
      the Arbitration, in which case neither Utility will be deemed to have
      waived any claim, right, or defense as a result of the MOU or this
      Agreement, and neither the MOU nor this Agreement nor any communication or
      document related to either will be
      admissible in any way in any reinstated
  Arbitration.

            

    

    
      	
              5.

            	
              Release
      and Indemnity

            

    

    
      	
               

            	
              5.1.  Effective upon a final
      Order of the ICC approving this Agreement, including the Final Cost Allocations and
      indemnities set forth herein, becoming non-appealable, each Utility releases the
      other from all claims
      for liability with respect to Shared Costs (other than as may arise out of
      the agreed Final Cost Allocations described in section 2 and except as may be necessary to
      effectuate the indemnities provided in paragraphs 5.2 and
      5.3).

            

    

    
      	
               

            	
              5.2.  Effective upon a final
      Order of the ICC approving this Agreement, including the Final Cost Allocations and
      indemnities set forth herein, becoming non-appealable,
      

                each Utility hereby indemnifies and
      agrees to defend and hold harmless the other against liability, including but not
      limited to any liability arising out of or relating to remediation, to any
      third party arising out of or relating to any of the Sites listed on
      Attachment A, for
      costs that are
      recoverable through the indemnifying party’s rider
    

              

            

    

     

    
    

    
      
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      	 	described hereafter (as such rider(s) may be amended from time to
      time):  ComEd’s Rider ECR (Ill. C. C. No. 4,
      sheet nos. 438 through 440.2, filed Aug. 11, 2006) or Nicor’s Rider 12 (Ill. C. C. No. 16,
      sheet nos. 68-70, filed Sept. 30, 2005).  The indemnification
      provided in this paragraph 5.2 is limited to the amount necessary to allow the Utilities
      to share in such third-party liability in the same proportion as the Final
      Cost Allocations set out in paragraph 2.1.  The indemnification provided in this paragraph is
      in addition to any other indemnification rights, common law or otherwise,
      that the parties may have.
	
               

            	
              5.3.  Effective upon a final
      Order of the ICC approving this Agreement, including the Final Cost Allocations and
      indemnities set forth
      herein, becoming non-appealable,
      ComEd hereby
      indemnifies and agrees to defend and hold harmless Nicor against liability, including but not limited to any
      liability arising out of or relating to remediation, to any third party
      arising out of or relating to any of the Sites listed on Attachment B, for costs that are recoverable
      through ComEd’s Rider ECR (Ill. C. C. No. 4,
      sheet nos. 438 through 440.2, filed August 11, 2006), as such rider may be
      amended from time to time. The indemnification
      provided in this
      paragraph is in addition to any other indemnification rights, common law
      or otherwise, that the parties may
have.

            

    

    
      	
              6.

            	
              Entire
      Agreement.  This Agreement and the
      Attachments to this Agreement (which are part of this Agreement)
      constitute the entire understanding of the Utilities with
      respect to this Agreement.  No modification may be made to this
      Agreement except one signed by both Utilities that expressly states that
      it modifies this Agreement.

            

    

     

    
      
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              7.

            	
              Successors
      and Assigns.  This Agreement shall
      be binding upon the
      successors and assigns of the Utilities; provided that neither Utility can assign its rights
      under this Agreement without the other Utility’s
  consent.

            

    

    
      	
              8.

            	
              Applicable
      Law.  This
      Agreement shall be interpreted under the laws of the State of
      Illinois.

            

    

    
      	
              9.

            	
              Dispute
      Resolution. The parties agree to attempt to
      resolve any dispute arising out of or relating to this
      Agreement or its breach through good faith
      negotiation.  If good faith negotiation fails to resolve the dispute,
      then the parties agree to submit
      the dispute to non-binding mediation and
      acknowledge that the role of the mediator is not to render a decision, but
      to assist the parties in reaching a mutually acceptable
      resolution.  No party shall be bound by anything said or done in
      the course of mediation other than through an agreement in writing
      executed by both
      Utilities.  If mediation fails to
      settle the dispute, then the parties agree that the dispute
      shall be settled by
      arbitration under and in accordance with
      the ICA. 

            

    

    
      	
              10.

            	
              Nonwaiver.  The
      Utilities do not
      admit liability at any of the Sites listed in Attachments A or
      B.  Except as otherwise provided in this Agreement, the
      Utilities do not waive any rights or defenses, including rights to seek
      recovery of any costs that are recoverable through their respective
      environmental-cost-recovery riders, as described in paragraph
      5.2.

            

    

    
      	
              11.

            	
              Method
      of Execution.  This Agreement may be
      executed in multiple counterparts, each of which shall be deemed an
      original, but all of which together shall constitute one and
      the same
      agreement.

            

    

    

    
      
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    Executed as of the date set forth
above

    

    COMMONWEALTH EDISON
COMPANY

    

    By           
___________________________________

    

    ___________________________________

        [print name and
title]

    

    

    NORTHERN ILLINOIS GAS COMPANY d/b/a
Nicor Gas Company

    

    By           
___________________________________

    

    ___________________________________

        [print name and
title]

    

    
      
        
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    ATTACHMENT
A1

    
      	
               

            	
              1.

            	
              Aurora Gas Light Company, River
      St. at North Avenue Bridge,
Aurora

            

    

    
      	
               

            	
              2.

            	
              Belvidere Gas, Light & Fuel,
      Locust Street, Belvidere

            

    

    
      	
               

            	
              3.

            	
              Chicago Heights Gas Company, 17th & State
      Street, Chicago Heights

            

    

    
      	
               

            	
              4.

            	
              Cicero gas Company, Lombard &
      Garfield, Oak Park

            

    

    
      	
               

            	
              5.

            	
              Coal Products manufacturing
      Company, North Broadway,
Lockport

            

    

    
      	
               

            	
              6.

            	
              Freeport Gas, Light & Coke
      Company, Liberty & Jackson St.,
  Freeport

            

    

    
      	
               

            	
              7.

            	
              Geneseo Electric Light &
      Gas Company, Oakwood
      & First St., Geneseo

            

    

    
      	
               

            	
              8.

            	
              Illinois Northern Utility Company,
      Market & 14th, DeKalb

            

    

    
      	
               

            	
              9.

            	
              Illinois Northern Utilities
      Company, 227 Miller, Sterling

            
	 	10. 	Joliet Gaslight Company, Station
      B, North Broadway & Ingalls St., Joliet
	 	11. 	Kankakee Gas Company,
      Birch& Harrison
      St., Kankakee
	 	12. 	LaGrange Gas Company, 47th &
      Bluff St., LaGrange
	 	13. 	Lemont Gas, Light Company, Main
      & Lockport Rd., Lemont
	 	14. 	Lincoln Water, Light & Gas
      Company, Sangamon & Dacatur St., Lincoln
	 	15. 	Lockport Gas Company, 17th & I
      & M Canal, Lockport
	 	16. 	Mendota Gas Company, Fifth St. & Ninth
      Ave., Mendota
	 	17. 	Morris gas Company, Nettle &
      Jackson St., Morris
	 	18. 	Morrison Gas & Electric,
      Market & S. Orange,
Morrison

    

    
    

    
    

    
    

    
    

    
    

    
    

    
    

    
    

    
    

     

    
      
 

     

    1 The Utilities do not admit liability at
any of these
Sites.  Except as otherwise provided in this Final Allocation Agreement, the Utilities do not waive
any rights or defenses, including rights to seek recovery of any costs that are
recoverable through their respective environmental-cost-recovery riders, meaning ComEd’s Rider ECR and Nicor’s Rider 12.

     

    
      
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        	 	19.	Northwestern
      Gas, Light & Coke Company, 912 Clark St., Evanston
	 	20. 	
                Northwestern Gas, Light & Coke
      Company,
      Maple & Vermont,
      Blue Island

              
	 	21. 	
                Northwestern Gas, Light & Coke
      Co./Niles Center Station, Oakton St. & McCormick Blvd.,
      Skokie

              
	 	22. 	
                Ottawa Gas, Light & Coke
      Company, Illinois & Walker St., Ottawa

              
	 	23. 	
                Pontiac Light & Water Company,
      Vermillion & Water St., Pontiac

              
	 	24. 	
                Streator Gas, Light & Coke Co., Water
      St. & Vermillion Rr.,
Streator

              

      

    

      
       

    

    
      
        
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    ATTACHMENT
B2

    
      	
               

            	
              1.

            	
              MGP Site on Coal Gas Road,
      DuQuoin, Illinois

            

    

    
      	
               

            	
              2.

            	
              MGP Site on Bluff Street, Joliet,
      Illinois

            

    

    
      	
               

            	
              3.

            	
              MGP Site on Center Street,
      Geneseo, Illinois

            

    

    
      	
               

            	
              4.

            	
              MGP Site at Clinton and Jackson,
      Ottawa, Illinois

            

    

    
      	
               

            	
              5.

            	
              Dixon I (2nd
      St.)

            

    

    
      	
               

            	
              6.

            	
              Dixon II (River &
      Perry)

            

    

    
      	
               

            	
              7.

            	
              DuQuoin
      (Chestnut)

            

    

    
      	
               

            	
              8.

            	
              Elgin
      TDC-570-0044

            

    

    
      	
               

            	
              9.

            	
              Kenilworth

            
	 	10.	Mendota
      (Main St.)
	 	11.	Murphysboro
      I (Walnut)
	 	12.	Murphysboro
      II (Big Muddy)
	 	13.	Rockford
      (Avon & Cedar)
	 	14.	Rockford
      II (Mulberry)

    

    
    

    
    

    
    

    
    

    
    

    

    

      

    

      
      2
The Utilities do not admit
liability at any of these Sites.  Except as otherwise provided in this
Final Allocation
Agreement, the Utilities do
not waive any rights or defenses, including rights to seek recovery of any costs that are
recoverable through their respective environmental-cost-recovery riders, meaning
ComEd’s Rider ECR and Nicor’s Rider
12.

    

    
      
        
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