Document:

Exhibit 10.11

 

RIGHT OF FIRST REFUSAL AND

CORPORATE OPPORTUNITIES AGREEMENT

 

THIS RIGHT OF FIRST
REFUSAL AND CORPORATE OPPORTUNITIES AGREEMENT (this “Agreement”) is made as of [______], 2015 by and between
Jensyn Acquisition Corp., a Delaware corporation (the “Company”), and Jensyn Integration Services. LLC, a Delaware
limited liability company (the “Affiliate”), in connection with the Company’s proposed public offering
of units consisting of shares of common stock, par value $0.0001 per share (the “Shares”), rights to receive
one-tenth of one Share automatically on the consummation of an initial business combination by the Company, and warrants to purchase
one-half of one Share at a price of $11.50 per full Share, as more fully described in a registration statement on Form S-1, filed
by the Company with the Securities and Exchange Commission (as amended, the “Registration Statement”).

 

RECITALS

 

WHEREAS, the Affiliate
is an affiliate of certain officer, directors and stockholder of the Company:

 

WHEREAS, the Company
will be attempting to consummate a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization, reorganization
or other similar business combination involving the Company and one or more businesses or entities (a “Business Transaction”);

 

WHEREAS, the Affiliate
may also be seeking investment opportunities which may be a part of, in connection with or deemed a Business Transaction; and

 

WHEREAS, the Company
and the Affiliate each believes it is in their best interests to clarify any potential Business Transaction and investment opportunities
for which each party shall have the right of first refusal.

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

	 	1.	Right of First Refusal.

 

For the term specified
in Section 2 of this Agreement and subject to subsections (b), (c) and (d) of this Section 1, Affiliate hereby grants
to the Company a right of first refusal as follows:

 

(a) The Affiliate shall
not enter into any agreement to acquire 50% or more of the outstanding voting securities of any company or business in the insurance
sector whose fair market value is at least equal to 80% of the balance in the trust account that holds the proceeds of the Company’s
initial public offering (less the deferred underwriting fees and taxes payable) at such time, without first presenting such suitable
opportunity to a committee of the Company’s independent directors, and will not enter into any such agreement until a majority
of the Company’s independent directors determine, within the time frame and in the manner specified below, not to pursue
such Business Transaction opportunity.

 

(b) After review of
any potential Business Transaction or investment opportunity, the Company, upon direction from a majority of the Company’s
independent directors, may release the right of first refusal set forth in this Section 1(a) with respect to such Business Transaction
or suitable opportunity.

 

(c) The Affiliate shall
provide written notice to the Company of any such suitable opportunity brought to its attention by its current partners, principals,
directors, officers or employees within ten (10) business days of its identification of such suitable opportunity. Any right of
first refusal granted shall expire forty-five (45) days from the date of the written notice unless earlier released pursuant to
Section 1(c), provided that, during such forty-five (45)-day period, the Company has failed to commence discussions
with any third party regarding the specified Business Transaction or suitable opportunity.

 

    	 

    	 

    

 

	 	2.	Term. This Agreement shall become effective on its execution and shall remain in effect for a period to expire upon the earlier of: (i) the consummation by the Company of a Business Transaction or (ii) 24 months from the closing of the Company's initial public offering.

 

	 	3.	Notices. All notices or communications hereunder
    shall be addressed as follows:

 

To the Company:

 

Jensyn Acquisition Corp.

800 West Main Street, Suite
204

Freehold, New Jersey 07728

Attn: Jeffrey J. Raymond, President
and Chief Executive officer

Fax No.: (732) 303-6947

 

with copies to (which shall
not constitute notice):

 

Giordano, Halleran & Ciesla,
P.C.

125 Half Mile Road, Suite 300

Red Bank, New Jersey 07701

Attention: Philip D. Forlenza

 

If to the Affiliate:

Jensyn Integration Services,
LLC.

1964 Howell Branch Road, Suite
#205 | 

Winter Park, Florida 32792

Attn: Rebecca Irish, Managing
Partner

Fax No.: (732) 303-6947

 

All notices, statements or other
documents which are required or contemplated by this Agreement shall be: (i) in writing and delivered personally or sent by first
class registered or certified mail, overnight courier service or facsimile or electronic transmission to the address designated
in writing, (ii) by facsimile to the number most recently provided to such party or such other address or fax number as may be
designated in writing by such party and (iii) by electronic mail, to the electronic mail address most recently provided to such
party or such other electronic mail address as may be designated in writing by such party. Any notice or other communication so
transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business day following receipt
of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery to an overnight courier
service or five (5) days after mailing if sent by mail.

 

	 	4.	Severability. If any term or provision of this
    Agreement or the performance thereof shall be invalid or unenforceable to any extent, such invalidity or unenforceability
    shall not affect or render invalid or unenforceable any other provision of this Agreement, and this Agreement shall be valid
    and enforced to the fullest extent permitted by law.

 

	 	5.	Entire Agreement. This Agreement, as the same may be amended from time to time in accordance with the terms hereof, contains the entire agreement among the parties hereto relating to the subject matter hereof and supersedes in all respects any prior or other agreement or understanding concerning the subject matter hereof between the Company and Affiliate.

 

	 	6.	Waiver. The failure of any of the parties hereto to at any time enforce any of the provisions of this Agreement shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Agreement or any provision hereof or the right of any of the parties hereto to thereafter enforce each and every provision of this Agreement. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Agreement shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

 

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	 	7.	Amendment. This Agreement may only be amended by written agreement of the parties hereto.

 

	 	8.	Survival. The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations. The provisions of this Section 8 are in addition to the survivorship provisions of any other section of this Agreement.

 

	 	9.	Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument. Delivery of a signed counterpart of this Agreement by facsimile or electronic transmission shall constitute valid and sufficient delivery thereof.

 

	 	10.	Headings. The headings herein are inserted for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement.

 

	 	11.	Mutual Drafting. This Agreement is the joint product of the Company and Affiliate, and each provision hereof has been subject to the consultation, negotiation and agreement of such parties and shall not be construed for or against any party hereto.

 

	 	12.	Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed and enforced in accordance with the laws of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The parties hereby (i) agree that any action, proceeding or claim against it arising out of or relating in any way to this Agreement shall be brought and enforced first in the U.S. District Court for the Southern District of New York, then to such other federal or state courts located in the State of New York, and irrevocably submits to such jurisdiction in New York, which jurisdiction shall be exclusive and (ii) waive any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. THE PARTIES HERETO, TO THE FULLEST EXTENT PERMITTED BY LAW, WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED UPON, ARISING OUT OF, OR IN CONNECTION WITH, THIS AGREEMENT.

 

	 	13.	Trust Waiver. Notwithstanding anything herein to the contrary, Affiliate hereby waives any and all right, title, interest or claim of any kind, regardless of whether such claim arises based on contract, tort, equity or any other theory of legal liability (“Claim”) in or to any distribution from the trust account in which the proceeds of the Company’s initial public offering will be deposited and held for the benefit of the Company’s public shareholders (the “Trust Account”) and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto have
executed this Right of First Refusal and Corporate Opportunities Agreement as of the date first specified above.

 

	 	JENSYN ACQUISITION CORP. 
	 	 
	 	By:	 
	 	 	Name: Jeffrey J. Raymond
	 	 	Title: President, Chief Executive Officer and Director
	 	 
	 	JENSYN INTEGRATION SERVICES, LLC
	 	 
	 	By:	 
	 	 	Name:  Rebecca Irish
	 	 	Title:    Managing Partner
	 	 	 

[Signature Page to Right of First Refusal
and Corporate Opportunities Agreement]

 

    	4deac_ex1066.htm

EXHIBIT 10.66
 
STRATEGIC VENDOR PLACEMENT AGREEMENT
 
This Strategic Vendor Placement Agreement (the "Agreement") is dated as of the 15th day of May, 2015 ("Effective Date") and is made by and between ELITE DATA SERVICES, INC. (the "Company"), a Florida corporation with its principal place of business located at 4447 N. Central Expressway Ste 110-135 Dallas, TX 75205 and LANDS END (the "SPV"), a resort property located in Roatan, Honduras. Hereinafter the Company and Vendor shall be referred to collectively as the "Parties."
 
RECITALS
 
WHEREAS, the Company purchased a license to operate One Hundred and Sixty Gaming Machines in Roatan, Honduras and seeks to enlist Lands End as a slot machine licensee hereafter referred to as a Strategic Placement Vendor ("SPV") who will permit gaming machines on its facility in exchange for a revenue share of the net profits per machine as defined herein;
 
AND WHEREAS, the Company is authorized to execute a revenue-sharing agreement in the form substantially set forth herein; and
 
AND WHEREAS, the revenue-sharing agreement shall be in substantially the following form and is effective when executed pursuant to the municipality of and regulatory authority of Honduras;
 
AND WHEREAS, the Company is willing to grant a sub-license subject to the terms and conditions set out in this agreement;
 
NOW THEREFORE, in consideration of the mutual promises, covenants and obligations contained herein, the parties agree as follows:
 
ARTICLE I. DEFINITIONS
 
Section 1.01 "Accounting Principles" means US generally accepted accounting principles.
 
Section 1.02 "Category of machines" Category of machines" means slot machines, video poker machines, and table and counter games. Class I refers to coin or ticket-operated slot machines, which are controlled by random-number generating computer chips that are set to return a percentage of the amount played to the player ("player win") and to keep a percentage for the casino ("casino win" or "hold"). Class II shall refer to video poker machines, which involve the programming of the video poker rules. Class III shall refer to pay tables, which allows an element of player skill to affect the outcome of a game.
 
Section 1.03 "Currency" means, unless otherwise indicated, all dollar amounts referred to in this Agreement are expressed in United States Dollars.   

 
	 
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Section 1.04 "Distributor" means any person who sells, leases, or offers or otherwise provides, distributes, or services any slot machine or associated equipment for use or play of slot machines in Honduras. A manufacturer may be a distributor.
 
Section 1.05 "Designated slot machine gaming area" means the area or areas of a facility of a slot machine licensee in which slot machine gaming may be conducted in accordance with the provisions this Agreement.
 
Section 1.06 "Force Majure" shall mean the following events or circumstances, to the extent that the delay or otherwise adversely affect, the performance beyond reasonable control of the SPV, its agents and contractors, of their duties and obligations under this Agreement, or the performance by the Company of their respective duties under this Agreement to include: a) strikes, lockouts, labor disputes, failure of utilities, labor shortages or explosions; b) change in governmental requirements by any governmental authority, first effective after the date of his Agreement, c) acts of God, tornadoes, hurricanes, floods, sinkholes, fire and other casualties, landslides, earthquakes, epidemics, quarantine, pestilence, and/or abnormal inclement weather; d) acts of a public enemy, acts of war, terrorism, effects of nuclear radiation, blockades, insurrections, riots civil disturbances or national or internal calamities; e) any temporary restraining order, preliminary injunction or permanent injunction or mandamus or similar order.
 
Section 1.07 "Manufacturer" means any person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs, or otherwise makes modifications to any slot machine or associated equipment for use or play of slot machines in this state for gaming purposes. A manufacturer may be a distributor.
 
Section 1.08 "Master licensee" shall refer to the Company who holds the license to operate gaming machines in the designated distribution area.
 
Section 1.09 "Net Gaming revenue" is defined as slot machine revenues turnover minus customer winnings, bonuses, gaming taxes, license and sub-license fees not to include nonredeemable credits.
 
Section 1.10 "Nonredeemable credits" means slot machine operating credits that cannot be redeemed for cash or any other thing of value by a slot machine, kiosk, or the slot machine licensee and that are provided free of charge to patrons. Such credits do not constitute "nonredeemable credits" until such time as theyare metered as credit into a slot machine and recorded in the facility-based monitoring system.
 
Section 1.11 "Progressive system" means a computerized system linking slot machines in one or more licensed facilities within this jurisdiction and offering one or more common progressive payouts based on the amounts wagered.
 
Section 1.12 "Slot machine" means any mechanical or electrical contrivance, terminal that may or may not be capable of downloading slot games from a central server system, machine, or other device that, upon insertion of a coin, bill, ticket, token, or similar object or upon payment of any consideration whatsoever, including the use of any electronic payment system except a credit card or debit card unless authorized by the regulatory authority, is available to play or operate, the play or operation of which, whether by reason of skill or application of the element of chance or both, may deliver or entitle the person or persons playing or operating the contrivance, terminal, machine, or other device to receive cash, billets, tickets, tokens, or electronic credits to be exchanged for cash or to receive merchandise or anything of value whatsoever, whether the payoff is made automatically from the machine or manually. The term includes associated equipment necessary to conduct the operation of the contrivance, terminal, machine, or other device. Slot machines may use spinning reels, video displays, or both. 
    
	 
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Section 1.13 "Slot machine facility" means the SPV's facility at which slot machines as permitted and approved by the regulatory municipality are lawfully offered for play.
 
Section 1.14 "Slot machine sub-licensee" means a SPV who holds a license issued by the Company pursuant to this Agreement that authorizes such person to possess a slot machine within its facilities and allows slot machine gaming.
 
Section 1.15 "Slot machine operator" means a person employed or contracted by the Company to conduct slot machine gaming at that licensed facility.
 
Section 1.16 "Slot machine revenues" means the total of all cash and property, except nonredeemable credits, received by the slot machine licensee from the operation of slot machines less the amount of cash, cash equivalents, credits, and prizes paid to winners of slot machine gaming.
 
Section 1.17 "Sub-Licensee" shall mean a third party operating a sub-license acquired from the Company as the Master Licensee;
 
Section 1.18 "SVP" shall mean the Strategic Placement Vendor pursuant to the Company's Strategic Placement Vendor Program as defined herein.
 
Section 1.19 "SPV Fees" shall mean the monthly percentage fees earned by the Licensor from the net gaming revenue generated from the Master Licensees and Sub-Licensees operations.
 
ARTICLE II. SUMMARY AND CONSIDERATION
 
Section 2.01 Compensation. The Company shall agree to contribute Six Percent (6%) (the "Compensation Percentage") of its net gaming revenues identified in and under the procedures of this Agreement, in return for which the SPV agrees that the Company will:
 
		(a) 	Only share that part of its revenue arising from the use of Gaming Machines exclusively on the SPV's property; and

			 
		(b) 	Have full authorization and authority to select and provide the Slot Machines to the SPV with the sole authority to dictate and select the Category of Machines and the use of a Progressive System;

 
Section 2.02 Number of Machines Granted under Sub-License. The Company agrees to sub-license twenty-five (25) machines to be distributed at the SPV's facilities pursuant to the terms stated in this Agreement.
 
Section 2.03 Payment Made to SPV. For the purposes of determining the payments under this subsection, the SPV shall receive the compensation percentage as stated in this Section Paragraph 1 payable on the amount of service and registered machines located on the SPV's facility pursuant to this Agreement less the:
 
		(a) 	"Net Win" which shall mean the total amount wagered on each electronic game of chance, minus the total amount paid to players for winning wagers at such machines; and

			 
		(b) 	"Taxes and Fees" which shall include the taxable value of the gaming machines, the regulatory governmental and legal fees, and the license and sub-license fees as stated herein.

    
	 
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Section 2.04 Licensing and Sub Licensing Fees. Licensing fees must be paid at the time of issuance of the sub-license payable at the sum of $1,000 per year or an equivalent of 2% of the Net Gaming Revenue per month, whichever amount is lower. This amount shall be deducted as a "pass-through" from the Net Gaming Revenue pursuant to the terms of this Agreement, which shall not exceed 2% of the Net Gaming Revenue per month. This Section shall have no effect on the Governmental Fees as described herein in Section 2.06(d).
 
Section 2.05 Payment Distribution. For purposes of these payments, all calculations of amounts due shall be based upon the previous months activity of the gaming facility's machines. Payments due to the SPV pursuant to these terms shall be paid no later than twenty-five (25) days after the last day of each calendar month. Any payments due and owing from the Company in the month the SPV is approved, or the final month the Agreement is in force, shall reflect the net win, but only for the portion of the month the Agreement is in effect. The Parties agree that, after the effective date hereof, the Company shall provide gaming machines and shall make monthly payments as specified on the 5th day of each month for the previous month's net win as stated herein.
 
Section 2.06 Term and Termination.
 
		(a) 	Term. The term of this Agreement shall commence on the Effective Date or the date in which machines are delivered to the SPV (whichever is later) and shall continue until terminated in accordance with the provisions of this Section. Each Site License granted during the Term of this Agreement shall survive termination of the Agreement.

			 
		(b) 	Termination by the Company. The Company may terminate this Agreement, with or without cause, upon five (5) days written notice to the SPV and seek to transfer and remove the sub-license from the operating facility in addition to its gaming machines without breach of this Agreement. Reasons in which could trigger such event, include, but are not limited to:

 
		 
	(i) 	The SPV declares in a sworn writing that a Force Majeure Event has occurred and the material effects of such Force Majeure Event continue in existence for more than sixty (60) days.

		 
		 
		 
	(ii) 	The SPV materially breaches any provision of this Agreement applicable to it and fails to cure such breach within thirty (30) days after its receipt of written notice of such breach.

		 
		 
		 
	(iii) 	The SPV (i) files a voluntary petition in bankruptcy; (ii) shall have filed against it an involuntary petition in bankruptcy which is not vacated within thirty (30) days thereafter; (iii) makes an assignment for the benefit of creditors; (iv) files a petition or an answer seeking an arrangement with creditors, or takes advantage of any insolvency law to protect itself against creditors; (v) applies for or consents to the appointment of a receiver or trustee of all or a substantial part of its assets; or (vi) has entered against it in any court of competent jurisdiction an order, judgment, or decree appointing a receiver of all or a substantial part of its assets, and such order, judgment or decree continues unstayed and in effect for any period of thirty (30) or more consecutive days.

		 
		 
		 
	(iv) 	The SPV sells or otherwise disposes of all or substantially all of its business or assets to a third party; or control or ownership of the other Party is transferred to a third party resulting in an assignment or other transfer of a material right or obligation arising under this Agreement to that third party.

 
	 
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	(v) 	The SPV or any of its agents is found to be cheating or stealing;

		 
		 
		 
	(vi) 	The SPV or any of its agents is found to be cheating or stealing;

		 
		 
		 
	(vii) 	The SPV fails to follow the Company's protocols and work with the Company's agent for collecting pay-outs of the machines;

		 
		 
		 
	(viii) 	The regulatory authority do not approve and/or retracts prior approval in the designated slot machine gaming area as defined herein;

		 
		 
		 
	(ix) 	The revenues generated at the SVP's facility are below par at the sole discretion of the Company's Board of Directors;

		 
		 
		 
	(x) 	Or any other reason that the Company so elects.

    
Section 2.07 Term and Termination.
 
	 
	(a) 	Term. The term of this Agreement shall commence on the Effective Date or the date in which machines are delivered to the SPV (whichever is later) and shall continue until terminated in accordance with the provisions of this Section. Each Site License granted during the Term of this Agreement shall survive termination of the Agreement.

	 
		 
	 
	(b) 	Termination by the Company. The Company may terminate this Agreement, with or without cause, upon five (5) days written notice to the SPV and seek to transfer and remove the sub-license from the operating facility in addition to its gaming machines without breach of this Agreement. Reasons in which could trigger such event, include, but are not limited to:

 
		 
	(i) 	The SPV declares in a sworn writing that a Force Majeure Event has occurred and the material effects of such Force Majeure Event continue in existence for more than sixty (60) days.

		 
		 
		 
	(ii) 	The SPV materially breaches any provision of this Agreement applicable to it and fails to cure such breach within thirty (30) days after its receipt of written notice of such breach.

		 
		 
		 
	(iii) 	The SPV (i) files a voluntary petition in bankruptcy; (ii) shall have filed against it an involuntary petition in bankruptcy which is not vacated within thirty (30) days thereafter; (iii) makes an assignment for the benefit of creditors; (iv) files a petition or an answer seeking an arrangement with creditors, or takes advantage of any insolvency law to protect itself against creditors; (v) applies for or consents to the appointment of a receiver or trustee of all or a substantial part of its assets; or (vi) has entered against it in any court of competent jurisdiction an order, judgment, or decree appointing a receiver of all or a substantial part of its assets, and such order, judgment or decree continues unstayed and in effect for any period of thirty (30) or more consecutive days.

 
	 
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	(iv) 	The SPV sells or otherwise disposes of all or substantially all of its business or assets to a third party; or control or ownership of the other Party is transferred to a third party resulting in an assignment or other transfer of a material right or obligation arising under this Agreement to that third party.

		 
		 
		 
	(v) 	The SPV or any of its agents is found to be cheating or stealing;

		  
		 
		 
	(vi) 	The SPV fails to follow the Company's protocols and work with the Company's agent for collecting pay-outs of the machines;

		  
		 
		 
	(vii) 	The regulatory authority do not approve and/or retracts prior approval in the designated slot machine gaming area as defined herein;

		 
		 
		 
	(viii) 	The revenues generated at the SVP's facility are below par at the sole discretion of the Company's Board of Directors;

		 
		 
		 
	(ix) 	Or any other reason that the Company so elects.

    
	 
	(c) 	Termination by the SPV. The SPV may not terminate this Agreement, with or without cause for two (2) years upon the signing of this Agreement unless:

 
		 
	(i) 	The Company (a) files a voluntary petition in bankruptcy; (b) shall have filed against it an involuntary petition in bankruptcy which is not vacated within thirty (30) days thereafter; (c) makes an assignment for the benefit of creditors; (d) files a petition or an answer seeking an arrangement with creditors, or takes advantage of any insolvency law to protect itself against creditors; (e) applies for or consents to the appointment of a receiver or trustee of all or a substantial part of its assets; or (f) has entered against it in any court of competent jurisdiction an order, judgment, or decree appointing a receiver of all or a substantial part of its assets, and such order, judgment or decree continues unstayed and in effect for any period of thirty (30) or more consecutive days.

		 
		 
		 
	(ii) 	The Company sells or otherwise disposes of all or substantially all of its business or assets to a third party; or control or ownership of the other Party is transferred to a third party resulting in an assignment or other transfer of a material right or obligation arising under this Agreement to that third party.

		 
		 
		 
	(iii) 	The Company materially breaches any provision of this Agreement applicable to it and fails to cure such breach within thirty (30) days after its receipt of written notice of such breach.

		 
		 
		 
	(iv) 	The regulatory authority does not approve and/or retracts prior approval in the designated slot machine gaming area as defined herein.

 
	 
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	(d) 	Government Approval and Legal Fees. The SPV understands and acknowledges that the Company warrants and represents that it will proceed, upon signatures of this Agreement, to seek governmental approvals for the SVP to become an authorized Slot machine facility. This amount, which shall include legal fees, shall be deducted as a "pass-through" from the Net Gaming Revenue pursuant to the terms of this Agreement, and shall be considered a gross expense first priority lien that shall be paid off immediately on the net proceed of gaming revenues.

	 
		  

	 
	(e) 	No Further Action. If neither party has canceled this Agreement after the term date as defined in Article Two Paragraph 6(C), then this Agreement shall automatically renew with the same provisions and terms as herein stated.

 
Section 2.08 Relationship of the Parties. The relationship between the Company and SPV is that of independent contractors. Neither party, nor its agents and employees, shall under any circumstances be deemed an agent or representative of the other and neither shall have authority to act for and/or bind the other in any way, or represent that it is in any way responsible for acts of the other. This Agreement does not establish a joint venture, agency or partnership between the parties.
 
Section 2.09 No Competition. So long as the SPV retains the Gaming Machines as a Slot machine facility, it may not engage in any other form of agreement with any other person or corporation to put Slot Machines on their premises. If the SPV retains its own license or sub-license with a different distributor or manufacturer while the terms of this Agreement are in effect, the damages shall be equivalent to 16% of the net wins as defined here payable from the SPV's gross profits of such gaming machines.
 
Section 2.10 Warranties and Representations by the Company to the SPV.The Company represents and warrants to the SPV that each of the following statements is true and accurate as of the Closing, except as otherwise indicated herein or in the Exhibits referenced herein:
 
		(a) 	Organization. The Company is an organization duly organized and validly existing under the laws of Florida in the United States of America, and has all requisite power and authority to enter into and performs its obligations under this Agreement.

		 	 
		(b) 	Adverse Agreement. The Company is not a party to any agreement, document or instrument that has a material adverse effect on the ability of the Company to carry out its obligations under this Agreement.

		 	 
		(c) 	License to Operate. The Company warrants that upon signature of this Agreement it shall be responsible for obtaining the legal authority for the SPV to allow Gaming Machines on its property. If in the event approval is not granted, this Agreement shall be void and rescinded.

		 	 
		(d) 	Production of Machines. The Company warrants that it shall provide the specified number of machines as stated herein to the SPV's facility.

 
	 
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		(e) 	Routine Maintenance of Gaming Machines. The Company shall be responsible for all routine maintenance of the gaming machines.

		 	 
		(f) 	Collection of Machine Revenues. The Company and/or its designated agents, consultant, and other parties which shall be stated in Schedule One annexed hereto shall be solely responsible for all collection of machines revenues from the machine.

		 	 
		(g) 	Revenue Sharing and Accounting. The Company shall be responsible for providing to the SPV a monthly statement with the SPV's monthly revenue sharing as specifically defined in Article Two Paragraph 3 in conjunction with other relevant provisions stated hereto to the SPV and shall be responsible for the accounting that shall be available publically as represented in the Company's quarterly financial statements and/ or provided quarterly to each SPV. This shall not mean to replace a monthly accounting statement that shall show SPV its shared revenues.

    
Section 2.11 Warranties and Representations by the SVP to the Company. The SVP represents and warrants to the Company that each of the following statements is true and accurate as of the Closing, except as otherwise indicated herein or in the Exhibits referenced herein:
 
		(a) 	Organization. The SVP is an organization duly organized and validly existing under the laws of Honduras, and has all requisite power and authority to enter into and performs its obligations under this Agreement.

		 	 
		(b) 	Adverse Agreement. The SPV is not a party to any agreement, document or instrument that has a material adverse effect on the ability of the SPV to carry out its obligations under this Agreement.

		 	 
		(c) 	Security. The SPV shall be responsible for the security of the machines on its facility property, which reasonably protect from assaults, robberies, and other acts of vandalism. In no event shall the Company be liable for the SPV's damages relating to any assaults or security breaches relating hereto and SPV shall hold the Company harmless for any breaches of security.

		 	 
		(d) 	Utilities. The SPV shall be responsible for the utilities and providing such utilities such as electricity of the machines operation. Failure to provide the requisite utilities based on lack of payment of conservation shall be deemed a breach of this Agreement with the penalty being a $100 per day fine. The cure period as set forth in this Paragraph shall be 3 (three) days. This Paragraph in no way should be deemed to include any reasonable event such as power outages or electricity shorts or construction or any other reasonable event.

 
Section 2.12 Indemnification. The SVP shall hold the Company harmless for all injuries and related claims that result from defective chairs and furnitures, slip and fall, and other injuries that could possibly result by a gaming machine operator when at the SVP's facility.
 
Section 2.13 Installation. At the Company's sole election may it proceed to offer construction services for the installation of gaming machines if agreed to by the Company and SPV. If this is negotiated, this shall be a separate agreement and shall constitute an additional agreement in which the Company receives such installation costs through the net proceeds at a lower percentage discounted rate or a gross one time fee that shall be paid as a first priority lien through the net generated revenues that are passed through or any other arrangement the Parties both mutually agree.
 
Section 2.14 Damages to Gaming Machines. In the event that the any of the gaming machines are damaged due to negligence, the SVP shall be responsible for its replacement costs.   

 
	 
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ARTICLE III. GAMING REGULATORY CONTROLS
 
Section 3.01 General. The operation of a gaming distribution is subject to pervasive regulation under the laws, rules and regulations of the municipality of Honduras and the Roatan. The Company's mission is to assist in the implementation of gaming laws by providing declarations of public policy designed to ensure that gaming is conducted honestly, competitively and free of criminal and corruptive elements. Since the continued growth and success of gaming is dependent upon public confidence, gaming laws protect gaming consumers and the viability and integrity of the gaming industry, including prevention of cheating and fraudulent practices. Therefore, in accordance with this objective, the SPV shall adhere to, and the Company shall be responsible to:
 
	 
	·
	Establish and maintain responsible accounting practices and procedures that will be subject, from time to time, to change; and

	 
	·
	Maintain effective controls over their financial practices, including establishment of minimum procedures for internal fiscal affairs and the safeguarding of assets and revenues; and

	 
	·
	Maintain systems for reliable record keeping; and

	 
	·
	Maintain strict compliance with various laws, regulations and required minimum internal controls pertaining to gaming; and

	 
	·
	Make appropriate investigations to determine if there has been any violation of laws or regulations; and

	 
	·
	Review the character and fitness of participants in gaming operations and make determinations regarding their suitability or qualification for licensure; and

	 
	·
	Establish and collect fees and/or taxes; and

	 
	·
	Collect and review reports and information submitted by participants in gaming operations; and

	 
	·
	Enforce gaming laws and impose disciplinary sanctions for violations, including fines and penalties; and

	 
	·
	Review and approve transactions, such as acquisitions or change-of-control transactions of gaming industry participants, securities offerings and debt transactions engaged in by such participants.

 
Section 3.02 Duties of Parties. The Parties acknowledge that each has a duty to assist in the effective gaming controls and shall maintain a dealing of good faith in effort to this effect.
 
ARTICLE IV. MISCELLANEOUS
 
Section 4.01 Counterparts. This Agreement may be signed in counterparts and the Agreement, together with its counterpart signature pages, shall be deemed valid and binding on each party when duly executed by all parties. Facsimile and electronically scanned signatures shall be deemed valid and binding for all purposes.
 
Section 4.02 Entire Agreement. The Agreement constitutes the full and complete understanding of the Parties hereto with respect to the subject matter covered herein and supersedes all prior oral or written understandings and agreements with respect thereto.   

 
	 
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Section 4.03 Notice. Any notice or permitted hereunder shall be given in a certified writing (unless otherwise specified herein) and shall be deemed personally or sent by certified or registered mail, postage prepaid, or by private courier, with written verification of delivery, or by effectively given on the earliest of the seventh business day after deposit, postage prepaid, in the United States Postal Service by registered or certified mail. All notices shall be delivered:
 
If to the Company:
Elite Data Services, Inc.
4447 N. Central Expressway
Suite 110-135
Dallas, TX 75205
(972) 885-3981 (phone)
Attn: Board of Directors
Email: info@edscompanies.com
 
With copies to:
Jeffrey Stein
JMS Law Group, PLLC
98C Old Country Road #233
Plainview, NY 11803
(516) 422-6285 (phone)
Attn: Jeffrey Stein
Email: jstein@jmslg.com
 
If to SVP:
Lands End Resort
[ADDRESS RESERVED]
Chris Schroeder, Operations Manager
chris@landsendroatan.com   

 
	 
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Section 4.04 No Transferability. This license may not be assigned by the SVP to anyone other than than SVP and its facility.
 
Section 4.05 Registered SVP Contact. Chris Schroder, the Operations Manager, shall be the registered SVP contact. Notice of change may be submitted by the SVP at any time if this contact is to change.
 
	The Company
	
	 
	 
	
	Elite Data Services, Inc.
	
		
	By:
	/s/ Charles Rimlinger
	
	Name:
	Charles Rimlinger
	
	Title:
	Chief Executive Officer
	
		
	SVP
	
	 
	 
	
	Lands End Resort
	
		
	By:
	/s/ Pablo Garcia Garcia
	
	Name:
	Pablo Garcia
	
	Title:
	General Manager
	

 
 
11

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