Document:

Split-off Agreement

SPLIT-OFF AGREEMENT 

This SPLIT-OFF AGREEMENT , dated as of June 1, 2012 (this “Agreement”), is entered into by and among Global Casinos, Inc, a Utah corporation (“Seller” or “Global Casinos”), Global Split-Off, LLC, a Colorado limited liability company (“Split-Off Subsidiary”), and Gemini Gaming, LLC, a Colorado limited liability company (“Buyer”). 

  

R E C I T A L S: 

WHEREAS ,   Seller is the owner of all of the issued and outstanding capital stock of Split-Off Subsidiary; Split-Off Subsidiary is a wholly-owned subsidiary of Seller which will acquire the business assets and liabilities previously held by Seller; and Seller has no other businesses or operations prior to the Acquisition (as defined herein); 

WHEREAS , contemporaneously with the execution of this Agreement, Seller and Christopher Brogdon (“Brogdon”), as the sole shareholder of Georgia Healthcare REIT, Inc., a Georgia corporation (“Georgia REIT”) and Georgia REIT will enter into a Stock Purchase Agreement (“SPA”) pursuant to which Brogdon shall transfer and assign to Global Casinos 100% of the issued and outstanding shares of common stock of Georgia REIT, whereupon Georgia REIT will become a wholly-owned subsidiary of Global Casinos (the “Acquisition”);

WHEREAS , the execution and delivery of this Agreement is required by Brogdon as a condition to his execution of the SPA, and the consummation of the assignment, assumption, purchase and sale transactions contemplated by this Agreement is also a condition to the completion of the Acquisition pursuant to the SPA, and Seller has represented to Brogdon in the SPA that the transactions contemplated by this Agreement will be consummated immediately following the closing of the Acquisition, and Brogdon relied on such representation in entering into the SPA; 

WHEREAS , Buyer desires to purchase the Shares (as defined in Section 2.1 ) from Seller, and to assume, as between Seller and Buyer, all responsibility for any debts, obligations and liabilities, (prior to the Acquisition) of Split-Off Subsidiary, on the terms and subject to the conditions specified in this Agreement; and 

WHEREAS , Seller desires to sell and transfer the Shares to Buyer, on the terms and subject to the conditions specified in this Agreement; 

NOW, THEREFORE , in consideration of the premises and the covenants, promises and agreements herein set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending legally to be bound, agree as follows:   

  

I.            ASSIGNMENT AND ASSUMPTION OF SELLER’S ASSETS AND LIABILITIES . 

  

Subject to the terms and conditions provided below: 

  

1.1  Assignment of Assets.   Seller hereby contributes, assigns, conveys and transfers to Split-Off Subsidiary, and Split-Off Subsidiary hereby receives, acquires and accepts, all assets and properties of Seller as of the Effective Time, including but not limited to the following, but excluding in all cases the capital stock of Georgia REIT and Split-Off Subsidiary : 

  

			
	  

	(a) 

	all cash and cash equivalents; 

  

			
	  

	(b) 

	all accounts receivable and notes receivable, including intercompany notes receivable, together with all interest in all collateral provided as security therefore; 

  

			
	  

	(c) 

	all inventories; 

			

  

			
	  

	(d) 

	all right, title and interest, of record, beneficial or otherwise, in and to and stock, membership interests, partnership interests or other equity or ownership interests in any corporation, limited liability company, partnership or other entity, including, without limitation, all issued and outstanding shares of Casinos USA, Inc. (“Bull Durham”),  Doc Holliday Casinos II, LLC (“Doc Holliday”) and Global Gaming Technologies, LLC,  and all bonds, debentures, notes or other securities; 

  

			
	  

	(e) 

	all of Seller’s rights, title and interests in, to and under all contracts, agreements, leases, licenses (including software licenses), supply agreements, consulting agreements, commitments, purchase orders, and including all of Seller’s rights thereunder to use and possess equipment provided by third parties, and all representations, warranties, covenants and guarantees related to the foregoing (provided that to the extent any of the foregoing or any claim or right or benefit arising thereunder or resulting therefrom is not assignable by its terms, or the assignment thereof shall require the consent or approval of another party thereto, this Agreement shall not constitute an assignment thereof if an attempted assignment would be in violation of the terms thereof or if such consent is not obtained prior to the Effective Time, and in lieu thereof Seller shall reasonably cooperate with Split-Off Subsidiary in any reasonable arrangement designed to provide Split-Off Subsidiary the benefits thereunder or any claim or right arising thereunder); 

  

			
	  

	(f) 

	all intellectual property, including but not limited to issued patents, patent applications (whether or not patents are issued thereon and whether modified, withdrawn or resubmitted), unpatented inventions, product designs, copyrights (whether registered or unregistered), know-how, technology, trade secrets, technical information, notebooks, drawings, software, computer coding (both object and source) and all documentation, manuals and drawings related thereto, trademarks or service marks and applications therefor, unregistered trademarks or service marks, trade names, logos and icons and all rights to sue or recover for the infringement or misappropriation thereof; 

    

			
	  

	(g) 

	all fixed assets, including but not limited to the machinery, equipment, furniture, vehicles, office equipment and other tangible personal property owned or leased by Seller; 

  

			
	  

	(h) 

	all customer lists, business records, customer records and files, customer financial records, and all other files and information related to customers, all customer proposals, all open service agreements with customers and all uncompleted customer contracts and agreements; and 

  

			
	  

	(i) 

	to the extent legally assignable, all licenses, permits, certificates, approvals and authorizations issued by Governmental Entities and necessary to own, lease or operate the assets and properties of Seller and to conduct Seller’s business as it is presently conducted; 

  

all of the foregoing being referred to herein as the “Assigned Assets.” 

  

1.2  Assignment and Assumption of Liabilities .   Seller hereby assigns to Split-Off Subsidiary, and Split-Off Subsidiary hereby assumes and agrees to pay, honor and discharge all debts, adverse claims, liabilities, judgments and obligations of Seller as of the Effective Time, whether accrued, contingent or otherwise and whether known or unknown, including those arising under any law (including the common law) or any rule or regulation of any Governmental Entity or imposed by any court or any arbitrator in a binding arbitration resulting from, arising out of or relating to the assets, activities, operations, actions or omissions of Seller, or services provided thereby, or under contracts, agreements (whether written or oral), leases, commitments or undertakings thereof, (all of the foregoing being referred to herein as the “Assigned Liabilities”). 

1.3

Excluded Assets and Liabilities.  The Assigned Assets shall not include (i) cash in the amount of $500,000 plus all net proceeds of a Unit Private Placement under a Confidential Private Placement Memorandum dated June 1, 2012 consisting of a minimum of $500,000 and a maximum of $1.0 million (with a 20% over-allotment option) (“Unit PPM”), less the amount, if any, of advances made by the Seller to Georgia REIT (“Georgia REIT Advances”) prior to the Closing,   (ii) any and all Georgia REIT Advances and notes receivable evidencing the Georgia REIT Advances, (iii)  the amount of all advances made by Seller to Bull Durham and Doc Holliday after January 1, 2012 up to the maximum amount of $350,000 which Seller shall retain as an advance receivable, and (iv) an aggregate of 2.566 million shares of common stock and 400,000 warrants of ImageDoc USA, Inc. (“Excluded Assets”).  The Assigned Liabilities shall not include (i) 8% Convertible Notes in the aggregate principal amount of $850,000, (ii) all obligations of Seller under outstanding 5% notes payable in the aggregate amount of $120,000 and (iii) 8% Convertible Notes sold in the Unit PPM (the “ImageDoc Notes”) (“Excluded Liabilities”).

  

The assignment and assumption of Seller’s assets and liabilities provided for in this Article I is referred to as the “Assignment.” 

II.             PURCHASE AND SALE OF STOCK . 

  

2.1  Purchased Shares .  Subject to the terms and conditions provided below, Seller shall sell and transfer to Buyer and Buyer shall purchase from Seller, on the Closing Date (as defined in Section 3.1 ), all of the issued and outstanding shares of capital stock of Split-Off Subsidiary (the “Shares”). The sale and purchase of the Shares shall be referred to as the “Split-Off.”

  

2.2  Purchase Price .  The purchase price (“Purchase Price”) for the Shares shall be (i) the assumption by Split-Off Subsidiary of the Assigned Liabilities, plus (ii) an amount equal to the net tangible book value of Seller as of the most recently completed fiscal quarter prior to the Closing Date, as defined below (the “Seller NTBV”) reduced by the Excluded Assets and increased by the Excluded Liabilities.  The Purchase Price  shall be evidenced by Buyer’s promissory note in favor of Seller (“Buyer Note”) which shall provided for payment of the principal amount thereof, together with interest at the rate of 4% per annum, in equal quarterly installments of principal and interest amortized over a term of 20 years.  The Buyer Note shall be secured by a pledge and security agreement covering 100% of the outstanding shares of the Split-Off Subsidiary.  

  

III.             CLOSING . 

  

3.1  Closing .  The closing of the transactions contemplated in this Agreement (the “Closing”) shall take place as soon as practicable following the execution of this Agreement; provided, however, that the Closing must occur immediately after the closing of the Acquisition.  The date on which the Closing occurs shall be referred to herein as the “Closing Date.”   

  

3.2  Transfer of Shares .  At the Closing, Seller shall deliver to Buyer certificates representing the Shares purchased by Buyer, duly endorsed to such Buyer or as directed by Buyer, which delivery shall vest such Buyer with good and marketable title to such Shares, free and clear of all liens and encumbrances. 

  

3.3  Payment of Purchase Price .  At the Closing, each Buyer shall deliver to Seller (a) the Buyer Note against delivery by Seller of the Assignment of Assets and (b) the Assumption of Liabilities provided for herein. 

  

3.4  Transfer of Records .  On or before the Closing, Seller shall transfer to Split-Off Subsidiary all existing corporate books and records in Seller’s possession relating to Split-Off Subsidiary and its business, including but not limited to all agreements, litigation files, real estate files, personnel files and filings with governmental agencies; provided , however , when any such documents relate to both Seller and Split-Off Subsidiary, only copies of such documents need be furnished.  On or before the Closing, Buyer and Split-Off Subsidiary shall transfer to Seller all existing corporate books and records in the possession of Buyer or Split-Off Subsidiary relating to Seller, including but not limited to all corporate 

minute books, stock ledgers, certificates and corporate seals of Seller and all agreements, litigation files, real property files, personnel files and filings with governmental agencies; provided , however , when any such documents relate to both Seller and Split-Off Subsidiary or its business, only copies of such documents need be furnished. 

  

3.5  Instruments of Assignment . At the Closing, Seller and Split-Off Subsidiary shall deliver to each other such instruments providing for the Assignment as the other may reasonably request. 

3.6  Seller Board of Directors and Executive Officers.  Immediately prior to the Closing, Seller shall take all action necessary to appoint Brogdon and persons designated by Brogdon to serve as members of the Board of Directors of Seller (“New Board”).  Immediately following such election, Clifford Neuman,  Pete Bloomquist and A. Leonard Nacht shall resign as directors and executive officers of Seller.  Immediately following the resignations of Messrs. Neuman, Bloomquist and Nacht, the New Board shall appoint new executive officers to fill the vacancies created by such resignations (“New Management”).

3.7  Seller Board Approval.  The Split-Off and the terms of this Agreement will require the approval of the New Board, which shall be completed immediately following the election of the New Board in accordance with Section 3.6 above (“Seller Board Approval”).

3.8  Seller Shareholder Approval.  The Split-Off and the terms of this Agreement will require the approval of the Seller’s Shareholders (“Seller Shareholder Approval”).

  

IV.             BUYER’ REPRESENTATIONS AND WARRANTIES .  Buyer represents and warrants that: 

  

4.1  Capacity and Enforceability .  Buyer has the legal capacity to execute and deliver this Agreement and the documents to be executed and delivered by Buyer at the Closing pursuant to the transactions contemplated hereby. This Agreement and all such documents constitute valid and binding agreements of Buyer, enforceable in accordance with their terms. 

  

4.2  Compliance .  Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby by Buyer will result in the breach of any term or provision of, or constitute a default under, or violate any agreement, indenture, instrument, order, law or regulation to which Buyer is a party or by which Buyer is bound.   

  

4.3  Purchase for Investment .  Buyer is financially able to bear the economic risks of acquiring the Shares and the other transactions contemplated hereby, and has no need for liquidity in his investment in the Shares. Buyer has such knowledge and experience in financial and business matters in general, and with respect to businesses of a nature similar to the business of Split-Off Subsidiary (after giving effect to the Assignment), so as to be capable of evaluating the merits and risks of, and making an informed business decision with regard to, the acquisition of the Shares and the other transactions contemplated hereby. Buyer is acquiring the Shares solely for his own account and not with a view to or for resale in connection with any distribution or public offering thereof, within the meaning of any applicable securities laws and regulations, unless such distribution or offering is registered under the Securities Act of 1933, as amended (the “Securities Act”), or an exemption from such registration is available. Buyer has (i) received all the information he has deemed necessary to make an informed decision with respect to the acquisition of the Shares and the other transactions contemplated hereby; (ii) had an opportunity to make such investigation as he has desired pertaining to Split-Off Subsidiary (after giving effect to the Assignment) and the acquisition of an interest therein and the other transactions contemplated hereby, and to verify the information which is, and has been, made available to him; and (iii) had the opportunity to ask questions of Seller concerning Split-Off Subsidiary (after giving effect to the Assignment). Buyer acknowledges that Buyer is a former director and officer   of Seller, and a current director and officer of Split-Off Subsidiary and, as such, has actual knowledge of the business, operations and financial affairs of Split-Off Subsidiary (after giving effect to the Assignment). Buyer has received no public solicitation or advertisement with respect to the offer or sale of the Shares. Buyer realizes that the Shares are “restricted securities” as that term is defined in Rule 144 promulgated by the Securities and Exchange Commission under the Securities 

Act, the resale of the Shares is restricted by federal and state securities laws and, accordingly, the Shares must be held indefinitely unless their resale is subsequently registered under the Securities Act or an exemption from such registration is available for their resale. Buyer understands that any resale of the Shares by him must be registered under the Securities Act (and any applicable state securities law) or be effected in circumstances that, in the opinion of counsel for Split-Off Subsidiary at the time, create an exemption or otherwise do not require registration under the Securities Act (or applicable state securities laws). Buyer acknowledges and consents that certificates now or hereafter issued for the Shares will bear a legend substantially as follows: 

  

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAWS (THE “STATE ACTS”), HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND QUALIFICATION UNDER THE STATE ACTS OR PURSUANT TO EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATION REQUIREMENTS (INCLUDING, IN THE CASE OF THE SECURITIES ACT, THE EXEMPTIONS AFFORDED BY SECTION 4(1) OF THE SECURITIES ACT AND RULE 144 THEREUNDER). AS A PRECONDITION TO ANY SUCH TRANSFER, THE ISSUER OF THESE SECURITIES SHALL BE FURNISHED WITH AN OPINION OF COUNSEL OPINING AS TO THE AVAILABILITY OF EXEMPTIONS FROM SUCH REGISTRATION AND QUALIFICATION AND/OR SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY THERETO THAT ANY SUCH TRANSFER WILL NOT VIOLATE THE SECURITIES LAWS.   

  

Buyer understands that the Shares are being sold to it pursuant to the exemption from registration contained in Section 4(1) of the Securities Act and that Seller is relying upon the representations made herein as one of the bases for claiming the Section 4(1) exemption. 

  

4.4  Liabilities .  Following the Closing, Seller will have no liability for any debts, liabilities or obligations of Split-Off Subsidiary or its business or activities, and there are no outstanding guaranties, performance or payment bonds, letters of credit or other contingent contractual obligations that have been undertaken by Seller directly or indirectly in relation to Split-Off Subsidiary or its business and that may survive the Closing.   

V.              SELLER’S AND SUBSIDIARY’S REPRESENTATIONS AND WARRANTIES .  Seller and Split-Off Subsidiary, jointly and severally, represent and warrant to Buyer that: 

  

5.1  Organization and Good Standing .  Seller is a corporation duly incorporated, validly existing, and in good standing under the laws of the State of Utah and Split-Off Subsidiary is a limited liability company organized, validly existing and in good standing under the laws of the State of Colorado, respectively. 

  

5.2  Authority and Enforceability .  The execution and delivery of this Agreement and the documents to be executed and delivered at the Closing pursuant to the transactions contemplated hereby, and performance in accordance with the terms hereof and thereof, have been duly authorized by Seller and all such documents constitute valid and binding agreements of Seller enforceable in accordance with their terms. 

  

5.3  Title to Shares .  Seller is the sole record and beneficial owner of the Shares.  At Closing, Seller will have good and marketable title to the Shares, which Shares are, and at the Closing will be, free and clear of all options, warrants, pledges, claims, liens and encumbrances, and any restrictions or limitations prohibiting or restricting transfer to Buyer, except for restrictions on transfer as contemplated by Section 4.3 above.  The Shares constitute all of the issued and outstanding shares of capital stock of Split-Off Subsidiary. 

  

5.4  WARN Act .  Split-Off Subsidiary does not have a sufficient number of employees to make it subject to the Worker Adjustment and Retraining Notification Act. 

  

5.5  Representations in SPA .  Split-Off Subsidiary represents and warrants that all of the representations and warranties by Seller, insofar as they relate to Split-Off Subsidiary, contained in the SPA are true and correct. 

  

VI.             OBLIGATIONS OF BUYER PENDING CLOSING .  Each Buyer covenants and agrees that between the date hereof and the Closing: 

  

6.1  Not Impair Performance .  Buyer shall not take any intentional action that would cause the conditions upon the obligations of the parties hereto to effect the transactions contemplated hereby not to be fulfilled, including, without limitation, taking or causing to be taken any action that would cause the representations and warranties made by any party herein not to be true, correct and accurate as of the Closing, or in any way impairing the ability of Seller to satisfy its obligations as provided in Article VII . 

  

6.2  Assist Performance .  Buyer shall exercise its reasonable best efforts to cause to be fulfilled those conditions precedent to Seller’s obligations to consummate the transactions contemplated hereby which are dependent upon actions of Buyer and to make and/or obtain any necessary filings and consents in order to consummate the sale transaction contemplated by this Agreement. 

  

VII.            OBLIGATIONS OF SELLER PENDING CLOSING .  Seller covenants and agrees that between the date hereof and the Closing: 

  

7.1  Business as Usual .  Split-Off Subsidiary shall operate and Seller shall cause Split-Off Subsidiary to operate in accordance with past practices and shall use best efforts to preserve its goodwill and the goodwill of its employees, customers and others having business dealings with Split-Off Subsidiary. Without limiting the generality of the foregoing, from the date of this Agreement until the Closing Date, Split-Off Subsidiary shall (a) make all normal and customary repairs to its equipment, assets and facilities, (b) keep in force all insurance, (c) preserve in full force and effect all material franchises, licenses, contracts and real property interests and comply in all material respects with all laws and regulations, (d) collect all accounts receivable and pay all trade creditors in the ordinary course of business at intervals historically experienced, and (e) preserve and maintain Split-Off Subsidiary’s assets in their current operating condition and repair, ordinary wear and tear excepted. From the date of this Agreement until the Closing Date, Split-Off Subsidiary shall not (i) amend, terminate or surrender any material franchise, license, contract or real property interest, or (ii) sell or dispose of any of its assets except in the ordinary course of business. Neither Split-Off Subsidiary nor Buyer shall take or omit to take any action that results in Seller incurring any liability or obligation prior to or in connection with the Closing. 

  

7.2  Not Impair Performance .  Seller shall not take any intentional action that would cause the conditions upon the obligations of the parties hereto to effect the transactions contemplated hereby not to be fulfilled, including, without limitation, taking or causing to be taken any action which would cause the representations and warranties made by any party herein not to be materially true, correct and accurate as of the Closing, or in any way impairing the ability of Buyer to satisfy his obligations as provided in Article VI 

  

  

7.3  Assist Performance .  Seller shall exercise its reasonable best efforts to cause to be fulfilled those conditions precedent to Buyer’ obligations to consummate the transactions contemplated hereby which are dependent upon the actions of Seller and to work with Buyer to make and/or obtain any necessary filings and consents. Seller shall cause Split-Off Subsidiary to comply with its obligations under this Agreement. 

7.4  Working Capital Advances.  Pending Closing, Seller shall exercise reasonable effort to extend working capital advances to Georgia REIT (“Georgia REIT Advances”), subject to Seller having sufficient unrestricted capital to do so.   Such Georgia REIT Advances shall constitute the sole 

consideration for the Acquisition pursuant to the SPA and shall be eliminated on consolidation following consummation of the Acquisition.

  

VIII.          SELLER’S AND SUBSIDIARY’S CONDITIONS PRECEDENT TO CLOSING .  The obligations of Seller and Split-Off Subsidiary to close the transactions contemplated by this Agreement are subject to the satisfaction at or prior to the Closing of each of the following conditions precedent (any or all of which may be waived by Seller in writing): 

  

8.1  Representations and Warranties; Performance .  All representations and warranties of Buyer contained in this Agreement shall have been true and correct, in all material respects, when made and shall be true and correct, in all material respects, at and as of the Closing, with the same effect as though such representations and warranties were made at and as of the Closing. Buyer shall have performed and complied with all covenants and agreements and satisfied all conditions, in all material respects, required by this Agreement to be performed or complied with or satisfied by Buyer at or prior to the Closing. 

  

8.2  Additional Documents .  Buyer shall deliver or cause to be delivered such additional documents as may be necessary in connection with the consummation of the transactions contemplated by this Agreement and the performance of their obligations hereunder. 

  

8.3  Release by Split-Off Subsidiary .  At the Closing, Split-Off Subsidiary shall execute and deliver to Seller a general release which in substance and effect releases Seller from any and all liabilities and obligations that Seller may owe to Split-Off Subsidiary in any capacity, and from any and all claims that Split-Off Subsidiary may have against Seller, or its officers, directors, stockholders, employees and agents (other than those arising pursuant to this Agreement or any document delivered in connection with this Agreement). 

8.4  Seller Board Approval.  The Split-Off and the terms of this Agreement shall have obtained Seller Board Approval by the New Board as provided for in Section 3.7 above.

8.4  Shareholder Approval.   Seller’s shareholders shall have approved (i) the Split-Off and the terms of this Agreement, and (ii) the change in control of Seller concurrently with the Closing, including the change in the constituency of the Seller’s board of directors and executive officers. (“Seller Shareholder Approval”).  

8.5  Regulatory Compliance.  Seller shall have complied with all regulatory requirements in connection with obtaining Seller Shareholder Approval and consummating the Split-Off.  Such requirements will include, without limitation, compliance with Sections 14f-1 and Schedule 14C  under the Securities Exchange Act of 1934, as amended (“Exchange Act”) in connection with the change in control of the Seller’s Board of Directors and obtaining Seller Shareholder Approval.

  

IX.            BUYER’ CONDITIONS PRECEDENT TO CLOSING .  The obligation of each Buyer to close the transactions contemplated by this Agreement is subject to the satisfaction at or prior to the Closing of each of the following conditions precedent (any and all of which may be waived by such Buyer in writing): 

  

9.1  Representations and Warranties; Performance .  All representations and warranties of Seller and Split-Off Subsidiary contained in this Agreement shall have been true and correct, in all material respects, when made and shall be true and correct, in all material respects, at and as of the Closing with the same effect as though such representations and warranties were made at and as of the Closing. Seller and Split-Off Subsidiary shall have performed and complied with all covenants and agreements and satisfied all conditions, in all material respects, required by this Agreement to be performed or complied with or satisfied by them at or prior to the Closing. 

9.2  Regulatory Approvals.  Buyer and its principals shall have obtained all regulatory and governmental approvals necessary to consummate the Split-Off and other transactions provided for herein, 

including, without limitation, the approval of the Colorado Division of Gaming (“Gaming Division”) and the issuance by the Gaming Division  of all licenses and permits necessary to complete the Split-Off.  

  

  

X.              OTHER AGREEMENTS . 

  

10.1  Expenses .  Each party hereto shall bear its expenses separately incurred in connection with this Agreement and with the performance of its obligations hereunder. 

  

10.2  Confidentiality .  Buyer shall not make any public announcements concerning this transaction without the prior written agreement of Seller, Buyer and Brogdon, other than as may be required by applicable law or judicial process. If for any reason the transactions contemplated hereby are not consummated, then Buyer shall return any information received by Buyer from Seller or Split-Off Subsidiary, and Buyer shall cause all confidential information obtained by Buyer concerning Split-Off Subsidiary and its business to be treated as such. 

  

10.3  Brokers’ Fees .  In connection with the transaction specifically contemplated by this Agreement, no party to this Agreement has employed the services of a broker and each agrees to indemnify the other against all claims of any third parties for fees and commissions of any brokers claiming a fee or commission related to the transactions contemplated hereby. 

  

10.4  Access to Information Post-Closing; Cooperation . 

  

(a)  Following the Closing, Buyer and Split-Off Subsidiary shall afford to Seller and its authorized accountants, counsel and other designated representatives, reasonable access (and including using reasonable efforts to give access to persons or firms possessing information) and duplicating rights during normal business hours to allow records, books, contracts, instruments, computer data and other data and information (collectively, “Information”) within the possession or control of Buyer or Split-Off Subsidiary insofar as such access is reasonably required by Seller. Information may be requested under this Section 10.4(a) for, without limitation, audit, accounting, claims, litigation and tax purposes, as well as for purposes of fulfilling disclosure and reporting obligations and performing this Agreement and the transactions contemplated hereby. No files, books or records of Split-Off Subsidiary existing at the Closing Date shall be destroyed by Buyer or Split-Off Subsidiary after Closing but prior to the expiration of any period during which such files, books or records are required to be maintained and preserved by applicable law without giving Seller at least 30 days’ prior written notice, during which time Seller shall have the right to examine and to remove any such files, books and records prior to their destruction. 

  

(b)  Following the Closing, Seller shall afford to Split-Off Subsidiary and its authorized accountants, counsel and other designated representatives reasonable access (including using reasonable efforts to give access to persons or firms possessing information) duplicating rights during normal business hours to Information within Seller’s possession or control relating to the business of Split-Off Subsidiary. Information may be requested under this Section 10.4(b) for, without limitation, audit, accounting, claims, litigation and tax purposes as well as for purposes of fulfilling disclosure and reporting obligations and for performing this Agreement and the transactions contemplated hereby. No files, books or records of Split-Off Subsidiary existing at the Closing Date shall be destroyed by Seller after Closing but prior to the expiration of any period during which such files, books or records are required to be maintained and preserved by applicable law without giving Buyer at least 30 days prior written notice, during which time Buyer shall have the right to examine and to remove any such files, books and records prior to their destruction.   

  

(c)  At all times following the Closing, Seller, Buyer and Split-Off Subsidiary shall use their reasonable efforts to make available to the other party on written request, the current and former officers, directors, employees and agents of Seller or Split-Off Subsidiary for any of the purposes set forth in Section 10.4(a) or (b) above or as witnesses to the extent that such persons may reasonably be required in 

connection with any legal, administrative or other proceedings in which Seller or Split-Off Subsidiary may from time to be involved. 

  

(d)  The party to whom any Information or witnesses are provided under this Section 10.4 shall reimburse the provider thereof for all out-of-pocket expenses actually and reasonably incurred in providing such Information or witnesses. 

  

(e)  Seller, Buyer, Split-Off Subsidiary and their respective employees and agents shall each hold in strict confidence all Information concerning the other party in their possession or furnished by the other or the other’s representative pursuant to this Agreement with the same degree of care as such party utilizes as to such party’s own confidential information (except to the extent that such Information is (i) in the public domain through no fault of such party or (ii) later lawfully acquired from any other source by such party), and each party shall not release or disclose such Information to any other person, except such party’s auditors, attorneys, financial advisors, bankers, other consultants and advisors or persons with whom such party has a valid obligation to disclose such Information, unless compelled to disclose such Information by judicial or administrative process or, as advised by its counsel, by other requirements of law. 

  

(f)  Seller, Buyer and Split-Off Subsidiary shall each use their best efforts to forward promptly to the other party all notices, claims, correspondence and other materials which are received and determined to pertain to the other party. 

  

10.5  Guarantees, Surety Bonds and Letter of Credit Obligations .  In the event that Seller is obligated for any debts, obligations or liabilities of Split-Off Subsidiary by virtue of any outstanding guarantee, performance or surety bond or letter of credit provided or arranged by Seller on or prior to the Closing Date, Buyer and Split-Off Subsidiary shall use their best efforts to cause to be issued replacements of such bonds, letters of credit and guarantees and to obtain any amendments, novations, releases and approvals necessary to release and discharge fully Seller from any liability thereunder following the Closing. Buyer and Split-Off Subsidiary, jointly and severally, shall be responsible for, and shall indemnify, hold harmless and defend Seller from and against, any costs or losses incurred by Seller arising from such bonds, letters of credits and guarantees and any liabilities arising therefrom and shall reimburse Seller for any payments that Seller may be required to pay pursuant to enforcement of its obligations relating to such bonds, letters of credit and guarantees.   

  

10.6  Filings and Consents .  Each Buyer, at its risk, shall determine what, if any, filings and consents must be made and/or obtained prior to Closing to consummate the purchase and sale of the Shares. Each Buyer shall indemnify the Seller Indemnified Parties (as defined in Section 12.1 below) against any Losses (as defined in Section 12.1 below) incurred by such Seller Indemnified Parties by virtue of the failure to make and/or obtain any such filings or consents. Recognizing that the failure to make and/or obtain any filings or consents may cause Seller to incur Losses or otherwise adversely affect Seller, Buyer and Split-Off Subsidiary confirm that the provisions of this Section 10.6 will not limit Seller’s right to treat such failure as the failure of a condition precedent to Seller’s obligation to close pursuant to Article VIII above. 

  

10.7  Insurance .  Each Buyer acknowledges that on the Closing Date, effective as of the Closing, any insurance coverage and bonds provided by Seller for Split-Off Subsidiary, and all certificates of insurance evidencing that Split-Off Subsidiary maintains any required insurance by virtue of insurance provided by Seller, will terminate with respect to any insured damages resulting from matters occurring subsequent to Closing. 

  

10.8  Agreements Regarding Taxes . 

  

(a)  Tax Sharing Agreements .  Any tax sharing agreement between Seller and Split-Off Subsidiary is terminated as of the Closing Date and will have no further effect for any taxable year (whether the current year, a future year or a past year). 

  

(b)  Returns for Periods Through the Closing Date .  Seller will include the income and loss of Split-Off Subsidiary (including any deferred income triggered into income by Reg. §1.1502-13 and any excess loss accounts taken into income under Reg. §1.1502-19) on Seller’s consolidated federal income tax returns for all periods through the Closing Date and pay any federal income taxes attributable to such income. Seller and Split-Off Subsidiary agree to allocate income, gain, loss, deductions and credits between the period up to Closing (the “Pre-Closing Period”) and the period after Closing (the “Post-Closing Period”) based on a closing of the books of Split-Off Subsidiary, and both Seller and Split-Off Subsidiary agree not to make an election under Reg. §1.1502-76(b)(2)(ii) to ratably allocate the year’s items of income, gain, loss, deduction and credit. Seller, Split-Off Subsidiary and Buyer agree to report all transactions not in the ordinary course of business occurring on the Closing Date after Buyer’ purchase of the Shares on Split-Off Subsidiary’s tax returns to the extent permitted by Reg. §1.1502-76(b)(1)(ii)(B). Each Buyer agrees to indemnify Seller for any additional tax owed by Seller (including tax owned by Seller due to this indemnification payment) resulting from any transaction engaged in by Split-Off Subsidiary during the Pre-Closing Period or on the Closing Date after such Buyer’s purchase of the Shares. Split-Off Subsidiary will furnish tax information to Seller for inclusion in Seller’s consolidated federal income tax return for the period which includes the Closing Date in accordance with Split-Off Subsidiary’s past custom and practice.   

  

(c)  Audits .  Seller will allow Split-Off Subsidiary and its counsel to participate at Split-Off Subsidiary’s expense in any audits of Seller’s consolidated federal income tax returns to the extent that such audit raises issues that relate to and increase the tax liability of Split-Off Subsidiary. Seller shall have the absolute right, in its sole discretion, to engage professionals and direct the representation of Seller in connection with any such audit and the resolution thereof, without receiving the consent of Buyer or Split-Off Subsidiary or any other party acting on behalf of Buyer or Split-Off Subsidiary, provided that Seller will not settle any such audit in a manner which would materially adversely affect Split-Off Subsidiary after the Closing Date unless such settlement would be reasonable in the case of a person that owned Split-Off Subsidiary both before and after the Closing Date. In the event that after Closing any tax authority informs Buyer or Split-Off Subsidiary of any notice of proposed audit, claim, assessment or other dispute concerning an amount of taxes which pertain to Seller, or to Split-Off Subsidiary during the period prior to Closing, Buyer or Split-Off Subsidiary must promptly notify Seller of the same within 15 calendar days of the date of the notice from the tax authority. In the event Buyer or Split-Off Subsidiary do not notify Seller within such 15 day period, Buyer and Split-Off Subsidiary, jointly and severally, will indemnify Seller for any incremental interest, penalty or other assessments resulting from the delay in giving notice. To the extent of any conflict or inconsistency, the provisions of this Section 10.8 shall control over the provisions of Section 12.2 below. 

  

(d)  Cooperation on Tax Matters .  Buyer, Seller and Split-Off Subsidiary shall cooperate fully, as and to the extent reasonably requested by any party, in connection with the filing of tax returns pursuant to this Section and any audit, litigation or other proceeding with respect to taxes. Such cooperation shall include the retention and (upon the other party’s request) the provision of records and information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. Split-Off Subsidiary shall (i) retain all books and records with respect to tax matters pertinent to Split-Off Subsidiary relating to any taxable period beginning before the Closing Date until the expiration of the statute of limitations (and, to the extent notified by Seller, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority, and (ii) give Seller reasonable written notice prior to transferring, destroying or discarding any such books and records and, if Seller so requests, Buyer agree to cause Split-Off Subsidiary to allow Seller to take possession of such books and records. 

  

10.9  ERISA .  Effective as of the Closing Date, Split-Off Subsidiary shall terminate its participation in, and withdraw from, any employee benefit plans sponsored by Seller, and Seller and Buyer shall cooperate fully in such termination and withdrawal. Without limitation, Split-Off Subsidiary shall be solely responsible for (i) all liabilities under those employee benefit plans notwithstanding any status as an employee benefit plan sponsored by Seller, and (ii) all liabilities for the payment of vacation pay, severance benefits, and similar obligations, including, without limitation, amounts which are accrued but unpaid as of 

the Closing Date with respect thereto. Buyer and Split-Off Subsidiary acknowledge that Split-Off Subsidiary is solely responsible for providing continuation health coverage, as required under the Consolidated Omnibus Reconciliation Act of 1985, as amended (“COBRA”), to each person, if any, participating in an employee benefit plan subject to COBRA with respect to such employee benefit plan as of the Closing Date, including, without limitation, any person whose employment with Split-Off Subsidiary is terminated after the Closing Date.   

  

XI.            TERMINATION .  This Agreement may be terminated at, or at any time prior to, the Closing by mutual written consent of Seller and Buyer. This Agreement may also be terminated by either party upon written notice to the other in the event the Split-Off and Closing have not been consummated on or before December 31, 2012.

  

If this Agreement is terminated as provided herein, it shall become wholly void and of no further force and effect and there shall be no further liability or obligation on the part of any party except to pay such expenses as are required of such party. 

  

XII.           INDEMNIFICATION . 

  

12.1  Indemnification by Buyer .  Buyer covenants and agrees to indemnify, defend, protect and hold harmless Seller and Brogdon, and their respective officers, directors, employees, stockholders, agents, representatives and Affiliates (collectively, the “Seller Indemnified Parties”) at all times from and after the date of this Agreement from and against all losses, liabilities, damages, claims, actions, suits, proceedings, demands, assessments, adjustments, costs and expenses (including specifically, but without limitation, reasonable attorneys’ fees and expenses of investigation), whether or not involving a third party claim and regardless of any negligence of any Seller Indemnified Party (collectively, “Losses”), incurred by any Seller Indemnified Party as a result of or arising from (i) any breach of the representations and warranties of such Buyer set forth herein or in certificates delivered in connection herewith, (ii) any breach or nonfulfillment of any covenant or agreement (including any other agreement of Buyer to indemnify set forth in this Agreement) on the part of such Buyer under this Agreement, (iii) any Assigned Asset or Assigned Liability or any other debt, liability or obligation of Split-Off Subsidiary, (iv) the conduct and operations, whether before or after Closing, of (A) the business of Seller pertaining to the Assigned Assets and Assigned Liabilities or (B) the business of Split-Off Subsidiary, or (v) claims asserted, whether before or after Closing, (A) against Split-Off Subsidiary or (B) pertaining to the Assigned Assets and Assigned Liabilities. 

  

12.2  Third Party Claims . 

  

(a)  Defense .  If any claim or liability (a “Third-Party Claim”) should be asserted against any of the Seller Indemnified Parties (the “Indemnitee”) by a third party after the Closing for which a Buyer has an indemnification obligation under the terms of Section 12.1 , then the Indemnitee shall notify Buyer (the “Indemnitor”) within 20 days after the Third-Party Claim is asserted by a third party (said notification being referred to as a “Claim Notice”) and give the Indemnitor a reasonable opportunity to take part in any examination of the books and records of the Indemnitee relating to such Third-Party Claim and to assume the defense of such Third-Party Claim and in connection therewith and to conduct any proceedings or negotiations relating thereto and necessary or appropriate to defend the Indemnitee and/or settle the Third-Party Claim. The expenses (including reasonable attorneys’ fees) of all negotiations, proceedings, contests, lawsuits or settlements with respect to any Third-Party Claim shall be borne by the Indemnitor. If the Indemnitor agrees to assume the defense of any Third-Party Claim in writing within 20 days after the Claim Notice of such Third-Party Claim has been delivered, through counsel reasonably satisfactory to Indemnitee, then the Indemnitor shall be entitled to control the conduct of such defense, and any decision to settle such Third-Party Claim, and shall be responsible for any expenses of the Indemnitee in connection with the defense of such Third-Party Claim so long as the Indemnitor continues such defense until the final resolution of such Third-Party Claim. The Indemnitor shall be responsible for paying all settlements made or judgments entered with respect to any Third-Party Claim the defense of which has been assumed by the Indemnitors.  Except as provided on subsection (b) below, both the Indemnitor and the Indemnitee must approve any settlement of a Third-Party Claim. A failure by the Indemnitee to timely give the Claim Notice 

shall not excuse Indemnitor from any indemnification liability except only to the extent that the Indemnitor is materially and adversely prejudiced by such failure. 

  

  

  

(b)  Failure to Defend .  If the Indemnitor shall not agree to assume the defense of any Third-Party Claim in writing within 20 days after the Claim Notice of such Third-Party Claim has been delivered, or shall fail to continue such defense until the final resolution of such Third-Party Claim, then the Indemnitee may defend against such Third-Party Claim in such manner as it may deem appropriate and the Indemnitee may settle such Third-Party Claim, in its sole discretion, on such terms as it may deem appropriate. The Indemnitor shall promptly reimburse the Indemnitee for the amount of all settlement payments and expenses, legal and otherwise, incurred by the Indemnitee in connection with the defense or settlement of such Third-Party Claim. If no settlement of such Third-Party Claim is made, then the Indemnitor shall satisfy any judgment rendered with respect to such Third-Party Claim before the Indemnitee is required to do so, and pay all expenses, legal or otherwise, incurred by the Indemnitee in the defense against such Third-Party Claim. 

  

12.3  Non-Third-Party Claims .  Upon discovery of any claim for which a Buyer has an indemnification obligation under the terms of Section 12.1 which does not involve a claim by a third party against the Indemnitee, the Indemnitee shall give prompt notice to Buyer of such claim and, in any case, shall give Buyer such notice within 30 days of such discovery. A failure by Indemnitee to timely give the foregoing notice to Buyer shall not excuse Buyer from any indemnification liability except to the extent that Buyer is materially and adversely prejudiced by such failure. 

  

12.4  Survival .  Except as otherwise provided in this Section 12.4 , all representations and warranties made by Buyer, Split-Off Subsidiary and Seller in connection with this Agreement shall survive the Closing. Anything in this Agreement to the contrary notwithstanding, the liability of all Indemnitors under this Article XII shall terminate on the third (3 rd ) anniversary of the Closing Date, except with respect to (a) liability for any item as to which, prior to the third (3 rd ) anniversary of the Closing Date, any Indemnitee shall have asserted a Claim in writing, which Claim shall identify its basis with reasonable specificity, in which case the liability for such Claim shall continue until it shall have been finally settled, decided or adjudicated, (b) liability of any party for Losses for which such party has an indemnification obligation, incurred as a result of such party’s breach of any covenant or agreement to be performed by such party after the Closing, (c) liability of a Buyer for Losses incurred by a Seller Indemnified Party due to breaches of its representations and warranties in Article IV of this Agreement, and (d) liability of a Buyer for Losses arising out of Third-Party Claims for which Buyer have an indemnification obligation, which liability shall survive until the statute of limitation applicable to any third party’s right to assert a Third-Party Claim bars assertion of such claim.  

  

  

XIII.          MISCELLANEOUS . 

  

13.1  Definitions .  Capitalized terms used herein without definition have the meanings ascribed to them in the SPA. 

  

13.2  Notices .  All notices and communications required or permitted hereunder shall be in writing and deemed given when received by means of the United States mail, addressed to the party to be notified, postage prepaid and registered or certified with return receipt requested, or personal delivery, or overnight courier, as follows: 

  

(a)

If to Seller or Global Split-Off, LLC, addressed to: 

Global Casinos, Inc.

A.

Leonard Nacht, Director

1507 Pine Street

Boulder, Colorado   80302

Fax:  303-449-1045

  

(b)

If to Buyer, addressed to: 

Gemini Gaming, LLC

Clifford L. Neuman, Manager

1507 Pine Street

Boulder, Colorado  80302

Fax:  303-449-1045

  

or to such other address as any party hereto shall specify pursuant to this Section 13.2 from time to time.  

  

  

13.3  Exercise of Rights and Remedies .  Except as otherwise provided herein, no delay of or omission in the exercise of any right, power or remedy accruing to any party as a result of any breach or default by any other party under this Agreement shall impair any such right, power or remedy, nor shall it be construed as a waiver of or acquiescence in any such breach or default, or of any similar breach or default occurring later; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default occurring before or after that waiver. 

  

13.4  Time .  Time is of the essence with respect to this Agreement. 

  

13.5  Reformation and Severability .  In case any provision of this Agreement shall be invalid, illegal or unenforceable, it shall, to the extent possible, be modified in such manner as to be valid, legal and enforceable but so as to most nearly retain the intent of the parties, and if such modification is not possible, such provision shall be severed from this Agreement, and in either case the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby. 

  

13.6  Further Acts and Assurances .  From and after the Closing, Seller, Buyer and Split-Off Subsidiary agree that each will act in a manner supporting compliance, including compliance by its Affiliates, with all of its obligations under this Agreement and, from time to time, shall, at the request of another party hereto, and without further consideration, cause the execution and delivery of such other instruments of conveyance, transfer, assignment or assumption and take such other action or execute such other documents as such party may reasonably request in order more effectively to convey, transfer to and vest in Buyer, and to put Split-Off Subsidiary in possession of, all Assigned Assets and Assigned Liabilities, and to convey, transfer to and vest in Seller and Buyer, and to them in possession of, the Purchase Price Securities and the Shares (respectively), and, in the case of any contracts and rights that cannot be effectively transferred without the consent or approval of other Persons that is unob­tainable, to use its best reasonable efforts to ensure that Split-Off Subsidiary receives the benefits thereof to the maximum extent permissible in accordance with applicable law or other applicable restrictions, and shall perform such other acts which may be reasonably necessary to effectuate the purposes of this Agreement. 

  

13.7  Entire Agreement; Amendments .  This Agreement contains the entire understanding of the parties relating to the subject matter contained herein. This Agreement cannot be amended or changed except through a written instrument signed by all of the parties hereto and by Brogdon. No provisions of this Agreement or any rights hereunder may be waived by any party without the prior written consent of Brogdon. 

  

13.8  Assignment .  No party may assign his, her or its rights or obligations hereunder, in whole or in part, without the prior written consent of the other parties. 

  

13.9  Governing Law .  This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, without giving effect to principles of conflicts or choice of laws thereof.  

  

13.10  Counterparts .  This Agreement may be executed in one or more counterparts, with the same effect as if all parties had signed the same document. Each such counterpart shall be an original, but all such counterparts taken together shall constitute a single agreement. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature page was an original thereof. 

  

13.11  Section Headings and Gender .  The Section headings used herein are inserted for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. All personal pronouns used in this Agreement shall include the other genders, whether used in the masculine, feminine or neuter, and the singular shall include the plural, and vice versa , whenever and as often as may be appropriate. 

  

13.12  Third-Party Beneficiary .  Each of Seller, Buyer and Split-Off Subsidiary acknowledges and agrees that this Agreement is entered into for the express benefit of Brogdon, and that Brogdon is relying hereon and on the consummation of the transactions contemplated by this Agreement in entering into and performing his obligations under the SPA, and that Brogdon shall be in all respects entitled to the benefit hereof and to enforce this Agreement as a result of any breach hereof. 

  

13.13  Specific Performance; Remedies .  Each of Seller, Buyer and Split-Off Subsidiary acknowledges and agrees that each party would be damaged irreparably if any provision of this Agreement is not performed in accordance with its specific terms or is otherwise breached. Accordingly, each of Seller, Buyer and Split-Off Subsidiary agrees that each of them will be entitled to seek an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and its terms and provisions in any action instituted in any court of the United States or any state thereof having jurisdiction over the parties and the matter, subject to Section 13.9 , in addition to any other remedy to which they may be entitled, at law or in equity. Except as expressly provided herein, the rights, obligations and remedies created by this Agreement are cumulative and are in addition to any other rights, obligations or remedies otherwise available at law or in equity, and nothing herein will be considered an election of remedies. 

  

13.14  Submission to Jurisdiction; Process Agent; No Jury Trial . 

  

(a)  Each party to the Agreement hereby submits to the jurisdiction of any state or federal court sitting in the State of Colorado in any action arising out of or relating to this Agreement and agrees that all claims in respect of the action may be heard and determined in any such court. Each party to the Agreement also agrees not to bring any action arising out of or relating to this Agreement in any other court. Each party to the Agreement agrees that a final judgment in any action so brought will be conclusive and may be enforced by action on the judgment or in any other manner provided at law or in equity. Each party to the Agreement waives any defense of inconvenient forum to the maintenance of any action so brought and waives any bond, surety or other security that might be required of any other party with respect thereto.  

  

  

(b)  EACH PARTY TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RIGHTS TO JURY TRIAL OF ANY DISPUTE BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OTHER AGREEMENTS RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR ANY DEALINGS AMONG THEM RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY. The scope of this waiver is intended to be all encompassing of any and all actions that may be filed in any court and that relate to the subject matter of the transactions, including contract claims, tort claims, breach of duty claims and all other common law and statutory claims. Each party to the Agreement hereby acknowledges that this waiver is a material inducement to enter into a business relationship and that they will continue to rely on the waiver in their related future dealings. Each party to the Agreement further represents and warrants that it has reviewed this waiver with its legal counsel, and that each knowingly and 

voluntarily waives its jury trial rights following consultation with legal counsel. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED ORALLY OR IN WRITING, AND THE WAIVER WILL APPLY TO ANY AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING HERETO. In the event of commencement of any action, this Agreement may be filed as a written consent to trial by a court. 

  

13.15  Construction .  The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption or burden of proof will arise favoring or disfavoring any party because of the authorship of any provision of this Agreement. Any reference to any federal, state, local or foreign law will be deemed also to refer to law as amended and all rules and regulations promulgated thereunder, unless the context requires otherwise. The words “include,” “includes,” and “including” will be deemed to be followed by “without limitation.”  The words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder,” and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The parties hereto intend that each representation, warranty and covenant contained herein will have independent significance. If any party hereto has breached any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which that party has not breached will not detract from or mitigate the fact that such party is in breach of the first representation, warranty or covenant.   

  

  

IN WITNESS WHEREOF , the parties hereto have duly executed this Split-Off Agreement as of the day and year first above written. 

  

  

SELLER 

GLOBAL CASINOS, INC.

By:___/s/  A. Leonard Nacht-______________

            A. Leonard Nacht,  Director

  

  

  

  

  

  

 GLOBAL SPLIT-OFF, LLC

By:____/s/  A. Leonard Nacht______________

A.

Leonard Nacht,  Manager

  

  

  

  

  

BUYER 

GEMINI GAMING, LLC

By:___/s/  Clifford L. Neuman______________

           Clifford L. Neuman,  ManagerStock Purchase Agreement

STOCK PURCHASE AGREEMENT

THIS STOCK PURCHASE AGREEMENT (the "Agreement") is entered into effective as of the 1st. day of June, 2012 (the "Closing Date"), by and between GLOBAL CASINOS, INC., a Utah, ("Buyer"), and CHRISTOPHER BROGDON ("Seller").

WHEREAS, Seller owns all of the issued and outstanding shares of the equity securities (the "Securities") of Georgia Healthcare REIT, Inc., a Georgia corporation (the “Company”)

WHEREAS,  Seller desires to sell to Buyer and Buyer desires to purchase the Securities subject to and in accordance with the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of the premises, the mutual benefits to be derived from this Agreement and the representations, warranties, and covenants contained hereinafter, Buyer and Sellers hereby agree as follows:

1.

Purchase and Sale of Shares.  Subject to the terms and conditions herein stated, Seller shall sell, assign, transfer and deliver to Buyer on the Closing Date, and Buyer shall purchase and acquire from Seller on the Closing Date, all issued and outstanding Securities of the Company that will be owned by Seller as of the Closing Date representing 100% of the issued and outstanding shares of the Common Stock of the Company (the "Shares").  The purchase price to be paid by Buyer to Seller on the Closing Date for the Shares is the sum of $100, which sum is acknowledged as having been paid by Buyer to Seller.

2.

Closing and Effective Date.

The closing of the sale and purchase of the Shares shall occur on the first business day following the satisfaction of the following conditions:

(a)

The approval of the Change of Ownership Application (“Application”) submitted by Gemini Gaming, Inc. (“Gemini”) to the Colorado Division of Gaming (“Division of Gaming”) permitting the transfer by Buyer to Gemini of all of the issued and outstanding equity securities of Casinos USA, Inc., Doc Holliday Casinos II, LLC and Global Gaming Technologies, LLC to effect the split-off of those entities to Gemini (the “Split-Off”); 

(b)

The approval of the Split-Off, this Stock Purchase Agreement, the adoption of Amended and Restated Articles of Incorporation (which includes a name change to “Global Healthcare REIT, Inc.) and the transactions provided for therein or contemplated thereby by the Boards of Directors and requisite vote of the Shareholders of Buyer and Seller; and

(c)

The twentieth (20th) day after the mailing by Seller to its shareholders a Definitive Information Statement conforming to the requirements of Schedule 14C and Rules 14c-2 and  14f-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the transactions provided for in this Agreement (the “Closing Date”). 

3.

Additional Agreements.  Seller and Buyer further agree as follows:

(a)

Buyer and Seller acknowledge that the Company is indebted to the Buyer pursuant to secured promissory notes evidencing working capital advances (the “Company Advances”) made by the Buyer to the Company in anticipation of the consummation of this Agreement and the Split-Off. Upon consummation of this Agreement, the Company Advances shall become an intercompany liability which shall be eliminated on consolidation for financial reporting purposes.   Seller shall have the 

1

right, but not the obligation, to cause the Buyer to forgive the indebtedness represented by the Company Advances, at his sole discretion.

(b)

Concurrently with the Closing, the Buyer shall cause its Board of Directors to be reconstituted to consist of Seller and persons designated by Seller, and shall cause its executive officers to consist of Seller and persons designated by Seller.  

4.

Representations and Warranties of Seller.  Seller hereby represents and warrants to Buyer as follows:

(a)

The Shares represent 100% of the issued and outstanding shares of the Company.

(b)

The execution and the delivery of this Agreement and the consummation of the transactions contemplated hereby by Seller do not conflict with or result in a breach or violation of, or default under (or an event that, with notice or lapse of time, or both, would constitute a default), any of the terms, provisions or conditions of the Articles of Incorporation or By-Laws of the Company, or any material agreement or instrument to which Seller is a party or by which Seller is bound.

(c)

This Agreement has been duly authorized by all necessary corporate action on behalf of Seller and has been duly executed and delivered by authorized officers of Seller and is a valid and binding agreement on the part of the Seller that is enforceable against the Seller in accordance with its terms, except as the enforceability hereof may be limited by bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting the enforcement of creditors' rights generally and to judicial limitations on the enforcement of the remedy of specific performance and other equitable remedies.

(d)

Seller owns the Shares, both beneficially and of record, subject to no liens, encumbrances or rights of others, and has the right to transfer to Buyer the entire right, title and interest in and to the Shares.  The Shares are validly issued and nonassessable.

(e)

Seller is not a party to any voting trust or voting agreement, stockholder's agreement, pledge agreement, buy-sell agreement, or first refusal agreement relative to the Shares.

(f)

Seller makes no and expressly disclaims any and all representation or warranty with respect to the financial condition of the Company or its business operations, assets or the value of the Shares.

5.

Representation and Warranties of Buyer.  Buyer hereby represents and warrants to Seller as follows:

(a)

Buyer is acquiring the Shares for its own account for the purpose of investment and not with a view to, or for sale in connection with, any distribution of such Shares, nor with any present intention of distributing or selling such Shares, except insofar as such Shares are included in a public offering registered pursuant to the Securities Act of 1933 (as amended) or the disposition thereof is exempt from such registration.  Buyer understands that the Shares have not been registered under 

federal or state securities laws and that such Shares are being offered and sold to Buyer pursuant to a claimed exemption from the registration requirements of such laws.

(b)

Buyer has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risk of its purchase of the Shares and has the ability to bear the economic risk of the purchase of the Shares.  Buyer has had access to such information concerning the Company, which the Company has made available to Buyer, and has had the opportunity to ask questions 

2

of, and receive answers from, officials of the Company concerning the business, operations, financial condition, assets, liabilities and other matters pertaining to the Company.

(c)

Buyer understands that the Shares being acquired by its hereunder may not be sold, transferred or otherwise disposed of without registration under the Securities Act of 1933 (as amended) or pursuant to an exemption therefrom, in which case, the Company may require that it be furnished with an opinion of counsel for Buyer reasonably satisfactory to the Company that such registration is not required, or Buyer may present to the Company a letter from the Securities and Exchange Commission to the effect that, in the event the Shares are transferred by Buyer without registration, the Commission or the staff thereof will not recommend any action.  Buyer consents that any transfer agent of the Company may be instructed not to transfer any of such stock unless it receives satisfactory evidence of compliance with the foregoing provisions.

6.

Agreements of Buyer.

(a)

Buyer agrees with Seller that in entering into this transaction with Seller and buying the Shares from Seller, Buyer is not relying upon any statement by Seller about the Company or its stock or the value thereof, nor is Buyer relying upon Seller as a source of information pertaining to the Company or its stock or the value thereof.

(b)

Buyer accepts the Shares and control of the Company "as is" and "where is" and acknowledges that Seller makes no and expressly disclaims any and all representations or warranties regarding the Shares, the Company or its financial condition, assets or business operations.

(c)

Buyer acknowledges that it has had an opportunity to conduct its own investigations and due diligence into the Company, its operations, financial condition and has obtained all the information that it has desired in determining to purchase the Shares and control of the Company hereunder.

(d)

All agreements, covenants, representations and warranties of Buyer herein shall be binding upon Buyer.

7.

Agreements of Seller.  Seller agrees with Buyer that in entering into this transaction with Buyer and selling the Shares to Buyer, Seller is not relying upon any statement by Buyer about the Company or its stock or the value thereof, nor is Seller relying upon Buyer as a source of information pertaining to the Company or its stock or the value thereof.

8.

Payment of Expenses.  Each party will be liable for its own costs and expenses incurred in connection with the negotiation, preparation, execution or performance of this Agreement, including without limitation, any legal, accounting, and other professional fees and expenses.

9.

Attorney's Fees for Claims.  In the event that a claim is brought by one party hereto against the other party hereto for breach of any provision hereof or otherwise arising out of the transaction to which this Agreement relates, the prevailing party shall be entitled to payment or reimbursement of the expenses incurred by it in connection with the litigation or the portion thereof as to which it prevails, including but not limited to, attorneys' fees and costs.

10.

Waiver.  Any of the terms or conditions of this Agreement may be waived at any time and from time to time in writing by the party entitled to the benefits thereof without affecting any other terms or conditions of this Agreement.  The waiver by any party hereto of any condition or breach of any 

3

provision of this Agreement shall not operate as a waiver of any other condition or other or subsequent breach.

11.

Amendment.  This Agreement may be amended or modified only by a written instrument executed by the parties hereto.

12.

Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the parties in respect of the transactions contemplated hereby and supersedes all prior agreements, arrangements and understandings, oral or written, relating to the subject matter hereof.  No representation, promise, inducement or statement of intention has been made by either party which is not embodied in this Agreement and no party shall be bound by or liable for any alleged representation, promise, inducement or statement of intention not so set forth.

13.

Survival of Representations, Warranties and Agreements.  All representations and warranties contained in this Agreement shall survive the consummation of the transaction contemplated hereby for a period of two years immediately following the Closing Date.  All agreements and covenants contained in this Agreement not fully performed as of the Closing Date shall survive the Closing Date and continue thereafter until fully performed or until the time for further performance has expired.

14.

Severability.  In case any provision in this Agreement shall be held invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

15.

Third Party Beneficiaries.  Each party hereto intends that this Agreement shall not benefit or create any right or cause of action in or on behalf of any person other than the parties hereto.

16.

Fax/Counterparts.  This Agreement may be executed by telex, telecopy or other facsimile transmission, and may be executed in counterparts, each of which shall be deemed an original, but all of which shall together constitute one agreement.  

17.

Litigation.  Any litigation commenced which is based in whole or in part upon claims under or in connection with this Agreement or the transaction contemplated hereby shall be brought in a court of competent jurisdiction (state or federal) in the United States of America.

18.

General.  This Agreement  shall be construed and enforced in accordance with the laws of the State of Colorado;  may not be transferred or assigned by any party hereto, other than by operation of law, and shall inure to the benefit of and be binding upon Buyer and Seller and their respective successors and assigns; and  may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the  meaning or interpretation of this Agreement.

4

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date and year first above written.

BUYER

SELLER

GLOBAL CASINOS, INC.,

CHRISTOPHER BROGDON

A Utah corporation

By: /s/  A. Leonard. Nacht

/s/   Christopher Brogodon

A. Leonard Nacht

Christopher Brogdon

5

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