Document:

Exhibit 4.41

Exhibit 4.41(1)

Execution Version

LOAN AGREEMENT

Between

SPRING ASIA LIMITED

And

INFOCOMM ASIA HOLDINGS PTE. LTD.

 

 

 

CONTENTS

	 	 	 	 	 
	1. INTERPRETATION
	 	 	1	 
	 
	 	 	 	 
	2. THE SHAREHOLDER LOAN
	 	 	3	 
	 
	 	 	 	 
	3. CONDITIONS TO DRAWDOWN
	 	 	4	 
	 
	 	 	 	 
	4. INTEREST
	 	 	4	 
	 
	 	 	 	 
	5. REPAYMENT
	 	 	5	 
	 
	 	 	 	 
	6. SECURITY AND SENIORITY
	 	 	5	 
	 
	 	 	 	 
	7. REPRESENTATIONS AND WARRANTIES
	 	 	6	 
	 
	 	 	 	 
	8. EVENT OF DEFAULT
	 	 	8	 
	 
	 	 	 	 
	9. TAXES
	 	 	10	 
	 
	 	 	 	 
	10. ASSIGNMENTS AND TRANSFERS
	 	 	10	 
	 
	 	 	 	 
	11. FORCE MAJEURE
	 	 	10	 
	 
	 	 	 	 
	12. AMENDMENTS
	 	 	11	 
	 
	 	 	 	 
	13. NOTICES
	 	 	11	 
	 
	 	 	 	 
	14. GOVERNING LAW AND DISPUTE RESOLUTION
	 	 	11	 
	 
	 	 	 	 
	15. GENERAL PROVISIONS
	 	 	12	 

 

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THIS LOAN AGREEMENT (the “Agreement”) is dated May 20, 2010 (the
“Effective Date”) and made

BETWEEN:

	(1)	 	SPRING ASIA LIMITED (Certificate of Incorporation No. LL017149) (the
“Lender”), a company duly organised and existing under the laws of Labuan with
its registered office at Lot 2 & 3, Level 3, Wisma Lazenda Jalan Kemajuan,
87000 Federal Territory Of Labuan; and

	 
	(2)	 	INFOCOMM ASIA HOLDINGS PTE. LTD. (Company Registration Number 200414772H)
(the “Borrower”), a company incorporated in Singapore with its registered
office at 28 Maxwell Road Red Dot Traffic #04-01 Singapore 069120.

WHEREAS:

	(A)	 	The Borrower was established for the purpose of operating and distributing
online games in the South Asia region and making strategic investments in
operating hubs.

	 
	(B)	 	Subject to the terms hereof, the Lender wishes to make available a loan
facility to the Borrower in a fixed aggregate principal amount of US$6.5
million (the “Loan”) and the Borrower wishes to borrow the Loan.

NOW THEREFORE, in consideration of the foregoing and the mutual promises, covenants and agreements
contained in this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are acknowledged expressly, the Parties hereby agree as follows:

	1.	 	INTERPRETATION

	1.1	 	Definitions

Unless otherwise defined in this Agreement, capitalized terms used in this Agreement shall
have the following meanings:

	 	 	 
	“Affiliate”

	 	means, with regard to a given Person (as defined
below), a Person that Controls (as defined below),
is Controlled by or is under common Control with
the given Person;
	 
	 	 
	“Agreement”

	 	means this Loan Agreement entered into on the date
first written above between the Lender and the
Borrower, as the same may be supplemented and
amended from time to time in accordance with its
terms;
	 
	 	 
	“Blizzard”

	 	Blizzard Entertainment International, a division
of Coöperatie Activision Blizzard International
U.A., a co-operative association, with its
corporate seat in Amsterdam and office address at
Beechavenue 131 D, 1119 RB Schiphol-Rijk, The
Netherlands, registered with the Trade Register
under number 34324431;
	 
	 	 
	“Blizzard Transaction

	 	means any and all agreements entered into or to be

 

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	Documents”

	 	entered into in connection with the transactions
with Blizzard and to which the Borrower is a
party;
	 
	 	 
	“Borrower”

	 	means Infocomm Asia Holdings Pte. Ltd. and its
successors and permitted assigns;
	 
	 	 
	“Business Day”

	 	means any day, other than Saturday or Sunday, on
which banks are open for business in the Hong
Kong, Singapore, Labuan and Taiwan;
	 
	 	 
	“Control”

	 	means ownership of more than 50% of the voting
securities or interests in another Person, or the
ability to direct the management and policies of
such Person, directly or indirectly, whether
through the ownership of voting securities, by
contract or otherwise. The terms “Controlled” and
“Controlling” have meanings corresponding to the
foregoing;
	 
	 	 
	“Drawdown Date”

	 	has the meaning ascribed thereto in clause 2.2;
	 
	 	 
	“Effective Date”

	 	has the meaning ascribed thereto in the
introductory paragraph;
	 
	 	 
	“Event of Default”

	 	has the meaning ascribed thereto in clause 8;
	 
	 	 
	“Event of Force
Majeure”

	 	has the meaning ascribed thereto in clause 11.1;
	 
	 	 
	“GigaMedia Asia
Pacific Limited”

	 	means GigaMedia Asia Pacific Limited (IBC Number
1068168), a company incorporated in the British
Virgin Islands and having its registered office at
Overseas Management Company Trust (B.V.I.) Ltd.,
OMC Chambers, P.O. Box 3152, Road Town, Tortola,
British Virgin Islands;
	 
	 	 
	“GigaMedia
Subscription
Agreement”

	 	means the subscription agreement dated April 30,
2010 (as amended from time to time) entered into
between GigaMedia Asia Pacific Limited and the
Borrower for the subscription of 500,000 class B
shares in the Borrower on the terms and subject to
the conditions set out therein;
	 
	 	 
	“Hong Kong”

	 	means the Hong Kong Special Administrative Region
of the People’s Republic of China;
	 
	 	 
	“HKIAC”

	 	means the Hong Kong International Arbitration
Center and its successors;
	 
	 	 
	“Lender”

	 	means Spring Asia Limited and its successors and
permitted assigns;

 

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	“License Term”

	 	means the period from the date hereof until the
date on which the SCII License and Distribution
Agreement have been terminated or expired;
	 
	 	 
	“Maturity Date”

	 	means the last day of the Term of the Loan;
	 
	 	 
	“Monsoon”

	 	means Monsoon Online Pte. Ltd., a company
incorporated under the laws of Singapore
(registered no. 200919830K), whose registered
office is at 28 Maxwell Road, #04-01, Red Dot
Traffic, Singapore 069120;
	 
	 	 
	“Party”

	 	means either the Lender or the Borrower; and
“Parties” shall mean both the Lender and the
Borrower;
	 
	 	 
	“Person”

	 	means any individual, corporation, partnership,
limited partnership, proprietorship, association,
limited liability company, firm, trust, estate or
other enterprise or entity;
	 
	 	 
	“SC II License and
Distribution
Agreement”

	 	means the License and Distribution Agreement
entered into by and among Blizzard, Monsoon and
the Borrower, under which Monsoon agrees to market
and distribute the videogame software entitled
“Starcraft II”; and
	 
	 	 
	“Term of the Loan”

	 	means the period commencing immediately on the
Drawdown Date and expiring at the earlier of (i)
the closing date of GigaMedia Subscription
Agreement; or (ii) the end of the License Term.

	1.2	 	Construction of certain references

In this Agreement, where the context admits:

	 	(A)	 	all references in this Agreement to designated “clauses” and other subdivisions
are to the designated clauses and other subdivisions of the body of this Agreement;

	 	(B)	 	clause headings are included for convenience only and shall not affect the
interpretation of this Agreement;

	 	(C)	 	terms defined in the singular include the plural and vice versa;

	 	(D)	 	any phrase introduced by the terms “including”, “include”, “in particular” or
any similar expression shall be construed as illustrative and shall not limit the sense
of the words preceding those terms; and

	 	(E)	 	all accounting terms not otherwise defined herein have the meanings assigned
under US generally accepted accounting principles.

	2.	 	THE SHAREHOLDER LOAN

	2.1	 	Subject to the terms of this Agreement, the Lender hereby agrees to advance the Loan to the
Borrower.

	2.2	 	Subject to clause 3, the Drawdown Date shall be the Effective Date. The Borrower shall

 

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issue a drawdown notice to the Lender at the Drawdown Date.

	2.3	 	During the Term of this Agreement, unless expressly agreed by the Parties otherwise, the
amount of the Loan shall be fixed and shall not be changed whatsoever.

	2.4	 	The Borrower shall apply the Loan towards meeting its working capital requirements.

	3.	 	CONDITIONS TO DRAWDOWN

Notwithstanding anything to the contrary expressed or implied in this Agreement, the
Lender’s obligation to make the Loan available to the Borrower is subject to the
satisfaction of each of the following conditions:

	 	(A)	 	All corporate and other proceedings in connection with the Loan contemplated by
this Agreement shall be in form and substance satisfactory to the Lender, and the
Lender shall have received all such original or certified or other copies of such
documents as it may reasonably request, including without limitation, a resolution of
the board of directors of the Borrower approving their acceptance of the terms of this
Agreement and authorising and directing the Borrower to duly execute and deliver this
Agreement and any other related documents;

	 	(B)	 	On the proposed Drawdown Date in a drawdown notice, the Lender shall have
received a drawdown notice for the Loan duly signed and approved by the Borrower;

	 	(C)	 	The representations and warranties of the Borrower contained herein shall be
true on and as of the proposed Drawdown Date, except to the extent that such
representations and warranties relate solely to an earlier date (in which case such
representations and warranties shall be true and accurate on and as of such earlier
date). The Borrower shall have performed or observed all covenants, agreements and
conditions contained herein required to be performed or observed by the Borrower on or
before the proposed Drawdown Date; and

	 	(D)	 	No Event of Default shall have occurred and be continuing.

	4.	 	INTEREST

	4.1	 	Unless additional interest accrues per clause 5.4, the Borrower shall pay interest in respect
of the entire outstanding unpaid principal balance of the Loan at a rate of three percent (3%)
per annum (“Interest Rate”) for the period commencing on (and including) the Drawdown Date and
ending on (but excluding) Maturity Date. Interest shall be payable on the outstanding balance
of the Loan until the Loan is paid in full.

	4.2	 	In no contingency or event shall interest charged hereunder, however such interest may be
characterized or computed, exceed the highest rate permissible under any law deemed applicable
to this Agreement (the “Maximum Rate”). In the event that it is determined that the rate of
interest charged hereunder exceeded the Maximum Rate during any period or periods, the rate of
interest hereunder for such period or periods shall be deemed to have been the Maximum Rate,
and the rate of interest hereunder shall be deemed to have continued to be and shall continue
to be the Maximum Rate for such period as is necessary for the total amount of interest paid
or accrued hereunder to equal the amount of interest that would have been paid or accrued
hereunder had the interest rate hereunder at all times remained as provided in the preceding
subsections of this Clause 4.

 

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If, notwithstanding the foregoing interest rate adjustment, it is determined that the Lender
has received interest in excess of the Maximum Rate, any such excess shall (i) first, be
applied to any unpaid costs and expenses owed to the Lender under this Agreement or any
other loan document and to the unpaid principal amount of the Loan and (ii) second, be
refunded to the Borrower.

	5.	 	REPAYMENT

	5.1	 	Unless otherwise agreed by the Parties, the Borrower shall pay the aggregate principal amount
of the Loan plus any interest accrued thereon to the Lender in US dollars in immediately
available funds on the Maturity Date. Where the Maturity Date shall be on a day which is not
a Business Day, the date for repayment shall be extended to the next following Business Day.

	5.2	 	Unless otherwise provided herein, the Borrower shall not repay any part of the aggregate
principal amount of the Loan prior to the Maturity Date without the Lender’s prior written
consent.

	5.3	 	If any amount due under this Agreement is not paid five (5) Business Days after the Maturity
Date, in addition to the interest accrued and payable per clause 4.1, the Borrower shall pay
an additional interest on such amount unpaid at the rate of 2.5% above interest rate as set
forth in Clause 4 per annum, up to (but excluding) the date on which such amount is paid in
full.

	6.	 	SECURITY AND SENIORITY

	6.1	 	The Borrower undertakes and warrants to the Lender that all payment obligations under this
Agreement shall constitute unconditional, direct, general payment obligations of the Borrower
and shall rank at all times senior to all other existing and future unsecured, subordinated
payment obligations of the Borrower, except if otherwise expressly prohibited by applicable
mandatory law or if otherwise expressly agreed to by the Lender. In respect of any such other
payment obligations and to effect the preceding subordination undertaking, upon request, the
Borrower shall execute (and/or cause to be executed) a Subordination Agreement in form and
substance satisfactory to the Lender.

	6.2	 	The Borrower undertakes and warrants to the Lender that all payment obligations of Borrower
to Lender under this Agreement are secured:

	 	(A)	 	by a senior security interest granted to the Lender by the Borrower in the
Borrower’s net profit generated by all the games operated by the Borrower and its
subsidiaries and all games developed or licensed by the Borrower, whether now owned or
hereafter generated, including without limitation the accounts, documents, money, and
all of the Borrower’s books and records with respect to the foregoing; and

	 	(B)	 	by a senior security interest granted to Lender by the Borrower in the assets,
properties and interests of the Borrower and its subsidiaries, including but not
limited to the receivables, equipment, and any intellectual property the Borrower owns.

To effect the grant of the senior security interest, upon request, the Borrower shall
execute (and/or cause to be executed) (i) a Security and Pledge Agreement in form and
substance satisfactory to the Lender and (ii) a Subordination Agreement whose form and
substance

 

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shall be satisfactory to the Lender.

	6.3	 	Notwithstanding clauses 7.2(D) and 7.3(C), the Borrower undertakes and warrants to the Lender
that, except as expressly permitted by the Lender no other loans or payment obligations of any
type will be secured by any asset, profit or interests of the Borrower without the written
permission of the Lender. To the extent any loan or payment obligation is permitted by Lender
to be so secured, as a condition precedent to the Lender’s permission, the Borrower shall (A)
obtain the Lender’s approval of the underlying security and pledge agreement and (B) execute
(and/or cause to be executed) a Subordination Agreement whose form and substance shall be
satisfactory to the Lender.

	6.4	 	The Borrower undertakes and warrants to do/execute (and to cause to be done/executed), and
refrain from doing/executing (and to cause the refraining from doing/executing) any and all
actions or documents necessary or appropriate, in the Lender’s sole discretion, in order to
effect the Parties’ intents and purposes as set out in this Clause 6.

	7.	 	REPRESENTATIONS AND WARRANTIES

	7.1	 	Representations and Warranties of the Parties

Each Party represents and warrants to the other Party, as of the Effective Date of this
Agreement:

	 	(A)	 	Such Party is duly organised, validly existing and in good standing under the
laws of the jurisdiction in which it purports to be organized and existing and has the
corporate power to own its assets and to carry on its business as now conducted;

	 	(B)	 	Such Party has the corporate power to enter into, exercise its rights and
perform and comply with its obligations under this Agreement and each other agreement
contemplated herein, all of which have been duly authorized by all proper and necessary
corporate actions;

	 	(C)	 	Such Party has taken, fulfilled and done all actions, conditions and things,
required by law to be taken, fulfilled and done (including the obtaining of any
required consents, approvals, authorizations or exemptions or making the necessary
filings, recordings or registrations) so that (i) it may lawfully enter into, exercise
its rights and perform and comply with its obligations under this Agreement and each
other agreement contemplated herein, and (ii) upon execution by all relevant parties
and with due registration, such obligations are legally binding and enforceable in
accordance with the applicable terms; and

	 	(D)	 	The entry into, exercise of such Party’s rights and/or performance of or
compliance with its obligations under this Agreement and each other agreement
contemplated herein do not and will not violate (i) any law to which it is subject,
(ii) its articles of association, or (iii) any of its other constitutional documents.

	7.2	 	Representations and Warranties of the Borrower

The Borrower further represents and warrants to the Lender, as of the Effective Date of this
Agreement and the Drawdown Date (as applicable), that all times while the Loan remains
outstanding:

	 	(A)	 	There are no pending or threatened legal proceedings, lawsuits, arbitration

 

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proceedings, administrative proceedings or other governmental or court proceedings,
or governmental or court orders, injunctions, judgements or awards, or arbitral
awards to which it is a party or by which it or any of its properties or assets is or
may be bound or affected to any material extent;

	 	(B)	 	No Event of Default in respect of the Borrower has occurred and is continuing;

	 	(C)	 	No default has occurred and is continuing under any other agreement to which it
is a party or by which it or any of its properties or assets may be bound or affected
and which materially and adversely affect its business, financial condition or
operations or its ability to perform its obligations under this Agreement and the Loan;
and

	 	(D)	 	It has good and marketable title to the properties and assets owned by it and
material to its business, and such properties and assets are subject to no lien of any
nature whatsoever except encumbrances to title which in the aggregate do not materially
adversely affect the use, proposed use or value of the property or other assets of it.

	7.3	 	Covenants of the Borrower

	 	(A)	 	The Borrower shall maintain its legal and effective corporate existence and be
in compliance with all laws and regulations applicable to the Borrower and pay all
taxes and duties levied on the Borrower by the governmental authorities.

	 	(B)	 	The Borrower shall as soon as possible inform the Lender by notice in writing
of the occurrence of any of the following:

	 	(i)	 	any Event of Default in respect of the Borrower; or

	 
	 	(ii)	 	any event which has or may result in a material adverse effect on
the Borrower’s ability to perform its obligations hereunder.

	 	(C)	 	Except for the pledges expressly permitted in (and effected in accordance with)
Clause 6, the Borrower shall not mortgage, pledge or otherwise encumber or permit to
exist any lien over any of its current or future properties, assets, interests or
profits during the Term of the Loan without an express consent by the Lender in
writing. The Lender acknowledges it is fully aware of the Blizzard Transaction
Documents entered into by the Borrower and Blizzard, including in particular the charge
over the shares in Monsoon granted to Blizzard.

	 	(D)	 	The Borrower shall not sell, transfer or otherwise dispose of, by one or more
transactions or series of transactions, whether related or not, all or any part of its
business or (except for good consideration in the ordinary course of its business) its
assets or revenues without an express consent by the Lender in writing.

	 	(E)	 	The Borrower shall not take any step in relation to merger, consolidation,
demerger, winding-up, administration, liquidation, bankruptcy, dissolution or other
activities of similar nature without an express consent by the Lender in writing.

	 	(F)	 	The Borrower shall immediately inform the Lender in writing of any amendment or
supplement made from time to time to its constitutional documents, and shall ensure
that no amendment or supplement with any potential adverse effect to the rights and
interests of the Lender will be made to its constitutional documents

 

7

 

without an express consent by the Lender in writing.

	 	(G)	 	The Borrower shall, at its own cost and expense, at all times during the Term
of the Loan, take out and maintain full and adequate insurance against losses or damage
by fire, and such other risks as are customarily insured against, including but not
limited to public liability insurance.

	 	(H)	 	The Borrower shall comply with all procedures and requirements of applicable
regulations of the Singapore in connection with any drawdown or repayment under this
Agreement.

	8.	 	EVENT OF DEFAULT

	8.1	 	Events of Default. Each of the following events and occurrences shall constitute an “Event
of Default” under this Agreement:

	 	(A)	 	The Borrower fails to repay the aggregate principal amount of the Loan plus
interest accrued but unpaid within five (5) Business Days after the Maturity Date;

	 	(B)	 	The Borrower fails to observe or perform any of its other obligations contained
in this Agreement (or any transaction contemplated hereby) for thirty (30) days after
written notice thereof has been given to the Borrower;

	 	(C)	 	Any representation, warranty or covenant made by the Borrower in or in
connection with this Agreement (or any transaction contemplated hereby) or any document
provided by or on behalf of it hereunder or thereunder proves to have been incorrect or
misleading or breached in any substantial respect when made;

	 	(D)	 	The Borrower fails to comply with or perform any final and effective judgement
or order made or given by any court of competent jurisdiction; or the Borrower fails to
pay any final and effective judgement or order made or given by any court of competent
jurisdiction;

	 	(E)	 	The Borrower fails to observe or perform any of its obligations under the
GigaMedia Subscription Agreement and any other agreements entered into by and between
the Borrower and GigaMedia Asia Pacific Limited;

	 	(F)	 	Any consents, approvals, authorizations or exemptions required for the
performance or enforceability of the obligations of the Borrower under this Agreement
(or any transaction contemplated hereby) expires, is not renewed on substantially
similar terms and conditions upon expiration or is terminated, revoked or modified, and
any such event may have a material adverse effect on the Borrower’s ability to perform
its obligations hereunder;

	 	(G)	 	Any provision of this Agreement (or of documents for any transaction
contemplated hereby) is or is declared to be null and void, or the validity or
enforceability thereof is contested by the Borrower, or a proceeding is commenced by
any governmental agency or authority having jurisdiction over the Borrower seeking to
establish the invalidity or unenforceability thereof, or the Borrower denies that it
has any or further liability or obligation under this Agreement (or under documents for
any transaction contemplated hereby);

	 	(H)	 	The Borrower, pursuant to relevant Singapore bankruptcy or insolvency laws and
regulations, enters into any compromise or arrangement with its creditors as a

 

8

 

whole, declares itself bankrupt or insolvent, any competent court accepts a petition
to have it declared bankrupt or insolvent, an order is made or an effective
resolution is passed for its winding up (except for the purposes of amalgamation or
reconstruction as a solvent company), or a receiver, custodian, trustee,
administrative receiver or administrator is appointed in respect of the whole or any
material part of the Borrower’s undertaking or assets;

	 	(I)	 	If any distress, execution or other process is levied upon any material part of
the assets of the Borrower and the Borrower is unable to carry out its business in the
ordinary course;

	 	(J)	 	the Borrower shall default in the performance of any other agreement, term or
condition contained in any agreement under which any monetary obligation is created,
and as a result of the Borrower’s default such obligation has become due prior to its
stated maturity and the result of an event specified in this clause is to accelerate or
permit the acceleration of any such obligation in excess of $100,000.

	 	(K)	 	If any other event occurs in relation to the Borrower which, under the laws of
any applicable jurisdiction, has an effect upon the Borrower equivalent or analogous to
any of the events referred to in clauses 8.1(H) to (I) above;

	 	(L)	 	If any “change of control” of the Borrower has occurred. In respect of the
Borrower, a “Change of Control” shall be deemed to have occurred upon the acquisition
of at least fifty percent (50%) of the equity interest in the Borrower by any Person
other than an existing shareholder of the Borrower;

	 	(M)	 	If an “event of default” occurs under any of Blizzard Transaction Documents (as
the term “event of default” is defined thereunder); and

	 	(N)	 	At any time it is or becomes unlawful for the Borrower to perform or comply
with any or all of its obligations under this Agreement (or any transaction
contemplated hereby) or any of the obligations of the Borrower hereunder (or
thereunder) are not or cease to be legal, valid and enforceable.

	8.2	 	Remedies

	 	(A)	 	If an Event of Default has occurred and is continuing, the Lender may take one
or more of the following actions:

	 	(i)	 	prior to the Drawdown Date, by notice to the Borrower, declare
that the Loan to be made to the Borrower shall be cancelled; and

	 
	 	(ii)	 	on or after the Drawdown Date, by notice to the Borrower, declare
the aggregate principal amount of the Loan plus interest accrued to be
immediately due and payable, whereupon such amount will become forthwith due and
payable without presentment, protest, demand or other notice all of which are
hereby waived.

	 	(B)	 	If an Event of Default has occurred and is continuing, the Lender, in addition
to the rights set forth above, will have all the other rights and remedies under
applicable law.

	 	(C)	 	The Lender may exercise the rights described in this clause 8.2 at any time
after the occurrence and during the continuance of an Event of Default, whether or not

 

9

 

the aggregate principal amount of the Loan has become due and payable.

	9.	 	TAXES

The Borrower shall from time to time pay all applicable taxes and other charges in
connection with or attributable to this Agreement and each and every transaction
contemplated under this Agreement, as required by applicable laws and regulations.

	10.	 	ASSIGNMENTS AND TRANSFERS

	10.1	 	This Agreement shall be binding on each Party hereto and their respective successors and
assignees and remain in force.

	10.2	 	The Borrower shall not assign, transfer, novate or dispose all or any of its rights and/or
obligations under this Agreement without prior written consent of the Lender.

	10.3	 	The Borrower hereby agrees that notwithstanding the grant of prior written consent to an
assignment by the Lender, it shall remain jointly and severally liable for the obligations
which it has assigned in accordance with clause 10.2.

	10.4	 	The Borrower undertakes to take all necessary action and execute all documents reasonably
required by the Lender in connection with such assignment, transfer, novation or disposal.

	11.	 	FORCE MAJEURE

	11.1	 	General

Neither Party shall be liable to the other Party to any extent, in damages or
otherwise, as a result of its failure to perform its obligations under this Agreement due to
any event beyond its reasonable control, including but not limited to, war, national
emergency, epidemic, fire, strikes or lock-outs or any other form of industrial action,
insurrection or riots or the requirements or regulations of any civilian or military
authority (for the purpose of this clause an “Event of Force Majeure”).

	11.2	 	Notice

A Party affected by any Event of Force Majeure shall promptly send the other Party a
notice in writing relating thereto, setting out a description of such Event of Force Majeure
and reasons for its non-performance.

	11.3	 	Resuming the performance of obligations

	 	(A)	 	A Party affected by an Event of Force Majeure shall inform the other Party of
any relevant progress from time to time, and take all necessary actions to prevent,
limit or reduce the losses and consequences caused by or in connection with the
suspension of its performance, and shall use its best efforts to avoid, reduce or
eliminate the impact of such Event of Force Majeure.

	 	(B)	 	A Party affected by an Event of Force Majeure shall resume its performance as
soon as practicable.

 

10

 

	12.	 	AMENDMENTS

No amendment or modification of any provision of this Agreement shall be effective
unless it is in writing and signed by both Parties.

	13.	 	NOTICES 

All notices, requests, demands and other communications to be given or delivered under or by
reason of this Agreement shall be in writing (which shall include notice by facsimile or
like transmission) and shall be deemed given:

	 	(A)	 	if delivered by hand, on the day it is delivered, or on the next Business Day
if delivery is made on a non-Business Day or after the business hours of a Business
Day;

	 	(B)	 	if sent by facsimile, on the day when transmittal confirmation is received, or
on the next Business Day if the facsimile is transmitted on a non-Business Day or after
the business hours on a Business Day;

	 	(C)	 	if sent by certified or registered air mail, on the seventh Business Day
following its being deposited at a local postal service provider for mailing if the
address of the addressee for notice is in the same country as the place of mailing, or
otherwise, on the tenth Business Day following its being deposited at a local postal
service provider for mailing,

to the Parties at the following addresses (or addresses as notified by the Parties in
writing from time to time):

	 	 	 
	For Lender:

	 	Spring Asia Limited
	Address

	 	Lot 2 & 3, Level 3, Wisma Lazenda Jalan Kemajuan, 87000

Federal Territory Of Labuan
	Attention

	 	General Counsel
	 
	 	 
	With copies to:

	 	GigaMedia Limited
	Address

	 	The Centrium, 22/F, 60 Wyndham Street,

Central, Hong Kong
	Telephone Number

	 	+852 3166 9830
	Facsimile Number

	 	+852 3166 9831
	Attention:

	 	General Counsel
	 
	 	 
	For Borrower:

	 	Infocomm Asia Holdings Pte. Ltd.
	Address

	 	28 Maxwell Road Red Dot Traffic #04-01 Singapore 069120
	Facsimile Number

	 	+65 6898 8881
	Telephone Number

	 	+65 6898 8881
	Attention:

	 	CEO

	14.	 	GOVERNING LAW AND DISPUTE RESOLUTION

 

11

 

	14.1	 	Governing law

Matters regarding the execution, validity, interpretation and performance of this Agreement
as well as settlements of disputes arising hereunder, shall be governed by the published and
publicly available laws and regulations of Hong Kong and the treaties and other
international agreements to which Hong Kong is a party.

	14.2	 	Dispute Resolution

	 	(A)	 	The Parties shall try to resolve any dispute, controversy or claim arising out
of or in connection with this Contract through friendly consultations between the
Parties. But, if no settlement is reached within thirty (30) days from the date one
Party notifies the other Party in writing of its intention to submit the dispute,
controversy or claim to arbitration in accordance with this Article, then any such
dispute, controversy or claim arising out of or relating to this Contract, or the
breach, termination or invalidity thereof, shall be settled by arbitration by the HKIAC
in accordance with the UNCITRAL Arbitration Rules as at present in force and as may be
amended by the rest of this Article. The arbitration will be administered by HKIAC in
accordance with HKIAC Procedures for Arbitration in force at the date of this Contract
including additions to the UNCITRAL Arbitration Rules as are therein contained.

	 	(B)	 	The place of arbitration shall be in Hong Kong at the HKIAC. The arbitration
proceedings will be conducted in English. The arbitration panel will consist of three
(3) members. Each Party shall select one (1) arbitrator. The presiding arbitrator
shall be selected by agreement between the arbitrators selected by the Parties or,
failing agreement within ten (10) days of the appointment of the two (2)
Party-nominated arbitrators, by the Chairperson of the HKIAC. The arbitration award
shall be final and binding on the Parties, and the Parties agree to be bound thereby
and to act accordingly. The costs of arbitration and the costs of enforcing the
arbitration award (including witness expenses and reasonable attorneys’ fees) shall be
borne by the losing Party, unless otherwise determined by the arbitration award.

	 	(C)	 	In any arbitration proceeding, any legal proceeding to enforce any arbitration
award and in any legal action between the Parties pursuant to or relating to this
Agreement, each Party expressly waives any defence based on the fact or allegation that
it is an agency or instrumentality of a sovereign state.

	 	(D)	 	Any award of the arbitrators may be enforced by any court having jurisdiction
over the Party against which the award has been rendered, or wherever assets of that
Party are located, and shall be enforceable in accordance with the New York Convention
on the Recognition and Enforcement of Foreign Arbitral Awards (1958).

	15.	 	GENERAL PROVISIONS

	15.1	 	Language

	 
	 	 	This Agreement is written in English.

	 
	15.2	 	Further assurances

Each Party shall do and perform, or cause to be done and performed, all such further acts
and things and shall execute and deliver all such other agreements, certificates,
instruments

 

12

 

and documents as the other Party may reasonably request to give effect to the terms and
intent of this Agreement, including, without limitation, seeking relevant government
approvals or registrations (if required).

	15.3	 	Entire agreement

This Agreement, together with the exhibits and the schedules hereto, constitutes the entire
agreement among the Parties with respect to the subject matter hereof and supersedes all
prior written or oral understandings or agreements (except for untrue or fraudulent
statements). Each Party has only relied on the representations, warranties, understandings
and specifications contained in this Agreement in reaching its decision to execute this
Agreement and to enter into the transactions contemplated hereby.

	15.4	 	Severability

If any provision of this Agreement shall be held invalid, illegal, voidable,
unenforceable or unconscionable, to any extent by any court, tribunal or governmental
authority with competent jurisdiction, such parts shall be deemed as having been severed
from this Agreement and the remainder of this Agreement shall continue to be effective. If
any provision is deemed unenforceable, both Parties shall replace it with a similar
provision agreed on through negotiation to reflect the original intention of the Parties to
the greatest extent permitted by law.

	15.5	 	Exclusive remedies

The remedies in this Agreement shall be the sole and exclusive remedies of the Parties with
respect to the subject matter hereof.

	15.6	 	No waiver

A Party’s failure to exercise, exercise with delay or exercise in part its rights under this
Agreement, shall not be deemed to constitute a waiver of its other rights or all rights
under this Agreement. A Party’s waiver of its rights in respect of a breach by the other
Party of this Agreement in one particular situation shall not be deemed to have waived such
Party’s rights against the other Party for a similar breach of this Agreement in other
situations.

	15.7	 	Counterpart execution

This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.

	15.8	 	No third party beneficiary

Except to the extent otherwise expressly provided herein, nothing in this Agreement is
intended to confer upon any Person other than the Parties hereto and their respective
permitted successors and assigns any rights, benefits or obligations hereunder.

	15.9	 	Costs

Each Party shall, subject to Clause 9, pay its own costs relating to the negotiation,
preparation, execution and implementation by it of this Agreement and of any documents
referred to in it.

[Remainder of this page intentionally left blank]

 

13

 

This Agreement is executed by the authorized representatives of each Party as of the date first
written above.

	 	 	 	 	 
	SPRING ASIA LIMITED	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	INFOCOMM ASIA HOLDINGS PTE. LTD.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

Exhibit
4.41(2)

Execution Version

Amendment to Loan Agreement

This Amendment to Loan Agreement (this “Amendment”) is entered into as of June 1, 2010 by and
between (1) Spring Asia Limited (Certificate of Incorporation No. LL017149), a company duly
organized and existing under the laws of Labuan and having its registered office at Lot 2 & 3,
Level 3, Wisma Lazenda Jalan Kemajuan, 87000 Federal Territory Of Labuan (the “Lender”) and (2)
Infocomm Asia Holdings Pte. Ltd. (Company Registration Number 200414772H), a company incorporated
in Singapore and having its registered office at 28 Maxwell Road, #04-01 Red Dot Traffic,
Singapore 069120 (the “Borrower”) and amends that certain Loan Agreement dated as of May 20, 2010
(the “Loan Agreement”) entered into by and between the Lender and the Borrower under which the
Lender agrees to make available a loan facility to the Borrower in a fixed aggregate principal
amount of US$6,500,000 (the “Loan”) and the Borrower agrees to borrow the Loan subject to the
terms and conditions set out therein.

The parties hereby agree as follows:

1. Definitions. Unless otherwise defined herein, all capitalized terms used and not
defined in this Amendment shall have the meaning assigned to such terms in the Loan Agreement.

2. Amendments.

	2.1	 	A new definition is inserted after the definition of “Blizzard” in Clause 1.1 and before the
definition of “Blizzard Transaction Documents” as follows:

“Blizzard Share Charge Agreement means the security over shares agreement dated April 30,
2010 between the Borrower and Blizzard, as amended, varied, novated or supplemented from
time to time;”

	2.2	 	A new definition is inserted after the definition of “Business Day” in Clause 1.1 and before
the definition of “Control” as follows:

“Charged Portfolio has the meaning ascribed thereto in the Blizzard Share Charge
Agreement;”

	2.3	 	Clause 6.2(B) of the Loan Agreement is hereby deleted in its entirety and replaced by the
following:

“(B) by a senior security interest granted to Lender by the Borrower in the assets,
properties and interests of the Borrower and its subsidiaries (excluding the Charged
Portfolio), including but not limited to the receivables, equipment, and any intellectual
property the Borrower owns.”

3. Effect of Amendment. Except as expressly modified in this Amendment, all other terms
and conditions contained in the Loan Agreement shall remain in full force and effect. Except as
expressly provided herein, nothing in this Amendment will be construed as a waiver of any of the
rights or obligations of the parties under the Loan Agreement.

 

 

 

4. Representations and Warranties. Each party hereto represents and warrants to the other
party hereto that this Amendment has been duly authorized, executed and delivered by it and
constitutes a valid and legally binding agreement with respect to the subject matter contained
herein.

5. Notices. Clause 13 (Notices) of the Loan Agreement is hereby incorporated into this
Amendment by this reference.

6. Governing Law and Dispute Resolution. Clause 14 (Governing Law and Dispute Resolution)
of the Loan Agreement, as replaced by this Amendment, is hereby incorporated into this Amendment
by this reference.

7. Entire Agreement. This Amendment contains the entire agreement among the parties with
respect to the subject matter of this Amendment and supersedes and extinguishes all prior
agreements and understandings, oral or written, with respect to such matter.

8.  Retrospective Effectiveness. Upon its execution by the parties hereto, this Amendment
shall take effect retrospectively from May 20, 2010.

 

- 2 -

 

IN WITNESS WHEREOF, the parties have entered into this Amendment effective as of the date set
forth above.

	 	 	 	 	 
	INFOCOMM ASIA HOLDINGS PTE. LTD.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	SPRING ASIA LIMITED	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

[SIGNATURE PAGE TO AMENDMENT TO 6.5M LOAN AGREEMENT]Exhibit 4.42

Exhibit 4.42(1)

EXECUTION COPY

 

STOCK AND ASSET PURCHASE AGREEMENT

AMONG

MANGAS GAMING,

GIGAMEDIA LIMITED,

ULTRA INTERNET MEDIA, S.A.,

AND

THE OTHER PARTIES HERETO NAMED HEREIN

Dated as of December 15, 2009

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I

	 
	 	 	 	 
	Purchase and Sale

	 
	 	 	 	 
	SECTION 1.01. Purchase and Sale
	 	 	2	 
	SECTION 1.02. Acquired Assets and Excluded Assets
	 	 	5	 
	SECTION 1.03. Assumption of Certain Liabilities
	 	 	8	 
	SECTION 1.04. Consents of Third Parties; Certain Permits
	 	 	10	 
	SECTION 1.05. Withholding Taxes
	 	 	10	 
	SECTION 1.06. Designation of Subsidiaries by Holdco
	 	 	11	 
	 
	 	 	 	 
	ARTICLE II

	 
	 	 	 	 
	The Closing and Purchase Price Adjustments

	 
	 	 	 	 
	SECTION 2.01. Closing Date
	 	 	12	 
	SECTION 2.02. Cash Purchase Price Adjustment; Transactions To Be
Effected at the Closing
	 	 	12	 
	SECTION 2.03. Risk of Loss
	 	 	14	 
	SECTION 2.04. Reference Value Adjustment
	 	 	14	 
	SECTION 2.05. Contingent Additional Consideration
	 	 	16	 
	SECTION 2.06. Funding of Funds Held on Deposit Liabilities
	 	 	16	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	Representations and Warranties of Parent and the Sellers

	 
	 	 	 	 
	SECTION 3.01. Organization, Standing and Power; Corporate Records
	 	 	17	 
	SECTION 3.02. Authority; Execution and Delivery; Enforceability
	 	 	19	 
	SECTION 3.03. No Conflicts; Consents
	 	 	19	 
	SECTION 3.04. Financial Statements; Undisclosed Liabilities; Internal
Controls; Indebtedness
	 	 	20	 
	SECTION 3.05. Title to Assets
	 	 	21	 
	SECTION 3.06. Real Property
	 	 	21	 
	SECTION 3.07. Intellectual Property
	 	 	22	 
	SECTION 3.08. Contracts
	 	 	25	 
	SECTION 3.09. Personal Property
	 	 	28	 
	SECTION 3.10. Receivables
	 	 	28	 
	SECTION 3.11. Permits
	 	 	28	 
	SECTION 3.12. Insurance
	 	 	28	 
	SECTION 3.13. Sufficiency of Acquired Assets
	 	 	29	 
	SECTION 3.14. Taxes
	 	 	29	 
	SECTION 3.15. Proceedings
	 	 	30	 
	SECTION 3.16. Benefit Plans
	 	 	30	 

 

i

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 3.17. Absence of Changes or Events
	 	 	32	 
	SECTION 3.18. Compliance with Applicable Laws; Environmental Matters
	 	 	32	 
	SECTION 3.19. Employee and Labor Matters
	 	 	34	 
	SECTION 3.20. Transactions with Affiliates
	 	 	36	 
	SECTION 3.21. Accounts; Safe Deposit Boxes; Officers and Directors;
Customers; Funds Held on Deposit Liabilities
	 	 	36	 
	SECTION 3.22. Brokers
	 	 	36	 
	SECTION 3.23. Projections
	 	 	37	 
	SECTION 3.24. Private Offering
	 	 	37	 
	SECTION 3.25. Investment Purposes
	 	 	37	 
	SECTION 3.26. No Other Representations and Warranties
	 	 	37	 
	 
	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 
	Representations and Warranties of MG

	 
	 	 	 	 
	SECTION 4.01. Organization, Standing and Power; Holdco
	 	 	38	 
	SECTION 4.02. Authority; Execution and Delivery; Enforceability
	 	 	39	 
	SECTION 4.03. No Conflicts; Consents
	 	 	39	 
	SECTION 4.04. Proceedings
	 	 	40	 
	SECTION 4.05. Capital Resources; Financial Statements; Purchaser
Material Adverse Effect
	 	 	40	 
	SECTION 4.06. Brokers
	 	 	41	 
	SECTION 4.07. Investment Purposes
	 	 	41	 
	SECTION 4.08. Private Offering
	 	 	41	 
	SECTION 4.09. No Other Representations and Warranties
	 	 	41	 
	 
	 	 	 	 
	ARTICLE V

	 
	 	 	 	 
	Covenants

	 
	 	 	 	 
	SECTION 5.01. Covenants of Parent and Sellers Relating to Operation and Conduct
of the Businesses
	 	 	42	 
	SECTION 5.02. Covenants of MG and Holdco
	 	 	46	 
	SECTION 5.03. No Solicitation
	 	 	47	 
	SECTION 5.04. Access to Information
	 	 	48	 
	SECTION 5.05. Confidentiality
	 	 	48	 
	SECTION 5.06. Required Actions
	 	 	49	 
	SECTION 5.07. Expenses
	 	 	54	 
	SECTION 5.08. Post-Closing Cooperation
	 	 	54	 
	SECTION 5.09. Publicity
	 	 	54	 
	SECTION 5.10. Agreements Not To Compete
	 	 	55	 
	SECTION 5.11. Further Assurances
	 	 	56	 
	SECTION 5.12. Sales and Transfer Taxes
	 	 	56	 
	SECTION 5.13. Parent Guarantee
	 	 	57	 
	SECTION 5.14. Other Transaction Agreements
	 	 	57	 
	SECTION 5.15. Treatment of Conveyed Subsidiaries’ Indebtedness and Cash
	 	 	57	 

 

ii

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 5.16. Resignations; Appointments
	 	 	58	 
	SECTION 5.17. SBM Guarantee
	 	 	58	 
	SECTION 5.18. Formation of New Parties to Agreement
	 	 	58	 
	SECTION 5.19. Pre-Closing Reorganization
	 	 	59	 
	 
	 	 	 	 
	ARTICLE VA

	 
	 	 	 	 
	Employee Matters

	 
	 	 	 	 
	SECTION 5.01A. General
	 	 	59	 
	SECTION 5.02A. Special U.S. Employment Tax Provisions
	 	 	65	 
	SECTION 5.03A. Special Non-U.S. Provisions
	 	 	65	 
	SECTION 5.04A. Administration, Third Party Beneficiaries, etc
	 	 	66	 
	 
	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 
	Conditions Precedent

	 
	 	 	 	 
	SECTION 6.01. Conditions to Each Party’s Obligation
	 	 	67	 
	SECTION 6.02. Conditions to Obligation of Holdco
	 	 	67	 
	SECTION 6.03. Conditions to Obligations of Sellers
	 	 	69	 
	SECTION 6.04. Frustration of Closing Conditions
	 	 	71	 
	 
	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 
	Termination, Amendment and Waiver

	 
	 	 	 	 
	SECTION 7.01. Termination
	 	 	71	 
	SECTION 7.02. Termination Fee
	 	 	72	 
	SECTION 7.03. Effect of Termination
	 	 	73	 
	 
	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 
	Indemnification

	 
	 	 	 	 
	SECTION 8.01. Indemnification by Parent and the Sellers
	 	 	73	 
	SECTION 8.02. Indemnification by MG and Holdco
	 	 	75	 
	SECTION 8.03. Termination of Indemnification
	 	 	76	 
	SECTION 8.04. Procedures
	 	 	77	 
	SECTION 8.05. Survival of Representations and Covenants
	 	 	78	 
	SECTION 8.06. Tax Treatment of Indemnification Payments
	 	 	79	 
	SECTION 8.07. Tax Matters
	 	 	79	 
	 
	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 
	Tax Indemnification

	 
	 	 	 	 
	SECTION 9.01. Tax Indemnification
	 	 	79	 

 

iii

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 9.02. Termination of Indemnification
	 	 	80	 
	SECTION 9.03. Procedures Relating to Indemnification of Tax Claims
	 	 	81	 
	 
	 	 	 	 
	ARTICLE X

	 
	 	 	 	 
	Tax Matters

	 
	 	 	 	 
	SECTION 10.01. Tax Returns; Tax Payments; Tax Refunds
	 	 	82	 
	SECTION 10.02. Tax Sharing Agreements
	 	 	83	 
	SECTION 10.03. FIRPTA
	 	 	83	 
	SECTION 10.04. Cooperation on Tax Matters
	 	 	83	 
	 
	 	 	 	 
	ARTICLE XI

	 
	 	 	 	 
	Put-Call Provisions

	 
	 	 	 	 
	SECTION 11.01. Put and Call Rights
	 	 	84	 
	SECTION 11.02. Method of Exercise; Determination of Applicable Put-Call Price
	 	 	84	 
	SECTION 11.03. Put-Call Closings
	 	 	85	 
	SECTION 11.04. Representations and Warranties
	 	 	86	 
	SECTION 11.05. Conditions to Put-Call Closings
	 	 	87	 
	SECTION 11.06. Acceleration of Put Rights
	 	 	87	 
	SECTION 11.07. Acceleration of Call Rights
	 	 	88	 
	 
	 	 	 	 
	ARTICLE XII

	 
	 	 	 	 
	General Provisions

	 
	 	 	 	 
	SECTION 12.01. Assignment
	 	 	90	 
	SECTION 12.02. No Third-Party Beneficiaries
	 	 	90	 
	SECTION 12.03. Notices
	 	 	90	 
	SECTION 12.04. Interpretation; Annexes and Exhibits; Certain Definitions
	 	 	92	 
	SECTION 12.05. Counterparts
	 	 	110	 
	SECTION 12.06. Entire Agreement
	 	 	110	 
	SECTION 12.07. Severability
	 	 	110	 
	SECTION 12.08. Consent to Jurisdiction
	 	 	111	 
	SECTION 12.09. GOVERNING LAW
	 	 	111	 
	SECTION 12.10. Waiver of Jury Trial
	 	 	111	 
	SECTION 12.11. Enforcement in Equity and at Law
	 	 	111	 
	SECTION 12.12. Other Subsidiaries and Affiliates
	 	 	112	 
	SECTION 12.13. Amendments and Waivers
	 	 	112	 
	 
	 	 	 	 
	Annex I — Index of Defined Terms
	 	 	 	 
	Annex II — Contingent Additional Consideration
	 	 	 	 
	Annex III — Put-Call Price
	 	 	 	 

 

iv

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Exhibit A — Form of Shareholder Agreement

	 	 	 	 
	Exhibit B — Form of SBM Guarantee
	 	 	 	 

 

v

 

STOCK AND ASSET PURCHASE AGREEMENT (this “Agreement”) dated
as of December 15, 2009, among MANGAS GAMING, a société par actions
simplifiée registered with the Trade and Companies Registry of Paris under
the number 501 420 939 with its registered office located at 5 rue
François 1er, 75008 Paris and organized under the laws of France
(“MG”), GIGAMEDIA LIMITED, a company organized under the laws of
Singapore (“Parent”), ULTRA INTERNET MEDIA, S.A., a company
organized under the laws of Nevis (“UIM”), the subsidiaries of
Parent and UIM listed on the signature pages hereto, the other persons who
shall join this Agreement as parties pursuant to Section 5.18 and, solely
for the purposes of Section 5.17, MONTE-CARLO SBM INTERNATIONAL S.A.R.L.,
a company with its registered office located at 67, rue Ermesinde, L-1469
Luxembourg, organized under the laws of Luxembourg (“SBM”).

WHEREAS (i) CESL, together with its subsidiaries, is engaged in the business of designing,
developing and licensing Software and application services for use in Online Cash-Wager Gambling
Sites and (ii) UIM, together with its subsidiaries, is engaged in the business of advertising,
marketing, operating and supporting Online Cash-Wager Gambling Sites (clauses (i) and (ii)
together, the “Businesses”);

WHEREAS the Parent Stock Sellers and UIM are the record and beneficial owners of the issued
and outstanding shares of capital stock of the Parent Conveyed Subsidiaries and the UIM Conveyed
Subsidiaries, respectively, as set forth in Section 3.01(d) of the Seller Disclosure Letter;

WHEREAS the Parent Asset Sellers and the UIM Asset Sellers own their respective portions of
the Acquired Assets;

WHEREAS the parties hereto desire that, upon the terms and subject to the conditions set forth
in this Agreement, (a) each of the Parent Stock Sellers and UIM shall transfer, sell, convey,
assign and deliver to Holdco (or one or more of Holdco’s subsidiaries designated by Holdco), and
Holdco (directly or through one or more of its subsidiaries) shall purchase, acquire and accept,
the issued and outstanding shares of capital stock of, and all other equity or voting interests in,
the Conveyed Subsidiaries owned by the Parent Stock Sellers or UIM, as the case may be (the
“Shares”), and (b) each of the Parent Asset Sellers and the UIM Asset Sellers shall
transfer, sell, convey, assign and deliver to Holdco (or one or more of Holdco’s subsidiaries
designated by Holdco as set forth herein), and Holdco (directly or through one or more of its
subsidiaries) shall purchase, acquire and accept, the Acquired Assets owned by the Parent Asset
Sellers or UIM Asset Sellers, as the case may be;

WHEREAS the parties hereto desire that, upon the terms and subject to the conditions set forth
in this Agreement, the Holdco Interest Holder shall acquire an amount of Holdco Interests such that
immediately after giving effect to such acquisition

 

1

 

the Holdco Interest Holder holds Holdco Interests representing 40% of the outstanding shares
of Holdco;

WHEREAS the parties hereto desire that, upon the terms and subject to the conditions set forth
in this Agreement, the Holdco Interest Holder shall have the right to require MG to purchase from
the Holdco Interest Holder, and MG shall have the right to require the Holdco Interest Holder to
sell to MG, such Holdco Interests; and

WHEREAS Parent, the Holdco Interest Holder, MG and Holdco shall enter into the Shareholder
Agreement to be effective at, and subject to the occurrence of, the Closing;

NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements
contained in this Agreement, and subject to the conditions set forth in this Agreement, the parties
hereto hereby agree as follows:

ARTICLE I

Purchase and Sale

SECTION 1.01. Purchase and Sale. (a)  On the terms and subject to the conditions of
this Agreement, prior to the Closing:

(i) The shareholders of UIM shall transfer, sell, convey, assign and deliver to IMLL,
and IMLL shall purchase, acquire and accept from the shareholders of UIM, all the issued
and outstanding capital stock of and other equity or voting interests in UIM, free and
clear of all encumbrances, for (A) an amount to be determined by the shareholders of UIM
and IMLL or (B) a promissory note equal to an amount to be determined by the shareholders
of UIM and IMLL (the “UIM Note”).

(ii) UIM, as legal and beneficial owner thereof, shall transfer, convey, assign and
deliver to UIM Canco 1, as a capital contribution in exchange for equity interests of UIM
Canco1, and UIM Canco 1 shall acquire and accept from UIM, all the right, title and
interest as of such time of UIM in, to and under (A) all servers and related information
technology assets of the Businesses located in Kahnawake (collectively, the “Kahnawake
Servers”) and (B) the Permits issued by the KGC for the operation and conduct of the
Businesses (such Permits, collectively, the “Kahnawake License” and, together with
the assets identified in clause (A), the “UIM Kahnawake Assets”), in each case free
and clear of all liabilities (other than Assumed Liabilities), and UIM Canco 1 shall assume
from UIM the Assumed Liabilities, to the extent arising from the UIM Kahnawake Assets (the
“UIM Kahnawake Liabilities”);

(iii) UIM, as legal and beneficial owner thereof, shall transfer, convey, assign and
deliver to UIM Canco 2, as a capital contribution in exchange for

 

2

 

equity interests in UIM Canco 2, and UIM Canco 2 shall acquire and accept from UIM,
all the right, title and interest as of such time of UIM in, to and under the Business
Intellectual Property consisting of trademarks, service marks, logos, trade names,
corporate names, domain names, trade dress, including all goodwill associated therewith,
and all applications, registrations and renewals in connection therewith (collectively, the
“UIM Trademarks”), in each case free and clear of all liabilities (other than
Assumed Liabilities), and UIM Canco 2 shall assume from UIM the Assumed Liabilities, to the
extent arising from the UIM Trademarks (the “UIM Trademark Liabilities”); and

(iv) UIM, as legal and beneficial owner thereof, shall transfer, convey, assign and
deliver to UIM Canco 3, as a capital contribution in exchange for equity interests in UIM
Canco 3, and UIM Canco 3 shall acquire and accept from UIM, all the right, title and
interest as of such time of UIM in, to and under all the Acquired Assets owned by UIM other
than the UIM Kahnawake Assets and the UIM Trademarks (collectively, the “UIM General
Assets”), in each case free and clear of all liabilities (other than Assumed
Liabilities), and UIM Canco 3 shall assume from UIM the Assumed Liabilities of UIM, other
than the UIM Kahnawake Liabilities and UIM Trademark Liabilities (the “UIM General
Liabilities”).

(b) On the terms and subject to the conditions of this Agreement, at the Closing:

(i) GIS shall transfer, sell, convey, assign and deliver to Canadian Newco, and
Canadian Newco shall purchase, acquire and accept from GIS, all the right, title and
interest as of such time of GIS in, to and under the Acquired Assets (including the CIDC
Quebec Assets) owned by GIS (the “GIS Assets”), free and clear of all liabilities
(other than Assumed Liabilities), for (A) an amount in cash equal to a portion of the Cash
Purchase Price and (B) the assumption of the Assumed Liabilities (including the CIDC Quebec
Assumed Liabilities) from GIS;

(ii) UIM shall transfer, sell, convey, assign and deliver to Holdco, and Holdco shall
purchase, acquire and accept from UIM, all the issued and outstanding capital stock of and
other equity or voting interests in Everest Gaming Marketing Services, free and clear of
all encumbrances, for an amount in cash equal to a portion of the Cash Purchase Price;

(iii) UIM shall transfer, sell, convey, assign and deliver to New Maltese Holdco, and
New Maltese Holdco shall purchase, acquire and accept from UIM, all the issued and
outstanding capital stock of and other equity or voting interests in Everest Gaming Malta,
free and clear of all encumbrances except as imposed by applicable securities laws, for an
amount in cash equal to a portion of the Cash Purchase Price;

(iv) immediately following the consummation of the transactions set forth in
Section 1.01(b)(iii):

 

3

 

(A) UIM Canco 1 shall transfer, sell, convey, assign and deliver to Everest
Gaming Malta, and Everest Gaming Malta shall purchase, acquire and accept from UIM
Canco 1, all the right, title and interest as of such time of UIM Canco 1 in, to
and under the UIM Kahnawake Assets, in each case free and clear of all liabilities
(other than Assumed Liabilities) for (x) an amount in cash equal to a portion of
the Cash Purchase Price and (y) the assumption from UIM Canco 1 of the UIM
Kahnawake Liabilities;

(B) UIM Canco 2 shall transfer, sell, convey, assign and deliver to Everest
Gaming Malta, and Everest Gaming Malta shall purchase, acquire and accept from UIM
Canco 2, all the right, title and interest as of such time of UIM Canco 2 in, to
and under the UIM Trademarks, in each case free and clear of all liabilities (other
than Assumed Liabilities), for (x) an amount in cash equal to a portion of the Cash
Purchase Price and (y) the assumption from UIM of the UIM Trademark Liabilities;
and

(C) UIM Canco 3 shall transfer, sell, convey, assign and deliver to Everest
Gaming Malta, and Everest Gaming Malta shall purchase, acquire and accept from UIM
Canco 3, all the right, title and interest as of such time of UIM Canco 3 in, to
and under the UIM General Assets, in each case free and clear of all liabilities
(other than Assumed Liabilities), for (x) an amount in cash equal to a portion of
the Cash Purchase Price and (y) the assumption from UIM of the UIM General
Liabilities;

(v) CESL shall transfer, sell, convey, assign and deliver to Holdco (or one or more
of Holdco’s subsidiaries designated by Holdco), and Holdco (directly or through one or more
of its subsidiaries) shall purchase, acquire and accept from CESL, (A) all the right, title
and interest as of such time of CESL in, to and under the Acquired Assets owned by CESL
(other than the capital stock of, or other equity or voting interests in, CIDC Delaware,
CIDC Quebec, IMLL and CIDC UK), free and clear of all liabilities (other than Assumed
Liabilities) and (B) all the issued shares in the capital of, and other equity or voting
interests in, CIDC UK, free and clear of all encumbrances except as imposed by applicable
securities laws, for (x) a portion of the Cash Purchase Price and (y) the assumption of the
Assumed Liabilities of CESL;

(vi) CIDC Delaware shall transfer, sell, convey, assign and deliver to New CIDC
Delaware, and New CIDC Delaware shall purchase, acquire and accept from CIDC Delaware, all
the right, title and interest of CIDC Delaware in, to and under the Acquired Assets owned
by CIDC Delaware, free and clear of all liabilities (other than Assumed Liabilities), for
(A) an amount in cash equal to a portion of the Cash Purchase Price and (B) the assumption
of the Assumed Liabilities of CIDC Delaware;

(vii) IMLL shall transfer, sell, convey, assign and deliver to New Maltese Holdco (or
a subsidiary of Holdco designated by Holdco), and New Maltese

 

4

 

Holdco (or a subsidiary of Holdco designated by Holdco) shall purchase, acquire and
accept all the issued and outstanding capital stock of and other equity or voting interests
in ApexStar, free and clear of all encumbrances except as imposed by applicable securities
laws, for a portion of the Cash Purchase Price;

(viii) IMLL shall transfer, sell, convey, assign and deliver to Everest Gaming Malta,
and Everest Gaming Malta shall purchase, acquire and accept from IMLL, all the right, title
and interest as of such time of IMLL in, to and under the Acquired Assets owned by IMLL,
free and clear of all liabilities (other than Assumed Liabilities), for aggregate
consideration consisting of (x) the amount of the Cash Purchase Price remaining after
taking into account the portions thereof paid pursuant to Sections 1.01(b)(i)-(vii), (y) a
promissory note issued by Everest Gaming Malta in an amount equal to two-thirds of the
Closing Payment (the “IMLL Note”) and (z) the assumption of the Assumed Liabilities
of IMLL;

(ix) immediately following the consummation of the transactions set forth in
Section 1.01(b)(viii), IMLL shall transfer, convey, assign and deliver to Holdco, as a
capital contribution, and Holdco shall acquire and accept from IMLL, all the right, title
and interest as of such time of IMLL in, to and under the IMLL Note, free and clear of all
liabilities, for (x) an amount of Holdco Interests such that immediately after giving
effect to such issuance IMLL holds 40% of the outstanding Holdco Interests and (y) the
Contingent Additional Consideration; and

(x) immediately following the consummation of the transactions set forth in
Section 1.01(b)(ix), IMLL shall transfer, convey, assign and deliver to the Holdco Interest
Holder, as a capital contribution, and the Holdco Interest Holder shall acquire and accept
from IMLL, all the right, title and interest as of such time of IMLL in, to and under the
Holdco Interests acquired by IMLL pursuant to the transactions set forth in
Section 1.01(b)(ix).

The Cash Purchase Price shall be subject to adjustment and payable as set forth in Section 2.02
(the Cash Purchase Price, as so adjusted, together with the Holdco Interests issued and delivered
to IMLL (and transferred to the Holdco Interest Holder) pursuant to this Agreement, the Reference
Value Adjustment and the Contingent Additional Payment (if any), the “Purchase Price”).
The transactions described in this Section 1.01 are collectively referred to in this Agreement as
the “Acquisition”.

SECTION 1.02. Acquired Assets and Excluded Assets. (a)  The term “Acquired
Assets” means all the business, properties, assets, goodwill, rights and claims of the Parent
Asset Sellers and UIM Asset Sellers, of whatever kind and nature, real or personal, tangible or
intangible, that are owned, leased or licensed by the Parent Asset Sellers and UIM Asset Sellers as
of the Closing Time (or, in the case of the UIM Assets and the GIS Assets, immediately prior to the
Closing Time) and used or held for use in, or arising from, the operation or conduct of the
Businesses, except to the extent

 

5

 

constituting Excluded Assets, including (to the extent not constituting an Excluded Asset) all
of the Parent Asset Sellers’ and UIM Asset Sellers’ right, title and interest in:

(i) all leaseholds and other interests (including all prepaid rent, security deposits
and options to renew or purchase) in the real property listed on Section 1.02(a)(i) of the
Seller Disclosure Letter, in each case together with all right, title and interest of the
Parent Asset Sellers and UIM Asset Sellers to and in all buildings, improvements and
fixtures thereon and all other appurtenances thereto;

(ii) all other tangible personal property and interests therein, including all
apparatus, materials, office supplies, fixtures, tools, toolings, machinery, equipment,
furniture, furnishings and vehicles, wherever located, that are used or held for use in, or
arise from, the operation or conduct of the Businesses;

(iii) all accounts, accounts receivable, pre-paid expenses, advance payments,
prepayments, security deposits, deferred charges, letters of credit, deposits, notes
receivable and other rights to payment (excluding any such items to the extent relating
solely to Contracts that are not Assigned Contracts) arising from the operation or conduct
of the Businesses;

(iv) all Business Intellectual Property and all rights of the Parent Asset Sellers and
UIM Asset Sellers under confidentiality agreements or other agreements to the extent
designed to protect for the Parent Asset Sellers and the UIM Asset Sellers their interests
in the Business Intellectual Property;

(v) all Permits issued to or owned, used or possessed by the Parent Asset Sellers and
UIM Asset Sellers that are used or held for use in, or arise from, the operation or conduct
of the Businesses, but only to the extent such Permits may be transferred, sold, conveyed,
assigned or delivered in connection herewith;

(vi) all Contracts that are listed on Section 1.02(a)(vi) of the Seller Disclosure
Letter, and all other Contracts (including purchase orders and sales orders) (A) that are
used or held for use in, or that arise from, the operation or conduct of the Businesses or
(B) to which any Acquired Asset is subject;

(vii) all rights, claims, causes of action and credits of the Parent Asset Sellers and
UIM Asset Sellers to the extent relating to any Acquired Asset or any Assumed Liability or
arising from the operation or conduct of the Businesses, including all guarantees,
warranties, indemnities and similar rights in favor of the Parent Asset Sellers and UIM
Asset Sellers in respect of any Acquired Asset or any Assumed Liability;

(viii) all customer, vendor and supplier lists, other distribution lists, files,
documents and correspondence relating to customers, suppliers and vendors of the
Businesses, all sales and promotional literature, manuals, product drawings, blueprints and
schematics and all other general, business, legal, technical, financial, accounting, and
personnel records, files, invoices and documents

 

6

 

(including books of account, ledgers and other records, and, in all cases, in any form
or medium), of the Parent Asset Sellers and UIM Asset Sellers that are used or held for use
in, or that arise from, the conduct or operation of the Businesses;

(ix) all assets of or relating to any Seller Benefit Plan that (A) are transferred to
Holdco or any of its affiliates or to any employee benefit plan maintained by Holdco or any
of its affiliates, as expressly provided in Article VA of this Agreement, (B) are
associated with or attributable to any Assumed Benefit Plan or (C) transfer automatically
to Holdco or any of its affiliates either pursuant to Applicable Law or in connection with
any liability expressly assumed by Holdco and its affiliates pursuant to this Agreement
(collectively, “Transferred Benefit Plan Assets”);

(x) all Transferred Personnel Files;

(xi) (A) copies of all Tax records, files, invoices and documents (including books of
account, ledgers and other records) of the Parent Asset Sellers and the UIM Asset Sellers
used or held for use in, or that arise from, the operation or conduct of the Businesses and
(B) originals of the materials described in clause (A) to the extent reasonably requested
by Holdco (or any of Holdco’s subsidiaries) prior to, or from time to time following, the
Closing; provided that such requests shall be made in writing and shall describe
the reasons that such originals are being requested; and

(xii) all goodwill generated by or associated with the Businesses.

(b) The term “Excluded Assets” means:

(i) all cash and cash equivalents and short-term investments of the Parent Asset
Sellers, UIM Asset Sellers and Conveyed Subsidiaries (other than petty cash and, in the
case of the Conveyed Subsidiaries, cash to the extent of the Funds Held on Deposit
Liabilities);

(ii) all rights, claims, causes of action and credits of the Parent Asset Sellers, the
UIM Asset Sellers and the Conveyed Subsidiaries to the extent relating to any Excluded
Asset or any Excluded Liability, including all guarantees, warranties, indemnities and
similar rights in favor of the Parent Asset Sellers, the UIM Asset Sellers and the Conveyed
Subsidiaries in respect of any Excluded Asset or any Excluded Liability indemnified
pursuant to Article VIII or Article IX;

(iii) all assets of the Seller Benefit Plans, other than Transferred Benefit Plan
Assets;

(iv) all rights of Parent, the Parent Asset Sellers, the UIM Asset Sellers or the
Holdco Interest Holder under (A) this Agreement, (B) the Implementing Agreements
(collectively, the “Ancillary Agreements”), (C) the Shareholder

 

7

 

Agreement and (D) in the case of the Holdco Interest Holder, the Holdco Interests;

(v) all personnel files of Parent, the Parent Asset Sellers and the UIM Asset Sellers
to the extent that they relate to the Employees, other than the Transferred Personnel
Files; and

(vi) all refunds, credits and offsets with respect to Taxes that are Excluded
Liabilities.

Parent and the Sellers shall take (or cause one or more of their affiliates to take) such action as
is necessary to transfer, effective as of the Closing, the Excluded Assets from the Conveyed
Subsidiaries to Parent, a Seller or one or more of their affiliates.

SECTION 1.03. Assumption of Certain Liabilities. (a)  Upon the terms and subject to
the conditions of this Agreement, Holdco (or one or more subsidiaries of Holdco designated by
Holdco) shall assume from the Parent Asset Sellers and the UIM Asset Sellers, effective as of the
Closing, and from and after the Closing Holdco (or the applicable subsidiary of Holdco) shall pay,
perform and discharge when due, all the liabilities, obligations and commitments of the Parent
Asset Sellers and the UIM Asset Sellers as of the Closing Time, except to the extent constituting
Excluded Liabilities (all of the foregoing, the “Assumed Liabilities”), including the
following:

(i) all liabilities, obligations and commitments of the Parent Asset Sellers and UIM
Asset Sellers under the Assigned Contracts;

(ii) all liabilities, obligations and commitments to the extent arising from the
ownership of the Acquired Assets;

(iii) all liabilities, obligations and commitments of the Parent Asset Sellers and UIM
Asset Sellers that constitute “current liabilities”;

(iv) all liabilities, obligations and commitments related to employment or employee
benefits, other than any liabilities, obligations or commitments that relate to (A) the
employment or employee benefits of the persons listed on Section 1.03(a)(iv) of the Seller
Disclosure Letter that arise before the Closing Time, (B) Seller Benefit Plans other than
the Assumed Benefit Plans, (C) any Change of Control Payment or (D) the Seller Equity Plans
(the “Covered Employee Liabilities”);

(v) all liabilities, obligations and commitments of the Parent Asset Sellers and UIM
Asset Sellers relating to the Funds Held on Deposit Liabilities; and

(vi) all liabilities, obligations and commitments of the Parent Asset Sellers and UIM
Asset Sellers relating to wagers staked by customers of the Businesses in respect of
“pending bets” as of the Closing Time.

 

8

 

(b) Notwithstanding anything in Section 1.03(a) or any other provision of this Agreement or
any Ancillary Agreement to the contrary, Holdco and its subsidiaries shall not assume or be liable
for any of the following liabilities, commitments or obligations of Parent, any Parent Asset
Seller or UIM Asset Seller or any of their respective affiliates (the “Excluded
Liabilities”), all of which shall be retained and paid, performed and discharged when due by
Parent, the Parent Asset Sellers, the UIM Asset Sellers or their affiliates, as applicable:

(i) any Indebtedness (other than Intercompany Indebtedness) of Parent, any Parent
Asset Seller or any UIM Asset Seller, or any Guarantee by Parent, any Parent Asset Seller
or any UIM Asset Seller of any Indebtedness (other than Indebtedness incurred by MG, Holdco
or Holdco’s subsidiaries following the Closing Time, and other than Indebtedness owed to
Conveyed Subsidiaries);

(ii) any liability, obligation or commitment of any Parent Asset Seller, UIM Asset
Seller or Conveyed Subsidiary that relates to, or that arises from, any Excluded Asset, or
that arises out of the distribution to, or ownership or operation by, any Parent Asset
Seller, UIM Asset Seller or Conveyed Subsidiary of the Excluded Assets or associated with
the realization of the benefits of any Excluded Asset;

(iii) any liability, obligation or commitment for Taxes, whether or not accrued,
assessed or currently due and payable, (A) of any Parent Asset Seller or UIM Asset Seller
for all taxable periods or (B) arising out of or relating to the Acquired Assets or the
operation or conduct of the Businesses, in each case, for any Pre-Closing Tax Period;

(iv) any liability, obligation or commitment relating to employment, compensation,
employee benefits or any employee, other than the Covered Employee Liabilities;

(v) except to the extent expressly provided to the contrary in Section 2.04(b), any
liability, obligation or commitment for any fees or expenses incurred by Parent, any Parent
Asset Seller, any UIM Asset Seller or any of their affiliates (including the fees and
expenses of legal counsel, and fees and expenses of any accountant, auditor, broker,
financial advisor or consultant retained by or on behalf of Parent, any Parent Asset
Seller, any UIM Asset Seller or any of their affiliates) arising from or in connection with
the preparation, negotiation and consummation of this Agreement, the Holdco Interests held
by the Holdco Interest Holder, the Ancillary Agreements, the Shareholder Agreement (in the
case of the Holdco Interest Holder), the Acquisition, any of the other transactions
contemplated hereby or thereby or any liquidation or dissolution of any Parent Asset Seller
or UIM Asset Seller following the Closing Time;

(vi) any liability, obligation or commitment of any Parent Asset Seller to Parent, of
any UIM Asset Seller to UIM, or to any of their respective affiliates,

 

9

 

other than (A) Intercompany Indebtedness or (B) pursuant to the agreements set forth
in Section 1.03(d) of the Seller Disclosure Letter; and

(vii) the UIM Note and the IMLL Note.

(c) Holdco (or one or more of Holdco’s subsidiaries designated by Holdco) shall acquire the
Acquired Assets free and clear of all liabilities, obligations and commitments of Parent, the
Parent Asset Sellers, the UIM Asset Sellers or any of their affiliates, other than the Assumed
Liabilities, and free and clear of all Liens, other than Permitted Liens.

SECTION 1.04. Consents of Third Parties; Certain Permits. (a)  Notwithstanding
anything in this Agreement to the contrary, this Agreement shall not constitute an agreement to
assign or transfer any asset if an attempted assignment thereof, without the consent of a third
party, would constitute a breach or other contravention of the rights of such third party, would be
ineffective with respect to any party to a Contract concerning such asset, or would in any way
adversely affect the rights of any Parent Asset Seller, UIM Asset Seller or, upon transfer, Holdco
(or any of Holdco’s subsidiaries) under such asset. If any transfer or assignment by any Parent
Asset Seller or UIM Asset Seller to, or any assumption by Holdco (or any of Holdco’s subsidiaries)
of, any interest in, or liability, obligation or commitment under, any asset requires the consent
of a third party, then such assignment or assumption shall be made subject to such consent being
obtained. To the extent any asset may not be assigned to Holdco (or any of Holdco’s subsidiaries)
by reason of the absence of any such consent and MG waives Section 6.02(d) with respect to such
consent, Holdco and its subsidiaries shall not be required to assume any liabilities arising under
such asset.

(b) If any consent referred to in Section 1.04(a) is not obtained prior to the Closing and
MG waives Section 6.02(d) with respect to such consent, (x) Parent and the Parent Asset Sellers
and (y) UIM and the UIM Asset Sellers shall cooperate with MG (such cooperation to be at their own
expense) in any lawful and reasonable arrangement reasonably proposed by MG under which Holdco
shall obtain the economic claims, rights and benefits under the asset with respect to which such
consent has not been obtained in accordance with this Agreement. Such reasonable arrangement may
include (i) the subcontracting, sublicensing or subleasing to Holdco (or one or more of Holdco’s
subsidiaries designated by Holdco) of any and all rights of the applicable Parent Asset Seller or
UIM Asset Seller against the other party to such third-party agreement arising out of a breach or
cancelation thereof by the other party, and (ii) the enforcement by the applicable Parent Asset
Seller or UIM Asset Seller of such rights. To the extent, and only to the extent, Holdco (or one
or more of Holdco’s subsidiaries designated by Holdco) is able to receive the economic claims,
rights and benefits under such asset, Holdco (or its applicable subsidiary) shall be responsible
for the liabilities, if any, arising under such asset.

SECTION 1.05. Withholding Taxes. (a) Except as set forth in Section 1.05(b), each
of MG, Holdco, the Sellers and the Holdco Interest Holder acknowledges and agrees that no
withholding Taxes are expected to be applicable to the payments made

 

10

 

by MG or Holdco (or any of Holdco’s subsidiaries) to the Sellers or the Holdco Interest
Holder. To the extent that MG or Holdco (or any of Holdco’s subsidiaries) become aware of any
applicable withholding Taxes, MG or Holdco (or any of Holdco’s subsidiaries), as applicable,
(i) shall provide written notice to Parent and the Sellers of the amount of such Tax no later than
five business days prior to the date of such payment and (ii) shall withhold and pay such Tax to
the appropriate Taxing Authority. Any amounts paid by MG or Holdco (or any of Holdco’s
subsidiaries), as applicable, shall be treated for purposes of this Agreement as having been paid
by MG or Holdco (or any of Holdco’s subsidiaries), as applicable, to the applicable Seller or the
Holdco Interest Holder. Each of MG, Holdco, the Sellers and the Holdco Interest Holder agrees to
use commercially reasonable efforts to obtain exemptions from, or reductions of, any Taxes required
to be withheld from payments made under this Agreement.

(b) (i) Parent and each Seller agrees that the covenants granted by Parent and Sellers in
Section 5.10 are an integral part of this Agreement and that such covenants were granted, in whole
or in part, to maintain or preserve the fair market value of the Acquired Assets associated with
the portion of the Business conducted in Canada. Subject to Section 1.05(b)(ii), upon the
enactment of any provisions of the Income Tax Act (Canada) (the “ITA”) that are of similar
import to the legislative proposals respecting the taxation of amounts received or receivable in
respect of “restrictive covenants” as contained in former Bill C-10 (formerly Bill C-33) and
provided such provisions have retroactive application to the Acquisition (the “Canadian
Restrictive Covenant Proposals”), Holdco, Parent and each of the Sellers acknowledge and agree
that an amount equal to 25% of the amount allocated, if any, under Article II to the covenants of
Parent and the Sellers under Section 5.10 (the “Restrictive Covenant Withholding Amount”)
shall be paid by Parent to Holdco (or a subsidiary designated by Holdco) on or before the date
that is 10 business days after Royal Assent of the Canadian Restrictive Covenant Proposals, and
Holdco (or a subsidiary designated by Holdco) shall remit the Restrictive Covenant Withholding
Amount to the Receiver General for Canada on account of Taxes of the Parent or the Sellers by
certified check delivered to Holdco (or a subsidiary designated by Holdco) or in accordance with
wire transfer instructions provided by Holdco to Parent or the Sellers.

(ii) Holdco, Parent and the Sellers agree to cooperate in order to determine whether
there are any tax elections available in the Canadian Restrictive Covenant Proposals, or
other actions that may reasonably be taken to mitigate, reduce or eliminate the Restrictive
Covenant Withholding Amount, if any, in respect of the covenants of Parent and the Sellers
contained in Section 5.10 and, for this purpose, an election or other action shall not be
made or taken if Holdco, in its sole discretion, which discretion shall not be unreasonably
exercised, determines that such election or action could result in adverse tax consequences
to Holdco or its affiliates.

SECTION 1.06. Designation of Subsidiaries by Holdco. Holdco shall provide Parent and
the Sellers with written notice, no later than 10 business days prior to the Closing Date, of any
designation by Holdco of any of its subsidiaries to perform any of the obligations, or to exercise
any of the rights, of MG or Holdco in accordance with

 

11

 

this Agreement. Such notice shall set forth the name and jurisdiction of organization of each
subsidiary so designated and shall identify the obligations or rights hereunder with respect to
which such subsidiary has been designated. No such designation by Holdco of any subsidiary to
perform any of MG or Holdco’s obligations hereunder shall relieve MG or Holdco, as the case may be,
from any obligation or liability that it may have hereunder.

ARTICLE II

The Closing and Purchase Price Adjustments

SECTION 2.01. Closing Date. The closing of the Acquisition (the “Closing”)
shall take place at the offices of Cravath, Swaine & Moore LLP, Worldwide Plaza, 825 Eighth Avenue,
New York, New York 10019, on the fifth business day following the satisfaction (or, to the extent
permitted by Applicable Law, waiver by the party or parties entitled to the benefits thereof) of
the conditions set forth in Article VI, other than conditions that by their nature are to be
satisfied as of the Closing, or, if on such day any condition set forth in Article VI is not
satisfied (or, to the extent permitted by Applicable Law, waived by the party or parties entitled
to the benefit thereof), as soon as practicable after all the conditions set forth in Article VI
are satisfied (or, to the extent permitted by Applicable Law, waived by the party or parties
entitled to the benefits thereof), or at such other place, time and date as shall be agreed between
Parent, the Sellers and MG. The date on which the Closing occurs is referred to in this Agreement
as the “Closing Date”.

SECTION 2.02. Cash Purchase Price Adjustment; Transactions To Be Effected at the
Closing. (a) (i) In order to calculate the Closing Payment, not later than five business
days prior to the Closing Date, Parent and UIM shall prepare and deliver to MG and Holdco a
statement (the “Estimated Closing Statement”) setting forth (A) the estimated amount of the
Funds Held on Deposit Liabilities of the Parent Asset Sellers, UIM Asset Sellers and Conveyed
Subsidiaries as of the Closing Time (the “Estimated Funds Held on Deposit Liabilities”),
(B) the estimated amount of cash and cash equivalents held by the Conveyed Subsidiaries as of the
Closing Time, (C) the estimated Working Capital Amount as of the Closing Time (the “Estimated
Working Capital Amount”) and (D) the amount of the Closing Payment. During the preparation of
the Estimated Closing Statement, MG and its Representatives shall be granted reasonable access to
the personnel, books and records of Parent, UIM, their respective subsidiaries and their respective
Representatives necessary for such preparation (provided, however, that such access
shall not impede or impair the preparation of the Estimated Closing Statement) and shall be kept
apprised of, and shall receive copies of all drafts and working papers exchanged between Parent,
UIM and the Sellers, on the one hand, and their respective outside accountants, on the other hand,
relating to, the preparation of the Estimated Closing Statement. MG and its Representatives shall
be permitted to ask questions of Parent, UIM, their respective subsidiaries and their respective
Representatives in connection with such access but shall not have the right to require any changes
to the Estimated Closing Statement. The rights of MG and its Representatives

 

12

 

under this Section 2.02(a) shall not in any way preclude MG or its Representatives from taking
any positions with respect to matters included in the Estimated Closing Statement.

(ii) The “Closing Payment” shall be an amount equal to the Cash Purchase Price
adjusted as follows:

(A) an amount equal to 60% of the excess (if any) of (1) the Estimated Funds
Held on Deposit Liabilities over (2) the amount of cash and cash equivalents shown
on the Estimated Closing Statement shall be deducted in calculating the Closing
Payment;

(B) if the Estimated Working Capital Amount is less than the Target Working
Capital Amount, an amount equal to 60% of the excess of the Target Working Capital
Amount over the Estimated Working Capital Amount shall be deducted in calculating
the Closing Payment;

(C) if the Estimated Working Capital Amount is greater than the Target Working
Capital Amount, an amount equal to 60% of the excess of the Estimated Working
Capital Amount over the Target Working Capital Amount shall be added in calculating
the Closing Payment;

(D) if the First WSOP Installment is not paid prior to the Closing, an amount
equal to the First WSOP Installment shall be deducted in calculating the Closing
Payment; and

(E) if the Second WSOP Installment is paid prior to the Closing, an amount
equal to 60% of the Second WSOP Installment shall be added in calculating the
Closing Payment.

The amount of any difference between the Cash Purchase Price and the Closing Payment shall
be allocated among the Sellers in a manner to be agreed upon by MG, Parent and the Sellers.

(b) At the Closing:

(i) Parent shall, and shall cause the Parent Stock Sellers and Parent Asset Sellers
to, and UIM shall, and shall cause the UIM Asset Sellers to, deliver to Holdco (A) such
appropriately executed deeds (in recordable form), bills of sale, assignments, stock or
share certificates or appropriate indemnities in respect of any certificates which have
been lost (if any Shares are certificated), stock powers or stock transfer forms duly
endorsed in blank and other instruments of transfer relating to the Acquired Assets and the
Shares in form and substance reasonably satisfactory to MG and its counsel and (B) such
other documents as MG or its counsel may reasonably request to demonstrate satisfaction of
the conditions and compliance with the covenants set forth in this Agreement and
consummation of the transactions contemplated by this Agreement to occur at the Closing;

 

13

 

(ii) Holdco (or one or more of Holdco’s subsidiaries designated by Holdco) shall
deliver to each Seller (A) payment, by wire transfer to a bank account designated in
writing by such Seller (such designation to be made at least three business days prior to
the Closing Date), of immediately available funds in an amount in U.S. dollars equal to the
portion of the Cash Purchase Price to be paid to such Seller pursuant to Section 1.01, as
adjusted pursuant to Section 2.02(a), and (B) such other documents as such Seller or its
counsel may reasonably request to demonstrate satisfaction of the conditions and compliance
with the covenants set forth in this Agreement and consummation of the transactions
contemplated by this Agreement to occur at the Closing; and

(iii) Holdco shall issue and deliver to IMLL Holdco Interests pursuant to
Section 1.01(b)(ix).

SECTION 2.03. Risk of Loss. Until the Closing, any loss of or damage to the Acquired
Assets from fire, casualty or any other occurrence shall be the sole responsibility of the
respective Seller.

SECTION 2.04. Reference Value Adjustment. (a) Within 60 days after the Closing
Date, MG shall prepare and deliver to Parent (on behalf of each Parent Asset Seller and Parent
Stock Seller) a statement (the “Closing Statement”) setting forth (A) the amount of Funds
Held on Deposit Liabilities of the Parent Asset Sellers, the UIM Asset Sellers and the Conveyed
Subsidiaries as of the Closing Time (the “Closing Funds Held on Deposit Liabilities”),
(B) the amount of cash and cash equivalents held by the Conveyed Subsidiaries as of the Closing
Time and (C) the Working Capital Amount as of the Closing Time (the “Closing Working Capital
Amount”). In no event shall any actions taken by or relating to MG, Holdco or the Businesses
following the Closing with respect to the accounting books and records of the Businesses on which
the Closing Statement is to be based (including changes in any reserve or other account) or with
respect to the operations or results of the Businesses be considered in the determination of, or
otherwise have any effect on, the Closing Funds Held on Deposit Liabilities or the Closing Working
Capital Amount.

(b) During the 30-day period following receipt by Parent of the Closing Statement, Parent
and its Representatives shall be permitted to review all books and records and other information
of MG, Holdco and their respective Representatives relating to the Closing Statement. The Closing
Statement shall become final and binding upon the parties on the 30th day following delivery
thereof, unless Parent gives written notice of its disagreement with the Closing Statement (the
“Notice of Disagreement”) to MG prior to such date which shall specify the nature of any
disagreement so asserted. Any Notice of Disagreement shall (x) specify in reasonable detail the
nature of the disagreement so asserted and (y) only include disagreements that are (1) based on
mathematical errors or (2) based on the Closing Funds Held on Deposit Liabilities, Closing Working
Capital Amount or the amount of cash and cash equivalents held by the Conveyed Subsidiaries as of
the Closing Time, in each case as set forth on the Closing Statement, not being properly
calculated consistent with this Agreement. If a Notice of Disagreement is given by Parent in a
timely manner, then the

 

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Closing Statement (as revised in accordance with this sentence) shall become final and
binding upon the parties hereto on the earlier of (A) the date the parties hereto resolve in
writing any differences they have with respect to the matters specified in the Notice of
Disagreement and (B) the date any disputed matters specified in the Notice of Disagreement are
finally resolved in writing by Ernst & Young LLP (unless the parties hereto agree in writing upon
an alternative internationally recognized independent public accounting firm, which shall not be
MG’s, Parent’s, any Seller’s or any of their respective affiliates’ independent accountants) (the
“Accounting Firm”). During the 30-day period following the delivery of a Notice of
Disagreement, the parties hereto shall seek in good faith to resolve in writing any differences
that they may have with respect to the matters specified in the Notice of Disagreement. If, at
the end of such 30-day period, the parties hereto are unable to so resolve any such differences,
the parties hereto shall submit to the Accounting Firm for resolution any and all matters that
remain in dispute and that were included in the Notice of Disagreement. The Accounting Firm,
acting as experts and not as arbitrators, shall be instructed to render its determination of all
matters submitted to it within 60 days following submission. The parties hereto agree that they
shall be bound by the determination of the Accounting Firm. Judgment may be entered upon the
determination of the Accounting Firm in any court having jurisdiction over the party against which
such determination is to be enforced. The fees and expenses of the Accounting Firm incurred
pursuant to this Section 2.04 shall be borne 50% by MG and 50% by Parent. The fees and
disbursements of the advisors of Parent incurred in connection with review of the Closing
Statement and any Notice of Disagreement shall be borne by Parent, and the fees and expenses of
MG’s advisors and any advisor to Holdco appointed by MG incurred in connection with the Closing
Statement and any Notice of Disagreement shall be borne by MG.

(c) The “Reference Value Adjustment Payment” shall be an amount equal to the Cash
Purchase Price adjusted as follows:

(i) an amount equal to 60% of the excess (if any) of (A) the Closing Funds Held on
Deposit Liabilities over (B) the amount of cash and cash equivalents shown on the Closing
Statement shall be deducted in calculating the Reference Value Adjustment Payment;

(ii) if the Closing Working Capital Amount is less than the Target Working Capital
Amount, an amount equal to 60% of the excess of the Target Working Capital Amount over the
Closing Working Capital Amount shall be deducted in calculating the Reference Value
Adjustment Payment; and

(iii) if the Closing Working Capital Amount is greater than the Target Working Capital
Amount, an amount equal to 60% of the excess of the Closing Working Capital Amount over the
Target Working Capital Amount shall be added in calculating the Reference Value Adjustment
Payment;

(iv) if the First WSOP Installment is not paid prior to the Closing, an amount equal
to the First WSOP Installment shall be deducted in calculating the Reference Value
Adjustment Payment; and

 

15

 

(v) if the Second WSOP Installment is paid prior to the Closing, an amount equal to
60% of the Second WSOP Installment shall be added in calculating the Reference Value
Adjustment Payment.

(d) If the Closing Payment is less than the Reference Value Adjustment Payment, MG shall,
and if the Closing Payment is greater than the Reference Value Adjustment Payment, Parent shall
(on behalf of the Parent Sellers), within five business days after the Closing Statement becomes
final and binding on the parties hereto, make payment to the bank account or accounts designated
in writing by the other party, of an aggregate amount in cash in U.S. dollars equal to such
difference, together with interest thereon at a rate equal to the rate of interest from time to
time announced publicly by Citibank, N.A., as its prime rate, calculated on the basis of the
actual number of days elapsed, divided by 365, from the Closing Date to the date of such payment.
The amount of any such difference shall be allocated among the Sellers in a manner to be agreed
upon by MG and Parent.

SECTION 2.05. Contingent Additional Consideration. If (and only if) the final and
binding Contingent Additional Consideration Determination Amount determined in accordance with
Annex II exceeds $167,000,000, then MG shall (subject to Section 1.05), within five business days
after the date on which such amount becomes final and binding in accordance with Annex II, cause to
be paid to Parent, on behalf of IMLL, an aggregate amount in cash in U.S. dollars equal to 60% of
the excess of (i) such Contingent Additional Consideration Determination Amount over (ii)
$167,000,000 (such amount, the “Contingent Additional Consideration”). Such payment shall
be made to the bank account designated in writing by Parent (such designation to be made within two
business days after the date on which the determination of such Contingent Additional Consideration
Determination Amount becomes final and binding in accordance with Annex II).

SECTION 2.06. Funding of Funds Held on Deposit Liabilities. (a) If the amount of
Estimated Funds Held on Deposit Liabilities exceeds the amount of cash and cash equivalents as set
forth on the Estimated Closing Statement, then, on the Closing Date, (i) MG shall contribute to
Holdco (or one or more of Holdco’s subsidiaries designated by Holdco) an amount in cash equal to
60% of the amount of such excess (such excess, the “Estimated Deposits Shortfall”), and
(ii) Parent (directly or through one or more of its subsidiaries) shall contribute to Holdco (or
one or more of Holdco’s subsidiaries designated by Holdco) an amount in cash equal to 40% of the
amount of the Estimated Deposits Shortfall.

(b) If the amount of Closing Funds Held on Deposit Liabilities exceeds the amount of cash and
cash equivalents set forth on the Closing Statement (the amount of such excess, the “Closing
Deposits Shortfall”), then, within five business days after the Closing Statement becomes final
and binding on the parties hereto, (i) if the Closing Deposits Shortfall exceeds the Estimated
Closing Deposits Shortfall, then MG shall contribute an amount in cash equal to 60%, and Parent
shall contribute an amount in cash equal to 40%, of the amount of such excess to Holdco (or one or
more of Holdco’s subsidiaries designated by Holdco) and (ii) if the Estimated Closing Deposits
Shortfall

 

16

 

exceeds the Closing Deposits Shortfall, then Holdco shall distribute an amount in cash equal
to (A) 60% of such excess to MG and (B) 40% of such excess to Parent or a subsidiary thereof.

(c) If the amount of cash and cash equivalents as set forth on the Closing Statement exceeds
the amount of Closing Funds Held on Deposit Liabilities, then, within five business days after the
Closing Statement becomes final and binding on the parties hereto, Holdco shall distribute an
amount in cash equal to (A) 60% of the Estimated Closing Deposits Shortfall (if any) to MG and (B)
40% of the Estimated Closing Deposits Shortfall (if any) to Parent or a subsidiary thereof.

ARTICLE III

Representations and Warranties of Parent and the Sellers

Parent and the Sellers hereby jointly and severally represent and warrant to Holdco that the
statements contained in this Article III are true and correct, except as set forth in the
disclosure letter delivered by Parent and the Sellers to Holdco on or prior to the date of the
execution and delivery by Parent and the Sellers of this Agreement (the “Seller Disclosure
Letter”), it being acknowledged and agreed that (a) the Seller Disclosure Letter shall be
arranged in numbered and lettered sections corresponding to the numbered and lettered sections
contained in this Article III, (b) the disclosure in any section shall be deemed to qualify other
sections in this Article III to the extent (and only to the extent) that it is readily apparent
from the face of such disclosure that such disclosure also qualifies or applies to such other
sections (notwithstanding the omission of a reference or cross reference thereto) and (c) the mere
inclusion of an item in such Seller Disclosure Letter as an exception to a representation or
warranty shall not be deemed to constitute an admission, or otherwise imply, that such item
represents a material exception or material fact, event or circumstance or that such item has had
or would reasonably be expected to have a Seller Material Adverse Effect.

SECTION 3.01. Organization, Standing and Power; Corporate Records. (a)  Each of
Parent and each of the Sellers and each of the Conveyed Subsidiaries is duly organized or
incorporated, validly existing and in good standing under the laws of the jurisdiction of its
organization or incorporation (except, in the case of good standing, for entities organized or
incorporated under the laws of any jurisdiction that does not recognize such concept) and has full
corporate power and authority and possesses all Permits necessary to enable it to own, lease or
otherwise hold its properties and assets and to conduct the Businesses as currently conducted,
other than such Permits the lack of which, individually or in the aggregate, has not had and would
not reasonably be expected to have a Seller Material Adverse Effect. Each of the Sellers and
Conveyed Subsidiaries is duly qualified to do business as a foreign corporation in each
jurisdiction where (x) the character of the assets held by it or the nature of the Businesses make
such qualification necessary for it to conduct the Businesses as currently conducted or (y) the
failure to so qualify, individually or in the aggregate, has had or would reasonably be expected to
have a Seller Material Adverse Effect. Parent and the Sellers have made

 

17

 

available to Holdco true and complete copies of the certificate of incorporation and by-laws
(or equivalent documents and instruments) of each of the Sellers and Conveyed Subsidiaries, in each
case as amended through the date of this Agreement. The organizational documents of Parent most
recently filed and publicly available with the SEC prior to the date of this Agreement have not
been amended as of the date of this Agreement.

(b) CESL is an indirect, wholly owned subsidiary of Parent. Section 3.01(b) of the Seller
Disclosure Letter lists each subsidiary of CESL. All the outstanding shares of capital stock of
and other equity or voting interests in each such subsidiary are owned beneficially and of record
by CESL, by another wholly owned subsidiary of CESL or by CESL and another wholly owned subsidiary
of CESL, free and clear of all Liens, and are duly authorized, validly issued, fully paid and
nonassessable. Except for the capital stock of or other equity or voting interests in its
subsidiaries set forth in Section 3.01(b) of the Seller Disclosure Letter, CESL does not own,
directly or indirectly, any capital stock of or other equity or voting interests in any
corporation, partnership, joint venture, association or other entity.

(c) UIM is an indirect, wholly owned subsidiary of Brylane Finance Limited, a company
incorporated under the laws of the British Virgin Islands (“Brylane Finance Limited”). All
the issued shares in the share capital and other equity or voting interests in Brylane Finance
Limited are owned beneficially and legally by the persons set forth on Section 3.01(c)(i) of the
Seller Disclosure Letter. Section 3.01(c)(i) of the Seller Disclosure Letter sets forth with
respect to each holder of issued shares in Brylane Finance Limited the number of shares in the
share capital of Brylane Finance Limited held by such holder. Section 3.01(c)(ii) of the Seller
Disclosure Letter lists each subsidiary of UIM. All the outstanding shares of capital stock of and
other equity or voting interests in each such subsidiary are owned by UIM, by another wholly owned
subsidiary of UIM or by UIM and another wholly owned subsidiary of UIM, free and clear of all
Liens, and are duly authorized, validly issued, fully paid and nonassessable. Except for the
capital stock of or other equity or voting interests in its subsidiaries set forth in
Section 3.01(c)(ii) of the Seller Disclosure Letter, UIM does not own, directly or indirectly, any
capital stock of or other equity or voting interests in any corporation, partnership, joint
venture, association or other entity.

(d) Section 3.01(d) of the Seller Disclosure Letter sets forth the authorized capital stock
or share capital of and other equity or voting interests in each of the Conveyed Subsidiaries, the
number of outstanding or issued shares of each class of capital stock of and other equity or voting
interests in each such Conveyed Subsidiary, all of which are duly authorized, validly issued, fully
paid and (to the extent such concept applies in such Conveyed Subsidiary’s jurisdiction of
incorporation or organization) nonassessable, and the record, legal and beneficial owners thereof.
There are no outstanding warrants, options, agreements, subscriptions, convertible or exchangeable
securities or other commitments pursuant to which any of the Conveyed Subsidiaries is or may become
obligated to issue, sell, purchase, return or redeem any shares of capital stock or other
securities of the Conveyed Subsidiaries, and no equity securities of any of the Conveyed
Subsidiaries are reserved for issuance for any purpose. Each of the Parent

 

18

 

Stock Sellers and UIM owns of record and beneficially all Shares as indicated in
Section 3.01(d) of the Seller Disclosure Letter, free and clear of all Liens, and the Shares
constitute all the issued and outstanding capital stock or share capital of and other equity and
voting interests in the Conveyed Subsidiaries.

(e) Each of the Conveyed Subsidiaries has maintained all corporate books and records required
to be maintained by Applicable Law and has complied, in all material respects, with the provisions
of such laws.

SECTION 3.02. Authority; Execution and Delivery; Enforceability. Each of the Parent
and each of the Sellers has full power and authority to execute this Agreement, the Shareholder
Agreement and the Ancillary Agreements to which it is, or is specified to be, a party and to
consummate the Acquisition and the other transactions contemplated hereby and thereby. The
execution and delivery by each of Parent and each of the Sellers of this Agreement, the Shareholder
Agreement and the Ancillary Agreements to which it is, or is specified to be, a party and the
consummation by each of Parent and each of the Sellers of the Acquisition and the other
transactions contemplated hereby and thereby have been duly authorized by all necessary corporate
action on the part of Parent and each of the Sellers, and no other corporate proceedings on the
part of Parent or any of the Sellers are necessary to authorize this Agreement, the Shareholder
Agreement and the Ancillary Agreements or the consummation of the Acquisition and the other
transactions contemplated hereby or thereby. Each of Parent and each of the Sellers has duly
executed and delivered this Agreement and, prior to the Closing, will have duly executed and
delivered the Shareholder Agreement and each Ancillary Agreement to which it is, or is specified to
be, a party, and, assuming the due execution and delivery of this Agreement, the Shareholder
Agreement and each Ancillary Agreement by the other parties hereto and thereto, this Agreement
constitutes, and each of the Shareholder Agreement and each Ancillary Agreement to which it is, or
is specified to be, a party will after the Closing constitute, its legal, valid and binding
obligation, enforceable against it in accordance with its terms, subject to bankruptcy, insolvency
or similar laws relating to creditors’ rights generally and to general principles of equity.

SECTION 3.03. No Conflicts; Consents. The execution and delivery by Parent and each
of the Sellers of this Agreement, the Shareholder Agreement and each Ancillary Agreement to which
it is, or is specified to be, a party, the consummation by Parent and each of the Sellers of the
Acquisition and the other transactions contemplated hereby and thereby and compliance by Parent and
each of the Sellers with the terms hereof and thereof do not and will not conflict with, or result
in any violation of or default (with or without notice or lapse of time, or both) under, or give
rise to a right of termination, cancelation or acceleration of any obligation or to loss of a
benefit under, or to increased, additional, accelerated or guaranteed rights or entitlements of any
person under, or result in the creation of any Lien upon any of the properties or assets of Parent
or any Seller or Conveyed Subsidiary under, any provision of (i) the certificate of incorporation
or by-laws (or equivalent documents and instruments) of Parent or any Seller or Conveyed
Subsidiary, (ii) any Contract to which any Seller or Conveyed Subsidiary is a party or to which the
Business, any Seller or Conveyed Subsidiary or any

 

19

 

of its properties or assets is subject or (iii) any judgment, order, writ, injunction, legally
binding agreement with a Governmental Entity, stipulation or decree (“Judgment”) or any
statute, law (including common law), ordinance, rule or regulation (“Applicable Law”)
applicable to Parent, any Seller or Conveyed Subsidiary or any of their respective properties or
assets, other than, in the case of clauses (ii) and (iii) above, any such items that, individually
or in the aggregate, have not had a Seller Material Adverse Effect that has not been cured and
would not reasonably be expected to have a Seller Material Adverse Effect. No material consent or
Permit (“Consent”) of, or registration, declaration or filing with, any Federal, state or
local government or any court of competent jurisdiction, administrative agency or commission or
other governmental authority or instrumentality, in each case whether domestic or foreign (each, a
“Governmental Entity”), is required to be obtained or made by or with respect to Parent or
any Seller or Conveyed Subsidiary in connection with the execution and delivery of this Agreement,
the Shareholder Agreement or any Ancillary Agreement, the consummation of the Acquisition or the
other transactions contemplated hereby and thereby or compliance with the terms hereof and thereof.

SECTION 3.04. Financial Statements; Undisclosed Liabilities; Internal Controls;
Indebtedness. (a)  Section 3.04(a) of the Seller Disclosure Letter sets forth (i) the
unaudited balance sheet of the Businesses as of December 31, 2007 and December 31, 2008, and the
unaudited consolidated statements of profit and loss of the Businesses for the fiscal years ended
on December 31, 2007 and December 31, 2008 (the balance sheets and statements referred to in this
clause (i), collectively, the “Full Year Financials”) and (ii) the unaudited consolidated
balance sheet of the Businesses as of June 30, 2009 (the “Balance Sheet”) and the unaudited
statement of profit and loss for the six-month period ended on such date (the balance sheets and
statements referred to in this clause (ii), collectively, the “Interim Financials” and,
together with the Full Year Financials, the “Financial Statements”). The Financial
Statements (A) were derived from and are in accordance with the books and records of Parent,
(B) have been prepared in accordance with GAAP, consistently applied throughout the periods covered
thereby, (C) are consistent with the segment reporting for the Gaming Software and Services segment
(1) in the case of the Full Year Financials, in Parent’s audited consolidated financial statements
as of the dates and for the periods presented in the Full Year Financials, and (2) in the case of
the Interim Financials, in Parent’s unaudited consolidated financial statements as of the dates and
for the periods presented in the Interim Financials, and (D) fairly present, in all material
respects, the financial condition and results of operations of the Businesses as of the respective
dates thereof and for the respective periods indicated.

(b) The Businesses do not have any liabilities or obligations of any nature (whether accrued,
absolute, contingent, unasserted or otherwise) that are material, individually or in the aggregate,
except (i) as expressly set forth in the Balance Sheet and (ii) liabilities incurred in the
ordinary course of the Businesses consistent with past practice and, in the case of such
liabilities incurred since the date of the Balance Sheet and prior to the date of this Agreement,
that would not constitute a breach of Section 5.01(a)(iv) if they had been incurred after the date
of this Agreement without MG’s consent.

 

20

 

(c) The system of internal controls over financial reporting of the Businesses is sufficient
to provide reasonable assurance (i) that transactions are recorded as necessary to permit
preparation of financial statements in accordance with GAAP, (ii) that transactions are executed
only in accordance with the authorization of management and (iii) regarding prevention or timely
detection of the unauthorized acquisition, use or disposition of the assets of the Businesses.

(d) As of the date of this Agreement, none of the Sellers and none of the Conveyed
Subsidiaries has any Indebtedness, other than (i) Intercompany Indebtedness and (ii) Indebtedness
owed to Parent or any of Parent’s subsidiaries.

(e) None of the Sellers and none of the Conveyed Subsidiaries or any of their respective
directors or officers has received notice of any complaint, allegation or claim, whether written
or oral, regarding the accounting or auditing practices, procedures, methodologies or methods of
such Seller or Conveyed Subsidiary, which if true would have a material impact on the Financial
Statements. The Businesses have a policy of not paying checks that remain uncashed for a year
after the date of issue.

(f) Each of the Sellers and the Conveyed Subsidiaries has maintained, in all material
respects, all accounting books and records required to be maintained by Applicable Law pursuant to
the provisions of these laws and in accordance with good and customary business practice.

SECTION 3.05. Title to Assets. Each Parent Asset Seller and UIM Asset Seller has,
and will have, immediately prior to the consummation of the transactions to which it is
contemplated by Article I to be a party, good and valid title to all the Acquired Assets owned by
it, and each Conveyed Subsidiary has good and valid title to all of its assets, in each case free
and clear of all mortgages, liens, security interests, charges, easements, leases, subleases,
covenants, rights of way, options, claims, restrictions or encumbrances of any kind (collectively,
“Liens”), except (a) the Liens set forth on Section 3.05(a) of the Seller Disclosure
Letter, (b) liens for Taxes and other governmental charges not yet due and payable and
(c) mechanics’, carriers’, workmen’s, repairmen’s, warehousemen’s or other like Liens arising or
incurred in the ordinary course of business that, in the case of clause (c), assuming that Holdco
and its subsidiaries pay all Assumed Liabilities when due, (i) individually or in the aggregate, do
not materially impair, and could not reasonably be expected to materially impair, the continued use
and operation of the assets to which they relate in the operation or conduct of the Businesses and
(ii) do not constitute an imperfection of title or otherwise compromise any Seller’s good and valid
title to the applicable Acquired Asset or any Conveyed Subsidiary’s good and valid title to the
applicable asset, as the case may be (the Liens described in these clauses (a), (b) and (c),
“Permitted Liens”). For the avoidance of doubt, the term “Liens” shall be deemed not to
include licenses of Intellectual Property.

SECTION 3.06. Real Property. Neither Parent nor any Seller or Conveyed Subsidiary or
any other subsidiary of Parent holds any fee or other ownership interest in any real property that
is used or intended to be used in the operation or conduct

 

21

 

of the Businesses. Section 3.06 of the Seller Disclosure Letter sets forth a true and
complete list, as of the date of this Agreement, of all real property in which Parent or any Seller
or Conveyed Subsidiary or other subsidiary of Parent holds any leasehold interest and that is used
or intended to be used in the operation or conduct of the Business (each such property, a
“Business Property”), which list also sets forth the date of the lease, sublease, license
or other occupancy agreement constituting each such leasehold interest and the date of any
amendments and supplements thereto (collectively, a “Real Property Lease”), as well as the
names of the parties thereto. Parent and the Sellers have made available to Holdco true and
complete copies of each Real Property Lease. Each Real Property Lease is in full force and effect
and none of Parent, any Seller or Conveyed Subsidiary or, to the knowledge of Parent or UIM, any of
the other parties to such Real Property Lease has received or given any notice of material default
thereunder which was not cured within the applicable grace period, no event has occurred which,
with the giving of notice or the passage of time, or both, would constitute a material default by
Parent, any Seller or Conveyed Subsidiary or any of their affiliates under any Real Property Lease
and, to the knowledge of Parent or UIM, no event has occurred which, with the giving of notice or
the passage of time, or both, would constitute a material default by any person (other than Parent,
any Seller or Conveyed Subsidiary or any of their affiliates) under any Real Property Lease. There
are no pending or, to the knowledge of Parent or UIM, threatened Proceedings that could have the
effect of materially impairing or restricting any Seller’s or Conveyed Subsidiary’s access to any
Business Property or the use thereof in the conduct of the Businesses.

SECTION 3.07. Intellectual Property. (a)  Section 3.07(a) of the Seller Disclosure
Letter sets forth a true and complete list, as of the date of this Agreement, of all Business
Intellectual Property owned in whole or in part by Parent, any Seller or Conveyed Subsidiary
consisting of domestic and foreign (i) issued patents and patent applications; (ii) registrations
and applications for trademarks, service marks, logos, trade names, and trade dress; (iii) domain
names; and (iv) registrations and applications for copyrights (“Registered IP”). Such list
clearly indicates (A) the jurisdiction in which such item of Registered IP has been registered or
filed; (B) the applicable registration or serial number; (C) title; (D) status; and (E) any other
person that has an ownership interest in such item of Registered IP and the nature of such
ownership interest.

(b) Section 3.07(b) of the Seller Disclosure Letter sets forth a true and complete list of
all material Intellectual Property owned by or licensed to Parent or UIM or any of their respective
affiliates and necessary to the operation or conduct of the Businesses as presently conducted by
the Sellers and the Conveyed Subsidiaries and as currently proposed to be conducted that is also
used in connection with any other business of Parent or UIM.

(c) To the knowledge of Parent or UIM, all granted Registered IP set forth in Section 3.07(a)
of the Seller Disclosure Letter is valid and enforceable.

(d) All Registered IP set forth in Section 3.07(a) of the Seller Disclosure Letter has been
duly filed with the appropriate Governmental Entity in each jurisdiction indicated for such
Intellectual Property in Section 3.07(a) of the Seller Disclosure Letter,

 

22

 

all necessary affidavits of continuing use have been filed, and all necessary maintenance fees
have been paid to continue all such rights in effect.

(e) The Business Intellectual Property constitutes all Intellectual Property necessary to the
operation or conduct of the Businesses as presently conducted by the Sellers and the Conveyed
Subsidiaries and as currently proposed to be conducted, and the Sellers and the Conveyed
Subsidiaries own, or are licensed or otherwise have the right to use (free and clear of any Liens),
all Business Intellectual Property; provided that the foregoing is not a representation or
warranty with respect to non-infringement or other violation of Intellectual Property (which is the
subject of Section 3.07(f) below).

(f) To the knowledge of Parent or UIM, the conduct of the Businesses as of the date hereof
has not infringed or violated, and the conduct of the Businesses as currently conducted is not
infringing or violating, in any material respect the rights of any person with regard to any third
party Intellectual Property. Except as set forth in the Seller Disclosure Letter, there is no and
in the past three years there has been no Proceeding pending or threatened with respect to, and
neither Parent nor any Seller or Conveyed Subsidiary has been notified in writing of any
(i) alleged infringement or other violation by any Seller or Conveyed Subsidiary of the rights of
any person with regard to any Intellectual Property, or (ii) challenge to the validity,
enforceability, ownership, authorship, inventorship or use of any portion of any Seller’s or
Conveyed Subsidiary’s Registered IP.

(g) To the knowledge of Parent or UIM, no person is infringing on or otherwise violating any
right of any Seller or Conveyed Subsidiary in any material respect with respect to any Intellectual
Property owned or licensed by such Seller or Conveyed Subsidiary.

(h) To the knowledge of Parent or UIM, with respect to the Registered IP, (i) each patent and
patent application constituting Registered IP properly identifies each and every inventor of the
claims thereof as determined in accordance with the laws of the jurisdiction in which such patent
is issued or such patent application is pending; (ii) each such inventor and each current or former
director, officer, employee, contractor or consultant of Parent or any Seller or Conveyed
Subsidiary has assigned or otherwise transferred to each Seller or Conveyed Subsidiary all
ownership and other rights of any nature whatsoever of such person in any Registered IP; and (iii)
no such person has a valid claim against such Seller or Conveyed Subsidiary in connection with the
involvement of such person in the conception and development of any Registered IP, and no such
claim has been asserted or threatened.

(i) Parent, each Seller and Conveyed Subsidiary and each of their respective affiliates have
used reasonable efforts and taken commercially reasonable steps to maintain in confidence all trade
secrets relating to the Businesses, including requiring all employees of the Businesses to execute
confidentiality agreements with respect to trade secrets developed for or obtained from the
Businesses; and entering into licenses and Contracts that generally require licensees, contractors
and other third persons with access to such trade secrets to keep such trade secrets confidential.

 

23

 

(j) To the knowledge of Parent or UIM, each current licensor, supplier, manufacturer,
contract research organization or other contractor for any of the Sellers and Conveyed Subsidiaries
(each, a “Seller Supplier”), owns or has a valid license to all Intellectual Property that
is licensed to such Sellers and Conveyed Subsidiaries by such Seller Supplier or that is necessary
for the manufacture and sale of products for, or the provision of services to, such Sellers and
Conveyed Subsidiaries by such Seller Supplier (collectively, the “Supplier Rights”), and
has the legal power to license such Supplier Rights, and to manufacture and sell such products for
or provide such services to, such Sellers and Conveyed Subsidiaries.

(k) The information technology of the Businesses is sufficient and adequate for the conduct
of the Business as currently conducted. Within at least 18 months prior to the date hereof, no
Seller or Conveyed Subsidiary has experienced any disruption in or to its business operations,
other than minor short-term outages, as a result of (i) any security breach in relation to any
information technology or (ii) any failure (whether arising from any bug, virus, defect or
otherwise), lack of capacity or other sub-standard performance of the information technology of the
Businesses.

(l) To the extent Third Party Software is incorporated into the Software of the Sellers or
Conveyed Subsidiaries and distributed to or accessed by customers of the Businesses, (i) such Third
Party Software (other than generally available Software for which no royalties or fees are required
to be paid) has been identified in Section 3.07(l)(i) of the Seller Disclosure Letter, (ii) all
necessary licenses have been obtained with respect thereto, (iii) no royalties or payments are due
with respect thereto (or such royalties and payments are identified in Section 3.07(l)(iii) of the
Seller Disclosure Letter), and (iv) there are no obligations to provide access to any third party
provider of such Third Party Software to, or permit any third party provider of such Third Party
Software to copy, modify or distribute, any Intellectual Property owned or distributed by the
Sellers and Conveyed Subsidiaries (other than such Third Party Software).

(m) None of the proprietary source code or other material trade secrets of the Sellers or
Conveyed Subsidiaries has been published or disclosed by Parent, any Seller or any Conveyed
Subsidiary, except pursuant to a non-disclosure agreement or other obligation of confidentiality
prior to the date of this Agreement, or, to the knowledge of Parent or UIM, by any other person to
any person except pursuant to a Contract requiring such other person to keep such trade secrets
confidential or other obligation of confidentiality.

(n) Except for source code provided to third party developers to make modifications or
Derivative Works for the conduct or operation of the Businesses, no IP License has been granted by
any Seller or any Conveyed Subsidiary to a third party to distribute the source code for, or to use
any source code to create Derivative Works of, any product currently marketed by, commercially
available from or under development by the Sellers or Conveyed Subsidiaries for which any of the
Sellers or Conveyed Subsidiaries possesses the source code. All Software developed for the
Businesses by third party developers hired by Parent, any Seller or any Conveyed Subsidiary is
owned

 

24

 

exclusively by Parent, the Sellers and the Conveyed Subsidiaries and is not subject to any
license granted by such third party developer to any other party.

(o) To the knowledge of Parent or UIM, Section 3.07(o) of the Seller Disclosure Letter
identifies any and all open source, public source or freeware Software or any modification or
derivative thereof, including any version of any Software licensed pursuant to any general public
license or limited general public license, that is used in, incorporated into, integrated or
bundled with any material Business Intellectual Property, or product or service of the Sellers and
Conveyed Subsidiaries, in each case in a manner whereby such use, incorporation, integration or
bundling would require the licensing or disclosure to third parties of any source code owned by any
Seller or Conveyed Subsidiary.

(p) Parent, the Sellers and the Conveyed Subsidiaries have taken commercially reasonable
steps to protect their Intellectual Property and rights thereunder.

SECTION 3.08. Contracts. (a)  Section 3.08(a) of the Seller Disclosure Letter sets
forth a true and complete list, as of the date of this Agreement, of each Contract to or by which
any Seller or Conveyed Subsidiary is a party or bound, or to which any of the Business, the
Acquired Assets or the assets of any Conveyed Subsidiary are subject, that is or includes (each, a
“Material Contract”):

(i) (A) an employment agreement or employment contract or (B) any Contract relating to
any Seller Benefit Plan;

(ii) a collective bargaining agreement or other Contract with any labor organization,
union or association;

(iii) a covenant binding on the Businesses, any Seller or any Conveyed Subsidiary not
to compete or not to engage in any activity or business, or pursuant to which any benefit
is required to be given or lost as a result of so competing or engaging;

(iv) a Contract with (A) any shareholder or affiliate of such shareholder or of any
Seller or Conveyed Subsidiary or (B) any officer, director or employee of any Seller or
Conveyed Subsidiary or any of its affiliates (other than employment agreements covered by
clause (i) above);

(v) a lease, sublease or similar Contract (including any sale-leaseback arrangement)
with any person under which any Seller or Conveyed Subsidiary is a lessor or sublessor of,
or makes available for use to any person, (A) any Business Property or (B) any portion of
any premises otherwise occupied by such Seller or Conveyed Subsidiary;

(vi) a lease, sublease or similar Contract (including any sale-leaseback arrangement)
for personal property with any person under which (A) any Seller or Conveyed Subsidiary is
lessee of, or holds or uses, any machinery, equipment, vehicle or other tangible personal
property owned by any person that is material

 

25

 

to the conduct of the Businesses or (B) any Seller or Conveyed Subsidiary is a lessor
or sublessor of, or makes available for use by any person, any tangible personal property
owned or leased by such Seller or Conveyed Subsidiary that is material to the conduct of
the Businesses;

(vii) a Contract under which any Seller or Conveyed Subsidiary has, directly or
indirectly, made any advance, loan, extension of credit or capital contribution to, or
other investment in, any person (other than (A) investments by such Seller or Conveyed
Subsidiary in its subsidiaries, (B) advances, loans or extensions of credit to any Conveyed
Subsidiary or (C) extensions of trade credit in the ordinary course of the Business);

(viii) a Contract under which any Seller or any of the Conveyed Subsidiaries has
incurred any Indebtedness having an aggregate principal amount in excess of $100,000 (other
than Intercompany Indebtedness and Indebtedness owed to Parent or any of Parent’s
subsidiaries);

(ix) a Contract (including consulting and services agreements) which provides for
“exclusivity” or any similar requirement in favor of any person other than a Seller or
Conveyed Subsidiary or that requires or obligates any Seller or Conveyed Subsidiary to
purchase specified minimum amounts of any product;

(x) a Contract (including a purchase order) (A) involving future payment of more than
$300,000 per annum or more than $750,000 in the aggregate by or to any Seller or Conveyed
Subsidiary (unless terminable without payment or penalty upon no more than 60 days’ notice)
or (B) providing for future performance by the Businesses or any Seller or Conveyed
Subsidiary in consideration of amounts previously paid to the Businesses or such Seller,
and which has resulted in deferred revenue under GAAP of more than $100,000;

(xi) a Contract for the sale of any Acquired Asset or asset of any Conveyed Subsidiary
in excess of $100,000 or the grant of any preferential rights to purchase any Acquired
Asset or asset of any Conveyed Subsidiary in excess of $100,000 or requiring the consent of
any party to the transfer thereof;

(xii) a Contract with any Governmental Entity;

(xiii) a currency exchange, interest rate exchange, commodity exchange or similar
Contract;

(xiv) a Contract relating to any completed, pending or proposed (A) joint venture,
partnership or similar arrangement, (B) acquisition or divestiture of any person, business
or division or (C) merger or reorganization;

(xv) [intentionally omitted]

(xvi) a Contract granting the other party to such Contract or a third party “most
favored nation” or similar status;

 

26

 

(xvii) a Contract that prohibits the hiring or solicitation for employment of
employees of another person;

(xviii) a Contract entered into in connection with the settlement or other resolution
of any Proceeding pursuant to which any Seller or Conveyed Subsidiary has any ongoing
performance obligations;

(xix) a material Contract, option, right or interest of any kind relating to
Intellectual Property granted (i) to a Seller or Conveyed Subsidiary (other than Software
licenses for generally available Software, and except pursuant to employee proprietary
inventions agreements (or similar employee agreements) entered into by a Seller or Conveyed
Subsidiary in the ordinary course of business), or (ii) by a Seller or Conveyed Subsidiary
to any other person (including any obligations of such other person to make any fixed or
contingent payments, including royalty payments)(each Contract referred to in clause (i) or
(ii), an “IP License”); provided that, for purposes of Section 3.08(b),
Material Contracts shall be deemed to include all IP Licenses without giving effect to the
foregoing materiality qualifier; or

(xx) a Contract other than as set forth above to which any Seller or Conveyed
Subsidiary is a party or by which it or any of its assets or businesses is bound or subject
that is material to the Businesses, taken as a whole.

(b) All Material Contracts are valid, binding obligations of the applicable Seller or
Conveyed Subsidiary and in full force and effect and are enforceable by the Sellers and Conveyed
Subsidiaries that are parties thereto in accordance with their terms, subject to bankruptcy,
insolvency or similar laws relating to creditors’ rights generally and to general principles of
equity. The Sellers and Conveyed Subsidiaries have performed all material obligations required to
be performed by them to date under the Material Contracts, and no Seller or Conveyed Subsidiary is
(with or without the lapse of time or the giving of notice, or both) in breach or default in any
material respect thereunder and, to the knowledge of Parent or UIM, no other party to any Material
Contract is (with or without the lapse of time or the giving of notice, or both) in breach or
default in any material respect thereunder. As of the date of this Agreement, neither Parent nor
any Seller or Conveyed Subsidiary has received any notice of the intention of any party to
terminate any Material Contract. Complete and correct copies of all Contracts listed in or
referred to in the Seller Disclosure Letter, together with all modifications and amendments
thereto, have been made available to Holdco.

(c) All obligations for payment of monies by each Seller and Conveyed Subsidiary in
connection with an IP License have been satisfied in a timely manner.

(d) The Sellers and Conveyed Subsidiaries are in material compliance with all Contracts
pursuant to which any source code of the Sellers and Conveyed Subsidiaries has been placed into
escrow, to the knowledge of Parent or UIM, none of the Sellers or Conveyed Subsidiaries are in
material breach or default under any such

 

27

 

Contract and no source code has been released from escrow pursuant to any such Contract.

(e) Except for source code provided to third party developers to make modifications or
Derivative Works for the conduct or operation of the Businesses, Section 3.08(e) of the Seller
Disclosure Letter sets forth a true and complete list of all Contracts pursuant to which the
Sellers or any of the Conveyed Subsidiaries has agreed or is required to provide any third party
with access to material source code, to provide for material source code to be put in escrow or to
grant a contingent license to material source code (each such Contract, a “Source Code
Contract”).

SECTION 3.09. Personal Property. Each item of tangible Personal Property is in good
working order (ordinary wear and tear excepted), is free from any defect and has been maintained in
accordance with the past practice of the Businesses and generally accepted industry practice except
in each case as, individually or in the aggregate, has not had and would not reasonably be expected
to have a Seller Material Adverse Effect.

SECTION 3.10. Receivables. All the Receivables (a) represent actual obligations
incurred by the applicable account debtors and (b) have arisen from bona fide transactions in the
ordinary course of the Businesses. Since the date of the Balance Sheet, there have not been any
write-offs as uncollectible of any receivables, except for write-offs in the ordinary course of the
Businesses and consistent with past practice.

SECTION 3.11. Permits. Section 3.11 of the Seller Disclosure Letter sets forth a
true and complete list, as of the date of this Agreement, of all certificates, registrations,
franchises, licenses, permits, authorizations, client provider authorizations, key person licenses,
variances, exemptions, orders and approvals (“Permits”) issued or granted to each Seller
and Conveyed Subsidiary by Governmental Entities and all pending applications of each Seller and
Conveyed Subsidiary to any Governmental Entity for any of the foregoing that are used, held for use
or intended to be used in the operation or conduct of the Businesses. Such Permits are sufficient
for the operation and conduct of the Businesses as currently conducted by Sellers and Conveyed
Subsidiaries. All such Permits are validly held by the applicable Seller or Conveyed Subsidiary,
and the applicable Seller or Conveyed Subsidiary has complied in all material respects with all
terms and conditions thereof. The applicable Seller or Conveyed Subsidiary is the sole and
exclusive owner of all such Permits. During the past three years, neither Parent nor any Seller or
Conveyed Subsidiary has received notice of any Proceedings relating to the revocation or
modification of any such Permits that are material to the Businesses. No Proceeding is pending or,
to the knowledge of Parent or UIM, threatened which challenges the validity of any such Permit.

SECTION 3.12. Insurance. Section 3.12 of the Seller Disclosure Letter sets forth a
true and complete list of all policies of fire, liability, product liability, workers’
compensation, health and other forms of insurance in effect as of the date of this Agreement with
respect to the properties, assets, operations and businesses of the Sellers and Conveyed
Subsidiaries, true and complete copies of which have been made available

 

28

 

to Holdco. All such policies are valid, outstanding and enforceable policies and provide
insurance coverage for the properties, assets, operations and businesses of each Seller and each of
its subsidiaries of the kinds, in the amounts and against the risks required to comply with
Applicable Law. No notice of cancellation or termination has been received by Parent, any Conveyed
Subsidiary or any Seller with respect to any such policy.

SECTION 3.13. Sufficiency of Acquired Assets. The assets of the Conveyed
Subsidiaries and the Acquired Assets (together with the Excluded Assets specified in
Section 1.02(b)(i)), comprise all the material assets used or held for use by Parent and the
Sellers in connection with the Businesses. The assets of the Conveyed Subsidiaries and the
Acquired Assets are sufficient for the operation and conduct of the Businesses by Holdco and its
subsidiaries immediately following the Closing in substantially the same manner as currently
conducted. The Acquired Assets associated with, used or held for use in the portion of the
Businesses conducted in Canada by GIS (i) are owned by GIS, (ii) constitute all or substantially
all of the assets of GIS associated with, used or held for use in the portion of the Businesses
carried on in Canada and (iii) are all of the assets which are required to continue to carry on
such portion of the Businesses substantially as it has been conducted immediately prior to the
Closing.

SECTION 3.14. Taxes. (a) All material Tax Returns relating to the Acquired Assets,
the Businesses or the Conveyed Subsidiaries required to be filed on or before the Closing Date have
been filed and each such Tax Return is true, correct and complete in all material respects, (b) all
material Taxes owed and required to have been paid prior to the Closing Date by the Conveyed
Subsidiaries and due and required to have been paid prior to the Closing Date with respect to the
Acquired Assets and the Businesses (in each case, whether or not reflected on any Tax Return) have
been paid in full or will be paid within the required time periods, other than those (i) currently
payable without penalty or interest or (ii) being contested in good faith by appropriate
proceedings, (c) there are no material Liens for Taxes with respect to the Acquired Assets, the
assets of the Conveyed Subsidiaries or the Businesses, except for Liens for Taxes not yet due and
payable or being contested in good faith through appropriate proceedings, (d) no extension or
waiver of the statute of limitations has been granted for any Tax Return with respect to any Taxes
relating to the Acquired Assets, the assets of the Conveyed Subsidiaries or the Businesses, which
statute (after giving effect to such extension or waiver) has not yet expired, (e) none of the
Conveyed Subsidiaries or any Asset Seller (to the extent related to the Acquired Assets or the
Businesses) is subject to any current audit, action, suit or proceedings with respect to any Taxes,
(f) there are no Tax allocation, Tax indemnification or Tax sharing agreements to which any
Conveyed Subsidiary is a party that will continue to be in effect for any period following the
Closing Date, (g) GIS is registered for purposes of the Part IX of the Excise Tax Act (Canada)
(“GST Legislation”), (h) GIS is registered for purposes of An Act Respecting the Sales Tax
(Quebec) (“QST Legislation”), (i) the Shares do not constitute “taxable Canadian property”
within the meaning of the subsection 248(1) of the ITA or “taxable Quebec property” within the
meaning of section 1094 of the Taxation Act (Quebec) (“QTA”), (j) none of the Conveyed
Subsidiaries is carrying on a business or has a permanent establishment in any country or
jurisdiction where they have not filed Tax Returns in accordance with Applicable Law, (k) each of
GIS, UIM Canco 1, UIM Canco

 

29

 

2 and UIM Canco 3 will not be at the Closing a non-resident of Canada for purposes of the ITA
and (l) prior to the consummation of the transaction set forth in Section 1.01(b)(iii), Everest
Gaming Malta will be a non-resident of Canada and will not be registered for purposes of the GST
Legislation and the QST Legislation.

SECTION 3.15. Proceedings. There is no material Proceeding pending or, to the
knowledge of Parent or UIM, threatened by or against or affecting any Seller or Conveyed Subsidiary
or the Businesses, nor is there any material Judgment outstanding against, or, to the knowledge of
Parent or UIM, any material investigation by any Governmental Entity involving, any Seller or
Conveyed Subsidiary or the Businesses. There is not any material Proceeding or claim by any Seller
or Conveyed Subsidiary pending, or which any Seller or Conveyed Subsidiary intends to initiate,
against any other person arising out of the operation or conduct of the Businesses.

SECTION 3.16. Benefit Plans. (a) Section 3.16(a)(1) of the Seller Disclosure
Letter sets forth a true and complete list of each material Seller Benefit Plan. Section
3.16(a)(2) of the Seller Disclosure Letter sets forth a true and complete list of each Seller
Benefit Plan that is or will, as of the Closing Date, be an Assumed Benefit Plan. Parent and the
Sellers have made available to Holdco (i) a current, complete and accurate copy (or, with respect
to any oral material Seller Benefit Plan, a written description) of each material Seller Benefit
Plan document and any amendments thereto and (ii) with respect to each Assumed Benefit Plan, copies
of, to the extent applicable, (A) the most recent summary plan description (or similar document and
summary of material modifications), (B) the trust agreement, any insurance contracts or other
funding arrangements with respect to such plan, (C) the most recent annual report on Form 5500
(including any applicable schedules and attachments thereto) or any similar reports filed by
Parent, the Sellers, any Conveyed Subsidiary or any Seller Benefit Plan with the IRS or any
Governmental Entity in any non-U.S. jurisdiction having authority over the Assumed Benefit Plan (if
any such report was required by Applicable Law), (D) the most recently received determination or
opinion letter from the IRS, or similar approval under applicable non-U.S. Law and (E) the most
recently prepared actuarial valuation report and audited financial statements in connection with
each Assumed Benefit Plan for which an actuarial valuation report is, or audited financial
statements are, required to be prepared under Applicable Law.

(b) All employer and employee contributions to each Assumed Benefit Plan have been timely
made or, if applicable, accrued in accordance with GAAP (or if GAAP is not applicable, the
generally accepted accounting principles applicable to such Assumed Benefit Plan). Each Assumed
Benefit Plan has been administered in accordance with its terms and in material compliance with the
applicable provisions of ERISA, the Code, all other Applicable Laws and the terms of all applicable
collective bargaining agreements. There are no termination proceedings or other claims (except
routine claims for benefits payable) or proceedings pending or, to the knowledge of Parent or any
Seller, threatened against or involving any Assumed Benefit Plan or asserting any rights to or
claims for benefits under any Assumed Benefit Plan. To the knowledge of Parent or any Seller,
there are currently no investigations by any Governmental Entity involving any Seller Benefit Plan.

 

30

 

(c) Each Assumed U.S. Benefit Plan that is intended to be qualified under Section 401(a) of
the Code has received a favorable determination letter or opinion letter on a timely basis from
the IRS covering all provisions of the Code applicable to such Assumed U.S. Benefit Plan for which
determination letters or opinion letters are currently available that such Assumed Benefit Plan is
so qualified, and the trust that holds the assets with respect to each such Assumed U.S. Benefit
Plan has received a determination letter from the IRS that it is exempt from U.S. federal income
taxation under Section 501(a) of the Code, and there are no set of circumstances that could
reasonably be expected to materially adversely affect such qualification or exemption or result in
disqualification or loss of exemption.

(d) None of the Parent, any Seller or any Conveyed Subsidiary maintains or has during the
past six years maintained a defined benefit pension plan (including, for the avoidance of doubt,
any Seller Benefit Plan that is a defined benefit pension plan). No Assumed Benefit Plan is a
Multiemployer Plan or a “multiple employer plan” within the meaning of section 4063 or 4064 of
ERISA. With respect to Parent, the Sellers and the Conveyed Subsidiaries and any Commonly
Controlled Entity, there does not exist, nor do any circumstances exist that could reasonably be
expected to result in, any Controlled Group Liability that could reasonably be expected,
individually or in the aggregate, to result in material liability, at or after the Closing, to
Holdco or any entity that, together with Holdco, is treated as a single employer under
Section 414(b), (c), (m) or (o) of the Code.

(e) With respect to each Assumed U.S. Benefit Plan that is an “employee welfare benefit
plan” (within the meaning of Section 3(1) of ERISA), including any such plan covering retirees
(each such employee welfare benefit plan, an “Assumed U.S. Welfare Plan”), there are no
understandings, agreements or undertakings, written or oral, that would prevent any such plan
(including any such plan covering retirees) from being amended or terminated without material
liability to Holdco and its affiliates at or at any time after the Closing. No Assumed U.S.
Welfare Plan provides benefits after termination of employment except where the cost thereof is
borne entirely by the former employee (or his or her eligible dependents or beneficiaries) or as
required by Section 4980B(f) of the Code or any similar state statute.

(f) (i) Each Assumed Foreign Benefit Plan that is required to be registered with any
Governmental Entity has been maintained in good standing with such Governmental Entity and (ii)
neither Parent nor the Sellers know of any set of circumstances that would reasonably be expected
to adversely affect such good standing. No fact or set of circumstances exists and no event has
occurred that would reasonably be expected to result in any Assumed Foreign Benefit Plan being
required to pay any material tax or penalty under applicable Law. There are no unfunded
liabilities or deficiencies with respect to any Assumed Foreign Benefit Plan that is a defined
benefit plan or defined contribution plan, as determined pursuant to GAAP (or if GAAP is not
applicable, determined pursuant to the generally accepted accounting principles applicable to such
Assumed Foreign Benefit Plan), Applicable Laws or the terms of such Assumed Foreign Benefit Plan
or any other basis (i.e., solvency, wind up, going

 

31

 

concern). Each Conveyed Subsidiary has complied with its obligations under Section 3 of the
Welfare Reform and Pensions Act 1999 (UK stakeholder pension schemes).

(g) Except as set forth in Section 3.16(g) of the Seller Disclosure Letter, none of the
execution and delivery of this Agreement nor the consummation of the transactions contemplated by
this Agreement (alone or in conjunction with any other event, including terminations of
employment) will (A) entitle any Participant to any compensation or benefit (or increase thereto),
(B) accelerate the time of payment or vesting, or trigger any payment or funding, of any
compensation or benefits or trigger any other material obligation under any Seller Benefit Plan or
(C) result in any breach or violation of or default under, or limit the right of Holdco and its
affiliates to amend, modify or terminate, any Assumed Benefit Plan.

(h) Except with respect to the 2009 Key Employee Bonuses payable with respect to the
individuals listed on Section 5.01A(d)(i) of the Seller Disclosure Letter, no amount or other
entitlement that could be received as a result of the transactions contemplated hereby (alone or
in conjunction with any other event including any termination of employment) (i) by any
“disqualified individual” (as defined in Section 280G(c) of the Code) with respect to Parent, the
Sellers or any Conveyed Subsidiary could constitute an “excess parachute payment” (as defined in
Section 280G(b)(1) of the Code) or (ii) by any current or former director, officer, employee or
independent contractor of Parent, the Sellers or any Conveyed Subsidiary could result in the
imposition of an excise tax or other additional tax or penalty on any such person under applicable
non-U.S. laws or in the disallowance of a tax deduction to, or other penalty on, Holdco and its
affiliates under applicable non-U.S. laws. No director, officer, employee or independent
contractor of Parent, the Sellers or any Conveyed Subsidiary is entitled to receive any gross-up
or additional payment by reason of the tax required by Section 409A or 4999 of the Code (or under
any comparable provision under applicable non-U.S. laws) being imposed on such person.

SECTION 3.17. Absence of Changes or Events. Since the date of the Balance Sheet,
there has not been a Seller Material Adverse Effect. Except for the transactions contemplated by
this Agreement, since the date of the Balance Sheet, the Sellers and the Conveyed Subsidiaries have
caused the Businesses to be conducted in the ordinary course and in substantially the same manner
as previously conducted (including with respect to research and development efforts, capital
expenditures and inventory levels) and have made commercially reasonable efforts to keep intact the
Businesses, keep available the services of the employees of the Businesses and preserve the
relationships of the Businesses with customers, suppliers and others with whom the Businesses deal.
Since the date of the Balance Sheet to the date of this Agreement, neither Parent nor any Seller
or Conveyed Subsidiary has taken any action that, if taken after the date of this Agreement without
MG’s consent, would constitute a breach of Section 5.01(a)(i), (iv), (v), (vi), (viii), (ix), (xi)
or (xvi).

SECTION 3.18. Compliance with Applicable Laws; Environmental Matters. (a) (i)
Since January 1, 2007, the Businesses have been and are in compliance with all Applicable Laws
relating to the regulation of gaming and gambling (excluding

 

32

 

U.S. federal, state and local Laws which are the subject of Section 3.18(a)(ii)), except as,
individually or in the aggregate, has not had and would not reasonably be expected to have a Seller
Material Adverse Effect. Since January 1, 2007, neither Parent nor any Seller or Conveyed
Subsidiary has received any communication from a Governmental Entity that alleges that the
Businesses are not in compliance with any of the Applicable Laws described in the immediately
preceding sentence, except as, individually or in the aggregate, has not had and would not
reasonably be expected to have a Seller Material Adverse Effect.

(ii) Businesses have been and are in compliance in all material respects with all
Applicable Laws (other than the Applicable Laws described in Section 3.18(a)(i)). Neither
Parent nor any Seller or Conveyed Subsidiary has received any communication during the past
five years from a Governmental Entity that alleges that the Businesses are not in
compliance in any material respect with any Applicable Law (other than any Applicable Law
described in Section 3.18(a)(i)).

This Section 3.18(a) does not relate to matters with respect to Intellectual Property, which is the
subject of Section 3.07, Taxes, which are the subject of Section 3.14, or to environmental matters,
which are the subject of Section 3.18(b).

(b) During the past five years, neither Parent nor any Seller or Conveyed Subsidiary has
received any written communication from a Governmental Entity or other person that alleges that the
Businesses are not in compliance with, or have or may have material liability under, any
Environmental Law except as, individually or in the aggregate, has not had and would not reasonably
be expected to have a Seller Material Adverse Effect. Since January 1, 2007, each of the Sellers
and the Conveyed Subsidiaries and the Businesses have been and are in compliance with applicable
Environmental Laws, including possession of and compliance with all Permits required to conduct the
Businesses under applicable Environmental Laws, except as, individually or in the aggregate, has
not had and would not reasonably be expected to have a Seller Material Adverse Effect. There are
no material Environmental Claims pending or, to the knowledge of Parent or UIM, threatened against
or affecting any Seller or Conveyed Subsidiary or the Businesses, and none of the Sellers or
Conveyed Subsidiaries, the Businesses or the Acquired Assets is subject to any Judgment relating to
any Environmental Law including the investigation or remediation of Hazardous Materials. During
the past five years, no Hazardous Materials have been generated, stored, used, transported or
Released in, on, at, under or from any Business Property, or any other property owned or leased, or
at which Hazardous Materials were disposed of, in connection with the Businesses, in each case
except in compliance in all material respects with, and in a manner not reasonably expected to
result in material liability under, applicable Environmental Laws. For purposes of this Agreement:

(i) The term “Environmental Claim” means any administrative, regulatory or
judicial Proceeding, Judgment, investigation or written or oral notice of noncompliance or
violation by or from any Governmental Entity alleging liability of whatever kind or nature
(including liability or responsibility for the costs of

 

33

 

enforcement proceedings, investigations, cleanup, governmental response, removal or
remediation, natural resource damages, property damages, personal injuries, medical
monitoring, penalties, contribution, indemnification and injunctive relief) arising out of,
based on or resulting from (A) the presence or Release of, or exposure to, any Hazardous
Materials at any location; or (B) the failure to comply with any Environmental Law.

(ii) The term “Environmental Laws” means any and all Applicable Laws,
Judgments and Permits issued, promulgated or entered into by or with any Governmental
Entity, relating to pollution, preservation or reclamation of natural resources, or to the
protection of human health (as it relates to Hazardous Materials) or the environment.

(iii) The term “Hazardous Materials” means all hazardous or toxic substances,
wastes or chemicals regulated pursuant to any Environmental Law, including petroleum
(including crude oil or any fraction thereof) or petroleum distillates, asbestos or
asbestos containing materials, polychlorinated biphenyls, lead and lead-based paint and
toxic mold.

(iv) The term “Release” means any spill, emission, leaking, pouring, emptying,
pumping, injection, deposit, disposal, discharge, dispersal, leaching, emanation or
migration in, into, onto, or through the environment (including ambient air, surface water,
ground water, soils, land surface, subsurface strata or workplace) and any building,
facility, fixture or equipment.

(c) The occupancies and uses of the Business Properties, as well as the development,
construction, management, maintenance, servicing and operation of the Business Properties, comply
with all Applicable Laws and are not in violation of any thereof, except as, individually or in the
aggregate, has not had and would not reasonably be expected to have a Seller Material Adverse
Effect.

SECTION 3.19. Employee and Labor Matters. (a) There is not any, and during the past
three years there has not been any, labor strike, dispute, work stoppage or lockout or other
industrial action pending or, to the knowledge of Parent or any Seller, threatened against or
affecting the Businesses. None of the Employees is represented by a union or any other similar
labor organization and, to the knowledge of Parent or any Seller, no union or similar
organizational campaign is in progress with respect to the Employees and no question concerning
representation of such Employees exists. Neither Parent nor any Seller or Conveyed Subsidiary is
engaged in any unfair labor practice (as defined in Section 8 of the National Labor Relations Act
or similar Applicable Law) in connection with the operation or conduct of the Businesses. There
are no unfair labor practice charges or complaints against or affecting Parent or any Seller or
Conveyed Subsidiary pending, or, to the knowledge of Parent or any Seller, threatened, before the
National Labor Relations Board or similar non-U.S. authority in connection with the operation or
conduct of the Businesses. There are no pending or, to the knowledge of Parent or any Seller,
threatened material union grievances against or affecting Parent or any Seller or Conveyed
Subsidiary in connection with the operation or conduct of the

 

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Businesses. There are no pending or, to the knowledge of Parent or any Seller, threatened
charges in connection with the operation or conduct of the Businesses against or affecting Parent
or any Seller or Conveyed Subsidiary or any current or former Employee before the Equal Employment
Opportunity Commission or any state, local or non-U.S. agency responsible for the prevention of
unlawful employment practices. Neither Parent nor any Seller or Conveyed Subsidiary has received
any notice during the past three years of the intent of any Governmental Entity responsible for the
enforcement of labor or employment laws to conduct an investigation of or affecting the Businesses
and, to the knowledge of Parent or any Seller, no such investigation is in progress. Parent,
Sellers and the Conveyed Subsidiaries are in compliance in all material respects with all
Applicable Laws, codes of conduct and practice, collective agreements and relevant customs and
practices with respect to labor relations, employment and employment practices, occupational safety
and health standards, terms and conditions of employment, payment of wages, classification of
employees, immigration, visa, work status, human rights, pay equity and workers’ compensation, and
are not engaged in any unfair labor practices in connection with the conduct of the Businesses.

(b) Section 3.19(b) of the Seller Disclosure Letter sets forth a true and complete list of
each Employee as of the date of this Agreement including, as applicable, each Employee’s current
(A) job title, (B) years of service with the Sellers and their respective affiliates, (C) base
salary or current wages, (D) equity compensation holdings (including number and types of awards and
all applicable vesting requirements), (E) legal residence and work locations, (F) employment status
(i.e., active or inactive, including the basis for inactive status) and (G) employing
entity, except in each case to the extent that the Sellers and their respective affiliates are
prohibited under Applicable Law from making such information available. The Sellers and their
respective affiliates shall promptly update such schedule from time to time (and in any event at
least once every month, if necessary) as necessary so that it remains true and complete in all
material respects during the period through the Closing Date. The Sellers shall provide to Holdco
and its affiliates a final, true and complete version of such schedule not later than 10 days after
the Closing Date. There are no material deviations in the contracts and employment conditions of
the Employees from Applicable Law or regulation, collective bargaining agreements or any other
undertaking and no payments have been made or are contemplated by the Parent or any Conveyed
Subsidiary to any Employee or former Employee or to their dependents or relatives that are in
excess of that person’s entitlements under their terms of employment or appointment. The Parent
and Conveyed Subsidiaries do not use the services of consultants, agency workers or other
self-employed persons, and have not entered into any secondment or flexible working arrangement
with any Employee. Neither the Parent nor any Conveyed Subsidiary has been a party to a Relevant
Transfer in the eight years preceding the date of this Agreement.

(c) No Employee is a party to or bound by any Contract with Parent or any Seller (or, to the
knowledge of Parent or any Seller, any third party), or subject to any Judgment, that may interfere
with the use of such person’s best efforts to promote the interests of the Businesses, may conflict
with the Businesses or the transactions contemplated hereby or that, individually or in the
aggregate, has had or could reasonably

 

35

 

be expected to have a Seller Material Adverse Effect. No activity of any current or former
Employee has caused a material violation of any employment contract, confidentiality agreement,
patent disclosure agreement or other Contract among such Employee, Parent or any Seller (or, to the
knowledge of Parent or any Seller, between such Employee and any third party). The execution and
delivery of this Agreement will not conflict in a material manner with or result in a material
breach of the terms, conditions or provisions of, or constitute a material default under, any
Contract among any Employee, Parent or any Seller (or, to the knowledge of Parent or any Seller,
between such Employee and any third party). No Employee is subject to any disciplinary action or
engaged in any grievance procedure.

SECTION 3.20. Transactions with Affiliates. (a) None of Parent, any Seller or any
of their affiliates (other than the Conveyed Subsidiaries) will be a party to any Assigned Contract
after the Closing. After the Closing, none of Parent, any Seller and their affiliates will have
any interest in any property (real or personal, tangible or intangible) or Contract used in or
pertaining to the Businesses, other than the Excluded Assets.

(b) Section 3.20(b) of the Seller Disclosure Letter sets forth a true and complete list, as
of the date of this Agreement, of all licenses, products and services provided to the Businesses by
(i) any portion of the business, assets or employees of the Sellers not constituting Acquired
Assets or Business Employees or Conveyed Subsidiaries or (ii) any of the Sellers’ affiliates (other
than the Conveyed Subsidiaries).

SECTION 3.21. Accounts; Safe Deposit Boxes; Officers and Directors; Customers; Funds Held
on Deposit Liabilities. (a) Section 3.21(a) of the Seller Disclosure Letter sets forth (i) a
true and correct list of all bank and savings accounts, certificates of deposit and safe deposit
boxes of the Sellers and the Conveyed Subsidiaries and those persons authorized to sign thereon and
(ii) a true and correct list of all officers and directors of each of the Conveyed Subsidiaries.

(b) As of the date of this Agreement, the number of Unique Active Poker Accounts of the
Businesses is at least 168,680 and the number of Unique Active Casino Accounts of the Businesses is
at least 19,152.

(c) Section 3.21(c) of the Seller Disclosure Letter sets forth, with respect to each Seller
and Conveyed Subsidiary, the amount of Funds Held on Deposit Liabilities held by such Seller or
Conveyed Subsidiary and the amount of cash and cash equivalents held by such Seller or Conveyed
Subsidiary in connection with Funds Held on Deposit Liabilities, in each case as of the date
specified thereon.

SECTION 3.22. Brokers. No broker, investment banker, financial advisor or other
person (other than Goldman, Sachs & Co., the fees and expenses of which will be paid by Parent) is
entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission in
connection with the Acquisition or any of the other transactions contemplated by this Agreement,
the Shareholder Agreement and the

 

36

 

Ancillary Agreements based upon arrangements made by or on behalf of Parent or any Seller or
Conveyed Subsidiary.

SECTION 3.23. Projections. The projections delivered to MG and Holdco by or on
behalf of Parent and the Sellers were prepared in good faith based upon assumptions that Parent and
the Sellers believed were reasonable at the time made.

SECTION 3.24. Private Offering. None of Parent, the Parent Stock Sellers, UIM or the
Conveyed Subsidiaries, their affiliates or Representatives has issued, sold or offered any security
of any of the Conveyed Subsidiaries to any person under circumstances that would cause the sale of
the Shares, as contemplated by this Agreement, to be subject to the registration requirements of
the Securities Act of 1933, as amended (the “Securities Act”) or any similar law of any
jurisdiction. None of Parent, the Parent Stock Sellers, UIM or the Conveyed Subsidiaries, their
affiliates and Representatives will offer the Shares or any part thereof or any similar securities
for issuance or sale to, or solicit any offer to acquire any of the same from, anyone so as to make
the issuance and sale of the Shares subject to the registration requirements of the Securities Act
or any similar law of any jurisdiction.

SECTION 3.25. Investment Purposes. The Holdco Interests acquired by IMLL and
transferred to the Holdco Interest Holder pursuant to this Agreement are being acquired for
investment only, for IMLL’s and the Holdco Interest Holder’s own account and not as nominee or
agent, and not with a view to any resale or distribution thereof, neither IMLL nor the Holdco
Interest Holder has any present intention of selling, granting any participation in or otherwise
distributing the same (other than as provided in this Agreement), and each of IMLL and the Holdco
Interest Holder shall not offer to sell or otherwise dispose of the Holdco Interests so acquired by
it in violation of the registration and prospectus delivery requirements of the Securities Act or
similar laws of any jurisdiction. Neither IMLL nor the Holdco Interest Holder has any contract,
undertaking, agreement or arrangement with any person to sell or transfer the Holdco Interests
acquired by it, or to grant participations with respect to the same, to such person or to any third
person.

SECTION 3.26. No Other Representations and Warranties. Except for the
representations and warranties contained in this Article III and any express representations and
warranties in the Shareholder Agreement or any Ancillary Agreement, none of Parent or the Sellers
nor any other person acting for or on behalf of such persons makes any representation or warranty,
express or implied.

ARTICLE IV

Representations and Warranties of MG

MG hereby represents and warrants to Parent and the Sellers that the statements contained in
this Article IV are true and correct, except as set forth in the disclosure letter delivered by MG
to Parent and the Sellers on or prior to the date of the

 

37

 

execution and delivery by MG of this Agreement (the “MG Disclosure Letter”), it being
acknowledged and agreed that (a) the MG Disclosure Letter shall be arranged in numbered and
lettered sections corresponding to the numbered and lettered sections contained in this Article IV,
(b) the disclosure in any section shall be deemed to qualify other sections in this Article IV to
the extent (and only to the extent) that it is readily apparent from the face of such disclosure
that such disclosure also qualifies or applies to such other sections (notwithstanding the omission
of a reference or cross reference thereto) and (c) the mere inclusion of an item in such MG
Disclosure Letter as an exception to a representation or warranty shall not be deemed to constitute
an admission, or otherwise imply, that such item represents a material exception or material fact,
event or circumstance or that such item has had or would reasonably be expected to have a Purchaser
Material Adverse Effect.

SECTION 4.01. Organization, Standing and Power; Holdco. (a)  MG is, and from and
after the date on which it becomes a party to this Agreement, Holdco and each of the subsidiaries
of Holdco is, duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization (except, in the case of good standing, for entities organized
under the laws of any jurisdiction that does not recognize such concept). MG, and from and after
the date on which it becomes a party to this Agreement Holdco and each of its subsidiaries, has
full corporate power and authority and possesses all Permits necessary to enable it to own, lease
or otherwise hold its properties and assets and to conduct its business, other than such Permits
the lack of which, individually or in the aggregate, has not had and would not reasonably be
expected to have a Purchaser Material Adverse Effect. MG has delivered to Parent and the Sellers
true and complete copies of the certificate of incorporation (extrait K-bis) and bylaws (statuts)
of MG, as amended through the date of this Agreement.

(b) Since their respective dates of organization, Holdco and its subsidiaries have not
carried on any business or conducted any operations other than the execution of this Agreement and
the performance of their obligations under this Agreement and matters ancillary thereto. From and
after the date on which it becomes a party to this Agreement, Holdco has no Indebtedness and has
not incurred or assumed any Indebtedness or provided any Guarantee of any Indebtedness or other
liabilities or obligations.

(c) From and after the date on which it becomes a party to this Agreement, (i) all the shares
in the share capital of Holdco are outstanding and owned directly by MG, free and clear of any
Liens, (ii) all of the outstanding shares of Holdco are, and the Holdco Interests will be when
issued, validly issued, fully paid and nonassessable, (iii) there are no outstanding warrants,
options, agreements, subscriptions, convertible or exchangeable securities or other commitments
pursuant to which Holdco or any of its subsidiaries is or may become obligated to issue, sell,
purchase, return or redeem any Holdco shares or other securities of Holdco or any of its
subsidiaries, (iv) no equity securities of Holdco or any of its subsidiaries are reserved for
issuance for any purpose, (v) Holdco owns of record and beneficially all outstanding equity and
voting interests of its subsidiaries, free and clear of all Liens, and (vi) such equity and voting

 

38

 

interests constitute all the issued and outstanding capital stock of and other equity and
voting interests in the subsidiaries of Holdco.

SECTION 4.02. Authority; Execution and Delivery; Enforceability. Each of MG and,
from and after the date on which it becomes a party to this Agreement, Holdco has full power and
authority to execute this Agreement, the Shareholder Agreement and the Ancillary Agreements to
which it is, or is specified to be, a party and to consummate the Acquisition and the other
transactions contemplated hereby and thereby. The execution and delivery by each of MG and, from
and after the date on which it becomes a party to this Agreement, Holdco of this Agreement, the
Shareholder Agreement and the Ancillary Agreements to which it is, or is specified to be, a party
and the consummation by each of MG and Holdco and Holdco’s subsidiaries of the Acquisition and the
other transactions contemplated hereby and thereby have been duly authorized by all necessary
corporate action on the part of each of MG and, from and after the date on which Holdco becomes a
party to this agreement, Holdco and Holdco’s subsidiaries, and no other corporate proceedings on
the part of MG and, from and after the date on which Holdco becomes a party to this agreement,
Holdco and Holdco’s subsidiaries are necessary to authorize this Agreement, the Shareholder
Agreement and the Ancillary Agreements or the consummation of the Acquisition and the other
transactions contemplated hereby or thereby. Each of MG and, from and after the date on which
Holdco becomes a party to this agreement, Holdco has duly executed and delivered this Agreement and
prior to the Closing will have duly executed and delivered the Shareholder Agreement and each
Ancillary Agreement to which it is, or is specified to be, a party, and, assuming the due execution
and delivery of this Agreement, the Shareholder Agreement and each Ancillary Agreement by the other
parties hereto and thereto, this Agreement constitutes, and each of the Shareholder Agreement and
each Ancillary Agreement to which it is, or is specified to be, a party will after the Closing
constitute, its legal, valid and binding obligation, enforceable against it in accordance with its
terms, subject to bankruptcy, insolvency or similar laws relating to creditors’ rights generally
and to general principles of equity.

SECTION 4.03. No Conflicts; Consents. The execution and delivery by each of MG and
Holdco of this Agreement, the Shareholder Agreement and each Ancillary Agreement to which it is, or
is specified to be, a party, the consummation by each of MG, Holdco and Holdco’s subsidiaries of
the Acquisition and the other transactions contemplated hereby and thereby and compliance by each
of MG, Holdco and Holdco’s subsidiaries with the terms hereof and thereof do not and will not
conflict with, or result in any violation of or default (with or without notice or lapse of time,
or both) under, or give rise to a right of termination, cancelation or acceleration of any
obligation or to loss of a benefit under, or to increased, additional, accelerated or guaranteed
rights or entitlements of any person under, or result in the creation of any Lien upon any of the
properties or assets of MG or Holdco or any of their subsidiaries under, any provision of (i) the
certificate of incorporation or by-laws (or equivalent documents and instruments) of MG or Holdco
or any of their subsidiaries, (ii) any Contract to which MG or any of its subsidiaries is a party,
to which MG, any of its subsidiaries or any of their respective properties or assets is subject,
or, from and after the date on which Holdco becomes a party to this Agreement, to which Holdco or
any of its subsidiaries is a

 

39

 

party or to which Holdco or any of its subsidiaries or any of their respective properties or
assets is subject, or (iii) any Judgment or Applicable Law applicable to MG or any of its
subsidiaries or their respective properties or assets or, from and after the date on which Holdco
becomes a party to this Agreement, to Holdco or any of its subsidiaries or their respective
properties or assets, other than, in the case of clauses (ii) and (iii) above, any such items that,
individually or in the aggregate, have not had and could not reasonably be expected to have a
Purchaser Material Adverse Effect. Other than the matters specified in Section 6.01(a) and the
matters specified in Section 6.02(f), no Consent of, or registration, declaration or filing with,
any Governmental Entity is required to be obtained or made by or with respect to MG or Holdco or
any of their subsidiaries in connection with the execution and delivery of this Agreement, the
Shareholder Agreement or any Ancillary Agreement, the consummation of the Acquisition or the other
transactions contemplated hereby and thereby or compliance with the terms hereof and thereof.

SECTION 4.04. Proceedings. From and after the date on which Holdco becomes a party
to this Agreement, there are no (a) outstanding Judgments against or affecting Holdco or any of its
subsidiaries, (b) Proceedings pending or, to the knowledge of MG or Holdco, threatened against or
affecting Holdco or any of its subsidiaries or (c) investigations by any Governmental Entity that
are pending or, to the knowledge of MG or Holdco, threatened against or affecting Holdco or any of
its subsidiaries. There are no (x) outstanding Judgments against or affecting MG, (y) Proceedings
pending or, to the knowledge of MG, threatened against or affecting MG or (z) investigations by any
Governmental Entity that are pending or, to the knowledge of MG, threatened against, involving or
affecting MG that, in any case, individually or in the aggregate, have had or would reasonably be
expected to have a Purchaser Material Adverse Effect.

SECTION 4.05. Capital Resources; Financial Statements; Purchaser Material Adverse
Effect. (a) The obligations of MG and, from and after the date on which it becomes a party to
this Agreement, Holdco hereunder are not subject to any conditions regarding MG’s, Holdco’s or any
other person’s ability to obtain financing for the consummation of the transactions contemplated by
this Agreement. MG and Holdco will at the Closing and from time to time thereafter as required by
this Agreement and the Ancillary Agreements have access to sufficient cash resources to pay all
amounts to be paid by Holdco, its affiliates and subsidiaries, to Parent, the Parent Asset Sellers
and the UIM Asset Sellers in connection with the consummation of the transactions contemplated
hereby and thereby, including all costs and expenses incurred by Holdco, its affiliates and
subsidiaries in connection with this Agreement, the Shareholder Agreement and the Ancillary
Agreements and the transactions contemplated hereby and thereby. Holdco and its subsidiaries will
not have any Indebtedness immediately following the Closing.

(b) Section 4.05(b) of the MG Disclosure Letter sets forth (i) the audited accounts of
Société Mangas Capital Gaming for the fiscal year ended December 31, 2007, (ii) the audited
consolidated accounts of Mangas Gaming S.A.S. for the fiscal year ended December 31, 2008, (iii)
the unaudited consolidated accounts of Mangas Gaming S.A.S. for the nine-month period ended
September 30, 2009 and (iv) the management accounts of Mangas Gaming Group for the one-month
period ended

 

40

 

October 31, 2009. The financial statements in clauses (i) through (iii) were prepared in
accordance with French generally accepted accounting principles and the financial statements in
clauses (i) through (iv) are derived from books and records of MG and its subsidiaries.

(c) Since September 30, 2009 to the date of this Agreement, there has not been a Purchaser
Material Adverse Effect.

SECTION 4.06. Brokers. No broker, investment banker, financial advisor or other
person (other than Lazard Frères, the fees and expenses of which will be paid by MG) is entitled to
any broker’s, finder’s, financial advisor’s or other similar fee or commission in connection with
the Acquisition or any of the other transactions contemplated by this Agreement, the Shareholder
Agreement and the Ancillary Agreements based upon arrangements made by or on behalf of MG or
Holdco.

SECTION 4.07. Investment Purposes. The Shares purchased by Holdco and its
subsidiaries pursuant to this Agreement are being acquired for investment only, for Holdco’s and
its subsidiaries’ own account and not as nominee or agent, and not with a view to any resale or
distribution thereof, none of Holdco or its subsidiaries has (from and after the date on which
Holdco becomes a party to this Agreement) any present intention of selling, granting any
participation in or otherwise distributing the same, and none of Holdco or its subsidiaries shall
offer to sell or otherwise dispose of the Shares so acquired by it in violation of the registration
and prospectus delivery requirements of the Securities Act or similar laws of any jurisdiction.
From and after the date on which Holdco becomes a party to this Agreement, none of Holdco or its
subsidiaries has any contract, undertaking, agreement or arrangement with any person to sell or
transfer the Shares acquired by it, or to grant participations with respect to the same, to such
person or to any third person.

SECTION 4.08. Private Offering. None of MG, Holdco, their affiliates or
Representatives has issued, sold or offered any security of Holdco to any person under
circumstances that would cause the issuance and sale of Holdco Interests to the Holdco Interest
Holder, as contemplated by this Agreement, to be subject to the registration requirements of the
Securities Act or any similar law of any jurisdiction. None of MG, Holdco, their affiliates and
Representatives will offer Holdco Interests or any part thereof or any similar securities for
issuance or sale to, or solicit any offer to acquire any of the same from, anyone so as to make the
issuance and sale of Holdco Interests as contemplated by this Agreement subject to the registration
requirements of the Securities Act or any similar law of any jurisdiction.

SECTION 4.09. No Other Representations and Warranties. Except for the
representations and warranties contained in this Article IV and any express representations and
warranties in the Shareholder Agreement or any Ancillary Agreement, none of MG or Holdco nor any
other person acting for or on behalf of such persons makes any representation or warranty, express
or implied.

 

41

 

ARTICLE V

Covenants

SECTION 5.01. Covenants of Parent and Sellers Relating to Operation and Conduct of the
Businesses. (a)  Except to the extent set forth in Section 5.01 of the Seller Disclosure
Letter or otherwise expressly permitted or required by the terms of this Agreement, from the date
of this Agreement to the Closing, the Sellers and Conveyed Subsidiaries shall, and Parent shall
cause the Sellers and Conveyed Subsidiaries to, conduct their respective Businesses in the usual,
regular and ordinary course in substantially the same manner as previously conducted (including
with respect to research and development efforts, marketing efforts and capital expenditures) and
use all commercially reasonable efforts to keep intact their respective Businesses, keep available
the services of the current employees of the Businesses and preserve the relationships of their
respective Businesses with customers, suppliers, licensors, licensees, distributors and others with
whom the Businesses deal. In addition (and without limiting the generality of the foregoing),
except to the extent set forth in Section 5.01 of the Seller Disclosure Letter or otherwise
expressly permitted or required by the terms of this Agreement, the Sellers and Conveyed
Subsidiaries shall not, and Parent shall not permit the Sellers and Conveyed Subsidiaries to, do
any of the following without the prior written consent of MG (which consent shall not be
unreasonably withheld, conditioned or delayed):

(i) (A) except pursuant to a Seller Benefit Plan existing on the date hereof or as
required by Applicable Law, (x) increase the compensation or benefits payable or to become
payable to any Participant other than, in the case of base salary, wages or commissions,
increases in the ordinary course of business consistent with past practice or (y) for the
benefit of any Participant, establish, adopt, enter into, amend or terminate or take any
action to accelerate any rights or benefits under any collective bargaining agreement or
Seller Benefit Plan, (B) except pursuant to a Seller Benefit Plan existing on the date
hereof or as required by Applicable Law, grant any change in control, retention, severance
or termination compensation or benefits to, or enter into or amend any employment, bonus or
severance agreement with, any Participant (other than employment agreements with newly
hired employees providing annual compensation of (x) less than $125,000 for each such
employee and (y) less than $1,000,000 for all such employees in the aggregate), (C) except
as required by Applicable Law, change any actuarial or other assumption used to calculate
funding obligations with respect to any Assumed Benefit Plan, or change the manner in which
contributions to any Assumed Benefit Plan are made or the basis on which such contributions
are determined, (D) take any action to fund or in any other way secure the payment of
compensation or benefits under any plan, agreement, contract or arrangement with any
Employee or any Assumed Benefit Plan, or (E) take any action to accelerate the vesting and
payment of any compensation or benefit under any Assumed Benefit Plan;

 

42

 

(ii) transfer any Employee from the Businesses to any other business conducted by
Parent or any of the Sellers, or any other employee of Parent, the Sellers or their
respective affiliates from any other business conducted by Parent or any of the Sellers to
the Businesses;

(iii) terminate the employment of any Employee with an annual salary or annualized
wages of more than $125,000 or any Employee specified in Section 6.02(e) of the Seller
Disclosure Letter;

(iv) incur or assume any Indebtedness or other liabilities or obligations for borrowed
money or provide any Guarantee of any Indebtedness or other liabilities or obligations,
other than (A) short-term trade payables in the ordinary course of business and consistent
with past practice, (B) Intercompany Indebtedness and (C) Indebtedness owed to Parent or
any of Parent’s subsidiaries;

(v) permit, allow or suffer any Acquired Asset or any of the Shares to become
subjected to any Lien of any nature whatsoever other than a Permitted Lien;

(vi) (A) pay, discharge, settle or satisfy any claims, liabilities, obligations or
Proceedings other than in the ordinary course of business consistent with past practice and
in accordance with their terms, or (B) waive, assign, transfer or release any claims or
rights of material value;

(vii) pay, loan or advance any amount to, or sell, transfer or lease any of its assets
(other than Excluded Assets) to, or enter into any agreement or arrangement to do any of
the foregoing with, Parent or any of its affiliates;

(viii) make any change in any method of accounting or accounting practice or policy
other than those required by GAAP;

(ix) acquire by merging or consolidating with, or by purchasing a substantial portion
of the assets of, or by any other manner, any business or any corporation, partnership,
association or other business organization or division thereof, or otherwise acquire any
material assets; provided that the Sellers and Conveyed Subsidiaries may acquire
assets to the extent replacing or repairing damaged assets;

(x) make any change to any Permits currently held or file any application for a
change, extension or grant of a Permit;

(xi) make, incur or pay any capital expenditure, except for capital expenditures
disclosed in the capital plans for 2009 and 2010 provided to MG prior to the date of this
Agreement or to comply with requirements imposed by Applicable Law;

(xii) sell, lease, license or otherwise dispose of any Acquired Asset, except (A)
obsolete or excess equipment sold in the ordinary course of business and

 

43

 

consistent with past practice and (B) click-through licenses to end users of the
products of the Businesses;

(xiii) enter into, modify or amend any lease of real property;

(xiv) enter into any Contract that, if it had been entered into prior to the date of
this Agreement, would be required to be disclosed pursuant to (A) Section 3.08(a)(iii),
3.08(a)(iv), 3.08(a)(ix), 3.08(a)(xiv) or 3.08(a)(xviii) or (B) Section 3.08(a)(v) or
3.08(a)(vi) which, in the case of this clause (B), constitutes a sale-leaseback
arrangement;

(xv) engage in (A) any promotional sales or discount activity with any customers with
the effect of accelerating to pre-Closing periods sales or additions of Unique Active Poker
Accounts or Unique Active Casino Accounts that would otherwise be expected (based on past
practice) to occur in post-Closing periods, (B) any practice which would have the effect of
accelerating to pre-Closing periods collections of receivables that would otherwise be
expected (based on past practice) to be made in post-Closing periods or (C) any practice
which would have the effect of postponing to post-Closing periods payments due in
connection with the operation or conduct of the Businesses that would otherwise be expected
(based on past practice) to be made in pre-Closing periods;

(xvi) make any deemed or express Tax election (other than in the ordinary course of
business), change any deemed or express Tax election, change any Tax accounting period or
method, settle or compromise any material liability with respect to Taxes or consent to any
claim or assessment with respect to Taxes;

(xvii) form any new subsidiary;

(xviii) amend the certificate of incorporation or by-laws (or equivalent documents and
instruments) of any Conveyed Subsidiary;

(xix) issue, sell, transfer, repurchase or redeem or propose to issue, sell, transfer,
repurchase or redeem any shares of capital stock of any Conveyed Subsidiary, or securities
convertible into or exchangeable or exercisable for, or options with respect to, or
warrants to purchase or rights to subscribe for, shares of capital stock of any Conveyed
Subsidiary;

(xx) (A) make available, or propose or enter into any Contract to make available, any
of the products or services of the Businesses to end users located in any jurisdiction set
forth in Section 5.01(a)(xx) of the Seller Disclosure Letter or (B) make any changes to the
regulatory compliance operations, systems and processes of the Businesses as required by
Applicable Law or fail to take any action reasonably necessary in order to maintain the
existing regulatory compliance operations, systems and processes of the Businesses in full
force and effect;

 

44

 

(xxi) enter into, extend, modify or renew any IP License or any Source Code Contract,
other than (A) renewals of expiring IP Licenses that consist solely of a license to a
Seller or Conveyed Subsidiary of third-party Intellectual Property (provided that
such renewals shall be on terms no less favorable to such Seller or Conveyed Subsidiary
than the terms of such IP License as in effect immediately prior to such expiration) and
(B) click-through licenses to end users of the products of the Businesses;

(xxii) take any action or fail to take any action that, individually or in the
aggregate with all previous actions or failures to act, would reasonably be expected to
result in any representation or warranty of Parent or the Sellers contained in this
Agreement becoming untrue or take any action that, individually or in the aggregate with
all previous actions, would reasonably be expected to result in any of the other conditions
to Closing set forth in Article VI becoming incapable of being satisfied; or

(xxiii) authorize, or commit to do or agree to take, whether in writing or otherwise,
any of the foregoing actions.

(b) Advice of Changes. Parent and the Sellers shall promptly advise MG and Holdco in
writing of the occurrence of any change or event that, if it had occurred prior to the date of this
Agreement, would have been required to be included in the Seller Disclosure Letter in order for the
representations and warranties of Parent and the Sellers in this Agreement to be accurate;
provided, however, that no such notification shall affect the representations,
warranties, covenants and agreements in this Agreement or the Ancillary Agreements for purposes of
determining the satisfaction of the conditions set forth in Article VI or of determining whether
any person is entitled to indemnification pursuant to Article VIII.

(c) Affirmative Covenants. Until the Closing, the Sellers and the Conveyed
Subsidiaries shall, and Parent shall cause the Sellers and the Conveyed Subsidiaries to:

(i) make marketing expenditures (including online media, TV media, print media and
public relations (including surveys, lobbying, editorial, ambassador, event and other
public relations) expenditures) in at least the amounts and types, and during each of the
periods, specified in the most recent budget and business plan provided to MG prior to the
date of this Agreement;

(ii) maintain insurance coverage at levels consistent with presently existing levels;

(iii) maintain the Acquired Assets and the assets of the Conveyed Subsidiaries in the
ordinary course of business in good operating order and condition, reasonable wear and tear
excepted; and

(iv) upon any damage, destruction or loss to any Acquired Asset or asset of a Conveyed
Subsidiary, apply any and all insurance proceeds received with

 

45

 

respect thereto to the prompt repair, replacement and restoration thereof to the
condition of such asset before such event or to such other (better) condition as may be
required by Applicable Law.

(d) Parent Indebtedness. Until the Closing, Parent shall not incur or assume, or
permit any of its subsidiaries to incur or assume, any Indebtedness (other than Intercompany
Indebtedness) or other liabilities or obligations for borrowed money or provide any Guarantee of
any Indebtedness or other liabilities or obligations (i) if the execution and delivery by Parent or
any of the Sellers of this Agreement, the Shareholder Agreement or any Ancillary Agreement to which
any of such persons is, or is specified to be, a party, the consummation by Parent or any of the
Sellers of the Acquisition and the other transactions contemplated hereby and thereby, or
compliance by Parent or any of the Sellers with the terms hereof and thereof do or will conflict
therewith, or result in any violation of or default (with or without notice or lapse of time, or
both) thereunder, or give rise to a right of acceleration of any obligation thereunder, or to
increased, additional, accelerated or guaranteed rights or entitlements of any person thereunder,
or result in the creation of any Lien upon any of the Acquired Assets, the Shares or the properties
or assets of any Conveyed Subsidiary thereunder that would continue to be effective following the
Closing, or (ii) that would be binding upon Holdco or any of its affiliates or any of their
respective properties or assets after the Closing or would entitle any third party to any rights or
entitlements with respect to, or result in the creation of any Lien upon, any of their properties,
assets or capital stock or other equity or voting interests after the Closing. Prior to the
Closing, Parent shall pay, or cause to be paid or otherwise canceled, all Indebtedness (x) owed to
Parent and its subsidiaries (other than the Sellers and Conveyed Subsidiaries), on the one hand, by
the Sellers and Conveyed Subsidiaries, on the other hand, and (y) owed by Parent and its
subsidiaries (other than the Sellers and Conveyed Subsidiaries), on the one hand, to the Sellers
and Conveyed Subsidiaries, on the other hand, other than the IMLL Note, the UIM Note and any
Indebtedness by or among UIM on the one hand and IMLL on the other hand.

SECTION 5.02. Covenants of MG and Holdco. Except to the extent expressly permitted
or required by the terms of this Agreement, from the date of this Agreement to the Closing, MG and
Holdco shall not, and MG shall not permit Holdco or any of Holdco’s subsidiaries to, do any of the
following without the prior written consent of Parent and UIM (which consent shall not be
unreasonably withheld, conditioned or delayed):

(a) amend the certificate of incorporation (extrait K-bis) or bylaws (statuts) of
Holdco or any of Holdco’s subsidiaries, other than amendments in order to consummate the
issuance and delivery of Holdco Interests to IMLL as contemplated by this Agreement and to
give effect to the agreements set forth in the Shareholder Agreement;

(b) issue, sell, pledge, transfer, repurchase or redeem or propose to issue, sell,
pledge, transfer, repurchase or redeem any shares of capital stock of Holdco, or securities
convertible into or exchangeable or exercisable for, or options

 

46

 

with respect to, or warrants to purchase or rights to subscribe for, shares of
capital stock of Holdco;

(c) take any action or fail to take any action that, individually or in the aggregate
with all previous actions or failures to act, would reasonably be expected to result in any
representation or warranty of MG or Holdco contained in this Agreement becoming untrue or
take any action that, individually or in the aggregate with all previous actions, would
reasonably be expected to result in any of the other conditions to Closing set forth in
Article VI becoming incapable of being satisfied;

(d) in the case of Holdco and its subsidiaries, incur or assume any Indebtedness or
provide any Guarantee of any Indebtedness or other liabilities or obligations other than as
contemplated by Section 1.01; or

(e) authorize, or commit to do or agree to take, whether in writing or otherwise, any
of the foregoing actions.

SECTION 5.03. No Solicitation. (a)  Prior to the Closing, none of Parent or any of
the Sellers shall, nor shall any of them authorize or permit any of its affiliates or any of its or
their respective Representatives to, (i) directly or indirectly solicit, initiate, encourage,
induce or facilitate the submission, amendment or modification of any Acquisition Proposal or
(ii) directly or indirectly enter into, continue or otherwise participate in any discussions or
negotiations regarding, or furnish to any person any information with respect to, or otherwise
cooperate in any way with any person in connection with, or take any other action to facilitate,
make effective, implement or consummate, any Acquisition Proposal or any inquiries regarding, or
the making of any proposal that constitutes, or that may reasonably be expected to lead to, any
Acquisition Proposal. Notwithstanding the foregoing, if Parent’s board of directors determines in
good faith (after consultation with outside counsel and a financial advisor of internationally
recognized reputation) that doing so is required by its fiduciary duties under Applicable Law,
Parent may, in response to a bona fide written offer or proposal which, if consummated, would
constitute a Parent Change in Control (a “Parent Acquisition Proposal”) which was not
solicited after the date hereof and was made prior to the Closing and did not otherwise result from
a breach of this Section 5.03(a), Parent may, subject to compliance with Section 5.03(b), (x)
furnish information with respect to Parent to the person making such Parent Acquisition Proposal
(and its Representatives) pursuant to a customary confidentiality agreement not less restrictive of
such person than the Confidentiality Agreement (provided that all such information, to the
extent relating to any Seller or Conveyed Subsidiary or the Businesses, has previously been
provided to MG or is provided to MG prior to or substantially concurrent with the time it is
provided to such person), (y) participate in discussions regarding the terms of such Parent
Acquisition Proposal and the negotiation of such terms with the person making such Parent
Acquisition Proposal (and such person’s Representatives) and (z) enter into agreements relating to
such Parent Acquisition Proposal and implement and consummate such Parent Change in Control.
Without limiting the foregoing, it is agreed that any violation of the restrictions set forth in
this Section 5.03(a) by any Representative of any

 

47

 

Seller or Parent or any of any Seller or Parent’s affiliates shall constitute a breach of this
Section 5.03(a) by such Seller or Parent, as the case may be.

(b) In addition to the obligations of each Seller and Parent set forth in Section 5.03(a),
prior to the Closing, each Seller and Parent each shall as promptly as possible advise MG of its
receipt of (i) any Acquisition Proposal or request for information or inquiry that may reasonably
be expected to lead to or contemplate a Acquisition Proposal and (ii) the material terms and
conditions of any such Acquisition Proposal, request or inquiry and the identity of the person
making such Acquisition Proposal, request or inquiry. Commencing upon the provision of any advice
referred to in the immediately preceding sentence, Parent (or its outside counsel) shall advise and
confer with MG (or its outside counsel) on a prompt and regular basis regarding the progress of
discussions or negotiations regarding the terms and conditions of any Parent Acquisition Proposal,
request or inquiry. As soon as practicable after receipt or delivery thereof, Parent and the
Sellers (or their respective outside counsel) shall provide to MG (or its outside counsel) copies
of all correspondence and other written material relating to any such Acquisition Proposal, request
or inquiry exchanged between any Seller or Parent or any of their respective Representatives, on
the one hand, and the person making such Acquisition Proposal, request or inquiry or any of its
Representatives, on the other hand.

SECTION 5.04. Access to Information. The Sellers shall, Parent shall cause the
Sellers to, and the Sellers shall cause the Conveyed Subsidiaries to, afford to MG, Holdco and
their accountants, counsel and other Representatives reasonable access, upon reasonable notice
during normal business hours during the period prior to the Closing, to all the management
personnel, properties, books, contracts, commitments, Tax Returns and records of the Businesses
(other than the Excluded Assets), and during such period shall furnish promptly to MG and Holdco
any information concerning the Businesses as MG and Holdco may reasonably request. After the
Closing, Holdco shall, and MG shall cause Holdco to, afford to Parent and its accountants and other
Representatives reasonable access, upon reasonable notice during normal business hours, to the
management personnel, properties, books, contracts, commitments, Tax Returns and records of Holdco
and its subsidiaries, as is reasonably necessary for Parent’s preparation of its audited financial
statements for the fiscal year ending December 31, 2009 and audited financial statements of the
Businesses for the period beginning on January 1, 2010 and ending on the Closing Date.

SECTION 5.05. Confidentiality. (a) MG and Holdco acknowledge that the information
being provided to them in connection with the Acquisition and the consummation of the other
transactions contemplated hereby and by the Shareholder Agreement and the Ancillary Agreements is
subject to the terms of the confidentiality agreement between Parent and MG dated as of April 30,
2009 (the “Confidentiality Agreement”), the terms of which are incorporated herein by
reference.

(b) Parent and the Sellers shall keep confidential, and cause their affiliates and
Representatives to keep confidential, all information relating to the Businesses, except (i) as
required by Applicable Law or administrative process or by any court of

 

48

 

competent jurisdiction, (ii) for information that is available to the public on the Closing
Date, or thereafter becomes available to the public other than as a result of a breach of this
Section 5.05(b), (iii) for disclosure to accountants and legal counsel of Parent or the Sellers to
the extent that (A) such persons require such information in performing customary services for
Parent or the Sellers and (B) each such person agrees in writing to keep confidential all such
information on the same terms as set forth or referred to in this Section 5.05, (iv) as reasonably
required to conduct their respective businesses in the ordinary course consistent with past
practice and (v) for disclosure by Parent filed with the SEC that is of a nature and extent
consistent with the past SEC disclosure practices of Parent. The covenant set forth in this
Section 5.05(b) shall terminate three years after the first date on which the Holdco Interest
Holder fails to hold at least 20% of the Holdco Interests following the Closing Date.

(c) After the Closing Date, MG and Holdco shall keep confidential, and cause their affiliates
and Representatives to keep confidential, all information relating to Parent, the Sellers and their
subsidiaries and affiliates, except (i) as required by Applicable Law or administrative process or
by any court of competent jurisdiction, (ii) for information that is available to the public on the
Closing Date, or thereafter becomes available to the public other than as a result of a breach of
this Section 5.05(c), (iii) for disclosure to accountants and legal counsel of MG or Holdco to the
extent that (A) such persons require such information in performing customary services for MG or
Holdco and (B) each such person agrees in writing to keep confidential all such information on the
terms no less restrictive than those set forth or referred to in this Section 5.05, and (iv) for
information relating to the Conveyed Subsidiaries, the Acquired Assets, the Assumed Liabilities or
the Businesses. The covenant set forth in this Section 5.05(c) shall terminate three years after
the first date on which the Holdco Interest Holder fails to hold at least 20% of the Holdco
Interests following the Closing Date.

SECTION 5.06. Required Actions. (a)  Upon the terms and subject to the conditions
set forth in this Agreement, each of the parties hereto agrees to use its commercially reasonable
efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist
and cooperate with the other parties in doing, all things necessary, proper or advisable to
consummate and make effective, in the most expeditious manner practicable, the Acquisition and the
other transactions contemplated by this Agreement and the Ancillary Agreements.

(b) In connection with and without limiting Section 5.06(a), promptly following the execution
and delivery by the parties of this Agreement, the parties shall (i) make all necessary
registrations, declarations and filings with Governmental Entities that are required to be made by
them in connection with the consummation of the Acquisition and the other transactions contemplated
by this Agreement and the Ancillary Agreements and (ii) use their respective commercially
reasonable efforts to take all other actions required to be taken in order to obtain all Consents
and nonactions required to be obtained from Governmental Entities in connection with the
consummation of the Acquisition and the other transactions contemplated by this Agreement and the
Ancillary Agreements and in order to eliminate each other impediment that may be asserted by such
Governmental Entities, in each case with respect to the Acquisition and the other

 

49

 

transactions contemplated by this Agreement and the Ancillary Agreements, in each case so as
to enable the Closing to occur as soon as reasonably possible. Notwithstanding anything to the
contrary in this Section 5.06, MG shall in no event be required to offer or agree to (A) dispose
of, hold separate or limit its operation of any portion of the Businesses or of its or its
subsidiaries’ other businesses, assets or properties, (B) limit its or its subsidiaries’ ability to
acquire or hold, or exercise full rights of ownership of, the Shares, Acquired Assets or any of its
or its subsidiaries’ other businesses, assets or properties, or (C) limit its or its subsidiaries’
ability to effectively control the Businesses or any of its or its subsidiaries’ other businesses,
assets or properties.

(c) In connection with and without limiting Section 5.06(a), prior to the Closing and, to the
extent MG waives Section 6.02(d), for a period of 12 months thereafter, each party shall, and shall
cause its affiliates to, use its commercially reasonable efforts (at its own expense) to obtain,
and to cooperate in obtaining, all consents from third parties and Governmental Entities necessary
or appropriate to permit the transfer of the Shares and Acquired Assets to, and the assumption of
the Assumed Liabilities by, Holdco (or one or more of Holdco’s subsidiaries); provided,
however, that the parties shall not be required to pay or commit to pay any amount to (or
incur any obligation in favor of) any person from whom any such consent may be required (other than
filing or application fees).

(d) Notwithstanding anything in this Agreement to the contrary, nothing in this Section 5.06
shall require MG to (i) consent to any action or omission by Parent or any Seller or Conveyed
Subsidiary that would be inconsistent with Section 5.01 absent such consent or (ii) agree to amend
or waive any provision of this Agreement or any Ancillary Agreement.

(e) Each of the parties hereto shall use its commercially reasonable efforts to (i) cooperate
in all respects with each other in connection with any filing or submission with any Governmental
Entity in connection with the Acquisition or any of the other transactions contemplated by this
Agreement and the Ancillary Agreements (including, to the extent permitted by Applicable Law,
providing copies of all such documents to the other parties prior to making such filing or
submission and considering all reasonable comments of the other parties suggested in connection
therewith) and in connection with any investigation or other inquiry by or before any Governmental
Entity relating to the Acquisition or any of the other transactions contemplated by this Agreement
and the Ancillary Agreements, and (ii) keep the other parties informed in all material respects and
on a reasonably timely basis of any material communication received by such party from, or given by
such party to, any Governmental Entity relating to the Acquisition or any of the other transactions
contemplated by this Agreement and the Ancillary Agreements.

(f) In connection with and without limiting any other provision of this Section 5.06:

(i) MG, Holdco and Holdco’s subsidiaries shall, promptly after the date of this
Agreement, apply to the LGA and the KGC for the Permits referred to in Section 6.02(f),
shall promptly provide both the LGA and the KGC with such

 

50

 

documentation and information (including information or documentation about MG,
Holdco, Holdco’s subsidiaries and the ultimate beneficial owners of MG) as specified in any
relevant statute or regulation or as required by the LGA or the KGC, as the case may be, to
facilitate the issuance by the LGA and KGC of any and all Permits referred to in
Section 6.02(f) and shall promptly provide all cooperation as the LGA and/or the KGC may
reasonably require as part of such process.

(ii) Parent and the Sellers shall take all action reasonably requested by MG, Holdco
and Holdco’s subsidiaries to assist MG, Holdco and Holdco’s subsidiaries in obtaining the
Permits referred to in Section 6.02(f), including (A) entering into discussions with the
LGA and KGC (if requested by MG), (B) initiating and/or participating in proceedings
involving the LGA and KGC (if requested by MG) in order to obtain such Permits,
(C) promptly providing both the LGA and the KGC with such documentation and information
(including information about Parent, the Sellers, their respective subsidiaries and their
respective ultimate beneficial owners) as specified in any relevant statute or regulation
or as required by the LGA or the KGC, as the case may be, to facilitate the issuance of any
and all Permits referred to in Section 6.02(f), and (D) promptly providing all other
cooperation as MG, Holdco, Holdco’s subsidiaries, the LGA and/or the KGC may reasonably
require as part of such process.

(iii) To the extent permitted by Applicable Law, as promptly as practicable following
a request by MG to do so, Parent and UIM shall cause one of their respective wholly owned
subsidiaries, the identity of which subsidiary shall be agreed upon by MG, such agreement
not to be unreasonably withheld (such subsidiary, the “Italian License Applicant”),
to apply to the AAMS for all Permits necessary to permit the conduct and hosting by MG,
Holdco and Holdco’s subsidiaries of online poker and casino games in Italy, including
client provider authorizations, key person licenses, approval of business entities and/or
approvals of any individuals the AAMS deems necessary to the conduct and hosting by MG,
Holdco and Holdco’s subsidiaries of online poker and casino games in Italy and approvals of
any control systems to be used in the conduct and hosting of such games in Italy
(collectively, the “Italian License”). Parent, UIM and MG shall cooperate to
determine and agree upon the contents of such application and the process for advancing
such application with the goal of obtaining the Italian License as promptly and efficiently
as reasonably practicable taking account of Applicable Law and the practices of the AAMS.
To the extent permitted by Applicable Law, Parent and UIM shall, and shall cause their
respective subsidiaries to, promptly provide the AAMS with such documentation and other
information (including information or documentation about their respective subsidiaries and
ultimate beneficial owners) as specified in any relevant statute or regulation or as
required by the AAMS to facilitate the issuance of the Italian License, promptly provide
all cooperation as the AAMS may reasonably require as part of such process and otherwise
use their reasonable best efforts to obtain the Italian Gaming License as promptly as
practicable following the filing of an application to the AAMS.

 

51

 

(iv) To the extent permitted by Applicable Law, MG, Holdco and Holdco’s subsidiaries
shall use their commercially reasonable efforts to take all action reasonably requested by
Parent and UIM to assist the Italian License Applicant in obtaining the Italian License,
including (A) entering into discussions with the AAMS (if requested by Parent and UIM), (B)
using their commercially reasonable efforts to promptly provide the AAMS with such
documentation and information (including information or documentation about their
respective subsidiaries and ultimate beneficial owners) as specified in any relevant
statute or regulation or as required by the AAMS to facilitate the issuance of the Italian
License and (C) using their commercially reasonable efforts to promptly provide all other
cooperation as Parent, UIM or the AAMS may reasonably require as part of such process. MG
shall use reasonable efforts to obtain refunds of any VAT paid in connection with such
application.

(g) [intentionally omitted]

(h) MG and Holdco shall reasonably cooperate in good faith with Parent and its affiliates to
facilitate the release of Parent, prior to the Closing or as promptly as practicable thereafter,
from the guarantees of real property leases listed on Section 5.06(h) of the Seller Disclosure
Letter with respect to obligations arising thereunder after the Closing, including by agreeing to
substitute MG as a guarantor of such leases if requested by the beneficiaries of such guarantees on
commercially reasonable terms. Following the Closing, if MG, on the one hand, or Parent or any of
its subsidiaries, on the other hand, makes any payment pursuant to a guarantee by such party of the
obligations under any real property lease that is an Assigned Contract or under the WSOP Agreement
(such party, the “paying party”), then, promptly upon demand by the paying party, the other
party shall make a contribution to the paying party equal to such other party’s pro rata share of
the payment (based on the percentage of the outstanding Holdco Shares owned by such other party (in
the case of MG) or the Holdco Interest Holder (in the case of Parent or any of its subsidiaries) at
the time of such payment).

(i) MG and Holdco shall use commercially reasonable efforts to provide all information
regarding themselves and their affiliates requested by the payment processors of the Businesses as
part of their regular and customary “know your customer” or probity review processes prior to
Closing in order to permit the continuation of their payment processing activities for the
Businesses after the Closing.

(j) Each of UIM Canco 2 and UIM Canco 3 shall register for purposes of the GST Legislation
and QST Legislation and provide its registration number to Everest Gaming Malta prior to the
Closing.

(k) Each of UIM Canco 2 and UIM Canco 3 shall not formally dissolve itself without the prior
written consent of MG, such consent not to be unreasonably withheld.

 

52

 

(l) Following the transaction set forth in Section 1.01(b)(iii), Holdco shall take all
actions necessary to cause Everest Gaming Malta to not register for purposes of the GST Legislation
and the QST Legislation.

(m)(i) As soon as practicable following the date of this Agreement, Parent shall provide MG
with a proposed allocation of the Purchase Price among the Sellers (the “Proposed
Allocation”). Such Proposed Allocation shall be based upon, and accompanied by, appraisals of
the Acquired Assets and the Conveyed Subsidiaries (other than assets to be transferred by IMLL)
from Duff & Phelps or another internationally recognized independent appraisal firm (the “First
Appraiser”).

(ii) The Proposed Allocation shall be subject to MG’s review and consent, which
consent shall not unreasonably be withheld; provided that MG shall only be
permitted to object to the Proposed Allocation based on ( A ) divergences between the
Proposed Allocation and the appraisals prepared by the First Appraiser and (ii) material
objections with respect to the assumptions or methodologies employed by such appraisal
firms in preparing such appraisals; provided that MG shall not have the right to object to
the appraisals by the First Appraiser delivered to MG on or prior to the date of this
Agreement, or the portions of the Proposed Allocation based thereon so long as they are
consistent with such appraisals, which appraisals shall be final and binding on MG, Parent
and, if applicable, the Second Appraiser (as defined below). The failure of MG to object
to the Proposed Allocation before the later of (x) the date that is 15 days after MG’s
receipt of the Proposed Allocation and (y) January 20, 2010 (the period between the date on
which MG receives the Proposed Allocation and such later date, the “Allocation Review
Period”) shall constitute consent thereto. During the Allocation Review Period, MG and
its Representatives shall be granted reasonable access to the personnel of the First
Appraiser to enable MG and its Representatives to make inquiries relevant to the appraisals
and their preparation.

(iii) If MG does not notify Parent within the Allocation Period that it objects to
the Proposed Allocation pursuant to clauses (m)(ii)(A) or (B) above, such allocation
shall be the final and binding allocation of the Purchase Price among the Sellers. If MG
so objects to the Proposed Allocation within the Allocation Review Period, then MG and
Parent shall attempt to resolve such matter. Not later than 5 days after the earlier of (A)
receipt by Parent of MG’s notice of objection and (B) notification by either Parent or MG
to the other that such resolution is not possible, Parent and MG shall reasonably agree
upon, and engage, a second internationally recognized independent appraisal firm (the
“Second Appraiser”). Neither MG nor Parent, nor their respective affiliates, shall provide
the Second Appraiser with the appraisals performed by the First Appraiser (other than the
Completed Appraisals), or the results thereof, until it has completed its own appraisals,
as described below.

(iv) The Second Appraiser shall appraise the Acquired Assets and the Conveyed
Subsidiaries in groupings consistent with the appraisals performed

 

53

 

by the First Appraiser, provided that the Second Appraiser (A) shall not appraise CIDC
Delaware or GIS, and shall be bound by the Completed Appraisals, and (B) must complete,
and deliver to MG and Parent, its appraisals within 20 days after accepting its engagement.
Upon completing its appraisals, the final, binding allocation of Purchase Price shall be
determined by the Second Appraiser solely from, and consistent with (x) the Completed
Appraisals and, with respect to the assets not covered by the completed Appraisals, the
averages of the appraised values determined by the First Appraiser and the Second
Appraiser.

(v) MG shall bear all of the fees and expenses of the Second Appraiser.

SECTION 5.07. Expenses. Whether or not the Closing takes place, and except as
expressly set forth in Section 2.04(a), Section 5.12, Section 7.02, Article VIII, Article IX,
Annex II and Annex III, all costs and expenses incurred in connection with this Agreement and the
Ancillary Agreements and the transactions contemplated hereby and thereby shall be paid by the
party incurring such expense, including all costs and expenses incurred pursuant to Sections 1.04,
5.06 and Article XI, except that MG shall pay all expenses incurred by Holdco and its subsidiaries
prior to the Closing.

SECTION 5.08. Post-Closing Cooperation. (a) MG, Holdco, Parent and the Sellers
shall cooperate with each other, and shall cause their respective Representatives to cooperate with
each other, for a period of 180 days after the Closing to ensure the orderly transition of the
Businesses from the Sellers to Holdco and its subsidiaries and to minimize any disruption to the
Businesses and the other respective businesses of Parent and MG that might result from the
transactions contemplated hereby. After the Closing, upon reasonable written notice, MG, Holdco,
Parent and the Sellers shall furnish or cause to be furnished to each other and their respective
Representatives access, during normal business hours, to such information and assistance relating
to the Businesses (to the extent within the control of such party) as is reasonably necessary for
financial reporting and accounting matters.

(b) No party shall be required by this Section 5.08 to take any action that would
unreasonably interfere with the conduct of its business or unreasonably disrupt its normal
operations (or, in the case of MG, the Businesses). Any information relating to the Businesses
received by Parent, any Seller or any of their affiliates pursuant to this Section 5.08 shall be
subject to Section 5.05(b).

SECTION 5.09. Publicity. Prior to the Closing, no public release or announcement
concerning this Agreement, any Ancillary Agreement, the Acquisition or any of the other
transactions contemplated hereby or thereby shall be issued by any party without the prior consent
of the other parties (which consent shall not be unreasonably withheld, conditioned or delayed);
provided, however, that any party may make any such release or announcement that is
required by Applicable Law or the rules and regulations of each stock exchange upon which any
securities of such party are listed, in which case the party required to make such release or
announcement shall, to the extent permitted by Applicable Law, give the other parties prior notice
of, and allow the other parties

 

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reasonable time to comment on, such release or announcement in advance of such issuance;
provided further that Parent, each Seller, each Conveyed Subsidiary and MG each may
make internal announcements to its employees that are consistent with the parties’ prior public
disclosures regarding this Agreement, any Ancillary Agreement, the Acquisition or any of the other
transactions contemplated hereby and thereby after reasonable prior notice to and consultation with
the other.

SECTION 5.10. Agreements Not To Compete. (a)  Each of Parent and each Seller
understands that MG and Holdco shall be entitled to protect and preserve the going concern value of
the Businesses to the extent permitted by law and that MG and Holdco would not have entered into
this Agreement absent the provisions of this Section 5.10. Therefore, for a period of 10 years
from the Closing, Parent shall not, and shall cause each of its subsidiaries not to, directly or
indirectly:

(i) engage in activities or businesses, or establish any new businesses, wherever
located (“Competitive Activities”), that involve (A) designing, developing or
manufacturing Software and application services sold, licensed or marketed to or for Online
Cash-Wager Gambling Sites, (B) advertising, marketing or licensing Software and application
services for use in Online Cash-Wager Gambling Sites, (C) designing, developing,
advertising, marketing, operating or supporting Online Cash-Wager Gambling Sites,
(D) soliciting any customer or prospective customer of the Businesses to purchase any
Software or services sold by the Businesses from anyone other than MG, Holdco and their
affiliates, or to use any Online Cash-Wager Gambling Site designed, developed, advertised,
marketed, operated or supported by or on behalf of any person other than MG, Holdco or
their affiliates, or (E) assisting any person in any way to do, or attempt to do, anything
prohibited by clause (A), (B), (C) or (D) above; and

(ii) on behalf of itself or any other person, engage in (A) soliciting or recruiting
any employees of Holdco or any of its subsidiaries who were employees of the Businesses on
or within six months prior to the Closing Date, except for general advertisements or the
use of recruiters so long as employees of the Businesses or persons who have worked for the
Businesses are not specifically targeted or (B) hiring any employees of Holdco who were
employees of the Businesses on or within six months prior to the Closing Date, except for
any employees of the Businesses whose employment by the Businesses was not terminated in
connection with any violation of this Section 5.10(a)(ii).

(b) Section 5.10(a) shall be deemed not breached as a result of the ownership by Parent, the
Sellers or any of their affiliates of: (i) less than an aggregate of 5% of any class of stock of a
person engaged, directly or indirectly, in Competitive Activities; provided,
however, that such stock is listed on a national securities exchange, (ii) less than 5% in
value of any instrument of indebtedness of a person engaged, directly or indirectly, in Competitive
Activities, (iii) any businesses less than 5% of the annual revenues of which are derived from
Competitive Activities or (iv) Holdco Interests.

 

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(c) Notwithstanding any other provision of this Agreement, it is understood and agreed that
the remedy of indemnity payments pursuant to Article VIII and other remedies at law would be
inadequate in the case of any breach of the covenants contained in Section 5.10(a). It is
accordingly agreed that MG and Holdco shall be entitled to equitable relief, including an
injunction or injunctions to prevent breaches of Section 5.10(a) and to enforce specifically the
performance of the terms and provisions of Section 5.10(a), without proof of actual damages (and MG
and Holdco hereby waive any requirement for the securing or posting of any bond in connection with
such remedy), this being in addition to any other remedy to which MG and Holdco are entitled at law
or in equity. Parent and each Seller further agree not to assert that such a remedy, including a
remedy of specific enforcement, is unenforceable, invalid, contrary to law or inequitable for any
reason, nor to assert that a remedy of monetary damages would provide an adequate remedy for any
such breach.

SECTION 5.11. Further Assurances. From time to time, as and when requested by any
party, each party shall execute and deliver, or cause to be executed and delivered, all such
documents and instruments and shall take, or cause to be taken, all such further or other actions
(subject to Section 5.06), as such other party may reasonably deem necessary or desirable to
consummate the Acquisition and the other transactions contemplated by this Agreement and the
Ancillary Agreements, including, in the case of Parent and the Sellers, executing and delivering to
Holdco such assignments, deeds, bills of sale, consents and other instruments as MG, Holdco or
their counsel may reasonably request as necessary or desirable for such purpose.

SECTION 5.12. Sales and Transfer Taxes. (a)  Any liability, obligation or
commitment for transfer, documentary, sales, use, registration, value added and other similar Taxes
(including all applicable real estate transfer Taxes) incurred in connection with this Agreement,
the Ancillary Agreements, the Acquisition and the other transactions contemplated hereby and
thereby (other than the acquisition by UIM Canco 1 pursuant to Section 1.01(a)(i)) (“Transfer
Taxes”) shall be paid 50% by MG and 50% by the applicable Seller. In the event that MG or an
applicable Seller recovers or receives a refund of any Transfer Tax of which 50% was paid by other
party pursuant to this Section 5.12(a), MG or the applicable Seller shall pay 50% of such amount
recovered or refund to such other party within 30 days of receipt. For the avoidance of doubt,
Transfer Taxes shall not include any income taxes (or withholding taxes) relating to, or arising as
a result of, the Acquisition.

(b) Subject to Section 5.12(a), the party legally responsible for filing any applicable
Transfer Tax returns and paying any applicable Transfer Taxes shall file such returns and pay such
Transfer Taxes. Parent, the Sellers and Holdco (or any of their subsidiaries or affiliates, as
applicable) shall cooperate in timely making all filings, returns, reports and forms as may be
required in connection with the payment of Transfer Taxes. Each party shall execute and deliver
all instruments and certificates reasonably necessary to enable the other to comply with any filing
requirements relating to any such Transfer Taxes.

 

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(c) GIS and Canadian Newco will at Closing jointly execute in prescribed form, and GIS and
Canadian Newco will file, or will cause to be filed, within the required time, an election under
Section 167(l) of the GST Legislation such that no Canadian goods and services tax will be payable
with respect to the purchase and sale of the Acquired Assets transferred by GIS to Canadian Newco.
GIS and Canadian Newco will file, or will cause to be filed, within the required time, an election
under the corresponding provision of the QST Legislation such that no Quebec sales tax will be
payable with respect to the purchase and sale of the Acquired Assets transferred by GIS to Canadian
Newco. Notwithstanding any such election, in the event that it is determined by the Canada Revenue
Agency or by the Ministere du Revenu du Quebec that there is a Goods and Services Tax or Quebec
Sales Tax liability resulting from the sale of the Acquired Assets owned by GIS, GIS and Canadian
Newco agree that such Goods and Services Tax or Quebec Sales Tax, as the case may be, shall, unless
already collected from Canadian Newco by GIS, be forthwith remitted in accordance with Section
5.12(a) and (b). GIS and Canadian Newco shall, if applicable, elect jointly in the prescribed form
under Section 22 of the ITA and Section 184 of the QTA within the time prescribed as to the sale of
the accounts receivable transferred by GIS to Canadian Newco and designate in such election an
amount equal to the portion of the Closing Payment allocated to such accounts receivable. This
election, or these elections, will be made within the time prescribed for such elections.

SECTION 5.13. Parent Guarantee. Parent hereby irrevocably guarantees, as principal
and not as surety, (a) the due and punctual payment of all monetary obligations now or hereafter
due and payable by the Sellers pursuant to this Agreement, and (b) the full and complete
performance of all covenants, agreements, duties and obligations applicable to the Sellers pursuant
to this Agreement, whether such covenants, agreements, duties or obligations are outstanding on the
date hereof or arise or are incurred at any time or times hereafter.

SECTION 5.14. Other Transaction Agreements. (a) On the Closing Date, Parent, the
Holdco Interest Holder, MG and Holdco shall execute and deliver a shareholder agreement (the
“Shareholder Agreement”) in the form of Exhibit A. On the Closing Date, Holdco shall cause
the bylaws of Holdco to be amended and restated in the form attached to Exhibit A.

(b) As promptly as practicable after the date of this Agreement, but in any event prior to
the Closing Date, the parties hereto shall cause the Implementing Agreements to be prepared,
executed and delivered by the applicable parties hereto.

SECTION 5.15. Treatment of Conveyed Subsidiaries’ Indebtedness and Cash.
Notwithstanding anything to the contrary in Section 5.01, on or prior to the Closing Date (a)
Parent and the Sellers shall, or shall cause the Conveyed Subsidiaries to, repay in full all
outstanding Indebtedness of the Conveyed Subsidiaries (other than Intercompany Indebtedness), and
cause all related Liens on the assets of the Conveyed Subsidiaries to be released, and (b) Parent
and the Sellers shall use all reasonable efforts to remove all cash and cash equivalents from the
Conveyed Subsidiaries in excess of the Funds Held on Deposit Liabilities of the Asset Sellers and
Conveyed Subsidiaries.

 

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Notwithstanding anything in this Agreement to the contrary, Parent and the Sellers shall not
remove any cash or cash equivalents from any Conveyed Subsidiary after the Closing Time.

SECTION 5.16. Resignations; Appointments. At the Closing, Parent and the Sellers
will, except as otherwise requested by MG and Holdco in writing, deliver to MG, Holdco and the
Conveyed Subsidiaries the resignations (effective on or prior to the Closing) of all of the
officers and directors of each of the Conveyed Subsidiaries from their positions as such, in each
case in a form reasonably acceptable to MG.

SECTION 5.17. SBM Guarantee. At the Closing, SBM and Société Anonyme des Bains de
Mer et du Cercle des Etrangers a Monaco, an entity organized under the laws of Monaco (“SBM
Parent”) shall enter into a guarantee (caution solidaire) of the due and punctual payment of
the Contingent Additional Consideration by MG in the form set forth as Exhibit B (the “SBM
Guarantee”).

SECTION 5.18. Formation of New Parties to Agreement. (a) Promptly following the
date of this Agreement, MG shall take all action to cause Holdco to be registered with the Trade
and Companies Registry of Paris and organized under the laws of France and to execute and deliver a
signature page to this Agreement, upon which execution and delivery Holdco shall become a party to
this Agreement and shall be bound by its provisions with the same force and effect as if Holdco had
become a party hereto on the date hereof.

(b) Promptly following the date of this Agreement, UIM shall take all action to cause each
of UIM Canco 1, UIM Canco 2 and UIM Canco 3 to be incorporated and organized under the laws of
Quebec and to execute and deliver a signature page to this Agreement, upon which execution and
delivery it shall become a party to this Agreement (and a “Seller” and “UIM Asset
Seller” pursuant hereto) and shall be bound by its provisions with the same force and effect
as if it had become a party hereto on the date hereof.

(c) Promptly following the date of this Agreement, MG shall take all action to cause
Canadian Newco to be incorporated and organized under the laws of Quebec and to execute and
deliver a signature page to this Agreement, upon which execution and delivery it shall become a
party to this Agreement and shall be bound by its provisions with the same force and effect as if
it had become a party hereto on the date hereof.

(d) Promptly following the date of this Agreement, MG shall take all action to cause New
Maltese Holdco to be organized under the laws of Malta and to execute and deliver a signature page
to this Agreement, upon which execution and delivery it shall become a party to this Agreement and
shall be bound by its provisions with the same force and effect as if it had become a party hereto
on the date hereof.

(e) Promptly following the date of this Agreement, MG shall take all action to cause New
CIDC Delaware to be incorporated under the laws of Delaware and

 

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to execute and deliver a signature page to this Agreement, upon which execution and delivery
it shall become a party to this Agreement and shall be bound by its provisions with the same force
and effect as if it had become a party hereto on the date hereof.

(f) Promptly following the date of this Agreement, Parent shall take all action to cause the
Holdco Interest Holder to be organized under the laws of a jurisdiction that has a tax treaty with
the Republic of France, and to execute and deliver signature pages to this Agreement, upon which
execution and delivery the Holdco Interest Holder shall become a party to this Agreement and shall
be bound by its provisions with the same force and effect as if the Holdco Interest Holder had
become a party hereto on the date hereof.

SECTION 5.19. Pre-Closing Reorganization. Prior to the Closing Date, CIDC Quebec
shall transfer, sell, convey, assign and deliver to GIS, and GIS shall purchase, acquire and accept
from CIDC Quebec, all the right, title and interest as of such time of CIDC Quebec in, to and under
the Acquired Assets owned by CIDC Quebec (the “CIDC Quebec Assets”), free and clear of all
liabilities (other than Assumed Liabilities), for (A) an amount in cash equal to the fair market
value of such assets as determined by the First Appraiser and (B) the assumption of the assumed
liabilities from CIDC Quebec (the “CIDC Quebec Assumed Liabilities”).

ARTICLE VA

Employee Matters

SECTION 5.01A. General. (a) Offer of Employment; Continuation of Employment;
Credited Service; Cooperation. (i) Except (x) where an Employee’s employment transfers
automatically to Holdco or its subsidiaries as a result of the Acquisition, whether pursuant to
Applicable Law or as a result of the transfer to Holdco of the Shares or (y) as otherwise provided
under this Section 5.01A(a) with respect to an Employee on Disability Leave, Holdco shall, or shall
cause its subsidiaries to, offer employment, effective as of 12:01 a.m. on the Closing Date (which
offers shall be made in compliance with Holdco’s covenants set forth in this Article VA), to each
Employee, other than any Employee on Disability Leave (each such Employee, an “Active
Employee”) with job responsibilities that are substantially similar to such Employee’s job
responsibilities immediately prior to the Closing Date. In the case of each Active Employee whose
employment transfers to Holdco or its subsidiaries automatically under Applicable Law upon the
Closing Date as a result of the transfer of the Shares to Holdco and its subsidiaries, effective as
of 12:01 a.m. on the Closing Date, Holdco shall, or shall cause its subsidiaries to, continue such
Employee’s employment with job responsibilities that are substantially similar to such Employee’s
job responsibilities immediately prior to the Closing Date. For purposes of this Agreement, any
Employee who is not actively at work on the Closing Date due to a leave of absence (including due
to vacation, holiday, sick leave, family leave, workers’ compensation, maternity (whether or not on
short-term disability leave) or paternity leave, military leave, jury duty, bereavement leave or
injury)

 

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in compliance with the applicable policies of the Sellers and their affiliates, other than any
Employee on Disability Leave, shall be considered an Active Employee. With respect to any Employee
on Disability Leave who presents himself or herself to Holdco and its subsidiaries for active
employment within six months following the Closing Date or such longer period otherwise required by
Applicable Law or a collective bargaining agreement or similar agreement identified in
Section 3.08(a)(ii) of the Seller Disclosure Letter (the “Disability Period”), effective as
of the date on which such Employee on Disability Leave presents himself or herself to Holdco and
its subsidiaries for active employment following the Closing Date, (A) in the case of any such
Employee on Disability Leave who was employed by a Conveyed Subsidiary immediately prior to the
date such employee’s disability leave began, Holdco shall cause such Conveyed Subsidiary to
continue the employment of such Employee on Disability Leave, and (B) in the case of any such
Employee on Disability Leave who was employed by an Asset Seller immediately prior to the date such
employee’s disability leave began, Holdco shall, or shall cause its subsidiaries to, make an offer
of employment to such Employee on Disability Leave. Each Employee who accepts employment with
Holdco and its subsidiaries as of the applicable Transfer Time, or whose employment continues with
Holdco and its subsidiaries as of the applicable Transfer Time, shall be referred to herein as a
“Transferred Employee.” With respect to any Employee on Disability Leave who does not
present himself or herself to Holdco and its subsidiaries for active employment prior to the last
day of the Disability Period, Holdco and its subsidiaries shall have no obligation to continue the
employment of or make an offer of employment to (as applicable) such Employee on Disability Leave.
Except in the case of an Employee on Disability Leave, an Employee’s employment with Parent, the
Sellers and their respective affiliates shall cease as of the Closing Date; provided that
the employment of an Employee on Disability Leave who is employed by an Asset Seller shall cease on
the earlier of such Employee’s Transfer Time and the last day of the Disability Period. Parent,
the Sellers and their respective affiliates shall not offer employment to any Employee after the
Closing Date, whether or not such Employee becomes a Transferred Employee.

(ii) Parent, the Sellers, MG and Holdco intend that the transactions contemplated by
this Agreement should not constitute a separation, termination or severance of employment
of any Transferred Employee prior to or upon the occurrence of the Closing Date (or the
applicable Transfer Time, as the case may be), including for purposes of any Seller Benefit
Plan that provides for separation, termination or severance benefits, and that each
Employee will have continuous and uninterrupted employment immediately before and after the
Closing Date. Notwithstanding anything herein to the contrary, the Sellers shall, and
shall cause their affiliates to, indemnify and hold harmless Holdco and its subsidiaries
from and against any statutory, common law, civil law, contractual or other separation,
termination or severance benefits, or any other legally mandated payment obligations
(including accrued vacation or time-off), in each case, that arise (A) as of the applicable
Transfer Time, as a result of any Transferred Employee’s transfer of employment to or
continuation of employment with Holdco and its subsidiaries or (B) as a result of an
Employee’s failure to accept an offer of employment from (or to commence employment with),
or objection to the

 

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automatic transfer of employment to, Holdco and its subsidiaries. Except as
specifically provided herein (including Section 5.01A(e)), neither Holdco nor any of its
subsidiaries shall have any liability or obligation of any kind to or with respect to any
current or former Employee who is not a Transferred Employee.

(iii) From and after the Closing Date, Holdco and its subsidiaries shall give each
Transferred Employee full credit for such Transferred Employee’s service with the Sellers
and their respective affiliates (“Pre-Closing Service”) for (A) in the case of each
Assumed Benefit Plan, all purposes, and (B) in the case of any employee benefit plan,
arrangement or employment-related entitlement other than an Assumed Benefit Plan provided,
sponsored, maintained or contributed to by Holdco and its subsidiaries, for purposes of
eligibility to participate and vesting of benefits, but only to the same extent recognized
by the Sellers and their respective affiliates under similar employee benefit plans,
arrangements and employment-related entitlements of the Sellers and their respective
affiliates, except, in the case of clauses (A) and (B), to the extent such Pre-Closing
Service would result in the duplication of benefits for the same period of service. To the
extent permitted under Applicable Law, Holdco and its subsidiaries shall not be required to
provide credit for Pre-Closing Service for benefit accrual purposes under any employee
benefit plan or arrangement of Holdco and its subsidiaries that is a defined benefit
pension plan, postretirement welfare plan or grandfathered plan (or other plan that is no
longer open to new participants).

(b) Continuation of Benefits. Without limiting the generality of Section 5.01A(a),
and except as specifically provided otherwise in this Article VA, Holdco shall, or shall cause its
subsidiaries to, provide for the duration of the Continuation Period (as defined below) each
Transferred Employee with (i) base salary or wages at a rate not less than that provided to such
Transferred Employee immediately prior to the applicable Transfer Time and (ii) employee benefits
that are substantially comparable in the aggregate to those provided to such Transferred Employee
immediately prior to the Closing; provided that (A) none of Holdco or any of its
subsidiaries shall have any obligation to (1) issue, or adopt any plans or arrangements providing
for the issuance of, equity or equity based compensation, (2) provide post-retirement medical
coverage and (3) provide a U.S. or Canadian qualified or non-qualified defined benefit pension plan
and (B) no such plans or arrangements of the Sellers or their affiliates shall be taken into
account in determining whether employee benefits are substantially comparable in the aggregate.
For purposes of this Agreement, “Continuation Period” means the one-year period immediately
following the Closing Date.

(c) Severance. Notwithstanding anything in this Agreement to the contrary, Holdco
shall provide, or shall cause its subsidiaries to provide, to each Transferred Employee whose
employment is terminated following the applicable Transfer Time and prior to the expiration of the
Continuation Period, severance and other separation benefits that are substantially comparable to
those severance and other separation benefits applicable to such Transferred Employee under the
severance or separation benefit plans, programs, policies, agreements or arrangements of the
Sellers

 

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and their affiliates as in effect immediately prior to the applicable Transfer Time and
identified in Section 3.16(a) of the Seller Disclosure Letter.

(d) Annual Bonuses. (i) Bonuses payable under the Seller Benefit Plans in respect
of the 2009 fiscal year to Employees other than the individuals listed on Section 5.01A(d)(i) of
the Seller Disclosure Letter (collectively, the “2009 Bonuses”) will be paid on
February 28, 2010; provided, that if the Closing occurs prior to February 28, 2010, the
amount of the 2009 Bonuses will be reflected in the Closing Working Capital Amount;
provided further that the 2009 Bonuses (if any) payable to the individuals listed
on Section 5.01A(d)(i) of the Seller Disclosure Letter (“2009 Key Employee Bonuses”) will
be paid immediately prior to the Closing to the extent practicable and any such 2009 Key Employee
Bonus that remains unpaid as of the Closing will be reflected in the Closing Working Capital
Amount.

(ii) Following the Closing Date, Holdco and its subsidiaries shall pay amounts with
respect to the 2010 Bonus Plans that are payable to Transferred Employees and unpaid as of
the Closing Date at such times and to the extent that the Transferred Employees would
otherwise have become entitled to such amounts under the applicable 2010 Bonus Plans for
the 2010 fiscal year; provided, that the amount of such bonuses and the performance
targets that must be attained in order for such bonuses to be paid will be jointly
determined by Parent and MG in good faith.

(e) Collective Bargaining Agreements. Holdco or one of its subsidiaries shall assume
and agree to be bound by the collective bargaining agreements identified in Section 3.19(a) of the
Seller Disclosure Letter effective as of 12:01 a.m. on the Closing Date (including the obligation
to honor the terms and conditions thereof and any obligations thereunder requiring a successor to
recognize a particular labor union as authorized representative or authorized bargaining agent of
an employee group or for any other purpose). As of 12:01 a.m. on the Closing Date, Holdco and its
subsidiaries shall be the “employer” for purposes of each such collective bargaining agreements and
Holdco and its subsidiaries shall, subject to the next succeeding sentence, have sole
responsibility for all obligations, liabilities and commitments arising under the collective
bargaining agreements, and shall indemnify and hold harmless the Sellers and their affiliates with
respect to the collective bargaining agreements. Except as specifically provided in this
Article VA and except for benefits accrued and vested as of the Closing under any Seller Benefit
Plan that is not an Assumed Benefit Plan, following 12:01 a.m. on the Closing Date, any employee
benefit that is required pursuant to any collective bargaining agreement to be provided to any
Transferred Employee pursuant to a Seller Benefit Plan shall instead be provided pursuant to an
employee benefit plan maintained by Holdco or one of its subsidiaries.

(f) Assumption of Assumed Benefit Plans. From and after the Closing Date, Holdco
shall, or shall cause its subsidiaries to, assume and honor the Assumed Benefit Plans identified in
Section 5.01A(f) of the Seller Disclosure Letter or otherwise expressly assumed under this
Article VA, as in effect as of the Closing Date and all obligations, liabilities and commitments
thereunder, regardless of whether such

 

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obligations, liabilities or commitments arise before, on or after the Closing Date. Without
limiting the generality of the foregoing, MG and Holdco acknowledge and agree that such assumption
includes liabilities and obligations under the terms of the applicable Assumed Benefit Plan with
respect to each individual who is, as of the Closing, an Employee on Disability Leave, without
regard to whether such individual becomes a Transferred Employee. Holdco shall indemnify and hold
harmless Parent, the Sellers and their affiliates from and against any and all costs, damages,
losses, expenses or other liabilities arising out of or related to the Assumed Benefit Plans (other
than costs, damages, losses, expenses or other liabilities arising pursuant to Article VIII
hereunder). For the avoidance of doubt, in no event shall Holdco and its subsidiaries assume any
liabilities or obligations with respect to any Multiemployer Plan or any plan, arrangement or
policy maintained by Parent, the Sellers and their respective affiliates for the benefit of current
or former Employees and mandated by Applicable Law, and Parent, the Sellers and their affiliates
shall indemnify and hold harmless MG, Holdco and their respective affiliates from and against any
such liability or obligation. Except as otherwise specifically provided in this Agreement, each
Transferred Employee shall, effective as of the applicable Transfer Time, cease to accrue any
additional benefits in any Seller Benefit Plan that is not an Assumed Benefit Plan. Except as
specifically provided in this Article VA, all Sellers and their affiliates shall retain all
obligations, liabilities and commitments with respect to the Seller Benefit Plans (including,
without limitation, all Seller Equity Plans) and all other employment and employee compensation and
benefit plans, policies, agreements and arrangements of the Sellers and their affiliates, in each
case, other than the Assumed Benefit Plans. Parent, the Sellers and their affiliates shall
indemnify and hold harmless MG, Holdco and their respective affiliates from and against any and all
costs, damages, losses, expenses or other liabilities arising out of or related to a Seller Benefit
Plan that is not an Assumed Benefit Plan.

(g) Certain Welfare Benefit Plan Matters. (i) Without limiting the generality of
Section 5.01A(f), each Transferred Employee shall cease participation in the employee welfare
benefit plans of the Sellers and their affiliates that are not Assumed Benefit Plans effective as
of the applicable Transfer Time. Without limiting the generality of Section 5.01A(b), no later
than the Closing Date, Holdco shall, or shall cause its subsidiaries to, have in effect welfare
benefit plans that provide an appropriate level (as determined by Holdco and sufficient to satisfy
any applicable collective bargaining agreement assumed by Holdco pursuant to this Agreement or as
required by Applicable Law) of life insurance, health care, dental care, accidental death and
dismemberment insurance, disability and other group welfare benefits (the “Holdco Welfare
Plans”) for Transferred Employees (and their eligible dependents). Holdco shall, or shall use
its reasonable best efforts to cause its third party insurance providers to, (A) waive or deem
satisfied all limitations as to preexisting conditions, exclusions and waiting periods and
actively-at-work requirements with respect to participation and coverage requirements applicable to
the Transferred Employees (and their eligible dependents) under the Holdco Welfare Plans to the
extent waived or satisfied under the applicable corresponding Seller Benefit Plans immediately
prior to the applicable Transfer Time and (B) provide each Transferred Employee and his or her
eligible dependents with credit under Holdco Welfare Plans for any co-payments and deductibles paid
under corresponding Seller Benefit Plans prior to the applicable Transfer Time in the

 

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calendar year in which the applicable Transfer Time occurs for purposes of satisfying any
applicable deductible or out-of-pocket requirements under any Holdco Welfare Plans in which the
Transferred Employee participates.

(ii) Except as otherwise required under Applicable Law and notwithstanding any other
provision of this Agreement to the contrary, Sellers and their affiliates shall be
responsible, in accordance with the applicable welfare plan in effect prior to the Closing
Date, for all reimbursement claims (such as medical and dental claims) for expenses
incurred, and for all non-reimbursement claims (such as life insurance claims) incurred, by
a Transferred Employee (or, if applicable, such Transferred Employee’s eligible dependents)
under such plans prior to such Transferred Employee’s Transfer Time, except that Holdco and
its subsidiaries shall be responsible for such claims to the extent such claims relate to
an Assumed Benefit Plan. Except as otherwise required under Applicable Law, Holdco and its
subsidiaries shall be responsible in accordance with the applicable Holdco Welfare Plans
for all reimbursement claims (such as medical and dental claims) for expenses incurred, and
for all non-reimbursement claims (such as life insurance claims) incurred by a Transferred
Employee (or, if applicable, such Transferred Employee’s eligible dependents), from and
after such Transferred Employee’s Transfer Time. Except as otherwise provided under
Applicable Law, for purposes of this Section 5.01A(g)(ii), a claim shall be deemed to be
incurred as follows: (1) life, accidental death and dismemberment and business travel
accident insurance benefits, upon the death, accident or illness giving rise to such
benefits and (2) health, dental and prescription drug benefits (including in respect of any
hospital confinement), upon provision of the related services, materials or supplies.

(iii) The Sellers and their affiliates shall be responsible for all claims for
workers’ compensation benefits that are incurred prior to the Closing Date by Transferred
Employees that are payable under the terms and conditions of the Sellers and their
affiliates workers’ compensation programs (“Workers Comp Claims”). Holdco and its
subsidiaries shall be responsible for all claims for workers’ compensation benefits that
are incurred from and after the Closing Date by Transferred Employees. A claim for
workers’ compensation benefits shall be deemed to be incurred when the event giving rise to
the claim occurs (a “Workers’ Compensation Event”). Subject to the first sentence
of this Section 5.01A(g)(iii), if a Workers’ Compensation Event occurs over a period both
preceding and following the Closing Date, the claim shall be the joint responsibility and
liability of Sellers and Holdco and shall be equitably apportioned between Sellers and
Holdco based upon the relative periods of time that the Workers’ Compensation Event
transpired preceding and following the Closing Date.

(h) Accrued Vacation. Holdco and its subsidiaries shall assume and honor all
vacation days accrued but not yet taken by Transferred Employees as of the Closing Date (it being
understood that Holdco and its subsidiaries may, to the extent permitted under Applicable Law,
deduct from the number of vacation days made

 

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available to any Transferred Employee under the vacation policies of Holdco and its
subsidiaries the number of days of vacation taken prior to the applicable Transfer Time by such
Transferred Employee in the applicable year); provided that (i) to the extent required by
Applicable Law, the Sellers shall cause accrued vacation days to be settled in cash on the Closing
Date and Holdco and its subsidiaries shall have no further obligations with respect thereto and
(ii) any remaining accrued vacation days shall be reflected in the Closing Working Capital Amount.

(i) Release of Restrictions. The Sellers and their affiliates shall release, or
cause to be released, each Transferred Employee, effective as of the applicable Transfer Time, from
any contract or agreement or covenant, provision or any other obligation or restriction contained
in a contract or agreement that limits or restricts such Transferred Employee from being employed
by or providing services to Holdco or its affiliates, other than restrictions and limitations
relating to the use of confidential information that is not used in or otherwise relevant to the
Businesses or any other business or operations conducted by Holdco or its affiliates.

SECTION 5.02A. Special U.S. Employment Tax Provisions. Holdco and its affiliates and
the Sellers and their affiliates hereby agree to follow the alternate procedure for United States
employment tax withholding as provided in Section 5 of Rev. Proc. 2004-53, I.R.B. 2004-35.
Accordingly, the Sellers and their affiliates shall have no United States employment tax reporting
responsibilities, and Holdco and its affiliates shall have full United States employment tax
reporting responsibilities, for Transferred Employees following the close of business on the
Closing Date. For purposes of this Section 5.02A, references to “Employees” and “Transferred
Employees” shall mean Employees or Transferred Employees, as the case may be, who, immediately
prior to the Closing Date, are primarily based in the United States (including Puerto Rico).

SECTION 5.03A. Special Non-U.S. Provisions. Notwithstanding the provisions of
Section 5.01A, references to “Transferred Employees” in this Section 5.03A shall refer to
Transferred Employees who, immediately prior to the Closing Date, are primarily based outside the
United States.

(a) Continuation of Compensation and Benefits. Notwithstanding Section 5.01A or any
other provision of this Agreement, in the event that the Applicable Laws of any country or any
applicable works council agreement or collective bargaining agreement require Holdco or its
subsidiaries (i) to maintain the same Terms and Conditions of Employment (as defined below) that
relate to any Transferred Employee following the applicable Transfer Time or (ii) to continue or
cause to be continued any employment contract of any Transferred Employee, in the case of clauses
(i) and (ii), Holdco shall maintain, or cause to be maintained, the same Terms and Conditions of
Employment that relate to such Transferred Employee or shall continue, or cause to be continued,
such Transferred Employee’s employment contract for the period required under Applicable Law.

(b) For purposes of this Section 5.03A, “Terms and Conditions of Employment” shall
mean the rights of Transferred Employees according to their

 

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individual terms and conditions of employment with the Sellers and their affiliates
immediately prior to the applicable Transfer Time and, where applicable, under collective
agreements, including any collective bargaining, company or shop agreements and any arrangements
based on works customs and unilateral undertakings, if and to the extent they provide to a
Transferred Employee direct and enforceable causes of action against the employer.

SECTION 5.04A. Administration, Third Party Beneficiaries, etc.
(a) Following the date of this Agreement, the Sellers and Holdco shall reasonably cooperate
in all matters reasonably necessary to effect the transactions contemplated by this Article VA,
including (i) exchanging information and data relating to workers’ compensation, employee benefits
and employee benefit plan coverages (except to the extent prohibited by Applicable Law),
(ii) obtaining any governmental approvals or the approval of unions, staff associations or any
other body representing employees that is recognized by the Sellers and their affiliates, (iii) in
the case of an Assumed Foreign Benefit Plan, negotiating an asset transfer agreement and (iv) in
the case of an Assumed Benefit Plan that is not sponsored by a Conveyed Subsidiary immediately
prior to the Closing Date, assumption by Holdco and its subsidiaries of sponsorship of such Assumed
Benefit Plan, in each case to the extent required hereunder.

(b) From and after the date hereof and prior to the Closing Date, the Sellers and their
affiliates shall provide Holdco with reasonable access to Employees (including permitting Holdco to
meet with or make presentations to Employees in groups) for purposes of communicating with such
Employees regarding compensation and benefits to be provided by Holdco and its subsidiaries to such
Employees (and their eligible dependents and beneficiaries) from and after the Closing Date, and
permitting Transferred Employees to enroll in post-Closing benefit plans; provided that
(i) Sellers shall be permitted to be present for each meeting between Holdco and any Employee that
occurs prior to the Closing Date, (ii) Holdco shall provide Sellers with reasonable notice in
advance of any such meeting and (iii) such access shall occur at times that are reasonably
acceptable to the Sellers. Sellers shall, if so requested by Holdco, encourage Employees to attend
any such meetings.

(c) Notwithstanding the foregoing, no provision of this Article VA, whether express or
implied, shall (i) constitute or create an employment agreement with any Employee or Transferred
Employee, (ii) be treated as an amendment or other modification of any Seller Benefit Plan or any
benefit plan or arrangement of Holdco and its affiliates, or (iii) limit the right of the Sellers,
Holdco or any of their respective affiliates to amend, terminate or otherwise modify any Seller
Benefit Plan or any benefit plan or arrangement of Holdco and its affiliates following the Closing
Date.

(d) Parent, Sellers, MG and Holdco acknowledge and agree that all provisions contained in
this Article VA with respect to current or former Employees, Transferred Employees are included for
the sole benefit of Parent, Sellers, MG, Holdco and their respective affiliates, and that nothing
in this Article VA, whether express or implied, shall create any third-party beneficiary or other
rights (i) in any other Person, including, without limitation, any current or former Employee or
Transferred Employee,

 

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any participant in any existing benefit plan or arrangement, or any dependent or beneficiary
thereof, or (ii) to continued employment with Parent, Sellers, MG, Holdco and their respective
affiliates.

ARTICLE VI

Conditions Precedent

SECTION 6.01. Conditions to Each Party’s Obligation. The obligations of the parties
to effect the Closing are subject to the satisfaction (or waiver, if permitted by Applicable Law)
on or prior to the Closing of the following conditions:

(a) Competition Laws. The Bundeskartellamt taking a clearance decision or
being deemed by passage of time to have taken a clearance decision with respect to the
Acquisition and the other transactions contemplated hereby.

(b) No Injunctions or Restraints. No Applicable Law, Judgment or other legal
restraint or prohibition, whether preliminary, temporary or permanent (each, a
“Restraint”), shall be in effect that prevents the consummation of the Acquisition
and the other transactions contemplated by this Agreement or the Ancillary Agreements.

SECTION 6.02. Conditions to Obligation of Holdco. The obligation of Holdco to effect
the Closing is subject to the satisfaction (or waiver by Holdco, if permitted by Applicable Law) on
or prior to the Closing Date of the following conditions:

(a) Representations and Warranties. (i) The representations and warranties
of Parent and the Sellers in this Agreement that are qualified as to materiality or Seller
Material Adverse Effect shall be true and correct, and those not so qualified shall be true
and correct in all material respects, as of the date hereof, except to the extent such
representations and warranties expressly relate to an earlier date (in which case, as of
such earlier date);

(ii) the representations and warranties of Parent and the Sellers set forth
in Sections 3.02, 3.03(i) and 3.05 and in Section 3.07(e) that are qualified as to
materiality shall be true and correct, and those not so qualified shall be true and
correct in all material respects, as of the Closing Date as though made on the
Closing Date, except to the extent such representations and warranties expressly
relate to an earlier date (in which case, as of such earlier date); and

(iii) the representations and warranties of Parent and the Sellers set forth
in this Agreement (other than the representations and warranties of Parent and
Sellers set forth in Sections 3.02, 3.03(i) and 3.05 and in Section 3.07(e)) shall
be true and correct as of the Closing Date as though made on the Closing Date,
except to the extent such representations and

 

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warranties expressly relate to an earlier date (in which case, as of such
earlier date), and except to the extent that the facts or matters causing such
representations and warranties to fail to be true and correct (without giving
effect to any qualifier as to materiality or Seller Material Adverse Effect set
forth therein), individually or in the aggregate, have not had a Seller Material
Adverse Effect which has not been cured as of the Closing Date and would not
reasonably be expected to have a Seller Material Adverse Effect.

MG and Holdco shall have received a certificate signed by an authorized officer of Parent
and an authorized officer of UIM, in each case with respect to itself and its subsidiaries
that are parties hereto, to the effect of clauses (i) through (iii) of this Section
6.02(a).

(b) Performance of Obligations of Parent and Sellers. Each of Parent and
each Seller shall have performed or complied in all material respects with all obligations
and covenants required by this Agreement to be performed or complied with by Parent or such
Seller, as applicable, by the time of the Closing, and MG and Holdco shall have received a
certificate signed by an authorized officer of Parent and an authorized officer of each
Seller to such effect.

(c) Absence of Proceedings. There shall not be pending or threatened any
Proceeding by any Governmental Entity (i) challenging or seeking to restrain, limit or
prohibit the Acquisition or any other transaction contemplated by this Agreement or the
Ancillary Agreements or seeking to obtain from MG, Holdco or any of their subsidiaries in
connection with the Acquisition any material damages or (ii) seeking to prohibit or limit
the ownership or operation by MG, Holdco or any of their subsidiaries of any material
portion of the Businesses, or to compel MG, Holdco or any of their subsidiaries to dispose
of or hold separate any material portion of the Businesses or any of the other businesses,
assets of properties of MG, Holdco or any of their subsidiaries. No Restraint having any
of the effects described in clause (i) or (ii) of the immediately preceding sentence shall
be in effect.

(d) Third Party Consents. Holdco shall have received the written consents
set forth in Section 6.02(d) of the Seller Disclosure Letter.

(e) Employees. (i) At least 80% of the employees of the Businesses as of the
date of this Agreement (including a sufficient number of employees involved in each
functional area, including marketing and IT, and with the levels of seniority and
expertise, necessary to operate the Businesses) and (ii) (A) each of the individuals set
forth in Section 6.02(e)(ii)(A) of the Seller Disclosure Letter and (B) at least five of
the individuals set forth in Section 6.02(e)(ii)(B) of the Seller Disclosure Letter, in
each case, shall have executed and delivered to Holdco acceptances of offers of employment
by Holdco and its subsidiaries, and shall not have terminated or given notice to terminate
employment with Parent,

 

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the Sellers, MG, Holdco or any of their respective subsidiaries prior to the Closing.

(f) Gaming Licenses. (i) The Letter of Intent issued by the LGA shall have
been replaced by a Class 3 Remote Gaming License and the written approval of the LGA of the
change in beneficial ownership resulting from the Acquisition shall have been obtained; and

(ii) MG, Holdco and their subsidiaries shall have obtained any and all Permits from
the KGC necessary to permit the operation and conduct by MG, Holdco and Holdco’s
subsidiaries of online poker and casino games in Kahnawake, including (A) client provider
authorizations, (B) key person licenses, (C) approvals of business entities associated with
or related to MG, Holdco and Holdco’s subsidiaries, (D) approvals of individuals associated
with or related to MG, Holdco and Holdco’s subsidiaries, (E) approvals of any other
individuals or entities the KGC deems necessary or desirable to the KGC’s approval of the
operation or conduct by MG, Holdco and Holdco’s subsidiaries of online poker and casino
games in Kahnawake, (F) approvals of any control systems to be used in the operation or
conduct of such games in Kahnawake, such control systems being understood to include all
aspects of the system of internal controls for the conduct of online poker and casino games
as set forth in the Regulations Concerning Interactive Gaming enacted by the KGC or in any
amendment, successor or replacement of such regulations, and (G) design, implementation and
approvals of any continuous compliance program;

provided that, in each case, such Permits are granted on terms and conditions (x)
that do not impose limitations or restrictions of any kind (other than limitations and
restrictions that are generally applicable to all other holders of such Permits) on the
ownership or operation of the businesses or subsidiaries of MG or any of its affiliates
(other than Holdco and its subsidiaries) or (y) that would not reasonably be expected to
have a material impact on the Business.

(g) Unique Active Accounts. The number of Unique Active Poker Accounts of the
Businesses as of the Closing Date and the number of Unique Active Casino Accounts of the
Businesses as of the Closing Date in each case shall be not less than the amount set forth
for such term in Section 6.02(g) of the Seller Disclosure Letter, and MG and Holdco shall
have received a certificate signed by an authorized officer of Parent and an authorized
officer of UIM to such effect.

SECTION 6.03. Conditions to Obligations of Sellers. The obligation of the Sellers to
effect the Closing is subject to the satisfaction (or waiver by the Sellers, if permitted by
Applicable Law) on or prior to the Closing Date of the following conditions:

(a) Representations and Warranties. (i) The representations and warranties
of MG in this Agreement that are qualified as to materiality or Purchaser Material Adverse
Effect shall be true and correct, and those not so

 

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qualified shall be true and correct in all material respects, as of the date hereof,
except to the extent such representations and warranties expressly relate to an earlier
date (in which case, as of such earlier date);

(ii) the representations and warranties of MG set forth in Sections 4.02 and
4.03(i) shall be true and correct in all material respects as of the Closing Date
as though made on the Closing Date; and

(iii) the representations and warranties of MG set forth in this Agreement
(other than the representations and warranties of MG set forth in Sections 4.02 and
4.03(i)) shall be true and correct as of the Closing Date as though made on the
Closing Date, except to the extent such representations and warranties expressly
relate to an earlier date (in which case, as of such earlier date), and except to
the extent that the facts or matters causing such representations and warranties to
fail to be true and correct (without giving effect to any qualifier as to
materiality or Purchaser Material Adverse Effect set forth therein), individually
or in the aggregate, have not had a Purchaser Material Adverse Effect which has not
been cured as of the Closing Date and would not reasonably be expected to have a
Purchaser Material Adverse Effect.

The Sellers shall have received a certificate signed by an authorized officer of MG to the
effect of clauses (i) through (iii) of this Section 6.03(a).

(b) Performance of Obligations of MG and Holdco. MG and Holdco shall have
performed or complied in all material respects with all obligations and covenants required
by this Agreement to be performed or complied with by MG and Holdco by the time of the
Closing, and the Sellers shall have received a certificate signed by an authorized officer
of MG and an authorized officer of Holdco to such effect.

(c) Absence of Proceedings. There shall not be pending or threatened any
Proceeding by any Governmental Entity challenging or seeking to restrain, limit or prohibit
the Acquisition or any other transaction contemplated by this Agreement or the Ancillary
Agreements or seeking to obtain from Parent, Sellers, Holdco or any of their subsidiaries
in connection with the Acquisition any material damages.

(d) Kahnawake Gaming License. MG, Holdco and their subsidiaries shall have
obtained any and all Permits from the KGC necessary to permit the operation and conduct by
MG, Holdco and Holdco’s subsidiaries of online poker and casino games in Kahnawake,
including (A) client provider authorizations, (B) key person licenses, (C) approvals of
business entities associated with or related to MG, Holdco and Holdco’s subsidiaries, (D)
approvals of individuals associated with or related to MG, Holdco and Holdco’s
subsidiaries, (E) approvals of any other individuals or entities the KGC deems necessary or
desirable to the KGC’s approval of the operation or conduct by MG, Holdco and Holdco’s
subsidiaries of

 

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online poker and casino games in Kahnawake, (F) approvals of any control systems to be
used in the operation or conduct of such games in Kahnawake, such control systems being
understood to include all aspects of the system of internal controls for the conduct of
online poker and casino games as set forth in the Regulations Concerning Interactive Gaming
enacted by the KGC or in any amendment, successor or replacement of such regulations, and
(G) design, implementation and approvals of any continuous compliance program.

(e) SBM Guarantee. SBM and SBM Parent shall have executed and delivered the
SBM Guarantee, which shall be in full force and effect.

SECTION 6.04. Frustration of Closing Conditions. None of MG, Holdco, Parent or the
Sellers may rely on the failure of any condition set forth in this Article VI to be satisfied if
such failure was caused by such party’s failure to act in good faith or to take the actions
required by Section 5.06 to be taken in order to cause the Closing to occur.

ARTICLE VII

Termination, Amendment and Waiver

SECTION 7.01. Termination. (a)  Notwithstanding anything to the contrary in this
Agreement, this Agreement may be terminated and the Acquisition and the other transactions
contemplated by this Agreement abandoned at any time prior to the Closing:

(i) by mutual written consent of Parent, UIM, MG and Holdco;

(ii) by either MG or Holdco, on one hand, or UIM and Parent, on the other hand, if:

(A) the Closing shall not have occurred on or before the Outside Date;
provided, however, that the right to terminate this Agreement
pursuant to this Section 7.01(a)(ii)(A) shall not be available to any party if the
failure of the Closing to occur on or before the Outside Date is due to a breach by
such party of its obligations under this Agreement or the failure of any of such
party’s representations and warranties in this Agreement to be true; or

(B) if any Restraint having the effects set forth in Section 6.01(b) shall be
in effect and shall have become final and nonappealable;

(iii) by Parent and the Sellers, if MG or Holdco breaches or fails to perform any of
its covenants or agreements contained in this Agreement, or if any of the representations
or warranties of MG contained herein fails to be true and

 

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correct, which breach or failure (A) would give rise to the failure of a condition set
forth in Section 6.01 or Section 6.03 and (B) is not reasonably capable of being cured by
MG within 30 days after MG’s receipt of written notice thereof from Parent and the Sellers
(provided that MG and Holdco are not entitled to terminate this Agreement under
Section 7.01(a)(iv));

(iv) by MG and Holdco if either Parent or any Seller breaches or fails to perform any
of its covenants or agreements contained in this Agreement, or if any of the
representations or warranties of Parent or any Seller contained herein fails to be true and
correct, which breach or failure (A) would give rise to the failure of a condition set
forth in Section 6.01 or Section 6.02 and (B) is not reasonably capable of being cured by
Parent or such Seller, as the case may be, within 30 days after Parent or such Seller’s
receipt of written notice thereof from MG and Holdco (provided that Parent and the
Sellers are not entitled to terminate this Agreement under Section 7.01(a)(iii));

(v) by MG or Holdco if any Restraint having any of the effects set forth in
Section 6.02(c) shall be in effect and shall have become final and nonappealable;

(vi) by UIM or Parent if any Restraint having any of the effects set forth in
Section 6.03(c) shall be in effect and shall have become final and nonappealable; or

(vii) by MG or Holdco if a Parent Change in Control shall have occurred.

(b) In the event of termination by Parent and the Sellers or MG and Holdco pursuant to this
Section 7.01, written notice thereof shall forthwith be given to the other parties and the
transactions contemplated by this Agreement shall be terminated, without further action by any
party. If the transactions contemplated by this Agreement are terminated as provided herein:

(i) MG and Holdco shall return all documents and other material received from Parent
or Sellers relating to the transactions contemplated hereby, whether so obtained before or
after the execution hereof, to Sellers; and

(ii) all confidential information received by MG and Holdco with respect to the
Businesses shall be treated in accordance with the Confidentiality Agreement, which shall
remain in full force and effect notwithstanding the termination of this Agreement.

SECTION 7.02. Termination Fee. (a) Parent shall pay to MG a fee of $5,000,000 (the
“Termination Fee”) if:

(i) MG or Holdco terminates this Agreement pursuant to Section 7.01(a)(vii), or

(ii) (A) prior to the termination of this Agreement, any person makes a Parent
Acquisition Proposal, (B) this Agreement is terminated pursuant to

 

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Section 7.01(a)(iv) in connection with the failure by Parent or any Seller to perform
any of its covenants or agreements contained in this Agreement and (C) within 6 months of
such termination any Parent Change in Control is consummated.

Any Termination Fee due under this Section 7.02(a) shall be paid by wire transfer of same-day funds
(x) in the case of clause (i) above, on the business day immediately following the date of
termination of this Agreement and (y) in the case of clause (ii) above, on the date of the
occurrence of the events referred to in clause (ii)(C) above.

(b) The parties acknowledge and agree that the agreements contained in Section 7.02(a) are an
integral part of the transactions contemplated by this Agreement, and that, without these
agreements, MG and Holdco would not enter into this Agreement. Accordingly, if Parent fails
promptly to pay the amount due pursuant to Section 7.02(a), and, in order to obtain such payment,
MG commences a suit, action or other proceeding that results in a Judgment in its favor for the
Termination Fee, Parent shall pay to MG its costs and expenses (including attorneys’ fees and
expenses) in connection with such suit, action or other proceeding, together with interest on the
amount of the Termination Fee from the date such payment was required to be made until the date of
payment at the prime rate of Citibank, N.A., in effect on the date such payment was required to be
made.

SECTION 7.03. Effect of Termination. If this Agreement is terminated and the
transactions contemplated hereby are abandoned as described in Section 7.01, this Agreement shall
become null and void and of no further force and effect, except for the provisions of
(i) Section 5.05 (relating to confidentiality), (ii) Section 5.07 (relating to certain expenses),
(iii) Sections 3.22 and 4.06 (relating to finder’s fees and broker’s fees), (iv) Section 7.01(b),
Section 7.02 and this Section 7.03 and (v) Section 5.09 (relating to publicity). Nothing in this
Section 7.03 shall be deemed to release any party from any liability for any breach by such party
of the terms and provisions of this Agreement or to impair the right of any party to compel
specific performance by any other party of its obligations under this Agreement.

ARTICLE VIII

Indemnification

SECTION 8.01. Indemnification by Parent and the Sellers. (a)  Parent and the
Sellers, jointly and severally, shall indemnify Holdco and its affiliates and each of their
respective Representatives and stockholders (each, a “Purchaser Indemnified Party”)
against, and hold them harmless from, any Losses, as incurred (payable promptly upon written
request, but subject to an undertaking to repay any Losses if it is determined by a court of
competent jurisdiction that such Purchaser Indemnified Party is not entitled to such
indemnification), arising from, in connection with or otherwise with respect to:

(i) any inaccuracy in, or breach of, any representation or warranty of Parent or any
Seller contained in this Agreement, any Ancillary Agreement or any

 

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document delivered in connection herewith or therewith other than with respect to the
representations and warranties contained in Section 3.14 (it being agreed that for purposes
of determining the existence of any such inaccuracy or breach or the amount of any Loss
with respect thereto, all such representations and warranties that are qualified as to
materiality or Seller Material Adverse Effect shall be deemed to be not so qualified);

(ii) any failure by Parent or any Seller to perform any covenant, agreement,
obligation or undertaking contained in this Agreement (other than Article XI, with respect
to which all remedies at law or equity shall be available, including a direct suit against
Parent or any Holdco Interest Holder for damages for breach of contract) or in any
Ancillary Agreement;

(iii) (A) any Excluded Liability and (B) any liability, obligation or commitment
arising out of any actual or alleged violation within five years prior to the Closing Time
by Parent, any Seller or any Conveyed Subsidiary of any U.S. federal, state or local
Applicable Law relating to the regulation of gambling or gaming;

(iv) any and all actions, suits, proceedings, demands, assessments, judgments, damages
(but not including consequential damages, punitive damages, lost profits or other similar
damages unless such damages are (x) in the case of lost profits, directly related to the
matter giving rise to Losses for which indemnification is sought and not speculative or
contingent in character, (y) in the case of any damages in the form of diminution in value,
directly related to the matter giving rise to Losses for which indemnification is sought
hereunder or (z) in the case of any of the foregoing, damages recovered by third parties in
connection with Losses indemnified hereunder), awards, costs and expenses (including
third-party fees and expenses) incident to any of the foregoing or incurred in connection
with the enforcement of the rights of any such indemnified party with respect to the
foregoing; and

(v) all fees and expenses incurred after the Closing in connection with obtaining the
Italian License.

(b) Notwithstanding any other provision of this Article VIII, Parent and the Sellers shall
not have any liability:

(i) under clause (i) and, as it relates to clause (i), clause (iv) of Section 8.01(a)
for any Loss unless (A) the amount of such Loss exceeds $50,000, in which case the entire
amount of such Loss shall be included for purposes of computing the Losses that are
indemnifiable hereunder and/or applicable against the Deductible Amount (defined below),
and (B) the aggregate amount of such Losses for which indemnification would otherwise be
available exceeds $3,000,000 (the “Deductible Amount”), in which case the entire
amount of such Losses shall be indemnifiable hereunder; provided, however,
that the limitations set forth in this clause (i) shall not apply to any claim for
indemnification to the

 

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extent arising out of an inaccuracy or breach of any representation or warranty
contained in Sections 3.01, 3.02 or 3.22 or Section 3.07(e) (to the extent, but only to the
extent, related to material Business Intellectual Property) (the “Seller Specified
Representations”) or to any Loss incurred due to fraud, intentional misrepresentation,
intentional misconduct or intentional concealment by or on behalf of Parent or any Seller;

(ii) under clause (i) and, as it relates to clause (i), clause (iv) of Section 8.01(a)
in excess of $35,000,000; provided, however, that the limitation set forth
in this clause (ii) shall not apply to any claim for indemnification to the extent arising
out of an inaccuracy or breach of any Seller Specified Representation or to any Loss
incurred due to fraud, intentional misrepresentation, intentional misconduct or intentional
concealment by or on behalf of Parent or Seller; or

(iii) under clause (v) of Section 8.01(a) for any fees and expenses in excess of
€500,000; it being further agreed that the amount of any Loss relating to VAT paid by
Holdco or its subsidiaries for which indemnification is provided under clause (v) of
Section 8.01(a) shall be net of any such VAT actually recovered by or refunded to the
indemnified party.

SECTION 8.02. Indemnification by MG and Holdco. (a)  MG shall indemnify Parent, the
Sellers, their affiliates and each of their respective Representatives and stockholders against,
and agrees to hold them harmless from, any Losses, as incurred (payable promptly upon written
request, but subject to an undertaking to repay any Losses if it is determined by a court of
competent jurisdiction that such indemnified party is not entitled to such indemnification), for or
on account of or arising from or in connection with or otherwise with respect to:

(i) any inaccuracy in, or breach of, any representation or warranty of MG contained in
this Agreement, any Ancillary Agreement or any document delivered in connection herewith or
therewith (it being agreed that for purposes of determining the existence of any such
inaccuracy or breach or the amount of any Loss with respect thereto, all such
representations and warranties that are qualified as to materiality or Purchaser Material
Adverse Effect shall be deemed to be not so qualified);

(ii) any failure by MG or Holdco to perform any covenant, agreement, obligation or
undertaking contained in this Agreement (other than Section 2.05 or Article XI, with
respect to which all remedies at law or equity shall be available, including a direct suit
against MG for damages for breach of contract) or in any Ancillary Agreement; and

(iii) any and all actions, suits, proceedings, demands, assessments, judgments,
damages (but not including consequential damages, punitive damages, lost profits or other
similar damages unless such damages are (x) in the case of lost profits, directly related
to the matter giving rise to Losses for which

 

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indemnification is sought and not speculative or contingent in character, (y) in the
case of any damages in the form of diminution in value, directly related to the matter
giving rise to Losses for which indemnification is sought hereunder or (z) in the case of
any of the foregoing, damages recovered by third parties in connection with Losses
indemnified hereunder), awards, costs and expenses (including third-party fees and
expenses) incident to any of the foregoing or incurred in connection with the enforcement
of the rights of any such indemnified party with respect to the foregoing.

(b) Holdco shall indemnify Parent, the Sellers, their affiliates and each of their respective
Representatives and stockholders against, and agrees to hold them harmless from, any Losses, as
incurred (payable promptly upon written request), for or on account of or arising from or in
connection with or otherwise with respect to:

(i) any Assumed Liability;

(ii) any and all actions, suits, proceedings, demands, assessments, judgments, damages
(but not including consequential damages, punitive damages, lost profits or other similar
damages unless such damages are (x) in the case of lost profits, directly related to the
matter giving rise to Losses for which indemnification is sought and not speculative or
contingent in character, (y) in the case of any damages in the form of diminution in value,
directly related to the matter giving rise to Losses for which indemnification is sought
hereunder or (z) in the case of any of the foregoing, damages recovered by third parties in
connection with Losses indemnified hereunder), awards, costs and expenses (including
third-party fees and expenses) incident to any of the foregoing or incurred in connection
with the enforcement of the rights of any such indemnified party with respect to the
foregoing; and

(iii) the amount of any Loss relating to VAT paid by Holdco or its subsidiaries for
which an indemnification payment has been made under clause (v) of Section 8.01(a), to the
extent that any such VAT is actually recovered by or refunded to the Purchaser Indemnified
Party by whom such VAT payment was made.

(c) Notwithstanding any other provision of this Article VIII, MG shall not have any liability
under clause (i) and, as it relates to clause (i), clause (iii) of Section 8.02(a) for any Loss
unless the amount of such Loss exceeds $50,000; provided, however, that the
limitation set forth in this Section 8.02(c) shall not apply to any claim for indemnification to
the extent arising out of an inaccuracy or breach of any representation or warranty contained in
Sections 4.01, 4.02, 4.03 or 4.04 (the “Purchaser Specified Representations”) or to any
Loss incurred due to fraud, intentional misrepresentation, intentional misconduct or intentional
concealment by or on behalf of MG.

SECTION 8.03. Termination of Indemnification. Except with respect to any fraud,
intentional misrepresentation, intentional misconduct or intentional

 

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concealment by or on behalf of any party, such party’s obligations to indemnify and hold
harmless any other party pursuant to Section 8.01(a)(i) and, as it relates thereto,
Section 8.01(a)(iv) (other than with respect to the Seller Specified Representations) or 8.02(a)(i)
and, as it relates thereto, Section 8.02(a)(iii) (other than with respect to the Purchaser
Specified Representations) shall terminate on December 31, 2011; provided, however,
that such obligations to indemnify and hold harmless shall not terminate with respect to any item
as to which the applicable indemnified party shall have, before the expiration of such period,
previously made a claim by delivering a notice of such claim pursuant to Section 8.04 to the
applicable indemnifying party. Any other obligation to indemnify and hold harmless any party shall
terminate upon the expiration of the relevant statute of limitations, taking into account
extensions thereof; provided, however, that such obligations shall not terminate
with respect to any item as to which the applicable indemnified party has, as of the expiration of
the relevant period, taking into account extensions thereof, a pending suit against the applicable
indemnifying party.

SECTION 8.04. Procedures. (a)  Third Party Claims. If a claim by a third
party is made against a party hereto or any of its affiliates (the “indemnified party”) in
respect of, arising out of or involving a matter for which the indemnified party is entitled to be
indemnified by another party hereto (the “indemnifying party”) pursuant to this
Article VIII (a “Third Party Claim”), such indemnified party must notify the indemnifying
party in writing of the Third Party Claim within 10 business days following receipt by such
indemnified party of written notice of the Third Party Claim; provided, however,
that failure to give such notification shall not affect the indemnification provided hereunder
except to the extent (and only to the extent) the indemnifying party shall have been actually and
materially prejudiced as a result of such failure. Thereafter, the indemnified party shall deliver
to the indemnifying party, promptly following the indemnified party’s receipt thereof, copies of
all notices and documents (including court papers) received by the indemnified party relating to
the Third Party Claim.

(b) Assumption. If a Third Party Claim is made against an indemnified party, the
indemnifying party shall be entitled to participate in the defense thereof and, if it so chooses,
to assume the defense thereof with counsel selected by the indemnifying party; provided,
however, that such counsel is not reasonably objected to by the indemnified party. Should
the indemnifying party so elect to assume the defense of a Third Party Claim, the indemnifying
party shall not be liable to the indemnified party for any legal expenses subsequently incurred by
the indemnified party in connection with the defense thereof. If the indemnifying party assumes
such defense, the indemnified party shall have the right to participate in the defense thereof and
to employ counsel, at its own expense, separate from the counsel employed by the indemnifying
party, it being understood that the indemnifying party shall control such defense. The
indemnifying party shall be liable for the reasonable fees and expenses of counsel employed by the
indemnified party for any period during which the indemnifying party has not assumed the defense
thereof. If the indemnifying party chooses to defend or prosecute a Third Party Claim, all the
indemnified parties shall cooperate in the defense or prosecution thereof. Such cooperation shall
include the retention and (upon the indemnifying party’s request) the provision to the
indemnifying party of records and information that are reasonably relevant to such Third Party
Claim, and making

 

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employees available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder. The indemnified party (A) shall agree to any
settlement, compromise or discharge of a Third Party Claim that the indemnifying party may
recommend and that by its terms obligates the indemnifying party to pay the full amount of the
liability in connection with such Third Party Claim, which releases the indemnified party
completely in connection with such Third Party Claim and that would not otherwise adversely affect
the indemnified party, and (B) shall not enter into any settlement, compromise or discharge of a
Third Party Claim without the prior written consent of the indemnifying party (which shall not be
unreasonably withheld, conditioned or delayed). Notwithstanding the foregoing, the indemnifying
party shall not be entitled to assume the defense of any Third Party Claim (and shall be liable
for the reasonable fees and expenses of counsel incurred by the indemnified party in defending
such Third Party Claim) if the Third Party Claim seeks an order, injunction or other equitable
relief or relief for other than money damages against the indemnified party that the indemnified
party reasonably determines, after conferring with its outside counsel, cannot be separated from
any related claim for money damages. In the case of any Third Party Claim referred to in the
immediately preceding sentence, if such equitable relief or other relief portion of such Third
Party Claim can be so separated from that for money damages, the indemnifying party shall be
entitled to assume the defense of the portion of such Third Party Claim relating to money damages.

(c) Other Claims. In the event any indemnified party should have a claim against any
indemnifying party under Section 8.01 or 8.02 that does not involve a Third Party Claim being
asserted against or sought to be collected from such indemnified party, the indemnified party shall
deliver notice of such claim with reasonable promptness to the indemnifying party. Subject to
Sections 8.03 and 8.05, the failure by any indemnified party so to notify the indemnifying party
shall not relieve the indemnifying party from any liability that it may have to such indemnified
party under Section 8.01 or 8.02, except to the extent that the indemnifying party has been
actually and materially prejudiced by such failure.

SECTION 8.05. Survival of Representations and Covenants. (a) The representations,
warranties, covenants and agreements contained in this Agreement, the Ancillary Agreements and in
any document delivered in connection herewith shall survive the Closing and remain in full force
and effect until the indemnification obligation therefor terminates in accordance with
Section 8.03.

(b) The obligations of Parent and the Sellers under Section 8.01 and the obligations of MG
under Section 8.02 shall not be affected by any knowledge by any indemnified party at or prior to
the Closing of any breach of representation or warranty, whether such knowledge came from Parent, a
Seller, MG or any other person, or any waiver of Section 6.02 or 6.03. Notwithstanding anything to
the contrary in this Agreement, no party hereto (such party, the “non-breaching party”)
shall be entitled to indemnification under this Article VIII with respect to any breach or
inaccuracy of any representation or warranty of any other party hereto (such other party, the
“breaching party”) if (i) the breaching party (and, if the breaching party is a Seller,
each of Parent and UIM) provides written notice to such non-breaching party at least five business
days

 

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prior to the Closing describing in detail such breach or inaccuracy, (ii) the breaching party
(and, if the breaching party is a Seller, each of Parent and UIM) simultaneously and irrevocably
informs such non-breaching party in writing that, because of such breach or inaccuracy such
non-breaching party is not required to consummate the transactions contemplated by this Agreement
pursuant to Article VI and (iii) the Closing occurs.

SECTION 8.06. Tax Treatment of Indemnification Payments. For all Tax purposes, the
parties agree to treat, to the extent permitted by Applicable Law, any indemnity payment under this
Agreement as an adjustment to the Purchase Price, which shall be allocated among the Sellers in a
manner to be agreed upon by MG, Parent and the Sellers.

SECTION 8.07. Tax Matters. Nothing in this Article VIII (except for Section 8.06)
shall be construed to apply to indemnities relating to, or impose liabilities with respect to,
Taxes, which are exclusively governed by Article IX.

ARTICLE IX

Tax Indemnification

SECTION 9.01. Tax Indemnification. (a) Parent and the Sellers, jointly and
severally, shall indemnify the Purchaser Indemnified Parties against, and hold them harmless from,
any Losses, payable promptly upon written request, arising from, in connection with or otherwise
with respect to:

(i) whether or not accrued, assessed or currently due and payable, Taxes imposed on or
with respect to any Conveyed Subsidiary for any Pre-Closing Tax Period; provided,
however, that any amount payable under this Section 9.01(a)(i) shall be reduced by
the amount of any decrease in the Taxes of such Conveyed Subsidiary attributable to any
realized net operating loss (or similar tax attribute) or credit relating to or arising
from the Pre-Closing Tax Period;

(ii) Taxes that are Excluded Liabilities pursuant to Section 1.03(b)(iii), including
any such liability to which such party is subject as a result of principles of transferee
or successor liability;

(iii) any breach of the covenant in Section 5.01(a)(xvi);

(iv) any withholding Taxes imposed on, or with respect to, payments made under this
Agreement (including any interest or penalties relating to such Taxes that are imposed on
MG and/or Holdco);

(v) any Restrictive Covenant Withholding Amount imposed on, or with respect to,
payments made under this Agreement; and

 

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(vi) any and all actions, suits, proceedings, demands, assessments, judgments,
damages, awards, costs and expenses (including third-party fees and expenses) incident to
any of the foregoing or incurred in connection with the enforcement of the rights of any
such indemnified party with respect to the foregoing.

(b) Holdco shall indemnify Parent, the Sellers and each of their respective Representatives
(if applicable) and stockholders against, and hold them harmless from, any Losses, as incurred
(payable promptly upon written request), arising from, in connection with or otherwise with
respect to:

(i) whether or not accrued, assessed or currently due and payable, Taxes imposed on or
with respect to any Conveyed Subsidiary for any Post-Closing Tax Period;

(ii) whether or not accrued, assessed or currently due and payable, Taxes with respect
to any Acquired Asset or the Businesses for any Post-Closing Tax Period; and

(iii) any and all actions, suits, proceedings, demands, assessments, judgments,
damages, awards, costs and expenses (including third-party fees and expenses) incident to
any of the foregoing or incurred in connection with the enforcement of the rights of any
such indemnified party with respect to the foregoing.

(c) In the case of any Taxes that are payable for any complete Tax period that includes but
does not end on the Closing Date (the “Straddle Tax Period”), to the extent permitted by
law or administrative practice, the taxable year of a Conveyed Subsidiary that includes the
Closing Date shall close on the Closing Date (inclusive of the Closing Date to the extent
permitted by such law or administrative practice), so long as doing so does not have any material
adverse impact on such Conveyed Subsidiary. In the case of any Tax that is payable for a Straddle
Tax Period that does not close on the Closing Date pursuant to the immediately preceding sentence,
the portions of such Tax that relate to the Pre-Closing Tax Period shall be deemed to be:

(i) in the case of any property Tax, the amount of such Tax for the Straddle Tax
Period multiplied by a fraction the numerator of which is the number of days in the
Straddle Tax Period on or prior to the Closing Date, and the denominator of which is the
number of all days in the entire Straddle Tax Period; and

(ii) in the case of any Tax (other than any property Tax), the amount that would be
payable if the relevant Tax period ended on the Closing Date.

SECTION 9.02. Termination of Indemnification. The obligations to indemnify and hold
harmless any party pursuant to Section 9.01, shall terminate 60 days after expiration of the
applicable statute of limitations with respect to the Tax liabilities in question (giving effect to
any waiver or extension thereof); provided, however, that such

 

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obligations to indemnify and hold harmless shall not terminate with respect to any item as to
which the person to be indemnified shall have, before the expiration of the applicable period,
previously made a specific claim by delivering to the party claimed to be providing the
indemnification a notice of such claim pursuant to Section 9.03, stating in reasonable detail the
basis of such claim.

SECTION 9.03. Procedures Relating to Indemnification of Tax Claims. (a) Each party
entitled to an indemnity payment pursuant to Section 9.01(a) or (c) (a “Tax Indemnified
Party”) agrees to give written notice to the indemnifying party (the “Tax Indemnitor”)
(including, in the case where Holdco or any of its affiliates is the Tax Indemnified Party, any
Conveyed Subsidiary) which involves the assertion of any claim, or the commencement of any audit,
suit, action or proceeding (collectively, a “Tax Claim”) in respect of which indemnity may
be sought (an “Indemnifiable Tax”) within 30 days of such receipt or such earlier time as
would allow the Tax Indemnitor to timely respond to such Tax Claim.

(b) The Tax Indemnitor shall, at its own expense, assume control of the defense of any Tax
Claim for any Indemnifiable Tax. If the Tax Indemnitor assumes control of such defense, the Tax
Indemnitor shall (i) notify the Tax Indemnified Party of significant developments with respect to
such Tax Claim and keep the Tax Indemnified Party reasonably informed, (ii) consult with the Tax
Indemnified Party with respect to any issue that reasonably could be expected to have an adverse
effect on the Tax Indemnified Party or any of its affiliates (including by giving rise to an
indemnity obligation of the Tax Indemnified Party or any of its affiliates) and (iii) give the Tax
Indemnified Party a copy of any Tax adjustment proposed in writing with respect to such Tax Claim
and copies of any other material correspondence with the relevant Taxing Authority with respect to
such Tax Claim. The Tax Indemnitor shall not pay or compromise any Tax liability asserted with
respect to any Tax Claim for any Indemnifiable Tax without the prior written consent of the Tax
Indemnified Party, which consent shall not be unreasonably withheld, delayed or conditioned.

(c) With respect to any Tax claim relating to Taxes for any Straddle Period, Holdco shall
control the defense of such Tax Claim; provided that Holdco shall (i) notify Parent and
the applicable Seller of significant developments with respect to such Tax Claim and keep Parent
and such Seller reasonably informed, (ii) consult with Parent and the applicable Seller with
respect to any issue that reasonably could be expected to have an adverse effect on Parent and the
applicable Seller or any of its affiliates (including by giving rise to an indemnity obligation of
the Seller or any of its affiliates) and (iii) give Parent and the applicable Seller a copy of any
Tax adjustment proposed in writing with respect to such Tax Claim and copies of any other material
correspondence with the relevant Taxing Authority with respect to such Tax Claim. Holdco shall
not pay or compromise any Tax liability asserted with respect to any Tax claim relating to Taxes
for any Straddle Period, without the prior written consent of Parent and the applicable Seller,
which consent shall not be unreasonably withheld, delayed or conditioned.

 

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(d) Without limiting the generality of Section 10.04, the Tax Indemnified Party shall give
the Tax Indemnitor such information with respect to any Tax Claim as the Tax Indemnitor may
reasonably request. In addition, if, and to the extent required, the Tax Indemnified Party shall
promptly execute and deliver, or cause to be executed and delivered by the relevant taxpayer,
reasonable powers of attorney or other documents authorizing the Tax Indemnitor to defend and
settle such Tax Claim in accordance with this Section 9.03.

ARTICLE X

Tax Matters

SECTION 10.01. Tax Returns; Tax Payments; Tax Refunds. (a) Each Seller shall
prepare and, to the extent permitted by law, file (or cause to be prepared and, to the extent
permitted by law, cause to be filed) all Tax Returns required to be filed by the Conveyed
Subsidiaries sold by it after the Closing Date with respect to any Tax period that actually ends on
or before such Closing Date.

(b) Following the Closing Date, Holdco shall prepare and file, or cause to be prepared and
filed, all Tax Returns for Straddle Tax Periods with respect to the Acquired Assets and the
Businesses or required to be filed by the Conveyed Subsidiaries.

(c) Holdco shall prepare and file, or cause to be prepared and filed, all other Tax Returns
required to be filed by the Conveyed Subsidiaries after the Closing Date with respect to any
Post-Closing Tax Period.

(d) In the case of Section 10.01(a), the applicable Seller shall submit such Tax Return to
MG and Holdco (together with schedules, statements and, to the extent reasonably required by MG or
Holdco, supporting documentation) at least 30 days prior to the due date (including extensions) of
such Tax Return. In the case of Section 10.01(b), Holdco shall submit such Tax Return to Parent
and the applicable Seller (together with schedules, statements and, to the extent reasonably
required by Parent or the applicable Seller, supporting documentation) at least 30 days prior to
the due date (including extensions) of such Tax Return. If MG or Holdco (in the case of Section
10.01(a)) or Parent (in the case of Section 10.01(b)) objects to any item on any such Tax Return,
it shall, within 30 days of delivery of such Tax Return, notify the party responsible for the
preparation of such Tax Return in writing that it so objects, specifying with particularity any
such item and stating the specific factual or legal basis for any such objection. If a notice of
objection is duly delivered, MG, Holdco and the Sellers (as applicable) shall negotiate in good
faith and use their reasonable best efforts to resolve such items.

(e) To the extent any amount for which Parent or the Sellers are responsible pursuant to
Section 9.01(a) is required to be paid after the Closing Date, Parent or such Sellers, as the case
may be, shall either (i) pay such amount to the

 

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applicable Taxing Authority at or before the time at which payment of such amount is due
(including estimated Taxes), and furnish Holdco or the applicable Conveyed Subsidiary with evidence
of such payment, or (ii) pay such amount to Holdco or the applicable Conveyed Subsidiary at least
five days before payment of such amount is due (including estimated Taxes).

(f) Any refund paid or credited to a Conveyed Subsidiary with respect to a Pre-Closing Tax
Period shall be for the account of Parent or UIM, as applicable, except for any refund
attributable to any post-Closing deduction, loss, credit or similar benefit. The portion of any
refund paid or credited to a Conveyed Subsidiary that is attributable to the pre-Closing portion
of any Straddle Tax Period shall be for the account of Parent or UIM, as applicable, except for
any refund attributable to any post-Closing deduction, loss, credit or similar benefit. All other
refunds shall be for the Conveyed Subsidiaries’ account. The applicable Conveyed Subsidiary shall
pay to Parent or UIM, as applicable, the amount of any refund that is for Parent’s or UIM’s
account within 30 days after receipt thereof by the applicable Conveyed Subsidiary. Any such
payment shall be net of any Taxes incurred or imposed on any applicable Conveyed Subsidiary that
is directly attributable to the receipt of such refund. The parties shall cooperate in making a
formal or informal claim for any refund attributable to a Straddle Tax Period.

SECTION 10.02. Tax Sharing Agreements. Any and all existing Tax sharing agreements
between any Conveyed Subsidiary, on the one hand, and the Sellers or any affiliate of the Sellers
(other than the Conveyed Subsidiaries), on the other hand, shall be terminated as of the Closing
Date. After such date, none of the Conveyed Subsidiaries, the Sellers or any affiliate of the
Sellers shall have any further rights or liabilities thereunder.

SECTION 10.03. FIRPTA. At the Closing Date, the applicable Seller shall deliver or
cause to be delivered to Holdco (or one of Holdco’s subsidiaries designated by Holdco) duly
completed and executed certificates, in form and substance reasonably satisfactory to Holdco (A)
that CIDC Delaware is not a “foreign person” within the meaning of Section 1445 of the Code and (B)
that none of the assets to be transferred by the other Sellers pursuant to this Agreement
constitute a “United States real property interest” within the meaning of Section 897(c)(1) of the
Code.

SECTION 10.04. Cooperation on Tax Matters. After the Closing Date, the parties shall
furnish, or cause to be furnished, to each other, upon request, in a timely manner, such
information (including access to books and records) and assistance relating to the Conveyed
Subsidiaries, the Acquired Assets or the Businesses as is reasonably necessary for the filing of
any Tax Return, for the preparation of any audit, and for the prosecution or defense of any claim,
suit or proceeding relating to any proposed adjustment.

 

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ARTICLE XI

Put-Call Provisions

SECTION 11.01. Put and Call Rights. On the terms and subject to the conditions set
forth in this Article XI, the Holdco Interest Holder shall have the right (the “Put Right”)
to irrevocably elect to cause MG to purchase, and MG shall have the right (the “Call
Right”) to irrevocably elect to purchase from the Holdco Interest Holder, in each case free and
clear of all liabilities, Holdco Interests for the applicable Put-Call Prices on the applicable
Put-Call Closing Dates.

SECTION 11.02. Method of Exercise; Determination of Applicable Put-Call Price.

(a) Required Information. In each of 2013, 2014, 2015 and (if MG elects to deliver
a Put-Call Indication of Interest in connection with such year in accordance with the procedures
set forth below) 2016 (each such year, a “Put-Call Year”), MG shall cause to be delivered
to Parent (A) by February 15 of such Put-Call Year, (1) the business plan in the Annual
Information Package for such Put-Call Year, (2) the unaudited balance sheet, income statement and
statement of cash flows in the Annual Information Package for such Put-Call Year and (3) the Prior
Year Unaudited Financials for such Put-Call Year and (B) by March 1 of such Put-Call Year, the
audited consolidated financial statements in the Annual Information Package for such Put-Call
Year. Notwithstanding anything in this Section 11.02(a) to the contrary, the Annual Information
Package shall not be required to be delivered for the 2014 or 2015 Put-Call Year if all the Holdco
Interests have been purchased by MG prior to the beginning of such Put-Call Year.

(b) 2013, 2014 and 2015 Put-Call Years. On or prior to the Indication of Interest
Deadline (i) in each of the 2013, 2014 and 2015 Put-Call Years, Parent, on behalf of the Holdco
Interest Holder, shall have the option, in its sole discretion, to deliver to MG a Put-Call
Indication of Interest, and (ii) in the 2015 Put-Call Year, MG shall have the option, in its sole
discretion, to deliver to Parent a Put-Call Indication of Interest. Any such Put-Call Indication
of Interest shall be non-binding; provided, however, that if Parent or MG fails to
deliver a Put-Call Indication of Interest on or prior to the Indication of Interest Deadline for
any Put-Call Year in which Parent or MG, as the case may be, is entitled to deliver such a notice
pursuant to this Section 11.02(b), then such party shall be deemed to have irrevocably waived its
Put Right or Call Right, as the case may be, for such Put-Call Year.

(c) 2016 Put-Call Year. Unless all the Holdco Interests have been purchased by MG
prior to the beginning of the 2016 Put-Call Year, on or prior to the Indication of Interest
Deadline for such Put-Call Year, MG shall have the option, in its sole discretion, to deliver to
Parent, on behalf of the Holdco Interest Holder, a Put-Call Indication of Interest for such
Put-Call Year, which notice shall be non-binding; provided, however, that if MG
fails to deliver a Put-Call Indication of Interest on or prior to the Indication of Interest
Deadline for such Put-Call Year and the business plan

 

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and financial results at or prior to the times required pursuant to Section 11.02(a) for such
Put-Call Year, then MG shall be deemed to have irrevocably waived its Call Right with respect to
the 2016 Put-Call Year.

(d) Determination of Put-Call Price. Commencing upon delivery by any party of a
Put-Call Indication of Interest for any Put-Call Year in accordance with Section 11.02(b) or (c),
the Put-Call Price shall be determined for such year in accordance with Annex III. If neither
party has delivered a Put-Call Indication of Interest by the Indication of Interest Deadline for
any Put-Call Year, then the Put-Call Price shall not be determined for such Put-Call Year.

(e) Binding Exercise Periods. (i) If the Put-Call Price has been determined in
accordance with Annex III for any of the 2013, 2014 or 2015 Put-Call Years, then, prior to the end
of the Seller Exercise Period in such Put-Call Year, Parent shall, on behalf of the Holdco
Interest Holder, deliver to MG a Seller Election Notice which states the Seller Election Number
for such Put-Call Year. In the event that Parent fails to deliver a Seller Election Notice to MG
prior to the end of the Seller Exercise Period for any Put-Call Year in accordance with this
Section 11.02, the Seller Election Number for such Put-Call Year shall be deemed to be zero and,
as of the end of the Seller Exercise Period for such year, such number shall be the final, binding
and irrevocable Seller Election Number for such year.

(ii) If the Put-Call Price has been determined in accordance with Annex III for any of
the 2015 or 2016 Put-Call Years, then, prior to the end of the MG Exercise Period in such
Put-Call Year, MG shall deliver to Parent, on behalf of the Holdco Interest Holder, a MG
Election Notice which states the MG Election Number for such Put-Call Year. In the event
that MG fails to deliver a MG Exercise Notice to Parent prior to the end of the MG Exercise
Period for any Put-Call Year in accordance with this Section 11.02, the MG Election Number
for such Put-Call Year shall be deemed to be equal to (A) in the case of the 2015 Put-Call
Year, the Seller Election Number for such year and (B) in the case of the 2016 Put-Call
Year, zero, and in each case, as of the end of the MG Exercise Period for such year such
number shall be the final, binding and irrevocable MG Election Number.

SECTION 11.03. Put-Call Closings. (a) The closing of the purchase and sale of the
Holdco Interests in each Put-Call Year or pursuant to any Put Acceleration Event or Call
Acceleration Event (each such closing, a “Put-Call Closing”) pursuant to this Article XI
shall take place at such place as shall be reasonably agreed between Parent, the Holdco Interest
Holder and MG, on the fifth business day following the satisfaction (or, to the extent permitted by
Applicable Law, waiver by the party or parties entitled to the benefits thereof) of the conditions
set forth in Section 11.05, or, if on such day any condition set forth in Section 11.05 (other than
conditions that by their terms are to be satisfied at the Put-Call Closing, but subject to the
satisfaction or waiver at or prior to the Put-Call Closing of all such conditions) has not been
satisfied (or, to the extent permitted by Applicable Law, waived by the party or parties entitled
to the benefit thereof), as soon as practicable after all the conditions set forth in Section 11.05
have

 

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been satisfied (or, to the extent permitted by Applicable Law, waiver by the party or parties
entitled to the benefits thereof), or at such other time and date as shall be agreed between
Parent, the Holdco Interest Holder and MG. The date on which each Put-Call Closing occurs is
referred to in this Agreement as a “Put-Call Closing Date”.

(b) At each Put-Call Closing:

(i) Parent shall, on behalf of the Holdco Interest Holder, deliver, or cause to
be delivered, to MG (A) such appropriately executed stock powers or stock transfer
forms duly endorsed in blank and other appropriate instruments of transfer relating to
the Holdco Interests to be acquired by MG pursuant to this Article XI at such Put-Call
Closing, in form and substance reasonably satisfactory to MG and its counsel, and (B)
such other documents as MG or its counsel may reasonably request to demonstrate
satisfaction of the conditions set forth in this Article XI and consummation of the
transactions contemplated by this Article XI to occur at such Put-Call Closing; and

(ii) MG shall deliver, or cause to be delivered, to the Holdco Interest Holder,
(A) if the Put-Call Price applicable to the Holdco Interests to be acquired at such
Put-Call Closing is greater than zero, and subject to Section 11.03(c), payment, by
wire transfer to a bank account designated in writing by the Holdco Interest Holder
(such designation to be made at least three business days prior to the applicable
Put-Call Closing Date), of immediately available funds in an amount in U.S. dollars
equal to such Put-Call Price, and (B) such other documents as Parent or its counsel,
in each case on behalf of the Holdco Interest Holder, may reasonably request to
demonstrate satisfaction of the conditions set forth in this Article XI and
consummation of the transactions contemplated by this Article XI to occur at such
Put-Call Closing.

(c) Notwithstanding anything to the contrary in this Article XI, if the Seller Election
Number for the 2013 or 2014 Put-Call Year is greater than 25% of the number of Holdco Interests
outstanding and held by the Holdco Interest Holder immediately following the Closing (as adjusted
for any split, reverse split, combination, subdivision or reclassification of the Holdco Shares
subsequent to such date), then MG shall have the option, in its sole discretion, to defer payment
of up to 75% of the Put-Call Price applicable to such Put-Call Year, together with interest
thereon at a rate equal to LIBOR plus 0.50%, until December 31, 2015, payable by wire transfer of
immediately available funds in U.S. dollars. MG’s obligation to pay such deferred payment shall
be evidenced by a promissory note governed by the laws of the State of New York.

SECTION 11.04. Representations and Warranties. (a) Each of Parent and the Holdco
Interest Holder represents to MG, and each of MG and Holdco represents and warrants to each of
Parent and the Holdco Interest Holder, in each case as of each Put-Call Closing Date, as follows:

 

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(i) It has full power and authority to consummate the transactions contemplated to
occur on such Put-Call Closing Date.

(ii) The consummation by it of the transactions contemplated to occur on such Put-Call
Closing Date do not on such date conflict with, or result in any violation of or default
(with or without notice or lapse of time, or both) under any provision of any Judgment or
any Applicable Law, other than any such items that, individually or in the aggregate, have
not had a material adverse effect on its ability to perform its obligations under this
Article XI that has not been cured.

(b) Each of Parent and the Holdco Interest Holder represents to MG, as of each Put-Call
Closing Date, that each Holdco Interest being sold on such Put-Call Closing Date is owned
beneficially and of record by the Holdco Interest Holder, free and clear of all Liens.

SECTION 11.05. Conditions to Put-Call Closings. (a) The obligation of MG to
purchase and pay for, and the obligation of Parent to sell, on behalf of the Holdco Interest
Holder, the applicable Holdco Interests on any Put-Call Closing Date, is subject to the
satisfaction or waiver on or prior to such Put-Call Closing Date of the following conditions:

(i) The determination of the Put-Call Price applicable to the Holdco Interests to be
purchased on such Put-Call Closing Date shall have become final and binding in accordance
with Annex III.

(ii) No Restraint shall be in effect that prevents the consummation of the acquisition
of the applicable Holdco Interests by MG on such Put-Call Closing Date.

(b) The obligation of MG to purchase and pay for the applicable Holdco Interests on any
Put-Call Closing Date is subject to the satisfaction or waiver by MG on or prior to such Put-Call
Closing Date of the following condition: The representations and warranties of Parent and the
Holdco Interest Holder in Section 11.04 that are qualified as to materiality shall be true and
correct, and those not so qualified shall be true and correct in all material respects, in each
case as of such Put-Call Closing Date as though made on such Put-Call Closing Date.

(c) The obligation of Parent to sell, on behalf of the Holdco Interest Holder, the
applicable Holdco Interests on any Put-Call Closing Date, is subject to the satisfaction or waiver
by Parent on or prior to such Put-Call Closing Date of the following condition: The
representations and warranties of MG and Holdco in Section 11.04 that are qualified as to
materiality shall be true and correct, and those not so qualified shall be true and correct in all
material respects, in each case as of such Put-Call Closing Date as though made on such Put-Call
Closing Date.

SECTION 11.06. Acceleration of Put Rights. (a) Upon the consummation of any
transaction described in Section 7.1(b) or Section 9.1(c) of the Shareholder Agreement (each
consummation of any such transaction, a “Put Acceleration 

 

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Event”), the Holdco Interest Holder shall have the right to accelerate the exercise of
its Put Rights upon the terms and subject to the conditions set forth in this Section 11.06. The
terms and conditions of any Put-Call Closing in connection with any Put Acceleration Event shall be
governed by Sections 11.03, 11.04 and 11.05.

(b) Within 20 business days of the occurrence of any Put Acceleration Event, MG shall cause
to be delivered to Parent, on behalf of the Holdco Interest Holder, (i) a written notice of the
occurrence of such Put Acceleration Event and the date thereof (each such notice, a “Put
Acceleration Event Notice”) and (ii) if and to the extent then available and not previously
delivered to Parent, the Annual Information Package for the year in which such Put Acceleration
Event occurred. On or prior to the Indication of Interest Deadline for such Put Acceleration
Event, Parent, on behalf of the Holdco Interest Holder, shall have the option, in its sole
discretion, to deliver to MG a Put Acceleration Indication of Interest, which notice shall be
non-binding; provided, however, that if Parent fails to deliver a Put Acceleration
Indication of Interest on or prior to the Indication of Interest Deadline in connection with any
Put Acceleration Event, then Parent, on behalf of the Holdco Interest Holder, shall be deemed to
have irrevocably waived the right to accelerate the exercise of the Put Rights in connection with
such Put Acceleration Event. Commencing upon delivery by Parent of a Put Acceleration Indication
of Interest in connection with any Put Acceleration Event in accordance with the immediately
preceding sentence, the Put-Call Price shall be determined for the exercise of the Put Rights in
connection with such Put Acceleration Event in accordance with Annex III. If Parent has not
delivered a Put Acceleration Indication of Interest by the Indication of Interest Deadline in
connection with any Put Acceleration Event, then the Put-Call Price for the exercise of the Put
Rights in connection with such Put Acceleration Event shall not be determined.

(c) If the Put-Call Price has been determined in accordance with Annex III in connection with
a Put Acceleration Event, then, prior to the end of the Seller Exercise Period in connection with
such Put Acceleration Event, Parent shall, on behalf of the Holdco Interest Holder, deliver to MG a
Seller Election Notice. In the event that Parent fails to deliver a Seller Election Notice to MG
prior to the end of the Seller Exercise Period in connection with any Put Acceleration Event in
accordance with this Section 11.06, then the Holdco Interest Holder shall be deemed to have elected
not to exercise its Put Rights in connection with such Put Acceleration Event and, as of the end of
the Seller Exercise Period in connection with such Put Acceleration Event, such election shall be
final, binding and irrevocable.

SECTION 11.07. Acceleration of Call Rights. (a) MG shall have the right to
accelerate the exercise of its Call Rights upon the terms and subject to the conditions set forth
in this Section 11.07. The terms and conditions of any Put-Call Closing in connection with any
Call Acceleration Event shall be governed by Sections 11.03, 11.04 and 11.05.

(b) Within 10 business days of the occurrence of any Parent Change in Control, Parent, on
behalf of the Holdco Interest Holder, shall cause to be delivered to

 

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MG a written notice of the occurrence of such Parent Change in Control (each such notice, a
“Call Acceleration Event Notice”).

(c) MG shall have the option, in its sole discretion, to deliver to Parent, on behalf of the
Holdco Interest Holder, a Call Acceleration Indication of Interest (i) within 90 days of the
consummation of a Parent Change in Control involving a Competitor, (ii) at any time if a Restricted
Person Event occurs upon or at any time following the occurrence of a Parent Change in Control and
(iii) at any time following the consummation of a Parent Change in Control not involving a
Competitor, which notice, in each case, shall be non-binding; provided, however,
that if at any time MG elects to deliver a Call Acceleration Indication of Interest, MG shall cause
to be delivered to Parent, on behalf of the Holdco Interest Holder, if and to the extent then
available and not previously delivered to Parent, the Annual Information Package for the year in
which the applicable Call Acceleration Indication of Interest is given. Commencing upon delivery
by MG of a Call Acceleration Indication of Interest in accordance with the immediately preceding
sentence, the Put-Call Price shall be determined for the exercise of the Call Rights in connection
with such Call Acceleration Event in accordance with Annex III. If MG elects to exercise its Call
Rights in connection with such Call Acceleration Event, MG shall deliver to Parent, on behalf of
the Holdco Interest Holder, a written notice to such effect; provided, however,
that any such election must be an election by MG to exercise its Call Rights with respect to all
Holdco Interests then outstanding and held by the Holdco Interest Holders; provided,
further, that in the case of a Call Acceleration Event described in clause (i) of the first
sentence of this paragraph (c), if MG fails to deliver such notice to Parent within 15 days
following the date on which the determination of the applicable Put-Call Price has become final and
binding in accordance with Annex III, MG shall be deemed to have elected not to exercise its Call
Rights in connection with such Call Acceleration Event and, as of such 15th day, such election
shall be final, binding and irrevocable; and provided, further, that in the case of
any Call Acceleration Event described in clause (iii) of the first sentence of this paragraph (c),
MG shall be entitled to deliver a Call Acceleration Indication of Interest with respect to such
Call Acceleration Event only once per calendar year.

(d) Following the consummation of a Put-Call Closing in connection with a Call Acceleration
Event described in clause (iii) of the first sentence of Section 11.07(c) (such closing, the
“First Top-Up Closing”), (a) MG shall cause to be delivered to Parent, on behalf of the
Holdco Interest Holder, an Annual Information Package for the 2015 Put-Call Year in accordance with
Section 11.02(a), notwithstanding the occurrence of such First Top-Up Closing, and (b) the Put-Call
Price applicable to the Holdco Interests purchased by MG in the First Top-Up Closing shall be
recalculated pursuant to the procedures set forth in Article III, using the Equity Value determined
as of December 31, 2014. Such Put-Call Price, as so recalculated, is referred to as the
“Top-Up Price”. If the Top-Up Price exceeds the Put-Call Price paid by MG at the First
Top-Up Closing, MG shall, within five business days after the date on which the determination of
the Top-Up Price, as calculated pursuant to Article III, becomes final and binding, deliver payment
to the Holdco Interest Holder, by wire transfer to a bank account designated in writing by the
Holdco Interest Holder (such designation to be made at least three business days prior

 

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to such fifth business day), of immediately available funds in an amount in U.S. dollars equal
to such excess.

ARTICLE XII

General Provisions

SECTION 12.01. Assignment. This Agreement and the rights and obligations hereunder
shall not be assignable or transferable by MG, Holdco, Parent or any Seller (including by operation
of law in connection with a merger or consolidation of MG, Holdco, Parent or any Seller) without
the prior written consent of the other parties hereto. Notwithstanding the foregoing, (a) Holdco
may assign its right to purchase the Shares and Acquired Assets or any portion thereof hereunder to
a subsidiary of Holdco without the prior written consent of Parent or the Sellers and (b) Holdco
may assign its rights to indemnity, in whole or in part, to any purchaser of all or substantially
all of the Businesses or to its affiliates; provided, however, that no assignment
shall limit or affect the assignor’s obligations hereunder. Any attempted assignment in violation
of this Section 12.01 shall be void. Subject to the immediately preceding sentence, this Agreement
will be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their
respective heirs, executors, administrators, successors, legal representatives and permitted
assigns.

SECTION 12.02. No Third-Party Beneficiaries. Except as provided in Article VIII and
Article IX, this Agreement is for the sole benefit of the parties hereto and their successors and
permitted assigns and nothing herein expressed or implied shall give or be construed to give to any
person, other than the parties hereto and such successors and assigns, any legal or equitable
rights, remedies, obligations or liabilities hereunder. Nothing in this Agreement shall constitute
an amendment or supplement to any other Contract or Seller Benefit Plan that is enforceable by any
person other than the parties hereto or their permitted assigns.

SECTION 12.03. Notices. All notices or other communications required or permitted to
be given hereunder shall be in writing and shall be (a) delivered by hand or sent, postage prepaid,
by registered, certified or express mail or overnight courier service and shall be deemed given
when received, or (b) sent by facsimile and shall be deemed given upon confirmation of completed
transmission, as follows:

(i) if to MG or Holdco,

Mangas Gaming

5 rue François 1er

75008 Paris

FRANCE

Tel.: +33.1.58.56.06.17

Fax: +33.1.58.56.06.01

 

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Attention: Isabelle Parize
                
Celine Fronval

with a copy to:

Cravath, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, NY 10019-7475

Tel.: 212-474-1000

Fax: 212-474-3700

Attention: Mark I. Greene, Esq.
                 
Andrew R. Thompson, Esq.

(ii) if to Parent or the Sellers,

GigaMedia Limited

22/F

60 Wyndham Street

Central, Hong Kong

Tel.: 852-3166-9800

Fax: 852 3166 9801

Attention: General Counsel

with copies to:

Skadden, Arps, Slate, Meagher & Flom LLP

42/F, Edinburgh Tower, The Landmark

15 Queen’s Road Central, Hong Kong

Tel.: 852-3740-4700

Fax: 852-3740-4727

Attention: Alec P. Tracy, Esq.

and

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036-6522

Tel.: 212-735-2760

Fax: 917-777-2760

Attention: Stephen M. Banker, Esq.

 

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SECTION 12.04. Interpretation; Annexes and Exhibits; Certain Definitions. (a) When
a reference is made in this Agreement to an Article, Section, Annex or Exhibit, such reference
shall be to an Article, Section, Annex or Exhibit of this Agreement unless otherwise indicated.
The table of contents, index of defined terms and headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement. Any capitalized term used in any Annex or Exhibit but not otherwise defined therein
shall have the meaning assigned to such term in this Agreement. Whenever the words “include”,
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the
words “without limitation”. The words “hereof”, “hereto”, “hereby”, “herein” and “hereunder” and
words of similar import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement. The term “or” is not exclusive. The word
“extent” in the phrase “to the extent” shall mean the degree to which a subject or other thing
extends, and such phrase shall not mean simply “if”. The definitions contained in this Agreement
are applicable to the singular as well as the plural forms of such terms. Any agreement,
instrument or Law defined or referred to herein means such agreement, instrument or Law as from
time to time amended, modified or supplemented, unless otherwise specifically indicated.
References to a person are also to its permitted successors and assigns. Unless otherwise
specifically indicated, all references to “dollars” and “$” will be deemed references to the lawful
money of the United States of America. The term “made available” and words of similar import means
that the relevant documents, instruments or materials were (x) posted and made available to MG,
Holdco and their Representatives on the Merrill Corp. data site maintained by Parent and the
Sellers for the purpose of the transactions contemplated by this Agreement, prior to the date of
this Agreement or (y) provided by e-mail to Cravath, Swaine & Moore LLP or (z) in the case of
documents, instruments and materials made available to Parent or any Seller, provided by e-mail to
Skadden, Arps, Slate, Meagher & Flom LLP.

(b) For all purposes hereof:

“AAMS” means the Amministrazione Autonoma dei Monopoli di Stato.

“Acquisition Proposal” means any proposal or offer (whether or not in writing) by any
person (other than MG or Holdco) with respect to any (i) merger, consolidation, amalgamation,
arrangement, share exchange, other business combination or similar transaction involving Parent or
any Seller or Conveyed Subsidiary, (ii) sale, lease, contribution or other disposition, directly or
indirectly (including by way of merger, consolidation, share exchange, other business combination,
partnership, joint venture, sale of capital stock of or other equity interests in a subsidiary of
Parent or otherwise) of any of the assets or businesses of the Businesses, other than, in the case
of this clause (ii), any transaction consisting solely of a sale of Excluded Assets,
(iii) issuance, sale or other disposition, directly or indirectly, to any person (or the
stockholders of any person) or group of securities (or options, rights or warrants to purchase, or
securities convertible into or exchangeable for, such securities) representing 10% or more of the
voting power of Parent or any Seller or Conveyed Subsidiary, (iv) transaction in which any person
(or the stockholders of any person) shall acquire,

 

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directly or indirectly, beneficial ownership, or the right to acquire beneficial ownership, or
formation of any group which beneficially owns or has the right to acquire beneficial ownership, of
10% or more of the voting power of Parent or any Seller or Conveyed Subsidiary or (v) any
combination of the foregoing (in each case, other than the Acquisition and the other transactions
contemplated by this Agreement, the Shareholder Agreement and the Ancillary Agreements).

“2009 Everest Poker NGR” means the poker Net Gaming Revenue of the Businesses for the
fiscal year ended December 31, 2009.

“2009 MG Poker NGR” means the Net Gaming Revenue of MG Poker for the fiscal year ended
December 31, 2009 on a Pro Forma Basis.

“affiliate” of any person means another person that directly or indirectly, through
one or more intermediaries, controls, is controlled by, or is under common control with, such first
person.

“Annual Information Package” means, with respect to any year, collectively, (A) a
business plan for Holdco and its subsidiaries, prepared by the management team of the Holdco
Business, for the three fiscal years beginning on January 1 of such year, (B) the unaudited balance
sheet, income statement and statement of cash flows of Holdco and its subsidiaries for the most
recent fiscal quarter of Holdco ended prior to such year, (C) the unaudited consolidated financial
statements of Holdco and its subsidiaries for the most recent fiscal year of Holdco ended prior to
such year (such unaudited consolidated financial statements, the “Prior Year Unaudited
Financials” for such year) and (D) the audited consolidated financial statements of Holdco and
its subsidiaries for the most recent fiscal year of Holdco ended prior to such Put-Call Year.

“ApexStar” means ApexStar Pacific Limited, a company incorporated under the laws of
the British Virgin Islands and a direct, wholly owned subsidiary of IMLL.

“Assigned Contracts” means (a) the assets of the Parent Asset Sellers and UIM Asset
Sellers set forth in Section 1.02(a)(vi)(A), (b) the Contracts listed in Section 1.02(a)(vi)(B) of
the Seller Disclosure Letter and (c) the Conveyed Subsidiary Contracts.

“Assumed Benefit Plan” means each Seller Benefit Plan (i) sponsored by a Conveyed
Subsidiary as of the Closing Date, (ii) that Holdco or any of its affiliates has explicitly agreed
to assume pursuant to this Agreement or (iii) that Holdco or any of its affiliates is required to
assume under Applicable Law or any applicable collective bargaining agreement, in each case other
than Seller Benefit Plans that the Sellers and their affiliates have expressly agreed to retain
pursuant to this Agreement.

“Assumed Foreign Benefit Plan” means each Assumed Benefit Plan that is not an Assumed
U.S. Benefit Plan.

 

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“Assumed U.S. Benefit Plan” means each Assumed Benefit Plan that is sponsored,
maintained or contributed to by Parent, the Sellers or any Conveyed Subsidiary primarily for the
benefit of Employees based primarily in the United States (including Puerto Rico).

“Business Intellectual Property” means Intellectual Property owned in whole or in part
by, or exclusively or non-exclusively licensed to Parent, any Seller or Conveyed Subsidiary, to the
extent used or held for use in, or arising from, the operation or conduct of the Businesses.

“Call Acceleration Event” means any of (a) a Parent Change in Control and (b) a
Restricted Person Event.

“Call Acceleration Indication of Interest” means, with respect to any Call
Acceleration Event, a written notice stating that MG is interested in accelerating the exercise of
its Call Rights in connection with such Call Acceleration Event.

“Canadian Newco” means a company to be incorporated and organized under the laws of
Quebec promptly following the date of this Agreement and which will be a wholly owned subsidiary of
Holdco.

“Cash Purchase Price” means $100,000,000.

“CESL” means Cambridge Entertainment Software Limited, a company incorporated under
the laws of the British Virgin Islands and an indirect, wholly owned subsidiary of Parent.

“Change of Control Payment” means the aggregate amount of all change of control, bonus
or other similar payments that are payable by the Parent, Sellers and their respective affiliates
under any Seller Benefit Plan to any person as a result of or in connection with the execution and
delivery of this Agreement or the consummation of the transactions contemplated hereby, whether
payable before, on or after the Closing Date and whether payable solely by virtue of such
execution, delivery or consummation or conditioned upon any other event (including termination of
employment) and, in each case, any employer-paid portion of any employment and payroll taxes
related thereto.

“CIDC Delaware” means Cambridge Interactive Development Corp., a corporation organized
under the laws of Delaware and a direct, wholly owned subsidiary of CESL.

“CIDC Quebec” means Cambridge Interactive Development Corp., a company organized under
the laws of Quebec and a direct, wholly owned subsidiary of CESL.

“CIDC UK” means Cambridge Interactive Development Co. Ltd., a company incorporated
under the laws of England and Wales and a direct, wholly owned subsidiary of CESL.

 

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“Closing Time” means 23:59, Greenwich Mean Time, on the day immediately preceding the
Closing Date.

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

“Commonly Controlled Entity” means any person that, together with Parent, any Seller
or Conveyed Subsidiary is treated as a single employer under Section 414(b), (c), (m) or (o) of the
Code.

“Competitor” means a person who (i) directly or indirectly engages in any Competitive
Activity or (ii) directly or indirectly operates a physical licensed cash-wager gambling facility
(including casinos).

“Contract” means any loan or credit agreement, bond, debenture, note, mortgage,
indenture, lease, contract, obligation, commitment, arrangement, understanding, instrument, license
or other agreement (other than a Permit), whether oral or written, including all amendments
thereto.

“Controlled Group Liability” shall mean any and all liabilities (i) under Title IV of
ERISA, other than for payment of premiums to the Pension Benefit Guaranty Corporation, (ii) under
Section 302 or 4068(a) of ERISA, (iii) under Section 412(n) or 4971 of the Code, and (iv) for
violation of the continuation coverage requirements of Section 601 et seq. of ERISA and
Section 4980B of the Code (collectively, “COBRA”) or the group health requirements of
Sections 701 et seq. of ERISA and Sections 9801 et seq. of the Code.

“Conveyed Subsidiary” means the Parent Conveyed Subsidiaries and the UIM Conveyed
Subsidiaries.

“Conveyed Subsidiary Contract” means any Contract (including any purchase order or
sales order) to which any Conveyed Subsidiary is a party.

“Conveyed Subsidiary Permit” means any Permit issued to or owned, used or possessed by
any Conveyed Subsidiary that is used or held for use or in, or arises from, the operation or
conduct of the Businesses, but only to the extent such Permit can be transferred, sold, conveyed,
assigned or delivered in connection herewith.

“Conveyed Subsidiary Personal Property” means all tangible personal property and
interests therein, including apparatus, materials, office supplies, fixtures, tools, toolings,
machinery, equipment, furniture, furnishings and vehicles, wherever located, that are used or held
for use by any Conveyed Subsidiary in, or arise from, the operation or conduct of the Business.

“Conveyed Subsidiary Receivables” means all accounts, accounts receivable, pre-paid
expenses, advance payments, prepayments, security deposits, deferred charges, letters of credit,
deposits, notes receivable and other rights to payment of the Conveyed Subsidiaries.

 

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“Current Everest Share of MG Poker Business” means, as of a date:

(i) if no Specified Acquisition has occurred prior to such date, the quotient of:

(A) the poker Net Gaming Revenue of Holdco and its subsidiaries for the most-recently
ended fiscal year of Holdco prior to such date for which audited financial statements of
Holdco and its subsidiaries have been published and

(B) the sum of (1) the poker Net Gaming Revenue of Holdco and its subsidiaries for the
most-recently ended fiscal year of Holdco prior to such date for which audited financial
statements of Holdco and its subsidiaries have been published and (2) the Net Gaming
Revenue of MG Poker for the most-recently ended fiscal year of MG prior to such date for
which audited financial statements of MG and its subsidiaries have been published; and

(ii) if a Specified Acquisition has occurred prior to such date, the quotient of:

(A) the poker Net Gaming Revenue, calculated on a Pro Forma Basis, of Holdco and its
Subsidiaries for the most-recently ended fiscal year of Holdco prior to such date for which
audited financial statements of Holdco and its subsidiaries have been published; and

(B) the sum of (1) the poker Net Gaming Revenue, calculated on a Pro Forma Basis, of
Holdco and its subsidiaries for the most-recently ended fiscal year of Holdco prior to such
date for which audited financial statements of Holdco and its subsidiaries have been
published, and (2) the Net Gaming Revenue, calculated on a Pro Forma Basis, of MG Poker for
the most-recently ended fiscal year prior of MG to such date for which audited financial
statements of MG and its subsidiaries have been published.

“Derivative Work” has the meaning set forth in 17 U.S.C. Section 101.

“Employee” shall mean any employee employed by Parent or any Seller or any Conveyed
Subsidiary, or their respective affiliates, and who provides services primarily with respect to the
Businesses, including those employees on medical leave, family leave, military leave or personal
leave under the policies of Parent, any Seller, any Conveyed Subsidiary or any of their respective
affiliates, as applicable.

“Employee on Disability Leave” shall mean any Employee who is employed primarily in
the United States and who, as of the Closing Date, is on short-term or long-term disability leave;
provided, however, that the term “Employee on Disability Leave” shall exclude any
Employee whose employment is required to transfer as of the Closing Date to Holdco or its
subsidiaries pursuant to any applicable collective bargaining agreement.

 

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“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

“Equity Value” means, with respect to Holdco and its subsidiaries, taken as a whole,
as of any date, the cash price that a willing buyer and willing seller, neither of whom is under
any compulsion to buy or sell, would be willing to pay or receive, as the case may be, in
consideration for all the Holdco Interests, in an arms’ length transaction on such date, negotiated
without time constraints, both parties having reasonable knowledge of relevant facts. In
determining the foregoing, (i) no minority discount or majority premium will be included in any
such valuation, (ii) consideration shall be given to a range of analytical methodologies,
potentially including comparable company trading analysis, comparable transactions analysis and
discounted cash flow analysis; provided that in performing any comparable company trading
analysis or comparable transactions analysis adjustments shall be made to ensure that the basis of
accounting and of relevant metrics are equivalent between Holdco and the other companies included
in such analysis, (iii) the financial impact of any management fees paid or payable to MG or any of
its affiliates by Holdco or any of its subsidiaries shall not be excluded in determining “Equity
Value”, (iv) in determining “Equity Value”, the effect of any changes in accounting methods or
systems made by Holdco and its subsidiaries as part of the integration of the Businesses into the
MG group of companies shall be eliminated, except, in the case of this clause (iv), to the extent
approved by the Holdco Interest Holder, (v) cash and cash equivalents transferred by Holdco and its
subsidiaries to MG or any of its affiliates (other than Holdco and its subsidiaries) pursuant to a
pooling arrangement, and not yet returned to Holdco and its subsidiaries, shall be treated as cash
of Holdco, and (vi) Funds Held on Deposit Liabilities shall be treated as liabilities of Holdco.

“Everest Gaming Financial Services” means Everest Gaming Financial Services Ltd, a
company incorporated under the laws of England and Wales and a direct, wholly owned subsidiary of
Everest Gaming Malta.

“Everest Gaming Malta” means Everest Gaming Limited, a company organized under the
laws of Malta and a direct, wholly owned subsidiary of UIM.

“Everest Gaming Marketing Services” means Everest Gaming Marketing Services Ltd, a
company incorporated under the laws of England and Wales and a direct, wholly owned subsidiary of
UIM.

“First WSOP Installment” means the payment of $2,800,000 pursuant to the WSOP
Agreement.

“Funds Held on Deposit Liabilities” means, as of a time, the sum of (a) the cash value
of all active player account balances (including player chips, program reward points, and value
placeholders) as of such time, (b) all cash earmarked for player awards (including prize pools for
tournaments not yet concluded and progressive jackpot pools) as of such time, (c) player chips in
play on a poker table as of such time and (d) for purposes of determining Funds Held on Deposit
Liabilities as of the Closing Time, an

 

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amount (which amount shall not be less than zero) equal to the excess of (i) the aggregate
amount of checks issued between the date that is one year prior to the date of this Agreement and
the date that is one year prior to the date on which the Closing Time occurs that remain uncashed
as of the Closing Time over (ii) the product of (A) $1,000 and (B) the number of days between the
date of this Agreement and the date which contains the Closing Time.

“Gaming Authority” means all international, U.S. federal, non-U.S., state,
territorial, provincial, local and other regulatory and licensing bodies and agencies with
authority over Online Cash-Wager Online Gambling Sites in any Gaming Jurisdiction.

“Gaming Jurisdiction” means all jurisdictions and their political subdivisions, in
which (a) Online Cash-Wager Gambling Sites are operated by Holdco or any of its subsidiaries, (b)
end users of such Online Cash-Wager Gambling Sites operated by Holdco or any of its subsidiaries
are resident or located or (c) the board of directors of Holdco has, in accordance with the
business objectives of Holdco (as determined by the board of directors of Holdco in good faith),
approved Holdco or any of its subsidiaries seeking any license, permit, approval, authorization,
registration, finding of suitability, franchise, concession or entitlement with respect to the
activities described in clause (a) or (b), so long as, for purposes of this clause (c), (x)
payments in violation of Applicable Law are not required as a matter of practice in such
jurisdiction in connection with obtaining a Gaming License from the applicable Gaming Authority in
such jurisdiction and (y) at the time of approval of seeking a Gaming License in such jurisdiction,
the board of directors of Holdco believes in good faith that obtaining a Gaming License from the
applicable Gaming Authority in such jurisdiction will result in more than a de minimis amount of
future business for Holdco and its subsidiaries.

“Gaming Licenses” means all licenses, permits, approvals, authorizations,
registrations, findings of suitability, franchises, concessions and entitlements issued by a Gaming
Authority necessary for or relating to the operation of Online Cash-Wager Online Gambling Sites.

“GAAP” means United States generally accepted accounting principles.

“GIS” means Global Interactive Services Limited, a company organized under the laws of
Quebec and a direct, wholly owned subsidiary of UIM.

“Guarantee” of or by any person means any obligation, contingent or otherwise, of such
person guaranteeing any Indebtedness of any other person (the “primary obligor”) in any
manner, whether directly or indirectly, and including any obligation of such person, direct or
indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or to purchase (or to advance or supply funds for the purchase of) any security for
the payment of such Indebtedness, (ii) to purchase property, securities or services for the purpose
of assuring the owner of such Indebtedness of the payment of such Indebtedness or (iii) to maintain
working capital, equity capital or other financial statement condition or liquidity of the primary
obligor so as to enable the primary obligor to pay such Indebtedness; provided,
however, that the

 

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term Guarantee shall not include endorsements for collection or deposit, in each case in the
ordinary course of business.

“Holdco” means a société par actions simplifiée to be registered with the Trade and
Companies Registry of Paris and organized under the laws of France promptly following the date of
this Agreement and which will be a wholly owned subsidiary of MG.

“Holdco Acquisition” means an acquisition following the Closing Date outside the
ordinary course of business by Holdco or any of its subsidiaries of a Person or business.

“Holdco Business” means the Businesses, as combined and conducted by Holdco and its
subsidiaries following the Closing.

“Holdco Interest Holder” means a company to be organized under the laws of a
jurisdiction that has a tax treaty with the Republic of France, which company will be a wholly
owned subsidiary of Parent.

“Holdco Interests” means shares of Holdco.

“IMLL” means Internet Media Licensing Limited, a company incorporated under the laws
of the British Virgin Islands and a direct, wholly owned subsidiary of CESL.

“Implementing Agreements” means the various agreements to be executed by Parent, the
Sellers, the Conveyed Subsidiaries, Holdco and one or more subsidiaries of Holdco designated by
Holdco after the date of this Agreement for the purpose of implementing the sale, transfer and
conveyance on the Closing Date of the Acquired Assets, Assumed Liabilities and the Shares to Holdco
or one or more subsidiaries of Holdco designated by Holdco, as the case may be, as contemplated by
this Agreement, in each case in a form reasonably acceptable to the parties hereto, which form
shall not contain any terms or conditions having the effect of modifying, amending or supplementing
the terms and conditions of this Agreement.

“Indebtedness” of any person means (i) all obligations of such person for borrowed
money, (ii) all obligations of such person evidenced by bonds, debentures, notes or similar
instruments, (iii) all obligations of such person upon which interest charges are customarily paid
by such person, other than trade credit incurred in the ordinary course of business, (iv) all
obligations of such person under conditional sale or other title retention agreements relating to
property or assets purchased by such person, (v) all obligations of such person issued or assumed
as the deferred purchase price of property or services, (vi) all indebtedness of others secured by
(or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien on property owned or acquired by such person, whether or not the obligations
secured thereby have been assumed, (vii) all capital lease obligations of such person, (viii) the
notional amount of all obligations of such person in respect of interest rate protection
agreements, foreign currency exchange agreements or other interest or

 

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exchange rate hedging arrangements and (ix) all obligations of such person as an account party
in respect of letters of credit and bankers’ acceptances. The Indebtedness of any person shall
include the Indebtedness of any partnership in which such person is a general partner.

“Indication of Interest Deadline” means, (a) with respect to Put-Call Indications of
Interest, ten calendar days after the date on which the information listed in clauses (A) through
(C) of the definition of the term “Annual Information Package” in this Agreement are
delivered to Parent for the applicable year and (b) with respect to a Put Acceleration Indication
of Interest, the later of (i) the date on which the Annual Information Package is delivered to
Parent for the applicable year and (ii) ten calendar days after the date on which the relevant Put
Acceleration Event Notice has been delivered to Parent.

“Initial Everest Share of Total MG Poker Business” means:

(i) if no Specified Acquisition has occurred prior to such date, the quotient of

(A) the product of (1) 0.92 and (2) 2009 Everest Poker NGR and

(B) the sum of (1) 2009 Everest Poker NGR and (2) 2009 MG Poker NGR; and

(ii) from and after the occurrence of a Specified Acquisition:

(A) if such Specified Acquisition is a Holdco Acquisition, the sum of:

(1) the product of (x) the Initial Everest Share of Total MG Poker Business as
in effect immediately prior to such Specified Acquisition (after giving effect to
any previous adjustments under this clause (ii)) and (y) an amount equal to (I) one
minus (II) the Poker NGR Dilution Factor with respect to such Specified
Acquisition, and

(2) an amount equal to the Poker NGR Dilution Factor with respect to such
Specified Acquisition and

(B) if such Specified Acquisition is an MG Acquisition, the product of:

(1) the Initial Everest Share of Total MG Poker Business as in effect
immediately prior to such Specified Acquisition (after giving effect to any
previous adjustments under this clause (ii)) and

(2) an amount equal to (x) one minus (y) the Poker NGR Dilution Factor with
respect to such Specified Acquisition.

“Intellectual Property” means any and all domestic and foreign intellectual property,
including without limitation any and all (i) patents, patent applications and patent disclosures,
together with all reissues, continuations, continuations-in-part,

 

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divisionals, revisions, extensions and reexaminations thereof (ii) trademarks, service marks,
logos, trade names, corporate names, domain names, trade dress, including all goodwill associated
therewith, and all applications, registrations and renewals in connection therewith, (iii)
copyrights and copyrightable works and all applications, registrations and renewals in connection
therewith, (iv) trade secrets and confidential or proprietary business information, whether or not
subject to statutory registration, research records, records of inventions, invention disclosures,
mask works, test information and market surveys (including confidential or proprietary research and
development, know-how, formulas, compositions, processes and techniques, methods, schematics,
technology, technical data, designs, drawings, flowcharts, block diagrams, specifications, customer
and supplier lists, pricing and cost information and business and marketing plans and proposals),
(v) proprietary rights in and to Software and (vi) all similar proprietary rights in any of the
foregoing, excluding, in each case, generally available Software.

“Intercompany Indebtedness” means any Indebtedness (i) of any Seller or Conveyed
Subsidiary, on the one hand, owed to any Seller or Conveyed Subsidiary, on the other hand and (ii)
any Indebtedness arising from or in connection with the transactions contemplated in Section 1.01
of this Agreement. For the avoidance of doubt, Intercompany Indebtedness shall not include the UIM
Note (if any), the IMLL Note and any Indebtedness by or among UIM on the one hand and IMLL on the
other hand.

“Kahnawake” means the Mohawk Indian Territory of Kahnawake.

“KGC” means the Kahnawake Gaming Commission.

“knowledge of Parent” means the knowledge of the individuals listed on Section
12.04(b)(i) of the Seller Disclosure Letter; provided that any such individual will be
deemed to have knowledge of a particular fact, circumstance, event or matter only if such
individual has actual knowledge of such fact, circumstance, event or matter or (other than in the
case of Section 3.19(c)) would be reasonably expected to have had actual knowledge of such fact,
circumstance, event or matter if such individual had made reasonable inquiry and investigation
under the circumstances.

“knowledge of MG” and “knowledge of Holdco” means the knowledge of the
individuals listed on Section 12.04(b)(ii) of the MG Disclosure Letter; provided that any
such individual will be deemed to have knowledge of a particular fact, circumstance, event or
matter only if such individual has actual knowledge of such fact, circumstance, event or matter or
would be reasonably expected to have had actual knowledge of such fact, circumstance, event or
matter if such individual had made reasonable inquiry and investigation under the circumstances.

“knowledge of UIM” means the knowledge of the individuals listed on Section
12.04(b)(iii) of the Seller Disclosure Letter; provided that any such individual will be
deemed to have knowledge of a particular fact, circumstance, event or matter only if such
individual has actual knowledge of such fact, circumstance, event or matter or (other than in the
case of Section 3.19(c)) would be reasonably expected to have had

 

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actual knowledge of such fact, circumstance, event or matter if such individual had made
reasonable inquiry and investigation under the circumstances.

“LGA” means the Lotteries and Gaming Authority in Malta.

“LIBOR” means the rate per annum equal to the British Bankers Association LIBOR Rate
(“BBA LIBOR”) for the applicable BBA LIBOR interest period (as selected by MG from time to
time), as published by Bloomberg (or other commercially available source providing quotations of
BBA LIBOR as agreed upon by the parties from time to time) at approximately 11:00 a.m., London
time, two business days prior to the commencement of such interest period, for deposits in U.S.
dollars (for delivery on the first day of such Interest Period) with a term equivalent to such
interest period.

“Losses” of any person means any and all demands, claims, suits, actions, causes of
action, proceedings, assessments, losses, damages, liabilities, costs and expenses incurred by such
person, including interest, penalties and attorneys’ fees, third-party expert and consultant fees
and expenses, fines, Judgments, awards and financial responsibility for investigation, removal and
clean-up costs and natural resource damages.

“MG Acquisition” means an acquisition that is not a Holdco Acquisition following the
Closing Date outside the ordinary course of business by MG or any of its subsidiaries of a Person
or business.

“MG Election Notice” means, with respect to any of the 2015 or 2016 Put-Call Years, a
written notice delivered by MG to Parent, on behalf of the Holdco Interest Holder, which states the
MG Election Number for such Put-Call Year. Each MG Exercise Notice shall be deemed given on the
date of receipt by Parent, on behalf of the Holdco Interest Holder, and such notice shall
thereafter be irrevocable by MG.

“MG Election Number” means, with respect to any of the 2015 or 2016 Put-Call Years,
the number of Holdco Interests with respect to which MG has elected to exercise its Call Right in
such Put-Call Year. The MG Election Number shall (a) in the case of the 2015 Put-Call Year, be at
least equal to the Seller Election Number for such year and (b) in the case of each of the 2015 and
2016 Put-Call Years, not be greater than the number of Holdco Interests then outstanding and held
by the Holdco Interest Holder.

“MG Exercise Period” means (a) with respect to the exercise of the Call Rights in the
2015 Put-Call Year (other than in connection with a Call Acceleration Event), the period beginning
on the date on which MG receives the Seller Election Notice for such Put-Call Year or, if no Seller
Election Notice is delivered by Parent in accordance with Section 11.02(b)(iii) for such Put-Call
Year, on the day after the last day of the Seller Exercise Period for such Put-Call Year, and
ending on December 31, 2015 and (b) with respect to the exercise of the Call Rights in the 2016
Put-Call Year (other than in connection with a Call Acceleration Event), the period beginning on
the date on which the determination of the Equity Value applicable to the 2016 Put-Call Year has

 

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become final and binding in accordance with Annex III and ending on December 31, 2016.

“MG Poker” means the poker operations of MG and its subsidiaries, other than Holdco
and its subsidiaries.

“Multiemployer Plan” means “multiemployer plan” within the meaning of section 3(37) of
ERISA.

“New CIDC Delaware” means a corporation to be incorporated under the laws of Delaware
promptly following the date of this Agreement and which will be a wholly owned subsidiary of
Holdco.

“New Maltese Holdco” means a company to be organized under the laws of Malta promptly
following the date of this Agreement and which will be a wholly owned subsidiary of Holdco.

“Non-Poker Business FMV” means, as of a date, the final and binding Equity Value as of
such date, as determined in accordance with Annex II or Annex III, as applicable, minus the Poker
Business FMV as of such date.

“Online Cash-Wager Gambling Sites” means online cash-wager gaming sites, other than
sites on which players do not have any opportunity to win money, tangible goods or services.

“Outside Date” means March 31, 2010; provided, however, that if, on
March 31, 2010, the conditions set forth in Section 6.02(f)(i) shall not have been satisfied or
waived but all other conditions to the parties’ obligations to effect the Closing (other than the
delivery of certificates and documents to be delivered at the Closing) have been satisfied or
waived, then the Outside Date shall be automatically extended to May 31, 2010; provided,
further, that in the event that the Outside Date is automatically extended pursuant to the
preceding proviso, then neither party shall be entitled to assert the failure of a condition to
such party’s obligation to effect the Closing based solely on facts, events or conduct within the
knowledge of such party as of March 31, 2010.

“Parent Asset Seller” means any of CESL, CIDC Delaware, CIDC Quebec and IMLL.

“Parent Change in Control” means any of (a) Parent failing to own, directly or
indirectly, beneficially and of record, 100% of the outstanding capital stock of, and other equity
and voting interests (including voting and convertible or exchangeable indebtedness) in, each
Holdco Interest Holder and (b)(i) a merger, reorganization, amalgamation, arrangement, share
exchange, consolidation, tender or exchange offer, business combination or recapitalization
involving Parent as a result of which either (A) the shareholders of Parent immediately preceding
such transaction would hold less than 50% of the outstanding shares of, or less than 50% of the
outstanding voting power of, the ultimate parent company resulting from such transaction
immediately after consummation thereof or (B) any single person or group, other than Permitted
Holders,

 

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would hold 50% or more of the outstanding shares or voting power of the ultimate parent
company resulting from such transaction immediately after the consummation thereof, (ii) the direct
or indirect acquisition (including by means of a tender offer or an exchange offer) by any person
or group, other than Permitted Holders, of beneficial ownership, or the right to acquire beneficial
ownership, or formation of any group (other than a group consisting solely of Permitted Holders)
which beneficially owns or has the right to acquire beneficial ownership, of more than 50% of the
outstanding voting power of Parent, in each case on a fully diluted basis, or (iii) the occupation
of a majority of the seats (other than vacant seats) on the board of directors of Parent by
directors who were not (A) directors on the date of this Agreement, (B) appointed by directors who
were directors on the date of this Agreement or by directors so appointed, (C) appointed by
Permitted Holders or (D) nominated for election to Parent’s board of directors by directors
described in the preceding clauses (A) through (C).

“Parent Conveyed Subsidiary” means any of CIDC UK and ApexStar.

“Parent Stock Seller” means any of CESL and IMLL.

“Participant” means any current or former director, officer, employee, independent
contractor or consultant of Parent, any Seller or Conveyed Subsidiary, or any of their respective
affiliates, in each case, who provides or has provided services primarily with respect to the
Business.

“Permitted Holder” means any of (i) Jeffrey Koo, Jr., (ii) Andre Koo, (iii) any of the
directors and executive officers of Parent as of the date of this Agreement or (iv) any entity that
is wholly owned by any of the foregoing.

“person” means any individual, firm, company, corporation, partnership, limited
liability company, trust, joint venture, business association, Governmental Entity or other entity.

“Personal Property” means (a) the assets of the Parent Asset Sellers and UIM Asset
Sellers set forth in Section 1.02(a)(ii) and (b) the Conveyed Subsidiary Personal Property.

“Poker Business FMV” means, as of a date, the portion of the final and binding Equity
Value as of such date, as determined in accordance with Annex II or Annex III, as applicable, that
is attributable to the poker businesses of Holdco and its subsidiaries, taken as a whole.

“Poker FMV Adjustment Factor” means, as of a date, the quotient of (A) the Initial
Everest Share of Total MG Poker Business as of such date and (B) the Current Everest Share of MG
Poker Business as of such date.

“Poker NGR Dilution Factor” means with respect to a Specified Acquisition the quotient
of:

 

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(i) the poker Net Gaming Revenue, calculated on a Pro Forma Basis, of the business
or person that is the subject of such Specified Acquisition for the most-recently ended
12-month period immediately prior to the date of such Specified Acquisition; and

(ii) the sum of (A) the poker Net Gaming Revenue, calculated on a Pro Forma Basis,
of the business or person that is the subject of such Specified Acquisition for the
most-recently ended 12-month period immediately prior to the date of such Specified
Acquisition and (B) the poker Net Gaming Revenue, calculated on a Pro Forma Basis, of
Holdco and its Subsidiaries for the most-recently ended 12-month period immediately
prior to the date of such Specified Acquisition and (C) the Net Gaming Revenue,
calculated on a Pro Forma Basis, of MG Poker for the most-recently ended 12-month
period immediately prior to the date of such Specified Acquisition.

“Post-Closing Tax Period” means any taxable period (or portion thereof) beginning
after the Closing Date.

“Pre-Closing Tax Period” means any taxable period (or portion thereof) ending on or
prior to the Closing Date.

“Proceeding” means any suit, claim, action, arbitration, interference, opposition,
reexamination, hearing or other litigation or proceeding (including any administrative or criminal
proceeding).

“Pro Forma Basis” means, for purposes of calculating Net Gaming Revenue of a person as
of a date, that such calculation shall give pro forma effect to all acquisitions outside the
ordinary course of business by such person that have occurred during the 12-month period or fiscal
year, as the case may be, ended on or prior to such date as if they occurred on the first day of
such 12-month period or fiscal year, as the case may be. For the avoidance of doubt for purposes
of determining the Poker NGR Dilution Factor, Holdco NGR Adjustment Factor and Maximum NGR Amount
with respect to a Specified Acquisition, the Net Gaming Revenue of the person or business that is
the subject of such Specified Acquisition shall not be included in the Net Gaming Revenue that is
being calculated on a Pro Forma Basis.

“Purchaser Material Adverse Effect” means any state of facts, change, effect,
condition, development, event or occurrence that materially and adversely affects (i) the ability
of MG and Holdco to perform their obligations under this Agreement and the Ancillary Agreements
within the time period for performance contemplated therein or (ii) the ability of MG and Holdco to
consummate the Acquisition and the other transactions contemplated by this Agreement and the
Ancillary Agreements.

“Put Acceleration Indication of Interest” means, with respect to any Put Acceleration
Event, a written notice stating that Parent, on behalf of the Holdco Interest Holder, is interested
in accelerating the exercise of its Put Rights in connection with such Put Acceleration Event.

 

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“Put-Call Indication of Interest” means (a) with respect to Parent in any of the 2013,
2014 or 2015 Put-Call Years, a written notice delivered by Parent, on behalf of the Holdco Interest
Holder, to MG which states that Parent is interested in exercising its Put Right for such Put-Call
Year, and (b) with respect to MG in any of the 2015 or 2016 Put-Call Years, a written notice
delivered by MG to Parent which states that MG is interested in exercising its Call Right for such
Put-Call Year.

“Receivables” means (a) the assets of the Parent Asset Sellers and UIM Asset Sellers
set forth in Section 1.02(a)(iii) and (b) the Conveyed Subsidiary Receivables.

“Relevant Transfer” shall have the meaning given to it in the Transfer of Undertakings
(Protection of Employment) Regulations 2006, as amended from time to time.

“Representatives” means, with respect to any person, such person’s directors, officers
and employees and its and their respective investment bankers, accountants, attorneys, consultants
and other advisors, agents and representatives.

“Restricted Person Event” means Parent or a Holdco Interest Holder becoming a person
who (i) is determined by a Gaming Authority to be unsuitable to directly or indirectly beneficially
own an interest in Holdco or (ii) causes Holdco or any of its subsidiaries to lose or to be
threatened by a Gaming Authority with the loss of any Gaming License.

“SEC” means the United States Securities and Exchange Commission.

“Second WSOP Installment” means the payment of $5,600,000 pursuant to the WSOP
Agreement.

“Seller” means any of UIM, CESL, CIDC Delaware, IMLL, GIS and, from and after the date
on which they become parties to this Agreement, UIM Canco 1, UIM Canco 2 and UIM Canco 3.

“Seller Benefit Plan” means each “employee pension benefit plan” (as defined in
Section 3(2) of ERISA, “employee welfare benefit plan” (as defined in Section 3(1) of ERISA)) and
each other plan, arrangement, agreement, program or policy relating to stock options, stock
purchases, other equity-based compensation, compensation, bonus, incentive, deferred compensation,
employment, severance, retention, employment, consulting, change in control, termination, fringe
benefits, disability, medical, life, vacation, retirement, pension, relocation plan or policy,
employee loan, supplemental unemployment or other employee benefits or benefits provided under a
collective bargaining agreement, in each case sponsored, maintained, contributed to or entered into
or required to be sponsored, maintained, contributed to or entered into by Parent, any Seller or
Conveyed Subsidiary or any Commonly Controlled Entity, in each case providing any compensation or
benefits to any Participant, or with respect to which any Conveyed Subsidiary has any liability, or
with respect to which

 

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Parent, any Seller or Commonly Controlled Entity has any liability with respect to a
Participant.

“Seller Election Notice” means, (a) with respect to any of the 2013, 2014 or 2015
Put-Call Years, a written notice delivered to MG by Parent, on behalf of the Holdco Interest
Holder, which states the Seller Election Number for such Put-Call Year and (b) with respect to any
Put Acceleration Event, a written notice delivered to MG by Parent, on behalf of the Holdco
Interest Holder, which states that Parent elects to exercise its Put Rights with respect to all
Holdco Interests then outstanding and held by the Holdco Interest Holder in connection with such
Put Acceleration Event. Each Seller Election Notice shall be deemed given on the date of receipt
by MG and such notice shall thereafter be irrevocable by Parent and the Holdco Interest Holder.

“Seller Election Number” means, with respect to any of the 2013, 2014 or 2015 Put-Call
Years, the number of Holdco Interests with respect to which the Holdco Interest Holder has elected
to exercise its Put Right in such Put-Call Year. The Seller Election Number for any Put-Call Year
shall not be greater than the number of Holdco Interests then outstanding and held by the Holdco
Interest Holder.

“Seller Equity Plans” means the GigaMedia Limited 2007 Equity Incentive Plan and the
GigaMedia Limited 2006 Equity Incentive Plan.

“Seller Exercise Period” means, with respect to the exercise of the Put Rights, the
period of 15 consecutive calendar days beginning on the date on which the determination of the
Equity Value applicable to such exercise of the Put Rights has become final and binding in
accordance with Annex III.

“Seller Material Adverse Effect” means any state of facts, change, effect, condition,
development, event or occurrence that materially and adversely affects (i) the business, assets,
condition (financial or otherwise) or results of operations of the Businesses, taken as a whole
(other than any fact, change, effect, condition, development, event or occurrence relating to (a)
changes in GAAP or Applicable Law, (b) changes generally affecting the industry in which the
Businesses operate, other than any changes that disproportionately affect the Businesses relative
to other persons or businesses operating in the industry in which the Businesses operate, (c)
changes in global or national political conditions (including the outbreak or escalation or war or
acts of terrorism) or due to natural disasters, other than any changes that disproportionately
affect the Businesses relative to other persons or businesses operating in the industry in which
the Businesses operate, (d) the effects of the actions or omissions expressly required by this
Agreement or that are taken with the prior written consent of MG or Holdco, in connection with the
transactions contemplated hereby and (e) adverse changes resulting from the identity of MG or
Holdco or the actions, inactions or plans of MG or Holdco or their affiliates with respect to the
Businesses), (ii) the ability of Parent or any Seller to perform its obligations under this
Agreement and the Ancillary Agreements within the time period for performance contemplated therein
or (iii) the ability of Parent or any Seller to consummate the Acquisition and the other
transactions contemplated by this Agreement and the Ancillary Agreements.

 

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“Software” means all types of computer software programs, including operating systems,
application programs, software tools, firmware and software imbedded in equipment, including both
object code and source code. The term “Software” shall also include all written or electronic
data, documentation and materials that explain the structure or use of Software or that were used
in the development of Software or are used in the operation of the Software including logic
diagrams, flow charts, procedural diagrams, error reports, manuals and training materials, look-up
tables and databases.

“Specified Acquisition” means a Holdco Acquisition or an MG Acquisition.

“subsidiary” of any person means another person, an amount of the voting securities,
other voting ownership or voting partnership interests of which that is sufficient to elect at
least a majority of its Board of Directors or other governing body (or, if there are no such voting
interests, 50% or more of the equity interests of which) is owned directly or indirectly by such
first person or by another subsidiary of such person.

“Target Working Capital Amount” means $11,200,000.

“Tax” or “Taxes” means (i) all forms of taxation imposed by any Federal,
state, provincial, local, foreign or other Taxing Authority, including income, franchise, property,
sales, use, stamp, excise, employment, unemployment, payroll, social security, estimated, value
added, ad valorem, transfer, recapture, withholding, health and other taxes of any kind, duties,
levies, imposts, license and registration fees and other similar charges and assessments, in each
case and including any interest, penalties and additions thereto, all amounts payable pursuant to
an agreement or arrangement with respect to any taxes and (ii) including any such liability with
respect to the foregoing to which such party is subject as a result of principles of transferee or
successor liability.

“Taxing Authority” means any Governmental Entity exercising any authority to impose,
regulate or administer the imposition of Taxes.

“Tax Return” means any report, return, document, declaration or other information or
filing required to be supplied to any Taxing Authority with respect to Taxes, including any
schedule or attachment thereto, and including any amendment thereof.

“Third Party Software” means Software with respect to which a third party holds any
copyright or other ownership right (and, therefore, such Software is not owned exclusively by the
Sellers and Conveyed Subsidiaries).

“Transfer Time” shall mean (i) in the case of each Employee who is not an Employee on
Disability Leave, 12:01 a.m., New York City time, on the Closing Date, and (ii) in the case of each
Employee who is an Employee on Disability Leave and who accepts the offer of employment of Holdco
or its subsidiaries, as provided in Section 5A.01, 12:01 a.m. on the date that such Employee on
Disability Leave actually begins active employment with Holdco or its affiliates.

 

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“Transferred Permits” means (a) the assets of the Parent Asset Sellers and UIM Asset
Sellers set forth in Section 1.02(a)(v) and (b) the Conveyed Subsidiary Permits.

“Transferred Personnel Files” shall mean all personnel files that relate to a
Transferred Employee, other than information contained in such files to the extent that Parent and
the Sellers are prohibited from making such information available as a result of Applicable Laws
regarding the safeguarding of data privacy or any other legal obligation to maintain the
confidentiality of such information.

“UIM Asset Seller” means any of UIM, GIS and, from and after the date on which they
become parties to this Agreement, UIM Canco 1, UIM Canco 2 and UIM Canco 3.

“UIM Canco 1”, “UIM Canco 2” and “UIM Canco 3” each means a company
(but not the same company) to be incorporated and organized under the laws of Quebec promptly
following the date of this Agreement and which will be a wholly owned subsidiary of UIM.

“UIM Conveyed Subsidiary” means any of Everest Gaming Malta, Everest Gaming Financial
Services and Everest Gaming Marketing Services.

“Unique Active Casino Account” means, as of a date, a player account that (a) has
placed a real-money wager in connection with casino-style games offered by the Businesses during
the three months prior to such date and (b) has deposited real money with the Businesses at any
time prior to such date.

“Unique Active Poker Account” means, as of a date, a player account that (a) has been
raked or paid a real-money fee to the Businesses in connection with poker activity during the three
months prior to such date and (b) has deposited real money with the Businesses at any time prior to
such date.

“Working Capital Amount” means an amount equal to (a) the sum of the following assets
reflected on the books and records of the Businesses, in each case as of the Closing Time: (i) cash
reserves and security deposits held for the benefits of payment processors utilized by the
Businesses (other than security deposits for the London office of the Businesses), (ii) receivables
from payment processors for revenues earned but not yet received, (iii) accounts receivable not
covered by clause (ii), (iv) prepaid expenses and other current assets (including prepaid
marketing, prepaid tournament awards and other prepaid expenses but excluding the carrying balance
pursuant to the WSOP Agreement), and (v) capitalized cost per player acquisition payments net of
associated amortization, minus (b) the sum of the following liabilities reflected on the
books and records of the Businesses, in each case as of the Closing Time: (i) accounts payable and
(ii) accrued expenses (including accrued compensation and benefits (including vacation and
bonuses), accrued professional service fees, including for legal, audit and tax professionals,
accrued partner commissions and chargeback accruals); provided, however, that cash
and cash equivalents (including the reserve for amount of uncashed

 

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checks), Funds Held on Deposit Liabilities, accrued income tax receivables or payables,
deferred income tax assets or liabilities, deferred rent, and all intercompany balances (including
Intercompany Indebtedness) are excluded from the calculation of the Working Capital Amount;
provided, further, that in determining the Working Capital Amount all Excluded
Assets and Excluded Liabilities shall be deemed not to be assets or liabilities, as applicable, of
the Businesses. The Working Capital Amount shall be calculated (x) in accordance with the
principles specified in this definition, (y) to the extent not inconsistent with clause (x), GAAP
applied in a manner consistent with the Interim Financials and (z) to the extent not inconsistent
with clauses (x) and (y), in a manner, using accounts in the Businesses’ accounting systems and
based on principles and methodology, in each case in this clause (z) consistent with the Company’s
past practices as the same were used in the preparation of the Interim Financials. The accounts
specified on Section 12.04(b)(v) of the Seller Disclosure Letter reflect accounts in the accounting
system of the Businesses as of the date of this Agreement that track various items specified in the
calculation of the Working Capital Amount.

“WSOP Agreement” means the Promotional Agreement dated as of February 24, 2008 among
Harrah’s License Company LLC, UIM, GIS and CIDC Delaware, as in effect on the date of this
Agreement.

SECTION 12.05. Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and shall become
effective when one or more such counterparts have been signed by each of the parties and delivered
to the other parties.

SECTION 12.06. Entire Agreement. This Agreement, the Shareholder Agreement, the
bylaws of Holdco and any ancillary and/or implementation documents signed on the date of this
Agreement or on the Closing Date, together with the exhibits and schedules hereto and thereto, are
intended by the parties as a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties in respect of the subject
matter contained herein and therein and supersede all prior agreements and understandings between
the parties with respect hereof and thereof. Neither party shall be liable or bound to any other
party in any manner by any representations, warranties or covenants relating to such subject matter
except as specifically set forth herein or in the Shareholder Agreement, the Ancillary Agreements
or the Confidentiality Agreement.

SECTION 12.07. Severability. If any provision of this Agreement (or any portion
thereof) or the application of any such provision (or any portion thereof) to any person or
circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision
hereof (or the remaining portion thereof) or the application of such provision to any other persons
or circumstances. Upon such determination that any term or other provision is invalid, illegal on
unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in an acceptable manner to the end
that transactions contemplated hereby are fulfilled to the extent possible.

 

110

 

SECTION 12.08. Consent to Jurisdiction. Each party irrevocably submits to the
exclusive jurisdiction of (a) the Supreme Court of the State of New York, New York County, and
(b) the United States District Court for the Southern District of New York, for the purposes of any
suit, action or other proceeding arising out of this Agreement or any transaction contemplated
hereby. Each party agrees to commence any such action, suit or proceeding either in the United
States District Court for the Southern District of New York or if such suit, action or other
proceeding may not be brought in such court for jurisdictional reasons, in the Supreme Court of the
State of New York, New York County. Each party further agrees that service of any process,
summons, notice or document by U.S. registered mail to such party’s respective address set forth
above shall be effective service of process for any action, suit or proceeding in New York with
respect to any matters to which it has submitted to jurisdiction in this Section 12.08. Each party
irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or
proceeding arising out of this Agreement or the transactions contemplated hereby in (i) the Supreme
Court of the State of New York, New York County, or (ii) the United States District Court for the
Southern District of New York, and hereby and thereby further irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such action, suit or proceeding
brought in any such court has been brought in an inconvenient forum.

SECTION 12.09. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH
STATE TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

SECTION 12.10. Waiver of Jury Trial. Each party hereby waives, to the fullest extent
permitted by Applicable Law, any right it may have to a trial by jury in respect to any litigation
directly or indirectly arising out of, under or in connection with this Agreement, any Ancillary
Agreement or any transaction contemplated hereby or thereby. Each party (a) certifies that no
representative, agent or attorney of any other party has represented, expressly or otherwise, that
such other party would not, in the event of litigation, seek to enforce that foregoing waiver and
(b) acknowledges that it and the other parties hereto have been induced to enter into this
Agreement and the Ancillary Agreements, as applicable, by, among other things, the mutual waivers
and certifications in this Section 12.10.

SECTION 12.11. Enforcement in Equity and at Law. The parties hereto agree that
irreparable damage would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It is accordingly
agreed that the parties hereto shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement,
this being in addition to any other remedy to which they are entitled at law or in equity.

 

111

 

SECTION 12.12. Other Subsidiaries and Affiliates. (a) In the event that Parent, any
subsidiary of Parent (other than a Seller) or any Seller (other than a Conveyed Subsidiary) owns,
leases or licenses any assets that are used, held for use or intended to be used in, or arising
from, the operation or conduct of the Businesses and that would constitute Acquired Assets but for
the fact that such assets are owned, leased or licensed by such subsidiary (and not a Seller or
Conveyed Subsidiary), each of Parent and each Seller agrees (i) that such assets shall be deemed to
constitute Acquired Assets and (ii) to sell or cause such subsidiary to sell such assets to Holdco
(or a subsidiary of Holdco designated by Holdco) and to otherwise comply with the terms of this
Agreement.

(b) Parent and the Sellers agree that, if any of the Acquired Assets are assigned to any of
the Sellers or Conveyed Subsidiaries from any of their affiliates or subsidiaries prior to the
Closing, Parent and the Sellers shall take all action prior to the Closing necessary to establish
that the applicable Seller or Conveyed Subsidiary, as the case may be, is the assignee of such
assets and to record such assignments.

SECTION 12.13. Amendments and Waivers. This Agreement may not be amended except by
an instrument in writing signed on behalf of each of the parties hereto. By an instrument in
writing MG and Holdco, on the one hand, or Parent and the Sellers, on the other hand, may waive
compliance by the other party with any term or provision of this Agreement that such other party
was or is obligated to comply with or perform. No failure or delay by any party in exercising any
right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or
partial exercise thereof preclude any other further exercise thereof or the exercise of any other
right, power or privilege.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

112

 

IN WITNESS WHEREOF, MG, Holdco, Parent and the Sellers have duly executed this Agreement as of
the date first written above.

	 	 	 	 	 
	 	MANGAS GAMING,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GIGAMEDIA LIMITED,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ULTRA INTERNET MEDIA, S.A.,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CAMBRIDGE ENTERTAINMENT SOFTWARE LIMITED,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CAMBRIDGE INTERACTIVE DEVELOPMENT CORP.,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

113

 

	 	 	 	 	 
	 	INTERNET MEDIA LICENSING LIMITED,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GLOBAL INTERACTIVE SERVICES LIMITED,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Solely for the purposes of Section 5.17,
MONTE-CARLO SBM INTERNATIONAL S.A.R.L.,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

114

 

ANNEX I

to Stock and Asset Purchase Agreement

Index of Defined Terms

	 	 	 	 	 
	Term	 	 	 	 
	 
	 
	 	 	 	 
	2009 Bonuses
	 	Section 5.01A(d)(i)
	2009 Everest Poker NGR
	 	Section 12.04(b)
	2009 MG Poker NGR
	 	Section 12.04(b)
	2010 Bonus Plans
	 	Section 5.01A(d)(ii)
	AAMS
	 	Section 12.04(b)
	Accounting Firm
	 	Section 2.04(b)
	Acquired Assets
	 	Section 1.02(a)
	Acquisition
	 	Section 1.01
	Acquisition Proposal
	 	Section 12.04(b)
	Active Employee
	 	Section 5.01A(a)(i)
	affiliate
	 	Section 12.04(b)
	Agreement
	 	Preamble
	Ancillary Agreements
	 	Section 1.02(b)(iv)
	Annual Information Package
	 	Section 12.04(b)
	ApexStar
	 	Section 12.04(b)
	Applicable Law
	 	Section 3.03
	Assigned Contracts
	 	Section 12.04(b)
	Assumed Benefit Plan
	 	Section 12.04(b)
	Assumed Foreign Benefit Plan
	 	Section 12.04(b)
	Assumed Liabilities
	 	Section 1.03(a)
	Assumed U.S. Benefit Plan
	 	Section 12.04(b)
	Assumed U.S. Welfare Plan
	 	Section 3.16(e)
	Balance Sheet
	 	Section 3.04(a)
	breaching party
	 	Section 8.05(b)
	Brylane Finance Limited
	 	Section 3.01(c)
	Business
	 	Preamble
	Business Intellectual Property
	 	Section 12.04(b)
	Business Property
	 	Section 3.06
	Call Acceleration Event
	 	Section 12.04(b)
	Call Acceleration Event Notice
	 	Section 11.07(b)
	Call Acceleration Indication of Interest
	 	Section 12.04(b)
	Call Right
	 	Section 11.01
	Canadian Newco
	 	Section 12.04(b)
	Canadian Restrictive Covenant Proposals
	 	Section 1.05(b)(i)
	Cash Purchase Price
	 	Section 12.04(b)
	CESL
	 	Section 12.04(b)
	Change of Control Payments
	 	Section 12.04(b)
	CIDC Delaware
	 	Section 12.04(b)
	CIDC Quebec
	 	Section 12.04(b)

 

115

 

	 	 	 	 	 
	Term	 	 	 	 
	 
	CIDC Quebec Assumed Liabilities
	 	Section 5.19
	CIDC Quebec Assets
	 	Section 5.19
	CIDC UK
	 	Section 12.04(b)
	Closing
	 	Section 2.01
	Closing Funds Held on Deposit Liabilities
	 	Section 2.04(a)
	Closing Date
	 	Section 2.01
	Closing Deposits Shortfall
	 	Section 2.06
	Closing Payment
	 	Section 2.02(a)(ii)
	Closing Statement
	 	Section 2.04(a)
	Closing Time
	 	Section 12.04(b)
	Closing Working Capital Amount
	 	Section 2.04(a)
	COBRA
	 	Section 12.04(b)
	Code
	 	Section 12.04(b)
	Commonly Controlled Entity
	 	Section 12.04(b)
	Competitive Activities
	 	Section 5.10(a)(i)
	Competitor
	 	Section 12.04(b)
	Confidentiality Agreement
	 	Section 5.05(a)
	Consent
	 	Section 3.03
	Contingent Additional Consideration
	 	Section 2.05
	Contingent Additional Consideration Determination Amount
	 	Annex II
	Contingent Additional Consideration Determination Date
	 	Annex II
	Contingent Additional Consideration Equity Value Expert
	 	Annex II
	Contingent Additional Consideration Information Package
	 	Annex II
	Continuation Period
	 	Section 5.01A(b)
	Contract
	 	Section 12.04(b)
	Controlled Group Liability
	 	Section 12.04(b)
	Conveyed Subsidiary
	 	Section 12.04(b)
	Conveyed Subsidiary Contract
	 	Section 12.04(b)
	Conveyed Subsidiary Permit
	 	Section 12.04(b)
	Conveyed Subsidiary Personal Property
	 	Section 12.04(b)
	Conveyed Subsidiary Receivables
	 	Section 12.04(b)
	Covered Employee Liabilities
	 	Section 1.03(a)(iv)
	Current Everest Share of MG Poker Business
	 	Section 12.04(b)
	Deductible Amount
	 	Section 8.01(b)(i)
	Derivative Work
	 	Section 12.04(b)
	Determination Date
	 	Annex III
	Disability Period
	 	Section 5.01A(a)(i)
	Downside Value Protection Amount
	 	Annex III
	Employee
	 	Section 12.04(b)
	Employee on Disability Leave
	 	Section 12.04(b)
	Environmental Claim
	 	Section 3.18(b)(i)
	Environmental Laws
	 	Section 3.18(b)(ii)
	Equity Value
	 	Section 12.04(b)
	Equity Value Expert Commencement Date
	 	Annex III
	Equity Value Experts
	 	Annex III
	ERISA
	 	Section 12.04(b)

 

116

 

	 	 	 	 	 
	Term	 	 	 	 
	 
	Estimated Closing Statement
	 	Section 2.02(a)(i)
	Estimated Funds Held on Deposit Liabilities Section
	 	Section 2.02(a)(i)
	Estimated Deposits Shortfall
	 	Section 2.06
	Estimated Working Capital Amount
	 	Section 2.02(a)(i)
	Everest Gaming Financial Services
	 	Section 12.04(b)
	Everest Gaming Malta
	 	Section 12.04(b)
	Everest Gaming Marketing Services
	 	Section 12.04(b)
	Excluded Assets
	 	Section 1.02(b)
	Excluded Liabilities
	 	Section 1.03(b)
	Final Contingent Additional Consideration Expert
	 	Annex II
	Final Contingent Additional Consideration Expert Equity
Value
	 	Annex II
	Final Contingent Additional Consideration Expert Report
	 	Annex II
	Final Equity Value Expert
	 	Annex III
	Final Equity Value Expert Report
	 	Annex III
	Final Expert Equity Value
	 	Annex III
	First Top-Up Closing
	 	Section 11.07(d)
	First WSOP Installment
	 	Section 12.04(b)
	Financial Statement
	 	Section 3.04(a)
	Full Year Financials
	 	Section 3.04(a)
	Funds Held on Deposit Liabilities
	 	Section 12.04(b)
	GAAP
	 	Section 12.04(b)
	Gaming Authority
	 	Section 12.04(b)
	Gaming Jurisdiction
	 	Section 12.04(b)
	Gaming Licenses
	 	Section 12.04(b)
	GIS
	 	Section 12.04(b)
	GIS Assets
	 	Section 1.01(b)
	Governmental Entity
	 	Section 3.03
	GST Legislation
	 	Section 3.14
	Guarantee
	 	Section 12.04(b)
	Hazardous Materials
	 	Section 3.18(b)(iii)
	Holdco
	 	Section 12.04(b)
	Holdco Acquisition
	 	Section 12.04(b)
	Holdco Business
	 	Section 12.04(b)
	Holdco Interest Holder
	 	Section 12.04(b)
	Holdco Interests
	 	Section 12.04(b)
	Holdco NGR Adjustment Factor
	 	Annex III
	Holdco Welfare Plans
	 	 	5.01A	(g)
	IMLL
	 	Section 12.04(b)
	IMLL Note
	 	Section 1.01(b)(v)
	Implementing Agreements
	 	Section 12.04(b)
	Indebtedness
	 	Section 12.04(b)
	Indemnifiable Tax
	 	Section 9.03(a)
	indemnified party
	 	Section 8.04(a)
	indemnifying party
	 	Section  8.04(a)
	Indication of Interest Deadline
	 	Section 12.04(b)
	Initial Contingent Additional Consideration Expert
	 	Annex II

 

117

 

	 	 	 	 	 
	Term	 	 	 	 
	Initial Contingent Additional Consideration Expert
Commencement Date
	 	Annex II
	Initial Contingent Additional Consideration Expert
Equity Value
	 	Annex II
	Initial Contingent Additional Consideration Expert Report
	 	Annex II
	Initial Equity Value Expert
	 	Annex III
	Initial Equity Value Expert Report
	 	Annex III
	Initial Everest Share of MG Poker Business
	 	Section 12.04(b)
	Initial Expert Equity Value
	 	Annex III
	Initial Expert Report Deadline
	 	Annex III
	Intellectual Property
	 	Section 12.04(b)
	Intercompany Indebtedness
	 	Section 12.04(b)
	Interim Financials
	 	Section 3.04(a)
	IP License
	 	Section 3.08(a)(xix)
	ITA
	 	Section 1.05(b)(i)
	Italian License
	 	Section 5.06(f)(iii)
	Italian License Applicant
	 	Section 5.06(f)(iii)
	Judgment
	 	Section 3.03
	Kahnawake
	 	Section 12.04(b)
	Kahnawake License
	 	Section 1.01(a)(i)
	Kahnawake Servers
	 	Section 1.01(a)(i)
	KGC
	 	Section 12.04(b)
	knowledge
	 	Section 12.04(b)
	LGA
	 	Section 12.04(b)
	LIBOR
	 	Section 12.04(b)
	Liens
	 	Section 3.05
	Losses
	 	Section 12.04(b)
	Material Contract
	 	Section 3.08(a)
	Maximum NGR Amount
	 	Annex III
	MG
	 	Preamble
	MG Acquisition
	 	Section 12.04(b)
	MG Disclosure Letter
	 	Article IV
	MG Election Number
	 	Section 12.04(b)
	MG Exercise Notice
	 	Section 12.04(b)
	MG Exercise Period
	 	Section 12.04(b)
	MG Poker
	 	Section 12.04(b)
	Multiemployer Plan
	 	Section 12.04(b)
	Net Gaming Revenues
	 	Annex III
	New CIDC Delaware
	 	Section 12.04(b)
	New Maltese Holdco
	 	Section 12.04(b)
	non-breaching party
	 	Section 8.05(b)
	Non-Poker Business FMV
	 	Section 12.04(b)
	Notice of Disagreement
	 	Section 2.04(b)
	Online Cash-Wager Gambling Sites
	 	Section 12.04(b)
	Outside Date
	 	Section 12.04(b)
	Parent
	 	Preamble
	Parent Acquisition Proposal
	 	Section 5.03(a)

 

118

 

	 	 	 	 	 
	Term	 	 	 	 
	 
	Parent Asset Seller
	 	Section 12.04(b)
	Parent Change in Control
	 	Section 12.04(b)
	Parent Stock Seller
	 	Section 12.04(b)
	Participant
	 	Section 12.04(b)
	paying party
	 	Section 5.06(h)
	Permits
	 	Section 3.11
	Permitted Holder
	 	Section 12.04(b)
	Permitted Liens
	 	Section 3.05
	person
	 	Section 12.04(b)
	Personal Property
	 	Section 12.04(b)
	Poker Business FMV
	 	Section 12.04(b)
	Poker FMV Adjustment Factor
	 	Section 12.04(b)
	Poker NGR Dilution Factor
	 	Section 12.04(b)
	Post-Closing Tax Period
	 	Section 12.04(b)
	Pre-Closing Service
	 	5.01A(a)(iii)
	Pre-Closing Tax Period
	 	Section 12.04(b)
	primary obligor
	 	Section 12.04(b)
	Prior Year Unaudited Financials
	 	Section 12.04(b)
	Proceeding
	 	Section 12.04(b)
	Pro Forma Basis
	 	Section 12.04(b)
	Purchase Price
	 	Section 1.01
	Purchaser Indemnified Party
	 	Section 8.01(a)
	Purchaser Material Adverse Effect
	 	Section 12.04(b)
	Purchaser Specified Representations
	 	Section 8.02(c)
	Put Acceleration Event
	 	Section 11.06(a)
	Put Acceleration Event Notice
	 	Section 11.06(b)
	Put Acceleration Indication of Interest
	 	Section 12.04(b)
	Put Right
	 	Section 11.01
	Put-Call Closing
	 	Section 11.03(a)
	Put-Call Closing Date
	 	Section 11.03(a)
	Put-Call Indication of Interest
	 	Section 12.04(b)
	Put-Call Price
	 	Annex III
	Put-Call Year
	 	Section 11.02(a)
	Put Right
	 	Section 11.01
	QST Legislation
	 	Section 3.14
	QTA
	 	Section 3.14
	Real Property Lease
	 	Section 3.06
	Receivables
	 	Section 12.04(b)
	Reference Value Adjustment Payment
	 	Section 2.04(c)
	Release
	 	Section 3.18(b)(iv)
	Relevant Transfer
	 	Section 12.04(b)
	Representatives
	 	Section 12.04(b)
	Restraint
	 	Section 6.01(b)
	Restricted Person Event
	 	Section 12.04(b)
	Restrictive Covenant Withholding Amount
	 	Section 1.05(b)(i)
	SBM
	 	Preamble

 

119

 

	 	 	 	 	 
	Term	 	 	 	 
	 
	Securities Act
	 	Section 3.24
	SEC
	 	Section 12.04(b)
	Second WSOP Installment
	 	Section 12.04(b)
	Seller
	 	Section 12.04(b)
	Seller Benefit Plan
	 	Section 12.04(b)
	Seller Disclosure Letter
	 	Article III
	Seller Election Notice
	 	Section 12.04(b)
	Seller Election Number
	 	Section 12.04(b)
	Seller Equity Plans
	 	Section 12.04(b)
	Seller Exercise Period
	 	Section 12.04(b)
	Seller Material Adverse Effect
	 	Section 12.04(b)
	Seller Specified Representations
	 	Section 8.01(b)(i)
	Seller Supplier
	 	Section 3.07(j)
	Shareholder Agreement
	 	Section 5.14(b)
	Shares
	 	Preamble
	Software
	 	Section 12.04(b)
	Source Code Contract
	 	Section 3.08(e)
	Specified Acquisition
	 	Section 12.04(b)
	Stage 2 Contingent Additional Consideration Expert
Commencement Date
	 	Annex II
	Stage 2 Equity Value Expert Commencement Date
	 	Annex III
	Straddle Tax Period
	 	Section 9.01(c)
	subsidiary
	 	Section 12.04(b)
	Supplier Rights
	 	Section 3.07(j)
	Target Working Capital Amount
	 	Section 12.04(b)
	Tax
	 	Section 12.04(b)
	Tax Claim
	 	Section 9.03(a)
	Tax Indemnified Party
	 	Section 9.03(a)
	Tax Indemnitor
	 	Section 9.03(a)
	Tax Return
	 	Section 12.04(b)
	Taxing Authority
	 	Section 12.04(b)
	Termination Fee
	 	Section 7.02(a)
	Terms and Conditions of Employment
	 	Section 5.03A(b)
	Third Party Claim
	 	Section 8.04(a)
	Third Party Software
	 	Section 12.04(b)
	Top-Up Price
	 	Section 11.07(d)
	Transfer Taxes
	 	Section 5.12(a)
	Transfer Time
	 	Section 12.04(b)
	Transferred Benefit Plan Assets
	 	Section 1.02(a)(ix)
	Transferred Employee
	 	Section 5.01A(a)(i)
	Transferred Personnel Files
	 	Section 12.04(b)
	UIM
	 	Preamble
	UIM Asset Seller
	 	Section 12.04(b)
	UIM Canco 1
	 	Section 12.04(b)
	UIM Canco 2
	 	Section 12.04(b)
	UIM Canco 3
	 	Section 12.04(b)

 

120

 

	 	 	 	 	 
	Term	 	 	 	 
	 
	UIM Conveyed Subsidiary
	 	Section 12.04(b)
	UIM General Assets
	 	Section 1.01(a)
	UIM General Liabilities
	 	Section 1.02(a)
	UIM Kahnawake Assets
	 	Section 1.01(a)
	UIM Kahnawake Liabilities
	 	Section 1.01(a)
	UIM Trademark Liabilities
	 	Section 1.01(a)
	UIM Trademarks
	 	Section 1.01(a)
	Unique Active Casino Accounts
	 	Section 12.04(b)
	Unique Active Poker Accounts
	 	Section 12.04(b)
	Workers’ Comp Claims
	 	Section 5.01A(g)(iii)
	Workers’ Compensation Event
	 	Section 5.01A(g)(iii)
	Working Capital Amount
	 	Section 12.04 (b)
	WSOP Agreement
	 	Section 12.04(b)

 

121

 

ANNEX II

to Stock and Asset Purchase Agreement

Contingent Additional Consideration

SECTION 1. Determination of Contingent Additional Consideration. (a) MG shall cause
to be delivered to Parent (i) by February 15, 2012, (A) a business plan for Holdco and its
subsidiaries, prepared by the management team of the Holdco Business, for the three fiscal years
beginning on January 1, 2012, (B) the unaudited balance sheet, income statement and statement of
cash flows of Holdco and its subsidiaries for the fiscal quarter of Holdco ended December 31, 2011,
and (C) the Prior Year Unaudited Financials for such year and (ii) by March 1, 2012, the audited
consolidated financial statements of Holdco and its subsidiaries for the fiscal year of Holdco
ended December 31, 2011 (the business plan and financial statements referred to in clauses (i) and
(ii), the “Contingent Additional Consideration Information Package”).

(b) Within seven calendar days after the latest to occur of (x) the last day of the month in
which the second anniversary of the Closing occurs (the last day of such month, the “Contingent
Additional Consideration Determination Date”), (y) the date on which the Prior Year Unaudited
Financials are provided to Parent pursuant to Section 1(a) and (z) the date on which the management
accounts for the month in which the Contingent Additional Consideration Determination Date occurs
are delivered (such seventh calendar day, the “Initial Contingent Additional Consideration
Expert Commencement Date”), Parent, on behalf of IMLL, and MG each shall designate by written
notice to the other an internationally recognized investment bank or independent appraiser (each
such investment bank or independent appraiser, an “Initial Contingent Additional Consideration
Expert”) to, acting as experts and not as arbitrators, (i) prepare a report which (A) sets
forth such Initial Contingent Additional Consideration Expert’s determination of the Equity Value,
the Non-Poker Business FMV and the Poker Business FMV, in each case as of the Contingent Additional
Consideration Determination Date, each of which shall be a single amount as opposed to a range, and
(B) includes work papers which indicate the basis for and calculation of each such Equity Value,
Non-Poker Business FMV and Poker Business FMV (each report described in this clause (i), an
“Initial Contingent Additional Consideration Expert Report”) and (ii) deliver to Parent, on
behalf of IMLL, or MG, as the case may be, an oral and written opinion addressed to such party as
to each such Equity Value, Non-Poker Business FMV and Poker Business FMV (the Equity Value,
Non-Poker Business FMV and Poker Business FMV amounts set forth by each Initial Contingent
Additional Consideration Expert’s report and oral and written opinions, such Expert’s “Initial
Contingent Additional Consideration Expert Equity Value”, “Initial Contingent Additional
Consideration Expert Non-Poker Business FMV” and “Initial Contingent Additional
Consideration Expert Poker Business FMV”, respectively). Each Initial Contingent Additional
Consideration Expert shall deliver its Initial Contingent Additional Consideration Expert Report on
the date that is 20 calendar days after the Initial Contingent Additional Consideration Expert
Commencement Date (such date, the “Initial Contingent Additional Consideration Expert Report
Deadline”), and in determining the Initial Contingent Additional Consideration Expert Equity
Value set forth in such report, such Initial Contingent Additional Consideration Expert shall

 

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take into consideration all relevant facts and circumstances relating to Holdco, its
subsidiaries and the Holdco Business that are available as of the Contingent Additional
Consideration Determination Date. The fees and expenses of each Initial Contingent Additional
Consideration Expert shall be paid by the party selecting such firm. The Initial Contingent
Additional Consideration Experts shall be permitted to review all books and records and other
information of Holdco and its subsidiaries relating to (1) the business plan and financial
statements listed in Section 1(a) and (2) the calculation of the Equity Value, Non-Poker Business
FMV and Poker Business FMV as of the Contingent Additional Consideration Determination Date. The
Initial Contingent Additional Consideration Experts shall be granted access to the management of
Holdco upon reasonable prior notice to make inquiries of management relevant to the preparation of
the Initial Contingent Additional Consideration Expert Reports; provided that such
inquiries do not impose a material burden on management. Each of Parent and MG shall instruct its
respective Initial Contingent Additional Consideration Expert to (w) not consult with the other
Initial Contingent Additional Consideration Expert with respect to its view as to the Equity Value,
Non-Poker Business FMV or Poker Business FMV prior to the time that both firms have delivered their
respective opinions to Parent or MG, as applicable, (x) determine the Equity Value, Non-Poker
Business FMV and Poker Business FMV in accordance with this Annex II, (y) deliver its Initial
Contingent Additional Consideration Expert Report, together with its oral and written opinions as
to the Equity Value, Non-Poker Business FMV and Poker Business FMV on the Initial Contingent
Additional Consideration Report Deadline and (z) deliver a copy of its written opinion and its
Initial Contingent Additional Consideration Expert Report to MG and Parent.

(c) If the Initial Contingent Additional Consideration Expert Equity Values differ and (i)
the lesser Initial Contingent Additional Consideration Expert Equity Value equals or exceeds 90% of
the higher Initial Contingent Additional Consideration Expert Equity Value, (ii) the lesser Initial
Contingent Additional Consideration Expert Non-Poker Business FMV equals or exceeds 90% of the
higher Initial Contingent Additional Consideration Expert Non-Poker Business FMV and (iii) the
lesser Initial Contingent Additional Consideration Expert Poker Business FMV equals or exceeds 90%
of the higher Initial Contingent Additional Consideration Expert Poker Business FMV, then (x) the
Equity Value for purposes of calculating the Contingent Additional Consideration shall be deemed to
be an amount equal to (1) the sum of the Initial Contingent Additional Consideration Expert Equity
Values divided by (2) two, (y) the Non-Poker Business FMV for purposes of calculating the
Contingent Additional Consideration shall be deemed to be an amount equal to (1) the sum of the
Initial Contingent Additional Consideration Expert Non-Poker Business FMVs divided by (2) two, and
(z) the Poker Business FMV for purposes of calculating the Contingent Additional Consideration
shall be deemed to be an amount equal to (1) the sum of the Initial Contingent Additional
Consideration Expert Poker Business FMVs divided by (2) two. Such amounts shall be the final and
binding Equity Value, Non-Poker Business FMV and Poker Business FMV for purposes of calculating the
Contingent Additional Consideration, in the absence of manifest error in the calculation thereof or
in the preparation by any Initial Contingent Additional Consideration Expert of its report or
opinions pursuant to Section 1(b).

 

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(d) If the Initial Contingent Additional Consideration Expert Equity Values differ and
Section 1(c) does not apply, then:

(i) Within seven calendar days after the date on which Parent and MG have received
both of the Initial Contingent Additional Consideration Expert Reports (such seventh
calendar day, the “Stage 2 Contingent Additional Consideration Expert Commencement
Date”), the Initial Contingent Additional Consideration Experts shall jointly select a
third internationally recognized investment bank or independent appraiser (the “Final
Contingent Additional Consideration Expert” and, together with the Initial Contingent
Additional Consideration Experts, the “Contingent Additional Consideration Equity Value
Experts”) to, acting as an expert and not as an arbitrator, (A) prepare a report which
(1) sets forth the Final Contingent Additional Consideration Expert’s determination of the
Equity Value, Non-Poker Business FMV and Poker Business FMV, in each case as of the
Contingent Additional Consideration Determination Date (taking into consideration all
relevant facts and circumstances relating to Holdco, its subsidiaries and the Holdco
Business that are available as of the Contingent Additional Consideration Determination
Date), each of which shall be a single amount as opposed to a range, and (2) includes work
papers which indicate the basis for and calculation of such Equity Value, Non-Poker
Business FMV and Poker Business FMV (the report described in this clause (A), a “Final
Contingent Additional Consideration Expert Report”) and (B) deliver an oral and written
opinion addressed to each of Parent, on behalf of IMLL, and MG as to such Equity Value,
Non-Poker Business FMV and Poker Business FMV (the Equity Value, Non-Poker Business FMV and
Poker Business FMV amounts set forth by such report and oral and written opinions, the
“Final Contingent Additional Consideration Expert Equity Value”, “Final
Contingent Additional Consideration Expert Non-Poker Business FMV” and “Final
Contingent Additional Consideration Expert Poker Business FMV”, respectively), in each
case within 20 calendar days after the Stage 2 Contingent Additional Consideration Expert
Commencement Date. The fees and expenses of the Final Contingent Additional Consideration
Expert shall be paid 50% by Parent, on behalf of IMLL, and 50% by MG. The Final Contingent
Additional Consideration Expert shall be permitted to review all books and records and
other information of Holdco and its subsidiaries relating to the business plan and
financial statements listed in Section 1(a) and the calculation of the Equity Value,
Non-Poker Business FMV and Poker Business FMV, in each case as the Contingent Additional
Consideration Determination Date. The Final Contingent Additional Consideration Expert
shall be granted access to the management of Holdco upon reasonable prior notice to make
inquiries of management relevant to the preparation of the Final Contingent Additional
Consideration Expert Report; provided that such inquiries do not impose a material
burden on management. The Final Contingent Additional Consideration Expert shall not be
provided with the Initial Contingent Additional Consideration Expert Reports, Initial
Contingent Additional Consideration Expert Equity Values, Initial Contingent Additional
Consideration Expert Non-Poker Business FMVs or Initial Contingent Additional

 

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Consideration Expert Poker Business FMVs and shall not consult with the Initial
Contingent Additional Consideration Experts with respect thereto.

(ii) The Equity Value for purposes of calculating the Contingent Additional
Consideration shall be deemed to be an amount equal to (A) the sum of (1) the Final
Contingent Additional Consideration Expert Equity Value and (2) the Initial Contingent
Additional Consideration Expert Equity Value that is closest to the Final Contingent
Additional Consideration Expert Equity Value, divided by (B) two; provided,
however, that if the Final Contingent Additional Consideration Expert Equity Value
is lower than the lesser Initial Contingent Additional Consideration Expert Equity Value,
then the Equity Value shall be deemed to be the lesser Initial Contingent Additional
Consideration Expert Equity Value; and provided, further, that if the Final
Contingent Additional Consideration Expert Equity Value is higher than the greater Initial
Contingent Additional Consideration Expert Equity Value, then the Equity Value shall be
deemed to be the greater Initial Contingent Additional Consideration Expert Equity Value.
Such amount shall be the final and binding Equity Value, in the absence of manifest error
in the calculation thereof or in the preparation by the Final Contingent Additional
Consideration Expert or any Initial Contingent Additional Consideration Expert of its
report or opinions pursuant to this Section 1.

(iii) The Poker Business FMV for purposes of calculating the Contingent Additional
Consideration shall be deemed to be an amount equal to (A) the sum of (1) the Final
Contingent Additional Consideration Expert Poker Business FMV and (2) the Initial
Contingent Additional Consideration Expert Poker Business FMV that is closest to the Final
Contingent Additional Consideration Expert Poker Business FMV, divided by (B) two;
provided, however, that if the Final Contingent Additional Consideration
Expert Poker Business FMV is lower than the lesser Initial Contingent Additional
Consideration Expert Poker Business FMV, then the Poker Business FMV shall be deemed to be
the lesser Initial Contingent Additional Consideration Expert Poker Business FMV; and
provided, further, that if the Final Contingent Additional Consideration
Expert Poker Business FMV is higher than the greater Initial Contingent Additional
Consideration Expert Poker Business FMV, then the Poker Business FMV shall be deemed to be
the greater Initial Contingent Additional Consideration Expert Poker Business FMV. Such
amount shall be the final and binding Poker Business FMV for purposes of calculating the
Contingent Additional Consideration, in the absence of manifest error in the calculation
thereof or in the preparation by the Final Contingent Additional Consideration Expert or
any Initial Contingent Additional Consideration Expert of its report or opinions pursuant
to this Section 1.

(iv) The Non-Poker Business FMV for purposes of calculating the Contingent Additional
Consideration shall be deemed to be an amount equal to (A) the Equity Value as determined
pursuant to Section 1(d)(ii) less (B) the Poker Business FMV as determined pursuant to
Section 1(d)(iii).

 

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(e) Upon the execution and delivery by Parent and Parent’s Initial Contingent Additional
Consideration Expert of a customary confidentiality agreement with MG in form and substance
reasonably satisfactory to MG, MG will provide to such person all information reasonably requested
relating to the Net Gaming Revenues of the MG Poker Business for the period relevant to the
determination of the Equity Value and the Poker Business FMV. Such information also will be
provided to the Final Contingent Additional Consideration Expert upon such person’s execution and
delivery of such a confidentiality agreement with MG.

SECTION 2. Definitions. For purposes of this Agreement:

“Contingent Additional Consideration Determination Amount” means an amount
equal to (a) the sum of (i) the product of (A) the Poker Business FMV as of the Contingent
Additional Consideration Determination Date and (B) the Poker FMV Adjustment Factor as of
the Contingent Additional Consideration Determination Date and (ii) the Non-Poker Business
FMV as of the Contingent Additional Consideration Determination Date, less (b) the
aggregate capital contributions made by MG and the Holdco Interest Holder to Holdco after
the Closing Date and prior to the Contingent Additional Consideration Determination Date.

 

126

 

ANNEX III

to Stock and Asset Purchase Agreement

Put-Call Price

SECTION 1. Determination of Put-Call Price. (a) For a period of 15 consecutive
calendar days beginning on the date of delivery to Parent of the Prior Year Audited Financials for
any year in which a Put-Call Price is to be determined in accordance with Article XI (or, in the
case of a calculation of the Put-Call Price in connection with a Put Acceleration Event, the date
on which a Put Acceleration Indication of Interest is delivered by Parent, if later than such
date), Parent, on behalf of the Holdco Interest Holder, and MG shall attempt to reach agreement as
to the Put-Call Price as of December 31 of the immediately preceding year (the “Determination
Date”). For purposes of determining such Put-Call Price, the parties shall consider all
relevant facts and circumstances relating to Holdco, its subsidiaries and the Holdco Business as of
such Determination Date. During such 15 calendar-day period, Parent and its Representatives shall
be permitted to review all books and records and other information of Holdco and its subsidiaries
relating to (1) the Annual Information Package for such year and (2) the calculation of such
Put-Call Price. If MG and Parent reach such an agreement, then the Put-Call Price shall be deemed
to be the amount so agreed upon by MG and Parent and such amount shall be final and binding.

(b) In the event that Parent, on behalf of the Holdco Interest Holder, and MG are unable to
reach an agreement as to the Put-Call Price within the 15 calendar-day period referred to in
Section 1(a), then within seven calendar days after the expiration of such 15 calendar-day period
(such seventh calendar day for any Put-Call Price determination, the “Equity Value Expert
Commencement Date” for such Put-Call Price), Parent, on behalf of the Holdco Interest Holder,
and MG each shall designate by written notice to the other an internationally recognized investment
bank or independent appraiser (each such investment bank or independent appraiser, an “Initial
Equity Value Expert”) to, acting as experts and not as arbitrators, (i) prepare a report which
(A) sets forth such Initial Equity Value Expert’s determination of the Equity Value, the Non-Poker
Business FMV and the Poker Business FMV, in each case as of the applicable Determination Date, each
of which shall be a single amount as opposed to a range, and (B) includes work papers which
indicate the basis for and calculation of such Equity Value (each report described in this clause
(i), an “Initial Equity Value Expert Report”) and (ii) deliver to Parent, on behalf of the
Holdco Interest Holder, or MG, as the case may be, an oral and written opinion addressed to such
party as to such Equity Value, Non-Poker Business FMV and Poker Business FMV (the Equity Value,
Non-Poker Business FMV and Poker Business FMV amounts set forth by each Initial Equity Value
Expert’s report and oral and written opinions, such Expert’s “Initial Expert Equity Value”,
“Initial Expert Non-Poker Business FMV” and “Initial Expert Poker Business FMV”).
Each Initial Equity Value Expert shall deliver its Initial Equity Value Expert Report for each
Put-Call Year on the date that is 20 calendar days after the Equity Value Expert Commencement Date
for such Put-Call Price (such date, the “Initial Expert Report Deadline”), and in
determining the Initial Expert Equity Value set forth in such report,

 

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such Initial Equity Value Expert shall take into consideration all relevant facts and
circumstances relating to Holdco, its subsidiaries and the Holdco Business available as of the
Determination Date. The fees and expenses of each Initial Equity Value Expert shall be paid by the
party selecting such firm. The Initial Equity Value Experts shall be permitted to review all books
and records and other information of Holdco and its subsidiaries relating to (a) the Annual
Information Package for such year and (b) the calculation of the Equity Value, Non-Poker Business
FMV and Poker Business FMV as of the applicable Determination Date. The Initial Equity Value
Experts shall be granted access to the management of Holdco upon reasonable prior notice to make
inquiries of management relevant to the preparation of the Initial Equity Value Expert Reports;
provided that such inquiries do not impose a material burden on management. Each of Parent
and MG shall instruct its respective Initial Equity Value Expert to (w) not consult with the other
Initial Equity Value Expert with respect to its view as to the Equity Value, Non-Poker Business FMV
or Poker Business FMV prior to the time that both firms have delivered their respective opinions to
Parent or MG, as applicable, for such Put-Call Price, (x) determine the Equity Value, Non-Poker
Business FMV and Poker Business FMV in accordance with this Annex III, (y) deliver its Initial
Equity Value Expert Report, together with its oral and written opinions as to the Equity Value,
Non-Poker Business FMV and Poker Business FMV on the Initial Expert Report Deadline for such
Put-Call Price and (z) deliver a copy of its written opinion and Initial Equity Value Expert report
to MG and Parent.

(c) If the Initial Expert Equity Values, Initial Expert Non-Poker Business FMVs or Initial
Expert Poker Business FMVs for any Put-Call Price differ and (i) the lesser Initial Expert Equity
Value for such Put-Call Price equals or exceeds 90% of the higher Initial Expert Equity Value for
such Put-Call Price, (ii) the lesser Initial Expert Non-Poker Business FMV for such Put-Call Price
equals or exceeds 90% of the higher Initial Expert Equity value for such Put-Call Price and (iii)
the lesser Initial Expert Poker Business FMV equals or exceeds 90% of the higher Initial Expert
Poker Business FMV, then (A) the Equity Value applicable to such Put-Call Price shall be deemed to
be an amount equal to (1) the sum of the Initial Expert Equity Values divided by (2) two, (B) the
Non-Poker Business FMV applicable to such Put-Call Price shall be deemed to be an amount equal to
(1) the sum of the Initial Expert Non-Poker Business FMVs divided by (2) two, and (C) the Poker
Business FMV applicable to such Put-Call Price shall be deemed to be an amount equal to (1) the sum
of the Initial Expert Poker Business FMVs divided by (2) two. Such amounts shall be the final and
binding Equity Value, Non-Poker Business FMV and Poker Business FMV for such Put-Call Price, in the
absence of manifest error in the calculation thereof or in the preparation by any Initial Equity
Value Expert of its report or opinions pursuant to Section 1(b).

(d) If the Initial Expert Equity Values for any Put-Call Price differ and Section 1(c) does
not apply, then:

(i) Within seven calendar days after the date on which Parent and MG have received
both of the Initial Equity Value Expert Reports (such seventh calendar day for such
Put-Call Price, the “Stage 2 Equity Value Expert Commencement Date” for such
Put-Call Year), the Initial Equity Value Experts

 

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shall jointly select a third internationally recognized investment bank or independent
appraiser (the “Final Equity Value Expert” and, together with the Initial Equity
Value Experts, the “Equity Value Experts”) to, acting as an expert and not as an
arbitrator, (A) prepare a report which (1) sets forth the Final Equity Value Expert’s
determination of the Equity Value, Non-Poker Business FMV and Poker Business FMV, in each
case as of the applicable Determination Date (taking into consideration all relevant facts
and circumstances relating to Holdco, its subsidiaries and the Holdco Business available as
of the Determination Date), each of which shall be a single amount as opposed to a range,
and (2) includes work papers which indicate the basis for and calculation of such Equity
Value, Non-Poker Business FMV and Poker Business FMV (the report described in this clause
(A), a “Final Equity Value Expert Report”) and (B) deliver an oral and written
opinion addressed to each of Parent, on behalf of the Sellers, and MG as to such Equity
Value, Non-Poker Business FMV and Poker Business FMV (the Equity Value, Non-Poker Business
FMV and Poker Business FMV amounts set forth by such report and oral and written opinions,
the “Final Expert Equity Value”, “Final Expert Non-Poker Business FMV” and
“Final Expert Poker Business FMV”, respectively), in each case within 20 calendar
days after the Stage 2 Equity Value Expert Commencement Date. The fees and expenses of the
Final Equity Value Expert shall be paid 50% by Parent, on behalf of the Holdco Interest
Holder, and 50% by MG. The Final Equity Value Expert shall be permitted to review all
books and records and other information of Holdco and its subsidiaries relating to (a) the
Annual Information Package for such year and (b) the calculation of the Equity Value,
Non-Poker Business FMV and Poker Business FMV as of the Determination Date. The Final
Equity Value Expert shall be granted access to the management of Holdco upon reasonable
prior notice to make inquiries of management relevant to the preparation of the Final
Equity Value Expert Report; provided that such inquiries do not impose a material
burden on management. The Final Equity Value Expert shall not be provided with the Initial
Equity Value Expert Reports, Initial Expert Equity Values, Initial Expert Non-Poker
Business FMVs or Initial Expert Poker Business FMVs and shall not consult with the Initial
Equity Value Experts with respect thereto.

(ii) The Equity Value applicable to such Put-Call Price shall be deemed to be an
amount equal to (A) the sum of (1) the Final Expert Equity Value for such Put-Call Price
and (2) the Initial Expert Equity Value for such Put-Call Price that is closest to the
Final Expert Equity Value for such Put-Call Price, divided by (B) two; provided,
however, that if the Final Expert Equity Value for such Put-Call Price is lower
than the lesser Initial Expert Equity Value for such Put-Call Price, then the Equity Value
applicable to such Put-Call Price shall be deemed to be the lesser Initial Expert Equity
Value; and provided, further, that if the Final Expert Equity Value for
such Put-Call Price is higher than the greater Initial Expert Equity Value for such
Put-Call Price, then the Equity Value applicable to such Put-Call Price shall be deemed to
be the greater Initial Expert Equity Value for such Put-Call Price. Such amount shall be
the final and binding Equity Value applicable to such Put-Call Price, in the absence of
manifest error in

 

129

 

the calculation thereof or in the preparation by the Final Equity Value Expert or any
Initial Equity Value Expert of its report or opinions pursuant to this Section 1.

(iii) The Poker Business FMV applicable to such Put-Call Price shall be deemed to be
an amount equal to (A) the sum of (1) the Final Expert Poker Business FMV for such Put-Call
Price and (2) the Initial Expert Poker Business FMV for such Put-Call Price that is closest
to the Final Expert Poker Business FMV for such Put-Call Price, divided by (B) two;
provided, however, that if the Final Expert Poker Business FMV for such
Put-Call Price is lower than the lesser Initial Expert Poker Business FMV for such Put-Call
Price, then the Poker Business FMV applicable to such Put-Call Price shall be deemed to be
the lesser Initial Expert Poker Business FMV; and provided, further, that
if the Final Expert Poker Business FMV for such Put-Call Price is higher than the greater
Initial Expert Poker Business FMV for such Put-Call Price, then the Poker Business FMV
applicable to such Put-Call Price shall be deemed to be the greater Initial Expert Poker
Business FMV for such Put-Call Price. Such amount shall be the final and binding Poker
Business FMV applicable to such Put-Call Price, in the absence of manifest error in the
calculation thereof or in the preparation by the Final Equity Value Expert or any Initial
Equity Value Expert of its report or opinions pursuant to this Section 1.

(iv) The Non-Poker Business FMV for purposes applicable to such Put-Call Price shall
be deemed to be an amount equal to (A) the Equity Value for such Put-Call Price less (B)
the Poker Business FMV for such Put-Call Price.

(e) Upon the execution and delivery by Parent of a customary confidentiality agreement with
MG in form and substance reasonably satisfactory to MG, MG will provide to Parent all information
reasonably requested relating to the Net Gaming Revenues of the MG Poker Business for the period
relevant to the determination of the Equity Value and the Poker Business FMV. Such information
also will be provided to Parent’s Initial Equity Value Expert and to the Final Equity Value Expert
upon such person’s execution and delivery of such a confidentiality agreement with MG.

SECTION 2. Definitions. For purposes of this Agreement:

“Downside Value Protection Amount” means, for any Put-Call Price, the greater of (a)
zero and (b) the excess of:

(i) the product of (A)(1) the final and binding Equity Value applicable to such
Put-Call Price (as determined in accordance with this Annex III), less (2) the aggregate
amount of dividends received by MG and the Holdco Interest Holder in respect of the Holdco
Interests after the applicable Determination Date and prior to the Put-Call Closing
applicable to such Put-Call Price and (B) the percentage of the issued and outstanding
 shares of Holdco that would be owned by MG following the consummation of the Put-Call
Closing applicable to such Put-Call Price,

 

130

 

over

(ii) (A) the sum of:

(1) the Reference Value Adjustment Payment; and

(2) any Contingent Additional Consideration paid by MG prior to such Put-Call
Closing; and

(3) the aggregate amount of Put-Call Prices paid by MG prior to such Put-Call
Closing; and

(4) any capital contribution made by MG prior to such Put-Call Closing;

less (B) any dividends received by MG prior to such Put-Call Closing.

“Holdco NGR Adjustment Factor” means, as of a date with respect to a Holdco
Acquisition, the quotient of:

(a) the sum of (i) the Net Gaming Revenue, calculated on a Pro Forma Basis, of the
business that is the subject of such Holdco Acquisition for the most-recently ended
12-month period immediately prior to the date of such Specified Acquisition and (ii) the
Net Gaming Revenue, calculated on a Pro Forma Basis, of Holdco and its subsidiaries for the
most-recently ended 12-month period immediately prior to the date of such Specified
Acquisition; and

(b) the Net Gaming Revenue, calculated on a Pro Forma Basis, of Holdco and its
subsidiaries for the most-recently ended 12-month period immediately prior to the date of
such Specified Acquisition.

“Maximum NGR Amount” means, as of a date, (a) if no Holdco Acquisitions have occurred
on or prior to such date, $80,000,000, and (b) if one or more Holdco Acquisitions have occurred on
or prior to such date, the product of (i) $80,000,000 and (ii) the product of the Holdco NGR
Adjustment Factors for all Holdco Acquisitions that have occurred on or prior to such date.

“Net Gaming Revenue” means, with respect to a person, and without duplication, the sum
of (a) fees (including rake) paid to such person by players or end users of such person (less
refunded tournament fees), (b) net player losses in casino-style games, games of chance or other
cash wagering activity, (c) cash payouts where payment has been made but not collected by the
winner thereof within 12 months from the date of payout, net of any such payments actually claimed
after such 12-month period plus (d) the change in accounting provision for abandoned accounts,
minus the sum of (i) the net cash value of amounts credited to player accounts or prize
pools related to player retention or promotion (other than amounts classified as marketing expenses
consistent

 

131

 

with past practice) and (ii) adjustment for accounting provisions for bad debt with respect to
players or end users.

“Put-Call Price” means, with respect to the Holdco Interests to be acquired at any
Put-Call Closing, an amount equal to (a) the sum of (i) the product of (A) the Poker Business FMV
as of the date of the Determination Date applicable to such Put-Call Closing and (B) the Poker FMV
Adjustment Factor as of such Determination Date and (ii) the Non-Poker Business FMV as of such
Determination Date (as determined in accordance with this Annex III), less the aggregate amount of
dividends received by MG and the Holdco Interest Holder in respect of the Holdco Interests after
the applicable Determination Date and prior to such Put-Call Closing, multiplied by (b) the
percentage of the issued and outstanding shares of Holdco represented by the number of Holdco
Interests to be acquired by MG at such Put-Call Closing; provided, however, that if
the Net Gaming Revenues of Holdco and its subsidiaries, on a consolidated basis, for the most
recently completed fiscal year of Holdco prior to such Put-Call Closing, as set forth on the
audited financial statements of Holdco and its subsidiaries for such completed fiscal year, are
less than the Maximum NGR Amount, then the Put-Call Price for such Put-Call Closing shall be equal
to the lesser of (x) the Downside Value Protection Amount for such Put-Call Closing and (y) the
product obtained by multiplying the amounts described in clauses (a) and (b) above.

 

132

 

Exhibit
4.42(2)

Execution Version

AMENDMENT NO. 1 (this “Amendment”) dated as of March 31,
2010, to the STOCK AND ASSET PURCHASE AGREEMENT (the “Agreement”)
dated as of December 15, 2009, among MANGAS GAMING, a société par actions
simplifiée registered with the Trade and Companies Registry of Paris under
the number 501 420 939 with its registered office located at 5 rue
François 1er, 75008 Paris and organized under the laws of France
(“MG”), GIGAMEDIA LIMITED, a company organized under the laws of
Singapore (“Parent”), ULTRA INTERNET MEDIA, S.A., a company
organized under the laws of Nevis (“UIM”), the subsidiaries of
Parent and UIM listed on the signature pages thereto, the other persons
who joined the Agreement as parties thereto pursuant to Section 5.18 of
the Agreement and the Joinder Agreement dated as of March 31, 2010, and,
solely for the purposes of Section 5.17 of the Agreement, MONTE-CARLO SBM
INTERNATIONAL S.A.R.L., a company with its registered office located at
67, rue Ermesinde, L-1469 Luxembourg, organized under the laws of
Luxembourg (“SBM”).

WHEREAS Parent, the Sellers, MG and the other parties to the Agreement desire to amend the
Agreement as provided in this Amendment;

NOW, THEREFORE, in consideration of the covenants and agreements contained in this Amendment,
the parties hereto hereby agree as follows:

SECTION 1.01. Amendments to Section 1.01. (a)  Section 1.01(b)(iv)(C) of the
Agreement is hereby amended and restated in its entirety as follows:

“(C) UIM Canco 3 shall transfer, sell, convey, assign and deliver to Everest Gaming
Malta, and Everest Gaming Malta shall purchase, acquire and accept from UIM Canco 3, all
the right, title and interest as of such time of UIM Canco 3 in, to and under the UIM
General Assets (other than (1) the Contracts set forth on Exhibit A to Amendment No. 1 and
(2) the UIM-EGL Receivable), in each case free and clear of all liabilities (other than
Assumed Liabilities), for (x) an amount in cash equal to a portion of the Cash Purchase
Price and (y) the assumption from UIM of the UIM General Liabilities (other than the
Assumed Liabilities to the extent arising from the Contracts set forth on Exhibit A to
Amendment No. 1 and the UIM-EGL Receivable);”

(b) Section 1.01(b)(iv) is hereby amended by inserting the following new clauses (D) and (E)
at the end thereof:

“(D) UIM Canco 3 shall transfer, sell, convey, assign and deliver to Cordovan
Limited, and Cordovan Limited shall purchase, acquire and accept from UIM Canco 3, all the
right, title and interest as of such time of UIM Canco 3 in, to and under the Contracts set
forth on Exhibit A to Amendment No. 1, in each

 

1

 

case free and clear of all liabilities (other than Assumed Liabilities), for (x) an
amount in cash equal to a portion of the Cash Purchase Price and (y) the assumption from
UIM of the Assumed Liabilities to the extent arising from the Contracts set forth on
Exhibit A to Amendment No. 1;

(E) UIM Canco 3 shall transfer, sell, convey, assign and deliver to New Maltese
Holdco, and New Maltese Holdco shall purchase, acquire and accept from UIM Canco 3, all the
right, title and interest as of such time of UIM Canco 3 in, to and under the UIM-EGL
Receivable, free and clear of all liabilities (other than Assumed Liabilities), for (x) an
amount in cash equal to the outstanding amount of the UIM-EGL Receivable and (y) the
assumption from UIM of the Assumed Liabilities to the extent arising from the UIM-EGL
Receivable”;

(c) Section 1.01(b)(v) of the Agreement is hereby amended and restated in its entirety as
follows:

“(v)(A) CESL shall transfer, sell, convey, assign and deliver to Holdco, and Holdco
shall purchase, acquire and accept from CESL, (1 ) all the right, title and interest as of
such time of CESL in, to and under the Acquired Assets owned by CESL (other than the
Contracts set forth on Exhibit B to Amendment No. 1 and the capital stock of, or other
equity or voting interests in, CIDC Delaware, CIDC Quebec, IMLL and CIDC UK), free and
clear of all liabilities (other than Assumed Liabilities) and (2) all the issued shares in
the capital of, and other equity and voting interests in, CIDC UK, free and clear of all
encumbrances except as imposed by applicable securities laws, for (x) a portion of the Cash
Purchase Price and (y) the assumption of the Assumed Liabilities of CESL (except to the
extent arising from the Contracts listed on Exhibit B to Amendment No. 1); and

(B) CESL shall transfer, sell, convey, assign and deliver to Everest Gaming Malta, and
Everest Gaming Malta shall purchase, acquire and accept from CESL, all the right, title and
interest as of such time of CESL in, to and under the Contracts set forth on Exhibit B to
Amendment No. 1, free and clear of all liabilities (other than Assumed Liabilities), for
(x) a portion of the Cash Purchase Price and (y) the assumption of the Assumed Liabilities
of CESL to the extent arising from the Contracts listed on Exhibit B to Amendment No. 1;”

SECTION 1.02. Amendments to Section 1.02. Section 1.02(b) of the Agreement is hereby
amended by deleting the text “and” at the end of clause (v) thereof, replacing the text “.” with
the text “; and” at the end of clause (vi) thereof and inserting the following new clause (vii)
immediately after clause (vi) thereof:

“(vii)(A) the Stock Purchase Agreement to be entered into by and between IMLL and GV
Experiences International Corporation relating to the sale to IMLL of the capital stock of
UIM, (B) the Transfer Agreement to be entered into by and between UIM and 9218-2146 Quebec
Inc. pursuant to this Agreement,

 

2

 

(C) the Transfer Agreement to be entered into by and between UIM and 9218-2161 Quebec
Inc. and related agreements in connection with the transfer of UIM Trademarks from UIM to
9218-2161 Quebec Inc. pursuant to this Agreement, (D) the Transfer Agreement to be entered
into by and between UIM and 9218-2179 Quebec Inc. pursuant to this Agreement, (E) the
Transfer Agreement to be entered into by and between CIDC Quebec and GIS pursuant to this
Agreement and (E) the bank accounts of the Asset Sellers.”

SECTION 1.03. Amendments to Section 2.02. (a) Section 2.02(a)(i) is hereby amended
by deleting all references therein to “Closing Time” and replacing such references with
“Calculation Time”.

(b) Section 2.02(a)(i) is hereby amended by deleting the reference to “(the “Estimated
Closing Statement”)” and replacing it with “(the “Estimated March 31 Statement”)”. All
references to “Estimated Closing Statement” in the Agreement are hereby deleted and replaced with
“Estimated March 31 Statement”.

(c) Sections 2.02(a)(ii)(D) and 2.02(a)(ii)(E) are hereby amended by deleting the text “prior
to the Closing” in each place in which it appears therein and replacing it with the text “prior to
the Calculation Time”.

SECTION 1.04. Amendments to Section 2.04. (a) Section 2.04(a) and (b) are hereby
amended by deleting all references therein to “Closing Time” and replacing such references with
“Calculation Time”.

(b) Section 2.04(a) is hereby amended by deleting the reference to “(the “Closing
Statement”)” and replacing it with “(the “March 31 Statement”)”. All references to
“Closing Statement” in the Agreement are hereby deleted and replaced with “March 31 Statement”.

(c) Section 2.04(a) is hereby amended by deleting the reference to “(the “Closing Funds
Held on Deposit Liabilities”)” and replacing it with “(the “March 31 Funds Held on Deposit
Liabilities”)”. All references to “Closing Funds Held on Deposit Liabilities” in the
Agreement are hereby deleted and replaced with “March 31 Funds Held on Deposit Liabilities”.

(d) Section 2.04(a) is hereby amended by deleting the reference to “(the “Closing Working
Capital Amount”)” and replacing it with “(the “March 31 Working Capital Amount”)”. All
references to “Closing Working Capital Amount” in the Agreement are hereby deleted and replaced
with “March 31 Working Capital Amount”.

(e) The final sentence of Section 2.04(a) is hereby amended and restated in its entirety as
follows:

“In no event shall any actions taken by or relating to Parent, the Sellers, the Conveyed
Subsidiaries or the Businesses between the Calculation Time and the Closing, or by or
relating to MG, Holdco or the Businesses following the Closing, with respect to the
accounting books and records of the Businesses on which the

 

3

 

March 31 Statement is to be based (including any changes in any reserve or other account)
or with respect to the operations or results of the Businesses be considered in the
determination of, or otherwise have any effect on, the March 31 Funds Held on Deposit
Liabilities or the March 31 Working Capital Amount.”

(f) Sections 2.04(c)(iv) and (v) are hereby amended by deleting the text “prior to the
Closing” in each place in which it appears therein and replacing it with the text “prior to the
Calculation Time”.

SECTION 1.05. Amendments to Section 5.01. (a) Section 5.01(a)(xv) is hereby amended
by (i) deleting all references therein to “pre-Closing periods” and replacing such references with
“pre-Calculation Time periods”, (ii) deleting all references therein to “post-Closing periods” and
replacing such references with “post-Calculation Time periods” and (iii) by adding at the end of
clause (B) thereof, but before the text “or”, the following text:

“(it being agreed that the funds held in transit received by the Conveyed Subsidiaries
prior to the Calculation Time as set forth in Schedule 1.05 of Amendment No. 1 shall not be
considered receivables for purposes of this clause (B))”.

(b) Section 5.01(a) is further amended by deleting the text “or” at the end of clause (xxii)
thereof, inserting the following new clause (xxiii) immediately after clause (xxii) thereof and
renumbering the final clause thereof as clause (xxiv):

“(xxiii) enter into any Contract or transaction with Parent or any of its affiliates
after the Calculation Time, other than the Contracts and transactions set forth on Exhibit
C to Amendment No. 1 or as may be approved in writing by MG; or”

(c) The final sentence of Section 5.01(d) is hereby amended and restated in its entirety as
follows:

“Prior to the Calculation Time, Parent shall pay, or cause to be paid or otherwise
canceled, all Indebtedness (x) owed to Parent and its subsidiaries (other than the Sellers
and Conveyed Subsidiaries), on the one hand, by the Sellers and Conveyed Subsidiaries, on
the other hand, and (y) owed by Parent and its subsidiaries (other than the Sellers and
Conveyed Subsidiaries), on the one hand, to the Sellers and Conveyed Subsidiaries, on the
other hand, other than the IMLL Note, the UIM Note, any Indebtedness by or among UIM on the
one hand and IMLL on the other hand and the EGL Loan (as defined below) and the EGFS Note.”

SECTION 1.06. Amendments to Section 5.15. Section 5.15 of the Agreement is hereby
amended and restated in its entirety as follows:

“SECTION 5.15. Treatment of Conveyed Subsidiaries’ Indebtedness and Cash.
Notwithstanding anything to the contrary in Section 5.01, prior to the Calculation Time (a)
Parent and the Sellers shall, or shall cause the Conveyed

 

4

 

Subsidiaries to, repay in full all outstanding Indebtedness of the Conveyed Subsidiaries
(other than Intercompany Indebtedness, the EGFS Note and the loan of $4,300,000 by
GigaMedia International Holdings Limited to Everest Gaming Malta (the “EGL Loan”)),
and cause all related Liens on the assets of the Conveyed Subsidiaries to be released, and
(b) Parent and the Sellers shall use all reasonable efforts to remove all cash and cash
equivalents from the Conveyed Subsidiaries in excess of the Funds Held on Deposit
Liabilities of the Asset Sellers and Conveyed Subsidiaries. Notwithstanding anything in
this Agreement to the contrary, Parent and the Sellers shall not remove any cash or cash
equivalents from any Conveyed Subsidiary after the Calculation Time (whether by dividend,
distribution, loan by a Conveyed Subsidiary to Parent, the Sellers or any of their
subsidiaries or affiliates, loan to a Conveyed Subsidiary by Parent, the Sellers or any of
their subsidiaries or affiliates, investment in or capital contribution to any person by a
Conveyed Subsidiary or any other transaction or arrangement), provided that Parent
and the Sellers shall cause EGL to repay the EGL Loan prior to the Closing.

SECTION 1.07. Amendments to Section 11.05. Section 11.05(a) of the Agreement is
hereby amended by inserting the following new clause (iii) at the end thereof:

“(iii) In the case of any Put-Call Closing (A) in the 2013, 2014 or 2015 Put-Call Year
or in connection with any Put Acceleration Event for which a Seller Election Notice is
delivered, the Seller Exercise Period shall have expired, (B) in the 2015 or 2016 Put-Call
Year (other than in connection with any Call Acceleration Event) for which an MG Election
Notice is delivered, the MG Exercise Period shall have expired, or (C) in connection with
any Call Acceleration Event, MG shall have delivered to Parent, on behalf of the Holdco
Interest Holder, a written notice of MG’s election to exercise its Call Rights in
connection with such Call Acceleration Event in accordance with Section 11.07(c).”

SECTION 1.08. Amendments to Section 12.04. (a) Section 12.04(b) is hereby amended by
inserting the following new defined terms therein (in appropriate alphabetical order):

“Amendment No. 1” means Amendment No. 1 to this Agreement, dated as of March
31, 2010, among MG, Parent, UIM, the subsidiaries of MG, Parent and UIM listed on the
signature pages thereto and, solely for the purposes of Section 5.17 hereof, SBM.

“Calculation Time” means 23:59, Greenwich Mean Time, on March 31, 2010.

“Cordovan Limited” means Cordovan Limited, a company incorporated under the
laws of Gibraltar and a direct, wholly owned subsidiary of New Maltese Holdco.

 

5

 

“EGFS Note” means the promissory note, in an aggregate principal amount of
$1,500,000.00, dated as of the date of Amendment No. 1 by Everest Gaming Financial Services
in favor of GigaMedia International Holding Limited in the form attached to Amendment No. 1
as Exhibit D.

“UIM-EGL Receivable” means the Intercompany Indebtedness owed, as of the date
of Amendment No. 1, by Everest Gaming Malta to UIM in an aggregate principal amount of
$9,410,000.

(b) Clause (d) of the definition of the term “Funds Held on Deposit Liabilities” is hereby
amended by deleting all references therein to “Closing Time” and replacing such references with
“Calculation Time”.

(c) The definition of the term “Outside Date” is hereby amended by replacing the text
“March 31, 2010” with the text “April 15, 2010” in each place in which it appears therein.

(d) The definition of the term “Working Capital Amount” is hereby amended by (i) inserting
the text “the EGL Loan, the EGFS Note and” immediately prior to the text “all Excluded Assets and
Excluded Liabilities” in the second proviso to the first sentence thereof and (ii) deleting all
references therein to “Closing Time” and replacing such references with “Calculation Time”.

SECTION 1.09. Additional Agreements. (a)  Prior to the Closing, Parent shall cause
Everest Gaming Financial Services and GigaMedia International Holding Limited to execute and
deliver the EGFS Note and shall cause GigaMedia International Holding Limited to advance cash in an
amount equal to $1,500,000.00 to Everest Gaming Financial Services.

(b) At the Closing (i) MG shall, and Parent shall cause Everest Gaming Financial Services and
GigaMedia International Holding Limited to, execute and deliver an assignment and assumption
agreement substantially in the form attached as Exhibit A to the EGFS Note and (ii) MG shall pay
to GigaMedia International Holding Limited an amount in cash equal to $900,000.00 pursuant to the
terms of such assignment and assumption agreement.

(c) The funds lent under the EGFS Note and under the EGL Loan shall not be included in the
amount of cash and cash equivalents shown on the Estimated March 31 Statement or the March 31
Statement.

(d) The amounts owed to the Conveyed Subsidiaries by Paysafe Card and Wirecard as of the
Calculation Time shall not be included in the Working Capital Amount and shall not be included in
the amount of cash and cash equivalents shown on the Estimated March 31 Statement or the March 31
Statement. Such amounts owed by Paysafe Card and Wirecard as of the Calculation Time were equal to
$1,704,000.

(e) The working capital amounts taken into account for purposes of determining the Proposed
Allocation shall not affect in any way the calculation of the

 

6

 

Working Capital Amount for purposes of the Estimated March 31 Statement or the March 31
Statement.

(f) Prior to the date on which the Second WSOP Installment (or any lesser amount agreed upon
by the parties in lieu thereof), or any other amount shall be paid (which date shall be subject to
the consent of each of Parent, on behalf of the Holdco Interest Holder, and MG, which consents
shall not be unreasonably withheld or delayed) to the counterparty under the WSOP Agreement, (i) MG
shall contribute to Holdco (or one or more of Holdco’s subsidiaries designated by Holdco) an amount
in cash equal to 60% of such amounts and (ii) Parent, on behalf of the Holdco Interest Holder,
shall contribute to Holdco (or one or more of Holdco’s subsidiaries designated by Holdco) an amount
in cash equal to 40% of such amounts. If such amounts are not paid to the counterparty under the
WSOP Agreement (or as directed by the court in the WSOP Litigation) within five business days after
such agreed upon payment date, all of such funds shall be promptly returned to MG and Parent, as
the case may be. Notwithstanding anything in the Agreement or this Amendment to the contrary, the
Second WSOP Installment shall not be paid after the Calculation Time and prior to the Closing
without the prior written consent of MG, which consent shall not be unreasonably withheld or
delayed.

(g) In the event that a bond is required to be posted, or any amount is required to be paid,
by the court in connection with the pending litigation between UIM and Harrah’s Entertainment Inc.
relating to the WSOP Agreement (the “WSOP Litigation”), in each case to the extent
requiring an actual cash payment to be made, then either:

(i) (A) MG shall contribute to Holdco (or one or more of Holdco’s subsidiaries
designated by Holdco) an amount in cash equal to 60% of the amount of such cash payment,
(B) Parent, on behalf of the Holdco Interest Holder, shall contribute to Holdco (or one or
more of Holdco’s subsidiaries designated by Holdco) an amount in cash equal to 40% of the
amount of such cash payment, and (C) Holdco shall, or shall cause one or more of its
subsidiaries to, make such payment;

(ii) Parent, on behalf of the Holdco Interest Holder, shall directly pay 40% of such
amount and MG shall directly pay 60% of such amount as shall be so required; or

(iii) if such payment has already been paid 100% by Parent or its Affiliates (other
than Holdco and its subsidiaries), then MG shall reimburse Parent and such Affiliates for
60% of the amount so paid.

(h) As of the Closing, Holdco shall assume control of the WSOP Litigation and any litigation
relating to the WSOP Litigation or the subject matter thereof (including, in each case, any
amendments thereof, whether to add plaintiffs, causes of action, remedies or otherwise) and
thereafter all decisions and actions with respect thereto (including with respect to any
settlement discussions, decisions to settle

 

7

 

such litigation and the terms and conditions of any such proposed or final settlement) shall
be made solely at the direction of the Mangas representatives on the Holdco board of directors
(notwithstanding anything to the contrary in the Shareholders Agreement); provided that, if such
settlement would require Parent or any of its affiliates to (x) take any action or become subject
to any restriction (other than a release of claims related to the WSOP Agreement) or (y) pay more
than 40% of any amount required to be paid pursuant to such settlement, then such settlement shall
require the prior written consent of Parent, which consent shall not be unreasonably withheld or
delayed. MG agrees to consult with Parent from time to time, and at the reasonable request of
Parent, with respect to the progress of the such litigation (it being understood and agreed that
no consent or approval by Parent or any of its affiliates shall be required, except as set forth
above). Any amount due under settlement of such litigation shall be either paid by Holdco or
funded 60% by MG and 40% by Parent, and, if funded by MG and Parent, shall be paid using the
procedures set forth in paragraph (g) above.

(i) All expenses incurred in connection with the WSOP Litigation incurred after the Closing
Time shall be either paid by Holdco or funded 60% by MG and 40% by Parent, and, if funded by MG
and Parent, shall be paid using the procedures set forth in paragraph (g) above.

(j) MG and Parent acknowledge that (i) Parent has not received a consent to assign the WSOP
Agreement, and therefore the WSOP Agreement may be terminated in accordance with its terms as a
result of the transactions contemplated by this Agreement and (ii) assignment of the WSOP
Agreement is subject to the notice of termination of the WSOP Agreement sent by UIM to Harrah’s
License Company, LLC, dated April 1, 2010. Neither the failure to obtain such consent, nor the
termination of the WSOP Agreement, shall be a breach of the Agreement.

(k) In the event that Holdco or any of its affiliates receives a refund of all or any portion
of the First WSOP Installment, MG and Parent shall cause Cordovan Limited to promptly pay the full
amount of such refund to Parent or its designee.

(l) Subject to the satisfaction (or, to the extent permitted by Applicable Law, waiver by the
party or parties entitled to the benefits thereof) of the conditions set forth in Article VI of
the Agreement, other than conditions that by their nature are to be satisfied as of the Closing,
by 5:00 p.m. (EDT) on April 5, 2010 and subject to the satisfaction (or, to the extent permitted
by Applicable Law, waiver by the party or parties entitled to the benefits thereof) of the
conditions set forth in Article VI of the Agreement on April 7, 2010, the parties to the Agreement
agree that the Closing shall occur on April 7, 2010 or as soon as possible thereafter,
notwithstanding the five business day requirement contained in Section 2.01 of the Agreement.

(m) Parent and the Sellers shall use their commercially reasonable efforts to make available
to Holdco and its subsidiaries the economic claims, rights and benefits of Parent and the Sellers
under the Contracts listed on Exhibit E hereto, which may be effected through arrangements
including subcontracting, sublicensing or subleasing to Holdco and its subsidiaries of any and all
rights of Parent and the Sellers

 

8

 

thereunder and shall include the enforcement by Parent and the Sellers of such rights. To
the extent, and only to the extent, Holdco or one or more of its subsidiaries is able to receive
the economic claims, rights and benefits under such Contracts, Holdco (or its applicable
subsidiary) shall be responsible for the liabilities, if any, arising thereunder.

SECTION 1.10. Interim Period Expenses. (a)  Within 60 days after the Closing Date,
Parent shall prepare and deliver to MG a statement (the “Expense Statement”) setting forth
the amount of funds expended by the Parent Asset Sellers (net of any cash received by Parent, the
Parent Asset Sellers or any of their affiliates (other than Conveyed Subsidiaries) from Conveyed
Subsidiaries from and including April 1, 2010, other than (i) payments made pursuant to Sections
1.01 or 2.02(b) of the Agreement and (ii) repayment of the EGL Loan) in the ordinary course of
business for the benefit of the Businesses from (and including) April 1, 2010 through the Closing,
other than Excluded Liabilities (except as set forth on Schedule 1.10 to Amendment No. 1) (the
“Interim Expenses”).

(b) During the 30-day period following receipt by MG of the Expense Statement, MG and its
Representatives shall be permitted to review all books and records and other information of Parent
Asset Sellers and their respective Representatives relating to the Expense Statement. The Expense
Statement shall become final and binding upon the parties on the 30th day following
delivery thereof, unless MG gives written notice of its disagreement with the Expense Statement
(the “Expense Notice of Disagreement”) to Parent prior to such date which shall specify the nature
of any disagreement so asserted. Any Expense Notice of Disagreement shall (x) specify in
reasonable detail the nature of the disagreement so asserted and (y) only include disagreements
that are (1) based on mathematical errors or (2) based on the Interim Expenses as set forth on the
Expense Statement, not being properly calculated consistent with this Agreement. If an Expense
Notice of Disagreement is given by MG in a timely manner, then the Expense Statement (as revised in
accordance with this sentence) shall become final and binding upon the parties hereto on the
earlier of (A) the date the parties hereto resolve in writing any differences they have with
respect to the matters specified in the Expense Notice of Disagreement and (B) the date any
disputed matters specified in the Notice of Disagreement are finally resolved in writing by the
Accounting Firm. During the 30-day period following the delivery of an Expense Notice of
Disagreement, the parties hereto shall seek in good faith to resolve in writing any differences
that they may have with respect to the matters specified in the Expense Notice of Disagreement.
If, at the end of such 30-day period, the parties hereto are unable to so resolve any such
differences, the parties hereto shall submit to the Accounting Firm for resolution any and all
matters that remain in dispute and that were included in the Expense Notice of Disagreement. The
Accounting Firm, acting as experts and not as arbitrators, shall be instructed to render its
determination of all matters submitted to it within 60 days following submission. The parties
hereto agree that they shall be bound by the determination of the Accounting Firm. Judgment may be
entered upon the determination of the Accounting Firm in any court having jurisdiction over the
party against which such determination is to be enforced. The fees and expenses of the Accounting
Firm incurred pursuant to this Section 1.10 shall be borne 50% by MG and 50% by Parent. The fees
and disbursements of the advisors of Parent incurred in connection with review of the

 

9

 

Expense Statement and any Expense Notice of Disagreement shall be borne by Parent, and the
fees and expenses of MG’s advisors and any advisor to Holdco appointed by MG incurred in connection
with the Expense Statement and any Expense Notice of Disagreement shall be borne by MG.

(c) Within 5 days after the Expense Statement becomes final and binding on the parties, Holdco
shall pay or cause the Conveyed Subsidiaries to pay to Parent an amount equal to 100% of, the
amount of Interim Expenses as set forth on such Expense Statement, in each case by wire transfer to
an account to be designated by Parent.

SECTION 1.11. Waivers. (a)  MG hereby waives compliance by Parent, the Sellers and
the Conveyed Subsidiaries with respect to any representation, warranty or covenant in the
Agreement, in each case solely to the extent necessary to permit the issuance and existence of the
EGFS Note.

(b) MG hereby waives compliance by Parent and the Sellers with Section 5.15(b) of the
Agreement solely with respect to the amount of the EGFS Note.

(c) MG and Holdco hereby waive the requirement set forth in Section 2.02(a)(i) of the
Agreement that five business days elapse between the delivery of the Estimated March 31 Statement
and the Closing Date.

(d) MF hereby waives compliance by Parent and the Sellers with Section 5.01 of the Agreement
solely to the extent necessary to permit the making of the EGL Loan and EGFS Note and repayment of
the EGL Loan prior to Closing.

SECTION 1.12. Interpretation; Exhibits; Certain Definitions. When a reference is made
in this Amendment to a Section or Exhibit, such reference shall be to a Section or Exhibit of this
Agreement unless otherwise indicated. The headings contained in this Amendment are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Amendment.
Whenever the words “include”, “includes” or “including” are used in this Amendment, they shall be
deemed to be followed by the words “without limitation”. The words “hereof”, “hereto”, “hereby”,
“herein” and “hereunder” and words of similar import when used in this Amendment shall refer to
this Amendment as a whole and not to any particular provision of this Amendment. The term “or” is
not exclusive. The word “extent” in the phrase “to the extent” shall mean the degree to which a
subject or other thing extends, and such phrase shall not mean simply “if”. Capitalized terms used
but not defined herein have the meanings assigned to them in the Agreement. The definitions
contained in this Amendment are applicable to the singular as well as the plural forms of such
terms. References to a person are also to its permitted successors and assigns. Unless otherwise
specifically indicated, all references to “dollars” and “$” will be deemed references to the lawful
money of the United States of America.

SECTION 1.13. The Agreement. Except as specifically amended or supplemented hereby,
the Agreement shall continue in full force and effect in accordance with the provisions thereof as
in existence on the date hereof. After the date hereof, any

 

10

 

reference to the Agreement shall mean the Agreement as amended or modified hereby;
provided that any reference in the Agreement to “the date hereof” and “the date of this
Agreement”, and phrases of similar import, shall in all instances be and continue to refer to
December 15, 2009, and not the date of this Amendment.

SECTION 1.14. Counterparts. This Amendment may be executed in two or more
counterparts, all of which shall be considered one and the same agreement, and shall become
effective when one or more such counterparts have been signed by each of the parties and delivered
to the other parties.

SECTION 1.15. Consent to Jurisdiction. Each party irrevocably submits to the
exclusive jurisdiction of (a) the Supreme Court of the State of New York, New York County, and
(b) the United States District Court for the Southern District of New York, for the purposes of any
suit, action or other proceeding arising out of this Amendment or any transaction contemplated
hereby. Each party agrees to commence any such action, suit or proceeding either in the United
States District Court for the Southern District of New York or if such suit, action or other
proceeding may not be brought in such court for jurisdictional reasons, in the Supreme Court of the
State of New York, New York County. Each party further agrees that service of any process,
summons, notice or document by U.S. registered mail to such party’s respective address set forth
above shall be effective service of process for any action, suit or proceeding in New York with
respect to any matters to which it has submitted to jurisdiction in this Section 1.15. Each party
irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or
proceeding arising out of this Amendment or the transactions contemplated hereby in (i) the Supreme
Court of the State of New York, New York County, or (ii) the United States District Court for the
Southern District of New York, and hereby and thereby further irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such action, suit or proceeding
brought in any such court has been brought in an inconvenient forum.

SECTION 1.16. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH
STATE TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

SECTION 1.17. Waiver of Jury Trial. Each party hereby waives, to the fullest extent
permitted by Applicable Law, any right it may have to a trial by jury in respect to any litigation
directly or indirectly arising out of, under or in connection with this Amendment. Each party
(a) certifies that no representative, agent or attorney of any other party has represented,
expressly or otherwise, that such other party would not, in the event of litigation, seek to
enforce that foregoing waiver and (b) acknowledges that it and the other parties hereto have been
induced to enter into this Amendment by, among other things, the mutual waivers and certifications
in this Section 1.17.

 

11

 

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12

 

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

	 	 	 	 	 	 	 
	 	 	MANGAS GAMING,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	GIGAMEDIA LIMITED,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	ULTRA INTERNET MEDIA, S.A.,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	CAMBRIDGE ENTERTAINMENT 
SOFTWARE LIMITED,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	CAMBRIDGE INTERACTIVE
 DEVELOPMENT CORP.,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	INTERNET MEDIA LICENSING LIMITED,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	GLOBAL INTERACTIVE SERVICES LIMITED,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	Solely for the purposes of Section 5.17 of the
Agreement, MONTE-CARLO SBM INTERNATIONAL
S.A.R.L.,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	CAMBRIDGE INTERACTIVE DEVELOPMENT CORPORATION
(QUÉBEC) INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	9218-2161 QUÉBEC INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	9218-2146 QUÉBEC INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	9218-2179 QUÉBEC INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	GIGAMEDIA EUROPE LIMITED

S.À R.L.	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	MCG1	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	GESTION MCG1 CANADA INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	MCG1 HOLDING MALTA LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	NEW CIDC DELAWARE CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	CORDOVAN LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment No. 1 to the Stock and Asset Purchase Agreement]

 

 

 

EXHIBIT A

to Amendment No. 1 to the Stock and Asset Purchase Agreement

License and Services Agreement, by and between Oracle USA, Inc. and Ultra Internet Media, dated
January 31, 2008

Promotional Agreement, by and between Ultra Internet Media, S.A. and solely for Section 2.2.3,
Global Interactive Services, Inc. and Cambridge Interactive Development Corp., and Harrah’s License
Company, LLC., dated March 21, 2008; GigaMedia Guarantee, by and between Harrah’s License Company,
LLC and GigaMedia Limited [undated]

Promotional Services Agreement, by and between Ultra Internet Media S.A. d/b/a Everest Poker and
Groupe Tests, dated 2009

Collaboration Contract, by and between Ultra Internet Media SA and the Wellcom Company, dated
January 4, 2007

Contract, by and between SevenOne Interactive GmbH, media plan, and Ultra Internet Media, S.A.
[undated] with General Terms and Conditions of SevenOne Media GmbH

Contract, by and between Jennifer Joyce, representing Ultra Internet Media, and Susanne Schafer,
representing Agentur Schafer, dated December 31, 2007

Agreement, by and between Velaro, Inc. and Ultra Internet Media c/o Global Interactive Services,
dated September 26, 2006

Application Service Provider Agreement, by and between Responsys, Inc. and Ultra Internet Media
S.A., dated September 19, 2007; Renewal Order Form between Responsys, Inc. and Ultra Internet Media
S.A., dated October 31, 2008

General Service Agreement, by and between WorldCom Canada Ltd. dba MCI Company and Ultra Internet
Media [undated]; Service Order Form between WorldCom Canada Ltd. dba MCI Company and Ultra Internet
Media, dated March 6, 2007; Service Order Form between WorldCom Canada Ltd. dba MCI Company and
Ultra Internet Media, dated May 25, 2006

Service Contract, by and between Ultra Internet Media and Youngnetwork, dated January 30, 2008

Master Internet Access Agreement, by and between Ultra Internet Media S.A. and Continent 8
Technologies PLC, dated July 1, 2007, with Confirmation of the Location of the Server Room, dated
July 19, 2007, and Service Orders, dated July 18, 2007, September 19, 2007 and February 6, 2008

Purchase Agreement, by and between Ultra Internet, S.A. and PI Multimedia BV, dated February 19,
2009

Service Agreement, by and between Ultra Internet Media, S.A. and Toyosen Limited dated April 1,
2007

 

 

 

Advertising/Content Agreement dated February 3, 2010 between Ultra Internet Media, S.A. and ASC 1
Gesellschaft fur Marketing und Medienkommunikation mbH

Cooperation Agreement dated December 21, 2009 between Polska Federacja Pokera Sportowego (Polish
Federation of Sport Poker) and Everest Games Ltd. Overseas Management Company Trust (BVI)

 

A-2

 

EXHIBIT B

to Amendment No. 1 to the Stock and Asset Purchase Agreement

Software Supply and Support Agreement, dated as of October 24, 2008, by and among WagerLogic
Limited, ECash Direct (UK) Limited, Internet Media Licensing Limited and Cambridge Entertainment
Software Limited

Termination Agreement, dated as of January 6, 2010, by and among WagerLogic Limited, ECash Direct
(UK) Limited, Internet Media Licensing Limited and Cambridge Entertainment Software Limited

Indemnification Agreement, dated as of November 15, 2005, by Cambridge Interactive Development
Corporation (Quebec) Inc. and Cambridge Entertainment Software Limited

Mutual Confidentiality Agreement between Cambridge Entertainment Software Limited and Barclays Bank
PLC

 

 

 

EXHIBIT C

to Amendment No. 1 to the Stock and Asset Purchase Agreement

Software Licensing Agreement, between ApexStar Pacific Limited, as Licensor, and Hoshin GigaMedia
Center Inc., as Licensee

Software Licensing Agreement, between Hoshin GigaMedia Center Inc., as Licensor, and ApexStar
Pacific Limited, as Licensee

Repayment of the EGL Loan

First Amendment, to the Joint Venture Agreement for the Conduct of a Remote Gaming Business dated
as of January 11, 2010 between Everest Gaming Limited and Ultra Internet Media S.A.

Second Amendment, to the Joint Venture Agreement for the Conduct of a Remote Gaming Business dated
as of January 11, 2010 between Everest Gaming Limited and Ultra Internet Media S.A.

Assignment Agreement between Everest Games Ltd and Ultra Internet Media S.A.

EGFS Note

Termination of the following agreements:

Service Agreement, by and between Global Interactive Services Limited and Ultra Internet
Media S.A., dated March 11, 2010

Service Agreement, by and between Cambridge Interactive Development Corp. Ltd. and Internet
Media Licensing Limited, dated [ ], 2008

Software Development and Services Agreement, by and between Cambridge Interactive
Development Corp. and Internet Media Licensing Limited, dated January 1, 2009

Service Agreement, by and between Everest Gaming Marketing Services Ltd and Ultra Internet
Media S.A., dated March 11, 2010

End User License Agreement, by and between Internet Media Licensing Limited and Ultra
Internet Media S.A., dated April 1, 2004, as amended by First Amendment by and between
Grand Virtual (Alderney) Limited and Ultra Internet Media, S.A., dated January 1, 2005; as
further amended by Novation Agreement, by and among Grand Virtual (Alderney) Limited,
Internet Media Licensing Limited, and Ultra Internet Media SA, dated April 1, 2005; as
further amended by Second Amendment by and between Internet Media Licensing Limited and
Ultra Internet Media, S.A., dated March 1, 2006; as further amended by Third Amendment by
and between Internet Media Licensing Limited and Ultra Internet Media, S.A.,
dated March 1, 2007; as further amended by Fourth Amendment by and between
Internet Media Licensing Limited and Ultra Internet Media, S.A.,

 

 

 

dated March 1, 2008; as
further amended by Fifth Amendment by and between Internet Media Licensing Limited and
Ultra Internet Media, S.A., dated April 1, 2009

End User License Agreement, by and between Internet Media Licensing Limited and Ultra
Internet Media S.A., dated June 30, 2008

Service Agreement, by and between Cambridge Interactive Development Corp. (Quebec) Inc. and
Internet Media Licensing Limited, dated October 1, 2005

Joint Venture Agreement, by and between Ultra Internet Media S.A. and Everest Gaming
Limited, dated as of January 11, 2010 and effective as of March 1, 2009

All Contracts and transactions entered into to effect the transactions set forth in Sections 1.01,
1.03(a) and (c) (to the extent necessary to effect the assumption by Holdco and its subsidiaries of
the Assumed Liabilities and the acquisition by Holdco and its subsidiaries of the Acquired Assets),
2.02(b), 2.06 (to the extent the fundings contemplated thereby constitute transactions between
Parent and its affiliates, on the one hand, and a Conveyed Subsidiary, on the other hand), 5.01(c)
and (d) and 5.19 of the Agreement

 

C-2

 

EXHIBIT D

to Amendment No. 1 to the Stock and Asset Purchase Agreement

Form of EGFS Note

 

 

 

EXHIBIT E

to Amendment No. 1 to the Stock and Asset Purchase Agreement

Lease with Maintenance Agreement, by and between Cambridge International
Development Corp. and Toshiba Financial Services, dated as of August 26, 2008
[Lease #1]

Lease with Maintenance Agreement, by and between Cambridge International
Development Corp. and Toshiba Financial Services, dated as of August 26, 2008
[Lease #2]

Lease with Maintenance Agreement, by and between Cambridge International
Development Corp. and Toshiba Financial Services, dated as of August 26, 2008
[Lease #3]

Volume Licensing Business and Services Agreement, by and between Microsoft
Licensing, GP and Cambridge Interactive Development Corp. [undated]

Volume Licensing Enterprise Agreement, by and between Microsoft Licensing, GP
and Cambridge Interactive Development Corp. [undated]; Enterprise Enrollment
(Direct); Customer Price Sheet Final Pricing; Supplemental Contact Information
Form; Enterprise Signature Form

Volume Licensing Select Agreement, by and between Microsoft Licensing, GP and
Cambridge Interactive Development Corp. [undated]; Select Enrollment;
Supplemental Contact Information Form; Select Agreement Volume Forecast Form;
Select Signature Form

 

 

 

SCHEDULE 1.05

Deposits in Transit Received Prior

to Calculation Time

	 	 	 	 	 
	Payor	 	Amount	 
	Paysafe
	 	$	554,000	 
	Wirecard Dellmax
	 	$	521,000	 

 

 

 

EXHIBIT E

to Amendment No. 1 to the Stock and Asset Purchase Agreement

SCHEDULE 1.10

Funds expended to pay salary and ordinary course employee benefits provided to Dickson Jay.

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