Document:

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                                  EXHIBIT 10.24

      Working Translation of deed no 294/2004 as signed on 5 December 2005

                                    294/2004

                                MASTER AGREEMENT

    Today, December 5th, two thousand four

                             - December 5th, 2004 -

appeared before me, Etienne Petitpierre

Notary public with offices in Basel, Switzerland

in my offices in Gerbergasse 1, 4001 Basel, Switzerland

    1.    Mr. Ulrich Wuseke,
          born 8 December 1955
          with business address Merkurallee 1- 15,
          32339 Espelkamp, Germany

            acting not in his own name, but according to powers of attorney
            dated 26 November 2004 and 3 December 2004 presented to the notary
            in the originals and taken to the files as photocopies on behalf of

    b)    Mr. Paul Gauselmann
          born August 26, 1934
          resident at Alter Moorweg 11,
          32339 Espelkamp, Germany

                       - hereinafter also called "Seller I" or "Shareholder I" -

    b)    Mr. Michael Gauselmann,
          born November 28, 1955
          resident at Frotheimer
          Weg 54, 32339 Espelkamp, Germany

                      - hereinafter also called "Seller II" or "Shareholder II"-

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    2.    Dr. Bernd Meyer-Witting,
          born 2 July 1960
          with business address at Mainzer Landstr. 46
          60325 Frankfurt am Main,
          Germany,
          acting here not in his own name, but as representative with sole power
          of representation for GTECH Corporation, 55 Technology Way, West
          Greenwich, Rhode Island, 02817 USA,

                       -  hereinafter also called "Buyer" or "New Shareholder" -

The persons appearing in relation to 1 and 2, furnished personal identification.

Based on the official document submitted to me today and which bears the
authentication of the Secretary of State of the State of Delaware, I, the
undersigned notary public, certify that the person who appeared under No. 2 in
accordance with the power of attorney dated 29 November 2004 has sole power to
represent the Buyer.

The Notary Public asked each of the persons appearing whether he or any other
persons linked with him for the joint exercise of their profession had already
acted or presently acts in the following recorded matter other than in an
official capacity. Those appearing declared that this was not the case.

At the request of the persons appearing before me, I herewith record the
following agreement:

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                                MASTER AGREEMENT

                                    PREAMBLE

The parties recorded today a Purchase Contract (hereinafter "KV") subject to
various conditions precedent. The KV is known and shall hereinafter also be
called "Reference Document". Reference is made to the KV. The KV was present
during the notarial recording. On request, the rereading of this document and
the attachment of sworn copies or official copies as an exhibit to this original
text were waived. The Reference Document was produced for review.

The subject matter of the KV is the sale and transfer of (i) interests in
Atronic International GmbH ("AI"), Atronic Australien GmbH ("Atronic
Australien") and Atronic Americas LLC ("Atronic Americas"), the three parent
companies of the Atronic group of companies as represented in Exhibit A. (AI,
Atronic Australien and Atronic Americas are collectively referred to as the
"Parent Companies") and (ii) interests in the capital account in the atypical
silent partnership referred to in the KV (the "Silent Partnership").

In regard to certain matters prior to the "Closing Date" (as that term is
defined in Section 3 of the KV), and in regard to the future cooperation of the
parties and the governance of the companies of the Atronic group, the parties
hereby enter into the following agreement.

SECTION 1 DEFINITIONS

In this Master Agreement, the terms below have the meanings given them in this
Section  1. Otherwise the definitions of the KV shall apply.

"Confidential Information" means all information disclosed by a Party hereto
(such party, in such capacity, a "Discloser") or such Party's representatives to
another Party (such party, in such capacity, the "Disclosee") or its
representatives, relating to the businesses, products, services, intellectual
property, personnel, customers, vendors, finances, marketing plans and other
strategies, cost data or pricing policies of the Discloser or any of its
subsidiaries, regardless of the medium by which such information is disclosed.
Notwithstanding the foregoing, the term "Confidential Information" shall not
include information which the Disclosee can demonstrate: (i) is in the
possession of such Disclosee or its Representatives as of the date of this
Agreement, (ii) is or becomes generally available to or known by the public or
other competing companies or businesses, other than as a result of a disclosure
by Disclosee or its Representatives in breach of this agreement, or (iii) is or
becomes available to or known

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by Disclosee or Disclosee's Representatives on a non-confidential basis from a
source other than the Discloser or its Representatives, provided that such
source is not known by Disclosee to be bound by a confidentiality agreement
with, or other obligation of secrecy to, the Discloser with respect to such
information or to be otherwise prohibited from transmitting such information to
Disclosee or its representatives.

"Encumbrance" means any security interest, pledge, hypothecation, mortgage, deed
of trust, lien, charge, easement, servitude, reversion, preferential arrangement
or restriction of any kind, including, without limitation, any restriction on
the use, voting, transfer, receipt of income or other exercise of any attributes
of ownership.

"Interests" means the ownership interests in each of AI, Atronic Australien,
Atronic Americas and the Silent Partnership.

"Major Acquisition" means the acquisition (including by merger) of an indirect
or direct controlling ownership interest in a business enterprise by New
Shareholder provided that (i) the value of the business enterprise in which the
interest is acquired exceeds Five Hundred Million U.S. Dollars (US$ 500,000,000)
and (ii) the business enterprise acquired is holder of a license issued by a US
authority in accordance with Exhibit Section 3.3.1 Part (A) of the KV. "Value of
the business enterprise" shall mean the sum of the cash and the value of the
interests which have to be paid in upon announcement of the transaction in order
to acquire 100% percent of the business enterprise regarding plus the amount of
the Net Financial Liabilities of the business enterprise.

"Organizational Documents" means, (i) as to AI and Atronic Australien, their
articles of association, as amended and (ii) as to Atronic Americas, its
operating agreement, and (iii) as to the Atypical Silent Company its partnership
agreement, as amended from time to time.

"Participate" in a Major Acquisition means (i) to contribute either directly or
by way of reimbursement to New Shareholder of fifty percent (50%) or such lesser
percentage as the Buyer has consented to before (the "Participation Amount") of
the consideration due and owing by New Shareholder or its affiliate acquiring
the Major Acquisition to the selling party in the Major Acquisition, including
cash, stock and assumed Net Financial Liabilities of the acquired entity, and
(ii) to agree to reimburse the Major Acquiror for the Participation Amount of
all sums paid by Buyer and/or the Major Acquiror pursuant to the agreements
pertaining to the Major Acquisition and/or otherwise in connection with the
Major Acquisition. For the purpose of determining Sellers' contribution, the
value of any securities given by Buyer to the selling party in the Major
Acquisition shall be as determined in the agreements relating to the Major
Acquisition. The sums for which reimbursement shall be paid by Sellers include
but are not limited to payments in respect of taxes, indemnification
obligations, auditor fees, notarization fees, stamp duties, filing fees, merger
control/competition clearance fees, and fees of legal

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counsel, investment bankers, accountants, translators and other experts.

"Shareholder" means the Buyer, Seller I or Seller II, and any transferee of any
of the Interests held at any time by any Shareholder. "Unsuitable Person" means
any Person that:

(i)   is the subject of a determination or decision of any of the regulatory
      authorities listed in Exhibit Section 3.3.1 Part (A) of the KV, such
      determination or decision not being objectionable before administrative
      courts, to the effect that such a person is unsuitable to hold a gaming
      license in any jurisdiction or to be associated with any person that holds
      a gaming license in any jurisdiction; or

(ii)  is otherwise considered by a regulatory authority listed in Exhibit
      Section 3.3.1 Part (A) of the KV in accordance with applicable law to be a
      person with whom an association or a continued association with any
      Atronic Company would jeopardise any existing or pending gaming license of
      Buyer, or a company controlling, controlled by or under common control
      with Buyer, or an Atronic Company in any gaming jurisdiction in which any
      Atronic Company is interested.

SECTION 2 INTERIM DUE DILIGENCE COMMITTEE

2.1   Promptly after the notarial recording of this contract, Shareholders I and
      II and New Shareholder will form an interim due diligence committee
      ("IDDC") pertaining to the Atronic Companies.

2.2   The IDDC shall operate as set forth in EXHIBIT SECTION 2.2 and shall
      remain in existence until the "Transaction Date", as defined in the KV.

SECTION 3 BANK LOAN

3.1   The Parties agree to cooperate, under control of New Shareholder, to
      procure a loan usual in the market from a bank in favour of AI in the
      aggregate amount of fifty million Euros (EUR 50,000,000) (the "Bank
      Loan").

3.2   Sellers and Buyer agree to provide the bank issuing the Bank Loan ("Bank")
      with sufficient guarantees regarding a partial amount of twenty-five
      million Euros (EUR 25,000,000) each.

      Guarantees provided by a company of Family-Gauselmann-Group (other than
      Atronic Group) shall be considered to equal any guarantees provided by the
      Seller.

3.3   The loan agreement and the agreements regarding the guarantees shall
      contain the

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      following provisions:

      -     five-year term

      -     redemption upon expiry of term

      -     interest usual in the market

      -     payment of interest at regular intervals

      -     redemption is to effect the Parties' liability arising from the
            guarantees granted in equal parts

      -     The Bank cannot make a demand upon Buyer under its guarantee unless
            a similar demand in the same amount is simultaneously made upon the
            Sellers under their guarantee, and vice versa. Similarly, the Bank
            shall use equal efforts to pursue its remedies against both the
            Sellers or the Buyer under the guarantees provided by each of them.

      -     Under no circumstances shall either Sellers, on the one hand, or
            Buyer, on the other, be liable for more than Twenty-Five Million
            Euros (EUR 25,000,000) plus interest and costs, in the aggregate,
            with respect to the Bank Loan.

3.4   In the event one security provider pays under his security less than the
      other security provider, the Party which paid less shall reimburse the
      other one-half (1/2) of the difference between the amounts paid by each of
      them under their respective securities, with the effect that, after
      considering such reimbursement, each will have paid the same amount under
      its respective security of the Bank Loan.

3.5   If both parties agree, the Bank Loan may as well be divided into two
      independent bank loans each amounting to EUR 25,000,000.00. In such case
      the Buyer shall be responsible for providing collateral for one loan and
      the Seller shall be responsible for providing collateral for the other
      loan. With regard to the liability arising from such guarantees the
      Parties agree to internally place each other in a position in which they
      would be in case of a loan pursuant to Section 3.3 and Section 3.4.

3.6   If 90 days after recording of this Agreement neither a binding loan
      agreement between AI and a bank regarding a loan in the amount of EUR
      50,000,000.00 nor two loan agreements in the amount of EUR 25,000,000.00
      each do exist, the Buyer itself shall be obligated to obtain an
      irrevocable loan commitment of a bank in the amount of EUR 25,000,000.00
      in favour of AI. Such loan commitment may be subject to the payment
      condition that the Sellers also obtain an irrevocable loan commitment in
      the amount of

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      EUR 25,000,000.00 in favour of AI.

3.7   If the Buyer does not provide such loan commitment within further 30 days
      the following shall apply: The Sellers may rescind from this Agreement and
      the KV. Further claims of the Sellers do not exist, in particular, the
      Buyer does not have to pay a break-up fee in accordance with Section 16.2
      of the KV.

3.8   If only the Buyer submits a loan commitment within the timeframe set this
      Agreement and the KV shall continue to be valid and no rights to
      rescission shall exist.

3.9   Any commitment fee, closing costs and other costs set by the Bank (i) in
      connection with the issuance of the Bank Loan(s), and (ii) in connection
      with the guarantees granted by the parties shall be borne by AI.

3.10  The Sellers shall procure that AI uses the proceeds of the Bank Loan to
      reduce its liability with respect to the cash-pool of Gauselmann AG. If,
      after full and final settlement of the obligations vis-a-vis the cash-pool
      of Gauselmann AG, proceeds of the Bank Loan remain unutilised, such
      remaining proceeds of the Bank Loan may be used by AI to reduce other
      ordinary course liabilities of AI.

SECTION 4 SHAREHOLDERS MEETINGS, CASTING VOTE

4.1   On the Transaction Date, immediately after certification of the Closing
      Deed (Section 17.1 KV) the Parties are obliged to approve the following
      amendments with respect to shareholders' meetings to the Organizational
      Documents of AI, Atronic Australien, Atronic Americas and the Atypical
      Silent Partnership:

4.1.1 New Shareholder has a casting vote - Mehrstimmrecht - subject to
      applicable statutory law, except with respect to the following issues on
      the agenda (where a tie vote shall imply the non passing of the issue):

      (a)   the expansion or limitation of a power of representation for a
            manager und/or general representative ("Prokurist") granted by a
            company belonging to the Atronic-Group;

      (b)   the execution, amending, or cancellation of agreements of any kind
            between an Atronic Company on the one hand, and on the other, a
            Shareholder or a business enterprise directly or indirectly
            controlling or controlled by or under common control with a
            Shareholder or a relative or spousel of a Shareholder (without any
            effect on the extraordinary termination right pursuant to Section
            3.2.3 KV which shall not be affected by this clause);

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      (c)   the making of a loan to or the guaranteeing of a loan to a
            Shareholder or third party, where such loan or the loan to which the
            guarantee relates is in a principal amount greater than EUR
            100,000.00 (except the granting of credit or payment deferrals in
            the ordinary course of business);

      (d)   the sale or acquisition of assets of any kind with a value equal to
            more than 20% of the total fair value (Marktwert) of the aggregate
            assets of the Parent Companies; or

      (e)   Approval of amendments to an Organizational Document providing for
            an obligation for the shareholder to participate in capital
            increases as for example provided for in Section 26 GmbHG (German
            limited liability companies Act) or the establishment of such an
            obligation by other means.

4.2   New Shareholder may exercise its casting vote only after expiry of a
      period of three weeks. During this period it shall attempt at least once
      per week to achieve an arrangement with all Shareholders. Such
      negotiations may take place regardless of form and time, even by means of
      telephone or video conferences.

4.3   A Shareholders Meeting shall only be quorate if all Shareholders are
      present. Otherwise a New Shareholders Meeting with the same agenda shall
      be convened by notice by registered mail to each shareholder and by
      observing a period of at least two weeks - or a reasonable shorter period
      if need be. This new Shareholder Meeting shall be quorate independent of
      the share capital being present, if reference is made to this in the
      letter convening such Shareholders Meeting.

SECTION 5 ADVISORY BOARD

On the Transaction Date, immediately after certification of the Closing Deed
(Section 17.1 KV) the Parties are obliged to approve the following amendments
with respect to an advisory board to the Organizational Documents of AI, Atronic
Australien, Atronic Americas and the Atypical Silent Partnership or to provide
for these issues in the by-laws, respectively:

5.1   Commencing as of the Transaction Date, an advisory board will be
      instituted at the level of each Parent Company.

5.2   The advisory board shall be composed of six (6) members. Shareholder I and
      II on the one hand and the New Shareholder on the other hand shall each
      have the right to appoint and remove three (3) members of the advisory
      board. The members can be Shareholders or third parties. Any member of the
      advisory board can be removed and replaced at any time by written notice
      to the Parent Companies by the Shareholder having appointed such

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      member. Any removal and appointment of an advisory board member shall take
      effect upon receipt of such notice at the headquarters of AI or at a duly
      convened meeting of the advisory board.

5.3   The New Shareholder shall appoint the chairperson of the advisory board.
      At advisory board's meetings the Chairman has a casting vote
      (Mehrstimmrecht) in accordance with the casting vote of the New
      Shareholder at a shareholders' meeting and Section 4.1.1 und Section 4.2
      which shall apply mutatis mutandis.

5.4   The advisory board shall have the following functions:

5.4.1 Annual voting on the business plan, consisting of the sales plan, the
      personnel plan, the investment plan, the finance plan, and the profit and
      loss plan for the respective business year;

5.4.2 Authorizing of the following (Transactions requiring approvals):

      (a)   investments and the raising of loans which exceed the figures set
            out in the investment/finance plan by more than 10% in an individual
            case;

      (b)   the sale or closure of the entire business operations of the Parent
            Company or a division thereof, and/or the relinquishment of a
            material area of operations;

      (c)   the establishment of enterprises, acquisition or disposition of
            interests in other business enterprises;

      (d)   the acquisition, sale, lease, encumbrance of real estate;

      (e)   concluding agreements with a term of more than one year if the
            foreseeable obligations of the companies based on the relevant
            contract exceed a total sum of EUR 50,000.00 (fifty thousand Euros);

      (f)   granting or revoking powers of attorney or general proxies
            (Prokuren) or agency, and/or making, amending, or terminating
            service contracts with persons vested with such powers of attorney
            or general proxies;

      (g)   assumptions of guarantees, sureties or other security and letters of
            comfort;

      (h)   conclusion, amendment and/or termination of agreements with a
            contractual value of more than EUR 100,000.00 except for supply
            agreements in the ordinary course of business;
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      (i)   conclusion, amending, or cancellation of profit and loss assumption
            agreements at the level of Subsidiaries;

      (j)   entering, amending or terminating partnership agreements at the
            level of subsidiaries (including but not limited to silent
            partnerships);

      (k)   exercising voting rights at the level of direct and indirect
            subsidiaries;

      (l)   acquisition, alienation or encumbering of material properties,
            material property rights, or material assets;

      (m)   undertaking or agreeing to undertake material renovations, material
            expansions, and/or material construction;

      (n)   granting of special compensations ("Tantiemen") or bonuses of any
            kind in an amount exceeding EUR 5,000.00;

      (o)   assumption of pension commitments;

      (p)   conclusion, amendment and termination of works agreements and other
            collective bargaining agreements; and

      (q)   utilization/withdrawal of the profit and loss - e.g. payment of
            dividends at the level of direct and indirect subsidiaries;

5.4.3 The advisory board may amend and increase the catalogue of transactions
      requiring advisory board approval;

5.4.4 Appointment and recalling of registered directors as well as conclusion,
      amendment and termination of their employment contracts; and

5.4.5 Coordination regarding new areas of busineSection

5.5   The by-laws of the advisory board in addition shall implement the
      following provisions:

5.5.1 The Chairperson represents the advisory board to outside parties. The
      shareholders I and II jointly appoint the proxy chairperson. In the event
      that the chairperson is unable to attend, she/he shall be represented by
      her/his proxy, who shall, however, not have the casting vote as pursuant
      to Section 5.3.

5.5.2 The advisory board is convened by the chairperson whenever the performance
      of its functions is required and shall meet in Lubbecke unless otherwise
      decided in the previous board meeting. In principle, meetings shall take
      place on the first Monday of every

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      month. Any shareholder and any member of the advisory board can make a
      request to convene at any time with advance notice of ten days (10)
      thereby stating the purpose and reasons. The board members can link up by
      telephone or videoconferencing. In this case, they are considered present.

5.5.3 Written passing of resolutions by means of letter, fax or e-mail is
      permitted if no member objects to this.

5.5.4 The advisory board decides by simple majority of votes cast. Abstentions
      are not counted. In case of equality of votes Section 5.3 shall apply.

5.5.5 Records shall be kept of the meetings of the advisory board and the
      resolutions not passed in meetings, which the chairperson shall sign and
      send to all advisory board members.

5.5.6 The members shall only have a claim to compensation of their expenses. A
      further remuneration will not be paid.

5.5.7 The advisory board shall only be quorate if at least one member appointed
      by Buyer and at least one member appointed by Sellers are present
      ("Quorum"). If, on voting on any particular resolution, all members of the
      advisory board are not present (in person or by phone), a present advisory
      board member appointed by the same shareholder that appointed the absent
      member(s) shall be entitled to vote for himself/herself and also in place
      of the absent member(s) appointed by the same shareholder, as if the
      present member were the appointed alternate member (if not already so
      appointed) of the absent member(s). In case there is no Quorum at a
      meeting of the advisory board, a new meeting with the same agenda shall be
      convened by notice by registered mail to each member of the advisory board
      and by observing a period of at least two weeks, or a reasonable shorter
      period if need be. This meeting even without a Quorum shall be empowered
      to make decisions, provided this was set out in the letter convening such
      meeting.

SECTION 6 FUTURE MAJOR ACQUISITIONS BY THE NEW SHAREHOLDER

6.1   From the Transaction Date through and as long as Shareholders I and II
      hold 50% and New Shareholder equally (directly or indirectly) holds 50% in
      the Parent Companies the following shall apply: If the New Shareholder
      publicly announces a Major Acquisition, the New Shareholder shall notify
      Shareholders I and II thereof in writing (a "Major Acquisition Notice")
      promptly after such announcement. Shareholders I and II shall have the
      right, but not the obligation, to Participate in the Major Acquisition.

6.2   Shareholders I and II shall have sixty (60) days after the date the Major
      Acquisition Notice is received (the "Participation Election Period")
      during which to give notice to

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      New Shareholder indicating their decision to Participate in the Major
      Acquisition (a "Participation Election Notice"). Failure to give a
      Participation Election Notice prior to the expiration of the Participation
      Election Period shall be deemed an election on the part of Shareholders I
      and II not to Participate in the Major Acquisition.

6.3   In case Shareholders I and II decide to participate, they are jointly
      entitled to take over 50% of the participation to be acquired by New
      Shareholder under the same terms and conditions as apply for New
      Shareholder plus half of the transaction costs.

SECTION 7 DISPOSAL OF INTERESTS - GENERAL

      After the Transaction Date, each Shareholder of the Parent Companies or of
      the Silent Partnership may dispose of any of its Interest only subject to
      the provisions of this Agreement and the Organizational Documents and to
      all shares of all companies being concerned.

SECTION 8 PUT AND CALL RIGHTS

8.1   The following put options shall be agreed for Shareholders I and II
      (jointly) with regard to the shares/Interests in the Parent Companies and
      the Atypical Silent Partnership ("Option Interests"):

8.1.1 As of the Transaction Date Shareholders I and II may exercise a put option
      if they do not accept an offer in accordance with Section 6 of this
      Agreement. This put option may only be exercised within 60 days after a
      Notice of a Major Acquisition has been issued. The consummation of the
      Major Acquisition is a condition precedent for the consummation of this
      option. The right to consummate an exercised option ceases to exist if
      such Major Acquisition did not take place within 18 months after the
      Notice of a Major Acquisition. The right to exercise such option expires
      on the fifth anniversary of the Transaction Date.

8.1.2 Upon expiry of two years after the Transaction Date and until the fifth
      anniversary of the Transaction Date Shareholders I and II may exercise a
      put option, if disagreement as described below exists ("Material
      Disagreement"). Material Disagreement means a matter pertaining to the one
      or more of the matters described below, that comes to a vote at a meeting
      of the Shareholders or a meeting of the advisory board for decision, and
      is decided by the Buyer's exercise of its casting vote (the date of
      Buyer's exercise of its casting vote shall be the "Date of the Material
      Disagreement"): This option may only be exercised within 60 days after the
      Date of the Material Disagreement:

      -     the pursuit by an Atronic Company of business opportunities in a
            geographical territory in which such Atronic Company did not do
            business before;
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      -     the pursuit by an Atronic Company of business opportunities outside
            the scope of gaming systems, gaming solutions, gaming machines;

      -     the determination, increase or decrease of an Atronic Company's
            budget for research and development;

      -     the determination, amendment or revision of an Atronic Company's
            annual and/or three-year plan; and/or

      -     other matters that, if acted upon, would have the effect of
            obligating the Shareholders to increase their loans and/or capital
            contributions to a Parent Company.

8.1.3 After expiry of 5 years after the Transaction Date, Shareholders I and II
      may exercise a put option without giving any reasons.

8.2   New Shareholder shall be entitled to a call option regarding the Option
      Interests in the following cases:

8.2.1 12 months after the signing of an agreement providing for a Major
      Acquisition, however at the earliest 12 months after the Transaction Date,
      if Shareholders I and II have not accepted an offer pursuant to Section 6;
      such option may only be exercised within 60 days after expiry of the
      Participation Election Period pursuant to Section 6.2. The consummation of
      the Major Acquisition is a condition precedent for the consummation of
      this option. The right to claim consummation of an exercised option ceases
      to exist if such Major Acquisition does not close within 18 months after
      the Notice of a Major Acquisition. The right to exercise such option
      expires on the fifth anniversary of the Transaction Date.

8.2.2 After expiry of 3 years after the Transaction Date and until the fifth
      anniversary of the Transaction Date if a Material Disagreement pursuant to
      Section 8.1.2 is given;

8.2.3 After expiry of 5 years after the Transaction Date without giving any
      reasons.

8.3   The options shall be exercised by giving a written notice to the grantor
      of the option.

8.4   The purchase price of the Option Interests shall be calculated as follows:

      -     in the cases of Section 8.1.1 and Section 8.1.2 as well as Section
            8.2.1 and Section 8.2.2 based on the following formula ("Formula
            Purchase Price"):

                         CompanyValue - NetFiancialDebt
                         ------------------------------
                                       2
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      -     in the cases of Section 8.1.3 as well as Section 8.2.3 the Purchase
            Price is identical to the "fair value" ("Fair Value Purchase Price")

8.5   For the purposes of determining the Formula Purchase Price the Parties
      agree the following procedure:

8.5.1 The Formula Purchase Price shall be calculated on the basis of a financial
      report to be established by an auditor of the Parent Companies upon
      exercise of the option ("Option Report").

8.5.2 The enterprise value amounts to 7.5 times the EBITDA-value.

8.5.3 The EBITDA-value shall be calculated in accordance with the provisions
      (including exhibits) contained in Section 4.5.1 to Section 4.5.6 and
      Section 4.5.9 of the KV. The Net Financial Debt shall be calculated in
      accordance with the provisions contained in Section 4.6.1 to Section
      4.6.5.

8.5.4 The Option Report shall be established within 6 weeks after the exercise
      of the option on the basis of the four completed quarters preceding the
      receipt of the notice of the exercise of the option. Section 8.5 and
      Section 8.6 of the KV (without Working Capital) shall apply accordingly.

      In case the closing takes place more than six months after the date of
      receipt a further option financial report ("Option Report 2") shall be
      established for the four completed quarters preceding the transaction date
      of the option. This report is to be established within 6 weeks after the
      transaction date of the option. Section 8.5 and Section 8.6 KV (without
      Working Capital) shall apply accordingly.

8.6   The Parties agree upon the following procedure for the purposes of
      determining the Fair Value Purchase Price:

8.6.1 If the Parties are unable to agree on a Fair Value Purchase Price within
      four weeks after the exercise of the option, the Shareholder exercising
      the option as well as the Shareholder granting the option shall each
      appoint an expert experienced in the relevant field of business and
      established in evaluating German private companies with an international
      business to conduct a valuation of the Option Interests. The appointment
      shall take place within 14 days after expiry of the four-week deadline by
      written notice. Said evaluation experts shall be directed to promptly
      select a third valuation expert and inform the Shareholders accordingly.

8.6.2 The three evaluation experts shall, within thirty (30) Business Days of
      the appointment of the third expert, independently determine the fair
      market value of the Option Interests

<PAGE>
                                                                          - 15 -

      within sixty (60) days after appointment of the third expert.

8.6.3 The Parties shall cause the Parent Companies to provide the evaluation
      experts with all information reasonably required by them to conduct their
      evaluations.

8.6.4 The evaluation experts shall be directed to notify the Sellers and the
      Buyer in writing of their valuations (each, an "Evaluation Notice") within
      the aforesaid sixty-day period. The final aggregate purchase price of the
      Option Interests shall be the average of the two valuations that are
      closest to each other. The final aggregate purchase price thus determined
      shall be final and binding on all Shareholders. The evaluation experts
      shall be deemed to act as experts and not as arbitrators.

8.7   The Parties will consummate the transfer of the Option Interests by
      notarial deed on the closing date ("Option Transaction Date"). The Option
      Transaction Date shall be the last day of the calendar month in which the
      Formula Purchase Price or the Fair Value Price are determined pursuant to
      the Option Report in a binding and final manner and any possible obstacles
      to such consummation are eliminated. If the completion time is not 14 days
      the consummation of the option shall be postponed to the last day of the
      following month.

      In deviation of the following provisions in case an option is exercised
      pursuant to Section 8.1.1 and Section 8.2.1 the consummation of the option
      has to take place on the same day, on which the Major Acquisition is
      closed, if possible.

8.8   The purchase price is to be paid concurrently against assignment of the
      Option Interests on the Option Transaction Date.

8.9   In case that an Option Report 2 has to be established a preliminary price
      in the amount of 90% of the purchase price determined on the basis of the
      Option Report is to be paid on the Option Transaction Date. The difference
      between the preliminary price and the price determined on the basis of the
      Option Report 2 shall be due for payment or repayment within three weeks
      after the purchase price has been determined in a binding and final
      manner.

SECTION 9 LOSS OF LICENCE AND SIMILAR CASES

9.1   In the event that either one of the Shareholders I and II (for the
      purposes of the following provision referred to as
      "Gauselmann-Shareholders") becomes an Unsuitable Person, the New
      Shareholder shall be entitled to exercise an immediate Call Option with
      regard to the shares/interests in the Parent Companies and the Atypical
      Silent Partnership of both Gauselmann-Shareholders.

<PAGE>

                                                                          - 16 -

      In the event that the New Shareholder becomes an Unsuitable Person, the
      Gauselmann-Shareholders at their discretion shall be entitled either to
      exercise an immediate Call Option with regard to the shares/interests of
      the New Shareholder in the Parent Companies and the Atypical Silent
      Partnership or to exercise an immediate Put Option with regard to all of
      their own shares/interests in the Parent Companies and the Silent
      Partnership.

9.2   In the cases of Section 9.1 the Purchase Price to be paid shall be
      calculated as follows: In the event that one of these options is exercised
      in the period up to the fifth anniversary of the Transaction Date the
      provisions on the calculation of the Formula Purchase Price shall apply
      accordingly, afterwards the provisions on the calculation of the Fair
      Value Purchase Price shall apply accordingly. The consummation of the Put
      Option or the Call Option shall take place two weeks after the Purchase
      Price has been determined in a binding and final manner and no obstacles
      to such consummation exist.

9.3   With respect to cases of one Shareholder deceasing or ceasing to be
      contractually capable the Parties shall attempt to agree within four
      months after the recording of this Agreement on a regulation taking into
      account the interest of both Parties in accordance with the principle of
      good faith.

SECTION 10 GENERAL PROVISIONS

10.1  The Parties hereto shall cooperate and will do and execute all other acts
      and deeds necessary to give effect to the provisions of this Agreement.
      Among other things, the Shareholders will (as far as it is possible for
      them to do so) ensure that meetings of the Shareholders and advisory board
      during the course of which the transfer of Interests hereinbefore
      mentioned is approved are duly convened.

10.2  In future restructurings within the Atronic-Group, the Parties shall take
      into account the taxation issues of all those participating in good faith.

10.3  The aggregate purchase price for Sellers' Interests purchased and sold
      pursuant to Section 8 and Section 9 shall be paid in cash.

SECTION 11 FINANCING MATTERS

      If Shareholders I and II and New Shareholder decide after the Transaction
      Date to provide the Parent Companies with additional financial means
      (equity, loans or securities for borrowed capital) Shareholders I and II
      on the one hand an New Shareholder on the other will do this in equal
      halves.

<PAGE>

                                                                          - 17 -

SECTION 12 WITHDRAWALS

12.1  The Shareholders shall be entitled to effect withdrawals sufficient to pay
      the taxes arising from the profit generated on their shares.

12.2  It is acknowledged that Shareholders I and II and New Shareholder are
      currently not subject to the same tax rates. Thus, if a Shareholder
      effects a withdrawal from profits or shareholder loans the other
      Shareholders shall be entitled to effect withdrawals in the same amount.

SECTION 13 FINANCIAL INFORMATION

13.1  Prior to the Transaction Date, Sellers shall provide to Buyer on a monthly
      basis unaudited financial statements for the consolidated Parent Companies
      (i.e., balance sheet, income statement and cash flow statements).

13.2  In addition, on a quarterly basis, beginning March 31, 2005, Sellers shall
      provide Buyer with quarterly reports complying with US GAAP.

13.3  In addition, Sellers shall promptly provide IDDC with any and all
      information relevant to any of Sellers guarantees and pre-closing
      covenants set forth in the KV.

SECTION 14 NON-SOLICITATION

      From and after notarial recording of this contract and until one (1) year
      after the Sellers and/or the Buyer no longer hold any Interests in Atronic
      group, neither Sellers nor Buyer shall personally and shall procure that
      (i) each company or entity over which Sellers or Buyer have (separately or
      together) direct or indirect control and/or a right to receive fifty
      percent (50%) or more of the dividends or other from of profit
      distributions, and (ii) Gauselmann AG and each of its direct and indirect
      subsidiaries, does not, directly or indirectly solicit for hire (as an
      employee, consultant or in any other capacity) any person who is then a
      "Senior Employee" (as herein below defined) of any Atronic Company or was
      a Senior Employee of any Atronic Company at any time during the year prior
      to the solicitation; provided, however, it shall not be a breach of this
      Section 14 if any such Senior Employee is solicited through use of an
      independent employment agency (as long as the agency was not directed to
      solicit such Senior Employee) or through the use of a general solicitation
      (such as an advertisement) not specifically directed to such Senior
      Employee. "Senior Employee" of an Atronic Company means any employee of
      any Atronic Company (a) who receives remuneration in excess of EUR 50,000
      (or its U.S. dollar equivalent) per annum (considering salary only, and
      excluding, for example, bonuses, benefits and other remuneration), or (b)
      whose primary duties pertain to the design,

<PAGE>

                                                                          - 18 -

      development, sales and/or marketing of the products and/or services of any
      Atronic Company.

SECTION 15 CONFIDENTIALITY

15.1  Each Disclosee of Confidential Information of anther Party hereby agrees
      that it and its representatives will not use or duplicate any Confidential
      Information of the Discloser other than for the purposes of effecting the
      transactions contemplated in this Agreement (including but not limited to
      transactions contemplated in agreements referred to therein) and
      evaluating and monitoring the businesses of the Atronic Companies, and
      that such Confidential Information of Discloser will be kept confidential
      by the Disclosee and its representatives, subject to subsections Section
      15.2 and Section 15.3, provided, however, that Confidential Information
      may be disclosed: (i) to the Disclosee's representatives who need to know
      such information for the purpose of effecting the transactions
      contemplated in this Agreement and evaluating and monitoring the
      businesses of the Atronic Companies (it being understood that each
      Disclosee so disclosing Confidential Information shall inform its
      representatives of the confidential nature of such information and shall
      direct such Representatives to treat such information confidentially), or
      (ii) otherwise as the Discloser may consent in writing. Each Party agrees
      to be responsible for any breach of this Agreement by its representatives.

15.2  For the avoidance of doubt, Confidential Information of any Parent Company
      does not belong to and is not considered property of the Shareholders of
      the Parent Companies. Accordingly, from and after the Closing, absent the
      written consent of a Parent Company, a Shareholder of that company shall
      not use or duplicate Confidential Information of such company other than
      for the purposes of effecting the transactions contemplated in this
      Agreement and evaluating and monitoring the business of the Atronic
      Companies (in the capacity as a Shareholder), and the Shareholder shall be
      obligated to keep such Confidential Information of the Parent Company
      confidential as set forth in Section 15.1.

15.3  In the event a Disclosee or its representatives are requested or required
      by law or the rules of any stock exchange to make a disclosure of
      information which would include Confidential Information of a Discloser,
      the Disclosee so required may make such disclosure without breach of or
      other liability under this Agreement, provided it uses its best efforts to
      notify the Discloser prior to the disclosure regarding the form and
      substance of such disclosure.

15.4  In the event a Disclosee or its representatives are requested or required
      by oral questions, interrogatories, requests for information or documents,
      subpoena, civil investigative demand or other similar process to disclose
      any Confidential Information of Discloser, such Disclosee will provide the
      Discloser with prompt notice of such request or

<PAGE>

                                                                          - 19 -

      requirement so that the Discloser may waive compliance with this Agreement
      or may (entirely at Discloser's cost and expense) challenge the validity
      of such requirement and/or seek an appropriate protective order.
      (Disclosee shall cooperate, when feasible, with Discloser's efforts to
      obtain an appropriate order). However, if, failing the entry of a
      protective order or the receipt of a waiver, such Disclosee or its
      representatives are, in the opinion of their legal counsel, required under
      law, regulation or court order to disclose Confidential Information under
      risk of liability for contempt or other censure or penalty, disclosure of
      such information may be made without breach of or other liability under
      this Agreement.

15.5  Subject to Section 15.2 and Section 15.3, and except as otherwise agreed
      to in writing by the Parties, the Parties each agree that it will not, and
      it will not permit any representative controlled by it, to disclose to any
      person other than its own representatives, either the fact that this
      agreement exists, that a transaction among the Parties has been agreed to,
      and/or any actual or proposed terms or conditions relating to the instant
      transaction, until such information becomes public.

15.6  The provisions of this Section 15 shall be effective as of notarial
      recording of this deed and continuously thereafter, notwithstanding the
      termination of this Agreement.

SECTION 16 TERMINATION

16.1  This Agreement shall be concluded for an indefinite period.

16.2  This Agreement shall end upon a termination right set out in the KV being
      exercised before the KV is consummated or upon exercise of a termination
      right set out in this Agreement.

SECTION 17 RELATIONSHIP OF THE PARTIES

17.1  Nothing in this Agreement shall create a partnership between or among any
      of the Parties hereto and except as specifically provided herein none of
      them shall act or represent or hold itself out as having authority to act
      as agent of or in any way bind or commit the other Parties hereto to any
      obligation.

17.2  Except as otherwise provided in this Agreement, Shareholders I and II
      shall be considered to be joint and several debtors (or creditors)
      regarding all rights, duties and obligations; such a joint and several
      liability does not exist with regard to New Shareholder on the one hand
      and Shareholders I and II on the other.

SECTION 18 COVENANT TO MAKE FURTHER ASSURANCES

<PAGE>
                                                                          - 20 -

      Each Shareholder agrees that it will, upon the request of any other
      Shareholder, execute and deliver all such additional instruments, notices,
      deeds and other documents and will do all such acts and things as may be
      necessary more fully to assure to the other Shareholders and its permitted
      assigns all or any of the respective rights and interests herein and
      hereby granted or reserved.

SECTION 19 SUPREMACY OF THIS AGREEMENT

      If, during the term of this Agreement, there shall be any conflict between
      the provisions of this Agreement and the provisions of any of the
      Organizational Documents then, the Shareholders shall procure that,
      effective as of the Transaction Date, the Organizational Documents shall
      be modified so as to conform to the provisions of this Agreement.

SECTION 20 ENTIRE AGREEMENT

      This document and the documents referred to in, or contemplated by, it
      including but not limited to the KV constitutes the entire agreement among
      the parties relating to their subject matter and supersedes all previous
      agreements, arrangements and understandings, written and oral, between the
      parties in relation to the same.

SECTION 21 NOTICES

21.1  All communications subsequent to this master contract and its exhibits are
      to be sent by registered mail, telefax or by hand to the delivery
      addresses below:

      Delivery to Seller I:
         Paul Gauselmann
         Alter Moorweg 11
         D-32339 Espelkamp

      Delivery to Seller II:
         Michael Gauselmann
         Frotheimer Weg 54
         D-32339 Espelkamp

      Copy to:

         Rechtsanwalt Wolfgang Diewitz
         BDPHG
         Elsa Brandstrom Str. 1/3

<PAGE>

                                                                          - 21 -

         33602 Bielefeld

      Delivery to Buyer:
         Marc A. Crisafulli
         Senior Vice President
         GTECH Corporation
         55 Technology Way
         West Greenwich, Rhode Island
         USA  02817

      Copy to:
         General Counsel
         GTECH Corporation
         55 Technology Way
         West Greenwich, Rhode Island
         USA  02817

SECTION 22 SEVERANCE

22.1  If any provision of this Agreement is found to be illegal, invalid or
      unenforceable the remaining provisions, or the remainder of the provision
      concerned, shall continue in effect. In relation to any illegal, invalid
      or unenforceable part of this Agreement, the parties hereto agree to amend
      such part in such manner as may be requested from time to time by any of
      the parties hereto provided that such proposed amendment is legal and
      enforceable and to the maximum extent possible carries out the original
      intent of the parties hereto in relation to that part.

22.2  If any part of this Agreement or the Organizational Documents of the
      Parent Companies shall be held by any court of competent jurisdiction to
      be unenforceable against or by a Parent Company, such part shall be
      treated as being severable from the remainder of this Agreement or, as the
      case may be, the Organizational Documents, and the Shareholders shall
      promptly exercise their powers in relation to applicable Parent Company to
      procure (insofar as they have the power lawfully to do so) that the
      severable part is nevertheless put into or given effect in accordance
      with, or to the maximum extent possible in accordance with, the original
      intent of the parties in relation to that part.

SECTION 23 WAIVER DOES NOT EXCUSE LATER BREACH

      The waiver by any Party hereto of any breach of any provision of this
      Agreement shall not prevent the subsequent enforcement of that provision
      in respect of and shall not be

<PAGE>

                                                                          - 22 -

      deemed a waiver of any subsequent breach of that provision.

SECTION 24 ASSIGNMENT

24.1  This Agreement is personal to the Parties hereto and none of the Parties
      hereto may in whole or in part assign any of its rights or obligations
      hereunder without the prior written consent of the other Parties.

24.2  Irrespective of Section 24.1 of this contract the Buyer under Section 21
      KV shall be entitled to - revocably - specify within 60 days after signing
      of this deed which company/companies shall acquire in parts or in total
      the Sold Shares provided that such company/companies is controlled by 100%
      by the Buyer. With this respect the Buyer is also entitled to make
      respective transfers in connection with the exercise of its options.

24.3  In case the Buyer makes use of its right under Section 24.2,

            -     Obligations of the Buyer pursuant to the Put Options of the
                  Sellers may be fulfilled also by the respective
                  company/companies;

            -     Obligations and rights of the Buyer arising from Call Options
                  of the Buyer may also be fulfilled and/or exercised by the
                  respective company/companies.

      Irrespective of the forgoing, the Buyer shall remain responsible for the
      fulfilment of the obligations assumed under this contract.

24.4  In addition, the second and third bullet point of Section 21.3 of the KV
      shall apply accordingly.

SECTION 25 EXERCISE OF POWERS

Where any of the Parties hereto is required under this Agreement to exercise
his, her or its powers in relation to an Atronic Company from time to time to
achieve a particular purpose, such obligation shall be deemed to include an
obligation to exercise his, her or its powers both as a shareholder and as an
advisory board member (where applicable) of such company and to procure that any
nominee of his, her or it or any advisory board member appointed by him, her or
it shall pursue such purpose but, in each case, only insofar as the person in
question can lawfully do so.

SECTION 26 MISCELLANEOUS

26.1  The exhibits to this Agreement shall be prepared in accordance with
      Section 23.1 first paragraph KV.

26.2  The cost of the notarial recording of this contract and the deed with the
      appendices shall

<PAGE>

                                                                          - 23 -

      be borne by the Buyer

26.3  Each Party bears the costs of the advisers retained by that Party.

26.4  Amendments and modifications of this contract including this provision
      require notarization.

26.5  This contract is governed by the law of the Federal Republic of Germany
      under exclusion of UN-Sales Convention. Only the German language version
      of this contract is definitive. In the event of disputes between the
      parties based on this contract, they agree to Dusseldorf being the
      non-exclusive place of jurisdiction.

This record was read aloud to the persons present, ratified by said persons, and
signed by said persons along with the notary public as follows:

                                  [SIGNATURES]<PAGE>

                                                                   EXHIBIT 10.40

                           GTECH HOLDINGS CORPORATION

                      NON-QUALIFIED STOCK OPTION AGREEMENT

            NON-QUALIFIED STOCK OPTION AGREEMENT made as of the ___ day of_____,
200__ between GTECH HOLDINGS CORPORATION, a Delaware corporation (the
"Company"), and ______________, an Employee of an Affiliate of the Company (the
"Employee" or "optionee").

            WHEREAS, the Company desires as of ___________ (the "Grant Date") to
afford the Employee an opportunity to purchase shares of Common Stock, $.01 par
value, of the Company ("Stock"), as hereinafter provided, in accordance with the
provisions of the Company's 2002 OMNIBUS STOCK OPTION AND LONG-TERM INCENTIVE
PLAN (the "Plan"), which is incorporated herein by reference and made a part
hereof. Capitalized terms used and not otherwise defined herein shall have the
meanings ascribed to them in the Plan.

            NOW THEREFORE, in consideration of the mutual covenants hereinafter
set forth, the parties hereto, intending to be legally bound hereunder, agree as
follows:

            1. GRANT OF OPTIONS. The Company hereby grants to the Employee the
right and option (the "Options") to purchase all or any part of an aggregate of
______ shares of Stock. The Options are in all respects limited and conditioned
as hereinafter provided, and are subject to the terms and conditions of the Plan
now in effect and as they may be amended from time to time in accordance with
the Plan and any rules, regulations and procedures pursuant thereto which may be
adopted by the Human Resources & Compensation Committee or such other committee
of the Board of Directors as may be designated (the "Committee") from time to
time. (Said terms, conditions, rules, regulations and procedures are and
automatically shall be incorporated herein by reference and made a part hereof
and shall control in the event of any conflict with any other terms of this
Option Agreement.) It is intended that the Options granted hereunder be
Non-Qualified Stock Options ("NQSOs") and NOT Incentive Stock Options ("ISOs")
as such term is defined in section 422 of the Internal Revenue Code of 1986, as
amended (the "Code").

            2. PURCHASE PRICE. The purchase price per share of the shares of
Stock covered by the Options (the "Option Price") shall be $______. It is the
determination of the Committee that on the Grant Date the Option Price was not
less than the higher of: (i) one hundred percent (100%) of the Fair Market Value
of said Stock, or (ii) the par value thereof.

            3. TERM. Unless earlier terminated pursuant to any provision of the
Plan or of this Option Agreement, the Options shall expire _____________ (the
"Expiration

<PAGE>

Date"), which date is not more than ten years from the Grant Date. The Options
shall not be exercisable after the Expiration Date.

            4. EXERCISE OF OPTIONS. The Options shall become exercisable in
annual installments of 25% of the total grant amount, starting on the second
(2nd) anniversary of the Date of Grant, as set forth below, subject to possible
acceleration as provided in this Option Agreement or the Plan, and provided that
no Option shall be exercisable during the six (6) month period commencing on the
Date of Grant.

                  Number of Shares           Date Exercisable
                  ----------------           ----------------
                  [         ]                  [        ]
                  [         ]                  [        ]
                  [         ]                  [        ]
                  [         ]                  [        ]

            Options that become exercisable in accordance with the foregoing
shall remain exercisable, subject to the provisions of the Plan and this Option
Agreement, until the expiration of the term of the Options as set forth in
Section 3 hereof or until other termination of the Options.

            5. METHOD OF EXERCISING OPTIONS. Subject to the terms and conditions
of this Option Agreement and the Plan, the Options may be exercised upon at
least two (2) days written notice to the Company, Attention: General Counsel, at
the Company's principal office, which currently is located at 55 Technology Way,
West Greenwich, Rhode Island 02817, or to such agent as the Company may
designate, at such agent's address. Such notice shall state the election to
exercise the Options and the number of shares with respect to which they are
being exercised; shall be signed by the person or persons so exercising the
Option; shall, if the Company so requests, be accompanied by the investment
certificate referred to in Section 6 hereof; and shall be accompanied by payment
of the full Option price of such shares.

            The Option price shall be paid to the Company:

            (a) In cash, or in its equivalent;

            (b) In unrestricted Stock previously acquired by the Employee and
            held by the Employee for at least six (6) months;

            (c) In any combination of (a) and (b) above; or

            (d) By delivering a properly executed notice of exercise of the
            Options to the Company and a broker, with irrevocable instructions
            to the broker promptly to deliver to the Company the amount of sale
            or loan proceeds necessary to pay the exercise price of the Options,
            and by delivering such

                                     - 2 -
<PAGE>

            proceeds in cash or its equivalent. (NOTE THAT THE PAYMENT PROCEDURE
            SPECIFIED IN CLAUSE (d) IS CONSIDERED A SALE BY AN EMPLOYEE WHO IS
            SUBJECT TO SECTION 16(b) OF THE SECURITIES EXCHANGE ACT OF 1934
            ("SECTION 16(b)") WHICH MAY BE MATCHED WITH ANY NON-EXEMPT PURCHASE
            WITHIN THE SIX-MONTH PERIOD BEFORE OR AFTER THE BROKER FINANCED
            TRANSACTION.)

            In the event such Option Price is paid, in whole or in part, with
shares of Stock, the portion of the Option Price so paid shall be equal to the
Fair Market Value of such Stock being used as payment on the date the notice of
exercise is received by the Company or its agent.

            Upon receipt of such notice and payment, the Company, as promptly as
practicable, shall deliver or cause to be delivered a certificate or
certificates representing the shares of Stock with respect to which the Options
are so exercised. The certificate or certificates for such shares shall be
registered in the name of the person or persons so exercising the Options (or,
if the Options shall be exercised by the Employee and if the Employee shall so
request in the notice exercising the Options, shall be registered in the name of
the Employee and the Employee's spouse, jointly, with right of survivorship) and
shall be delivered as provided above to or upon the written order of the person
or persons exercising the Options. All shares that shall be purchased upon the
exercise of the Options as provided herein shall be fully paid and
non-assessable by the Company.

            6. SHARES TO BE PURCHASED FOR INVESTMENT. Unless the Company has
theretofore notified the Employee that a registration statement covering the
shares to be acquired upon the exercise of the Options has become effective
under the Securities Act of 1933 and the Company has not thereafter notified the
Employee that such registration is no longer effective, it shall be a condition
to any exercise of the Options that the shares acquired upon such exercise be
acquired for investment and not with a view to distribution, and the person
effecting such exercise shall submit to the Company a certificate of such
investment intent, together with such other evidence supporting the same as the
Company may request. The Company shall be entitled to restrict the
transferability of the shares issued upon any such exercise to the extent
necessary to avoid a risk of violation of the Securities Act of 1933 (or of any
rules or regulations promulgated thereunder) or of any state laws or
regulations. Such restrictions may, at the option of the Company, be noted or
set forth in full on the share certificates.

            7. NON-TRANSFERABILITY OF OPTION. Except as otherwise permitted by
the Committee, the Options are not assignable or transferable, in whole or in
part, by the Employee otherwise than by will or by the laws of descent and
distribution, and during the lifetime of the Employee the Options shall be
exercisable only by the Employee or, in the event of his disability, by his
guardian or legal representative. A transferred Option shall continue to be
subject to the same terms and conditions as were applicable to such Option
immediately prior to transfer.

                                     - 3 -
<PAGE>

            8. TERMINATION OF EMPLOYMENT. Subject to Section 10 of the Plan,
"Change-In-Control Provisions", Section 12 of the Plan, "Adjustment Upon Change
of Shares", and Section 14 of the Plan, "Amendment and Termination of Plan", and
unless otherwise determined by the Committee at or after the Grant Date, if the
Employee's employment by the Company terminates prior to the Expiration Date of
the Options set forth in Section 3 hereof, the Options, to the extent
unexercised, shall terminate as follows:

            (a) RETIREMENT. If the Employee retires from the Company, having met
minimum retirement eligibility, all unvested Options previously granted to the
Employee shall be cancelled immediately. Retirement eligibility is based on
achieving a minimum Retirement Factor of 65. Retirement Factor is defined as the
sum of an Eligible Employee's age plus the length of continuous full-time
employment with the Corporation or an Affiliate (if and as defined in the
relevant plan document.) The Employee shall have until the earlier of: (i) two
(2) years from the effective date of retirement, or (ii) the Expiration Date
specified in Section 3 hereof, within which to exercise all vested Options.

            (b) CESSATION OF SERVICE FOR ANY REASON EXCEPT RETIREMENT OR CAUSE.
If the Employee's employment by the Company terminates for any reason other than
retirement as set forth in paragraph (a) above or Cause as set forth in
paragraph (c) herein, the Options may be exercised, but only if vested on the
date of such termination of service, at any time prior to the earlier of: (i)
the Expiration Date specified in Section 3 hereof; or (ii) the expiration of six
(6) months following the date of such termination of employment.

            (c) CESSATION OF SERVICE FOR CAUSE. If the Employee's employment by
the Company is terminated for Cause (as defined in Section 6(f) of the Plan),
all unexercised vested and unvested Options held by the Employee shall lapse and
be forfeited on the date of termination of service.

            (d) Notwithstanding paragraphs (a), (b) and (c) above, the period of
exercisability of the Options following termination of service is subject to
possible earlier termination under the provisions of the Plan.

            9. WITHHOLDING OF TAXES. In calculating the Employee's tax
obligations, the Company shall value the Stock being purchased as follows: With
respect to Sections 5(a) through (c), the value of the Stock being purchased
shall be its Fair Market Value on the day the Company or its agent receives the
Employee's notice of exercise. With respect to Section 5(d), the value of the
Stock being purchased shall be the price at which the Employee's broker enters
into a contract to sell the Stock being purchased, as certified in writing by
such broker. The obligation of the Company to deliver shares of Stock upon the
exercise of the Options shall be subject to the Company's

                                     - 4 -
<PAGE>

receipt of the Employee's share of those amounts which the Company is obligated
to withhold under applicable federal, state and local tax withholding
requirements.

            If the exercise of any of the Options is subject to the withholding
requirements of applicable tax laws, the Committee may permit the Employee,
subject to the provisions of the Plan and such additional withholding rules (the
"Withholding Rules") as may be adopted by the Committee, to satisfy the
withholding tax, in whole or in part, by electing to have the Company withhold
(or by returning to the Company) shares of Stock, which shares shall be valued,
for this purpose, at their Fair Market Value on the date of exercise of the
Options (or, if later, the date on which the optionee recognizes ordinary income
with respect to such exercise) (the "Determination Date"). An election to use
shares of Stock to satisfy tax withholding requirements must be made in
compliance with and subject to the Withholding Rules.

            10. DESIGNATION OF BENEFICIARY. The Employee shall designate, on a
form to be provided by the Company, one or more beneficiaries to receive Options
in the event of the Employee's death prior to the full exercise of such Options;
provided, that if so such beneficiary is designated or if the beneficiary so
designated does not survive the Employee, the estate of such Employee shall be
deemed to be the beneficiary. The Employee may, upon written notice to the
Committee, change the beneficiary designated in this Option Agreement.

            11. GOVERNING LAW. This Option Agreement shall be construed in
accordance with, and its interpretation shall be governed by, the laws of the
State of Delaware, without giving effect to conflicts of laws principles.

            IN WITNESS WHEREOF, the Company has caused this NON-QUALIFIED STOCK
OPTION AGREEMENT to be duly executed by its duly authorized officer, and the
Employee has executed this Agreement, all on the day and year first above
written.

GTECH Holdings Corporation

By: ______________________________

   _________________________________
   Employee

                                     - 5 -
<PAGE>

                           GTECH HOLDINGS CORPORATION

                      NON-QUALIFIED STOCK OPTION AGREEMENT

            NON-QUALIFIED STOCK OPTION AGREEMENT made as of the _____ day of
________, 200__ (the "Grant Date"), between GTECH HOLDINGS CORPORATION, a
Delaware corporation (the "Company"), and ________________, a Non-Employee
Director of the Company (the "Director" or "optionee").

            WHEREAS, the Company desires to afford the Director an opportunity
to purchase shares of Common Stock, $.01 par value, of the Company ("Stock"), as
hereinafter provided, in accordance with the provisions of the Company's 2002
OMNIBUS STOCK OPTION AND LONG-TERM INCENTIVE PLAN (the "Plan"), which is
incorporated herein by reference and made a part hereof. Capitalized terms used
and not otherwise defined herein shall have the meanings ascribed to them in the
Plan.

            NOW THEREFORE, in consideration of the mutual covenants hereinafter
set forth, the parties hereto, intending to be legally bound hereunder, agree as
follows:

            1. GRANT OF OPTIONS. The Company hereby grants to the Director the
right and option (the "Options") to purchase all or any part of an aggregate of
________ shares of Stock. The Options are in all respects limited and
conditioned as hereinafter provided, and are subject to the terms and conditions
of the Plan now in effect and as they may be amended from time to time in
accordance with the Plan and any rules, regulations and procedures pursuant
thereto which may be adopted by the Compensation Committee or such other
committee of the Board of Directors as may be designated (the "Committee") from
time to time. (Said terms, conditions, rules, regulations and procedures are and
automatically shall be incorporated herein by reference and made a part hereof
and shall control in the event of any conflict with any other terms of this
Option Agreement.) It is intended that the Options granted hereunder be
Non-Qualified Stock Options ("NQSOs") and NOT Incentive Stock Options ("ISOs")
as such term is defined in section 422 of the Internal Revenue Code of 1986, as
amended (the "Code").

            2. PURCHASE PRICE. The purchase price per share of the shares of
Stock covered by the Options (the "Option Price") shall be $_____. It is the
determination of the Committee that on the Grant Date the Option Price was not
less than the higher of: (i) one hundred percent (100%) of the Fair Market Value
of said Stock, or (ii) the par value thereof.

            3. TERM. Unless earlier terminated pursuant to any provision of the
Plan or of this Option Agreement, the Options shall expire _______________ (the
"Expiration Date"), which date is not more than ten years from the Grant Date.
The Options shall not be exercisable after the Expiration Date.

                                     - 6 -
<PAGE>

            4. EXERCISE OF OPTIONS. The Options shall become exercisable in such
installments and on such dates, as is set forth below, subject to possible
acceleration as provided in this Option Agreement or the Plan, and provided that
no Option shall be exercisable during the six (6) month period commencing on the
Date of Grant:

                  NUMBER OF SHARES       DATE EXERCISABLE
                  ----------------       ----------------
                     [   ]                  [        ]
                     [   ]                  [        ]
                     [   ]                  [        ]
                     [   ]                  [        ]

Options that become exercisable in accordance with the foregoing shall remain
exercisable, subject to the provisions of the Plan and this Option Agreement,
until the expiration of the term of the Options as set forth in Section 3 hereof
or until other termination of the Options.

            5. METHOD OF EXERCISING OPTIONS. Subject to the terms and conditions
of this Option Agreement and the Plan, the Options may be exercised upon at
least two (2) days written notice to the Company, Attention: General Counsel, at
the Company's principal office, which currently is located at 55 Technology Way,
West Greenwich, Rhode Island 02817, or to such agent as the Company may
designate, at such agent's address. Such notice shall state the election to
exercise the Options and the number of shares with respect to which they are
being exercised; shall be signed by the person or persons so exercising the
Option; shall, if the Company so requests, be accompanied by the investment
certificate referred to in Section 6 hereof; and shall be accompanied by payment
of the full Option price of such shares.

            The Option price shall be paid to the Company:

            (a) In cash, or in its equivalent;

            (b) In unrestricted Stock previously acquired by the Director and
            held by the Director for at least six (6) months;

            (c) In any combination of (a) and (b) above; or

            (d) By delivering a properly executed notice of exercise of the
            Options to the Company and a broker, with irrevocable instructions
            to the broker promptly to deliver to the Company the amount of sale
            or loan proceeds necessary to pay the exercise price of the Options,
            and by delivering such proceeds in cash or its equivalent. (NOTE
            THAT THE PAYMENT PROCEDURE SPECIFIED IN CLAUSE (d) IS CONSIDERED A
            SALE BY A DIRECTOR WHO IS SUBJECT TO SECTION 16(b)

                                     - 7 -
<PAGE>

            OF THE SECURITIES EXCHANGE ACT OF 1934 ("SECTION 16(b)") WHICH MAY
            BE MATCHED WITH ANY NON-EXEMPT PURCHASE WITHIN THE SIX-MONTH PERIOD
            BEFORE OR AFTER THE BROKER FINANCED TRANSACTION.)

            In the event such Option Price is paid, in whole or in part, with
shares of Stock, the portion of the Option Price so paid shall be equal to the
Fair Market Value of such Stock being used as payment on the date the notice of
exercise is received by the Company or its agent.

            Upon receipt of such notice and payment, the Company, as promptly as
practicable, shall deliver or cause to be delivered a certificate or
certificates representing the shares of Stock with respect to which the Options
are so exercised. The certificate or certificates for such shares shall be
registered in the name of the person or persons so exercising the Options (or,
if the Options shall be exercised by the Director and if the Director shall so
request in the notice exercising the Options, shall be registered in the name of
the Director and the Director's spouse, jointly, with right of survivorship) and
shall be delivered as provided above to or upon the written order of the person
or persons exercising the Options. All shares that shall be purchased upon the
exercise of the Options as provided herein shall be fully paid and
non-assessable by the Company.

            6. SHARES TO BE PURCHASED FOR INVESTMENT. Unless the Company has
theretofore notified the Director that a registration statement covering the
shares to be acquired upon the exercise of the Options has become effective
under the Securities Act of 1933 and the Company has not thereafter notified the
Director that such registration is no longer effective, it shall be a condition
to any exercise of the Options that the shares acquired upon such exercise be
acquired for investment and not with a view to distribution, and the person
effecting such exercise shall submit to the Company a certificate of such
investment intent, together with such other evidence supporting the same as the
Company may request. The Company shall be entitled to restrict the
transferability of the shares issued upon any such exercise to the extent
necessary to avoid a risk of violation of the Securities Act of 1933 (or of any
rules or regulations promulgated thereunder) or of any state laws or
regulations. Such restrictions may, at the option of the Company, be noted or
set forth in full on the share certificates.

            7. NON-TRANSFERABILITY OF OPTION. Except as otherwise permitted by
the Committee, the Options are not assignable or transferable, in whole or in
part, by the Director otherwise than by will or by the laws of descent and
distribution, and during the lifetime of the Director the Options shall be
exercisable only by the Director or, in the event of his disability, by his
guardian or legal representative. A transferred Option shall continue to be
subject to the same terms and conditions as were applicable to such Option
immediately prior to transfer.

            8. TERMINATION OF SERVICE. Subject to Section 10 of the Plan,
"Change-In-Control Provisions", Section 12 of the Plan, "Adjustment Upon Change
of Shares",

                                     - 8 -
<PAGE>

and Section 14 of the Plan, "Amendment and Termination of Plan", and unless
otherwise determined by the Committee at or after the Grant Date, if the
Director's service as a director of the Company terminates prior to the
Expiration Date of the Options set forth in Section 3 hereof, the Options, to
the extent unexercised, shall terminate as follows:

            (a) CESSATION OF SERVICE FOR CAUSE. If the Director is removed from
service as a director of the Company for Cause (as defined in Section 6(f) of
the Plan), all unexercised vested and unvested Options held by the Director
shall lapse and be forfeited on the date of termination of service.

            (b) CESSATION OF SERVICE FOR ANY REASON OTHER THAN CAUSE, WITH LESS
THAN SIX YEARS SERVICE. If the Director's service as a director of the Company
terminates for any reason other than Cause as set forth in paragraph (a) herein
and at the time of cessation he/she has served as a director of the Company for
less than six (6) consecutive years, then the Options may be exercised, but only
if vested on the date of such termination of service, at any time prior to the
earlier of: (i) the Expiration Date specified in Section 3 hereof; or (ii) the
expiration of six (6) months following the date of such termination of service.
Notwithstanding the foregoing, if a Director with less than six (6) years of
service retires from service as a director of the Company (such retirement to be
determined at the sole discretion of the Committee), the Director shall have
until the earlier of: (i) two (2) years from the effective date of retirement,
or (ii) the Expiration Date specified in Section 3 hereof, within which to
exercise all Options that are vested at the time of retirement.

            (c) CESSATION OF SERVICE FOR ANY REASON OTHER THAN CAUSE, WITH SIX
YEARS OR MORE OF SERVICE. If the Director's service as a director of the Company
terminates for any reason other than Cause as set forth in paragraph (a) herein
and at the time of cessation of service a Director has served for at least six
(6) consecutive years as a director of the Company, then all unvested Options
previously granted to the Director shall vest and the Director shall have the
earlier of: (i) six (6) months following the Director's cessation of service, or
(ii) until the Expiration Date specified in Section 3 hereof within which to
exercise the Options. Notwithstanding the foregoing, if a Director with six (6)
years or more of service retires from service as a director of the Company (such
retirement to be determined at the sole discretion of the Committee), the
Director shall have until the earlier of (i) two (2) years from the effective
date of retirement, or (ii) the Expiration Date specified in Section 3 hereof,
within which to exercise all Options.

            (d) Notwithstanding paragraphs (a), (b) and (c) above, the period of
exercisability of the Options following termination of service is subject to
possible earlier termination under the provisions of the Plan.

            9. DESIGNATION OF BENEFICIARY. The Director shall designate, on a
form provided by the Company, one or more beneficiaries to receive Options in
the event of the Director's death prior to the full exercise of such Options;
provided, that if so such

                                     - 9 -
<PAGE>

beneficiary is designated or if the beneficiary so designated does not survive
the Director, the estate of such Director shall be deemed to be the beneficiary.
The Director may, upon written notice to the Committee, change the beneficiary
designated in this Option Agreement.

            10. GOVERNING LAW. This Option Agreement shall be construed in
accordance with, and its interpretation shall be governed by, the laws of the
State of Delaware, without giving effect to conflicts of laws principles.

            IN WITNESS WHEREOF, the Company has caused this NON-QUALIFIED STOCK
OPTION AGREEMENT to be duly executed by its duly authorized officer, and the
Director has executed this Agreement, all on the day and year first above
written.

GTECH Holdings Corporation

By: ______________________________                    __________________________

                                     - 10 -
<PAGE>

                           GTECH HOLDINGS CORPORATION

                      NON-QUALIFIED STOCK OPTION AGREEMENT

            NON-QUALIFIED STOCK OPTION AGREEMENT made between GTECH HOLDINGS
CORPORATION, a Delaware corporation (the "Company"), and Stock Option Recipient,
an Employee of the Company (hereinafter, the "Employee" or "Optionee").

            WHEREAS, the Company desires as of Grant Date (the "Grant Date") to
afford the Employee an opportunity to purchase shares of Common Stock, $.01 par
value, of the Company ("Stock"), as hereinafter provided, in accordance with the
provisions of the Company's 2000 OMNIBUS STOCK OPTION AND LONG-TERM INCENTIVE
PLAN (the "Plan"), which is incorporated herein by reference and made a part
hereof. Capitalized terms used and not otherwise defined herein shall have the
meanings ascribed to them in the Plan.

            NOW THEREFORE, in consideration of the mutual covenants hereinafter
set forth, the parties hereto, intending to be legally bound hereunder, agree as
follows:

            1. GRANT OF OPTIONS. The Company hereby grants to the Employee the
right and option (the "Options") to purchase all or any part of an aggregate of
X,XXX shares of Stock. The Options are in all respects limited and conditioned
as hereinafter provided, and are subject to the terms and conditions of the Plan
now in effect and as they may be amended from time to time in accordance with
the Plan and any rules, regulations and procedures pursuant thereto which may be
adopted by the Compensation Committee or such other committee of the Board of
Directors as may be designated (the "Committee") from time to time. (Said terms,
conditions, rules, regulations and procedures are and automatically shall be
incorporated herein by reference and made a part hereof and shall control in the
event of any conflict with any other terms of this Option Agreement.) It is
intended that the Options granted hereunder be Non-Qualified Stock Options
("NQSOs") and NOT Incentive Stock Options ("ISOs") as such term is defined in
section 422 of the Internal Revenue Code of 1986, as amended (the "Code").

            2. PURCHASE PRICE. The purchase price per share of the shares of
Stock covered by the Options (the "Option Price") shall be $ XX.XX. It is the
determination of the Committee that on the Grant Date the Option Price was not
less than the higher of: (i) one hundred percent (100%) of the Fair Market Value
of said Stock, or (ii) the par value thereof.

            3. TERM. Unless earlier terminated pursuant to any provision of the
Plan or of this Option Agreement, the Options shall expire Ten Years minus one
day (the "Expiration Date"), which date is not more than ten years from the
Grant Date. The Options shall not be exercisable after the Expiration Date.

                                     - 11 -
<PAGE>

            4. EXERCISE OF OPTIONS. The Options shall become exercisable in
annual installments of 25% of the total grant amount, starting on the second
anniversary of the Date of Grant, subject to possible acceleration as provided
in this Option Agreement or the Plan, and provided that no Option shall be
exercisable during the six (6) month period commencing on the Date of Grant.

            Options that become exercisable in accordance with the foregoing
shall remain exercisable, subject to the provisions of the Plan and this Option
Agreement, until the expiration of the term of the Options as set forth in
Section 3 hereof or until other termination of the Options.

            5. METHOD OF EXERCISING OPTIONS. Subject to the terms and conditions
of this Option Agreement and the Plan, the Options may be exercised upon written
notice to the Company, Attention: General Counsel, at the Company's principal
office, which currently is located at 55 Technology Way, West Greenwich, Rhode
Island 02817, or to such agent as the Company may designate, at such agent's
address. Such notice shall state the election to exercise the Options and the
number of shares with respect to which they are being exercised; shall be signed
by the person or persons so exercising the Option; shall, if the Company so
requests, be accompanied by the investment certificate referred to in Section 6
hereof; and shall be accompanied by payment of the full Option price of such
shares.

            The Option price shall be paid to the Company:

            (a) In cash, or in its equivalent;

            (b) In unrestricted Stock previously acquired by the Employee and
            held by the Employee for at least six (6) months;

            (c) In any combination of (a) and (b) above; or

            (d) By delivering a properly executed notice of exercise of the
            Options to the Company and a broker, with irrevocable instructions
            to the broker promptly to deliver to the Company the amount of sale
            or loan proceeds necessary to pay the exercise price of the Options,
            and by delivering such proceeds in cash or its equivalent. (NOTE
            THAT THE PAYMENT PROCEDURE SPECIFIED IN CLAUSE (d) IS CONSIDERED A
            SALE BY AN EMPLOYEE WHO IS SUBJECT TO SECTION 16(b) OF THE
            SECURITIES EXCHANGE ACT OF 1934 ("SECTION 16(b)") WHICH MAY BE
            MATCHED WITH ANY NON-EXEMPT PURCHASE WITHIN THE SIX-MONTH PERIOD
            BEFORE OR AFTER THE BROKER FINANCED TRANSACTION.)

                                     - 12 -
<PAGE>

            In the event such Option Price is paid, in whole or in part, with
shares of Stock, the portion of the Option Price so paid shall be equal to the
Fair Market Value of such Stock being used as payment on the date the notice of
exercise is received by the Company or its agent.

            Upon receipt of such notice and payment, the Company, as promptly as
practicable, shall deliver or cause to be delivered a certificate or
certificates representing the shares of Stock with respect to which the Options
are so exercised. The certificate or certificates for such shares shall be
registered in the name of the person or persons so exercising the Options (or,
if the Options shall be exercised by the Employee and if the Employee shall so
request in the notice exercising the Options, shall be registered in the name of
the Employee and the Employee's spouse, jointly, with right of survivorship) and
shall be delivered as provided above to or upon the written order of the person
or persons exercising the Options. All shares that shall be purchased upon the
exercise of the Options as provided herein shall be fully paid and
non-assessable by the Company.

            6. SHARES TO BE PURCHASED FOR INVESTMENT. Unless the Company has
theretofore notified the Employee that a registration statement covering the
shares to be acquired upon the exercise of the Options has become effective
under the Securities Act of 1933 and the Company has not thereafter notified the
Employee that such registration is no longer effective, it shall be a condition
to any exercise of the Options that the shares acquired upon such exercise be
acquired for investment and not with a view to distribution, and the person
effecting such exercise shall submit to the Company a certificate of such
investment intent, together with such other evidence supporting the same as the
Company may request. The Company shall be entitled to restrict the
transferability of the shares issued upon any such exercise to the extent
necessary to avoid a risk of violation of the Securities Act of 1933 (or of any
rules or regulations promulgated thereunder) or of any state laws or
regulations. Such restrictions may, at the option of the Company, be noted or
set forth in full on the share certificates.

            7. NON-TRANSFERABILITY OF OPTION. Except as otherwise permitted by
the Committee, the Options are not assignable or transferable, in whole or in
part, by the Employee otherwise than by will or by the laws of descent and
distribution, and during the lifetime of the Employee the Options shall be
exercisable only by the Employee or, in the event of his disability, by his
guardian or legal representative. A transferred Option shall continue to be
subject to the same terms and conditions as were applicable to such Option
immediately prior to transfer.

            8. TERMINATION OF EMPLOYMENT. Subject to Section 10 of the Plan,
"Change-In-Control Provisions", Section 4(b) of the Plan, "Changes in Stock",
and Section 12 of the Plan, "Amendment and Termination", and unless otherwise
determined by the Committee at or after the Grant Date, if the Employee's
employment by the Company terminates prior to the Expiration Date of the Options
set forth in Section 3 hereof, the Options, to the extent unexercised, shall
terminate as follows:

                                     - 13 -
<PAGE>

            (a) CESSATION OF SERVICE FOR ANY REASON EXCEPT CAUSE. If the
Employee's employment by the Company terminates for any reason other than for
Cause as set forth in paragraph (b) herein, the Options may be exercised, but
only if vested on the date of such termination of service, at any time prior to
the earlier of: (i) the Expiration Date specified in Section 3 hereof; or (ii)
the expiration of six (6) months following the date of such termination of
employment.

            (b) CESSATION OF SERVICE FOR CAUSE. If the Employee's employment by
the Company is terminated for Cause (as defined in Section 6(f) of the Plan),
all unexercised vested and unvested Options held by the Employee shall lapse and
be forfeited on the date of termination of service.

            (c) Notwithstanding paragraph (a) above, the period of
exercisability of the Options following termination of service is subject to
possible earlier termination under the provisions of the Plan.

            9. WITHHOLDING OF TAXES. In calculating the Employee's tax
obligations, the Company shall value the Stock being purchased as follows: With
respect to Sections 5(a) through (c), the value of the Stock being purchased
shall be its Fair Market Value on the day the Company or its agent receives the
Employee's notice of exercise. With respect to Section 5(d), the value of the
Stock being purchased shall be the price at which the Employee's broker enters
into a contract to sell the Stock being purchased, as certified in writing by
such broker. The obligation of the Company to deliver shares of Stock upon the
exercise of the Options shall be subject to the Company's receipt of the
Employee's share of those amounts which the Company is obligated to withhold
under applicable federal, state and local tax withholding requirements.

            If the exercise of any of the Options is subject to the withholding
requirements of applicable tax laws, the Committee may permit the Employee,
subject to the provisions of the Plan and such additional withholding rules (the
"Withholding Rules") as may be adopted by the Committee, to satisfy the
withholding tax, in whole or in part, by electing to have the Company withhold
(or by returning to the Company) shares of Stock, which shares shall be valued,
for this purpose, at their Fair Market Value on the date of exercise of the
Options (or, if later, the date on which the Optionee recognizes ordinary income
with respect to such exercise) (the "Determination Date"). An election to use
shares of Stock to satisfy tax withholding requirements must be made in
compliance with and subject to the Withholding Rules.

            10. DESIGNATION OF BENEFICIARY. The Employee shall designate, on a
form set forth in Exhibit A to this Agreement, one or more beneficiaries to
receive Options in the event of the Employee's death prior to the full exercise
of such Options; provided, that if so such beneficiary is designated or if the
beneficiary so designated does not survive the Employee, the estate of such
Employee shall be deemed to be the beneficiary. The Employee may, upon written
notice to the Committee, change the beneficiary designated in this Option
Agreement.

                                     - 14 -
<PAGE>

            11. GOVERNING LAW. This Option Agreement shall be construed in
accordance with, and its interpretation shall be governed by, the laws of the
State of Delaware, without giving effect to conflicts of laws principles.

                                     - 15 -
<PAGE>

IN WITNESS WHEREOF, the Company has caused this NON-QUALIFIED STOCK OPTION
AGREEMENT to be duly executed by its duly authorized officer, and the Employee
has executed this Agreement, all on the day and year first above written.

GTECH Holdings Corporation

By
   --------------------------------

                                     - 16 -
<PAGE>

                                    EXHIBIT A

                         DESIGNATION OF BENEFICIARY FORM
                                  STOCK OPTIONS

                                  INSTRUCTIONS

                       PLEASE READ THE FOLLOWING CAREFULLY
                          BEFORE COMPLETING THIS FORM.

1.    Please type or complete the form in ink. Once completed, please sign the
      form in ink.

2.    State the full name and address of all beneficiaries. Please PRINT OR TYPE
      all beneficiary information. State the beneficiary's relationship to you.
      If your beneficiary is not related to you, please show the relationship as
      "friend".

3.    You may designate a trust as a beneficiary by stating the full trust name
      on the beneficiary line. For example:

            "To X Bank as Trustee, or its successor Trustee, of the John E.
            Jones Trust dated the 14th day of June, 2001, including any
            amendments to the Trust"

      You must also provide the trust's address.

4.    You may, but need not, designate more than one beneficiary for the receipt
      of your stock options in the event of your death.

5.    Contingent beneficiaries only receive benefits if all named primary
      beneficiaries dies before you.

6.    If you wish these benefits to go into your estate rather than to a
      specified beneficiary, you may do so by writing the following in Section 2
      of the form: "I HEREBY DESIGNATE MY ESTATE AS THE BENEFICIARY OF THESE
      BENEFITS."

7.    Please indicate in Section 4 of the form whether you wish this Designation
      of Beneficiary to also apply to any future grants of stock options made to
      you by the Company. If you elect to have this Designation of Beneficiaries
      to apply to future grants, YOU WILL NOT NEED TO COMPLETE ANY FURTHER
      DESIGNATION OF BENEFICIARY FORM IN CONNECTION WITH ANY FUTURE
      NON-QUALIFIED STOCK OPTION AGREEMENTS. If you elect to have this
      Designation of Beneficiary apply only to this Non-Qualified Stock Option
      Agreement, you will need to complete a new Designation

                                     - 17 -
<PAGE>

      of Beneficiary form with any future Non-Qualified Stock Option Agreement
      you may be given by the Company.

8.    Once completed, please sign and date the form in Section 4.

9.    Please return this completed form to: Denise Ogilvie, Legal Department,
      GTECH Corporation, 55 Technology Way, West Greenwich, Rhode Island 02817.
      You may change your designation at any time by completing a new form and
      submitting it to Ms. Ogilvie.

                                     - 18 -
<PAGE>

                         DESIGNATION OF BENEFICIARY FORM
                                  STOCK OPTIONS

I am the recipient of stock options ("Stock Options") granted in an agreement
dated __________________with GTECH Holdings Corporation. I hereby direct that in
the event of my death prior to exercise of such Stock Options, such Stock
Options shall be transferred to the beneficiary or beneficiaries set forth in
this form. I understand that unless I make the election in Section 4 below, this
designation of beneficiaries applies only to the Stock Options granted in the
agreement specified above.

1. PARTICIPANT INFORMATION

Name:       _____________________________________________________
            Last               First               Middle Initial

Address:    ____________________________________________________
            Street

            ____________________________________________________
            City               State                Postal Code

            ____________________________________________________
            Country

Social Security Number (or equivalent): ______________________________

Date of Birth: ___________________________

2. PRIMARY BENEFICIARY

I hereby designate the following person or persons as primary beneficiary of my
Stock Options in the event of my death prior to exercise of such Stock Options.
(If additional space is needed for beneficiary information, please attach a
separate sheet of paper to this form with the information noted below.) PLEASE
PRINT OR TYPE ALL INFORMATION.

Name: ___________________________          Name: ____________________________

Address: ________________________          Address: _________________________

         ________________________                    ________________________

Date of Birth: __________________          Date of Birth: ___________________

Social Sec. No.: ________________          Social Sec. No.: _________________

Relationship                               Relationship
to Participant: _________________          to Participant: __________________

Percentage (whole                          Percentage (whole
increments)*:____________________          increments)*: ____________________

* Percentages must total 100%.

                                     - 19 -
<PAGE>

3.    CONTINGENT BENEFICIARY

In the event that there is no living primary beneficiary at my death, I hereby
designate the following person or persons as contingent beneficiary of my Stock
Options. (If additional space is needed for beneficiary information, please
attach a separate sheet of paper to this form with the information noted below.)
PLEASE PRINT OR TYPE ALL INFORMATION.

Name: ___________________________          Name: ____________________________

Address: ________________________          Address: _________________________

         ________________________                    ________________________

Date of Birth: __________________          Date of Birth: ___________________

Social Sec. No.: ________________          Social Sec. No.: _________________

Relationship                               Relationship
to Participant: _________________          to Participant: __________________

Percentage (whole                          Percentage (whole
increments)*:____________________          increments)*: ____________________

* Percentages must total 100%.

4. APPLICABILITY OF DESIGNATION OF BENEFICIARY TO FUTURE GRANT

[_____] I hereby elect to apply the designation of primary and contingent
beneficiaries set forth in this Designation of Beneficiary form to any future
grants of stock options to me by GTECH Holdings Corporation. I understand that
by making this election, I WILL NOT NEED TO COMPLETE ANY DESIGNATION OF
BENEFICIARY FORM IN CONNECTION WITH ANY FUTURE NON-QUALIFIED STOCK OPTION
AGREEMENTS. I also understand that at any time I may change the beneficiaries
for any particular stock option agreement by completing and submitting to the
Company a new Designation of Beneficiary form, specifying by date the agreements
for which I wish to change the beneficiaries.

[_____] I wish the designation of beneficiaries made in this form to apply ONLY
TO THE NON-QUALIFIED STOCK OPTION AGREEMENT SPECIFIED AT THE HEAD OF THIS FORM.

5. SIGNATURE

I reserve the right to revoke or change any beneficiary designation. I hereby
revoke all my prior designations (if any) of any primary or contingent
beneficiaries with regard to the award of Stock Options specified above.

Participant Signature __________________________    Date _________________

                                     - 20 -

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