Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (this “Agreement”) is made as of March 18, 2008, by and between
Cereplast, Inc., a Nevada corporation (the “Company”), and Randy G. Woelfel, an individual (the
“Employee”), and is made with respect to the following facts:

R E C I T A L S

A. The Company and the Employee wish to ensure that the Company will receive the benefit of
Employee’s loyalty and service.

B. In order to help ensure that the Company receives the benefit of the Employee’s loyalty and
service, the parties desire to enter into this formal Employment Agreement to provide the Employee
with appropriate compensation arrangements and to assure Employee of employment stability.

C. The parties have entered into this Agreement for the purpose of setting forth the terms of
employment of the Employee by the Company.

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the
parties hereto agree as follows:

1. Employment of Employee and Duties. The Company hereby hires the Employee and the
Employee hereby accepts employment upon the terms and conditions described in this Agreement. The
Employee shall continue to be the Chief Operating Officer and President of the Company with all of
the duties, privileges and authorities usually attendant upon such office, including but not
limited to overall supervision of the management of the Company’s operations. Subject to (a) the
general supervision of the Chairman of Board of Directors of the Company and its Chief Executive
Officer, and (b) the Employee’s duty to report to the Chief Executive Officer on a day to day
basis, as specified by it from time-to-time, the Employee shall have all of the authority to
perform his employment duties for the Company.

2. Time and Effort. The Employee agrees to devote his full working time and attention
to the management of the Company’s business affairs, the implementation of its strategic plan, as
determined by the Board of Directors, and the fulfillment of his duties and responsibilities as the
Company’s Chief Operating Officer and President. Expenditure of a reasonable amount of time for
personal matters and business and charitable activities shall not be deemed to be a breach of this
Agreement, provided that those activities do not materially interfere with the services required to
be rendered to the Company under this Agreement.

3. The Company’s Authority. The Employee agrees to comply with the Company’s rules
and regulations as adopted by the Company’s Board of Directors regarding performance of his duties,
and to carry out and perform those orders, directions and policies established by the Company with
respect to his engagement. The Employee shall promptly notify the Company’s Chairman of the Board
of Directors and Chief Executive Officer of any objection he has to the CEO directives and the
reasons for such objection.

4. Noncompetition by Employee. During the term of this Agreement, the Employee shall
not, directly or indirectly, either as an employee, employer, consultant, agent, principal,
partner, stockholder (in a private company), corporate officer, director, or in any other
individual or representative capacity, engage or participate in any business that is in direct
competition with the business of the Company or its affiliates.

5. Term of Agreement. This Agreement shall commence to be effective on March 31, 2008
(the “Commencement Date”), and shall continue until April 1, 2011, unless terminated as provided
below.

 

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6. Compensation. During the term of this Agreement, the Company shall pay the
following compensation to the Employee:

6.1 Annual Compensation. The Employee shall be paid a fixed salary of $350,000 per
year, payable in two installments per month, corresponding to the second half of the previous month
and the first fifteen (15) days of the current month, respectively, commencing on March 31, 2008.
The Employee shall receive an annual seven percent (7%) increase in said fixed salary effective
each January 1st during the term of this Agreement starting on January 1, 2010. Until
the Company is reaching a cash flow positive position, or at the discretion of the Company’s Board
of Directors, the Employee’s monthly installment payments will consist of cash and restricted stock
such that an amount of $100,000 of the total amount of annual compensation payable to the Employee
will be paid to the Employee in restricted stock. Such payments of restricted stock shall be paid
at the end of each quarter on the basis of 6.4 below.

6.2 Additional Compensation. In addition to the annual compensation set forth in
Section 6.1 of this Agreement, the Employee may be paid a bonus or bonuses during each year, as
determined at the sole discretion of the Company’s Board of Directors based on the Board’s
evaluation of the Employee’s definable efforts, accomplishments and similar contributions. A plan
will be established no later than June 1, 2008, commonly between the Employee and the Chairman of
the Company’s Board of Directors, to set goals to be reached for 2008 (for subsequent years, a plan
will be established by December 31st of the prior year). If the goals set forth in the
above-described plan(s) are reached, the Employee will be entitled to receive a bonus equal to
fifty percent (50%) of his annual compensation. Such bonus will be paid, half in cash and the
other half in restricted stock, between January 1 and March 15 of the year following the year in
which the bonus is earned.

6.3 Equity Compensation. In addition to the annual compensation set forth in Section
6.1 of this Agreement, the Employee will be entitled to receive an aggregate amount of 1.5 million
shares of restricted stock, payable as follows: 500,000 shares upon the Commencement Date; 500,000
shares twelve (12) months after the Commencement Date; and 500,000 shares twenty-four (24) months
after the Commencement Date.

6.4 Restricted Stock Terms. All references to restricted stock in this Agreement
refer to restricted shares of common stock of the Company. The fair market value of restricted
stock of the Company to be paid to the Employee in accordance with Sections 6.1, 6.2, or 6.3 of
this Agreement will be determined based on the average fair market value of the Company’s
restricted stock for the quarter ending immediately before the corresponding payment is to be made.

7. Fringe Benefits. Employee shall be entitled to all fringe benefits which the
Company or its subsidiaries may make available from time-to-time for persons with comparable
positions and responsibilities. Without limitation, such benefits shall include participation in
any life and disability insurance programs, profit incentive plans, pension or retirement plans,
and bonus plans as are maintained or adopted from time-to-time by the Company. The Company shall
also provide Employee with medical and dental group insurance coverage or equivalent coverage for
Employee and his dependents. The medical and dental insurance coverage shall be available
beginning on the Commencement Date and shall continue to be available throughout the term of this
Agreement. It is understood by the Company that Employee is currently covered by a favorable plan
from his former employer and therefore, for as long as the Employee continues to be covered under
his former employer’s plan, the Company agrees to reimburse the Employee a monthly cash amount
equivalent to the amount the Employee is required to pay for the former employer’s plan promptly
upon receipt of proof of payment by the Employee of such amount. In addition, the Company will
make a cash payment to the Employee each month in the amount that is the difference between the
amount that the Company would pay for the Employee’s medical and dental insurance in its own
corporate health plan and the amount reimbursed to the Employee in accordance with the preceding
sentence, until such time as the Employee becomes covered under the Company’s health plan.

 

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8. Office and Staff. In order to enable the Employee to discharge his obligations and
duties pursuant to this Agreement, the Company agrees that it shall provide suitable office space
for the Employee in Hawthorne, California, together with all necessary and appropriate supporting
staff and secretarial assistance, equipment, stationery, books and supplies. The Employee agrees
that the office space and supporting staff presently in place is suitable for the purposes of this
Agreement. The Company agrees to provide at its expense parking for one vehicle by the Employee at
the Company’s executive offices.

9. Reimbursement of Expenses. The Company shall reimburse the Employee for all
reasonable travel, mobile telephone, promotional and entertainment expenses incurred in connection
with the performance of the Employee’s duties hereunder, subject to Section 10 of this Agreement
with respect to automobile expenses. The Employee’s reimbursable expenses shall be paid promptly
by the Company upon presentment by the Employee of an itemized list of invoices describing such
expenses. All compensation provided in Sections 6, 7, and 9 of this Agreement shall be subject to
customary withholding tax and other employment taxes, to the extent required by law. In addition,
the Employee will receive an amount of $32,000 to cover his moving expenses and the early
termination of his current lease in Houston. The moving expense reimbursement will be paid as soon
as practicable following the Commencement Date, but in no event later than December 31, 2008. For
a period not to exceed three months the Company will also pay for temporary living in Los Angeles.
If any reimbursement of expenses under this Section 9 is includible in the Employee’s gross income,
(a) the reimbursement of any such expenses in any calendar year shall not affect the amount of
expenses that are reimbursed in any other calendar year, (b) the Employee’s right to reimbursement
for such expenses shall not be subject to liquidation or exchange for any other benefit, and (c)
reimbursement shall be made on or before December 31 of the calendar year following the calendar
year in which the expense was incurred.

10. Automobile. Notwithstanding anything else herein to the contrary, the Company
shall pay to the Employee a fixed amount equal to $800 per month on the last day of each month
during the term of this Agreement as reimbursement to the Employee on a non-accountable basis of
all expenses incurred by the Employee for the use of his automobile for Company business purposes,
including but not limited to depreciation, repairs, maintenance, gasoline and insurance. After the
expiration of the first year of the term of this Agreement, the Company’s Board of Directors will
review and may in its discretion determine to increase the Employee’s automobile allowance, or
authorize the Company to lease an automobile for the Employee. The Employee shall not be entitled
to any other reimbursement for the use of his automobile for business purposes.

11. Vacation. The Employee shall be entitled to four (4) weeks of paid vacation per
year or pro rata portion of each year of service by the Employee under this Agreement. The
Employee shall be entitled to the holidays provided in the Company’s established corporate policy
for employees with comparable duties and responsibilities.

12. Rights In And To Inventions And Patents.

12.1 Description of Parties’ Rights. The Employee agrees that with respect to any
inventions made by him or the Company during the term of this Agreement, solely or jointly with
others, (i) which are made with the Company’s equipment, supplies, facilities, trade secrets or
time, or (ii) which relate to the business of the Company or the Company’s actual or demonstrably
anticipated research or development, or (iii) which result from any work performed by the Employee
for the Company, such inventions shall belong to the Company. The Employee also agrees that the
Company shall have the right to keep such inventions as trade secrets, if the Company chooses.

 

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12.2 Disclosure Requirements. For purposes of this Agreement, an invention is deemed
to have been made during the term of this Agreement if, during such period, the invention was
conceived or first actually reduced to practice. In order to permit the Company to claim rights to
which it may be entitled, the Employee agrees to disclose to the Company in confidence the nature of
all patent applications filed by the Employee during the term of this Agreement.

13. Termination. This Agreement may be terminated in the following manner and not
otherwise:

13.1 Mutual Agreement. This Agreement may be terminated by the mutual written
agreement of the Company and Employee to terminate. In the event of the Employee’s termination by
mutual written agreement of the Company and Employee under this Section, the Employee will receive
any accrued and unpaid salary through the date of such termination, and accrued but unpaid bonus,
if any, with respect to the year of termination and/or the prior year, if such bonus remains unpaid
as of the date of termination, paid in a single cash payment, in accordance with the Company’s
regular payroll practice for the Employee.

13.2 Termination by the Employee for Good Reason. Employee may terminate his
employment with the Company for Good Reason (as defined below). Any of the following shall
constitute “Good Reason” for purposes of this Agreement, to the extent not consented to in writing
by the Employee (where the Employee’s failure to give such consent shall not be a breach of any
provision of this Agreement): (a) removal of the Employee from his position as the Chief Operating
Officer or President of the Company or other material reduction in his authority or responsibility,
in connection with his employment; (b) any material breach by the Company of this Agreement; (c)
any material reduction in the Employee’s annual compensation, as then in effect; or (d) the
relocation of the Employee’s principal place of employment to a location that is more than 50 miles
from such prior location of employment. None of the foregoing shall constitute Good Reason unless
and until (x) Employee shall have given the Company written notice, not more than ninety (90) days
from the initial existence of the Good Reason condition, specifying in reasonable detail the facts
or circumstances alleged to constitute Good Reason, (y) the Company shall not have cured the
applicable Good Reason condition within thirty (30) days of receiving such written notice from the
Employee, and (z) the Employee shall have had a termination of employment within twelve (12) months
of the initial existence of the Good Reason condition.

13.3 Termination by the Company for Breach. The Company may at its option terminate
this Agreement in the event that the Employee intentionally performs his duties in bad faith under
this Agreement, or breaches his fiduciary duty to the Company, to the Board of Directors or to the
Company’s shareholders; provided, however, that the Company shall give the Employee written notice
of specific instances for the basis of any termination of this Agreement by the Company pursuant to
Section 13.3 of this Agreement. Employee shall have a period of thirty (30) days after said notice
in which to cease the alleged violations before the Company may terminate this Agreement. If
Employee ceases to commit the alleged violations within said thirty (30) day period, the Company
may not terminate this Agreement pursuant to this Section. If Employee continues to commit the
alleged violations after said thirty (30) day period, the Company may terminate this Agreement
immediately upon written notification to Employee. Notwithstanding anything else herein to the
contrary, if the Employee is removed pursuant to Section 13.3 of this Agreement, the Employee shall
receive all of the benefits provided in Section 14(c) of this Agreement, regardless of the terms
and conditions of the Company’s Stock Option Plan or any existing stock option agreements or any
amendments thereto governing the options described in Section 14(c) of this Agreement. In the
event of the Employee’s termination by the Company for breach under this Section, the Employee will
receive any accrued and unpaid salary through the date of such termination, and accrued but unpaid
bonus, if any, with respect to the year of termination and/or the prior year, if such bonus remains
unpaid as of the date of termination, paid in a single cash payment, in accordance with the
Company’s regular payroll practice for the Employee.

 

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13.4 Termination Upon Death. This Agreement shall terminate upon the death of the
Employee. In the event of the Employee’s death, the Company will pay the Employee’s surviving
spouse (or estate if there is no surviving spouse) the Employee’s accrued and unpaid salary through
the Employee’s date of death, and accrued but unpaid bonus, if any, with respect to the year of the
Employee’s death and/or the prior year, if such bonus remains unpaid as of the Employee’s date of
death, in a single cash payment as soon as practicable.

13.5 Termination Upon the Disability of the Employee. This Agreement shall terminate
upon the disability of the Employee. As used in the previous sentence, the term “disability” shall
mean the complete disability to discharge Employee’s duties and responsibilities for a continuous
period of not less than six (6) months during any calendar year. Any physical or mental disability
which does not prevent Employee from discharging his duties and responsibilities in accordance with
usual standards of conduct as determined by the Company in its reasonable opinion shall not
constitute a disability under this Agreement. In the event of the Employee’s termination because
of disability under this Section, the Employee will receive any accrued and unpaid salary through
the date of such termination, and accrued but unpaid bonus, if any, with respect to the year of
termination and/or the prior year, if such bonus remains unpaid as of the date of termination, paid
in a single cash payment, in accordance with the Company’s regular payroll practice for the
Employee.

13.6 Other Termination by Employee. If this Agreement is terminated by Employee in
writing for other than Good Reason (i.e., voluntary resignation) then (a) Employer shall not be
entitled to assert any claim against the Employee for consequential or indirect damages or for lost
profits as a result of the termination, and (b) Employee shall not be entitled to any rights set
forth in Section 14 of this Agreement, except that Employee shall be entitled to the right to
exercise vested stock options, if any, for a period of ninety (90) days after the date of the
written notification of termination by the Employee. In the event of the Employee’s termination
for any reason under this Section, the Employee will receive any accrued and unpaid salary through
the date of such termination, and accrued but unpaid bonus, if any, with respect to the year of
termination and/or the prior year, if such bonus remains unpaid as of the date of termination, paid
in a single cash payment, in accordance with the Company’s regular payroll practice for the
Employee.

14. Involuntary Termination. If this Agreement is terminated by the Employee pursuant
to Section 13.2 of this Agreement, or by the Company, in any manner except specifically in
accordance with Section 13.1 or 13.3, 13.4 or 13.5 of this Agreement, then (a) the Company shall
immediately pay to the Employee a lump sum payment equal to the sum of the Employee’s entire
remaining annual compensation for the year of termination and accrued but unpaid bonus, if any,
with respect to the year of termination and/or the prior year, if such bonus remains unpaid as of
the date of termination, payable at that time pursuant to Sections 6.1 and 6.2 herein,
respectively, plus an additional lump sum equal to twenty-four (24) months of his last monthly
payment on record (b) the Employee shall be entitled to all of the benefits under Section 7 of this
Agreement, as amended, through the end of the term of this Agreement, (c) if applicable, all
unvested stock options owned by the Employee will immediately vest, the Employee shall be entitled
to exercise all vested stock options which he owns for the entire remaining exercise period of the
stock options, no such stock options shall terminate prior to said expiration dates, and no
“severance” shall be deemed to have occurred under the Company’s Stock Option Plan or under
existing Stock Option Agreements covering said stock options, and (d) the Employee shall be
entitled receive the payments of restricted stock in accordance with Section 6.3 of this Agreement.
It is specifically agreed that in such event the Employee shall have no duty to mitigate his
damages by seeking comparable, inferior or different employment.

15. Indemnification of the Employee. Pursuant to the provisions and subject to the
limitations of the California Corporations Code, and in particular Sections 204 and 317 therein,
the Company shall indemnify and hold the Employee harmless as provided in Sections 15.1, 15.2 and
15.3 of this Agreement. The Company shall, upon the request of the Employee, assume the defense
and directly bear all of the expense of any action or proceedings which may arise for which the
Employee is entitled to indemnification pursuant to this Section.

 

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15.1 Indemnification of the Employee for Actions by Third Parties. The Company hereby
agrees to indemnify and hold the Employee harmless from any liability, claims, fines, damages,
losses, expenses, judgments or settlements actually incurred by him, including but not limited to
reasonable attorneys’ fees and costs actually incurred by him as they are incurred, as a result of
the Employee being made at any time a party to, or being threatened to be made a party to, any
proceeding (other than an action by or in the right of the Company, which is addressed in Section
15.2 of this Agreement), relating to actions the Employee takes within the scope of his employment
as the Chief Operating Officer of the Company or in any other employment capacity, or in his role
as a director of the Company, provided that the Employee acted in good faith and in a manner he
reasonably believed to be in the best interest of the Company and, in the case of a criminal
proceeding, had no reasonable cause to believe his conduct was unlawful.

15.2 Indemnification of the Employee for Actions in the Right of the Company. The
Company hereby agrees to indemnify and hold the Employee harmless from any liability, claims,
damages, losses, expenses, judgments or settlements actually incurred by him, including but not
limited to reasonable attorneys’ fees and costs actually incurred by him as they are incurred, as a
result of the Employee being made a party to, or being threatened to be made a party to, any
proceeding by or in the right of the Company to procure a judgment in its favor by reason of any
action taken by the Employee as an officer, director or agent of the Company, provided that the
Employee acted in good faith in a manner he reasonably believed to be in the best interests of the
Company and its shareholders, and provided further, that no indemnification by the Company shall be
required pursuant to this Section 15.2 (a) for acts or omissions that involve intentional
misconduct or a knowing and culpable violation of law, (b) for acts or omissions that the Employee
believed to be contrary to the best interests of the Company or its shareholders or that involve
the absence of good faith on the part of the Employee, (c) for any transaction from which the
Employee derived an improper personal benefit, (d) for acts or omissions that show a reckless
disregard by the Employee of his duties to the Company or its shareholders in circumstances in
which the Employee was aware, or should have been aware, in the ordinary course of performing his
duties, of a risk of serious injury to the Company or its shareholders, (e) for acts or omissions
that constitute an unexcused pattern of inattention that amounts to an abdication of the Employee’s
duties to the Company or its shareholders, or (f) for any other act by the Employee for which the
Employee is not permitted to be indemnified under the California Corporations Code. Furthermore,
the Company has no obligation to indemnify the Employee pursuant to this Section 15.2 in any of the
following circumstances:

(A) In respect of any claim, issue, or matter as to which the Employee is adjudged to be
liable to the Company in the performance of his duties to the Company and its shareholders, unless
and only to the extent that the court in which such action was brought determines upon application
that, in view of all the circumstances of the case, he is fairly and reasonably entitled to
indemnity for the expenses and then only in the amount that the court shall determine.

(B) In the event of the application of Section 15.2(A), then for amounts paid in settling or
otherwise disposing of a threatened or pending action without court approval.

(C) In the event of the application of Section 15.2(A), then for expenses incurred in
defending a threatened or pending action which is settled or otherwise disposed of without court
approval.

 

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15.3 Reimbursement. In the event that it is determined by a trier of fact that the
Employee is not entitled to indemnification by the Company pursuant to Sections 15.1 or 15.2 of
this Agreement, then the Employee is obligated to reimburse the Company for all amounts paid by the
Company on behalf of the Employee pursuant to the indemnification provisions of this Agreement. In
the event that the Employee is successful on the merits in the defense of any proceeding referred
to in Sections 15.1 or 15.2 of this Agreement, or any related claim, issue or matter, then the
Company will indemnify and hold the Employee harmless from all fees, costs and expenses actually
incurred by him in connection with the defense of any such proceeding, claim, issue or matter.

16. Assignability of Benefits. Except to the extent that this provision may be
contrary to law, no assignment, pledge, collateralization or attachment of any of the benefits
under this Agreement shall be valid or recognized by the Company. Except as provided by law,
payment provided for by this Agreement shall not be subject to seizure for payment of any debts or
judgments against the Employee, nor shall the Employee have any right to transfer, modify,
anticipate or encumber any rights or benefits hereunder; provided that any stock issued by the
Company to the Employee pursuant to this Agreement shall not be subject to Section 16 of this
Agreement.

17. Directors’ and Officers’ Liability Insurance. The Employee will be added to the
directors’ and officers’ liability insurance for the officers and directors of the Company, which
would include the same coverage for the Employee. The Company covenants to maintain in effect a
directors’ and officers’ liability insurance policy on the same terms and conditions as applicable
to all other officers and directors of the Company.

18. Notice. All notices and other communications required or permitted hereunder
shall be in writing or in the form of a telex or telecopy (confirmed in writing) to be given only
during the recipient’s normal business hours unless arrangements have otherwise been made to
receive such notice by telex or telecopy outside of normal business hours, and shall be mailed by
registered or certified mail, postage prepaid, or otherwise delivered by hand, messenger, or telex
or telecopy (as provided above) addressed (a) if to the Employee, at the address for such Employee
set forth on the signature page hereto or at such other address as such Employee shall have
furnished to the Company in writing or (b) if to the Company, to its principal executive offices
and addressed to the attention of the Chairman of the Board, or at such other address as the
Company shall have furnished in writing to the Employee.

In case of the Company:

Cereplast, Inc.

3433 El Segundo Boulevard

Hawthorne, California 90250

Attention: Chairman of the Board of Directors

Telephone Number: (310) 676-5000

Facsimile Number: (310) 676-5003

In case of the Employee:

Mr. Randy Woelfel

6665 Vista Del Mar

Playa Del Rey, CA 90293

19. Attorneys’ Fees. In the event that any of the parties must resort to legal action
in order to enforce the provisions of this Agreement or to defend such suit, the prevailing party
shall be entitled to receive reimbursement from the nonprevailing party for all reasonable
attorneys’ fees and all other costs incurred in commencing or defending such suit.

 

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20. Entire Agreement. This Agreement embodies the entire understanding among the
parties and merges all prior discussions or communications among them, and no party shall be bound
by any definitions, conditions, warranties, or representations other than as expressly stated in
this Agreement or as subsequently set forth in a writing signed by the duly authorized
representatives of all of the parties hereto.

21. No Oral Change; Amendment. This Agreement may only be changed or modified and any
provision hereof may only be waived by a writing signed by the party against whom enforcement of
any waiver, change or modification is sought. This Agreement may be amended only in writing by
mutual consent of the parties.

22. Severability. In the event that any provision of this Agreement shall be void or
unenforceable for any reason whatsoever, then such provision shall be stricken and of no force and
effect. The remaining provisions of this Agreement shall, however, continue in full force and
effect, and to the extent required, shall be modified to preserve their validity.

23. Applicable Law. This Agreement shall be construed as a whole and in accordance
with its fair meaning. This Agreement shall be interpreted in accordance with the laws of the
State of California, and venue for any action or proceedings brought with respect to this Agreement
shall be in the County of Los Angeles in the State of California.

24. Successors and Assigns. Each covenant and condition of this Agreement shall inure
to the benefit of and be binding upon the parties hereto, their respective heirs, personal
representatives, assigns and successors in interest. Without limiting the generality of the
foregoing sentence, this Agreement shall be binding upon any successor to the Company whether by
merger, reorganization or otherwise.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above
written.

	 	 	 	 	 
	COMPANY:

	 	 	 	CEREPLAST, INC.
	 

	 	 	 	a Nevada corporation
	 
	 	 	 	 
	Attest:
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Frederic Scheer, Chief Executive Officer, and
	 

	 	 	 	Chairman of the Board of Directors
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	EMPLOYEE:
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Randy G. Woelfel
	 
	 	 	 	 
	 

	 	 	 	6665 Vista Del Mar
	 

	 	 	 	Playa Del Rey, CA 90293 
	 

	 	 	 	Telephone Number: 443-945-1685 
	 

	 	 	 	Email: rgwoelfel@yahoo.com

 

-8-Filed by Bowne Pure Compliance

 

Exhibit 10.1

ADDENDUM TO

MASTER
SERVICE AGREEMENT

THIS ADDENDUM TO MASTER SERVICE
AGREEMENT (“Addendum”), dated March 20, 2008, shall act
to amend, modify, supplement and augment that certain Master Service Agreement,
dated November 27, 2006 (the “Agreement”), by and
between Integrated Payment Systems Inc. (“IPS”) and
Global Cash Access, Inc. (“Client”), as amended.
Capitalized terms used herein without definition shall have the meanings
provided in the Agreement.

In consideration of the promises and
the mutual covenants of the parties hereinafter set forth to be paid, kept and
performed, it is agreed as follows:

	1.	 	
In connection with Client entering into that
certain Stock Purchase Agreement, dated February 28, 2008, by and between
Client and Fidelity National Transaction Services, Inc., pursuant to which
Client is purchasing all of the stock of Certegy Gaming Services, Inc.
(“CGS”), as of the closing of the acquisition Exhibit
“C” to the Agreement shall be and hereby is deleted in its entirety
and replaced with Exhibit “C” attached hereto.

	2.	 	
All other terms, conditions and provisions of
the Agreement that are not otherwise altered, affected or impacted by the
terms, conditions and provisions contained herein, shall remain in full force
and effect, including, without limitation, that with the exception of
amendments to the existing Payment Instruments to reflect CGS’ name and
logo, all Payment Instruments used or sold by CGS will be used or sold in
accordance with the Agreement and in the same manner, on the same system, and
in the same reports as Payment Instruments are currently used or sold by GCA,
as same may be amended from time to time in accordance with the Agreement.

IN WITNESS WHEREOF, the parties
hereto have caused this Addendum to be executed by their duly authorized
representatives, as of the date first above written.

	 	 	 	 	 	 
	GLOBAL CASH ACCESS, INC.

	 	INTEGRATED PAYMENT SYSTEMS INC.
	
By: 

	 	 	 	By: 	 
	
 

	 	 
	 	 	 

	
 

	 	Scott Betts 	 	Name: 	 
	
 

	 	 	 	 	 
	 
	
 

	 	President & CEO 	 	Title: 	 
	
 

	 	 	 	 	 
	 

 

4

 

EXHIBIT
C

CLIENT’S WHOLLY OWNED SUBSIDIARIES

	 	 	 
	
Name

	 	Address

	
 

	 	 
	
Global Cash Access (Canada)
Inc. 

(f/k/a CashCall Systems Inc.) 

	 	3525 East Post Road, Suite 120 

Las
Vegas, NV 89120
	
Certegy Gaming Services, Inc.

	 	3525 East Post Road, Suite 120 

Las
Vegas, NV 89120

5

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