Document:

EXHIBIT 10.16.3

 

THIRD
AMENDMENT TO

EXECUTIVE
EMPLOYMENT AND NON-COMPETITION AGREEMENT

 

THIS
THIRD AMENDMENT TO EXECUTIVE EMPLOYMENT AND NON-COMPETITION AGREEMENT (this “Third
Amendment”), dated as of March 3, 2008, is entered into by and between
EnergySolutions, LLC, a Utah limited liability
company (the “Company”), ENV Holdings LLC (“ENV Holdings”), and
Philip O. Strawbridge (the “Executive”). 
This Amendment amends that certain Executive Employment and
Non-competition Agreement between the Company and the Executive dated March 23,
2006, as amended pursuant to the First Amendment to Executive Employment and
Non-Competition Agreement dated October 17, 2007, and as further amended
pursuant to the Second Amendment to Executive Employment and Non-Competition Agreement
dated October 30, 2007 (collectively, the “Agreement”), as follows:

 

1.                                       Section 2
of the Agreement is hereby deleted in its entirety and the following is
substituted in place thereof:

 

2.                                       Term.  The term of this Agreement shall begin on the
date hereof and, unless sooner terminated as provided in Section 6, shall
conclude on December 31, 2011 (the “Employment Term”).

 

2.                                       Section 4(a) of
the Agreement is hereby deleted in its entirety and the following is
substituted in place thereof:

 

(a)                                  Salary.  In consideration of the services rendered by
the Executive under this Agreement, the Company shall pay the Executive a base
salary (the “Base Salary”) at the rate of $450,000 per calendar
year.  The Base Salary shall be paid in
such installments and at such times as the Company pays its regularly salaried
executives and shall be subject to all necessary withholding taxes, FICA
contributions and similar deductions, as well as set-off against any amounts
Executive owes the Company or its affiliates. In addition, if the Company at
any time increases the salaries or hourly wages of other employees of the
Company generally by a percentage equally applied to reflect a “cost-of-living
increase”, the Base Salary shall be increased by the same percentage cost-of-living
increase at the time and in the same manner it is given to other employees of
the Company.

 

3.                                       Section 4(e) of
the Agreement is hereby deleted in its entirety.

 

4.                                       Schedule 2 to
the Agreement is hereby deleted in its entirety and the Schedule 2 attached
hereto and by this reference incorporated herein is substituted in place
thereof.

 

5.                                       The parties
hereby ratify and confirm all terms and conditions set forth in the Agreement
that are not expressly modified by this Third Amendment. This Third Amendment and
the Agreement shall be considered, for all intents and purposes, as one
agreement.  In the event of any conflict
between the terms and provisions of this Third Amendment and the terms and
provisions of the Agreement, the terms and provisions of this Third Amendment
shall, in all instances, prevail.

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Third Amendment as
of the day and year first above written.

 

	
  ENERGYSOLUTIONS, LLC  

  	
   

  	
  ENV HOLDINGS LLC  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  R Steve Creamer  

  	
   

  	
  By:

  	
  /s/
  Lance Hirt  

  
	
  Name:  R Steve Creamer

  	
   

  	
  Name:  Lance Hirt  

  
	
  Title:  Chief Executive Officer

  	
   

  	
  Title:  Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Philip O. Strawbridge  

  	
   

  	
   

  	
   

  
	
  Philip O. Strawbridge

  	
   

  	
   

  	
   

  
						

 

 

Schedule
2

 

Target Bonus

 

	
   

  	
   

  	
  Percentage that Actual EBITDA for a fiscal year

  represents of Budgeted EBITDA for such fiscal year

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  90

  	
  %

  	
  100

  	
  %

  	
  110

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Percentage of Base Salary payable as a Bonus

  	
   

  	
  20

  	
  %

  	
  80

  	
  %

  	
  120

  	
  %

  

 

The Bonus payable to the
Executive hereunder for each fiscal year is to be interpolated for Actual
EBITDA between 90% and 100% or between 100% and 110% of Budgeted EBITDA.

 

For example, if Actual
EBITDA represents 95% of Budgeted EBITDA, a Bonus of 50% of the Executive’s
Base Salary would be payable, calculated as follows:

 

(1)           The increase of Actual EBITDA over the
90% of Budgeted EBITDA benchmark, which in this case equals 5%, is divided by
the difference between (a) 100% and (b) 90% (the two applicable
Budgeted EBITDA benchmarks), yielding 50%;

 

(2)           This amount (50%) is then multiplied by
the difference between (x) 80% (the Bonus at 100% of Budgeted EBITDA) and (y) 20%
(the Bonus at 90% of Budgeted EBITDA), which equals 30% of the Executive’s Base
Salary as the Target Bonus. This incremental 30% is added to the 20% Base
Salary Target Bonus at 90% of Budgeted EBITDA for a total Target Bonus equal to
50% of Base Salary.

 

On the other hand, if
Actual EBITDA represents 105% of Budgeted EBITDA, then a Bonus of 100% of the
Executive’s Base Salary would be payable, calculated as follows:

 

(1)           The increase of Actual EBITDA over the
100% of Budgeted EBITDA benchmark, which in this case equals 5%, is divided by
the difference between (a) 110% and (b) 100% (the two applicable
Budgeted EBITDA benchmarks), yielding 50%;

 

(2)           This amount (50%) is then multiplied by
the difference between (x) 120% (the Target Bonus at 110% of Budgeted
EBITDA) and (y) 80% (the Target Bonus at 100% of Budgeted EBITDA),
resulting in a 20% incremental increase in the Target Bonus, which when added
to the 80% of Base Salary payable when Actual EBITDA equals 100% of Budgeted
EBITDA Benchmark, yields an aggregate bonus equal to 100% of the Executive’s
Base Salary.EXHIBIT
10.42

 

TRADE CREDIT FACILITY AGREEMENT

 

This Trade Credit
Facility Agreement (this “Agreement”)
is entered into as of April 25,
2008, between Elixir Gaming Technologies, Inc., a Nevada corporation
formerly known as VendingData Corporation (the “Borrower”), and Elixir International Limited, a Macau company
(the “Lender”) which is a wholly-owned subsidiary of Elixir Group
Limited (“Elixir”).

 

R  E  C
I  T  A  L  S

 

WHEREAS, the Borrower and Elixir have entered
into that certain Securities Purchase and Product Participation Agreement dated
June 12, 2007, as amended by the certain Securities Amendment and Exchange
Agreement dated October 21, 2007 (the “Participation Agreement”),
pursuant to which, among other things, the Lender has in the past provided
trade credits to the Borrower pursuant to Section 5.2 of Participation
Agreement.

 

WHEREAS, the Lender and Borrower now wish to enter into this loan
agreement for purposes of providing for a formal structure pursuant to which
Lender may, from time to time at its option, provide trade credits to the
Borrower, subject to the terms and conditions hereof.

 

A  G  R  E  E
M  E  N  T

 

NOW THEREFORE, for
and in consideration of the trade credits, loans and/or advances to be made or
extended by the Lender to the Borrower hereunder, the mutual covenants,
promises and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Borrower and the Lender agree as follows:

 

1.             Definitions.

 

The following terms when used in this
Agreement will have the following meanings both in the singular and plural
forms thereof, except where the context requires otherwise:

 

“Advance” means the Lender’s
transfer of unrestricted, unsecured title and complete ownership of electronic
gaming machines (“EGMs”) to Borrower pursuant to Article V of the
Participation Agreement against Borrower’s promise to pay for some or all of
the purchase price of the EGMs through its issuance of a Note hereunder.  The exact dollar amount of each Advance, if
made by the Lender, shall be agreed to in writing by the parties at the time of
such Advance, however it is expected that each Advance shall be calculated
based on the costs of the machine to the Lender, exclusive of any mark-up or
margin on the cost of the EGMs supplied by a party not Affiliated with the
Lender and/or Elixir (for the avoidance of doubt, such mark-up or margin to be
paid separately by the Borrower to the Lender and shall not form part of the
Advance).

 

“Agreement” means this
Trade Credit Facility  Agreement, as
originally executed and as may be amended, modified, supplemented, or restated
from time to time by written agreement between the Borrower and the Lender.

 

“Business Day”
means any day except Saturday, Sunday and any day which shall be a federal
legal holiday in the United States and public holiday in Hong Kong.

 

 

“Cause”
means any Change of Control and/or Event of Default.

 

“Change of
Control” means the occurrence, after the date hereof and except as
specifically provided for in this Agreement, of any of the following
circumstances: (i) any person or two or more persons acting in concert
(other than the Lender or its affiliates) acquire beneficial ownership (within
the meaning of Rule 13d-3 under the Securities Exchange Act of 1934),
directly or indirectly, of securities of the Borrower representing 50% or more
(on a fully-diluted basis) of the combined voting power of all securities of
the Borrower (other than securities owned by Elixir or its affiliates) entitled
to vote in the election of directors; or (ii) the sale of substantially
all of the assets of the Borrower; or (iii) any sale of securities of the
Borrower by Elixir or its affiliates or any issuance of new securities by the
Borrower resulting in the combined voting power of all securities of the
Borrower (on a fully-diluted basis) owned by Elixir or its affiliates falls
below 30%.

 

“Event of Default” means
any event of default described in Section 4 hereof.

 

“Loan” means, at any date,
the aggregate principal amount of all Advances made by the Lender to the
Borrower pursuant to Section 2 hereof and not repaid.

 

“Note” means the
promissory note(s) substantially in the form attached hereto as Exhibit A
made by the Borrower payable to the order of the Lender, together with all
extensions, renewals, modifications, substitutions and changes in form thereof
effected by written agreement between the Borrower and the Lender.

 

“Maturity” of the Note
means the earlier of (a) the date on which the Note becomes due and
payable upon or after the occurrence of an Event of Default; or (b) the
maturity date set forth in the Note.

 

“Term” means the
period over which the Product Participation Agreement is in force.

 

2.             The
Loan.

 

2.1           Loan Advances. 
From time to time, as the Borrower may request and the Lender may agree
in its sole discretion, the Lender may make Advances to the Borrower during the
Term of this
Agreement. Each Advance, if made, shall be evidenced by, and be payable in
accordance with, the terms of a Note executed by the Borrower and issued to the
Lender.

 

2.1.1        Restructuring of Current Trade Credits. 
The parties acknowledge and agree that as of the date of this Agreement,
the Lender has advanced to the Borrower certain trade credits in respect to the
acquisition of gaming machines, casino management systems and accessories (the “Existing
Trade Credits”), all
of which is unsecured, outstanding and payable upon demand of the Lender in accordance
with the payment terms specified in the Product Participation Agreement. 
The Lender agrees that no interest has accrued to-date on the Existing Trade Credits. The parties agree that out of the Existing Trade Credits, a sum of $15,000,000 (the “Initial
Advance”), shall be
extinguished and satisfied through the Borrower’s immediate issuance of a Note,
to be dated as of the date of this Agreement, in the principal amount of the Initial
Advance.

 

2.2           Payments and
Interest on the Note.  The Borrower agrees to repay the principal
amount of all Advances, plus accrued interest thereon, in 24 equal monthly
installments or as otherwise agreed to by the parties and as set forth in the
Note.  Interest on the unpaid principal 

 

 

balance of each Note will
accrue from the date of each Advance (save in the case of Initial Advance where
interest will accrue from the date of the Note as set forth in
Section 2.1.1 above) at a rate equal to eight percent (8%) per annum.  Interest will be calculated on the basis of
365 days in a year.

 

2.3           Manner of
Borrowing .  The Borrower may give the Lender written or
telephonic notice of each requested Advance at such time as the
Borrower receives and accepts a quote from the Lender for the purchase of an
electronic gaming machine which the Borrower intends to accept and raise a
purchase order in respect to.

 

2.4           Payments. 
Notwithstanding any provision of this Agreement and/or the Note to the
contrary (but save and except for the Initial Advance and the Note related
thereto), the Lender
reserves the right, by written notice, to demand immediate payment without
Cause by the  Borrower of all outstanding
sums under all Notes or any of the Notes provided that the Lender agrees that
it will not exercise such right unless it has a genuine financial need to do
so.   Upon receipt of such written notice
by the Lender,  the Borrower shall make
all payments of principal and accrued interest on each relevant Note in
immediately available funds to the Lender at such address or to such account as
Lender may specify from time to time. For the
avoidance of doubt, the Lender agrees that it will not make any demand for
immediate payment of any outstanding sums under the Initial Advance and the
Note related thereto save if there is either (i) an Event of Default; or (ii) Change
of Control (subject to any waiver by the Lender in its sole and absolute
discretion).

 

2.5           Voluntary
Prepayments.  The Borrower may prepay the principal and
accrued interest on each Note, in whole or in part.  All amounts prepaid will be applied first to
accrued and unpaid interest and then to unpaid principal.  The parties agree that there shall be no
penalty or charges for any prepayment made by the Borrower.

 

2.6           Mandatory
Prepayments.  All unpaid principal and accrued interest
will become immediately due and payable upon a Change of Control, unless waived
by the Lender in its sole and absolute discretion.

 

3.             Conditions
of Lending.

 

3.1           Conditions
Precedent to all Loans and Advances.  The
obligation of the Lender to make an Advance hereunder is subject to the
absolute discretion of Lender and if the Lender agrees to make such Advance,
the making of the same will be subject to the satisfaction of each of the
following, unless waived in writing by the Lender:

 

(a)                                  no Event of Default will have occurred
and be continuing;

 

(b)                                 no litigation, arbitration or governmental
investigation or proceeding will be pending, or, to the knowledge of the
Borrower, threatened, against the Borrower or affecting the business or
operations of the Borrower which was not previously disclosed to the Lender
which, if determined adversely to the Borrower, would have a material adverse
effect on the operation or financial condition of the Borrower;

 

(c)                                  no Event of
Default will result from the making of any such Advance; and

 

 

(d)                                 the Borrower shall not have entered into any
agreement, and a third party
shall not have publicly announced its intention to pursue a transaction, that may give rise to a Change in Control.

 

4.             Events
of Default and Remedies.

 

4.1           Events of
Default.  The term “Event of Default” will mean any of
the following events:

 

(a)                                  The Borrower defaults in the payment when
due of any principal or interest on the Note; or

 

(b)                                 The Borrower becomes insolvent or
generally fails to pay or admit in writing its inability to pay its debts as
they become due; or the Borrower applies for, consents to, or acquiesces in the
appointment of a trustee, receiver or other custodian for itself or any of its
property, or makes a general assignment for the benefit of its creditors; or a
trustee, receiver or other custodian will otherwise be appointed for the
Borrower or any of its assets and not be discharged within thirty (30) days; or
any bankruptcy, reorganization, debt arrangement, or other case or proceeding
under any bankruptcy or insolvency law, or any dissolution or liquidation
proceeding will be commenced by or against the Borrower and be consented to or
acquiesced in by the Borrower or remain undismissed for thirty (30) days; or
the Borrower will take any corporate action to authorize, or in furtherance of,
any of the foregoing; or

 

(c)                                  Any judgments, writs, warrants of
attachment, executions or similar process (not undisputedly covered by
insurance) in an aggregate amount in excess of $100,000 will be issued or
levied against the Borrower or any of its assets and will not be released, vacated
or fully bonded prior to any sale and in any event within thirty (30) days
after its issue or levy; or

 

(d)                                 the
condition set out in Section 3.1 (b) could no longer be fulfilled at
any time before the maturity of the Notes or any of them.

 

4.2           Remedies. 
If an Event of Default described in Section 4.1 occurs, the full
unpaid balance of the Notes and all other obligations of the Borrower to the
Lender will automatically be due and payable without declaration, notice,
presentment, protest or demand of any kind (all of which are hereby expressly
waived) and any obligation of the Lender hereunder will automatically terminate
without any liability to the Borrower. 
Upon any Event of Default, the Lender will be entitled to exercise any
and all rights and remedies available at law or in equity for the collection of
the Note and all other obligations of the Borrower to the Lender.

 

5.             Miscellaneous.

 

5.1           Waivers,
Amendments.  The provisions of this Agreement and each
Note may from time to time be amended, modified, or waived, if such amendment,
modification or waiver is in writing and signed by the Lender.  No failure or delay on the part of the Lender
or the holder of the Note(s) in exercising any power or right under such
documents will operate as a waiver thereof, nor will any single or partial
exercise of any such power or right preclude any 

 

 

other or further exercise
thereof or the exercise of any other power or right.  No notice to or demand on the Borrower in any
case will entitle it to any notice or demand in similar or other circumstances.

 

5.2           Notices. 
Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed
given and effective on the earliest of (a) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile number
set forth in this Section 5.2 prior to 3:00 p.m. (Las Vegas time) on
a Business Day, (b) the next Business Day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile
number set forth on the signature pages attached hereto on a day that is
not a Business Day or later than 3:00 p.m. (Las Vegas time) on any
Business Day, (c) the  5th
Business Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service, or (d) upon actual receipt by the
party to whom such notice is required to be given.  The address for such notices and
communications shall be as follows:

 

	
  If to the Company:

  	
  Elixir
  Gaming Technologies, Inc.

  
	
   

  	
  6650 Via
  Austi Parkway, Suite 170

  
	
   

  	
  Las
  Vegas, NV 89119

  
	
   

  	
  Facsimile: (702) 733-7197

  
	
   

  	
  Attn: David R. Reberger,

  
	
   

  	
  Chief Financial Officer,

  
	
   

  	
   

  
	
  If to Elixir:

  	
  Elixir
  International Limited

  
	
   

  	
  19/F.,
  Zhu Kuan Building,

  
	
   

  	
  Avenida
  Xian Xing Hai, Macau

  
	
   

  	
  Facsimile:
  (853) 2875 5165

  
	
   

  	
  Attn.: Danny Liu, Regional
  Finance Officer

  

 

or such other address as may be designated in writing
hereafter, in the same manner, by such person.

 

5.3           Severability. 
Any provision of this Agreement or any Note executed pursuant hereto
which is prohibited or unenforceable in any jurisdiction will, as to such
jurisdiction, be ineffective to the extent of such portion or unenforceability
without invalidating the remaining provisions of this Agreement or such Note or
affecting the validity or enforceability of such provisions in any other
jurisdiction.

 

5.4           Governing Law;
Venue.  This Agreement will be deemed to be a
contract made under and governed by the laws of the State of Nevada.  The Borrower and Lender hereby consent to the
personal jurisdiction of the state and federal courts located in the State of
Nevada in connection with any controversy related to this Agreement, waive any
argument that venue in such forums is not convenient and agrees that any litigation
in connection herewith will be venued the state or federal courts located in
Nevada.

 

5.5           Successors and
Assigns.  This Agreement will be binding upon and will
inure to the benefit of the parties hereto and their respective successors and
assigns, except that Borrower may not assign or transfer its rights hereunder
without the prior written consent of the Lender.

 

 

5.6           Multiple
Counterparts.  This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original and all of which
will constitute one and the same instrument.

 

[Continued on next page]

 

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized as of the day and year first above
written.

 

	
   

  	
  “Borrower”

  
	
   

  	
   

  
	
   

  	
  ELIXIR GAMING TECHNOLOGIES, INC.,

  
	
   

  	
  a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/David R. Reberger

  
	
   

  	
   

  	
   

  	
  David R. Reberger

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  “Lender”

  
	
   

  	
   

  
	
   

  	
  ELIXIR INTERNATIONAL LIMITED,

  
	
   

  	
  a Macau company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Daniel Liu

  
	
   

  	
   

  	
   

  	
  Danny Liu

  
	
   

  	
   

  	
   

  	
  Regional Finance Officer

  

 

 

 EXHIBIT A

to Trade Credit Facility Agreement

FORM OF LOAN NOTE

 

	
  $

  	
   

  	
  , 2008

  
	
   

  	
   

  	
  Las Vegas, Nevada

  

 

FOR VALUE RECEIVED, the undersigned Elixir Gaming Technologies, Inc.,
a Nevada corporation (the “Borrower”),
promises to pay to the order of Elixir International Limited, a Macau company
(the “Lender”), the
principal sum of                    
Dollars ($                    ),
together with interest thereon, in the manner and upon the terms and conditions
set forth herein.  All Advances and all
payments of principal will be recorded by the Lender in its records which
records will be presumed accurate unless such presumption is rebutted by
contrary evidence.

 

This Note shall bear interest on the unpaid principal amount at the
rate of eight percent (8%) per annum. 
The unpaid principal amount and accrued and unpaid interest thereon
shall be paid in 24 equal monthly installments of $             ,
commencing on              
1, 2008 the 1st day of the month immediately following the date of
the Note and continuing on the 1st day of each of the next 23 months
thereafter, with a final payment due on              ,
2010 at which time all principal and interest then unpaid shall be due and
payable.

 

All payments of principal and interest under this Note will be made in
lawful money of the United States of America in immediately available funds at
such place as may be designated by the Lender to the Borrower in writing.

 

This Note is referred to in, and evidences indebtedness incurred under,
the Trade Credit Facility Agreement dated as of April              ,
2008 and made effective as at the same date (referred to herein, as it may be amended, modified, supplemented or
replaced from time to time, as the “Trade
Credit Agreement”) between the Borrower and the Lender.  The terms and conditions under which the
Borrower is permitted and required to make prepayments and repayments of
principal of such indebtedness and under which such indebtedness may be
declared to be immediately due and payable are set forth in the Trade Credit
Agreement, the terms and conditions of which are incorporated herein by
reference.

 

All parties hereto, whether as makers, endorsers or otherwise,
severally waive presentment, demand, protest and notice of dishonor in
connection with this Note.

 

This Note is made under and governed by the internal laws of the State
of Nevada, as provided for in the Trade Credit Agreement.

 

	
   

  	
  ELIXIR GAMING TECHNOLOGIES, INC.,

  
	
   

  	
  a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  David R. Reberger

  
	
   

  	
   

  	
  Chief Financial Officer

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