Document:

EX-4.1

 Exhibit 4.1 

DESCRIPTION OF CAPITAL STOCK 

The following summary of the material terms of the capital stock of Starry Group Holdings, Inc., a Delaware corporation (the
“Company”), is not intended to be a complete summary of the rights and preferences of such securities. The full text of the Amended and Restated Certificate of Incorporation (the “Charter”), bylaws and Warrant Agreement (as
defined below) are included as exhibits to our Annual Report on Form 10-K for the year ended December 31, 2021. You are encouraged to read the applicable provisions of Delaware law, the Charter, the
bylaws and the Warrant Agreement in their entirety for a complete description of the rights and preferences of our securities. 
 Authorized Capital
Stock 
 The Charter authorizes the issuance of 860,000,000 shares of capital stock, of which 800,000,000 shares are shares of
Class A common stock, par value $0.0001 per share (“Class A Common Stock”), 50,000,000 shares are shares of Class X common stock, par value $0.0001 per share (“Class X Common Stock” and, together with the
Class A Common Stock, the “Common Stock”), and 10,000,000 shares are shares of preferred stock, par value $0.0001 per share (“Preferred Stock”). 

Common Stock 
 Class A Common Stock

 Voting Rights 
 Holders of
Class A Common Stock are entitled to cast one vote per share. Generally, holders of all classes of our Common Stock vote together as a single class, and an action is approved by our stockholders if the number of votes cast in favor of the
action exceeds the number of votes cast in opposition to the action. Holders of Class A Common Stock will not be entitled to cumulate their votes in the election of directors. 

The Charter further provides that our board of directors (“Board”) (other than any directors elected by holders of any series of
Preferred Stock) are divided into three classes, Class I, Class II and Class III, with each class serving staggered terms. 

The Charter further provides that the affirmative vote of at least two-thirds of the total voting
power of all then outstanding shares of our stock, voting as a single class, are required to amend, alter, repeal or rescind certain provisions of the Charter, including provisions relating to voting and dividend rights, the size and classifications
of our Board, special meetings, director and officer indemnification, forum selection and amendments to the Charter. The affirmative vote of the holders of at least two-thirds of the voting power of all the
then-outstanding shares of our voting stock, voting as a single class, are required to amend or repeal the bylaws, although the bylaws may be amended by a simple majority vote of our Board. 

Dividend Rights 
 Each holder of
Class A Common Stock will share ratably (based on the number of shares of Class A Common Stock held) if and when any dividend is declared by our Board out of funds legally available therefor, subject to restrictions, whether statutory or
contractual (including with respect to any outstanding indebtedness), on the declaration and payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding our Preferred Stock or any class or series
of stock having a preference over, or the right to participate with, Class A Common Stock with respect to the payment of dividends. 
 Liquidation,
Dissolution and Winding Up 
 In the event of any liquidation, dissolution or winding up of the Company, whether voluntary or
involuntary, each holder of Class A Common Stock then outstanding will participate pro rata in our funds and assets that may be legally distributed to our stockholders, subject to the designations, preferences, limitations, restrictions and
relative rights of any class or series of our Preferred Stock then outstanding. 

 Other Matters 

No shares of Class A Common Stock are subject to redemption or have preemptive rights to purchase additional shares of Class A Common
Stock. Holders of shares of Class A Common Stock do not have subscription, redemption or conversion rights. 
 Class X Common Stock

 Voting Rights 
 Prior to the
Sunset Date (defined below), holders of Class X Common Stock are entitled to cast 20 votes per share of Class X Common Stock. On the Sunset Date, each share of Class X Common Stock will automatically convert into one share of
Class A Common Stock, and from and after the Sunset Date, holders thereof are entitled to one vote per share on all matters on which stockholders generally are entitled to vote. Generally, holders of all classes of our Common Stock vote
together as a single class, and an action is approved by our stockholders if the number of votes cast in favor of the action exceeds the number of votes cast in opposition to the action. Holders of the Class X Common Stock will not be entitled
to cumulate their votes in the election of directors. 
 “Sunset Date” refers to the earlier of (a) the date that is
nine months following the first date after March 29, 2022 (the “Acquisition Merger Effective Date”) on which Chaitanya Kanojia (1) is no longer providing services, whether upon death, resignation, removal or otherwise, to the
Company as a member of the senior leadership team, officer or director and (2) has not provided any such services for the duration of such nine-month period; and (b) the first date after the Acquisition Merger Effective Date as of which
the Qualified Stockholders (as defined in the Charter) have Transferred (as defined in the Charter), in the aggregate, more than 75% of the shares of Class X Common Stock that were held by Chaitanya Kanojia and other registered holders of
Class X Common Stock immediately following the Acquisition Merger Effective Date. 
 Dividend Rights 

Each holder of Class X Common Stock will share ratably (based on the number of shares of Class X Common Stock held) if and when any
dividend is declared by our Board out of funds legally available therefor, subject to restrictions, whether statutory or contractual (including with respect to any outstanding indebtedness), on the declaration and payment of dividends and to any
restrictions on the payment of dividends imposed by the terms of any outstanding Preferred Stock or any class or series of stock having a preference over, or the right to participate with, Class X Common Stock with respect to the payment of
dividends. 
 Liquidation Rights 
 In
the event of any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, each holder of Class X Common Stock then outstanding will participate pro rata in our funds and assets that may be legally distributed to
our stockholders, subject to the designations, preferences, limitations, restrictions and relative rights of any class or series of our Preferred Stock then outstanding. 

Transfers 
 Pursuant to the Charter,
shares of Class X Common Stock are fully transferable to any transferee; provided, however, that such shares of Class X Common Stock will automatically convert into shares of Class A Common Stock upon certain transfers of such
shares, subject to certain exceptions set forth in the Charter, and upon the Sunset Date. 
 Other Matters 

No shares of Class X Common Stock are subject to redemption or have preemptive rights to purchase additional shares of Class X Common
Stock. Each share of Class X Common Stock is convertible into one share of Class A Common Stock at the option of the holder thereof at any time upon written notice to our transfer agent. Each share of Class X Common Stock will
automatically convert into one share of Class A Common Stock (a) upon certain transfers of such shares, subject to exceptions set forth in the Charter or (b) on the Sunset Date. 

Preferred Stock 
 The Charter
provides that our Board has the authority, without action by the stockholders, to designate and issue shares of Preferred Stock in one or more classes or series, and the number of shares constituting any such class or series, and to fix the voting
powers, designations, preferences, limitations, restrictions and relative rights of each class or series of Preferred Stock, including, without limitation, dividend rights, conversion rights, redemption privileges and liquidation preferences, which
rights may be greater than the rights of the holders of our Common Stock. 

 The purpose of authorizing our Board to issue Preferred Stock and determine the rights and
preferences of any classes or series of Preferred Stock is to eliminate delays associated with a stockholder vote on specific issuances. The simplified issuance of Preferred Stock, while providing flexibility in connection with possible
acquisitions, future financings and other corporate purposes, could have the effect of making it more difficult for a third party to acquire, or could discourage a third party from seeking to acquire, a majority of our outstanding voting stock.
Additionally, the issuance of Preferred Stock may adversely affect the holders of Class A Common Stock by restricting dividends on the Class A Common Stock, diluting the voting power of Class A Common Stock or subordinating the
dividend or liquidation rights of Class A Common Stock. As a result of these or other factors, the issuance of our Preferred Stock could have an adverse impact on the market price of Class A Common Stock. 

Warrants 
 In connection with the
Company’s business combination (the “Business Combination”) with FirstMark Horizon Acquisition Corp. (“FirstMark”), FirstMark assigned to us all of FirstMark’s right, title and interest in and to the Warrant Agreement,
dated October 8, 2020, between FirstMark and Continental Stock Transfer & Trust Company (the “Warrant Agent”), as amended by that certain Warrant Assignment, Assumption and Amendment Agreement (the “Warrant Assumption
Agreement”), dated as of March 28, 2022, by and among the Company, FirstMark and the Warrant Agent (as amended, the “Warrant Agreement”), and we assumed, and agreed to pay, perform, satisfy and discharge in full, all of
FirstMark’s liabilities and obligations under the Warrant Agreement arising from and after the SPAC Merger Effective Time (as defined in the Warrant Assumption Agreement). In addition, at the SPAC Merger Effective Time each warrant was adjusted
to entitle the holder to purchase 1.2415 shares of Class A Common Stock at a price of $11.50 per 1.2415 shares (such, adjustment, the “Initial Warrant Adjustment”). 

On April 25, 2022, the Company issued a notice to holders of its warrants, notifying holders of the following adjustments (the
“Subsequent Warrant Adjustments” and, together with the “Initial Warrant Adjustment,” the “Warrant Adjustments”) to the terms of the warrants, effective after the close of trading on April 22, 2022: 

 

	 	•	 	 the adjustment to the warrant price of the warrants from $11.50 per 1.2415 shares to $9.13 per 1.2415 shares of
Class A Common Stock (representing 115% of the Market Value (as defined below)); 

  

	 	•	 	 the adjustment of the $18.00 per share redemption trigger price described in Sections 6.1 and 6.2 of the Warrant
Agreement to $14.29 per share of Class A Common Stock (representing 180% of the Market Value); and 

  

	 	•	 	 the adjustment of the $10.00 per share redemption trigger price described in Section 6.2 of the Warrant
Agreement to $7.94 per share of Class A Common Stock (representing the Market Value). 

 The Subsequent Warrant
Adjustments were required pursuant to Section 4.4 of the Warrant Agreement, as a result of (i) the Company issuing shares of its Class A Common Stock and securities exchangeable for shares of Class A Common Stock at an issue
price of $7.50 per share (the “Newly Issued Price”) for capital raising purposes in connection with the closing of the Business Combination, (ii) the aggregate gross proceeds from such issuances representing more than 60% of the total
equity proceeds, and interest thereon, available for the funding of the Business Combination on the date of the completion of the Business Combination (net of redemptions) and (iii) the volume-weighted average trading price of the Class A
Common Stock during the twenty (20) trading day period starting on the trading day prior to the day on which the Company consummated the Business Combination (such price, the “Market Value”) being below $9.20 per share. The Market
Value was determined to be $7.94 per share. 
 Public Warrants 

After giving effect to the Warrant Adjustments, each whole warrant entitles the registered holder to purchase 1.2415 shares of Class A
Common Stock at a price of $9.13 per 1.2415 shares, subject to adjustment as discussed below, at any time commencing 30 days after the completion of the Business Combination, except as described below. Pursuant to the Warrant Agreement, only a whole
warrant may be exercised at a given time by a warrant holder. The warrants will expire five years after the completion of the Business Combination, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation. 

 We are not obligated to deliver any Class A Common Stock pursuant to the exercise of a
warrant and have no obligation to settle such warrant exercise unless a registration statement under the Securities Act of 1933, as amended (the “Securities Act”), covering the issuance of the shares of Class A Common Stock issuable
upon exercise of the warrants is then effective and a current prospectus relating thereto is current, subject to our satisfying our obligations described below with respect to registration, or a valid exemption from registration is available,
including in connection with a cashless exercise permitted as a result of a notice of redemption described below under “— Redemption of warrants when the price per share of Class A Common Stock equals or exceeds $7.94.” No
warrant is exercisable for cash or on a cashless basis, and we are not obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities
laws of the state of the exercising holder, or an exemption is available. In the event that the conditions in the two immediately preceding sentences are not satisfied with respect to a warrant, the holder of such warrant is not entitled to exercise
such warrant and such warrant may have no value and expire worthless. In the event that a registration statement is not effective for the exercised warrants, the purchaser of a unit containing such warrant will have paid the full purchase price for
the unit solely for the share of Class A Common Stock underlying such unit. 
 We have agreed that as soon as practicable, but in no
event later than 15 business days after the closing of the Business Combination, we will use our commercially reasonable efforts to file with the Securities and Exchange Commission a registration statement covering the issuance, under the Securities
Act, of the Class A Common Stock issuable upon exercise of the warrants, and we will use our commercially reasonable efforts to cause the same to become effective within 60 business days after the closing of the Business Combination and to
maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the warrants in accordance with the provisions of the Warrant Agreement. Notwithstanding the above, if our shares of
Class A Common Stock are, at the time of any exercise of a warrant, not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may,
at our option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or
maintain in effect a registration statement, but will use our commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. In such event, each holder would pay the
exercise price by surrendering the warrants for that number of shares of Class A Common Stock equal to the lesser of (A) the quotient obtained by dividing (x) the product of the number of shares of Class A Common Stock underlying
the warrants, multiplied by the excess of the “fair market value” (defined below) less the exercise price of the warrants by (y) the fair market value and (B) 0.4481815. The “fair market value” as used in the
preceding sentence shall mean the volume weighted average price of the shares of Class A Common Stock for the 10 trading days ending on the trading day prior to the date on which the notice of exercise is received by the Warrant Agent. 

Redemption of warrants when the price per share of Class A Common Stock equals or exceeds $14.29 

Once the warrants become exercisable, we may redeem the warrants (except as described herein with respect to the private placement warrants):

  

	 	•	 	 in whole and not in part; 

 

	 	•	 	 at a price of $0.01 per warrant; 

 

	 	•	 	 upon not less than 30 days’ prior written notice of redemption to each warrant holder; and

  

	 	•	 	 if, and only if, the last reported sale price of our Class A Common Stock for any 20-trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the warrant holders (which we
refer to as the “Reference Value”) equals or exceeds $14.29 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described under the heading “— Warrants
— Public Stockholders’ Warrants — Anti-dilution Adjustments”). 

 We will not redeem the warrants as
described above unless a registration statement under the Securities Act covering the issuance of the shares of Class A Common Stock issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of
Class A Common Stock is available throughout the 30-day redemption period. If and when the warrants become redeemable by us, we may exercise our redemption right even if we are unable to register or
qualify the underlying securities for sale under all applicable state securities laws. 
  

 We have established the last of the redemption criterion discussed above to prevent a
redemption call unless there is at the time of the call a significant premium to the warrant exercise price. If the foregoing conditions are satisfied and we issue a notice of redemption of the warrants, each warrant holder will be entitled to
exercise his, her or its warrant prior to the scheduled redemption date. However, the price of the Class A Common Stock may fall below the $14.29 redemption trigger price (as adjusted for adjustments to the number of shares issuable upon
exercise or the exercise price of a warrant as described under the heading “— Warrants — Public Stockholders’ Warrants — Anti-dilution Adjustments”) as well as the $9.13 (for whole shares) warrant exercise price after
the redemption notice is issued. 
 Redemption of warrants when the price per share of Class A Common Stock equals or exceeds $7.94 

Once the warrants become exercisable, we may redeem the outstanding warrants: 

 

	 	•	 	 in whole and not in part; 

 

	 	•	 	 at $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption provided that holders
will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares determined by reference to the table below, based on the redemption date and the “fair market value” of our Class A
Common Stock (as defined below) except as otherwise described below; 

  

	 	•	 	 if, and only if, the Reference Value (as defined above under “Redemption of warrants when the price per
share of Class A Common Stock equals or exceeds $14.29”) equals or exceeds $7.94 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described under the heading
“— Warrants — Public Stockholders’ Warrants — Anti-dilution Adjustments”); and 

  

	 	•	 	 if the Reference Value is less than $14.29 per share (as adjusted for adjustments to the number of shares
issuable upon exercise or the exercise price of a warrant as described under the heading “—Warrants — Public Stockholders’ Warrants — Anti-dilution Adjustments”), the private placement warrants must also be concurrently
called for redemption on the same terms as the outstanding public warrants, as described above. 

 During the period
beginning on the date the notice of redemption is given, holders may elect to exercise their warrants on a cashless basis. The numbers in the table below represent the number of shares of Class A Common Stock that a warrant holder will receive
upon such cashless exercise in connection with a redemption by us pursuant to this redemption feature, based on the “fair market value” of Class A Common Stock on the corresponding redemption date (assuming holders elect to exercise
their warrants and such warrants are not redeemed for $0.10 per warrant), determined for these purposes based on volume weighted average price of Class A Common Stock during the ten trading days immediately following the date on which the
notice of redemption is sent to the holders of warrants, and the number of months that the corresponding redemption date precedes the expiration date of the warrants, each as set forth in the table below. We will provide our warrant holders with the
final fair market value no later than one business day after the 10-trading day period described above ends. 

The share prices set forth in the column headings of the table below will be adjusted as of any date on which the number of shares issuable
upon exercise of a warrant or the exercise price of a warrant is adjusted as set forth under the heading “— Anti-dilution Adjustments” below. If the number of shares issuable upon exercise of a warrant is adjusted, the adjusted share
prices in the column headings will equal the share prices immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the number of shares deliverable upon exercise of a warrant immediately prior to such
adjustment and the denominator of which is the number of shares deliverable upon exercise of a warrant as so adjusted. The number of shares in the table below shall be adjusted in the same manner and at the same time as the number of shares issuable
upon exercise of a warrant. If the exercise price of a warrant is adjusted pursuant to the second paragraph under the heading “—Anti-dilution Adjustments” below, the adjusted share prices in the column headings will equal the
unadjusted share price less the decrease in the exercise price of a warrant pursuant to such exercise price adjustment. 
 The values
provided in the table below, including in the column headings, give effect to the Warrant Adjustments. 

																																					
	Redemption Date
(period to
expiration of
warrants)	  	Fair Market Value of Class A Common Stock	 
	  	≤7.94	 	  	8.73	 	  	9.53	 	  	10.32	 	  	11.12	 	  	11.91	 	  	12.70	 	  	13.50	 	  	≥14.29	 
	 60 months
	  	 	0.3240315	 	  	 	0.3488615	 	  	 	0.3687255	 	  	 	0.3861065	 	  	 	0.4022460	 	  	 	0.4183855	 	  	 	0.4320420	 	  	 	0.4444570	 	  	 	0.4481815	 
	 57 months
	  	 	0.3190655	 	  	 	0.3438955	 	  	 	0.3650010	 	  	 	0.3848650	 	  	 	0.4022460	 	  	 	0.4183855	 	  	 	0.4320420	 	  	 	0.4444570	 	  	 	0.4481815	 
	 54 months
	  	 	0.3128580	 	  	 	0.3376880	 	  	 	0.3612765	 	  	 	0.3811405	 	  	 	0.3997630	 	  	 	0.4159025	 	  	 	0.4308005	 	  	 	0.4432155	 	  	 	0.4481815	 
	 51 months
	  	 	0.3054090	 	  	 	0.3327220	 	  	 	0.3563105	 	  	 	0.3774160	 	  	 	0.3972800	 	  	 	0.4134195	 	  	 	0.4295590	 	  	 	0.4432155	 	  	 	0.4481815	 
	 48 months
	  	 	0.2992015	 	  	 	0.3265145	 	  	 	0.3513445	 	  	 	0.3736915	 	  	 	0.3935555	 	  	 	0.4121780	 	  	 	0.4270760	 	  	 	0.4419740	 	  	 	0.4481815	 
	 45 months
	  	 	0.2917525	 	  	 	0.3203070	 	  	 	0.3463785	 	  	 	0.3699670	 	  	 	0.3910725	 	  	 	0.4096950	 	  	 	0.4258345	 	  	 	0.4419740	 	  	 	0.4481815	 
	 42 months
	  	 	0.2830620	 	  	 	0.3128580	 	  	 	0.3401710	 	  	 	0.3650010	 	  	 	0.3873480	 	  	 	0.4072120	 	  	 	0.4245930	 	  	 	0.4407325	 	  	 	0.4481815	 
	 39 months
	  	 	0.2743715	 	  	 	0.3054090	 	  	 	0.3339635	 	  	 	0.3600350	 	  	 	0.3836235	 	  	 	0.4034875	 	  	 	0.4221100	 	  	 	0.4394910	 	  	 	0.4481815	 
	 36 months
	  	 	0.2644395	 	  	 	0.2967185	 	  	 	0.3265145	 	  	 	0.3538275	 	  	 	0.3786575	 	  	 	0.4010045	 	  	 	0.4208685	 	  	 	0.4382495	 	  	 	0.4481815	 
	 33 months
	  	 	0.2545075	 	  	 	0.2880280	 	  	 	0.3190655	 	  	 	0.3476200	 	  	 	0.3736915	 	  	 	0.3972800	 	  	 	0.4183855	 	  	 	0.4370080	 	  	 	0.4481815	 
	 30 months
	  	 	0.2433340	 	  	 	0.2780960	 	  	 	0.3103750	 	  	 	0.3401710	 	  	 	0.3687255	 	  	 	0.3923140	 	  	 	0.4159025	 	  	 	0.4357665	 	  	 	0.4481815	 
	 27 months
	  	 	0.2296775	 	  	 	0.2656810	 	  	 	0.3004430	 	  	 	0.3327220	 	  	 	0.3612765	 	  	 	0.3885895	 	  	 	0.4121780	 	  	 	0.4345250	 	  	 	0.4481815	 
	 24 months
	  	 	0.2147795	 	  	 	0.2532660	 	  	 	0.2892695	 	  	 	0.3227900	 	  	 	0.3538275	 	  	 	0.3823820	 	  	 	0.4084535	 	  	 	0.4320420	 	  	 	0.4481815	 
	 21 months
	  	 	0.1998815	 	  	 	0.2396095	 	  	 	0.2768545	 	  	 	0.3128580	 	  	 	0.3463785	 	  	 	0.3774160	 	  	 	0.4047290	 	  	 	0.4308005	 	  	 	0.4481815	 
	 18 months
	  	 	0.1812590	 	  	 	0.2222285	 	  	 	0.2619565	 	  	 	0.3004430	 	  	 	0.3364465	 	  	 	0.3699670	 	  	 	0.3997630	 	  	 	0.4283175	 	  	 	0.4481815	 
	 15 months
	  	 	0.1613950	 	  	 	0.2036060	 	  	 	0.2445755	 	  	 	0.2855450	 	  	 	0.3252730	 	  	 	0.3612765	 	  	 	0.3935555	 	  	 	0.4245930	 	  	 	0.4481815	 
	 12 months
	  	 	0.1378065	 	  	 	0.1812590	 	  	 	0.2247115	 	  	 	0.2681640	 	  	 	0.3103750	 	  	 	0.3501030	 	  	 	0.3873480	 	  	 	0.4208685	 	  	 	0.4481815	 
	 9 months
	  	 	0.1117350	 	  	 	0.1551875	 	  	 	0.2011230	 	  	 	0.2470585	 	  	 	0.2942355	 	  	 	0.3376880	 	  	 	0.3786575	 	  	 	0.4171440	 	  	 	0.4481815	 
	 6 months
	  	 	0.0806975	 	  	 	0.1229085	 	  	 	0.1700855	 	  	 	0.2209870	 	  	 	0.2718885	 	  	 	0.3215485	 	  	 	0.3674840	 	  	 	0.4109365	 	  	 	0.4481815	 
	 3 months
	  	 	0.0422110	 	  	 	0.0806975	 	  	 	0.1291160	 	  	 	0.1862250	 	  	 	0.2445755	 	  	 	0.3016845	 	  	 	0.3550690	 	  	 	0.4047290	 	  	 	0.4481815	 
	 0 months
	  	 	—  	 	  	 	—  	 	  	 	0.0521430	 	  	 	0.1427725	 	  	 	0.2222285	 	  	 	0.2892695	 	  	 	0.3488615	 	  	 	0.4010045	 	  	 	0.4481815	 

 The exact fair market value and redemption date may not be set forth in the table above, in which case, if the
fair market value is between two values in the table or the redemption date is between two redemption dates in the table, the number of shares of Class A Common Stock to be issued for each warrant exercised will be determined by a straight-line
interpolation between the number of shares set forth for the higher and lower fair market values and the earlier and later redemption dates, as applicable, based on a 365 or 366-day year, as applicable. For
example, if the volume weighted average price of Class A Common Stock during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of the warrants is $8.73 per share, and at such time there
are 57 months until the expiration of the warrants, holders may choose to, in connection with this redemption feature, exercise their warrants for 0.3438955 shares of Class A Common Stock for each whole warrant. For an example where the exact
fair market value and redemption date are not as set forth in the table above, if the volume weighted average price of Class A Common Stock during the 10 trading days immediately following the date on which the notice of redemption is sent to
the holders of the warrants is $10.72 per share, and at such time there are 38 months until the expiration of the warrants, holders may choose to, in connection with this redemption feature, exercise their warrants for 0.3699670 shares of
Class A Common Stock for each whole warrant. In no event will the warrants be exercisable in connection with this redemption feature for more than 0.4481815 shares of Class A Common Stock per warrant (subject to adjustment). Finally, as
reflected in the table above, if the warrants are out of the money and about to expire, they cannot be exercised on a cashless basis in connection with a redemption by us pursuant to this redemption feature, since they will not be exercisable for
any shares of Class A Common Stock. 
 This redemption feature differs from the typical warrant redemption features, which typically
only provide for a redemption of warrants for cash (other than the private placement warrants) when the trading price for the applicable common stock exceeds $14.29 per share for a specified period of time. This redemption feature is structured to
allow for all of the outstanding warrants to be redeemed when the shares of Class A Common Stock are trading at or above $7.94 per share, which may be at a time when the trading price of Class A Common Stock is below the exercise price of
the warrants. We have established this redemption feature to provide us with the flexibility to redeem the warrants without the warrants having to reach the $14.29 per share threshold set forth above under “— Redemption of warrants when
the price per share of Class A Common Stock equals or exceeds $14.29.” Holders choosing to exercise their warrants in connection with a redemption pursuant to this feature will, in effect, receive a number of shares for their warrants
based on an option pricing model with a fixed volatility input. This redemption right provides us with an additional mechanism by which to redeem all of the outstanding 

 
warrants, and therefore have certainty as to our capital structure as the warrants would no longer be outstanding and would have been exercised or redeemed. We will be required to pay the
applicable redemption price to warrant holders if we choose to exercise this redemption right and it will allow us to quickly proceed with a redemption of the warrants if we determine it is in our best interest to do so. As such, we would redeem the
warrants in this manner when we believe it is in our best interest to update our capital structure to remove the warrants and pay the redemption price to the warrant holders. 

As stated above, we can redeem the warrants when the Class A Common Stock are trading at a price starting at $7.94, which is below the
exercise price of $9.13, because it will provide certainty with respect to our capital structure and cash position while providing warrant holders with the opportunity to exercise their warrants on a cashless basis for the applicable number of
shares. If we choose to redeem the warrants when the shares of Class A Common Stock are trading at a price below the exercise price of the warrants, this could result in the warrant holders receiving fewer shares of Class A Common Stock
than they would have received if they had chosen to exercise their warrants for shares of Class A Common Stock if and when such shares of Class A Common Stock were trading at a price higher than the exercise price of $9.13. 

No fractional shares of Class A Common Stock will be issued upon exercise. If, upon exercise, a holder would be entitled to receive a
fractional interest in a share, we will round down to the nearest whole number of the number of shares of Class A Common Stock to be issued to the holder. If, at the time of redemption, the warrants are exercisable for a security other than the
shares of Class A Common Stock pursuant to the Warrant Agreement, the warrants may be exercised for such security. At such time as the warrants become exercisable for a security other than the shares of Class A Common Stock, we will use
our commercially reasonable efforts to register under the Securities Act the security issuable upon the exercise of the warrants. 
 Redemption
Procedures 
 A holder of a warrant may notify us in writing in the event it elects to be subject to a requirement that such holder will
not have the right to exercise such warrant, to the extent that after giving effect to such exercise, such person (together with such person’s affiliates), to the Warrant Agent’s actual knowledge, would beneficially own in excess of 9.8%
(or such other amount as a holder may specify) of the shares of Class A Common Stock issued and outstanding immediately after giving effect to such exercise. 

Anti-dilution Adjustments 
 If the number
of issued and outstanding shares of Class A Common Stock is increased by a stock dividend payable in shares of Class A Common Stock, or by a split-up of shares of Class A Common Stock or other
similar event, then, on the effective date of such stock dividend, split-up or similar event, the number of shares of Class A Common Stock issuable on exercise of each warrant will be increased in
proportion to such increase in the issued and outstanding shares of Class A Common Stock. A rights offering made to all or substantially all holders of Class A Common Stock entitling holders to purchase shares of Class A Common Stock
at a price less than the “historical fair market value” (as defined below) will be deemed a share dividend of a number of shares of Class A Common Stock equal to the product of (1) the number of shares of Class A Common
Stock actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for shares of Class A Common Stock) and (2) one minus the quotient of
(x) the price per share of Class A Common Stock paid in such rights offering and (y) the historical fair market value. For these purposes, (1) if the rights offering is for securities convertible into or exercisable for shares of
Class A Common Stock, in determining the price payable for Class A Common Stock, there will be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (2)
“historical fair market value” means the volume weighted average price of Class A Common Stock during the 10-trading day period ending on the trading day prior to the first date on which the
shares of Class A Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights. 

In addition, if we, at any time while the warrants are outstanding and unexpired, pay to all or substantially all of the holders of
Class A Common Stock a dividend or make a distribution in cash, securities or other assets to the holders of Class A Common Stock on account of such shares of Class A Common Stock (or other securities into which the warrants are
convertible), other than (a) as described above, (b) any cash dividends or cash distributions which, when combined on a per share basis with all other cash dividends and cash distributions paid on the Class A Common Stock during the 365-day period ending on the date of declaration of such dividend or distribution does not exceed $0.50 (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) but

 
only with respect to the amount of the aggregate cash dividends or cash distributions equal to or less than $0.50 per share or (c) to satisfy the redemption rights of the holders of
Class A Common Stock in connection with a stockholder vote to amend our amended and restated certificate of incorporation with respect to any provision relating to stockholders’ rights, then the warrant exercise price will be decreased,
effective immediately after the effective date of such event, by the amount of cash and/or the fair market value of any securities or other assets paid on each shares of Class A Common Stock in respect of such event. 

If the number of issued and outstanding shares of Class A Common Stock is decreased by a consolidation, combination, reverse stock split
or reclassification of shares of Class A Common Stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split, reclassification or similar event, the number of shares of Class A Common
Stock issuable on exercise of each warrant will be decreased in proportion to such decrease in issued and outstanding shares of Class A Common Stock. 

Whenever the number of shares of Class A Common Stock purchasable upon the exercise of the warrants is adjusted, as described above, the
warrant exercise price will be adjusted by multiplying the warrant exercise price immediately prior to such adjustment by a fraction (x) the numerator of which will be the number of shares of Class A Common Stock purchasable upon the
exercise of the warrants immediately prior to such adjustment and (y) the denominator of which will be the number of shares of Class A Common Stock so purchasable immediately thereafter. 

In case of any reclassification or reorganization of the issued and outstanding shares of Class A Common Stock (other than those that
solely affects the par value of such shares of Class A Common Stock), or in the case of any merger or consolidation of us with or into another corporation (other than a merger or consolidation in which we are the continuing corporation and that
does not result in any reclassification or reorganization of our issued and outstanding shares of Class A Common Stock), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of us as an
entirety or substantially as an entirety in connection with which we are dissolved, the holders of the warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the warrants and in
lieu of the shares of our Class A Common Stock immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares, stock or other equity securities or property (including cash)
receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the warrants would have received if such holder had exercised their warrants immediately
prior to such event. However, if such holders were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable upon such merger or consolidation, then the kind and amount of securities, cash or
other assets for which each warrant will become exercisable will be deemed to be the weighted average of the kind and amount received per share by such holders in such merger or consolidation that affirmatively make such election, and if a tender,
exchange or redemption offer has been made to and accepted by such holders (other than a tender, exchange or redemption offer made by the company in connection with redemption rights held by stockholders of the company as provided for in the
company’s amended and restated certificate of incorporation) under circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of which such maker is a part, and together with any affiliate or associate of such maker (within the meaning of Rule
12b-2 under the Exchange Act) and any members of any such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3
under the Exchange Act) more than 50% of the issued and outstanding shares of Class A Common Stock, the holder of a warrant will be entitled to receive the highest amount of cash, securities or other property to which such holder would actually
have been entitled as a stockholder if such warrant holder had exercised the warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the shares of Class A Common Stock held by such holder had been
purchased pursuant to such tender or exchange offer, subject to adjustment (from and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in the Warrant Agreement. Additionally, if
less than 70% of the consideration receivable by the holders of Class A Common Stock in such a transaction is payable in the form of Class A Common Stock in the successor entity that is listed for trading on a national securities exchange
or is quoted in an established over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the registered holder of the
warrant properly exercises the warrant within 30 days following public disclosure of such transaction, the warrant exercise price will be reduced as specified in the warrant agreement based on the per share consideration minus Black-Scholes
Warrant Value (as defined in the Warrant Agreement) of the warrant. 

 The warrants are issued in registered form under a Warrant Agreement between Continental
Stock Transfer & Trust Company, as Warrant Agent, and us. The Warrant Agreement provides that (a) the terms of the warrants may be amended without the consent of any holder for the purpose of (i) curing any ambiguity or correcting
any mistake or defective provision or (ii) adding or changing any provisions with respect to matters or questions arising under the Warrant Agreement as the parties to the Warrant Agreement may deem necessary or desirable and that the parties
deem to not adversely affect the rights of the registered holders of the warrants and (b) all other modifications or amendments require the vote or written consent of at least 65% of the then outstanding public warrants and, solely with respect
to any amendment to the terms of the private placement warrants or any provision of the Warrant Agreement with respect to the private placement warrants, at least 65% of the then outstanding private placement warrants. 

The warrant holders do not have the rights or privileges of holders of Common Stock and any voting rights until they exercise their warrants
and receive shares of Class A Common Stock. After the issuance of shares of Class A Common Stock upon exercise of the warrants, each holder will be entitled to one vote for each share held of record on all matters to be voted on by
stockholders. 
 Private Placement Warrants 

The private placement warrants (including the shares of Class A Common Stock issuable upon exercise of the private placement warrants)
will not be transferable, assignable or salable until 30 days after the completion of the Business Combination (except, among other limited exceptions to our directors and officers and other persons or entities affiliated with FirstMark Horizon
Sponsor LLC, a Delaware limited liability company (the “Sponsor”)) and they will not be redeemable by us (except as described under “— Warrants — Public Warrants — Redemption of warrants when the price per share of
Class A Common Stock equals or exceeds $7.94”) so long as they are held by the Sponsor or its permitted transferees. The Sponsor, or its permitted transferees, has the option to exercise the private placement warrants on a cashless basis
and have certain registration rights described herein. Otherwise, the private placement warrants have terms and provisions that are identical to those of the public warrants. If the private placement warrants are held by holders other than the
Sponsor or its permitted transferees, the private placement warrants will be redeemable by us in all redemption scenarios and exercisable by the holders on the same basis as the public warrants. 

Except as described under “— Warrants — Public Warrants — Redemption of warrants when the price per share of Class A
Common Stock equals or exceeds $7.94,” if holders of the private placement warrants elect to exercise them on a cashless basis, they would pay the exercise price by surrendering his, her or its warrants for that number of shares of Class A
Common Stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class A Common Stock underlying the warrants, multiplied by the excess of the “historical fair market value” (defined
below) less the exercise price of the warrants by (y) the historical fair market value. For these purposes, the “historical fair market value” shall mean the average last reported sale price of the Class A Common Stock for the 10
trading days ending on the third trading day prior to the date on which the notice of warrant exercise is sent to the Warrant Agent. We have policies in place that restrict insiders from selling our securities except during specific periods of time.
Even during such periods of time when insiders will be permitted to sell our securities, an insider cannot trade in our securities if he or she is in possession of material non-public information. Accordingly,
unlike Public Stockholders who could exercise their warrants and sell the shares of Class A Common Stock received upon such exercise freely in the open market in order to recoup the cost of such exercise, the insiders could be significantly
restricted from selling such securities. As a result, we believe that allowing the holders to exercise such warrants on a cashless basis is appropriate. 

Exclusive Forum 
 The Charter provides
that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery (the “Chancery Court”) of the State of Delaware (or, in the event that the Chancery Court does not have jurisdiction, the federal district
court for the District of Delaware or other state courts of the State of Delaware) and any appellate court thereof shall, to the fullest extent permitted by law, be the sole and exclusive forum for: (1) any derivative action, suit or proceeding
brought on our behalf; (2) any action, suit or proceeding asserting a claim of breach of a fiduciary duty owed by any of our current or former directors, officers, stockholders or employees of ours or our stockholders; (3) any action, suit
or proceeding asserting a claim against us arising pursuant to any provision of the Delaware General Corporation Law, as amended (the “DGCL”), the bylaws or the Charter (as either may be amended from time to time); or (4) any action,
suit or proceeding asserting a claim against us or any current or former director, officer or stockholder governed by the internal affairs doctrine. 

 The Charter provides that the federal district courts of the United States of America shall
be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. If any such foreign action is filed in a court other than the courts in the State of Delaware in the name of any stockholder,
such stockholder shall be deemed to have consented to (a) the personal jurisdiction of the state and federal courts in the State of Delaware in connection with any action brought in any such court to enforce such actions and (b) having
service of process made upon such stockholder in any such action by service upon such stockholder’s counsel in the foreign action as agent for such stockholder. The Charter also provides that any person or entity purchasing or otherwise
acquiring any interest in any of our securities shall be deemed to have notice of and consented to this choice of forum provision. It is possible that a court of law could rule that the choice of forum provision contained in our certificate of
incorporation is inapplicable or unenforceable if it is challenged in a proceeding or otherwise. This choice of forum provision has important consequences for our stockholders. 

Certain Anti-Takeover Provisions of Delaware Law and the Charter and Bylaws 

We have opted out of Section 203 of the DGCL under the Charter and bylaws, but the Charter and bylaws have protections similar to those
afforded by Section 203 of the DGCL, which prohibit us from engaging in any business combination with any stockholder for a period of three years following the time that such stockholder (the “interested stockholder”) came to own at
least 15% of our outstanding voting stock (the “acquisition”), except if: 
  

	 	•	 	 our Board approved the acquisition prior to its consummation; 

 

	 	•	 	 the interested stockholder owned at least 85% of the outstanding voting stock upon consummation of the
acquisition; or 

  

	 	•	 	 the business combination is approved by our Board, and by a two-thirds
vote of the other stockholders in a meeting. 

 Generally, a “business combination” includes any merger,
consolidation, asset or stock sale, or certain other transactions resulting in a financial benefit to the interested stockholder. Subject to certain exceptions, an “interested stockholder” is a person who, together with that person’s
affiliates and associates, owns, or within the previous three years owned, 15% or more of our voting stock. 
 Under certain circumstances,
these anti-takeover provisions will make it more difficult for a person who would be an “interested stockholder” to effect various business combinations with us for a three-year period. This may encourage companies interested in acquiring
us to negotiate in advance with our Board because the stockholder approval requirement would be avoided if our Board approves the acquisition that results in the stockholder becoming an interested stockholder. 

This may also have the effect of preventing changes in our Board and may make it more difficult to accomplish transactions that stockholders
may otherwise deem to be in their best interests. 
 Written Consent by Stockholders 

Under the Charter and bylaws, subject to the rights of any series of Preferred Stock then outstanding, any action required or permitted to be
taken by our stockholders (a) may be effected by a consent in writing by such stockholders until the Sunset Date and (b) following the Sunset Date, must be effected at a duly called annual or special meeting of our stockholders and may not
be effected by any consent in writing by such stockholders. 
 Special Meeting of Stockholders 

Under the Charter and bylaws, special meetings of our stockholders may be called only by our Board, the chairperson of our Board or our chief
executive officer, or, until the Sunset Date, our secretary upon a written request of any holder of record of at least 25% of the voting power of the issued and outstanding shares of our capital stock, and may not be called by any other person or
persons. Only such business shall be considered at a special meeting of stockholders as shall have been stated in the notice for such meeting. 

 Advance Notice Requirements for Stockholder Proposals and Director Nominations 

Under the bylaws, advance notice of stockholder nominations for the election of directors and of business to be brought by stockholders before
any meeting of our stockholders shall be given in the manner and to the extent provided in the bylaws. 
 Transfer Agent and Warrant Agent 

The transfer agent for our Common Stock and the warrant agent for our warrants is Continental Stock Transfer & Trust Company. 

Listing of Class A Common Stock and Warrants 

Our Class A Common Stock and our warrants are listed on the NYSE under the symbols “STRY” and “STRY WS,” respectively.EX-10.1

  Exhibit 10.1

  COOPERATION AGREEMENT

  This Cooperation Agreement, dated as of April 20, 2022 (this “Agreement”), is by and between Tice Brown and Galaxy Gaming, Inc., a Nevada corporation (the “Company”).

  WHEREAS, on March 16, 2022, Mr. Brown submitted a letter to the Company (the “Notice”) proposing (a) Mr. Brown’s nomination to the Board of Directors (the “Board”) of the Company (the “Director Nomination”) and (b) a proposal requesting that the Board declassify the Board by electing each director on an annual basis (the “Stockholder Proposal”), for consideration at the 2022 annual meeting of stockholders of the Company (the “2022 Annual Meeting”); and

  WHEREAS, the parties have determined that it is in their respective best interests to come to an agreement with respect to the withdrawal of the Director Nomination and the Stockholder Proposal from consideration at the 2022 Annual Meeting, and the composition of the Board and certain other matters, as provided in this Agreement.

  NOW, THEREFORE, in consideration of and reliance upon the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

  1.Board Representation and Board Matters. 

  The Company and Mr. Brown agree as follows:

  (i)The Company agrees that, immediately upon the execution of the Agreement, the Company will announce and accept the irrevocable retirement of a current member of the Board, as determined by the Board, with such retirement effective on or before July 31, 2022 (the “Retirement”). 

  (ii)Promptly following the execution of the Agreement, the Company shall form a hiring committee consisting of two current members of the Board and one independent stockholder who has owned shares of the Company’s common stock for more than two years (the “Independent Stockholder,” and, together with the two current members of the Board, the “Hiring Committee”). The Independent Stockholder’s service on the Hiring Committee is conditioned upon the execution of a confidential agreement in form and substance reasonably acceptable to the Company (an “NDA”). 

  (iii)The Hiring Committee shall use good faith and commercially reasonable efforts to recommend, by unanimous approval, to the Board a qualified candidate to fill the vacancy created by the Retirement (such director upon appointment to the Board, the “Independent Director”). Each member of the Hiring Committee shall identify qualified candidates for consideration by the Hiring Committee.  The Hiring Committee shall engage in good faith discussions to identify and unanimously agree on a qualified candidate from such list for recommended appointment to the Board, and, following such recommendation, the Board shall promptly cause such candidate, subject to the satisfaction of the qualifications and requirements set forth in this Section 1(iii), to be appointed to the Board for a term expiring at the 2024 Annual Meeting of Stockholders (the “2024 Annual Meeting”).   The minimum qualifications of a qualified candidate shall be an individual who meets the applicable independence standards and criteria for service on the Board and:

  a)is willing and able to serve at least a three-year term on the Board; 

  b)commits to cooperate with the Company to undergo any suitability review or licensing required for service as a member of the Board, and meet all applicable gaming suitability requirements (including regulatory requirements and licensure); and 

  c)has a background and extensive experience in a field relevant to the Company (including but not limited to, long term shareholder orientation, public company operations, executive management, gaming and/or intellectual property licensing);

   

  

   

  In no event shall a qualified candidate be (a) Mr. Brown, (b) a member of the Hiring Committee, or (b) an Affiliate (as defined below), family member or representative of a member of the Hiring Committee, the Company or Mr. Brown.

  (iv)The Company shall use commercially reasonable efforts to cause the election of the Independent Director (or any Replacement, as applicable) at the 2023 Annual Meeting for a term expiring at the 2024 Annual Meeting (including by (x) recommending that the Company’s stockholders vote in favor of the election of the Independent Director (or any Replacement, as applicable), (y) including the Independent Director (or any Replacement, as applicable) in the Company’s proxy statement and proxy card for the 2023 Annual Meeting, and (z) otherwise supporting the Independent Director (or any Replacement, as applicable) for election in a manner no less rigorous and favorable than the manner in which the Company supports its other nominees in the aggregate). 

  (v)Immediately following the appointment of the Independent Director (or any Replacement, as applicable) to the Board, the Board shall, in accordance with the discretion of its Chairman and with its customary governance processes, in the Board’s sole and absolute discretion, determine any appropriate Board committee assignments for the Independent Director (or any Replacement, as applicable), taking into account the composition of the Board, the time commitments made by the other members of the Board, committee assignments and the needs and independence and eligibility requirements of the committees and, subject to the foregoing, appoint the Independent Director (or any Replacement, as applicable) if he meets such requirements to such committees of the Board. The Company further agrees that, as a member of the Board, the Independent Director (or any Replacement, as applicable) shall be subject to the same rules, policies and restrictions as any other director, and shall have the right to the same rights as any other director with respect to (i) the right of members of the Board to indemnification, (ii) the right of members of the Board to liability insurance, and (iii) compensation for service on the Board.

  (vi)Mr. Brown agrees not to conduct a proxy contest or engage in any solicitation of proxies regarding any matter, including the election of directors, with respect to the 2022 Annual Meeting. 

  (vii)The parties agree to use commercially reasonable efforts to negotiate in good faith and execute an NDA between the Company and Mr. Brown regarding the information Mr. Brown would receive in his capacity as a Board observer as contemplated by this Section 1(vii). Upon the execution of the NDA, Mr. Brown will have the right to attend all meetings of the Board solely in a non-voting, observer capacity (in such capacity, the “Observer”). The Company shall (i) give the Observer notice of all meetings of the Board at the same time as furnished to the Board Members, and (ii) permit the Observer to participate by telephone in all meetings of the Board. Notwithstanding anything to the contrary in this Section 1(vii), Mr. Brown shall not receive any written materials distributed to the Board.  The Company reserves the right to exclude the Observer from any meeting or portion thereof if attendance at such meeting could adversely affect the attorney-client privilege between the Company and its counsel or result in the disclosure of trade secrets or a conflict of interests.  The Board observer rights set forth in this Section 1(vii) shall expire upon the earliest to occur of (a) the appointment of the Independent Director to the Board, (b) the expiration of the Standstill Period or (c) the termination of this Agreement. 

  (viii)If, at any time following the appointment of the Independent Director (or any Replacement, as applicable) to the Board and prior to the 2024 Annual Meeting, the Independent Director is unable to serve as a member of the Board for any reason or otherwise continue service on the Board (other than on account of failure to be elected at the 2024 Annual Meeting), the Hiring Committee shall use good faith and commercially reasonable efforts to recommend, by unanimous approval, to the Board a qualified candidate to replace the Independent Director (or any Replacement, as applicable) as a replacement qualified director candidate (each a “Replacement”) to serve, and the Board shall appoint such Replacement to serve on the Board, for a term expiring at the 2024 Annual Meeting, in each case, subject to the terms and requirements set forth in Section 1(iii) above (including the satisfaction of the qualifications of such candidate set forth therein). 

   

  2.	Withdrawal of Proxy Contest; Additional Agreements.

  (i)Promptly, and in any event no later than one day following the date of this Agreement, Mr. Brown hereby agrees to (1) irrevocably withdraw the Director Nomination and the Stockholder Proposal with respect to the 2022 Annual Meeting, (2) immediately cease all solicitation efforts in connection with the 2022 Annual Meeting and (3) cause, in the case of all Voting Securities (as that term is defined below) owned of record by Mr. 

  2

   

  

   

  Brown, and instruct and cause the record owner, in the case of all shares of Voting Securities beneficially owned but not owned of record, directly or indirectly, by Mr. Brown as of the record date of the 2022 Annual Meeting or as to which the Mr. Brown otherwise has the power to vote or direct the vote, in each case that are entitled to vote at the 2022 Annual Meeting, to be present for quorum purposes and to be voted, at the 2022 Annual Meeting or at any adjournment or postponement thereof, (A) for each of the nominees for director nominated by the Board for election at the 2022 Annual Meeting, (B) for the appointment of Moss Adams, LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2022 and (C) for approval, on an advisory basis, of the compensation of the Company’s named executive officers.  Except as provided in the foregoing sentence, Mr. Brown shall not be restricted from voting or abstaining from any other proposals at the 2022 Annual Meeting.

  (ii)As used in this Agreement, the term “Voting Securities” shall mean the shares of the Company’s common stock that such person has the right to vote or has the right to direct the vote. For purposes of this Agreement, (x) the term “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934 (the “Exchange Act”), and (y) the term “Associate” shall mean (A) any trust or other estate in which such person has a substantial beneficial interest or as to which such person serves as trustee or in a similar fiduciary capacity, and (B) any relative or spouse of such person, or any relative of such spouse, who has the same home as such person or who is a director or officer of such person or of any of its parents or subsidiaries.

  3.	Tice Brown Restrictions.

  Except as otherwise provided in this Agreement, until the date that is two years after the 2022 Annual Meeting (the “Standstill Period”), Mr. Brown agrees that neither he nor any of his Affiliates, Associates and representatives, shall directly or indirectly, effect, seek or announce any intention to effect or cause or participate in, alone or in concert with others, in any manner: 

  (i)any voluntary acquisition of the beneficial ownership of any additional Voting Securities which results in an aggregate beneficial ownership in excess of 9.9%, or any material portion of the Company’s indebtedness or assets;

  (ii)any sale of any Voting Securities to a third party that would knowingly result in such third party having any beneficial ownership interest of 5% or more of the Voting Securities;

  (iii)any tender or exchange offer, merger or other business combination involving the Company initiated by Mr. Brown;

  (iv)any initiation, encouragement or participation in any (a) nomination or recommendation of a person for election to the Board at, or submission of any stockholder proposal for consideration at, or other business brought before, any stockholder meeting of the Company; (b) solicitation of proxies or consents to vote any Voting Securities in respect of any stockholder proposal for consideration at, or other business brought before, any stockholder meeting of the Company, including any election contest or removal contest with respect to the Company’s directors; (c) request to call a special meeting of the stockholders of the Company; or (d) “withhold” or similar campaign with respect to any stockholder meeting;

  (v)action, whether alone or in concert with others, to seek or obtain representation on or to control or influence the management, the Board or the policies of the Company or to influence any unaffiliated person with respect to the voting of any Voting Securities of the Company; 

  (vi)formation or joining of any group with respect to the Voting Securities of the Company (including any formation of any voting trust with respect to any Voting Securities); 

  (vii)efforts, whether publicly, alone or in concert with others, to amend any provision of the Company’s articles of incorporation or bylaws;

  (viii)demand to inspect the Company’s books and records; or

  3

   

  

   

  (ix)action challenging the validity or enforceability of this Section 3 or this Agreement, or publicly make or in any way advance publicly any request or proposal that the Company or the Board amend, modify or waive any provision of this Agreement.

   

  4.Termination Triggers. Notwithstanding any terms of this Agreement to the contrary, (i) Mr. Brown may terminate this Agreement upon written notice to the Company following the date of the first to occur of the following: (A) the date on which the Company materially breaches its obligations under this Agreement,  or (B) the Company announces, proposes or otherwise recommends a transaction that would result in (a) the consummation of the acquisition by any person (as such term is defined in Section 13(d) or 14(d) of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent or more of the combined voting power of the then outstanding Voting Securities of the Company; (b) the approval by the Company’s stockholders of: (1) a merger or consolidation of the Company if the stockholders of the Company immediately before such merger or consolidation do not, as a result of such merger or consolidation, own, directly or indirectly, more than fifty percent of the combined voting power of the then outstanding voting securities of the entity resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the Voting Securities of the Company outstanding immediately before such merger or consolidation; or (2) a complete liquidation or dissolution or sale or other disposition of two-thirds or more of the consolidated assets of the Company; or (c) dissenter’s rights under Nevada Revised Statutes Section 92A.380, and (ii) the Company may terminate this Agreement upon written notice to Mr. Brown following the date on which Mr. Brown materially breaches his obligations under this Agreement.

   

  5.Public Announcements. The Company shall, within four business days of the execution of this Agreement, (i) announce the execution of this Agreement and the material terms thereof by means of a press release, and (ii) file with the SEC a Current Report on Form 8-K (the “Form 8-K”) reporting the execution of this Agreement and corresponding press release as an exhibit thereto.  The Company acknowledges that Mr. Brown intends to file with the SEC an amendment to his Schedule 13D in compliance with Section 13 of the Exchange Act reporting his execution of this Agreement, disclosing applicable items to conform to their obligations hereunder and appending this Agreement as an exhibit thereto.

   

  6.Mutual Non-Disparagement. For a period of two years after the 2022 Annual Meeting (the “Non-Disparagement Period”), the parties, shall not, and shall cause their respective directors, officers, partners, members, employees, agents (in each case, acting in such capacity) and Affiliates not to make, or cause to be made, by press release or other public statement to the press or media, any statement or announcement that constitutes an ad hominem attack on, or otherwise disparages or criticizes, the other party, its business or any of its current or former directors, officers or employees. The restrictions in this Section 6 shall not apply (i) in any compelled testimony or production of information, whether by legal process, subpoena or as part of a response to a request for information from any governmental or regulatory authority with jurisdiction over the party from whom information is sought, in each case, to the extent required, or (ii) to any disclosure required by applicable law, rules or regulations (provided, in each case, that the parties use reasonable best efforts to limit such disclosure to the extent required thereby).

   

  7.Representations and Warranties of All Parties. Each of the parties represents and warrants to the other party that: (a) such party has all requisite company power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (b) this Agreement has been duly and validly authorized, executed and delivered by the party and is a valid and binding obligation of such party, enforceable against such party in accordance with its terms; and (c) this Agreement will not result in a violation of any terms or conditions of any agreements to which such person is a party or by which such party may otherwise be bound or of any law, rule, license, regulation, judgment, order or decree governing or affecting such party.

   

  8.Representations and Warranties of Mr. Brown. Mr. Brown represents and warrants that, as of the date of this Agreement, (a) Mr. Brown owns an aggregate of 1,409,063 outstanding shares of Voting Securities, (b) except as set forth in the preceding clause (a) or as otherwise disclosed to the Company, Mr. Brown does not have any other beneficial ownership of, or economic exposure to, any Voting Securities, nor does he currently have or have 

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  any right to acquire any interest in any other securities of the Company (or any rights, options or other securities convertible into or exercisable or exchangeable (whether or not convertible, exercisable or exchangeable immediately or only after the passage of time or the occurrence of a specified event) for such securities or any obligations measured by the price or value of any securities of the Company or any of its controlled Affiliates, including any swaps or other derivative arrangements designed to produce economic benefits and risks that correspond to the ownership of Voting Securities, whether or not any of the foregoing would give rise to beneficial ownership (as determined under Rule 13d-3 promulgated under the Exchange Act), and whether or not to be settled by delivery of shares of the Company’s common stock, payment of cash or by other consideration, and without regard to any short position under any such contract or arrangement.

   

  9.Representations and Warranties and Covenants of the Company. The Company represents and warrants, as of the date of this Agreement, except with respect to Mr. Brown and the current members of the Board, none of the Company, the Board nor their respective advisors are engaged in discussions to grant board representation or board designation rights to any other stockholder of the Company. As of the date of this Agreement, the Company has not received a proposal from a Company stockholder or group of stockholders with respect to the 2022 Annual Meeting pursuant to the Company’s advance notice provisions contained in its Second Amended and Restated Bylaws, nor any proposals pursuant to Rule 14a-8 of the Exchange Act.

  10.Remedies; Venue; Governing Law. The parties hereto recognize and agree that if for any reason any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached, immediate and irreparable harm or injury would be caused for which money damages would not be an adequate remedy. Accordingly, each party agrees that in addition to other remedies the other party shall be entitled to at law or equity, the other party shall be entitled to an injunction or injunctions to prevent breaches of, this Agreement and to enforce specifically the terms and provisions of this Agreement exclusively in the federal or state courts located in Clark County, Nevada. If any action shall be brought in equity to enforce the provisions of this Agreement, no party shall allege, and each party hereby waives the defense, that there is an adequate remedy at law. Furthermore, each of the parties hereto (i) consents to submit to the personal jurisdiction of the federal or state courts located in Clark County, Nevada if any dispute arises out of this Agreement or the transactions contemplated by this Agreement, (ii) agrees that they shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (iii) agrees that they shall not bring any action relating to this Agreement or the transactions contemplated by this Agreement in any court other than the federal or state courts of the State of Nevada, and each of the parties irrevocably waives the right to trial by jury, (iv) agrees to waive any bonding requirement under any applicable law, in the case any other party seeks to enforce the terms by way of equitable relief, and (v) irrevocably consents to service of process by a reputable overnight mail delivery service, signature requested, to the address of such party’s principal place of business or as otherwise provided by applicable law. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF NEVADA APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE.

   

  11.No Waiver. Any waiver by any party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

  12.Entire Agreement. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and may be amended only by an agreement in writing executed by the parties hereto.

  13.Notices. All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, if (a) given by email, when such email is transmitted to the email address set forth below (provided no “bounce back” or similar message of non-delivery is received with respect thereto; provided further that notice given by email shall not be effective until either (i) the receiving party’s receipt of a duplicate copy of such email notice by one of the other 

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  methods described in this Section 13 or (ii) the receiving party delivers a written confirmation of receipt of such notice by email or any other method described in this Section 13) (b) delivered by hand to the address specified in this Section 13, when actually received by hand providing proof of delivery, or (c) on the next Business Day if transmitted by national overnight courier (with confirmation of delivery) to the address specified in this Section 13:

  If to the Company:

   

  Galaxy Gaming, Inc.

  6480 Cameron Street, Suite 305

  Las Vegas, Nevada 89118 

  Attention: Todd Cravens

  Email: tcravens@GalaxyGaming.com 

  With copies to (which shall not constitute notice):

   

  Latham & Watkins LLP

  650 Town Center Drive, 20th Floor

  Costa Mesa, CA 92626 

  Attention: Michael A. Treska

  Email: Michael.Treska@lw.com 

   

  If to Mr. Brown:

  Mr. Brown

  PO Box 20907

  NY, NY 10009

  Email: tice@snyderbrown.com 

  With copies to (which shall not constitute notice):

  Frost Brown Todd LLC 
400 West Market Street, 32nd Floor
Louisville, KY 40202

  Attention:  James A. Giesel

  Email: jgiesel@fbtlaw.com 
 

  15. 	Severability. If at any time subsequent to the date of this Agreement, any provision of this Agreement shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or enforceability of any other provision of this Agreement.

  16.	Counterparts. This Agreement may be executed (including by PDF) in two or more counterparts which together shall constitute a single agreement.

  17.	Successors and Assigns. This Agreement shall not be assignable by any of the parties to this Agreement. This Agreement, however, shall be binding on successors of the parties hereto.

  18.	No Third Party Beneficiaries. This Agreement is solely for the benefit of the parties hereto and is not enforceable by any other persons.

  19.	Fees and Expenses. The Company shall, within five business days of Mr. Brown’s presentation of any written request to the Company, reimburse Mr. Brown for his reasonable and documented with specificity out-of-pocket fees and expenses (including legal expenses) incurred in connection with (i) his withdrawn proxy contest for the 2022 Annual Meeting, including but not limited to the Director Nomination, the Stockholder Proposal, Schedule 13D filings and any proxy solicitation filings and (ii) the negotiation and execution of this Agreement. The parties 

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  agree and understand that the maximum total amount reimbursable by the Company for the fees and expenses described herein shall not exceed $100,000 in the aggregate, unless otherwise agreed to by the parties in writing and executed as an amendment to this Agreement.

  20.	Mr. Brown’s Gaming Licensing.  

  	(i)	Mr. Brown shall comply in timely manner will all gaming regulatory licensing requests of any gaming regulator in a jurisdiction with the Company is currently doing business or at any time files for licensing approval in the future (individually or collectively a “Gaming Agency”). Mr. Brown acknowledges that he shall retain and maintain independent gaming counsel to assist him with his gaming licensing obligations.  Mr. Brown’s failure to meet any gaming regulatory obligation or any delay that causes the Company to reasonably and in good faith believe that any of its licenses or ability to be licensed by any Gaming Agency to be in jeopardy (a “Gaming Breach”), shall constitute a material breach of this Agreement; provided, that Mr. Brown fails to cure such Gaming Breach within two calendar days after written notice thereof by the Company.  Mr. Brown acknowledges and agrees that any Gaming Agency may, in its discretion, require Mr. Brown to file and seek approval for his gaming application.  Mr. Brown shall bear all expenses and fees related to his gaming licensing obligations.  Time is of the essence with regard to Mr. Brown’s obligations to timely file and obtain any and all gaming licensing that is required by statute, regulation, requested by a gaming regulatory body or the Company and meet all requirements of any Gaming Agency.

  	(ii)	The Company agrees to provide to Mr. Brown’s gaming counsel (as identified by Mr. Brown in writing) with notices that the Company receives from Gaming Agencies or regulators that relate to Mr. Brown’s obligations to file and seek approval of gaming licenses. The Company will notify Mr. Brown of any new jurisdictions in which it seeks licensing after the date hereof, to the extent it reasonably and in good faith believes that Mr. Brown must also be licensed.  If, in an effort directed by Mr. Brown’s gaming counsel to alleviate his gaming licensing obligations, Mr. Brown obtains consent from a Gaming Agency to assign voting rights to all or a portion of his Voting Securities, Mr. Brown shall first offer such voting rights to the Company, in which case the Company will have the right (but not the obligation) to accept such voting rights.  If the Company agrees to accept such voting rights, the Company will reasonably cooperate in such effort at no out-of-pocket cost to the Company. The Company shall have no obligations to Mr. Brown as it relates to Mr. Brown’s gaming licensing beyond those set forth in this Section 20(ii).

   

  21.	Interpretation and Construction. Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed the same with the advice of said independent counsel. Each party and its counsel cooperated and participated in the drafting and preparation of this Agreement and the documents referred to herein, and any and all drafts relating thereto exchanged among the parties shall be deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties hereto, and any controversy over interpretations of this Agreement shall be decided without regards to events of drafting or preparation. The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. The term “including” shall be deemed to mean “including without limitation” in all instances. In all instances, the term “or” shall not be deemed to be exclusive.

   

  22.	Attorney’s Fees.  If any lawsuit or other legal action proceeding is instituted in connection with any breach or default, or alleged breach or default, of this Agreement, the prevailing party shall be entitled to recover from the losing or defaulting party all reasonable fees, costs and expenses (including reasonable fees and expenses of attorneys and witnesses) incurred in connection with the prosecution or defense of such proceeding, whether or not the proceeding is prosecuted to a final judgment or determination.

   

  23. 	Time is of the Essence. The parties hereby agree that time is of the essence with respect to performance of each of the parties’ obligations under this Agreement.

  [Signature Page Follows]

   

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  	The Parties hereto have signed this Agreement as of the date indicated above.

   

   

   

   

   

  		
	 
	GALAXY GAMING, INC.

	By:
	/s/ Todd P. Cravens

	Name:
	Todd P. Cravens

	Title:
	President and Chief Executive Officer

	 
	 

	 
	TICE P. BROWN

	By:
	/s/ Tice P. Brown

	Name:
	Tice P. Brown

   

   

   

   

   

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