Document:

Exhibit 10.2

 

SEPARATION AND CONSULTING AGREEMENT

 

This Separation and Consulting Agreement (the “Agreement”) is entered
into as of June 30, 2004 by and between Alliance Gaming Corporation, a
Nevada Corporation (the “Company”) and Robert L. Miodunski (the “Executive”).

 

WHEREAS,
the Executive is a member of the Company’s Board of Directors and employed by
the Company as its President and Chief Executive Officer pursuant to the terms
of an Executive Employment Agreement, dated and effective as of April 24,
2001 (the “Employment Agreement”);

 

WHEREAS,
the Company and the Executive have agreed that the Executive will resign from
his position as a member of the Company’s Board of Directors and as President
and Chief Executive Officer of the Company effective as of October 1,
2004, or such other date as provided herein;

 

WHEREAS,
the Company and the Executive wish to fully settle all matters between them
arising out of the Employment Agreement, Executive’s employment, and his
resignation from his position as a member of the Board of Directors and
President and Chief Executive Officer of the Company;

 

WHEREAS,
this Agreement shall supercede and replace the Employment Agreement in its
entirety; and

 

WHEREAS,
as a result of the experience and personalized knowledge gained by the
Executive during his employment by the Company, the Company desires to retain
the services of the Executive as an independent consultant following his
resignation.

 

NOW THEREFORE,
in consideration of the mutual promises contained herein, the parties hereto,
intending to be legally bound, agree as follows:

 

1.                                       Agreement to Resign; Salary; Bonuses and Benefits.

 

1.1                                 The
Executive hereby resigns, effective October 1, 2004, or such other date as
provided below (the “Resignation Date”), from his position as the Company’s
President and Chief Executive Officer, as a member of the Company’s Board of
Directors and any other positions that he may hold in the Company or any of its
subsidiaries, except as otherwise specifically provided for herein.  Notwithstanding the foregoing, the Company
may, in its sole discretion, modify the Resignation Date to any date from the
date hereof until December 31, 2004. 
Until the Resignation Date, the Executive will continue to serve as a
member of the Company’s Board of Directors and devote his full time and best
efforts to performing his duties as the Company’s President and Chief Executive
Officer.  Notwithstanding the
Resignation Date, the Executive will continue to be an employee of the Company,
subject to the terms of this Agreement until December 31, 2004, at which
time he will cease to be an employee of the Company.

 

 

1.2                                 At
such time as a new Chief Executive Officer has been selected by the Company,
Executive will cooperate and work with the new Chief Executive Officer to
provide a smooth transition (the “Transition Plan”).

 

1.3                                 Until
December 31, 2004, the Company will continue to pay the Executive his
regular base salary of $500,000 per year in installments on the regularly
recurring paydays in accordance with the Company’s practice.  Executive shall be entitled to an annual
cash bonus based upon performance of the Company through the fiscal year ending
June 30, 2005 pursuant to the Bonus Matrix attached as Exhibit A
hereto for fiscal 2004 and a substantially similar Bonus Matrix for fiscal 2005
payable in August 2004 with respect to fiscal 2004, and payable in
August 2005 with respect to fiscal 2005, in such manner as the Company
normally pays such bonuses (less required withholding for 2004 and not subject
to withholding for 2005).  The Bonus
Matrix for 2005 shall be a matrix substantially similar to Exhibit A
with the “Budget/Guidance” EPS target to be the Board of Directors approved EPS
budget figure for Fiscal 2005 expanded and contracted by 20% in the same number
of increments as in Exhibit A. 
The “% of Target EPS” and “% of Base Salary” columns in Exhibit A
will be the same for the Bonus Matrix for Fiscal 2005, and the Base Salary to
be used in the calculation shall be $500,000.

 

1.4                                 Until
December 31, 2004, the Executive may continue to utilize any vacation time
he has accrued under the Company’s vacation policy.  As soon as practicable following December 31, 2004, the
Company shall pay the Executive in a single lump sum payment, less applicable
withholding, for any accrued, but unused vacation time in accordance with the
terms of the Company’s vacation policy. 
The Executive shall also be entitled to reasonable periods of sick leave
with compensation and all paid holidays given by the Company to its senior executive
officers.

 

1.5                                 Until
December 31, 2004, the Executive may continue to participate in the
Company’s various retirement, life insurance, medical and hospitalization,
disability, welfare and fringe benefit plans, programs, policies and
arrangements (“Executive Benefit Plans”) for which the Executive is otherwise
eligible, pursuant to the terms of such plans. 
Following December 31, 2004, the Executive generally will cease to
participate in the Executive Benefit Plans, except to the extent provided in the
Executive Benefit Plan, herein, or by applicable law.  Nothing in this Agreement or the Consulting Agreement (as defined
in Section 6.1) shall be interpreted to expand any right the Executive may
have under the Executive Benefit Plans unless otherwise expressly provided
herein.

 

1.6                                 Following
December 31, 2004, the Executive will be eligible for continued medical
and dental coverage for himself and his dependants in accordance with the terms
of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”).  The Executive shall be required to pay
one-hundred percent (100%) of the COBRA premiums for such coverage.

 

1.7                                 As
recognition of the contributions of Executive in the successful divestiture of
United Coin Machine Co., a Nevada corporation and an indirect wholly owned
subsidiary of the Company, Executive shall receive a special bonus of
$1,000,000 

 

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upon the consummation of the transaction (the “United Coin
Bonus”).  The United Coin Bonus shall be
payable as follows:  (a) $500,000 within
30 days of the consummation of the transaction and (b) $500,000 payable in
twenty four (24) equal monthly installments of $20,833.33 on the first business
day of each month commencing on January 1, 2005.

 

2.                                       Stock Options.  The Company agrees that any issued and
outstanding stock options granted to the Executive under the Company’s Stock
Option Plans (the “Options”) shall continue to vest and be exercisable as if
the Executive were still actively employed by the Company.  In addition, the Company agrees that upon
any “Change of Control” (as defined below) of the Company, all of the Options
shall immediately vest and become exercisable. 
“Change of Control” shall be deemed to have
occurred upon (i) the consummation of a tender for or purchase of fifty
percent (50%) or more of the Company’s Common Stock by a third party,
(ii) a merger, consolidation or recapitalization of the Company such that
the stockholders of the Company immediately prior to the consummation of such
transaction possess less than fifty percent (50%) of the voting securities
of the surviving entity immediately after the transaction (determined on a
fully-diluted basis assuming the conversion of all convertible securities of
such person), or (iii) the sale, lease or other disposition of all or
substantially all of the assets of the Company, in any of cases (i), (ii) or
(iii) in a single transaction or series of transactions.  Exhibit B details the
outstanding options held by Executive at June 30, 2004.

 

3.                                       Perquisites.  The Company agrees to provide to Executive
such computer network access as is required by the Executive to fulfill his
obligations under this Agreement through the Term (as defined in
Section 7.7 below); provided that, the Company expressly reserves the
right to remove or block any and all secret, confidential, proprietary or other
sensitive information, software, program, or application relating to the
Company that the Company determines, in its sole and absolute discretion, is
necessary or advisable.  The Company
shall continue to pay for Executive’s cell phone usage related to the
Consulting Agreement throughout the Term.

 

4.                                       No Other Severance.  Except as provided in this Agreement, the
Executive shall not be entitled to receive any other payment, benefit or other
form of compensation as a result of his employment or his resignation
therefrom.  Specifically, the Executive
shall not be eligible for severance benefits under any plan, program or arrangement
sponsored or funded by the Company, and he hereby waives any right to any such
benefits.

 

5.                                       Return of Company Property.  Subject to Section 3 above, no later
than December 31, 2004, the Executive agrees to return any Company
property in the Executive’s possession or control, including all equipment, the
original and all copies of books, notebooks, documents, reports, files,
memoranda, records, computer software and programs, correspondence, mailing
lists, client or contact lists, calendars, card files, rolodexes, cardkey
passes, door, file and computer keys, computer access codes or disks, company
charge cards, instructional employee manuals, and other Company property which
the Executive received or had control over during his employment with the
Company, except to the extent the Company and the Executive mutually agree such
item or items may be required by the Executive in connection with the
performance of services under the Consulting Agreement.

 

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6.                                       Consulting Agreement.

 

6.1                                 Agreement for Services.  For four years from January 1, 2005
until December 31, 2008 (each such year shall be referred to hereinafter
as a “Consulting Year”), the Executive agrees to make himself available at the
Company’s reasonable request (made by either members of the Board of Directors
or the Chief Executive Officer) to provide services that the Company may
reasonably request in accordance with the terms set forth below (the
“Consulting Agreement”).  Such services
may include, but not be limited to, implementing the Transition Plan, attending
and participating in meetings with the executive officers of the Company, and
attending and participating in meetings of the Board of Directors of the
Company and any committees thereof (including any meetings of the Office of the
Chairman).  Such services shall be
performed principally in Las Vegas, Nevada, but also at such locations as the
Company may reasonably request, and the Executive agrees to use his best skill,
efforts and judgment in performing such services.  The Company and the Executive agree and
understand that the services performed by the Executive under the Consulting
Agreement will not require the Executive to engage in full-time efforts or
work, but instead shall be periodic and limited in nature and that the
Executive shall be entitled to accept other employment and pursue other
activities and interests, so long as such employment, activities and interests
do not otherwise breach the Executives covenants and obligations under
Section 8 of this Agreement.  The
Company shall not terminate the Agreement, or any part of it, for any failure
or inability by the Company to utilize or request the services of the Executive
under the Consulting Agreement.  The
Company agrees to pay the Executive an “Annual Consulting Fee” as set forth
below.  The Annual Consulting Fee shall
be payable in twelve (12) equal monthly installments, in arrears.  The Company agrees to reimburse the
Executive for all reasonable travel and other reasonable and necessary
out-of-pocket business related expenses incurred by the Executive at the
request of the Company in connection with the performance of services under the
Consulting Agreement; provided that the Executive shall be required to submit
reasonable documentation of such expenses to the Company prior to receiving
reimbursement.  The Annual Consulting
Fee for each of the Consulting Years following the Executive’s Resignation Date
shall be as follows:

 

	
  Consulting Year

  	
   

  	
  Annual Consulting Fee

  	
   

  
	
  2005

  	
   

  	
  $

  	
  250,000

  	
   

  
	
  2006

  	
   

  	
  $

  	
  250,000

  	
   

  
	
  2007

  	
   

  	
  $

  	
  250,000

  	
   

  
	
  2008

  	
   

  	
  $

  	
  250,000

  	
   

  

 

6.2                                 Independent Contractor.  The Executive shall perform the services
requested by the Company under the Consulting Agreement as an independent
contractor and shall not be deemed an employee of the Company.  Accordingly, the Company will not withhold
federal or state income, social security, or other taxes from the consulting
fee paid under the terms of the Consulting Agreement, unless otherwise required
by law.

 

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7.                                       Termination.

 

7.1                                 Disability.  If the Executive, becomes disabled or incapacitated for six or
more consecutive months or for noncontinuous periods aggregating to twenty-six
weeks in any twelve-month period, the Company may terminate this Agreement on
thirty days’ notice, whereupon the obligations of the Company and the rights of
the Executive under this Agreement shall terminate, except that:

 

(a)                                  The
Company shall pay the Executive’s salary or Annual Consulting Fee, as
applicable, on a pro-rata basis through the date of termination, offset by any
benefits payable to the Executive under any disability insurance policy paid
for by the Company; and

 

(b)                                 One-half
of any unvested Options shall vest and become exercisable by the Executive for
two years after the date of termination.

 

7.2                                 Death. 
In the event of the Executive’s death, this Agreement shall terminate as
of the date of his death, in which case the obligations of the Company and the
rights of the Executive under this Agreement shall terminate except that:

 

(a)                                  The
Company shall continue to pay the Executive’s salary or Annual Consulting Fee,
as applicable, for six months after the date of death, offset by any benefits
payable to the Executive or the Executive’s estate under any life insurance
policy paid for by the Company; and

 

(b)                                 The
Company shall reimburse the Executive’s estate for all expenses incurred and
reimbursable under Section 6.1; and

 

(c)                                  One-half
of any unvested Options shall vest and become exercisable by the Executive’s
estate for two years after the date of the Executive’s death.

 

7.3                                 Termination by Company for Cause.

 

(a)                                  The
Company may terminate this Agreement for “Cause” (as defined below) at any time
immediately on notice to the Executive, in which case the Company’s obligations
and the Executive’s rights under this Agreement shall terminate.  For purposes of this provision, the term
“Cause” includes, but is not limited to:

 

(1)                                  The
Executive’s insubordination, fraud, disloyalty, dishonesty, willful misconduct,
or gross negligence in the performance of the Executive’s duties under this
Agreement, including willful failure to perform such duties as may properly be
assigned to the Executive under this Agreement.

 

(2)                                  The
Executive’s material breach of any provision of this Agreement.

 

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(3)                                  The
Executive’s failure to qualify (or having so qualified being thereafter
disqualified) under any suitability or licensing requirement of any
jurisdiction or regulatory authority to which the Executive may be subject by
reason of his position as an officer, director or employee of the Company or
its affiliates or subsidiaries.

 

(4)                                  The
Executive’s commission of a crime against the Company or violation of any law,
order, rule, or regulation pertaining to the Company’s business.

 

(5)                                  The
Executive’s inability (other than because of death or disability under
Sections 7.1 and 7.2) to perform the job functions and responsibilities
assigned in accordance with standards established, whether or not in writing,
from time to time by the Company, in its sole discretion.

 

(6)                                  The
Company obtains from any source information with respect to the Executive or
this Agreement that would, in the opinion of both the Company and its outside
counsel, jeopardize the gaming licenses, permits, or status of the Company or
any of its subsidiaries or affiliates with any gaming commission, board, or
similar regulatory or law enforcement authority.

 

(b)                                 Any
termination by the Company for Cause shall not be in limitation of any other
right or remedy the Company may have under this Agreement or otherwise.

 

7.4                                 Termination by Company without Cause.  The Company may terminate this Agreement at
any time without Cause, whereupon the Company’s obligations and the Executive’s
rights under this Agreement shall terminate, except that the Company shall
continue to pay (a) the Executive’s salary, Annual Consulting Fee, bonuses and
benefits otherwise due under this Agreement until December 31, 2008, and
(b) furnish the benefits described in Sections 1.5 and 1.6 for twelve months
after the date of termination of this Agreement.

 

7.5                                 Termination by Executive with Good Reason.  If the Executive resigns or terminates this
Agreement with “Good Reason” (as defined below), the Company’s obligations and
the Executive’s rights under this Agreement shall terminate, except that the
Company shall continue to pay (a) the Executive’s salary, Annual Consulting
Fee, bonuses otherwise due under this Agreement until December 31, 2008,
and (b) furnish the benefits described in Sections 1.5 and 1.6 for twelve
months after the date of termination. 
As used in this provision, “Good
Reason” is limited to the Company’s failure to cure either of the
following within thirty days after written notice of demand by the Executive
(i) the Company’s failure to pay any portion of the base salary, bonuses
or Annual Consulting Fees within thirty days after they are due, and
(ii) the assignment to the Executive of duties materially inconsistent
with the duties and position set forth in this Agreement.

 

7.6                                 Termination by Executive without Good Reason.  If the Executive resigns or terminates this
Agreement without Good Reason, this Agreement shall terminate as of the date of
his resignation, and the Company’s obligations and the Executive’s rights under
this Agreement shall terminate.

 

6

 

7.7                                 Term.  The
term of this Agreement shall commence on execution of this Agreement and shall
expire on December 31, 2008, unless terminated earlier pursuant to the
terms this Section 7 (the “Term”).

 

7.8                                 Survival of restrictive covenants.  Notwithstanding the expiration or
termination of this Agreement for any reason the Executive’s covenants in
Section 8 and his obligations under that section shall survive the
termination of this Agreement as set forth in that section.

 

8.                                       Restrictive Covenants.

 

8.1                                 Covenant not to compete.

 

(a)                                  During
the period commencing on the date hereof through December 31, 2006 (unless
this Agreement is terminated for any reason prior to December 31, 2004,
and in which case, through two years after such termination), the Executive
will not, directly or indirectly, whether as employee, owner, partner, agent,
employee, officer, consultant, advisor, stockholder (except as the beneficial owner
of not more than 3 percent of the outstanding shares of a corporation, any
of the capital stock of which is listed on any national or regional securities
exchange or quoted in the daily listing of over-the-counter market securities
and, in each case, in which the Executive does not undertake any management or
operational or advisory role) or in any other capacity, for the Executive’s own
account or for the benefit of any person or entity, establish, engage, or be
connected with any person or entity that is at the time engaged in the gaming
equipment business.

 

(b)                                 During
the period commencing on the date hereof through December 31, 2007 (unless
this Agreement is terminated for any reason prior to December 31, 2004,
and in which case, through three years after such termination), the Executive
will not, directly or indirectly, whether as employee, owner, partner, agent,
employee, officer, consultant, advisor, stockholder (except as the beneficial
owner of not more than 3 percent of the outstanding shares of a corporation,
any of the capital stock of which is listed on any national or regional
securities exchange or quoted in the daily listing of over-the-counter market
securities and, in each case, in which the Executive does not undertake any
management or operational or advisory role) or in any other capacity, for the
Executive’s own account or for the benefit of any person or entity, engage, or
be connected with International Game Technology, WMS Industries, Inc., Shuffle
Master, Inc., Aristocrat Leisure, Ltd., Gtech Holdings Corp, Sigma Games or
Multimedia Games, Inc. or any of their present and future affiliates,
subsidiaries, divisions, parent companies or successors.

 

(c)                                  The
Company and the Executive acknowledge and agree that the scope of the
noncompete provisions in this Section 8.1 are unlimited geographically and
that the scope and duration of the covenant are reasonable and fair; however,
if a court of competent jurisdiction determines that this covenant is overbroad
or unenforceable in any respect, the Company and the Executive acknowledge and
agree that the covenant shall be enforced to the greatest extent any such court
deems appropriate, and such court may modify this covenant to that extent.

 

7

 

8.2                                 Covenant not to solicit customers, employees, or
consultants.  Executive shall
not, directly or indirectly, during the period commencing on the date hereof
through December 31, 2008 (unless this Agreement is terminated for any
reason prior to December 31, 2004, and in which case, through three years
after such termination), (a) solicit the trade or patronage of any of the
customers or prospective customers of the Company (which, for purposes of this
paragraph, shall include any of the Company’s subsidiaries or affiliates) or of
anyone who has heretofore traded or dealt with the Company, regardless of the
location of such customers or prospective customers of the Company with respect
to any technologies, services, products, trade secrets, or other matters in which
the Company is active, or (b) aid or endeavor to solicit or induce any
other employee or consultant of the Company to leave the Company to accept
employment of any kind with any other person or entity.

 

8.3                                 Confidential Information and Non-Disparagement.

 

(a)                                  In
accordance with the Nevada Revised Statutes (“NRS”) Sections 600A.010 et seq.
(the so-called Uniform Trade Secrets Act), the Executive shall hold in a
fiduciary capacity for the benefit of the Company and its stockholders all
secret, confidential, and proprietary information, knowledge, and data relating
to the Company (and any of its subsidiaries or affiliates), obtained by the
Executive during or by reason of the Executive’s employment by the
Company.  During the Term and after the
expiration or termination of this Agreement for any reason, the Executive shall
not, without the prior written consent of the Company or except as may be
required by law, communicate or divulge any such information, knowledge, or
data to any person or entity other than the Company (or as applicable to it
subsidiaries or affiliates) and those designated by them that would result in
any misappropriation under and as defined in such Act, except that, while
employed by the Company, in furtherance of the business and for the benefit of
the Company, the Executive may provide confidential information as appropriate
to attorneys, accountants, financial institutions, and other persons or
entities engaged in business with the Company from time to time.

 

(b)                                 Each
of the Executive and the Company agrees that during the Term and for a period
of three years following any applicable termination date, neither shall,
publicly or privately, disparage or make any statements (written or oral) that
could impugn the integrity, acumen (business or otherwise), ethics or business
practices, of the other, except, in each case, to the extent (but solely to the
extent) (i) necessary in any judicial or arbitral action to enforce the
provisions of this Agreement or (ii) in connection with any judicial,
regulatory or administrative proceeding to the extent required by applicable
laws.  For purposes of this
Section 8.3(b), references to the Company include its officers, directors,
employees, consultants and shareholders (which are reasonably known as such to
the Executive) on the date hereof and hereafter.

 

8.4                                 Standstill.  During the Term and for twenty-four months after the expiration
or termination of this Agreement for any reason, the Executive shall not,
singly or with any other person, directly or indirectly:

 

(a)                                  Propose,
enter into, agree to enter into, or encourage any other person to propose,
enter into, or agree to enter into (i) any form of business combination,
acquisition, or other transaction relating to the Company or any of its
subsidiaries or affiliates, or (ii) any form 

 

8

 

of restructuring, recapitalization, or similar transaction with respect
to the Company or any of its subsidiaries or affiliates; or

 

(b)                                 Acquire,
or offer, propose, or agree to acquire by tender offer, purchase, or otherwise,
any voting securities of the Company or of its subsidiaries or affiliates,
except through the exercise of options or warrants beneficially owned as of the
date of this Agreement; or

 

(c)                                  Make
or in any way participate in any solicitation of proxies or written consents
with respect to voting securities of the Company or any of its affiliates or
subsidiaries (it being understood that the mere execution of a proxy or written
consent for his own securities beneficially owned shall not be treated as
constituting participation in such a solicitation); or

 

(d)                                 Become
a participant in any election contest with respect to the Company or a nominee
to or member of its board of directors or the board of directors of any
affiliate or subsidiary of the Company or any of its affiliates or
subsidiaries; or

 

(e)                                  Seek
to influence any person with respect to the voting or disposition of any voting
securities of the Company or any of its affiliates or subsidiaries; or

 

(f)                                    Demand
a copy of the list of stockholders or other books and records of the Company or
any of its subsidiaries or affiliates; or

 

(g)                                 Participate
in or encourage the formation of any partnership, syndicate, or other group
that owns or seeks or offers to acquire beneficial ownership of any voting
securities of the Company or any of its affiliates or subsidiaries or that
seeks to affect control of the Company or any of its affiliates or subsidiaries
or for the purpose of circumventing any provision of this Agreement; or

 

(h)                                 Propose
or support any director or slate of directors for nomination, appointment, or
election to the board of directors of the Company or any of its affiliates or
subsidiaries (it being understood that the mere execution of a proxy or written
shareholder consent for his own securities beneficially owned shall not be
treated as constituting such support); or

 

(i)                                     Otherwise
act to seek or to offer to control or influence, in any manner, the management,
the board of directors, or the policies of the Company or any of its affiliates
or subsidiaries; or

 

(j)                                     Seek
to amend or change this provision.

 

8.5                                 Injunctive Relief; Jurisdiction.  The Executive acknowledges that
the Company will suffer irreparable injury, not readily susceptible of valuation
in monetary damages, if the Executive breaches or threatens to breach any of
his obligations under this section. 
Accordingly, the Executive agrees that the Company will be entitled, at
the Company’s option, to injunctive relief without the necessity of posting a
bond against any breach or prospective breach by the Executive of the
Executive’s obligations under this section in any federal or state court
of competent jurisdiction sitting in the State of Nevada, in addition to
monetary damages and any other remedies available at law or in equity. The
Executive hereby submits to the jurisdiction of 

 

9

 

such courts for the purposes of any actions or proceedings instituted
by the Company to obtain such injunctive relief, and agrees that process may be
served on the Executive by registered mail, addressed to the last address of
the Executive known to the Company, or in any other manner authorized by law.

 

9.                                       Indemnification and Liability Insurance.  For the longer of the (a) Term and (b) six
years from the date hereof:

 

9.1                                 Indemnification.  The Company shall indemnify and hold the Executive harmless, to
the fullest extent legally permitted to Section 78.751 of the Nevada
Corporation Code (as amended and to effect from time to time) against any and
all expenses, liabilities, and losses (including without limitation, reasonable
attorneys’ fees and disbursements of counsel reasonably satisfactory to the
Company), incurred or suffered by him in connection with his service as a
director, officer, employee or consultant to the Company under this Agreement,
or the Employment Agreement in each case, except to the extent of the
Executive’s intentional misconduct, fraud, or knowing violation of law.

 

9.2                                 Insurance.  The Company shall maintain, for the benefit of the Executive, a
directors’ and officers’ liability insurance policy insuring the Executive’s
service as a director or officer or both of the Company (or any affiliate or
subsidiary of the Company) in accordance with its customary practices as in
effect from time to time.  The parties
acknowledge and agree that the policy may cover other officers and directors of
the Company in addition to the Executive.

 

10.                                 Ongoing Assistance.  Following the termination of this Agreement,
the Executive shall execute any and all documents and take any and all actions
which the Company may reasonably request to effect the transition of the
projects being worked on by the Executive at the time of termination and,
subject to mutual agreement regarding time and compensation, the Executive
agrees to make himself available with respect to, and to cooperate in
conjunction with, any litigation or investigation arising from events that
occurred during the Executive’s employment or provision of services under the
Consulting Agreement (whether such litigation or investigation is pending or
subsequently initiated) involving the Company or any of its affiliates or other
Released Parties (as defined below), including providing testimony and preparing
to provide testimony if so requested by the Company or any of its affiliates.

 

11.                                 Releases.  The Executive hereby releases the Company and its agents,
employees, representatives, officers, directors, shareholders, trustees,
attorneys, affiliates, subsidiaries, joint ventures, partnerships and any
employee benefit plan fiduciary, and the successors and assigns of each
(collectively referred to as the “Released Parties”) from any debts, duty,
claim, counterclaim, cost, expense, cause of action, liability or other
obligation, whether known or unknown, against the Released Parties, which the
Executive may have relating to the employment of the Executive or the
Executive’s resignation therefrom, including, without limitation, any dispute
arising prior to the date of execution of the Agreement under the Age
Discrimination in Employment Act of 1967; the Civil Rights Acts of 1964 and
1991; the Americans with Disabilities Act of 1990; and any other federal or
state statute or regulation under which the Executive may have a potential
claim; and any claim based on theories of contract, tort, or other equitable or
legal grounds; provided, however, that (a) this Release shall 

 

10

 

only relate to claims relating to Executive’s employment or the
termination thereof, and (b) this Section 11 shall not apply to any
claim the Executive may have for accrued vested benefits under any federal or
state workers’ compensation act, under the Executive Retirement Income Security
Act of 1974, or with respect to any obligation of the Company specifically
provided for in or pursuant to this Agreement. 
The Executive affirms that he will not cause or permit to be filed on
his behalf any charge, complaint or action before any court or administrative
agency alleging discrimination or any unfair employment practices, whether know
or unknown, against the Released Parties relating to the employment of the
Executive or the Executive’s resignation. 
The Executive agrees to provide to the Company on December 31, 2004
a substantially similar release to the release provided in this
Section 11.

 

12.                                 Taxes. 
The Executive agrees that the Executive will be fully and solely
responsible for any income or other tax liability imposed on Executive in his
capacity as an “independent contractor.”

 

13.                                 Acknowledgement.  The Executive acknowledges that he has
carefully read and fully understands all of the terms of this Agreement,
including without limitation the releases contained herein.  The Executive further acknowledges that the
consideration provided for herein represents amounts and benefits greater than
he otherwise would be entitled to receive absent this Agreement, and that the
Executive has entered into this Agreement willingly, freely, without threat, duress,
coercion, undue influence, or intimidation of any kind.  The Executive further acknowledges that he
has been advised to consult with an attorney of his choosing prior to executing
this Agreement.  In compliance with the
terms of the Age Discrimination in Employment Act and the Older Workers Benefit
Protection Act, Executive agrees to waive the twenty-one day period to review
this Agreement before signing it. 
Executive understands that he may revoke this Agreement within seven (7)
calendar days after it has been signed by him, and that it is not effective or
enforceable until that seven (7) day period has expired.  After the expiration of seven (7) days, this
Agreement will become effective and legally binding in all aspects.

 

14.                                 Fees. 
The Company shall pay the reasonable and documented fees and expenses of
counsel to Executive, up to a maximum amount of $10,000.

 

15.                                 Entire Agreement.  In executing this Agreement, the Executive
is not relying on any oral representation or statement by any employee, agent,
or representative of the Company regarding the subject matter, basis, or effect
of this Agreement.  Rather this
Agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof and supercedes all prior agreements between the
parties with respect to such matters, including, but not limited to, the
Employment Agreement, unless specifically provided otherwise herein.  This Agreement may be modified or amended
only by an instrument in writing signed by both parties hereto.

 

16.                                 Reformation.  If any provision of this Agreement is determined to be invalid,
illegal, or unenforceable, in whole or in part, neither the validity of the
remaining parts of such provision nor the validity of any other provision of
this Agreement shall in any way be affected thereby.  In lieu of such invalid, illegal, or unenforceable provision,
there shall be added 

 

11

 

automatically as part of this Agreement a provision as similar in terms
to such invalid, illegal, or unenforceable provision as may be possible to be
valid, legal, and enforceable.

 

17.                                 Arbitration.  Any controversy or
claim arising out of or relating to this Agreement or its breach (except, at
the option of the Company, a controversy or claim arising out of or relating to
Section 8, which the Company may choose to be adjudicated in a federal or
state court sitting in Las Vegas, Nevada), shall be settled by arbitration in
Las Vegas, Nevada, in accordance with the Commercial Arbitration Rules of
the American Arbitration Association, and judgment on the award rendered by the
arbitrator or arbitrators may be entered in any court having jurisdiction
thereof.  If any arbitration or other
legal or equitable action or proceeding is instituted to enforce any provisions
of this Agreement, the prevailing party shall be entitled to recover as costs
such amounts as the court or arbitrator may judge to be reasonable, including
costs and attorneys’ fees.

 

18.                                 Modification, rescission, and assignment. 
This Agreement may be modified or rescinded only with the written
consent of the other, provided, that (i) if the Executive dies during the
Term, the Executive’s estate and his heirs, executors, administrators,
legatees, and distributees shall have the rights and obligations as provided in
this Agreement, and (ii) nothing contained in this Agreement shall limit
or restrict the Company’s ability to merge or consolidate or effect any similar
transaction with any other entity, irrespective of whether the Company is the
surviving entity (including a split up, spin off, or similar type transaction),
provided that one or more of such surviving entities continues to be bound by
the provisions of this Agreement now binding on the Company.  Except as provided above, none of the rights
of the Executive to receive any form of compensation payable pursuant to this
Agreement shall be assignable or transferable. 
Any attempted assignment, transfer, conveyance, or other disposition of
any interest in the rights of the Executive herein shall be void.  This Agreement and the Consulting Agreement
are for the Executive’s personal services and the Executive may not assign,
transfer, or delegate any duty or obligation to perform such services.  Any attempted assignment, transfer or
delegation in violation of this Section 18 shall be null and void and
shall constitute a breach of this Agreement.

 

19.                                 Controlling law, severability. 
This agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Nevada without reference to its
conflicts of law provisions, and shall be binding upon the parties and their
respective heirs, executors, successors and assigns.  If any provision is unenforceable for any reason, it shall be
deemed stricken from the Agreement but shall not otherwise affect the intention
of the parties or the remaining provisions of the Agreement.

 

20.                                 Binding effect. 
This Agreement shall bind and inure to the benefit of each of the
parties and their respective heirs, successors, administrators, executors, and
assigns.

 

21.                                 No third party benefits. 
This Agreement is for the benefit of the parties and their permitted
successors and assigns.  The parties
intend neither to confer any benefit hereunder on any Person, firm, or corporation
other than the parties thereto, nor that any such third party shall have any
rights under this Agreement.

 

12

 

22.                                 Indulgence.  Neither the
failure nor any delay on the part of either party to exercise any right,
remedy, power, or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power,
or privilege preclude any other or further exercise of the same or of any other
right, remedy, power or privilege, nor shall any waiver of any right, remedy,
power, or privilege with respect to any occurrence be construed as a waiver of
such right, remedy, power, or privilege with respect to any other occurrence.

 

23.                                 Notice.  All notices required by this Agreement must be in writing and
must be delivered, mailed or telecopied to the addresses given below or such
other addresses as the parties may designate in writing.

 

	
  “Company”

  	
  Alliance Gaming

  
	
   

  	
  6601 S. Bermuda
  Road

  
	
   

  	
  Las Vegas,
  Nevada   89119

  
	
   

  	
  Attn: General
  Counsel

  
	
   

  	
   

  
	
  with a copy to:

  	
  Gibson Dunn
  & Crutcher LLP

  
	
   

  	
  333 South Grand
  Avenue

  
	
   

  	
  Los Angeles,
  CA  90071

  
	
   

  	
  Attention:  Peter F. Ziegler

  
	
   

  	
   

  
	
  “Executive”

  	
  Robert Miodunski

  
	
   

  	
  115 Augusta
  Street

  
	
   

  	
  Henderson,
  Nevada  89074

  

 

24.                                 Counterparts, facsimiles. 
This Agreement may be executed in counterparts, each of which shall be
deemed an original, and all of which, taken together, shall constitute one and
the same instrument.  This Agreement may
be executed and delivered by exchange of facsimile copies showing the
signatures of the parties, and those signatures need not be affixed to the same
copy.  The facsimile copies so signed
will constitute originally signed copies of the same consent requiring no
further execution.

 

25.                                 Captions; construction; drafting ambiguities. 
The captions in this Agreement are for convenience only and shall not be
used in interpreting it.  In
interpreting this Agreement any change in gender or number shall be made as
appropriate to fit the context.  Each
party has reviewed and revised this Agreement with independent counsel or has
had the opportunity to do so.  The rule
of construction that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of this Agreement or of any
amendments or exhibits to this Agreement.

 

26.                                 Condition precedent.  This Agreement is subject to approval by the
Company’s board of directors and shall be of no force and effect until that
approval is given and is evidenced by a written resolution of the board.

 

13

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

 

 

	
   

  	
  ALLIANCE GAMING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Robert L. Miodunski

  
					

 

14

 

EXHIBIT A

 

BONUS
MATRIX-FISCAL 2004

 

15Exhibit 10.3

 

AGREEMENT

 

This Agreement (this
“Agreement”) is dated as of July 1, 2004, and is between Alliance Gaming
Corporation, a Nevada corporation (the “Company”), and David Robbins, an
individual (“Robbins”).

 

BACKGROUND

 

Robbins is currently, and has
been since December 1997, the Chairman of the Board of Directors of the
Company (the “Board”).  The Company and
industry are currently experiencing a period of rapid growth in an increasingly
complex multi jurisdictional gaming industry which is dynamic and
challenging.  Contemporaneously, the
Company is preparing for a transition in management and is engaging in a
program of succession planning.  To
address, among others, these issues, the Company would like to procure the
services of Robbins as Chairman of the Board and as a director member of the
Office of the Chairman of the Company. 
Robbins is willing to serve in such capacities and provide such
functions pursuant to the terms and conditions of this Agreement.

 

NOW THEREFORE, in consideration
of the mutual covenants and promises set forth in this Agreement, and intending
to be legally bound, the parties agree as follows:

 

1.             Functions.

 

(a)           The Company hereby appoints Robbins to
continue to serve, and Robbins hereby accepts such appointment to continue to
serve, as Chairman of the Board.  As
Chairman, Robbins shall have such powers and perform such duties as are
contemplated by the Amended and Restated Bylaws of the Company and as may be
delegated to Robbins by the Board.

 

(b)           Robbins shall also serve as a director
member of the Office of the Chairman and in that regard shall, without
limitation, perform the following, as may be reasonably requested by the
Company:

 

(i)            Providing for the establishment, management
and oversight of specific goals related to the CEO’s accountabilities in
mentoring and training identified succession candidate(s).

 

(ii)           Coordinating by working with the CEO, the
development of a detailed Management Development Plan for the identified
succession candidate(s).

 

(iii)          Meeting with the incumbent CEO and succession
candidate(s) quarterly to monitor and discuss progress on established
objectives (for both the incumbent CEO and succession candidate(s)).

 

(iv)          Providing on-going mentoring of succession
candidate(s) and monitoring of development progress through the indicated
transition period.

 

 

(v)           Providing on-going consultation, advice and
mentoring to Alliance Executive Management following transition as reasonable
and appropriate.

 

(c)           In serving as Chairman and undertaking such
functions (collectively, the “Functions”), Robbins shall devote such time and
attention as is reasonable and appropriate to perform such functions hereunder.

 

2.             Term and
Termination.

 

(a)           Term.   The term of this Agreement shall be for a period of three and
one-half (3.5) years commencing on July 1, 2004 and terminating on
December 31, 2007 (the “Term”), unless earlier terminated as provided
herein.

 

(b)           Termination.  This Agreement may be terminated prior to
expiration of the Term as follows:

 

(i)            By Robbins.  If Robbins voluntarily resigns from the Board, or otherwise
provides the Company with written notice of his voluntary termination of this
Agreement prior to the expiration of the Term, this Agreement shall terminate
as of the date of such resignation or termination, and the Company shall have
no further obligations to Robbins or his heirs or estate under this Agreement.

 

(ii)           By the Board.  [a] If the Board requests in writing that
Robbins resign from the Board, or Robbins is not re-nominated or having been
renominated is not re-elected to serve on the Board, or otherwise provides
Robbins with written notice of termination of this Agreement, other than for
Cause (as herein defined) prior to the expiration of the Term, this Agreement
shall terminate as of the date of the Board’s request or notice.  In such circumstances, the Company shall pay
Robbins the remainder, if any, of the fees due under Sections 3(a) and
3(b) of this Agreement for the remainder of the Term, to be paid in
accordance with the payment provisions set forth in
Section 3(c) hereof, and the options referred to in
Section 3(b) shall be fully vested and exercisable.  [b] For purposes of this Agreement, “Cause”
shall mean (i) Robbins’ willful and continual failure to substantially
perform his duties with the Company (other than a failure resulting from
Robbins’ becoming Disabled) and such failure continues for a period of thirty
(30) days after Robbins’ receipt of written notice from the Company providing a
reasonable description of the basis for the determination that Robbins has
failed to perform his duties; (ii) Robbins’ conviction of a felony other
than a conviction not disclosable under the federal securities laws;
(iii) Robbins’ breach of this Agreement in any material respect and such
breach is not susceptible to remedy or cure or has already materially damaged
the Company, or such breach is susceptible to remedy or cure and no such damage
has occurred and such breach is not cured or remedied reasonably promptly after
Robbins’ receipt of written notice from the Company providing a reasonable
description of

 

2

 

the breach;
(iv) Robbins’ failure to qualify (or having so qualified being thereafter
disqualified) under a suitability or licensing requirement of any jurisdiction
or regulatory authority that is material to the Company and to which Robbins
may be subject by reason of his position with the Company and its affiliates or
subsidiaries; (v) the Company’s having obtained from any source
information with respect to Robbins or this Agreement that could reasonably be
expected, in the reasonable written opinion of both the Company and its outside
counsel, to jeopardize the gaming licenses, permits, or status of the Company
or any of its subsidiaries or affiliates with any gaming commission, board, or
similar regulatory or law enforcement authority; or (vi) conduct to the
material detriment of the Company that is dishonest, fraudulent, unlawful or
grossly negligent or which is not in compliance with the Company’s Code of
Conduct or similar applicable set of standards or conduct and business
practices set forth in writing and provided to Robbins prior to
such conduct and which has a material detriment to the Company and is not
susceptible to remedy or cure by Robbins.

 

(c)           By Death or Disability.  If Robbins dies before the expiration of the
Term, this Agreement shall terminate on the date of his death.  If Robbins becomes disabled or incapacitated
(“Disabled”) for any period of six (6) or more consecutive months or for a
noncontinuous period aggregating to twenty-six weeks in any twelve month period
as a result of illness or incapacity before the expiration of the Term, the
Board shall have the right to terminate this Agreement upon written notice to
Robbins.  In the event Robbins dies or
becomes Disabled, and the Board terminates the Agreement, the Company shall
have no further obligations to Robbins or his heirs or estate under this
Agreement.

 

3.             Compensation.

 

(a)           As compensation for his services as Chairman
of the Board hereunder, the Company shall pay Robbins $235,000 per year.  Robbins shall not be entitled to receive any
other cash fees or compensation for service on the Board during the Term; provided,
however, that this Section 3(a) is not intended to limit or restrict
the Company from providing equity incentive awards to Robbins in accordance
with it stock incentive plans or otherwise and Robbins shall be granted
options/equity compensation in accordance with regular grants applicable to
non-employee Board members.

 

(b)           As compensation for his role as a director
member of the Office of the Chairman hereunder, the Company shall pay Robbins
$90,000 per year.

 

(c)           The Company hereby grants to Robbins stock
options to purchase 39,000 shares of the Company’s Common Stock with an
exercise price of $17.16 and an exercise period of ten years.  The options shall vest in equal increments
on the first, second and third anniversary dates of this Agreement.

 

3

 

(d)           The Company shall pay the fees and
compensation contemplated in Section 3(a) and Section 3(b) in 12
monthly installments per year.  Each
installment shall be due and paid in arrears by the first day of each month
beginning August 1, 2004.

 

4.             Business Expenses.  The Company shall reimburse Robbins for all
reasonable and necessary out-of-pocket expenses incurred or paid by Robbins in
connection with, or related to, the performance of Functions under this
Agreement.  Robbins shall submit to the Company
periodic itemized statements, in a form satisfactory to the Company, of such
expenses as incurred.  The Company shall
pay to Robbins amounts shown on each statement in accordance with its regular
procedures, but in any event, within thirty (30) days after receipt
thereof.  Notwithstanding the foregoing,
Robbins shall not incur total expenses in excess of $5,000.00 per month without
the prior written approval of the Company.

 

5.             Independent
Contractor.  The parties acknowledge
and confirm that Robbins in his capacity as a chairman and a director shall,
for tax purposes, be treated as an independent contractor to the Company and,
as such, shall be responsible for the payment of all taxes including, but not
limited to, social security and income tax relating to the compensation paid to
Robbins pursuant to the terms of this Agreement.  Nothing herein contained shall be construed or deemed by the
parties hereto as creating or having created any relationship of employer and
employee, principal and agent or partnership or joint venture between Robbins
and the Company.

 

6.             Confidential
Information.  Robbins recognizes and
acknowledges that he has had, and will have, during the Term, access to certain
Confidential Information (as defined below) of the Company and that such
information constitutes valuable, special and unique property of the
Company.  Robbins agrees that he will
not, during or after the Term, disclose any of such Confidential Information to
any person or entity without the consent of the Company, except as necessary or
appropriate in the ordinary course of performing the Functions hereunder or as
required by law, rule or regulation.

 

(a)           “Confidential Information” shall mean
information that is not generally known to the public, which is used, developed
or obtained by the Company and/or any of its affiliates, relating to its or
their business and the businesses of its or their clients, vendors or customers
including, but not limited to:  business
and marketing strategies, products or services; fees, costs and pricing
structure; marketing information; advertising and pricing strategies; analyses;
reports; computer software, including operating systems, applications and
program listings; flow charts; manuals and documentation; data bases;
accounting and business methods; hardware design; technology, inventions and
new development and methods, whether patentable or unpatentable and whether or
not reduced to practice; all copyrightable works; the Company’s or any of its
affiliates’ existing and prospective clients, customers, and vendor lists and
other data related thereto; all trade secret information protected by the
federal Economic Espionage Act of 1996, 18 U.S.C. § 1831 et seq.; and all
similar and related information in whatever form.

 

(b)           “Confidential Information” shall not include
any information that has been published in a form generally available to the
public prior to the date upon which Robbins proposes to disclose such
information.  Information shall not be
deemed to have been published

 

4

 

merely because individual
portions of the information have been separately published, but only if all the
material features comprising such information have been published in
combination.

 

7.             Covenant Not to
Compete.  During his engagement
under this Agreement, and in the event of Robbins termination pursuant to
paragraph 2(b)(ii) hereof, during the period the Company is obligated
to pay Robbins the remainder of his fees due under Sections 3(a) and
3(b) of this Agreement, Robbins shall not become employed by, act as a
consultant for, contract with, obtain a beneficial ownership interest in or
otherwise enter into any form of business relationship with International Game
Technology, Inc., WMS Industries, Inc., Shuffle Master, Inc., Aristocrat
Leisure, Ltd., Gtech Holdings Corp., Multimedia Games, Inc., Sigma Game Inc.,
or any of their present and future subsidiaries, divisions, parent companies
and successors (“Peer Group”).  The
provisions of this Section 7 shall not prevent Robbins from investing his
assets in such form and manner as he chooses; provided, however, that Robbins
shall not have any personal interest, direct or indirect (other than through
the Company or its subsidiaries), financial or otherwise, in any member of the
Peer Group unless such interest has been approved by the Compensation Committee
or such interest is, or arises solely from ownership of, less than three
percent (3%) of the outstanding capital stock of such member and such capital
stock is available to the general public through trading on any national,
regional or over-the-counter securities market.

 

8.             Notices.  All notices, requests and other
communications hereunder shall be in writing. 
Any notice, request or other communication hereunder shall be deemed
duly given if it is sent by facsimile, with confirmation received, by hand
delivery, by overnight delivery service or by registered or certified mail,
return receipt requested, postage prepaid, and addressed to the intended
recipient as set forth below:

 

(a)           If to the Company:

 

Alliance Gaming Corporation

6601 South Bermuda Road 

Las Vegas, Nevada 89119 

Attention:  Chief Executive Officer 

Copy to:  General Counsel 

Facsimile:  (702) 270-7699

 

(b)           If to Robbins:

 

David Robbins

c/o Reitler Brown & Rosenblatt LLC 

800 Third Avenue, 21st Floor 

New York, New York 10022 

Facsimile:  (212) 371-5500

 

9.             Entire Agreement.  This Agreement constitutes the entire
agreement between the parties and supersedes all prior agreements and
understandings, whether written or oral, relating to the subject matter of this
Agreement.

 

5

 

10.           Amendment.  This Agreement may be amended or modified
only by a written instrument executed by both the Company and Robbins.

 

11.           Successors and
Assigns.  This Agreement is personal
to Robbins and may not be transferred or assigned by him.  Neither this Agreement nor any right or
interest under it shall be assignable by the Company without the prior written
consent of Robbins; provided, however, that the Company shall be obligated to
cause the assignment of this Agreement pursuant to a Change of Control, as set
forth in Section 12 below.  This
Agreement shall be binding upon and inure to the benefit of the heirs, estate,
successors and permitted assigns of each party.

 

12.           Change of Control.  Upon a Change of Control of the Company (as
defined below), the Company shall be obligated to cause any surviving or
successor entity to assume, be responsible for and honor Sections 2(b)(ii),
3(a) and 3(b) of this Agreement. 
For purposes of this Agreement, a “Change of Control” means (a) the
acquisition, directly or indirectly, by any unaffiliated person, entity or
group (a “Third Party”) of beneficial ownership of 50% or greater of the
combined voting power of the Company’s then outstanding voting securities
entitled to vote generally in the election of directors; or
(b) consummation of (i) a reorganization, merger or consolidation of
the Company, or (ii) a liquidation or dissolution of the Company or
(iii) a sale of all or substantially all of the assets of the Company
(whether such assets are held directly or indirectly) to a Third Party; or
(c) the individuals who as of the date of this Agreement are members of
the Board of Directors (together with any directors elected or nominated by a
majority of such individuals) cease for any reason to constitute at least a
majority of the members of the Board of Directors; except that any event or
transaction which would be a “Change of Control” under clause (a) or b)(i)
or (iii) of this definition, shall not be a change of control if persons
who were the equity holders of the Company immediately prior to such event or
transaction (other than the acquiror in the case of a reorganization, merger or
consolidation), immediately thereafter, beneficially own more than 50% of the
combined voting power of the Company’s or the reorganized, merged or
consolidated company’s then outstanding voting securities entitled to vote
generally in the election of directors.

 

13.           Other Activities.  The Company explicitly acknowledges and
agrees that during the Term, Robbins will also be engaged in a variety of other
substantial business activities that do not relate to the business of the
Company.

 

14.           Waiver.  Either party’s failure to enforce any
provision or provisions of this Agreement shall not in any way be construed as
a waiver of any such provision or provisions as to any future violations
thereof, nor prevent that party thereafter from enforcing each and every other
provision of this Agreement.

 

15.           Severability.  If, for any reason, any provision of this
Agreement is determined to be invalid or unenforceable, such invalidity or lack
of enforceability shall not affect any other provision of this Agreement not so
determined to be invalid or unenforceable, and each such provision shall, to
the full extent consistent with applicable law, continue in full force and
effect, irrespective of such invalid or unenforceable provision.

 

16.           Governing Law.  This Agreement shall be construed,
interpreted and enforced in accordance with the laws of Nevada, without regard
to principles of conflicts of law.

 

6

 

17.           Counterparts.  This Agreement may be executed in
counterparts, each of which when so executed and delivered shall be an original
and all of which taken together shall constitute but one and the same
instrument.

 

IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the day and year first set forth
above.

 

	
   

  	
  ALLIANCE GAMING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DAVID ROBBINS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

7

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