Document:

Second Omnibus Amendment

 Exhibit 10.13.5 
 SECOND OMNIBUS AMENDMENT 
 This SECOND OMNIBUS AMENDMENT, dated as of June 7, 2006 (as
amended, modified, waived, supplemented or restated from time to time, this “Amendment”), is by and among: 
 (1) U.S.
BANK NATIONAL ASSOCIATION, a national banking association (together with its successors and assigns “U.S. Bank”), not in its individual capacity, but solely as Custodian (in such capacity, the “Custodian”) and
as indenture trustee (in such capacity, the “Indenture Trustee”) under the Indenture (as defined below); 
 (2) CITIGROUP
GLOBAL MARKETS REALTY CORP., a Delaware corporation (together with its successors and assigns, “Citigroup”), as note purchaser (in such capacity, the “Note Purchaser”) under the Note Purchaser Agreement (as
defined below); 
 (3) NEWSTAR WAREHOUSE FUNDING 2005 LLC, a Delaware limited liability company (together with its successors and
assigns, “NewStar LLC”), as issuer (in such capacity, the “Issuer”) under the Indenture (as defined below) and as purchaser (in such capacity, the “Purchaser”) under the Sale and Servicing Agreement
(as defined below); 
 (4) NEWSTAR FINANCIAL, INC., a Delaware corporation (together with its successors and assigns, “NewStar
Financial”), as seller (in such capacity, “Seller”) and as servicer (in such capacity, “Servicer”) under the Sale and Servicing Agreement (as defined below); and 
 (5) LYON FINANCIAL SERVICES, INC., d/b/a U.S. Bank Portfolio Services, a national banking association (together with its successors and assigns,
“USBPS”), as backup servicer (in such capacity, “Backup Servicer”). 
 INTRODUCTORY STATEMENT

 NewStar Financial, as Seller and as Servicer, NewStar LLC, as Purchaser, and USBPS, as Backup Servicer, have entered into the Sale and
Servicing Agreement, dated as of December 30, 2005 (the “Sale and Servicing Agreement”). 
 NewStar LLC, as Issuer, and
U.S. Bank, as Indenture Trustee and as Custodian, have entered into the Indenture, dated as of December 30, 2005 (the “Indenture”). 
 NewStar LLC, as Issuer, NewStar Financial, as Seller and Servicer, and Citigroup, as Note Purchaser, have entered into the Note Purchase Agreement, dated as of December 30, 2005 (the “Note Purchase
Agreement” and, together with the Sale and Servicing Agreement and the Indenture, the “Basic Documents”). 
 Pursuant to the Indenture, NewStar LLC, as Issuer, has issued a Note to the Note Purchaser with an aggregate initial principal amount of up to $ 300,000,000 (the “Note”). 
 In April of 2006, the parties entered into a First Omnibus Amendment amending Appendix A to each of the Basic Documents (the “First Omnibus
Amendment”). 
 The parties now wish to further amend Appendix A attached to each of the Basic Documents (such appendix, the
“Definitions Appendix”) , in the manner set forth herein. 
  

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 The parties hereto agree as follows: 
 Section 1. Definitions. Unless otherwise defined herein, all defined terms that are defined in the Sale and Servicing Agreement or, if not
therein defined, in the Note Purchase Agreement or, if not therein defined, in the Indenture (including, in each case, the Definitions Appendix attached thereto), shall have the same meanings when used herein. 
 Section 2. Amendment to the Definitions Appendix. The Definitions Appendix, as it applies to each of the Basic Documents, is hereby amended
as follows: 
 (a) by inserting the following definitions (in alphabetical order): 
 “Domiciled” means, with respect to any Obligor, in the case of: 
 (a) an Obligor that is organized or incorporated under the laws of a Special Purpose Vehicle Jurisdiction, the country in which the most substantial
portion of its operations are located or from which a substantial portion of its revenue is derived, in each case directly or through subsidiaries, such country with respect to any Obligor being determined by the Note Purchaser in its sole
discretion (with the advice and assistance of the Servicer); and 
 (b) any other Obligor, the country under whose laws such Obligor is
organized or incorporated (provided, that, in the case of an Obligor included in this clause (b), the Note Purchaser in its sole discretion may designate another country in which such Obligor is Domiciled if a substantial portion of such
Obligor’s operations are located, or a substantial portion of its revenue is derived, in each case directly or through subsidiaries, in such country). 
 “Group I Country” means any of The Netherlands, the United Kingdom, Australia and New Zealand. 
 “Group II Country” means any of Germany, Ireland, Sweden and Switzerland. 
 “Group III Country”
means any of Austria, Belgium, Denmark, Finl and, France, Iceland, Liechtenstein, Luxembourg, Norway and Spain. 
 (b) by amending clause
(a) of the definition of “Excess Concentration Amount” to read in its entirety as follows: 
 “(a) the total Outstanding
Principal Balance of Eligible Assets that relate to a single Obligor (including any Affiliates thereof) exceeds $25,000,000;” 
 (c) by
further amending the definition of “Excess Concentration Amount” to insert the following immediately after clause (m) thereof: 
 “(n) the total Outstanding Principal Balance of Eligible Assets as to which the related Obligors are Domiciled in Group I Countries, Group II Countries or Group III Countries exceeds 5% of the Eligible Asset
Amount; and 
  

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 (o) the total Outstanding Principal Balance of Eligible Assets relating to a single
Obligor that is Domiciled in a Group II Country or a Group III Country exceeds 2.5% of the Eligible Loan Amount”; and 
 (d) by deleting
in its entirety clause (i) of the definition of “Eligible Obligor” and replacing such clause with the following: 
  

	 	“(i)	except to the extent otherwise approved in writing by the Note Purchaser, is a business organization (and not a natural person) that (x) is Domiciled in (A) the United
States, (B) Canada (excluding Quebec) or (C) any Group I Country, Group II Country or Group III Country and (y) has a billing address within the United States or Canada (excluding Quebec);” ; 

 (e) by inserting the (e) by inserting the following at the end of the definition of “Loan Eligibility Criteria”: 
 “Notwithstanding the foregoing, the Note Purchaser shall have the right to determine, in its sole discretion, whether each of the first three Assets
acquired by the Issuer immediately following a Term Securitization involving any of the Assets is an Eligible Asset; provided, that, in the event that the aggregate Outstanding Principal Balance of such Assets is less than $25,000,000, the Note
Purchaser shall retain such right until the aggregate Outstanding Principal Balance of all Assets acquired following such Term Securitization and determined to be Eligible Assets equals or exceeds $25,000,000.”; 
 (f) by deleting the definition of “Enhancement Floor” in its entirety; and 
 (g) by amending the definition of “Borrowing Base” to delete the words “the lesser of (i)” and to delete clause (A)(ii) thereof in
its entirety. 
 Section 3. Representations and Warranties of NewStar LLC and NewStar Financial. Each of NewStar LLC and New Star
Financial represents and warrants (which representations and warranties shall survive the execution and delivery hereof) to the Note Purchaser, the Indenture Trustee, the Custodian and the Backup Servicer that: 
 (a) it has the corporate power and authority to execute, deliver and carry out the terms and provisions of this Amendment and has taken or caused to be
taken all necessary corporate action to authorize the execution, delivery and performance of this Amendment; 
 (b) no consent of any person
and no action of, or filing with any governmental or public body or authority is required to authorize, or is otherwise required in connection with the execution, delivery and performance of this Amendment which has not been obtained; 
 (c) this Amendment has been duly executed and delivered by a duly authorized officer on behalf of such party, and constitutes a legal, valid and binding
obligation of such party enforceable against such party in accordance with its terms, subject to bankruptcy, reorganization, insolvency, moratorium and other similar laws affecting the enforcement of creditors’ rights generally and the exercise
of judicial discretion in accordance with general principles of equity; 
 (d) the execution, delivery and performance of this Amendment will
not violate any law, statute or regulation, or any order or decree of any court or governmental instrumentality, or conflict with, or result in the breach of, or constitute a default under any contractual obligation of such party; 
  

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 (e) after giving effect to this Amendment, no Event of Default or event which upon notice or lapse of
time or both would constitute an Event of Default (as defined in the Indenture or any other Basic Document) has occurred and is continuing; and 
 (f) on the date hereof, the representations and warranties set forth in Section 3.1 and Section 3.2 of the Sale and Servicing Agreement, and the representations and warranties set forth in Section 5.01
and Section 5.02 of the Note Purchase Agreement, are and will be true, correct and complete with the same effect as if made on the date hereof, except to the extent such representations and warranties expressly relate to an earlier date,
in which case, as of such earlier date. 
 Section 4. Conditions to Effectiveness. This Amendment shall become effective as of
the date above written, if, and only if: 
 (a) each of the Note Purchaser, the Indenture Trustee, the Custodian and the Backup Servicer
shall have received counterparts of this Amendment duly executed by NewStar LLC and NewStar Financial (in all of their respective capacities set forth herein); 
 (b) all representations and warranties contained in this Amendment or otherwise made in writing to the Note Purchaser, the Indenture Trustee, the Custodian and/or the Backup Servicer in connection herewith shall be
true and correct in all material respects; 
 (c) such other information, materials and documentation as the Note Purchaser, the Indenture
Trustee, the Custodian and/or the Backup Servicer, and/or their respective counsel, may reasonably request, which information, materials and documentation shall be satisfactory in form and substance to such Person, as the case may be, and its
counsel; and 
 (d) all legal matters incident to the effectiveness of this Amendment shall be satisfactory to the Note Purchaser, the
Indenture Trustee, the Custodian and/or the Backup Servicer and their respective counsel. 
 Section 5. Confirmation and
Acknowledgement of the Obligations. NewStar LLC hereby (i) confirms and acknowledges to the Note Purchaser that it is validly and justly indebted to the Note Purchaser, any other Noteholders and any other Persons party to the Basic
Documents, as applicable, for the payment of all obligations due under the Basic Documents without offset, defense, cause of action or counterclaim of any kind or nature whatsoever and (ii) reaffirms and admits the validity and enforceability
of the Indenture, the Note and the other Basic Documents. NewStar Financial hereby confirms and acknowledges its obligations under the Basic Document and confirms that they will remain in effect following the execution and delivery of this
Amendment. 
 Section 6. Ratification of Basic Documents. This Amendment shall be limited precisely as written and shall not be
deemed (i) to be a consent granted pursuant to, or a waiver or modification of, any other term or condition of the Note or the Basic Documents or a waiver of any Event of Default under the Note, the Indenture or the other Basic Documents,
whether or not known to the Note Purchaser, any other Noteholder or the Indenture Trustee or (ii) to prejudice any other right or rights which the Note Purchaser, any other Noteholder or the Indenture Trustee may now have or have in the future
under or in connection with the Note or the Basic Documents or any of the instruments or agreements referred to therein. Except to the extent hereby modified, the Note and each of the Basic Documents shall continue in full force and effect in
accordance with the provisions thereof on the date hereof and the Note and the Basic Documents as heretofore amended or modified and as modified by this Amendment are hereby ratified and affirmed. After this Amendment becomes effective, all
references to the Indenture, Note Purchase Agreement and Sale and Servicing Agreement, “hereof,” “herein,” or words of similar effect referring to 
  

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the Indenture, Note Purchase Agreement or Sale and Servicing Agreement shall be deemed to mean the Indenture, Note Purchase Agreement or the Sale and
Servicing Agreement as amended by the First Omnibus Amendment and as further amended hereby. This Amendment shall not constitute a novation of the Indenture, Note Purchase Agreement or Sale and Servicing Agreement, but shall constitute an amendment
thereof. 
 Section 7. GOVERNING LAW; JURISDICTION. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS. EACH OF THE PARTIES TO THIS AMENDMENT HEREBY AGREES TO THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY
APPELLATE COURT HAVING JURISDICTION TO REVIEW THE JUDGMENTS THEREOF. EACH OF THE PARTIES HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND
CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. 
 Section 8. Paragraph
Headings. The paragraph headings contained in this Amendment are and shall be without substance, meaning or content of any kind whatsoever and are not a part of the agreement among the parties thereto. 
 Section 9. Successors and Assigns. The provisions of this Amendment shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. 
 Section 10. Integration. This Amendment represents the entire agreement of the
parties hereto with respect to the amendment of the Basic Documents. There are no representations, agreements, arrangements or understandings, oral or written, between the parties hereto, relating to the subject matter of this Amendment, which are
not fully expressed herein. 
 Section 11. Severability. If any provisions of this Amendment shall be held invalid or
unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or enforceability without in any manner affecting the validity or enforceability of such provision
in any other jurisdiction or the remaining provisions of this Amendment in any jurisdiction. 
 Section 12. Further Assurances.
The parties hereto shall, at any time and from time to time following the execution of this Amendment, execute and deliver all such further instruments and take all such further action as may be reasonably necessary or appropriate in order to carry
out the provisions of this Amendment. 
 Section 13. Consultation with Advisors. Each of the parties hereto acknowledge that it
has consulted with counsel and with such other experts and advisors as it has deemed necessary in connection with the negotiation, execution and delivery of this Amendment. This Amendment shall be construed without regard to any presumption or rule
requiring that it be construed against the party causing this Amendment or any part thereof to be drafted. 
 Section 14.
Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed counterpart of a signature
page by telecopier shall be effective as delivery of a manually executed counterpart. 
  

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 Section 15. Costs and Expenses. Each of NewStar LLC and NewStar Financial agrees that the
obligations of the Issuer pursuant to Section 10.13(a)(ii) of the Note Purchase Agreement shall extend to the preparation, execution and delivery of this Amendment and any other documentation contemplated hereby (whether or not this Amendment
becomes effective or the transactions contemplated hereby are consummated), including, but not limited to, the reasonable fees and disbursements of Skadden, Arps, Slate, Meagher & Flom LLP, counsel to the Note Purchaser. 
 [The remainder of this page is intentionally left blank] 
  

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 IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above
written. 
  

			
	 U.S. BANK NATIONAL ASSOCIATION, as
 Custodian and as Indenture Trustee

		
	By:	 	 /s/ Kyle Harcourt

		 	 Name: Kyle Harcourt

		 	 Title:   Vice President

			
	CITIGROUP GLOBAL MARKETS REALTY CORP., as Note Purchaser
		
	By:	 	 /s/ John Pawlowski

		 	 Name: John Pawlowski

		 	 Title:   Authorized Signer

			
	NEWSTAR WAREHOUSE FUNDING 2005 LLC, as Purchaser and as Issuer
		
	By:	 	 /s/ John J. Frishkopf

		 	 Name: John J. Frishkopf

		 	 Title:   Managing Director

			
	NEWSTAR FINANCIAL, INC., as Purchaser and as Issuer
		
	By:	 	 /s/ John J. Frishkopf

		 	 Name: John J. Frishkopf

		 	 Title:   Managing Director

			
	LYON FINANCIAL SERVICES, INC., as Backup Servicer
		
	By:	 	 /s/ Joseph Andries

		 	 Name: Joseph Andries

		 	 Title:   Senior Vice PresidentAgreement

 Exhibit 10.1 
 AGREEMENT 
 THIS AGREEMENT is made as of October 24, 2006 by and among the following parties
(collectively, the “Parties”): 
  

	 	(1)	Multimedia Games, Inc., a Texas corporation (the “Company”); 

  

	 	(2)	the following parties (individually a “Liberation Investments Party” and collectively “Liberation Investments,” which latter term also includes
each of the Liberation Investments Parties individually): Liberation Investments, L.P., a Delaware limited partnership (“LILP”); Liberation Investments, Ltd., a private offshore investment corporation (“LILtd”);
Liberation Investment Group, LLC, a Delaware limited liability company and general partner of LILP and discretionary investment adviser to LILtd (“LIGLLC”); and Emanuel R. Pearlman, as Chief Executive Officer and majority
member of LIGLLC (“Mr. Pearlman”); and 

  

	 	(3)	each of Mr. Emanuel R. Pearlman (“Mr. Pearlman”) and Mr. Neil E. Jenkins (“Mr. Jenkins”) severally (each of
Mr. Pearlman and Mr. Jenkins being sometimes referred to herein individually as a “New Director” and collectively as the “New Directors,” both of which terms include, unless the context otherwise requires,
a Successor Director (as hereinafter defined)). 

 RECITALS 
 A. As of the date of this Agreement, Liberation Investments Beneficially owns, and has the right to vote, 2,311,327 shares of the Company’s common
stock, par value $0.01 (“Company Common Stock”), representing approximately 8.4% of the outstanding Company Common Stock; 
 B. Liberation Investments has filed with the Securities and Exchange Commission (the “SEC”) a definitive Solicitation Statement To Call A Special Meeting Of Shareholders Of the Company and a related Form Of Request Of
Shareholders (together, the “Solicitation Materials”) seeking requests from holders of a significant number of outstanding shares of Company Common Stock to enable Liberation Investments to call a special meeting of shareholders of
the Company (the “Special Meeting”). 
 C. In the Solicitation Materials, Liberation Investments has indicated that, in the
event it is successful in soliciting sufficient requests to enable it to exercise, and it decides to exercise, the right to call the Special Meeting (which it has no obligation to do and may decide, in its discretion, not do to), it intends to
solicit proxies from all shareholders of record of the Company in favor of specified proposals (the “Liberation Investments Proposals”) that would, among other things, reconstitute the membership of the Company’s Board of
Directors (the “Board”) so that a majority of its members would consist of three nominees to be identified by Liberation Investments; 
  

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 D. For the purpose of avoiding a proxy contest (the “Proxy Contest”) over both the call
of the Special Meeting and the Liberation Investments Proposals in the event the Special Meeting is called, and to provide for certain matters in relation to the governance of the Company on the basis of the mutual consent of the Parties in lieu of
the Proxy Contest, the Parties are entering into this Agreement. 
 1. BOARD COMPOSITION AND RELATED MATTERS 
 1.1 The Company represents and warrants to the other Parties that the Board, in connection with its approval of this Agreement and subject to the
execution and delivery of this Agreement by all Parties (“Full Execution”), has: (a) received the written resignation of Thomas W. Sarnoff from the Board and all committees thereof on which he serves, such resignation
being conditioned, and automatically effective without further action by Mr. Sarnoff or the Board, upon Full Execution; (b) resolved (a certified true and complete copy of which resolutions have been furnished to the other Parties) that,
effective automatically upon Full Execution and without the need for further action by the Board, (1) the size of the Board shall be expanded from five to six, (2) each of the New Directors shall be added to the Board, and (3) a
standing resolution of the Board (the “Resolution”) shall take effect (A) requiring that, prior to the expiration of the Standstill Period (as hereinafter defined), the size of the Board shall not be increased, nor shall any
vacancy in any existing directorship be filled by any Person (other than a Successor Director), nor shall any Person (other than a Successor Director) be nominated by the Board for election to the Board by the Company’s shareholders, without
(in each case) the unanimous approval of all members of the Board, and (B) prohibiting any amendment or repeal of, or adoption of any Board resolution or Bylaw inconsistent with, the Resolution without (in each case) the unanimous approval of
all members of the Board. During his respective term of office on the Board, including (if applicable) the term that commences with his election to the Board as a member of the 2007 Slate (as hereinafter defined) pursuant to Section 1.3 hereof,
each of the members of the Board shall have the same rights, powers, privileges, access to information and compensation, and the same duties and responsibilities to the Company and all of its shareholders, as all other members of the Board and of
any committees thereof on which such member serves. 
 1.2 Each of Mr. Pearlman and Mr. Jenkins, severally with respect to himself,
hereby confirms: (a) his consent to serve on the Board immediately upon Full Execution pursuant to Section 1.1(b)(2) hereof; (b) his agreement that, in addition to the information he has provided to the Company in connection with the
review of his candidacy by the Board and its Nominating and Corporate Governance Committee (the “Governance Committee”), he shall provide to the Company such additional information as it may from time to time reasonably request in
order for the Company to be able to fulfill its disclosure obligations under applicable law and stock exchange requirements (collectively, “Applicable Legal Requirements”). 
 1.3 The Company represents and warrants to the other Parties that the Board, in connection with its approval of this Agreement and subject to Full
Execution, has resolved (a certified true and complete copy of which resolution has been furnished to the other Parties) to approve the inclusion of each of the New Directors on the slate of candidates to be proposed by the Board as a nominee for
election to the Board by the Company’s shareholders (the “2007 Slate”) at the 2007 Annual Meeting of Shareholders of the Company (the “2007 Annual  
  

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 Meeting”) and to recommend (and not to withdraw such recommendation) to the shareholders of the Company that
they vote for the election of the New Directors at the 2007 Annual Meeting, provided, as to each of the New Directors severally, (a) he is still serving as a member of the Board pursuant to Section 1.1(b)(2) hereof when the vote is held
for the election of directors at the 2007 Annual Meeting, (b) the Board has not received a written opinion of its general outside counsel to the effect that Applicable Legal Requirements raise a serious issue as to the legality of his inclusion
on the 2007 Slate by reason of facts or circumstances not known on the date hereof and identified in such opinion, and (c) in the case of Mr. Pearlman, that Liberation Investments has continuously Beneficially owned at least 3% of the
outstanding Company Common Stock since Full Execution. The Company shall hold the 2007 Annual Meeting by April 30, 2007 or, if the Company is unable to hold the 2007 Annual Meeting by such date as a result of a legal impediment under Applicable
Legal Requirements that arises and first becomes known to the Company after the date hereof, as soon as reasonably practicable following the resolution of such impediment, which the Company shall take all commercially reasonable efforts to resolve.

 1.4 The Company represents and warrants to the other parties that the Board, in connection with its approval of this Agreement and subject
to Full Execution, has resolved (a certified true and complete copy of which resolution has been furnished to the other Parties) to approve the prompt retention of an executive search firm, the identity of which has been heretofore agreed among the
Parties, to initiate on behalf of the Governance Committee a search for an additional qualified independent director (the “Additional Director”) to be added to the Board as a seventh member (filling a vacancy to be created at that
time) as soon as such a candidate has been identified and has been offered, and has accepted, such appointment consistent with the Resolution (it being understood, for the avoidance of doubt, that such appointment shall be subject to unanimous
approval of all members of the Board, including the New Directors, pursuant to the Resolution). If the Additional Director is appointed prior to the holding of the vote on the election of directors at the 2007 Annual Meeting, then, subject to the
same qualifications as are set forth with respect to the New Directors in Section 1.3 hereof, the Additional Director shall be included on the 2007 Slate. 
 1.5 If, at any time prior to the expiration of the Standstill Period, either or both (whether or not at the same time as the other) of the New Directors, having become a member of the Board pursuant to
Section 1.1(b)(2) hereof, ceases to be a member of the Board or declines to be included in the 2007 Slate by reason of death, disability or resignation other than where such New Director has resigned or refused to stand for reelection because
of either (1) a disagreement with the Company that is known to an executive officer of the Company and requires the Company to file a Current Report on Form 8-K with the SEC under Item 5.02(a)(1) of Form 8-K or (2) in the case of
Mr. Pearlman, Liberation Investments having ceased to Beneficially own at least 3% of the outstanding Company Common Stock, then a “Succession Event” shall have occurred, in which case: (a) Liberation Investments shall
have the right to submit to the Governance Committee in good faith one or more names of suggested independent qualified replacements (other than Affiliates or Associates of Liberation Investments) to replace such New Director or New Directors (as
the case may be) (each, a “Successor Director”) and the Governance Committee shall promptly evaluate such suggestions in good faith in accordance with its published criteria for Board membership with a view to determining whether
the suggested candidates (or at least one of them if more than one is suggested for each vacant directorship) satisfy the same criteria of independence and qualification that were applied to the 
  

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 review of the candidacies of the predecessor New Director and, if it so determines, recommending to the Board the
appointment and/or addition to the 2007 Slate (as the case may be) of the suggested candidate (or one of them if more than one is suggested), as the Successor Director, which appointment and/or addition (as the case may be) shall be subject to the
Resolution; and (b) unless, within 35 days of the Company’s first receipt from Liberation Investments, following the applicable Succession Event, of the names of suggested Successor Directors, a Successor Director has been appointed for
each directorship vacated by the applicable New Director or New Directors (as the case may be) and/or added to the 2007 Slate (as the case may be), then at 12 Midnight, Central Time, on such 35th day, a “Section 1.5 Event” shall
have occurred. In the event that, prior to the expiration of such 35-day period, either the Governance Committee votes against recommending to the Board the appointment and/or addition (as the case may be) of a Successor Director suggested by
Liberation Investments, or the Board votes on a resolution regarding such appointment and/or addition and fails to approve such resolution unanimously, then the Company shall so advise Liberation Investments promptly, it being understood that
neither such notice nor the matters referred to therein shall constitute a Section 1.5 Event. 
 1.6 If, as a result of the consummation
of a change in control of the Company that is, to the extent required by Applicable Legal Requirements, approved by the Board and/or the shareholders of the Company (a “Change of Control”), the directors who comprised the Board
immediately prior to the consummation of the Change of Control cease to have the legal ability to determine (dispositively or at all) the composition of the Board or the 2007 Slate (as the case may be), then, to the extent any of the Company’s
obligations under this Section 1 remain executory, such obligations shall cease to apply, it being understood, for the avoidance of doubt, that (a) nothing in this Agreement shall prohibit a Change of Control, and (b) the consummation
of a Change of Control shall not affect any action taken by, or impair any other agreement made, by any of the Parties pursuant hereto. 
 2. STRATEGIC REVIEW 
 2.1 In connection with the Board’s ongoing review of prospective
opportunities to enhance shareholder value with the advice of Bear, Stearns & Co. Inc (“Bear Stearns,” which term shall include any successor financial advisor) as exclusive financial advisor to the Company and the input of
the Company’s Chief Executive Officer and other members of the Company’s senior management (the “Strategic Review”), the Company represents and warrants to the other Parties that the Board, in connection with its approval
of this Agreement and subject to Full Execution, has resolved (a certified true and complete copy of which resolution has been furnished to the other Parties): (a) to create a special committee of the Board to be called the Strategic Review
Committee, for the purpose, through the Standstill Period, of (1) overseeing the Strategic Review on behalf of the Board, (2) interacting with Bear Stearns, the Company’s Chief Executive Officer and Chief Financial Officer, the
Company’s legal advisers and such other parties as it determines appropriate, for the purpose of advancing the Strategic Review, and (3) reporting to, and receiving direction from, the Board at such times as the Board determines
appropriate, or the Strategic Review Committee requests, regarding the progress of the Strategic Review and any recommendations resulting therefrom; (b) to designate as members of the Strategic Review Committee, for so long as they are willing
to serve during the Standstill Period, the current Chairman of the Board and Mr. Pearlman; and (c) to provide that (1) subject to the 
  

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 Strategic Review Committee’s rights to determine its own internal procedures, to meet in executive session and to
communicate telephonically (in the course of a meeting) without notice to any other person), all other members of the Board shall be given notice (to the extent reasonably practicable) of, and the right to attend, meetings of the Strategic Review
Committee, and (2) the participation (in person or telephonically) of both members of the Strategic Review Committee shall be required to constitute a meeting of the Strategic Review Committee. 
 2.2 Consistent with the Company’s existing commitment to update investors quarterly regarding the Strategic Review, the Company shall, to the full
extent consistent with Applicable Legal Requirements and except to the extent (if any) determined by the Board, after consulting with the Strategic Review Committee, to be unnecessary by reason of any intervening events occurring after the date
hereof or to be required by Applicable Legal Requirements to be publicly disclosed earlier, present an update of the status of the Strategic Review at the investor call to be convened by the Company in conjunction with the public release of the
Company’s financial results for the fiscal year ending September 30, 2006, which call (the “Investor Call”) shall be publicly noticed and held as soon as such financial results are available on or before December 15,
2006. The content of such update shall be determined by the Board after consultation with the Strategic Review Committee. 
 3. ACTIONS BY LIBERATION INVESTMENTS 
 3.1 Liberation Investments hereby agrees to discontinue immediately all actions
seeking to call the Special Meeting and pursue the Proposals. 
 3.2 So long as the Company is not in breach of this Agreement, during the
Standstill Period neither Liberation Investments nor any Affiliate or Associate thereof whose actions Liberation Investments is in a position to direct shall take any actions (directly or indirectly) to solicit proxies for, or otherwise promote, the
Proposals (whether by press release, SEC filings, communications with individual stockholders of the Company, contacts with the media or otherwise). For the purposes of this Agreement, the “Standstill Period” shall be the period
commencing on Full Execution and ending at 12 Midnight, Central time, on the earliest of: (a) October 31, 2007; (b) the date of occurrence of a Section 1.5 Event; or (c) if both of the New Directors (including for this
purpose any Successor Director theretofore appointed to the Board and/or named to the 2007 Slate), whether or not at the same time as the other, either (1) decline to be included in the 2007 Slate or (2) resign from the Board for any
reason prior to the holding of the vote on the election of directors at the 2007 Annual Meeting, the date of the holding of such vote or, if earlier, April 30, 2007; provided, however, that if, after both New Directors (including for
this purpose any Successor Director theretofore appointed to the Board and/or named to the 2007 Slate), so decline under subclause (1) or so resign under subclause (2) and, Liberation Investments chooses to suggest Successor Directors
under the procedure specified in Section 1.5 hereof, then (A) during the 35-day period specified in said Section 1.5, measured from the Company’s first receipt from Liberation Investments of suggested Successor Directors
following such Succession Event, the Standstill Period shall continue in effect, and (B) if, prior to the expiration of such 35-day period, the Board has, consistent with the Resolution, appointed two Successor Directors to fill the vacancies
created and/or named two Successor Directors to the 2007 Sale then the Standstill Period shall continue in effect, in each of cases (A) and (B) until the earlier of the dates and times set forth in clauses (a) or (b) of this
Section 3.4, as applicable. 
  

 5 

 3.3 So long as the Company is not in breach of this Agreement, if either of the New Directors (including
for this purpose any Successor Director theretofore appointed to the Board) agrees to be included in the 2007 Slate, Liberation Investments shall not make any public announcement (whether by press release, SEC filings, contacts with the media or
otherwise) regarding its intention as to how it will vote, or cause to be voted, any Company Voting Securities Beneficially owned by it with respect to the election of the members of the 2007 Slate to the Board at the 2007 Annual Meeting;
provided, however, that it may disclose such intention in an amendment to its Schedule 13D filing (the “Liberation Investments Schedule 13D”) if (a) it determines after consulting with its counsel, that it is
required to do so under Applicable Legal Requirements, (b) such disclosure expressly disclaims any intention to influence the voting decision of any other shareholder of the Company with respect to such election, and (c) such disclosure
does not violate any other provision of this Agreement; and further provided, that Liberation Investments shall be free to vote, or cause to be voted, all Company Voting Securities Beneficially owned by it in any manner it chooses, or
any matter submitted to stockholders for their vote. 
 3.4 So long as the Company is not in breach of this Agreement, during the Standstill
Period neither Liberation Investments nor any Affiliate, Associate, authorized employee or authorized professional advisor thereof whose actions Liberation investments is in a position to direct shall, unless specifically invited in writing by the
Company: (a) publicly effect or seek, or publicly offer or propose to effect, (1) any acquisition, issuance or disposition of any securities (or beneficial ownership thereof) or assets of the Company or any of its subsidiaries,
(2) any tender or exchange offer, merger or other business combination involving the Company or any of its subsidiaries, (3) any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to
the Company or any of its subsidiaries, (4) any acquisition of the securities or assets of any other business enterprise by the Company or any of its subsidiaries, or (5) any “solicitation” of “proxies” (as such terms
are used in the proxy rules of the SEC); (b) form, join or in any way participate in a “group” (as defined under the 1934 Act) with respect to the Company (other than solely among the Liberation Investments Parties);
(c) otherwise act, alone or in concert with others, to seek to control the management, the Board or the policies of the Company, including, without limitation, by (i) initiating or instituting a stockholder solicitation for any such
purpose, or (ii) except as permitted by this Agreement, nominating or causing others to nominate or otherwise seeking to elect directors of the Company other than those nominated by the Board; (d) enter into any discussions or arrangements
with any third party with respect to any of the foregoing (it being understood that this clause (d) shall not prohibit private discussions with any third party with respect to any of the foregoing nor the referral to Bear Stearns by Liberation
Investments of third parties that might pursue any of the matters referred to this Section 3.4); (e) request the Company to amend, waive or terminate any provision of this Agreement (including this sentence); or (f) knowingly seek to
influence the decisions or actions of any non-executive-officer employees, customers, suppliers or regulators of the Company, in their capacities as such, in relation to their respective relationships with the Company. Notwithstanding anything to
the contrary in this Section 3.4: (i) in the event that a third party publicly takes any action of the kind that, if taken by Liberation Investments, would be a violation of subclauses (a)(1), (a)(2), (a)(3) or (a)(4) of the
immediately preceding sentence, and neither Liberation Investments nor any of such Affiliates, Associates, authorized employees or authorized professional advisors has theretofore breached its obligations under this Agreement, none of such
subclauses nor clauses (b) and (d) of this Section 3.4 shall restrict any 
  

 6 

 actions that Liberation Investments or its applicable Affiliates, Associates, authorized employees or authorized
professional advisors might wish to take in response to, or in connection with, such third party’s public actions provided such actions do not violate subclause (a)(5) of this Section 3.4; (ii) the exercise by either New Director
of his rights, or fulfillment of his obligations, as a member of the Board or any committee thereof while he is serving thereon shall not be a violation of this Section 3.4; and (iii) nothing in this Section 3.4 shall prohibit
(A) a proposal that would otherwise be prohibited provided it is made confidentially to the Board, or any individual director or executive officer of the Company, (B) Liberation Investments, or any Affiliate, Associate, authorized employee
or authorized professional advisor thereof whose actions Liberation Investments is in a position to direct, from entering into any open market or privately negotiated acquisition or disposition of any securities of the Company, (C) public
disclosure contained in any amendment to the Liberation Investments Schedule 13D that Liberation determines, after consulting with its counsel, is required to be filed with the SEC under Applicable Legal Requirements (and the matters disclosed
thereby shall not be a breach of this Section 3.4) provided the contents of said amendment do not themselves constitute the taking of any action which is otherwise prohibited by clauses (a) through (f) of this Section 3.4, or
(D) Liberation Investment or any Affiliate, Associate, authorized employee or authorized professional advisor thereof whose actions Liberation Investments is in a position to direct from advocating (publicly or otherwise), following the
conclusion of the Investor Call, that the Company pursue and evaluate specific alternatives to maximize shareholder value, including the types of transactions referred to this Section 3.4. 
 4. SPECIAL RELEASES, COVENANTS NOT TO SUE, AND INDEMNIFICATION 
 4.1 The Company: (a) fully releases, remises, exonerates and forever and unconditionally discharges the Liberation Investments Parties and each of
their Affiliates, Associates, representatives, employees, agents and advisors (each, a “Stockholder Releasee”) from any and all liability and responsibility for any and all Company Claims (as hereinafter defined); and
(b) covenants and agrees not to participate in, commence or permit (to the extent within its control) the assertion or commencement of any demand, allegation, litigation, proceeding or action relating to any Company Claim, and not to encourage,
assist or cooperate with any other Person in pursuing or asserting any Company Claim, against any Stockholder Releasee. As used in this Agreement, “Company Claim” means any actual or alleged liability, claim, action, suit, cause of
action, obligation, debt, controversy, promise, contract, lien, judgment, account, reckoning, bond, bill, covenant, agreement, demand of any kind or nature, loss, cost, damage, penalty or expense (including, without limitation, reasonable
attorneys’ fees and expenses, and the costs of investigation and litigation), whether in law or in equity, whether known or unknown, whether matured or unmatured and whether foreseen or unforeseen, that the Company may or could have had or now
or hereafter may have, for, upon, or by reason of, any matter, cause or thing whatsoever resulting from, arising out of, relating to, connected in any way with, or alleged, suggested or mentioned in connection with (in each case, other than this
Agreement) (i) the Proxy Contest, or (ii) any action taken, or statement made, in connection with the Proxy Contest. 
 4.2 Each of
the Liberation Investments Parties: (a) fully releases, remises, exonerates and forever and unconditionally discharges the Company and each of its Affiliates, Associates, representatives, employees, agents and advisors (each, a “Company
Releasee”) from any and all 
  

 7 

 liability and responsibility for any and all Stockholder Claims (as hereinafter defined); and (b) covenants and
agrees not to participate in, commence or permit (to the extent within its respective control) the assertion or commencement of any demand, allegation, litigation, proceeding or action relating to any Stockholder Claim, and not to encourage, assist
or cooperate with any other Person in pursuing or asserting any Stockholder Claim against any Company Releasee. As used in this Agreement, “Stockholder Claim” means any actual or alleged liability, claim, action, suit, cause of
action, obligation, debt, controversy, promise, contract, lien, judgment, account, reckoning, bond, bill, covenant, agreement, demand of any kind or nature, loss, cost, damage, penalty or expense (including, without limitation, reasonable
attorneys’ fees and expenses, and the costs of investigation and litigation), whether in law or in equity, whether known or unknown, whether matured or unmatured and whether foreseen or unforeseen, that any Liberation Investments Party may or
could have had or now or hereafter may have, for, upon, or by reason of, any matter, cause or thing whatsoever resulting from, arising out of, relating to, connected in any way with, or alleged, suggested or mentioned in connection with (in each
case, other than this Agreement) (i) the Proxy Contest, or (ii) any action taken, or statement made, in connection with the Proxy Contest. 
 4.3 The Company expressly acknowledges that each Stockholder Releasee other than Liberation Investments is an intended third party beneficiary of its release and covenant contained in Section 4.1. Liberation
Investments acknowledges that each Company Releasee other than the Company is an intended third party beneficiary of its release and covenant contained in Section 4.2. Each Party acknowledges that any claim determined, in a final nonappealable
judgment or order of a court of competent jurisdiction, to have been based primarily on intentional fraud shall not be released under this Section 4. 
 5. CERTAIN REPRESENTATIONS AND WARRANTIES 
 5.1 The Company represents and warrants to each of the other Parties that: (a) the Company’s execution, delivery and performance of this Agreement have been approved by the Board and do not violate its
Amended and Restated Articles of Incorporation, its Amended and Restated Bylaws, the Texas Business Corporation Act or any agreement to which it is a party; and (b) this Agreement constitutes the Company’s valid and binding obligation,
enforceable against it in accordance with the terms thereof. 
 5.2 Each of the Liberation Investments Parties represents and warrants to the
Company that: (a) if the Liberation Investments Party making such representation and warranty is not a natural person, its execution, delivery and performance of this Agreement has been approved by its respective general partner, managing
member, board of directors, trustee or other governing body or authority, as the case may be, and does not violate its respective organizational or constituent documents nor the laws pursuant to which it has been incorporated or organized
(b) its execution, delivery and performance of this Agreement does not violate any agreement to which it is a party; (c) this Agreement constitutes its valid and binding obligation, enforceable against it in accordance with the terms
thereof; (d) it has consulted with counsel of its choice in connection with its decision to enter into and be bound by this Agreement; and (e) Recital A to this Agreement is a true statement of the aggregate number of Company Voting
Securities Beneficially owned by Liberation Investments and, to its best knowledge, after due inquiry, none of its respective Affiliates Beneficially owns any other Company Voting Securities. 
  

 8 

 6. CERTAIN ANNOUNCEMENTS AND OTHER DISCLOSURES 
 6.1 As soon as reasonably practicable on, or on the business day following, Full Execution: (a) the Company shall issue a press release in the form
of Exhibit A to this Agreement (the “Press Release”); (b) the Company shall file with the SEC a Current Report on Form 8-K to disclose this Agreement in a manner consistent, in all material respects, with the Press
Release and this Agreement, the contents of which Current Report shall be subject to the approval of each of the other Parties (not to be unreasonably withheld); and (c) Liberation Investments shall file with the SEC an amendment to the
Liberation Investments Schedule 13D to disclose this Agreement in a manner consistent, in all material respects, with the Press Release and this Agreement, the contents of which Schedule 13D amendment shall be subject to the approval of
the Company (not to be unreasonably withheld). 
 6.2 During the Standstill Period, no Party shall make any public statement (including any
statement in a filing with the SEC or any other governmental agency) disparaging any other Party or this Agreement. 
 6.3 Any public
statement (including any statement in any filing with the SEC or any other governmental agency) by any Party regarding this Agreement or any event occurring prior to the date of this Agreement that is not otherwise prohibited by this Section 6
shall be made in compliance with applicable securities laws and consistently with any fiduciary duties such Party owes to the Company. 
 7. CERTAIN DEFINITIONS 
 In addition to the other definitions contained elsewhere in this Agreement,
the following terms shall have the meanings specified below for the purposes hereof: 
 “Affiliate” and
“Associate” have the respective meanings set forth in the rules promulgated by the SEC under the 1934 Act, it being agreed that neither of the New Directors, solely by reason of his status as a Party or as a New Director, shall be
deemed an Affiliate or Associate of Liberation Investments. 
 “Beneficially own” has the meaning set forth in Rule 13d 3
promulgated under the 1934 Act; provided, however, that for purposes of this Agreement, any option, warrant, right, conversion privilege or arrangement to purchase, acquire or vote Company Voting Securities, regardless of the time
period during, or the time at which, it may be exercised, and regardless of the consideration paid, shall be deemed to give the holder thereof beneficial ownership of the Company Voting Securities to which it relates. 
 “Company Voting Securities” means all classes of capital stock of the Company which are then entitled to vote generally in the election
of directors and any securities exchanged for such classes of capital stock and any securities convertible into or exchangeable or exercisable for such classes of capital stock. 
  

 9 

 “1934 Act” means the Securities Exchange Act of 1934, as amended, and the regulations
promulgated by the SEC under such statute. 
 “Person” means a natural person or any legal, commercial or governmental
entity, including, but not limited to, a corporation, partnership, joint venture, trust, limited liability company, group acting in concert or any person acting in a representative capacity. 
 8. MISCELLANEOUS 
 8.1 This Agreement constitutes the entire agreement of the Parties with respect to its subject matter and supersedes any and all prior representations, agreements or understandings, whether written or oral, between or among any of them with
respect to such subject matter. This Agreement may be amended only by a written agreement duly executed by the Parties. 
 8.2 This Agreement
shall be governed by, and construed in accordance with, the laws of the State of Texas without regard to its conflict of law principles. Exclusive jurisdiction to resolve any dispute arising under or in connection with this Agreement is hereby
conferred on the courts of the State of Texas for Travis County or, if the dispute involves issues of federal law or over which the Courts of the State of Texas for lack or decline jurisdiction, on the United States Federal District Court for the
Western District of Texas. The Parties hereby submit to the exclusive jurisdiction of each of such courts for the resolution of any such dispute. 
 8.3 This Agreement may not be assigned by any Party without the prior written consent of the other Parties. This Agreement shall be binding upon, and inure to the benefit of, the respective successors and permitted assigns of the Parties.
Except as expressly set forth in Section 4, this Agreement shall confer no rights or benefits upon any Person other than the Parties. 
 8.4 Any waiver by any Party of a breach of any provision of this Agreement shall not be deemed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. 
 8.5 This Agreement may be executed in counterparts, each of which shall constitute an original but all of which shall together constitute a single
instrument. 
 8.6 Liberation Investments shall use its commercially reasonable efforts to cause those of its Affiliates whose actions it is
in a position to direct to comply with Sections 3 and 4 of this Agreement. 
 8.7 Each of the other Liberation Investments Parties hereby
appoints Mr. Pearlman as the authorized representative of such Liberation Investments Party for all purposes of this Agreement (including, without limitation, the giving of binding approvals and waivers) and the Company shall be entitled to
deal with Mr. Pearlman accordingly. 
  

 10 

 8.8 The Parties agree that irreparable damage would occur and the Parties would not have any adequate
remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Parties shall be entitled to (i) an injunction or
injunctions to prevent breaches of this Agreement and to (ii) specific performance of the terms hereof, this being in addition to any other remedy to which they are entitled at law or in equity. 
 [REST OF PAGE INTENTIONALLY LEFT BLANK] 
  

 11 

 IN WITNESS WHEREOF, this Agreement has been executed by each of the Parties, through their respective
duly authorized representative, as of the date first above written. 
  

									
	MULTIMEDIA GAMES, INC.	 		 	LIBERATION INVESTMENTS, L.P.
					
	By:	 	 /s/ Clifton E. Lind
	 		 	By:	 	Liberation Investment Group LLC,
		 	Clifton E. Lind	 		 		 	General Partner
		 	President and Chief Executive Officer	 		 		 	
		 	 		 	By:	 	 /s/ Emanuel R. Pearlman

		 		 		 		 	Emanuel R. Pearlman
		 		 		 		 	Chief Executive Officer
				
		 		 		 	LIBERATION INVESTMENTS LTD.
					
		 		 		 	By:	 	 /s/ Emanuel R. Pearlman

		 		 		 		 	 Emanuel R. Pearlman
 Director

				
		 		 		 	LIBERATION INVESTMENTS GROUP LLC.
					
		 		 		 	By:	 	 /s/ Emanuel R. Pearlman

		 		 		 		 	 Emanuel R. Pearlman
 Chief Executive
Officer

				
		 		 		 	 /s/ Emanuel R. Pearlman

		 		 		 	Emanuel R. Pearlman
				
		 		 		 	 /s/ Neil E. Jenkins

		 		 		 	Neil E. Jenkins

  

 12 

 EXHIBIT A 
 FORM OF PRESS RELEASE 
 (SECTION 6.1) 
  

					
	 MULTIMEDIA GAMES, INC.
 For more information
contact:
 Cliffton Lind
 President and CEO
 Randy Cleslewicz
 Interim CFO
 Multimedia Games, Inc.
 512-334-7500
	 	 [MULTIMEDIA GAMES
 Logo]
  
  
  
	 	 PRESS RELEASE
  
 Joseph N. Jaffoni
 Richard Land
 Jaffoni & Collins Incorporated
 212-835-8500
or mgam@cir.com

 MULTIMEDIA GAMES AND LIBERATION INVESTMENTS 
 RESOLVE PROXY CONTEST; SPECIAL SHAREHOLDERS’ 
 MEETING WILL NOT BE HELD 
 Two New Independent Directors Added to the Multimedia Board

 and Search to be Initiated for an Additional Independent Director 
 Board Forms Special Committee to Oversee Ongoing Strategic Review 
 AUSTIN, Texas — October
    , 2006 — Multimedia Games, Inc (NASDAQ: MGAM) and Liberation Investments, an 8.4% stockholder of Multimedia, announced today that the companies have entered into an agreement to add two new independent directors
to Multimedia’s Board of Directors – Emanuel R. Pearlman and Neil E. Jenkins. In addition, Mr. Pearlman will be added to a newly formed two-person Strategic Review Committee. 
 Liberation Investments previously announced it would solicit requests to call a special meeting of Multimedia’s shareholders to replace a majority of the current
directors with its designees and adopt related proposals relating to the size and composition of the Board. Under the agreement, the proxy contest has been withdrawn and the special meeting will not be held. 
 Under the agreement, which Multimedia will file with the SEC in the near future, Multimedia’s Board has been expanded from five to six directors, and
Mr. Pearlman and Mr. Jenkins have been added. These new directors will, if they choose, be included on the Board’s slate of nominees for the 2007 Annual Meeting of Shareholders, to be held by April 30, 2007 or as soon thereafter
as legally practicable. The two new directors were recommended to Multimedia by Liberation Investments. 
 To facilitate the addition of Messrs. Pearlman and
Jenkins to a board of six, Thomas W. Sarnoff, Multimedia’s longest-serving current director and its former Chairman, has resigned from the Board. Multimedia has entered into an agreement that provides for Mr. Sarnoff’s services
as a consultant for eighteen months at a fee commensurate with the annual fees currently paid to Multimedia’s directors. 
  

 A-1 

 “The current directors want to take this opportunity to express their sincere appreciation to Tom
for his years of valuable service, as well as his graciousness in making way for the new directors as part of this contractual resolution. We are pleased we will have continued access to his valuable advice and assistance,” said Michael J.
Maples, Sr., the Board’s Chairman, and Clifton E. Lind, President and CEO. 
 “We look forward to working with Messrs. Pearlman and
Jenkins in continuing to build shareholder value and we are confident their backgrounds and experience will complement the skills of our continuing directors,” Messrs Maples and Lind added. 
 Mr. Pearlman is the founder and Chief Executive Officer of Liberation Investment Group, a New York-based investment management firm. Previously, Mr. Pearlman
served as Chief Operating Officer of Vornado Operating Corporation. Prior to that, Mr. Pearlman served as a consultant and advisor to the executive management of several publicly-traded gaming companies. 
 Mr. Jenkins is currently Executive Vice President, Secretary and General Counsel of Lawson Products, Inc., a NASDAQ company headquartered in Des Plaines, Illinois.
He is a 22 year veteran of the gaming machine, casino and lottery businesses, having served as Executive Vice President and General Counsel of the former Bally Manufacturing Corporation and Bally Gaming International, Inc. Mr. Jenkins was
a member of the board of trustees of the International Association of Gaming Attorneys for 9 years and has been a director of two public companies. 
 The agreement also provides for Multimedia’s Nominating and Corporate Governance Committee to engage an executive search firm to identify an additional qualified independent director. All shareholders are welcome to submit suggestions
for candidates to the Corporate Secretary, consistent with the communication policy described in the Company’s March 2, 2006 proxy statement on file with the SEC. 
 In connection with the agreement, the Board has adopted a standing resolution that requires a unanimous board decision to increase the number of directors or fill any vacancy (other than to appoint a successor to
Mr. Pearlman or Mr. Jenkins suggested by Liberation Investments under the circumstances specified in the agreement) so long as certain restrictions governing the actions of Liberation Investments remain in effect. These restrictions will
apply until October 31, 2007. However, the restrictions will terminate on the date of the holding of the vote on the election of directors at the 2007 annual meeting of stockholders or, if earlier, April 30, 2007, if both of Messrs.
Pearlman and Jenkins (or any successor suggested by Liberation Investments who replaces either of them under the circumstances specified in the agreement) decline to be included in the 2007 slate of nominees or resign from the Board for any reason
prior to the holding of that vote. In addition, the restrictions will terminate if Mr. Pearlman or Mr. Jenkins ceases to be a member of the Board or declines to be included in the 2007 slate for reasons specified in the agreement and an
independent qualified independent replacement suggested in good faith by Liberation Investments to the Multimedia Nominating and Governance Committee has not been appointed to the Board and/or added to the 2007 slate within 35 days of the suggestion
being made. 
  

 A-2 

 Under the agreement, the Board has also formed a special Strategic Review Committee to oversee the Board’s ongoing
review of prospective opportunities to enhance shareholder value, which was initiated earlier this year partly in response to a suggestion from Liberation Investments. Bear Stearns & Co., Inc., as previously announced, is serving as
Multimedia’s exclusive financial advisor for that review. The Strategic Review Committee will be comprised of Mr. Maples and Mr. Pearlman. The Committee will oversee the strategic review process on behalf of the Board and will
interact with Bear Stearns, Mr. Lind and Multimedia’s chief financial officer for the purpose of advancing the review. The Committee will report to, and receive direction from, the Board, all of whose members will be invited to its
meetings except where the Committee chooses to meet in executive session. 
 In connection with its investor call in conjunction with the release of
financial results for the fiscal year ending September 30, 2006, Multimedia will, as previously committed, provide an update on the status of the strategic review on or before December 15, 2006, unless intervening events make that update
unnecessary. There is no assurance as to any outcome from the strategic review process. 
 About the Company

 Multimedia Games is a leading developer and supplier of comprehensive systems, content, electronic games and player terminals for the Native American
gaming market, as well as the casino, charity and international bingo, video lottery, and sweepstakes markets. The Company’s ongoing development and marketing efforts focus on gaming systems and products for use by Native American tribes
throughout the United States, the commercial casino market, video lottery systems and other products for domestic and international lotteries, and products for charity and international bingo and emerging markets, including sweepstakes, promotional,
amusement with prize, and coupon gaming opportunities. Additional information may be found at www.multimediagames.com. 
 Cautionary Language 
 This press release contains forward-looking statements regarding the role of Multimedia’s Board of Directors, as
reconstituted, in building shareholder value and the ongoing strategic review process that has been undertaken by the Board and will be overseen by its Strategic Review Committee. These forward-looking statements are subject to various risks and
uncertainties that could materially affect these matters. A number of risks and uncertainties relating to Multimedia’s business, operations and financial results were set forth in its press release dated August 8, 2006, which was filed
with the Securities and Exchange Commission as an Exhibit to its Current Report on Form 8-K dated August 14, 2006. Other important risks and uncertainties that may affect the Company’s business, as well as the outcome of its
Board’s strategic review process, are detailed from time to time in the “Certain Risks” and “Risk Factors” sections and elsewhere in its Securities and Exchange Commission filings. Multimedia disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 
  

 A-3

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