Document:

CREDIT AGREEMENT

                          ($5,000,000 Subordinate Debt)

         This Credit Agreement (the "Agreement") is entered into as of the 31st
day of May, 2001, by and between INTERLOTT TECHNOLOGIES, INC., a Delaware
corporation, ("Borrower") and FIFTH THIRD BANK, an Ohio banking corporation,
located at 38 Fountain Square Plaza, Cincinnati, Ohio 45263 ("Bank").

Section 1.        Definitions.

         Certain capitalized terms have the meanings set forth on Exhibit 1
hereto. All financial terms used in this Agreement but not defined on Exhibit 1
have the meanings given to them by generally accepted accounting principles as
in effect on the date hereof. All other undefined terms have the meanings given
to them in the Ohio Uniform Commercial Code.

Section 2.        Loans.

         2.1      Term Loan.

                    (a)  Bank  agrees,  subject  to  the  terms  and  conditions
                         hereinafter  set forth,  to make a term loan (the "Term
                         Loan") to Borrower on the date of this Agreement in the
                         amount of $5,000,000.  Borrower's obligation to pay the
                         Term Loan will be evidenced by its promissory note (the
                         "Term Note") in  substantially  the form of Exhibit 2.1
                         attached  hereto.  The Term Note will be dated the date
                         of this Agreement.

                    (b)  Interest  will  accrue on the  principal  amount of the
                         Term Note at the rate of 12% per annum.  Interest  only
                         payments will be made in immediately available funds at
                         the principal office of the Bank in accordance with the
                         terms of the Term Note. The entire  principal amount of
                         the Term Note, plus all accrued and unpaid interest and
                         any other charges, advances or fees required to be paid
                         hereunder, will be due and payable on June 30, 2003.

                    (c)  The  proceeds  of the Term Loan will be used to finance
                         the   acquisition   of  certain   assets  of   On-Point
                         Technology  Systems,  Inc. ("On Point"),  and for other
                         general corporate matters .

                    (d)  The   indebtedness   evidenced  by  the  Term  Note  is
                         expressly  subject  to  the  terms  of  a  Standby  and
                         Subordination   Agreement   by  and  between  Bank  and
                         Borrower  of even date  herewith  in the form  attached
                         hereto as Exhibit 2.1(d).

         2.2      Time of  Payment.  All  payments  of  principal  and  interest
made by Borrower shall be made no later than 2:00 P.M., on the Business Day such
payments  are due.  All  amounts  paid after such time will be  credited  on the
following date.

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         2.3 Prepayment. Borrower may prepay any portion of the Term Loan
without premium or penalty but only if: (a) Borrower is in full compliance with
the Senior Debt Credit Facility, and (b) all pre-payments are made in increments
of $500,000, and (c) all pre-payments are made not earlier than 40 days after
the close of each fiscal quarter, and not later than 50 days after the close of
each fiscal quarter, commencing on September 30, 2001.

         2.4      Fees.

                    (a)  Closing  Fee:  Borrower  will pay to Bank,  a one-time,
                         non-refundable closing fee (the "Closing Fee") equal to
                         2% of the face amount of the Note,  being  $100,000.00,
                         due and payable upon execution of this Agreement.

                    (b)  Success Fee: On the date which is  fifty-one  (51) days
                         after the end of each fiscal  quarter,  Borrower  shall
                         pay to Bank a  success  fee  equal to 1% of the  unpaid
                         principal  balance of the Note  outstanding on the last
                         day of the  fiscal  quarter  for  each of the  four (4)
                         fiscal quarters ending on September 30, 2001,  December
                         31, 2001,  March 31, 2002, and June 30, 2002; and equal
                         to 1.5% of the  unpaid  principal  balance  of the Note
                         outstanding  on the last day of the fiscal  quarter for
                         each  of  the  four  (4)  fiscal   quarters  ending  on
                         September 30, 2002,  December 31, 2002, March 31, 2003,
                         and June 30, 2003 (the "Success Fee").

                    (c)  Reimbursement of Expenses: On the date hereof, Borrower
                         will reimburse Bank for all of its reasonable costs and
                         expenses   incurred  in   negotiating,   reviewing  and
                         preparing  this  Agreement,  the Note,  the other  Loan
                         Documents   and  all  other   documents   required   to
                         consummate  the   transactions   contemplated   hereby,
                         including  but not  limited  to  attorney's  and  other
                         professional's fees.

Section 3.        Representations And Warranties.

         Except as set forth on the Disclosure Schedule attached as Exhibit 3 to
the Senior Debt Credit Facility or the legal opinion of Taft, Stettinius &
Hollister provided to Bank in connection herewith , Borrower hereby warrants and
represents to Bank the following:

         3.1 Organization and Qualification. Borrower is a duly organized,
validly existing corporation in good standing under the laws of the State of
Delaware, has the power and authority (corporate and otherwise) to carry on its
business and to enter into and perform this Agreement, the Term Note and the
other Loan Documents, is qualified and licensed to do business in each
jurisdiction in which failure to be so qualified or licensed would have a
material adverse effect on the Borrower. All information provided by Borrower to
Bank with respect to Borrower and its operations is true and correct in all
material respects.

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         3.2. Due Authorization. The execution, delivery and performance by
Borrower of this Agreement, the Term Note and the other Loan Documents have been
duly authorized by all necessary corporate action, and will not contravene any
law or any governmental rule or order binding on Borrower, or the certificate of
incorporation or bylaws of Borrower, nor violate any agreement or instrument by
which Borrower is bound except any anti-assignment clause in a Lease or other
contract with any lottery (if any) nor result in the creation of a Lien on any
assets of Borrower except the Lien granted to Bank herein. Borrower has duly
executed and delivered this Agreement, the Term Note and the other Loan
Documents and they are valid and binding obligations of Borrower enforceable
according to their respective terms except as limited by equitable principles
and by bankruptcy, insolvency or similar laws affecting the rights of creditors
generally. No notice to or consent by any governmental body is needed in
connection with the transaction, except as required by any Lease or other
contract with any lottery.

         3.3.     Litigation.  There  are  no  suits  or  proceedings  pending
or threatened against Borrower,  and no proceedings before any governmental body
are pending or threatened against Borrower.

         3.4 Margin Stock. No part of the Loans will be used to purchase or
carry, or to reduce or retire or refinance any credit incurred to purchase or
carry, any margin stock (within the meaning of Regulations U and X of the Board
of Governors of the Federal Reserve System) or to extend credit to others for
the purpose of purchasing or carrying any margin stock. If requested by Bank,
Borrower will furnish to Bank statements in conformity with the requirements of
Federal Reserve Form U-1.

         3.5 Business. Borrower is not a party to or subject to any agreement or
restriction which in the opinion of Borrower's management is so unusual or
burdensome that it might have a material adverse effect on Borrower's business,
properties or prospects.

         3.6 Licenses, etc.. Borrower has obtained any and all licenses,
permits, franchises, governmental authorizations, patents, trademarks,
copyrights or other rights necessary for the ownership of its properties and the
advantageous conduct of its business. Borrower possesses adequate licenses,
patents, patent applications, copyrights, trademarks, trademark applications,
and trade names to continue to conduct its business as currently conducted by
it, without any conflict with the rights of any other person or entity. All of
the foregoing are in full force and effect and none of the foregoing are in
known conflict with the rights of others.

         3.7 Laws and Taxes. Borrower is in material compliance with all
material laws, regulations, rulings, orders, injunctions, decrees, conditions or
other requirements applicable to or imposed upon Borrower by any law or by any
governmental authority, court or agency. Borrower has filed all required tax
returns and reports that are now required to be filed by it in connection with
any federal, state and local tax, duty or charge levied, assessed or imposed
upon Borrower or its assets, including unemployment, social security, and real
estate taxes. Borrower has paid all taxes which are now due and payable except
for the current Arizona privilege tax dispute in which the disputed amount shall
not exceed $250,000.00. No taxing authority has asserted or assessed any

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additional tax liabilities against Borrower which are outstanding on the date of
this Agreement, and Borrower has not filed for any extension of time for the
payment of any tax or the filing of any tax return or report.

         3.8 Financial Condition. All financial information relating to Borrower
which has been or may hereafter be delivered by Borrower or on its behalf to
Bank fairly reflects the financial conditions or results of operations of
Borrower and has been prepared in accordance with generally accepted accounting
principles consistently applied except for internally prepared financial
information shall not include footnotes or year end adjustments. Borrower had at
the date of such financial statement no material obligations or liabilities of
any kind not disclosed in that financial information, and there has been no
material adverse change in the financial condition of Borrower nor has Borrower
suffered any material damage, destruction or loss which has adversely affected
its business or assets since the submission of the most recent Borrower's
financial statement by Borrower to Bank.

         3.9 Title. Borrower has good and marketable title to the assets
reflected on the most recent balance sheet submitted to Bank, free and clear
from all liens and encumbrances of any kind, except for (collectively, the
"Permitted Liens"): (a) current taxes and assessments not yet due and payable,
(b) liens and encumbrances, if any, reflected or noted on such balance sheet or
notes thereto, (c) assets disposed of in the ordinary course of business, (d)
any security interests, pledges, assignments or mortgages granted to Bank to
secure the repayment or performance of the Obligations, (e) normal easements or
rights of way or similar restrictions on real property which do not adversely
affect Borrower's use of said real estate, (f) ordinary arms length market
leases of Borrower's assets to third parties as reflected or noted on such
balance sheet or notes thereto, and (g) purchase money security interests or
capital leases permitted pursuant to Section 5.1 of this Agreement.

         3.10 Defaults. Borrower is in material compliance in the aggregate with
all material agreements applicable to it and there does not now exist any
material in the aggregate default or violation by Borrower of or under any of
the terms, conditions or obligations of (a) its Certificate of Incorporation or
Bylaws, or (b) any material indenture, mortgage, deed of trust, franchise,
permit, contract, agreement or other material instrument to which Borrower is a
party or by which it is bound, and the consummation of the transactions
contemplated by this Agreement will not result in such default or violation.

         3.11     Environmental Laws.

                  (a)      Borrower has obtained all material permits, licenses
                           and other authorizations or approvals which are
                           required under Environmental Laws and Borrower is in
                           compliance in all material respects with all terms
                           and conditions of the required permits, licenses,
                           authorizations and approvals, and is also in
                           compliance in all material respects with all other
                           limitations, restrictions, conditions, standards,
                           prohibitions, requirements, obligations, schedules
                           and timetables contained in the Environmental Laws.

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                    (b)  Borrower is not aware of, and has not  received  notice
                         of,  any past,  present or future  events,  conditions,
                         circumstances,    activities,   practices,   incidents,
                         actions or plans  which may  interfere  with or prevent
                         compliance  or  continued  compliance,  in any material
                         respect,  with Environmental  Laws, or may give rise to
                         any  material  common  law  or  legal   liability,   or
                         otherwise form the basis of any material claim, action,
                         demand,   suit,    proceeding,    hearing,   study   or
                         investigation,  based on or related to the manufacture,
                         processing,   distribution,  use,  treatment,  storage,
                         disposal,   transport  or  handling  or  the  emission,
                         discharge,  release  or  threatened  release  into  the
                         environment, of any pollutant,  contaminant,  chemical,
                         or industrial, toxic or hazardous substance or waste.

                    (c)  There is no civil,  criminal or  administrative  action
                         suit, demand, claim, hearing,  notice or demand letter,
                         notice  of  violation,   investigation   or  proceeding
                         pending or threatened against Borrower, relating in any
                         way to Environmental Laws.

         3.12     Subsidiaries  and  Partnerships.  Borrower  has no
subsidiaries  and is not a party to any  partnership  agreement or joint venture
agreement.

         3.13 ERISA. Borrower and all individuals or entities which along with
Borrower would be treated as a single employer under ERISA or the Internal
Revenue Code of 1986, as amended (an "ERISA Affiliate"), are in compliance in
all material respects with all of their obligations to contribute to any
"employee benefit plan" as that term is defined in Section 3(3) of the Employee
Retirement Income Security Act of 1974, and any regulations promulgated
thereunder from time to time ("ERISA"). Borrower and each of its ERISA
Affiliates are in compliance in all material respects with ERISA, and there
exists no event described in Section 4043(b) thereof ("Reportable Event").

Section 4.        Affirmative Covenants.

         4.1 Books and Records. Borrower will maintain proper books of account
and records and enter therein complete and accurate entries and records of all
of its transactions in accordance with generally accepted accounting principles
and give representatives of Bank access thereto at all reasonable times,
including permission to examine, copy and make abstracts from any such books and
records and such other information which might be helpful to Bank in evaluating
the status of the Loans as it may reasonably request from time to time. Borrower
will give Bank reasonable access to the Collateral and the other property
securing the Obligations for the purpose of performing examinations thereof and
to verify its condition or existence.

         4.2      Financial  Statements.  Borrower  will  maintain a standard
and modern system for accounting and will furnish to Bank:

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                    (a)  Within  forty-five  (45)  days  after  the  end of each
                         month,  a  copy  of  Borrower's   internally   prepared
                         financial statements for that month and for the year to
                         date in a form reasonably  acceptable to Bank, prepared
                         and  certified  as  complete  and  correct,  subject to
                         changes  resulting  from year-end  adjustments,  by the
                         principal financial officer of Borrower;

                    (b)  Within  ninety  (90) days after the end of each  fiscal
                         year, a copy of  Borrower's  financial  statements  for
                         that year  audited by a firm of  independent  certified
                         public accountants acceptable to Bank (which acceptance
                         will not be unreasonably withheld),  and accompanied by
                         a standard  audit opinion of such  accountants  without
                         qualification;

                    (c)  All of the statements  referred to in (a) and (b) above
                         shall  be  in  conformance   with  generally   accepted
                         accounting   principles   except   that  in  regard  to
                         financial   statements   delivered  under  4.2(a)  such
                         financial  statements  shall not have footnotes or year
                         end adjustments;

                    (d)  With the statements  submitted under (a) and (b) above,
                         a  certificate  in the form as set forth in Exhibit 4.2
                         (d) to the Senior  Debt Credit  Facility  signed by the
                         principal financial officer of Borrower, (i) stating he
                         is  familiar  with all  documents  relating to Bank and
                         that no Event of Default  specified in this  Agreement,
                         nor any event  which upon  notice or lapse of time,  or
                         both would  constitute  such an Event of  Default,  has
                         occurred,  or if any such condition or event existed or
                         exists,   specifying  it  and  describing  what  action
                         Borrower  has taken or  proposes  to take with  respect
                         thereto,  and (ii)  setting  forth,  in  summary  form,
                         figures  showing  the  financial  status of Borrower in
                         respect of the financial restrictions contained in this
                         Agreement;

                    (e)  Prior  to the  end of each  fiscal  year,  a  projected
                         income  statement and projected  statement of cash flow
                         for the  subsequent  fiscal year prepared in accordance
                         with   generally   accepted    accounting    principles
                         consistently applied;

                    (f)  Immediately  upon any  CFO,  CEO,  COO or other  senior
                         officer that deals with the Credit Agreement and or the
                         Loan  Documents  of Borrower  ("Responsible  Officer of
                         Borrower")  obtaining  knowledge  of any  condition  or
                         event which  constitutes  or,  after notice or lapse of
                         time or  both,  constitutes  an  Event  of  Default,  a
                         certificate  of such person  specifying  the nature and
                         period  of  the  existence  thereof,  and  what  action
                         Borrower  has taken or is taking or proposes to take in
                         respect thereof;

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                    (g)  Upon  request,  copies of all federal,  state and local
                         income tax returns and such other  information  as Bank
                         may reasonably request, including but not limited to, a
                         listing  of  all   transactions   with   affiliates  of
                         Borrower;

                    (h)  On the date  hereof  and  within  forty-five  (45) days
                         after the end of each  calendar  month,  Borrower  will
                         deliver to Bank a Collateral  Report in the form as set
                         forth in  Exhibit  4.2(h)  to the  Senior  Debt  Credit
                         Facility and Account  Receivable  Aging  Reports in the
                         form regularly used by Bank's commercial loan customers
                         provided however if Borrower's monthly  availability on
                         average for the prior calendar month is on average less
                         than  $1,000,000.00  then Bank may require and Borrower
                         shall provide  Collateral  Reports more frequently (but
                         not more  frequently than weekly) as requested by Bank;
                         and

                    (i)  With  all  financial  statements  delivered  to Bank as
                         provided in (a) and (b) above,  Borrower  shall deliver
                         to Bank a Compliance  Certificate  in the form attached
                         to the Senior  Debt Credit  Facility as Exhibit  4.2(d)
                         confirming,  in addition to the other  information  set
                         forth  therein,  the  Borrower's  compliance  with  the
                         financial  covenants set forth herein and that no Event
                         of Default has occurred.

                    (j)  Borrower shall within fifteen days of the close of each
                         fiscal  quarter  complete,  execute and deliver to Bank
                         the  certificate  attached  to the Senior  Debt  Credit
                         Facility as Exhibit 4.2(j).

         If at any time Borrower has any additional subsidiaries which have
financial statements that could be consolidated with those of Borrower under
generally accepted accounting principles, the financial statements required by
subsections (a) and (b) above will be the financial statements of Borrower and
all such subsidiaries prepared on a consolidated basis.

         4.3 Condition and Repair. Borrower will maintain its assets in good
repair and working order (normal wear and tear excepted) and will make all
appropriate repairs and replacements thereof except for obsolete assets or
assets no longer used in Borrower's business.

         4.4 Insurance. Borrower will insure its properties and business against
loss or damage of the kinds and in the amounts customarily insured against by
corporations with established reputations engaged in the same or similar
business as Borrower. All such policies will (a) be issued by financially sound
and reputable insurers, (b) name Bank as an additional insured and, where
applicable, as loss payee under a lender loss payable endorsement reasonably
satisfactory to Bank, and (c) will provide for thirty (30) days written notice
to Bank before such policy is altered or canceled all of which will be evidenced
by a Certificate of Insurance delivered to Bank by Borrower on the date of
execution of this Agreement.

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         4.5 Taxes. Borrower will pay when due all taxes, assessments and other
governmental charges imposed upon it or its assets, franchises, business, income
or profits before any penalty or interest accrues thereon, and all claims
(including, without limitation, claims for labor, services, materials and
supplies) for sums which by law might be a lien or charge upon any of its
assets, provided that (unless any material item or property would be lost,
forfeited or materially damaged as a result thereof) no such charge or claim
need be paid if it is being diligently contested in good faith, if Bank is
notified in advance of such contest and if Borrower establishes an adequate
reserve or other appropriate provision required by generally accepted accounting
principles .

         4.6      Existence;  Business.  Borrower will (a) maintain its
existence, and (b) engage primarily in business of the same general character as
that now conducted .

         4.7 Compliance with Laws. Borrower will comply with all federal, state
and local laws, regulations and orders applicable to Borrower or its assets
including but not limited to all Environmental Laws, in all respects material to
Borrower's business, assets or prospects and will immediately notify Bank of any
violation of any material rule, regulation, statute, ordinance, order or law
relating to the public health or the environment and of any complaint or
notifications received by Borrower regarding to any material environmental or
safety and health rule, regulation, statute, ordinance or law.

         4.8 Notice of Default. Borrower will, within three (3) days of its
knowledge thereof, give written notice to Bank of: (a) the occurrence of any
event or the existence of any condition which would be, after notice or lapse of
applicable grace periods, an Event of Default, and (b) the occurrence of any
event or the existence of any condition which would prohibit Borrower from
continuing to make the representations set forth in this Agreement.

         4.9 Costs. Borrower will pay to Bank its fees, costs and expenses
(including, without limitation, reasonable attorneys' fees, other professionals'
fees, appraisal fees, environmental assessment fees (including Phase I and Phase
II assessments), expert fees, court costs, litigation and other expense
(collectively, "Costs") incurred or paid by Bank in connection with the
negotiating, documenting, administering and enforcing the Facility, the Loans
and the Loan Documents and the defense, preservation and protection of Bank's
rights and remedies thereunder, including without limitation, its security
interest in the Collateral or any other property pledged to secure the Loans,
whether incurred in bankruptcy, insolvency, foreclosure or other litigation or
proceedings or otherwise. The Costs will be due and payable upon demand by Bank.
If Borrower fails to pay the Costs when upon such demand, Bank is entitled to
disburse such sums as an advance under the Facility. Thereafter, the Costs will
bear interest from the date incurred or disbursed at the highest rate set forth
in the Notes. This provision will survive the termination of this Agreement
and/or the repayment of any amounts due or the performance of any Obligation.

         4.10 Depository/Banking Services. So long as this Agreement is in
effect, Bank will be the principal depository in which a majority of Borrower's
funds are deposited, and the principal bank of account of Borrower, as long as

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this Agreement is in effect, and Borrower will maintain in its principal bank
account at all times collected funds of at least .875% of the total amount of
the Facility and shall grant Bank the first and last opportunity to provide any
corporate banking services required by Borrower and its Affiliates, including,
without limitation, payroll, cash management, treasury management, and employee
benefit plan services.

         4.11 Other Amounts Deemed Loans. If Borrower fails to pay any tax,
assessment, governmental charge or levy or to maintain insurance within the time
permitted or required by this Agreement, or to discharge any Lien prohibited
hereby, or to comply with any other Obligation, Bank may, but shall not be
obligated to, pay, satisfy, discharge or bond the same for the account of
Borrower, and to the extent permitted by law and at the option of Bank, all
monies so paid by Bank on behalf of Borrower will be deemed Loans and
Obligations.

         4.12 Assignment of Lease Proceeds. Borrower shall use its best efforts
to deliver to the Bank original fully executed Assignment of Lease Proceeds for
all of Borrower's Leases executed by Borrower and all lessees within sixty (60)
days of the Closing Date or for Leases executed after the Closing Date within
sixty (60) days of the execution of the Lease. All Assignments of Lease Proceeds
shall be in the form set forth in Exhibit 7.1 (g) to the Senior Debt Credit
Facility or with such minor variations therefrom as reasonably approved by Bank.

         4.13 Leases. Borrower shall make available for review by Bank copies of
all Borrower's Leases executed by Borrower and all lessees at the Closing and
shall deliver copies of all new Leases executed by Borrower and lessees after
the Closing within five (5) days of execution.

         4.14 Intellectual Property. Borrower shall, within ten (10) days of
request by Bank, execute and deliver to Bank such security documents as
reasonably requested by Bank to perfect a first priority security interest in
the intellectual property of Borrower including but not limited to the
Borrower's trademarks and patents.

Section 5.        Negative Covenants.

         5.1 Indebtedness. Borrower will not incur, create, assume or permit to
exist any additional Indebtedness for borrowed money (other than the
Obligations) or Indebtedness on account of deposits, advances or progress
payments under contracts, notes, bonds, debentures or similar obligations or
other indebtedness evidenced by notes, bonds, debentures, capitalized leases or
similar obligations in excess of $750,000 in the aggregate in any calendar year
without the written consent of Bank in its sole discretion except that the
limitation contained herein shall not apply to performance bonds required to be
maintained in connection with lottery leases.

         5.2 Prepayments. Borrower will not voluntarily prepay any Indebtedness
owing by Borrower prior to the stated maturity date thereof other than (i) the
Obligations, except as permitted herein, and (ii) Indebtedness to trade
creditors where the prepayment will result in a discount on the amount due or is
paid in the ordinary course of business.

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         5.3      [Intentionally Omitted]

         5.4      [Intentionally Omitted]

         5.5 Pledge or Encumbrance of Assets. Other than the Permitted Liens,
Borrower will not create, incur, assume or permit to exist, arise or attach any
Lien in any present or future asset, except for Liens to Bank, Liens existing on
the date of this Agreement which have been disclosed to and approved by Bank and
Liens imposed by law which secure amounts not at the time due and payable.

         5.6 Guarantees and Loans. Borrower will not enter into any direct or
indirect guarantees other than by endorsement of checks for deposit or other
than in the ordinary course of business nor make any advance or loan other than
in the ordinary course of business as presently conducted, including, without
limitation, loans and advances to employees, officers or directors of Borrower
except for (i) advances to employees, officers or directors for travel,
entertainment and similar expenses in amounts outstanding at any given time not
to exceed $500,000.00, (ii) a presently outstanding loan to Edmund Turek in the
amount of $280,000 which may be increased by not more than $350,000 and which
shall be paid off at such time as Borrower makes the Preferred Share Redemption
and, (iii) other loans to officers, directors or employees in amounts in the
aggregate outstanding at any one time not to exceed $500,000.

         5.7 Share Interest; Distributions. Borrower will not (a) declare or pay
any distributions excepting dividends to equity shareholders (provided however
dividends to equity shareholders may not be made at such time as there is an
Event of Default and an Event of Default is Continuing or where such dividend
shall cause an Event of Default) (b) make any payments of any kind to its
shareholders (including, without limitation, debt repayments, payments for goods
or services or otherwise, but excluding ordinary salary payments to shareholders
employed by Borrower and dividends to shareholders) or (c) redeem any shares of
its equity interests in any fiscal year except the redemption on or about April
1, 2001 or at any time thereafter of all the issued and outstanding preferred
stock of Borrower for redemption price of $1,350,000.00 (the "Preferred Share
Redemption").

         5.8      [Intentionally Deleted]

         5.9      Merger  Purchase of Assets;  Disposition of Assets.  Borrower
will  not (a)  merge or  consolidate  with any  corporation,  including  but not
limited to affiliates except in regards to an Acquisition or (b) sell,  transfer
or  otherwise  dispose of all or  substantially  all of its assets,  whether now
owned or hereafter acquired .

         5.10 Transactions with Affiliates. Borrower will not (except as
permitted under Section 5.6 hereof) (a) directly or indirectly issue any
guarantee for the benefit of any of its Affiliates, (b) directly or indirectly
make any loans or advances to or investments in any of its Affiliates, (c) enter
into any transaction with any of its Affiliates, other than transactions entered
into on an arm's length basis in the normal course of Borrower's business, or
(d) divert (or permit anyone to divert) any of its business opportunities to any
Affiliate or any other corporate or business entity in which Borrower or its
shareholders hold a direct or indirect interest.

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<PAGE>

         5.11 Investments. Borrower will not purchase or hold beneficially any
stock, securities or evidences of indebtedness of, or make any investment or
acquire any interest in, any other firm, partnership, corporation or entity
other than in regards to an Acquisition and/or short term investments of excess
working capital in one or more of the following: (a) investments (of one year or
less) in direct or guaranteed obligations of the United States, or any agencies
thereof; and (b) investments (of one year or less) in certificates of deposit of
banks or trust companies organized under the laws of the United States or any
jurisdiction thereof, provided that such banks or trust companies are insured by
the Federal Deposit Insurance Corporation and have capital in excess of
$25,000,000.

         5.12     [Intentionally Omitted]

         5.13     Minimum Tangible Net Worth.  Borrower will not permit its
Tangible  Net Worth to be less than the amounts set forth below on the dates set
forth below:

                  Date                             Minimum Amount

                  5/31/01                          $15,953,000
                  9/30/01                          $16,617,000
                  12/31/01                         $18,142,000
                  3/31/02                          $18,151,000
                  6/30/02                          $18,738,000
                  9/30/02                          $19,365,000
                  12/31/02                         $19,221,000
                  3/31/03                          $19,726,000
                  6/30/03                          $19,968,000
                  9/30/03                          $20,000,000
                  12/31/03                         $20,000,000
                  3/31/04                          $20,000,000

5.14     [Intentionally Omitted]

         5.15 Funded Debt / EBITDA Ratio. Borrower will not at any time permit
its Funded Debt to EBITDA ratio to exceed the ratio set forth below for Funded
Debt as calculated on the date below and for EBITDA calculated based on a
trailing twelve month period from the date set forth below:

                                       11
<PAGE>

               Determination Date                          Ratio

               6/30/01                                     3.00 : 1
               9/30/01                                     3.10 : 1
               12/31/01                                    3.00 : 1
               3/31/02                                     3.00 : 1
               6/30/02                                     2.50 : 1
               9/30/02                                     2.50 : 1
               12/31/02                                    2.25 : 1
               3/31/03                                     2.25 : 1
               6/30/03                                     2.00 : 1
               9/30/03                                     2.00 : 1
               12/31/03                                    1.75 : 1
               3/31/04                                     1.75 : 1
               6/30/04                                     1.75 : 1

         5.16 Indebtedness to EBITDA Ratio. Borrower will not at any time permit
its Indebtedness to EBITDA ratio to exceed the ratio set forth below for
Indebtedness as calculated on the date below and for EBITDA calculated based on
a trailing twelve month period from the date set forth below:

               Determination Date                          Ratio

               6/30/01                                     3.50 : 1
               9/30/01                                     3.50 : 1
               12/31/01                                    3.50 : 1
               3/31/02                                     3.50 : 1
               6/30/02                                     3.25 : 1
               9/30/02                                     3.25 : 1
               12/31/02                                    3.00 : 1
               3/31/03                                     3.00 : 1
               6/30/03                                     2.75 : 1
               9/30/03                                     2.75 : 1
               12/31/03                                    2.50 : 1
               3/31/04                                     2.50 : 1
               6/30/04                                     2.50 : 1

         5.17 Maximum Annual Capital Expenditures. Borrower will not make any
capital expenditure, or any commitment therefore, or obtain equipment subject to
a purchase money security interest, trust deed or lease, in an amount exceeding
$500,000 in the aggregate in any calendar year, without the written consent of
Bank in its sole discretion.

                                       12

<PAGE>
         5.18   Minimum Fixed Charge Coverage Ratio. Borrower will not at any
time permit its Fixed Charge Coverage Ratio to be less than the ratio set forth
below calculated based on a trailing twelve month period from the date set forth
below:

             Determination Date                             Ratio

             6/30/01                                        2.25 : 1
             9/30/01                                        2.25 : 1
             12/31/01                                       2.25 : 1
             3/31/02                                        2.25 : 1
             6/30/02                                        3.00 : 1
             9/30/02                                        3.00 : 1
             12/31/02                                       3.00 : 1
             3/31/03                                        3.00 : 1
             6/30/03                                        3.00 : 1
             9/30/03                                        3.00 : 1
             12/31/03                                       3.00 : 1
             3/31/04                                        3.00 : 1
             6/30/04                                        3.00 : 1

         5.19 Cancelled Lease Units. Commencing on June 30, 2001, and measured
at the end of each subsequent fiscal quarter, Borrower shall not permit lottery
machines subject to Leases to be cancelled during the preceding twelve month
period which either: a) exceed a number equal to 15% of the total number of
lottery machines being leased by Borrower as of the end of such fiscal quarter,
or b) exceed 10% of the lottery machines being leased by the Borrower as of the
end of such fiscal quarter and which cancelled leases arise from two or more
states.

Section 6.        Events of Default and Remedies.

         6.1      Events of Default.  Any of the following events will be an
 Event of Default ("Event of Default"):

          (a)  any  representation or warranty made by Borrower herein or in any
               of the Loan  Documents is incorrect  when made or reaffirmed  and
               such   misrepresentations   and/or  breached  warranties  in  the
               aggregate are material; or

          (b)  Borrower  defaults in the payment of any principal or interest on
               any  Obligation  for two (2) business  days after such payment is
               due and payable, by acceleration or otherwise; or

          (c)  Borrower  fails to observe or perform any covenant,  condition or
               agreement  herein,  in the Term Note or in the Senior Debt Credit
               Facility,  and fails to cure such  default  within 30 days of the
               earlier of (i) written  notice  thereof  from Bank to Borrower if

                                       13
<PAGE>

               such default is not known by a Responsible Officer of Borrower or
               (ii) knowledge of a Responsible Officer of such default, provided
               that such 30 day grace  period  will not apply to (i) a breach of
               any covenant  which in Bank's good faith judgment is incapable of
               cure, (ii) any failure to maintain insurance or permit inspection
               of the Collateral or of the books and records of Borrower,  (iii)
               any  breach  in any  negative  covenant  set  forth in  Section 5
               hereof,  or (iv) any  breach of any  covenant  which has  already
               occurred; or

          (d)  a court  enters a decree  or order for  relief  with  respect  to
               Borrower in an involuntary case under any applicable  bankruptcy,
               insolvency  or other  similar  law then in effect,  or appoints a
               receiver, liquidator,  assignee, custodian, trustee, sequestrator
               (or other  similar  official) of Borrower or for any  substantial
               part of its property, or orders the wind-up or liquidation of its
               affairs;  or a petition  initiating an involuntary case under any
               such  bankruptcy,  insolvency  or  similar  law is  filed  and is
               pending for forty-five (45) days without dismissal; or

          (e)  Borrower   commences  a  voluntary   case  under  any  applicable
               bankruptcy,  insolvency or other similar law in effect,  or makes
               any general  assignment  for the benefit of  creditors,  or fails
               generally  to pay its debts as such debts  become  due,  or takes
               corporate action in furtherance of any of the foregoing; or

          (f)  Borrower  defaults under the terms of any  Indebtedness  or lease
               involving  obligations  of  the  Borrower  in  the  aggregate  of
               $100,000.00 or more and such default gives any creditor or lessor
               the right to accelerate the maturity of any such  indebtedness or
               lease  payments  which right is not  contested  by Borrower or is
               determined by any court of competent jurisdiction to be valid; or

          (g)  final  judgment  of the  payment  of  money is  rendered  against
               Borrower  and  remains  undischarged  for 10  days  during  which
               execution is not effectively stayed; or

          (h)  the dissolution of Borrower; or

          (i)  the commencement of any foreclosure  proceedings,  proceedings in
               aid of execution,  attachment  actions,  levies  against,  or the
               filing by any taxing  authority of a lien which is not discharged
               within ten (10) days of Borrower's  knowledge thereof against any
               of the  Collateral or any property  securing the repayment of any
               of the Obligations; or

          (j)  the loss,  theft or  substantial  damage to the Collateral or any
               property  securing the repayment of the Obligations  which is not
               fully covered by insurance  (subject to a reasonable  deductible)
               if the result of such  occurrence  will be, in Bank's  reasonable
               judgment,  the  failure or  inability  of  Borrower  to  continue
               substantially normal operation of its business within thirty (30)
               days of the date of such occurrence; or

                                       14
<PAGE>

          (k)  (i) the validity or effectiveness of any of the Loan Documents or
               its transfer, grant, pledge, mortgage, or assignment by the party
               executing  such  Loan  Document  is  impaired;   (ii)  any  party
               executing any of the Loan Documents asserts that any of such Loan
               Documents  is not a legal,  valid and binding  obligation  of the
               party thereto enforceable in accordance with its terms; (iii) the
               security  interest or Lien purporting to be created by any of the
               Loan  Documents  will for any reason  (other  than as a result of
               Bank's fault) cease to be a valid,  perfected  lien subject to no
               other  liens  other  than  Liens  permitted  by the terms of this
               Agreement;  or (iv) any Loan  Document is amended,  hypothecated,
               subordinated,  terminated  or  discharged,  or if any  person  is
               released  from any of its covenants or  obligations  under any of
               the Loan Documents except as permitted by Bank in writing; or

          (l)  Bank has  called  for  additional  security  from the  assets  of
               Borrower  and the  Borrower  has not  furnished  such  additional
               security on demand; or

          (m)  a Reportable  Event (as defined in ERISA)  occurs with respect to
               any  employee   benefit  plan  maintained  by  Borrower  for  its
               employees  other  than a  Reportable  Event  caused  solely  by a
               decrease in  employment;  or a trustee is  appointed  by a United
               States District Court to administer any employee benefit plan; or
               the Pension Benefit Guaranty Corporation  institutes  proceedings
               to terminate any of Borrower's employee benefit plans; or

          (n)  the filing of any lien or charge  against the  Collateral  or any
               part  thereof  which is not removed to the  satisfaction  of Bank
               within a period of 30 days thereafter; or

          (o)  the  abandonment  by Borrower of all or any material  part of the
               Collateral.or

          (p)  the prepayment of all or any part of the Term Note of Borrower to
               Bank  (except as  authorized  by the Note or the other  documents
               relating thereto).

          (q)  the failure of Borrower to pay the Success Fee and Closing Fee to
               Bank within two (2)  business  days after such  payment is due as
               provided herein.

         6.2 Remedies. If any Event of Default occurs and the Event of Default
is Continuing, Bank may (i) cease advancing money hereunder, (ii) declare all
Obligations to be immediately due and payable, whereupon such Obligations will
immediately become due and payable, (iii) exercise any and all rights and
remedies provided by applicable law and the Loan Documents, (iv) proceed to
realize upon the Collateral or any property securing the Obligations, including,
without limitation, causing all or any part of the Collateral to be transferred
or registered in its name or in the name of any other person, firm or
corporation, with or without designation of the capacity of such nominee, all
without presentment, demand, protest, or notice of any kind, each of which are
hereby expressly waived by Borrower. Borrower shall be liable for any deficiency
remaining after disposition of any Collateral, and waives all valuation and
appraisement laws.

                                       15
<PAGE>

         6.3 Setoff. Subject to the prior rights of the holders of the Senior
Indebtedness, if any Event of Default occurs and the Event of Default is
Continuing, Bank is authorized, without notice to Borrower, to offset and apply
to all or any part of the Obligations all moneys, credits and other property of
any nature whatsoever of Borrower now or at any time hereafter in the possession
of, in transit to or from, under the control or custody of, or on deposit with
(whether held by Borrower individually or jointly with another party), Bank,
including but not limited to certificates of deposit.

         6.4 Default Rate. After the occurrence of an Event of Default and the
Event of Default is Continuing, all amounts of principal outstanding as of the
date of the occurrence of such Event of Default will accrue interest at the
Default Rate, in Bank's sole discretion, without notice to Borrower. This
provision does not constitute a waiver of any Events of Default or an agreement
by Bank to permit any late payments whatsoever.

         6.5      Intentionally Omitted

         6.6 No Remedy Exclusive. No remedy set forth herein is exclusive of any
other available remedy or remedies, but each is cumulative and in addition to
every other remedy available under this Agreement, the Loan Documents or as may
be now or hereafter existing at law, in equity or by statute. Borrower waives
any requirement of marshaling of assets which may be secured by any of the Loan
Documents.

         6.7 Effect of Termination. The termination of this Agreement will not
affect any rights of either party or any obligation of either party to the
other, arising prior to the effective date of such termination, and the
provisions hereof shall continue to be fully operative until all transactions
entered into, rights created or Obligations incurred prior to such termination
have been fully disposed of, concluded or liquidated.

         6.8      Intentionally Omitted.

Section 7.        Conditions Precedent.

         7.1 Conditions to the Loan. Bank will have no obligation to make or
advance the Term Loan until Borrower has delivered to Bank at or before the
closing date, in form and substance satisfactory to Bank:

               (a)  Executed  versions  of the Term Note in the form of  Exhibit
                    2.1 attached hereto.

               (b)  A Certificate  of Borrower in the form of Exhibit  7.1(b) to
                    the Third  Amendment  to Credit  Agreement  executed of even
                    date herewith, and all attachments thereto.

                                       16
<PAGE>

               (c)  A favorable opinion of counsel to Borrower, substantially in
                    the form of Exhibit 7.1(c) attached hereto.

               (d)  The Closing Fee and the  reimbursements  of Bank's  expenses
                    contained in Section 2.4 (c) hereof have been paid in full.

               (e)  A  Certificate  of  Insurance  as  described  in Section 4.4
                    hereof, if same has not previously been provided to Bank.

               (f)  Bank shall have completed to its reasonable  satisfaction an
                    audit  of  the  books  and  records  of   Borrower.   It  is
                    understood,  however, that any such audit by Bank will in no
                    respect waive Bank's rights to pursue remedies upon an Event
                    of Default.

               (g)  Such  additional  information  and  materials  as  Bank  may
                    reasonably request.

               (h)  UCC searches,  tax lien and litigation  searches,  insurance
                    certificates,  notices  or other  documents  which  Bank may
                    require to reflect, perfect or protect Bank's first priority
                    lien in the  Collateral  and all other  property  pledged to
                    secure  the  Obligations   and  to  fully   consummate  this
                    transaction.

               (i)  An  Amendment  to  Mortgage  of  Intellectual   Property  of
                    Borrower in a form reasonably acceptable to Bank.

         7.2      Conditions to Term Loan.  On the date of the Term Loan, the
 following statements will be true:

                  (a)      All of the representations and warranties contained
                           herein and in the Loan Documents will be correct in
                           all material respects as though made on such date
                           except for those changes permitted under this
                           Agreement;

                  (b)      No event will have occurred and be continuing, or
                           would result from such Term Loan, which constitutes
                           an Event of Default, or would constitute an Event of
                           Default but for the requirement that notice be given
                           or lapse of time or both;

Section 8.        Miscellaneous Provisions.

         8.1 Miscellaneous. This Agreement, the exhibits and the other Loan
Documents are the complete agreement of the parties hereto and supersede all
previous understandings relating to the subject matter hereof. This Agreement
may be amended only in writing signed by the party against whom enforcement of
the amendment is sought. This Agreement may be executed in counterparts. If any

                                       17
<PAGE>

part of this Agreement is held invalid, illegal or unenforceable, the remainder
of this Agreement will not in any way be affected. This Agreement is and is
intended to be a continuing agreement and will remain in full force and effect
until the Loans are finally and irrevocably paid in full and the Term Loan is
terminated.

         8.2 Waiver by Borrower. Borrower waives notice of non-payment, demand,
presentment, protest or notice of protest of any Accounts or other Collateral,
and all other notices (except those notices specifically provided for in this
Agreement); consents to any renewals or extensions of time of payment thereof.
Borrower hereby waives all suretyship defenses, including but not limited to,
all defenses set forth in Section 3-605 of the Uniform Commercial Code, as
revised in 1990 (the "UCC"). Such waiver is entered to the full extent permitted
by Section 3-605 (i) of the UCC.

         8.3 Binding Effect. This Agreement will be binding upon and inure to
the benefit of the respective legal representatives, successors and assigns of
the parties hereto; however, Borrower may not assign or transfer any of its
rights or delegate any of its obligations under this Agreement or under any of
the Loan Documents, by operation of law or otherwise. Bank (and any subsequent
assignee) may transfer and assign any of its rights or delegate any of its
duties under this Agreement or may transfer or assign partial interests or
participation in the Loans to other persons. Bank may disclose to all
prospective and actual assignees and participants all financial, business and
other information about a Borrower which Bank may possess at any time.

         8.4 Subsidiaries. If Borrower has any additional Subsidiaries at any
time during the term of this Agreement, the term "Borrower" in each
representation, warranty and covenant herein will mean "Borrower" and each
Subsidiary individually and in the aggregate, and Borrower will cause each
Subsidiary to be in compliance therewith.

         8.5 Security. The Obligations are secured as provided herein, in this
Agreement, the Senior Debt Credit Facility, the Security Agreement, in the Loan
Documents and in each other document or agreement which by its terms secures the
repayment or performance of the Obligations. Notwithstanding anything contained
in the Credit Agreement or the Loan Documents to the contrary, to the extent of
any prohibition in a Lease applicable thereto, the assignment of the payments
and/or rights under each Lease from Borrower to Bank shall not be effective as
to each Debtor under a Lease until such time as the Assignment of Lease Proceeds
shall be executed by such Debtor.

         8.6 Survival. All representations, warranties, covenants and agreements
made by Borrower herein and in the Loan Documents will survive the execution and
delivery of this Agreement, the Loan Documents and the issuance of the Term
Note.

         8.7 Delay or Omission. No delay or omission on the part of Bank in
exercising any right, remedy or power arising from any Event of Default will
impair any such right, remedy or power or any other right remedy or power or be
considered a waiver or any right, remedy or power or any Event of Default nor
will the action or omission to act by Bank upon the occurrence of any Event of

                                       18
<PAGE>

Default impair any right, remedy or power arising as a result thereof or affect
any subsequent Event of Default of the same or different nature.

         8.8 Notices. Any notices under or pursuant to this Agreement will be
deemed duly sent when delivered in hand or when mailed by registered or
certified mail, return receipt requested, addressed as follows:

             To Borrower:              INTERLOTT TECHNOLOGIES, INC.
                                       7697 Innovation Way
                                       Mason, Ohio 45040-9695
                                       Attention:   Dennis W. Blazer

             With a copy to:           Jeffrey S. Schloemer, Esq.
                                       Taft, Stettinius & Hollister, LLP
                                       1800 Firstar Tower
                                       425 Walnut Street
                                       Cincinnati, Ohio 45202

             To Bank:                  Fifth Third Bank
                                       38 Fountain Square Plaza
                                       Cincinnati, Ohio 45263
                                       Attention: J. Jeffrey Pasquale

             With a copy to:           Jeffrey P. Harris, Esq.
                                       Statman, Harris, Siegel & Eyrich, LLC
                                       2900 Chemed Center
                                       255 East Fifth Street
                                       Cincinnati, Ohio 45202

         Either party may change such address by sending written notice of the
change to the other party.

         8.9 No Partnership. Nothing contained herein or in any of the Loan
Documents is intended to create or will be construed to create any partnership,
joint venture or other relationship between Bank and Borrower other than as
expressly set forth herein or therein and will not create any joint venture,
partnership or other relationship.

         8.10 Indemnification. If after receipt of any payment of all or part of
the Obligations, Bank is for any reason compelled to surrender such payment to
any person or entity, because such payment is determined to be void or voidable
as a preference, impermissible setoff, or diversion of trust funds, or for any
other reason, this Agreement will continue in full force and effect and Borrower
will be liable to, and will indemnify, save and hold Bank, its officers,

                                       19
<PAGE>

directors, attorneys, and employees harmless of and from the amount of such
payment surrendered. The provisions of this Section will be and remain effective
notwithstanding any contrary action which may have been taken by Bank in
reliance on such payment, and any such contrary action so taken will be without
prejudice to Bank's rights under this Agreement and will be deemed to have been
conditioned upon such payment becoming final, indefeasible and irrevocable. In
addition, Borrower will indemnify, defend, save and hold Bank, its officers,
directors, attorneys, and employees harmless of, from and against all claims,
demands, liabilities, judgments, losses, damages, costs and expenses, joint or
several (including all accounting fees and attorneys' fees reasonably incurred),
that Bank or any such indemnified party may incur arising out of this Agreement,
any of the Loan Documents or any act taken by Bank hereunder except for the
willful misconduct or gross negligence of such indemnified party. The provisions
of this Section will survive the termination of this Agreement.

         8.11 Governing Law; Jurisdiction. This Agreement, the Note and the
other Loan Documents will be governed by the domestic laws of the State of Ohio.
Borrower agrees that the state and federal courts in Hamilton County, Ohio, or
any other court in which Bank initiates proceedings have exclusive jurisdiction
over all matters arising out of this Agreement, and that service of process in
any such proceeding will be effective if mailed to Borrower at its address
described in the Notices section of this Agreement. BANK AND BORROWER HEREBY
WAIVE THE RIGHT TO TRIAL BY JURY OF ANY MATTERS ARISING OUT OF THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY.

                       THIS SPACE INTENTIONALLY LEFT BLANK

                                       20
<PAGE>

         IN WITNESS WHEREOF, Borrower and Bank have executed this Agreement by
their duly authorized officers as of the date first above written.

                                       INTERLOTT TECHNOLOGIES, INC.

                                       By:________________________________

                                       Its:_______________________________

                                       FIFTH THIRD BANK

                                        By:________________________________

                                        Its:________________________________

                                       21
<PAGE>

                                    EXHIBITS
                                       TO
                                CREDIT AGREEMENT
                                     BETWEEN
                          INTERLOTT TECHNOLOGIES, INC.
                                       AND
                                FIFTH THIRD BANK

Exhibit 1 - Definitions

Exhibit 2.1 - Term Note

Exhibit 2.1(d) - Subordination Agreement

Exhibit 7.1 (c) - Form of Opinion of Borrower's Counsel

                                       22
<PAGE>

                                    EXHIBIT 1

                                   DEFINITIONS

1.   "Acquisitions" means any purchase of assets from a third party or merger or
     consolidation  with a third party (all of the  foregoing  being in the same
     business as Borrower)  which (i) requires a purchase  price  consisting  of
     cash  payments at closing or required  thereafter  in  connection  with the
     closing plus  assumed  liabilities  (in  accordance  with general  accepted
     accounting  principles),  but exclusive of any contingent  obligations that
     would not be treated as a liability in accordance  with generally  accepted
     accounting  principles  and/or any contingent  liabilities  associated with
     earn out or deferred payment provisions based on future performance, of not
     more than fifty percent (50%) of the average excess  availability under the
     Revolving Loans for the thirty day period prior to the acquisition and (ii)
     Borrower  has  delivered  to Bank at least  thirty  (30) days  prior to the
     acquisition  projected proforma  financial  statements for the Borrower for
     the  period  after  the  acquisition  to  the  Termination  Date  in a form
     reasonably  acceptable to the Bank prepared in  accordance  with  generally
     accepted accounting  principles and certified as complete and correct by an
     officer of Borrower and evidencing  future compliance with the terms of the
     Agreement in a manner reasonably acceptable to Bank.

2.   "Affiliate" means, as to Borrower, (a) any person or entity which, directly
     or  indirectly,  is in  control  of, is  controlled  by or is under  common
     control  with,  Borrower,  or (b) any person who is a director,  officer or
     employee (i) of Borrower or (ii) of any person  described in the  preceding
     clause (a). For purposes of this definition, control of a person shall mean
     (a) the power, direct or indirect, (i) to vote ten percent (10%) or more of
     the securities  having  ordinary voting power for the election of directors
     of such person or (ii) to direct or cause the  direction of the  management
     and policies of such person  whether by contract or  otherwise,  or (b) the
     ownership, direct or indirect, of ten percent (10%) or more of any class of
     equity securities of such person.

3.   "Business Day" means any day which the Bank and the Federal Reserve Bank of
     Cleveland is open for business.

4.   "Calculation  Date" means in regards to the  calculation  of Funded Debt to
     EBITDA Ratio the first day of the  calendar  month  following  the month of
     receipt by Bank from Borrower of Borrower's audited financial statement for
     any calendar year end period or receipt from Borrower by Bank of Borrower's
     10K or 10Q for any other calendar  quarter provided however if such audited
     financial statement,  10K or 10Q is received in the last three (3) business

                                       23
<PAGE>

     days of the month it shall be deemed  received in the next calendar  month.
     Borrower  shall  deliver to Bank its audited  calendar  year end  financial
     statement  within  5 days of its  receipt  by  Borrower  and its 10K or 10Q
     within five (5) days of filing by the Borrower.

5.   "Collateral"  has  the  meaning  assigned  to  that  term  in any  Security
     Agreement between Borrower and Bank.

6.   "Default  Rate" means three  percent  (3%) in excess of the  interest  rate
     otherwise in effect under amounts  outstanding  under the Note. In no event
     will the  interest  rate  accruing  under such Note be  increased  to be in
     excess of the  maximum  interest  rate  permitted  by  applicable  state or
     federal usury laws then in effect.

7.   "EBITDA"  means net income of  Borrower  before  taxes,  interest  expense,
     depreciation and amortization  expenses,  plus principal  payments received
     from sales type lease payments, and less extraordinary gains.

8.   "Environmental  Laws" means all  federal,  state,  local and  foreign  laws
     relating to pollution or  protection  of the  environment,  including  laws
     relating  to  emissions,  discharges,  releases or  threatened  releases of
     pollutants,  contaminants,  chemicals,  or  industrial  toxic or  hazardous
     substances or wastes into the  environment  (including  without  limitation
     ambient air, surface water, ground water or land), or otherwise relating to
     the  manufacture,   processing,   distribution,  use,  treatment,  storage,
     disposal, transport or handling of pollutants,  contaminants,  chemicals or
     industrial,  toxic  or  hazardous  substances  or  wastes,  and any and all
     regulations, codes, plans, orders, decrees, judgments, injunctions, notices
     or demand letters issued, entered promulgated or approved thereunder.

9.   "ERISA" means the Federal Employee Retirement Income Security Act of 1974.

10.  "Event(s) of Default" will have the meaning set forth in Section 6.1 of the
     Agreement.

11.  "Event of Default is  Continuing"  shall mean that an Event of Default  has
     occurred and has not been cured by the Borrower,  provided however an Event
     of Default cannot be cured in the following circumstances:  (i) a breach of
     any covenant which in Bank's good faith judgment is incapable of cure, (ii)
     any  failure to  maintain  insurance  in  accordance  with the terms of the
     Agreement  or  related  documents  (provided  however  one  breach  of  the
     maintenance of insurance  during the term of this Agreement for a period of
     not more than three (3) business days prior to its cure shall be capable of
     cure) or  failure  to  permit  inspection  of the  Collateral  or books and
     records of the  Borrower,  or (iii) more than two (2)  breaches  of Section
     6.1(b) of the Agreement in any calendar year.

                                       24
<PAGE>

12.  "Fixed Charge Coverage Ratio" means the ratio of (a) Borrower's  EBITDA for
     the applicable  measurement  period to (b) Borrower's Fixed Charges for the
     applicable measurement period.

13.  "Fixed Charges" means the sum of Borrower's  scheduled  principal  payments
     (including principal payments arising from the acquisition of the assets of
     On-Point),   interest,   dividends,  income  tax  expense  as  reported  on
     Borrower's   profit  and  loss  statements,   capital  lease  payments  and
     unfinanced  capital  expenditures  (excluding  Borrower's  cost of  lottery
     machines  subject  to  Leases)  for  the  applicable   measurement  period.
     Notwithstanding  the foregoing,  Fixed Charges shall not include  principal
     payments on the Subordinated Debt.

14.  "Funded Debt" means the sum of Borrower's  Obligations to Bank or any other
     lender or financial  institution for borrowed money,  including capitalized
     leases,  and Subordinated Debt, and the total amount of outstanding debt of
     Borrower  incurred in acquiring the assets of On-Point  (including  but not
     limited to the $9,000,000 seller note), as reflected on Borrower's  balance
     sheet

15.  "Funded Debt to EBITDA Ratio" means the ratio of Borrower's  Funded Debt to
     the Borrower's  EBITDA. The Funded Debt to EBITDA Ratio shall be calculated
     for each  calendar  quarter  on each  Calculation  Date (as  defined in the
     Senior Debt Credit  Facility) and shall be effective from each  Calculation
     Date to the subsequent Calculation Date. The calculation of the Funded Debt
     to EBITDA Ratio shall be based upon  Borrower's  audited year end financial
     statement  for the year end  calculation  and  upon  applicable  securities
     filing  forms  10Q  or  10K  for  other  calendar  quarterly  periods.  The
     calculation  shall be made on a  trailing  twelve  month  basis.  The first
     calculation  period shall commence for the twelve month period ending March
     31, 2001.

16.  "Indebtedness"  means (a) all items  (except  items of  capital  stock,  of
     capital surplus, of general  contingency  reserves or of retained earnings,
     deferred income taxes, and amount  attributable to minority  interests,  if
     any) which in accordance  with  generally  accepted  accounting  principles
     would be included in determining total liabilities on a consolidated  basis
     as  shown on the  liability  side of a  balance  sheet as at the date as of
     which Indebtedness is to be determined, (b) all indebtedness secured by any
     mortgage,  pledge,  lien or  conditional  sale  or  other  title  retention
     agreement to which any property or asset owned or held is subject,  whether
     or not the indebtedness  secured thereby will have been assumed  (excluding
     non-capitalized  leases which may amount to title retention  agreements but
     including  capitalized  leases),  and (c) all  indebtedness of others which
     Borrower or any Subsidiary has directly or indirectly guaranteed,  endorsed
     (otherwise  than for  collection  or  deposit  in the  ordinary  course  of

                                       25
<PAGE>

     business),  discounted  or sold with  recourse or agreed  (contingently  or
     otherwise) to purchase or repurchase or otherwise acquire, or in respect of
     which  Borrower  or any  Subsidiary  has agreed to apply or  advance  funds
     (whether by way of loan, stock purchase, capital contribution or otherwise)
     or otherwise to become directly or indirectly liable.

17.  "Lien" means any security interest,  mortgage, pledge, assignment,  lien or
     other  encumbrance of any kind,  including  interests of vendors or lessors
     under conditional sale contracts and capitalized leases.

18.  "Loan  Documents"  means  this  Agreement,  the Term Note and  every  other
     document or  agreement  executed by any party  evidencing,  guarantying  or
     securing any of the  Obligations;  and "Loan Document" means any one of the
     Loan Documents.

19.  "Loans" means the Term Loan.

20.  "Mortgage[s]"  means all mortgages,  deeds of trust or trust deeds executed
     by Borrower  encumbering  real property of Borrower to secure the repayment
     of the Obligations.

21.  "Note" means the Term Note.

22.  "Obligation(s)" means all loans,  advances,  indebtedness,  liabilities and
     obligations  of Borrower  owed to each of Bank and the  Affiliates of Fifth
     Third  Bancorp  of every  kind and  description  whether  now  existing  or
     hereafter arising including without  limitation,  those owed by Borrower to
     others and  acquired by Bank or any  Affiliate of Fifth Third  Bancorp,  by
     purchase,  assignment or otherwise, and whether direct or indirect, primary
     or  as  guarantor  or  surety,   absolute  or  contingent,   liquidated  or
     unliquidated,  matured or  unmatured,  whether or not secured by additional
     collateral,  and including without limitation all liabilities,  obligations
     and indebtedness arising under this Agreement,  the Term Note and the other
     Loan Documents, all obligations to perform or forbear from performing acts,
     all amounts  represented  by letters of credit now or  hereafter  issued by
     Bank for the benefit of or at the request of Borrower, and all expenses and
     attorneys'  fees  incurred by Bank and any Affiliate of Fifth Third Bancorp
     under this Agreement or any other document or instrument  related to any of
     the foregoing.

23.  "On Point" means On Point Technology Systems, Inc..

24.  "Permitted  Liens" has the meaning assigned thereto as set forth in Section
     3.9 hereof.

25.  "Prime Rate" means the rate of interest per annum announced to be its prime
     rate from time to time by Bank at its principal office in Cincinnati,  Ohio
     whether  or not Bank  will at times  lend to  borrowers  at lower  rates of

                                       26
<PAGE>
     interest  or, if there is no such  prime  rate,  then its base rate or such
     other rate as may be substituted by Bank for the prime rate.

26.  "Responsible  Officer of Borrower" has the meaning assigned to that term in
     Section 4.2(f) of this Agreement.

27.  "Security Agreement" means any Security Agreement executed between Borrower
     and Bank, securing the Obligations.

28.  "Senior Debt Credit  Facility" shall mean that certain Credit  Agreement by
     and between Borrower and Bank originally dated January 25, 2001, as amended
     thereafter,  the most recent  amendment  being a Third  Amendment to Credit
     Agreement dated of even date herewith

29.  "Senior  Indebtedness"  means all Obligations of Borrower to Bank under the
     Senior Debt Credit Facility.

30.  "Subsidiary" means any corporation of which Borrower directly or indirectly
     owns or  controls  at the time  outstanding  stock  having  under  ordinary
     circumstances  (not  depending on the  happening of a  contingency)  voting
     power to elect a majority of the board of directors of said corporation.

31.  "Success  Fee"  shall  have the  meaning  assigned  to that term in Section
     2.4(b) of this Agreement.

32.  "Tangible  Net Worth" means the total of the capital  stock (less  treasury
     stock), paid-in surplus, general contingency reserves and retained earnings
     (deficit) of Borrower,  and the value of all leases acquired from On Point,
     all as  determined  and/or  valued in accordance  with  generally  accepted
     accounting  principles,  after eliminating all inter-company  items and all
     amounts properly  attributable to minority interests,  if any, in the stock
     and surplus of any Subsidiary  plus  subordinated  debt there to Borrower's
     shareholders as a result of cash loans to the Borrower, minus the following
     items  (without  duplication  of  deductions)  if  any,  appearing  on  the
     consolidated  balance  sheet of Borrower:  (i) all deferred  charges  (less
     amortization,   unamortized   debt   discount  and  expense  and  corporate
     organization  expenses);  (ii) the book amount of all assets which would be
     treated as intangibles  under  generally  accepted  accounting  principles,
     including,   without  limitation,   such  items  as  good-will,   trademark
     applications, trade names, service marks, brand names, copyrights, patents,
     patent applications and licenses, and rights with respect to the foregoing;
     (iii) the amount by which aggregate net inventories or aggregate net

                                       27
<PAGE>

     securities  appearing on the consolidated balance sheet exceed the lower of
     cost or market value (at the date of such balance sheet) thereof;  (iv) any
     subsequent  write-up  in the book  amount  of any  asset  resulting  from a
     revaluation  thereof from the book amount entered upon  acquisition of such
     asset; and (v) any outstanding stock warrants.

33.  "Term  Loan" has the  meaning  assigned to that term in Section 2.1 of this
     Agreement.

34.  "Term  Note" has the  meaning  assigned to that term in Section 2.1 of this
     Agreement.

                                       28STANDBY AND SUBORDINATION AGREEMENT

         This Standby And Subordination Agreement (the "Agreement") is made as
of the 31st day of May, 2001, by and between Fifth Third Bank, an Ohio banking
corporation ("Bank") and Interlott Technologies, Inc., a Delaware corporation
("Borrower").

         A. Bank has existing loans to Borrower pursuant to the Credit Agreement
between Borrower and Bank dated January 25, 2001, as amended or as it may be
amended from time to time, with the latest amendment being that Third Amendment
to Credit Agreement dated of even date herewith (the "Senior Credit Agreement")
and all associated and ancillary documents evidencing such Obligations (as
defined in the Senior Credit Agreement). When acting in regard to the Senior
Credit Agreement, Bank shall be referred to as "Senior Bank".

         B. Bank has also made loans and financial accommodations to Borrower
pursuant to the Credit Agreement ($5,000,000 Subordinate Debt) by and between
Bank and Borrower of even date herewith as the same may be amended from time to
time (the "Subordinated Debt Credit Agreement"). The debt of the Borrower to
Bank under the Subordinated Debt Credit Agreement (the "Subordinated Claim")
shall be subordinated to the debt of the Borrower to the Bank under the Senior
Credit Agreement on the terms set forth herein. When acting in regard to the
Subordinated Credit Agreement, bank shall be referred to as "Junior Bank".

         C. The Subordinated Claim is secured by security interest in and lien
upon substantially all business assets of Borrower pursuant to the Security
Agreement and other Loan Documents (as defined in the Senior Credit Agreement)
executed by Borrower in favor of Bank on or about January 25, 2001 in connection
with the Senior Credit Agreement. Borrower and Bank agree that the indebtedness
of Borrower to Junior Bank represented by the Subordinated Claim, as well as the
security interest granted to Junior Bank to secure the Subordinated Claim, shall
be in all ways junior and subordinate to the indebtedness of Borrower to Senior
Bank under the Senior Credit Agreement, subject to the terms set forth herein.

         NOW, THEREFORE, the parties hereby agree as follows:

         1. The amount of the Subordinated Claim shall not, in the absence of
the written consent of Senior Bank to the contrary, be increased by the amount
of any and all additional indebtedness, regardless of its nature, hereafter
owing by Borrower to Junior Bank, and in such event "Subordinated Claim" shall
mean the amount above set forth together with such additional indebtedness.

         2. The Subordinated Claim is postponed in favor of, and made junior and
subordinate in all respects to any and all obligations, liabilities and
indebtedness of Borrower to Senior Bank under the Senior Credit Agreement, due
or to become due, direct or contingent and whether now existing or
contemporaneously or hereafter arising or contracted, whether with any other
person or not (all hereinafter called "Senior Debt"), upon the terms and to the
extent set forth herein.

<PAGE>

                   3. Borrower shall make no payments upon the Subordinated
Debt, except that Borrower shall be permitted to make the scheduled monthly
interest payment provided that: (i) Borrower is in compliance with all covenants
set forth in Section 5 of the Senior Credit Agreement; (ii) there is no Event of
Default or breach of the Senior Credit Agreement or the Loan Documents (as
defined therein), and (iii) payment of the proposed payment will not cause
Borrower to be in violation of the terms of the Senior Credit Agreement or the
Loan Documents (as defined therein). Borrower shall further be permitted to make
one principal payment per fiscal quarter provided that Borrower has met each of
conditions (i), (ii), and (iii) above, and further provided that Borrower shall
have maintained available credit under the Facility (as defined in the Credit
Agreement) of at least $2,000,000 plus the amount of the proposed principal
payment on a proforma basis on each of: a) the last day of each month for the
fiscal quarter prior to the quarter in which the proposed principal payment is
to be made, and b) the last day of each month for the fiscal quarter in which
the payment is made.
 .

         4. Except as set forth herein, without the prior written consent of
Senior Bank, Borrower will not make, and Junior Bank will not accept or receive,
any payments, in cash or otherwise, on account of the principal of, the
Subordinated Claim. In the event that Borrower makes any payment upon the
Subordinated Claim in violation of this Agreement, Senior Bank shall recover
such payment from Junior Bank and shall apply any such payment to the Senior
Debt in the manner prescribed in the Senior Credit Agreement.

         5. It is acknowledged that the Subordinated Claim is secured by a
security interest in and lien upon substantially all business assets of the
Borrower (the "Collateral") pursuant to the Security Agreement and other Loan
Documents (as defined in the Senior Credit Agreement) executed by Borrower in
favor of Bank dated January 25, 2001. Notwithstanding anything to the contrary
in the Senior Credit Agreement, the Security Agreement, or the Subordinate Debt
Credit Agreement, the security interest of Junior Bank in the Collateral
securing the Subordinated Claim shall be at all times be subject, junior and
subordinate to any security interest or lien in favor of Senior Bank securing
Borrower's obligations under the Senior Credit Agreement. It is agreed and
acknowledged that all proceeds of the Collateral shall first be applied to
satisfy the Senior Debt in full, and only after the Senior Debt is paid in full
shall any remaining proceeds be applied to the Subordinated Claim. Absent Senior
Bank's written consent, Borrower will not give, and the Junior Bank will not
take, any additional collateral or security for the Subordinated Claim or any
part thereof.

         6. Junior Bank agrees that it shall take no action to enforce its
rights under the Subordinated Debt Credit Agreement, without the prior written
consent of Senior Bank under the Senior Credit Agreement, for a period of one
hundred eighty (180) days after the earlier of a) occurrence of an Event of
Default, or b) a breach under the Subordinated Debt Credit Agreement. Junior
Bank shall provide notice to Senior Bank of the occurrence of any such Event of
Default or breach. The foregoing shall not act in any way to qualify or restrict
Senior Bank's right to exercise its remedies under the Senior Credit Agreement
or the Loan Documents (as defined therein) during such period.

                                       2
<PAGE>

         7.       Bank agrees that until the Senior Debt is satisfied in full:

                    a)   any and all consents and approvals of any secured party
                         relating  to the  Collateral  shall be given by  Senior
                         Bank, with the consent of Junior Bank;

                    b)   the  application  of the net proceeds of any  insurance
                         recovery shall be applied first to the Senior Debt, and
                         thereafter to the Subordinated Claim;

                    c)   any and all  demands  to be made  with  respect  to the
                         Collateral  (including  without limitation demands that
                         Borrower  deliver  possession of Collateral),  shall be
                         made  first by  Senior  Bank  under the  Senior  Credit
                         Agreement in its sole discretion;

                    d)   any  and  all  decisions  relating  to the  release  of
                         Collateral  from the liens of the Bank shall be made by
                         Senior Bank only with the consent of Junior Bank.

         8. Upon any breach of this Agreement by Borrower, Bank, at its option,
may declare all indebtedness of Borrower to it to be immediately due and
payable, and shall, in addition, reapply any and all payments made on account of
the Subordinated Claim in violation of the provisions hereof on account of the
Senior Debt.

         9. This Agreement shall continue in force in any event for so long as
Borrower shall be indebted to Senior Bank under the Senior Credit Agreement.

         10. This Agreement shall be binding upon and shall inure to the benefit
of the respective heirs, executors, administrators, successors and assigns of
Bank and Borrower.

         11. No postponement or delay on the part of Bank in the enforcement of
any right hereunder shall constitute a waiver of such right and any waiver of
any default by Bank of Borrower's obligations hereunder under any indebtedness
of Borrower owed to Bank will not be deemed to be a waiver of any subsequent
default by Borrower.

                       THIS SPACE INTENTIONALLY LEFT BLANK

                                       3
<PAGE>

         WITNESS the due execution hereof as of this 31st day of May, 2001.

                                             FIFTH THIRD BANK

                                             By:      ________________________

                                             Its:     ________________________

                                             INTERLOTT TECHNOLOGIES,
                                             INC.

                                             By:      ________________________

                                             Its:     ________________________

                                       4

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