Document:

Unassociated Document

    

    

    

    DATED 
      20 June, 2007

    
 

    EBET
      LIMITED

    

     

    -
      and -

    

    OCTAVIAN
      INTERNATIONAL LIMITED

    

    
 

    _________________

    

    LOAN
      AGREEMENT

    

    __________________

    

    

    

    

    
 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    This
      Loan Agreement dated 20 June, 2007 is made between:

     

    
      	
              (1)

            	
              eBet
                Limited
                (ACN 056 210 778) of Unit 13, 112-118 Talavera Road, Macquarie Park
                NSW
                2113, Australia ("Lender");
                and

            

    

    

    
      	
              (2)

            	
              Octavian
                International Limited,
                incorporated in the United Kingdom and having Company No. 04185988,
                of
                Bury House, 1-3 Bury Street Guildford Surrey GU2 4AW United Kingdom
                ("Borrower").

            

    

     

    RECITALS

    

    
      	
              A.

            	
              The
                Lender has obtained a AUS$5 million bridging loan cash advance facility
                from MFS Causeway, under a loan agreement entered into on or before
                the
                date of this document.

            

    

    

    
      	
              B.

            	
              The
                Borrower reviewed and approved the terms and conditions of that loan
                agreement prior to it being entered
                into.

            

    

    

    
      	
              C.

            	
              The
                Lender has agreed to advance to the Borrower, from the proceeds of
                the MFS
                Causeway Loan, and the Borrower has agreed to borrow and repay, the
                Loan
                on the terms and conditions set out
                below.

            

    

    

    IT
      IS AGREED AS FOLLOWS:

    

    
      	
              1.

            	
              Definitions
                and Interpretation

            

    

     

    
      	
              1.1

            	
              Definitions

            

    

     

    In
      this
      Agreement:

    

    
      	
            	ACP	
              means
                the software developed by the Borrower commonly known as “Accounting,
                Control and Progressive System” which provides all the required processes
                to run route slot operations including machine meter collection,
                collation, accounting, cashless, play tracking, bonussing, multiple
                progressive, data visualisation, asset logs, full asset control,
                Wide Area
                Progressives (WAP) (centrally controlled) and flexible reporting
                with
                remote .net access;

            

      	 	 	 

      	 	Borrower
              Intellectual Property Rights	
              means
                any and all Intellectual Property Rights owned by the Borrower which
                relate to the Maverick and/or Borrower Source
                Code;

            

      	 	
            	 

      	 	Borrower
              Source Code	
              means
                the source code for (i) the ACP (ii) all software embedded within
                the
                Maverick and (iii) the Maverick Games;

            

      	 	
            	 

      	 	Business
              Day	
              means
                any day other than (i) a Saturday or a Sunday or (ii) a day which
                is a
                public or bank holiday in England or (iii) a day banking institutions
                in
                London are required to be closed;

            

      	 	 	 

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

    
      	
            	Charge	
              means
                the deed of charge dated the same date as this Agreement between
                the
                Borrower and the Lender relating to the charge by the Borrower of
                the
                Borrower Intellectual Property Rights in favour of the Lender for
                the
                purpose of this Agreement;

            

      	 	 	 

      	 	Drawdown
              Date	has
              the meaning given in clause 0;

      	 	 	 

      	 	Drawdown
              Notice	means
              a notice substantially in the form set out in Schedule
              1;

      	 	 	 

      	 	Encumbrance	means
              any mortgage, charge, or other security
              interest;

      	 	 	 

      	 	Escrow
              Agreement	
              means
                the agreement dated the same date as this Agreement between the Borrower,
                the Lender and the Escrow Agent relating to the depositing and holding
                of
                the Borrower Source Code with the Escrow Agent for the purpose of
                this
                Agreement;

            

      	 	 	 

      	 	Escrow
              Agent	means
              Assurex Escrow Pty Ltd;

      	 	 	 

      	 	Event
              of Default	
              means
                any of the events specified in clause 0,
                and any of the events specified as an Event of Default in the Charge.
                

            

      	 	 	 

      	 	Interest	has
              the meaning given in clause 0;

      	 	 	 

      	 	Interest
              Rate	means:
              

    

     

    
      
        	 	
                (a)

              	
                during
                  the period from the first Drawdown Date to the date 3 months after
                  that
                  date, 13% (thirteen per cent) per annum;
                  and

              

      

      

      
        	 	
                (b)

              	
                during
                  each successive month following that date, the Interest Rate applicable
                  to
                  the immediately preceding period plus an amount of 0.5% per
                  annum.

              

      

       

    

    
      	 	
              Facility

            	means
              the loan facility provided for in this
              Agreement;

    

    
      	 	 	 

    

    
      	 	Facility
              Period	
              means
                the period starting on the date of this Agreement and ending on the
                first
                to occur of the date on which the MFS Causeway Loan is required to
                be
                repaid, and 31st
                December 2007;

            

    

    
      	 	 	 

    

    
      	 	Finance
              Document	means:

    

     

    
      	
            	(a)	
              this
                Agreement; 

            

    

    

    
      	
            	(b)	
              the
                Charge;

            

    

    

    
      	
            	(c)	
              the
                Escrow Agreement; and

            

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    
      	
            	(d)	
              any
                document or agreement entered into or given under any of the
                above;

            

    

     

    
      	 	Intellectual
              Property Rights	
              means
                patents, trade marks, service marks, trade names, design rights,
                database
                rights, copyrights (including copyright in software), rights in inventions
                and topography rights whether or not registered, including all
                applications and rights to apply for registration throughout the
                world and
                for the duration of the rights;

            

      	 	 	 

      	 	Loan	means
              the amount loaned or to be loaned to the Borrower pursuant to clause
              2.1;

      	 	 	 

      	
            	Maverick	
              means
                the
                flat pack game kit commonly known as “Maverick” developed by the Borrower,
                including any and all modifications thereto and all Maverick
                Games;

            

      	 	 	 

      	 	Maverick
              Games	means
              all games developed by the Borrower for use on a
              Maverick;

      	 	 	 

      	 	MFS
              Causeway	means
              MFS Causeway Financial Services Pty Limited ACN 108 248 782 of Sydney,
              Australia;

      	 	 	 

      	 	MFS
              Causeway Loan	means
              the loan provided by MFS Causeway to the Lender, under the MFS Causeway
              Loan Agreement. 

      	 	 	 

      	 	MFS
              Causeway Loan Agreement	means
              the document which comprises Schedule 3 of this Agreement.
              

    

     

    
      	
              1.2

            	
              Interpretation

            

    

     

    
      	
              1.2.1

            	
              Headings
                are for ease of reference only and shall not affect the construction
                of
                this Agreement.

            

    

     

    
      	
              1.2.2

            	
              References
                to the Lender, the Borrower or any other person include their respective
                successors, permitted assigns and successors in
                title.

            

    

     

    
      	
              1.2.3

            	
              Reference
                to any agreement or instrument shall be to such agreement or instrument
                as
                may from time to time be amended, varied, novated, supplemented or
                substituted.

            

    

     

    
      	
              1.2.4

            	
              References
                to legislation include any statute, bye-law, regulation, rule, subordinate
                or delegated legislation or order; and reference to any legislation
                is to
                such legislation as amended, modified or consolidated from time to
                time at
                the date of this Agreement and to any legislation replacing it or
                made
                under it and in force at the date of this
                Agreement.

            

    

     

    
      	
              2.

            	
              Facility
                and Purpose

            

    

     

    
      	
              2.1

            	
              Facility

            

    

     

    Subject
      to the terms of this Agreement, the Lender agrees to make available to the
      Borrower under this Facility, in accordance with clause 3, a total amount of
      AUS$2.5 million. 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      

      
        	
                2.2

              	
                Purpose

              

      

    

         

    The
      Loan
      may be used by the Borrower for any purpose in connection with the carrying
      on
      of its business, but must not be used to make shareholder loans or
      distributions.

     

    
      	
              2.3

            	
              Application
                

            

    

     

    The
      Borrower must advise the Lender in due course of the manner in which the
      Borrower has used the Loan. 

    

    
      	2.4	
              MFS
                Causeway Loan

            

    

    

    The
      liability of the Lender to advance the whole or any part of the Loan to the
      Borrower is limited to the amount(s) received by it at the relevant time from
      MFS Causeway under the MFS Causeway Loan Agreement. 

    

    
      	
              3.

            	
              Drawdown

            

    

     

    
      	
              3.1

            	
              Subject
                to the other terms of this Agreement, the Borrower shall provide
                a Drawdown Notice to the Lender not less than 4 Business Days before
                the
                date on which it requires the Loan (“Drawdown
                Date”).

            

    

     

    
      	
              3.2

            	
              Subject
                to this Agreement, the Lender will on the Drawdown Date disburse
                the Loan
                (less an establishment fee amounting to 2% of the Loan) in the same
                funds
                as received by it from MFS Causeway, to the account which is specified
                by
                the Borrower in a duly completed Drawdown Notice.
                

            

    

     

    
      	
              3.3

            	
              The
                Borrower must pay to the Lender monthly in arrears a facility fee
                equal to
                2% per annum of the undrawn amount of the
                Facility.

            

    

     

    
      	
              3.4

            	
              The
                parties acknowledge and confirm their intention that a further A$1.5m
                will
                be made available by the Lender from the proceeds of a drawdown under
                the
                MFS Causeway Loan Agreement, to facilitate the production of Maverick
                Flatpack game kits under a Flatpack Sale and Distribution Agreement
                for
                Latin America between the parties dated 26 January, 2007. The parties
                agree not to give the notice referred to in clause 12.1(b) of that
                agreement during 2007. 

            

    

     

    
      	
              4.

            	
              Repayment
                and Prepayment

            

    

     

    
      	
              4.1

            	
              Interest
                shall accrue from day to day on the outstanding balance of the Loan
                at the
                applicable Interest Rate ("Interest").
                The Interest shall be paid by the Borrower monthly in arrears to
                an
                account notified by the Lender to the Borrower.
                The Borrower is required to gross-up for interest withholding tax.
                

            

    

     

    
      	
              4.2

            	
              Subject
                to the other provisions of this Agreement, the Loan (together with
                all
                Interest due and unpaid) shall be repaid in full (unless otherwise
                expressly stated) on the earliest of:

            

    

     

    
      	
              4.2.1

            	
              the
                last day of the Facility Period;
                and

            

    

     

    
      	
              4.2.2

            	
              the
                date the written notice of cancellation is provided by the Lender
                in
                accordance with clause 0.

            

    

     

    
      	
              4.3

            	
              The
                Borrower may, by giving the Lender prior written notice, prepay the
                Loan
                at any time in whole or in
                part.

            

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      
      

      
        	
                5.

              	
                Undertakings

              

      

        

    

    The
      Borrower undertakes that during the Facility Period it shall, unless the Lender
      otherwise agrees in writing:

     

    
      	
              5.1

            	
              Ranking
                of claims:
                ensure that at all times its obligations under this Agreement shall
                rank
                ahead of its other present and future unsecured and unsubordinated
                liabilities, other than those which are mandatorily preferred by
                law and
                not by contract; 

            

    

     

    
      	
              5.2

            	
              Security
                interest:
                not without the Lender’s prior written consent, to create any Encumbrance
                to exist over all or any of the Borrower Intellectual Property Rights
                other than in favour of the Lender;
                and

            

    

     

    
      	
              5.3

            	
              Material
                Litigation:
                advise the Lender promptly in writing of any litigation, arbitration,
                or
                administrative proceedings raised or threatened against the Borrower
                in
                respect of the Borrower Intellectual Property Rights which involves
                (or
                would involve if an adverse finding were made in respect thereof)
                a total
                liability (whether actual or contingent) in excess of
                £25,000.

            

    

     

    
      	
              6.

            	
              Borrower
                Intellectual Property
                Rights

            

    

     

    
      	
              6.1

            	
              As
                a continuing security for the payment and discharge of the repayment
                of
                the Loan and Interest under this Agreement, the Borrower has entered
                into
                the Charge.

            

    

     

    
      	
              6.2

            	
              The
                Borrower shall pay all applicable registration and renewal fees
                payable in respect of the Borrower Intellectual Property Rights and
                shall
                not abandon any existing registrations for any Borrower Intellectual
                Property Rights.

            

    

     

    
      	
              6.3

            	
              The
                Borrow shall not for the duration of the Facility
                Period:

            

    

     

    
      	
              6.3.1

            	
              assign
                ownership of any Borrower Intellectual Property Rights to any person
                (other than the Lender); or

            

    

     

    
      	
              6.3.2

            	
              grant
                any licence or sub-licence of any Borrower Intellectual Property
                Rights to
                any person other than in the ordinary course of business;
                or

            

    

     

    
      	
              6.3.3

            	
              create
                any Encumbrance over the Borrower Intellectual Property Rights (other
                than
                as envisaged by this Agreement or otherwise to the Lender).
                

            

    

     

    
      	
              6.4

            	
              Without
                limitation or prejudice to the rights of the Lender under the Charge,
                the
                Lender may, upon the occurrence of an Event of Default, proceed to
                enforce
                the Charge in accordance with its terms and, by written notice to
                the
                Borrower and the Escrow Agent, require the Escrow Agent to release
                the
                Borrower Source Code to the Lender in accordance with the terms of
                the
                Escrow Agreement. For avoidance of doubt, the release of the Borrower
                Source Code to the Lender in accordance with the terms of the Escrow
                Agreement does not, of itself, operate to transfer ownership of the
                Borrower Intellectual Property Rights to the Lender.
                

            

    

     

    
      	
              6.5

            	
              The
                Borrower represents and warrants to the Lender that the Borrower
                Intellectual Property Rights (are and shall remain throughout the
                Facility
                Period) free from any Encumbrances and third party interests, other
                than
                those of the Lender. 

            

    

     

    
      	
              7.

            	
              Events
                of Default and powers following a
                default

            

    

     

    
      	
              7.1

            	
              Events
                of Default

            

    

     

    Each
      of
      the following shall be an Event of Default:

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	7.1.1	
              Non-payment:
                the Borrower defaults in the payment of the Loan or Interest and
                such
                default is not remedied within 5 Business Days after receipt of written
                notice by the Borrower from the Lender requiring such remedy;
                or

            

    

     

    
      	
              7.1.2

            	
              Non-performance:
                without limitation to clause 7.1.1, the Borrower fails to perform
                any of
                its obligations under this Agreement or any other Finance Document
                and
                such failure is not remedied, if capable of remedy, within 15 Business
                Days after receipt of written notice by the Borrower from the Lender
                requiring the breach to be remedied;
                or

            

    

     

    
      	
              7.1.3

            	
              Misrepresentation:
                any warranty, representation or statement by the Borrower is or becomes
                false, misleading or incorrect when made or regarded as made under
                this
                Agreement or under any Finance Document; or

            

    

     

    
      	
              7.1.4

            	
              Insolvency
                procedures:
                any of the following occur: 

            

    

     

    
      	 	
              (a)

            	
              the
                Borrower or any of its related bodies corporate obtain a moratorium
                or
                other protection from its creditors;
                or

            

    

     

    
      	 	
              (b)

            	
              a
                receiver, administrative receiver, liquidator or administrator is
                validly
                appointed in respect of the Borrower or any of its related bodies
                corporate or a substantial part of their assets;
                or

            

    

     

    
      	 	
              (c)

            	
              the
                Borrower or any of its related bodies corporate becomes or is deemed
                to be
                or admits in writing that it is insolvent or unable to pay its debts;
                

            

    

     

    
      	
              7.1.5

            	
              Attachment
                or distress:
                a
                creditor or encumbrancer commencing any formal court proceedings
                in order
                to enforce any security over any claim against the Borrower or any
                of its
                related bodies corporate or a substantial part of their assets and
                such
                process is not discharged within 15 Business Days;
                or

            

    

     

    
      	
              7.1.6

            	
              Cessation
                of business:
                any of the Borrower or any of its related bodies corporate ceases
                to carry
                on its business or (except in the ordinary course of trade) it sells,
                leases, transfers or otherwise disposes of or threatens to dispose
                of all
                or any substantial part of its undertaking or assets
                (other than to the Lender); or

            

    

     

    
      	
              7.1.7

            	
              Entry
                into possession:
                a
                mortgagee enters into possession or disposes of the whole or a substantial
                part of the assets of the Borrower or any of its related bodies corporate;
                or

            

    

     

    
      	
              7.1.8

            	
              Encumbrance:
                any Encumbrance is or becomes enforceable against any substantial
                asset of
                the Borrower or of any of its related bodies corporate;
                or

            

    

     

    
      	
              7.1.9

            	
              Analogous
                process:
                anything analogous to anything referred to in Clauses 7.1.4 to 7.1.8
                inclusive, or which has substantially similar effect, occurs with
                respect
                to the Borrower or any of its related bodies corporate;
                or

            

    

     

    
      	
              7.1.10

            	
              Unenforceability:

            

    

     

    
      	 	
              (a)

            	
              a
                material provision of a Finance Document is illegal, void, voidable
                or
                unenforceable;

            

    

     

    
      	 	
              (b)

            	
              any
                person becomes entitled to terminate, rescind or avoid any material
                provision of any Finance Document, other than due to a breach by
                the
                Lender of the terms of such Finance Document;
                or

            

    

     

    
      	 	
              (c)

            	
              the
                execution, delivery or performance of a Finance Document by the Borrower
                breaches or results in a contravention of any law or
                regulation.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
              7.2

            	
              At
                any time after the occurrence of an Event of Default the Lender,
                upon the
                Lender giving written notice to the
                Borrower:

            

    

     

    
      	
              7.2.1

            	
              may
                cancel the Facility and require the Borrower immediately to repay
                the Loan
                and Interest payable, whereupon the same shall become immediately
                due and
                payable; or

            

    

     

    
      	
              7.2.2

            	
              may
                place the Facility on demand, whereupon the Loan together with accrued
                Interest payable under this Agreement shall become repayable on
                demand.

            

    

     

    Upon
      the
      service of any such notice, the Lender's obligations under this Agreement shall
      be terminated with immediate effect.

    

    
      	
              8.

            	
              Further
                Assurance

            

    

     

    The
      Borrower undertakes to execute such further acts and documents as may reasonably
      be required by the Lender to implement any security contemplated by this
      Agreement.

    

    
      	
              9.

            	
              Notices

            

    

     

    
      	
              9.1

            	
              Any
                notice, communication, consent or agreement given in connection with
                this
                Agreement must be in writing in a letter or fax (but not by
                email).

            

    

     

    
      	
              9.2

            	
              The
                contact details of the parties in all notices in connection with
                this
                Agreement shall be as set out in Schedule 2 or such other address
                as they
                may notify to one another pursuant to the terms of this Agreement
                from
                time to time.

            

    

     

    
      	
              9.3

            	
              Any
                party may change its contact details by giving 5 Business Days' notice
                to
                the other party.

            

    

     

    
      	
              9.4

            	
              Except
                as provided below, any notice in connection with this Agreement will
                be
                deemed to be given as follows:

            

    

     

    
      	
              9.4.1

            	
              if
                delivered in person, at the time of
                delivery;

            

    

     

    
      	
              9.4.2

            	
              if
                posted, 7 days after being deposited in the post, postage prepaid,
                in a
                correctly addressed envelope; and

            

    

     

    
      	
              9.4.3

            	
              if
                by fax, when received in legible
                form,

            

    

     

    but
      email
      is not permitted.

     

    
      	
              9.5

            	
              A
                communication given under clause 9.4 above but received on a day
                which is
                not a Business Day or after 5.00 pm on a Business Day will be deemed
                to be
                given on the next Business Day. 

            

    

     

    
      	
              10.

            	
              Entire
                Agreement

            

    

     

    This
      Agreement sets out the entire agreement between the parties. It supersedes
      any
      previous agreement between them in relation to the subject matter of this
      Agreement. No other term express or implied and no usage, custom or course
      of
      dealing forms part of or affects this Agreement

    

    
      	
              11.

            	
              Severance

            

    

     

    If
      a term
      of this Agreement is or becomes illegal, invalid or unenforceable in any
      jurisdiction, that will not affect:

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    
      	11.1	
              the
                legality, validity or enforceability in that jurisdiction of any
                other
                term of this Agreement; or

            

    

     

    
      	
              11.2

            	
              the
                legality, validity or enforceability in any other jurisdiction of
                that or
                any other term of this Agreement.

            

    

     

    
      	
              12.

            	
              Non-Waiver

            

    

     

    No
      failure by the Lender to exercise and no delay by the Lender in exercising
      any
      right, power or privilege under this Agreement shall operate as a waiver thereof
      nor shall any single or partial exercise of any right, power or privilege
      preclude any other or further exercise thereof or the exercise of any other
      right, power or privilege. The rights and remedies provided in this Agreement
      are cumulative and not exclusive of any rights or remedies provided by
      law.

    

    
      	
              13.

            	
              Time
                of the Essence

            

    

     

    Except
      as
      otherwise provided for in this Agreement, time shall be of the essence as
      regards the times and dates referred to in this Agreement and as regards any
      times and dates which may be substituted for them by agreement between the
      parties.

    

    
      	
              14.

            	
              Counterparts

            

    

     

    This
      Agreement may be executed in any number of counterparts. This has the same
      effect as if the signatures on the counterparts were on a single copy of this
      Agreement.

    

    
      	
              15.

            	
              Contracts
                (Rights of Third Parties) Acts
                1999

            

    

     

    A
      person
      who is not a party to this Agreement has no right under the Contracts (Rights
      of
      Third Parties) Act 1999 (UK) (or any similar legislation in force in another
      jurisdiction) to enforce or enjoy the benefit of any term of this
      Agreement.

    

    
      	
              16.

            	
              Assignment

            

    

     

    This
      Agreement shall benefit and bind the Borrower, the Lender and their respective
      successors and permitted assigns. Neither party may assign or transfer all
      or
      any of its rights without the prior written consent of the other
      party.

    

    
      	
              17.

            	
              Governing
                Law

            

    

     

    
      	
              17.1

            	
              This
                Agreement is governed by New South Wales
                law.

            

    

     

    
      	
              17.2

            	
              The
                New South Wales courts have exclusive jurisdiction to settle any
                dispute
                in connection with this Agreement. The Borrower appoints Johnson
                Winter
                & Slattery of Level 30, 264 George Street, Sydney NSW Australia as
                its
                agent to accept service of process on its behalf.
                

            

    

     

    AS
      WITNESS
      whereof
      this Agreement has been entered into as an Agreement on the date first written
      above.

     

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Schedule
      1

    

    Drawdown
      Notice

    

    

    
      	To:	
              EBET
                LIMITED

            

    

     

    

    June
      ,
      2007

    

    

    Dear
      Sirs

    

    Loan
      Agreement dated June, 2007 (the “Agreement”)

    

    We
      refer
      to the Agreement. Terms defined in the Agreement shall have the same meaning
      in
      this notice.

    

    We
      hereby
      give you notice that we wish to make a drawdown under the
      Agreement.

    

    
      	1.	
              Amount
                of Loan to be drawn down:.

            

    

    

    
      	2.	
              Payment
                instructions:

            

    

    

    Bank:   

    

    Address:  

    

    Sort
      Code:  

    

    Account
      No:  

    

    Drawdown
      Date:  

    
 

    For
      and on behalf of OCTAVIAN INTERNATIONAL LIMITED 

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Octavian
      International Limited

    Incorporated
      in England and Whales

    Company
      No, 04165988

    10-20
      Bourne Court Road

    Unity
      Trading Estate

    Southend
      Road

    Woodford
      Green

    Essex
      AGS
      SHD

     

     

    
      	To:	
              EBET
                LIMITED

            

    

    Unit
      13

    112-118
      Talavera Road

    Macquarie
      Park, N8W 2113

    Australia

    

    June
      19,
      2007

    

    

    Dear
      Sirs

    

    Loan
      Agreement dated 20 June, 2007 (the “Agreement”)

    

    We
      refer
      to the Agreement. Terms defined in the Agreement shall have the same meaning
      in
      this notice.

    

    We
      hereby
      give you notice that we wish to make a drawdown under the
      Agreement.

    

    
      	1.	
              Amount
                of Loan to be drawn down: AUS $2.5
                million.

            

    

    

    
      	2.	
              Payment
                instructions:

            

    

    

    
      	
            	Bank:	
              HSBC
                Bank pic

            

    

    

    
      	
            	Address:	
              31
                Holborn

            

    

    Holborn
      Circus

    London

    EC1N
      2HR

    

    
      	
            	Sort
              Code:	
              400515

            

    

    

    
      	
            	Account
              No:	
              67652470

            

    

    

    
      	
            	Drawdown
              Date:	
              25
                June 2007 

            

    

     

     

     

    For
      and on behalf of OCTAVIAN INTERNATIONAL LIMITED 

     

    /s/
      Harmen Brenninkmeijer

    Harmen
      Brenninkmeijer

     

    CEO

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Octavian
      International Limited

    Incorporated
      in England and Whales

    Company
      No, 04165988

    10-20
      Bourne Court Road

    Unity
      Trading Estate

    Southend
      Road

    Woodford
      Green

    Essex
      AGS
      SHD

     

     

    
      	To:	
              EBET
                LIMITED

            

    

    Unit
      13

    112-118
      Talavera Road

    Macquarie
      Park, N8W 2113

    Australia

    

    July
      23,
      2007

    

    

    Dear
      Sirs

    

    Loan
      Agreement dated June, 2007 (the “Agreement”)

    

    We
      refer
      to the Agreement. Terms defined in the Agreement shall have the same meaning
      in
      this notice.

    

    We
      hereby
      give you notice that we wish to make a drawdown under the
      Agreement.

    

    
      	1.	
              Amount
                of Loan to be drawn down: AUS $1.5
                million.

            

    

    

    
      	2.	
              Payment
                instructions:

            

    

    

    
      	
            	Bank:	
              HSBC
                Bank pic

            

    

    

    
      	
            	Address:	
              31
                Holborn

            

    

    Holborn
      Circus

    London

    EC1N
      2HR

    

    
      	
            	Sort
              Code:	
              400515

            

    

    

    
      	
            	Swift
              address:	
              GBHBEUCA

            

    

    

    
      	
            	Account
              No:	
              67652470

            

    

    

    
      	
            	Drawdown
              Date:	
              July
                26th
                2007 

            

    

     

     

    For
      and on behalf of OCTAVIAN INTERNATIONAL LIMITED 

     

     

    /s/
      Harmen Brenninkmeijer

    Harmen
      Brenninkmeijer

    CEO

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Schedule
      3

     

    MFS
      Causeway Loan Agreement 

     

    

    

    

    

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    

    
      	
              EXECUTED
                as
                an agreement by 

            	
              )

            	/s/ Ian
              James
	
              EBET
                LIMITED in
                accordance with s 127 of the Corporations Act 2001  

            	
              )

            	
              ...................................................................

            
	 	 	
              Director 
                Ian James 

            
	 	 	 
	 	 	
              ..................................................................

            
	 	 	
              director/secretary

            

    

    

     

    

     

     

    

    
      	
              EXECUTED
                as
                an agreement by 

            	
              )

            	
              /s/
                Harmen Brenninkmeijer 

            
	
              OCTAVIAN
                INTERNATIONAL LIMITED 

            	
              )

            	
              ...................................................................

            
	 	 	
              director 
                Harmen Brenninkmeijer

            
	 	 	 
	 	 	
              ..................................................................

            
	 	 	
              witness

            

    

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    6
      June
      2007

    

    

    Mr.
      Tony
      Toohey

    CEO
      and
      Managing Director 

    eBet
      Limited

    Unit
      13
      112-118 Talavera Road

    NORTH
      RYDE NSW 2113

    

    

    Dear
      Sir:

    

    
      	Re:	
              A$5.0m
                Bridging Loan Cash Advance
                Facility

            

    

    

    Thank
      you
      for considering MFS Causeway for the provision of up to A$5.0 million bridging
      loan cash advance facility to eBet Limited’s wholly owned subsidiary, eBet
      Gaming Systems Pty Limited.

    

    We
      are
      pleased to submit this non-binding, indicative letter of offer for MFS Causeway
      to provide the proposed facility. This letter replaces our indicative letter
      dated 28 May 2007 which was not accepted and is hereby withdrawn. The revised
      proposed terms and conditions are summarized below, with more detailed
      conditions to be set out in an offer letter, which will be made available to
      you
      once we have form approval:

    

    
      	
              Borrower:

            	
              eBet
                Gaming Systems Pty Limited 

               

            
	
              Lender:

            	
              Funds
                managed by MFS Limited group (specific fund to be determined)

               

            
	
              Guarantors:

            	
              eBet
                Limited (“eBet”) and all Australian subsidiaries, including eBet Gaming
                Systems Pty Limited, Maxi Gaming Pty Limited and eBet Systems Pty
                Limited,
                which together are to represent at least 85% of group EBITDA and
                Total
                Assets.

               

            
	
              Facilities
                and Amount:

            	
              A$5
                million Bridging Loan Cash Advance

               

            
	
              Purpose:

            	
              To
                provide working capital funding to the eBet group including enabling
                eBet
                to manufacture and supply Maverick 1000 machines.

               

              The
                parties agree to investigate the potential structuring and funding
                of
                Maverick 1000 terminals on a medium term basis. eBet will provide
                further
                information on its business plans for the Maverick 1000 to enable
                Causeway
                to put forward a funding proposal for consideration by eBet. 

               

            
	
              Facility
                Term:

            	
              6
                months from closing, with Final Maturity Date no later than 31 December
                2007

               

            
	
              Availability
                Period and Drawings:

            	
              60
                days from closing.

               

              Minimum
                initial drawing of $2 million with subsequent drawings to be for
                minimum
                of $100,000 for minimum of 30 days.

               

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	
              Pricing:

            	
              Establishment
                Fee
                -
                $100,000, payable $25,000 on acceptance of this indicative letter,
                $25,000
                on Causeway confirming formal approval and balance on closing

               

              Interest
                Rate
                -
                13.0%pa, increasing by 0.5% pa monthly after 3 months from the initial
                drawdown. Interest will be payable monthly in arrears. 

               

              Facility
                Fee
                -
                2.0% pa of the undrawn commitment amount, payable monthly in
                arrears.

               

            
	 	 
	
              Security
                & Documentation:

            	
              Initially
                the Facility will be unsecured, with eBet providing appropriate
                undertakings that:

               

              (1) There
                will be no further debt other than the proposed $12 million Convertible
                Note Facility; 

              (2) Negative
                pledge i.e. no security to be provided to any party other than
                existing security provided to St. George Bank; 

              (3) eBet
                Limited will enter into underwriting agreement (within 30 days unless
                otherwise agreed) with Southern-Cross Equities or other acceptable
                underwriter for raising minimum $10 million in net proceeds from
                the issue
                of Convertible Notes by eBet Limited; 

              (4) If
                the Facility is not repaid within 3 months from closing, then eBet
                and its
                subsidiaries will provide second ranking Fixed & Floating Charge over
                the assets and undertakings of:

              I. eBet
                Limited

              II. eBet
                Gaming Systems Pty Limited

              III. Maxi
                Gaming Pty Limited

              IV. eBet
                Systems Pty Limited; and 

              V. any
                other Australian member of the eBet group now or in future

               

              The
                Facility will be evidenced by documentation to be executed by and
                satisfactory to all parties. Documentation shall include such terms
                and
                conditions usual for transactions of similar nature, including but
                not
                limited to, payments, events of defaults, cross default, representations
                and warranties, undertakings, negative pledge, covenants, conditions
                precedent, conditions subsequent, change of circumstances clauses,
                indemnity, illegality, submission to jurisdiction, waiver of immunity,
                tax
                gross-up, material adverse change clauses, and set off.

               

              All
                legal costs, stamp duties, GST and other out-of-pocket expenses are
                for
                the account of the Borrower. All payments to be made by the Borrower
                shall
                be made free and clear of all present or future taxes, levies or
                duties or
                other deductions.

               

              Standard
                legal due diligence to be undertaken.

               

            

    

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Conditions
                Precedent:

            	
              All
                Conditions Precedent usual for a facility of this nature to be to
                the
                satisfaction of MFS Causeway.

               

            
	
              Condition
                Subsequent:

            	
              eBet
                Limited to enter into signed underwriting agreement regarding the
                Convertible Note issue to raise minimum net proceeds of $10
                million.

               

            
	
              Repayment:
                

            	
              The
                Facility to be repaid on the earlier of receipt of the net proceeds
                of the
                proposed $12 million Convertible Note Issue and Final Maturity, unless
                otherwise agreed with the Lender.

               

              In
                addition, prior to the signing by eBet Limited of the underwriting
                agreement, any amounts received by the eBet group from Octavian in
                payment
                for the Maverick 1000 units funded by this Facility will be on-paid
                to MFS
                in permanent reduction of the Facility outstanding.

               

              Any
                amount outstanding on Final Maturity must be repaid.

               

            
	
              Early
                Repayment:

            	
              Remitted
                at any time. In the event the Loan’s partially or fully drawn and repaid
                within 3 months of initial drawdown, the Borrower will be required
                to top
                up the interest payments such that a minimum of 3 months interest
                in
                aggregate on full loan commitment amount (whether or not drawn) will
                have
                been paid to the Lender.

               

            
	
              Reporting
                Requirements:

            	
              To
                include:

               

              · Unaudited
                Monthly management accounts (within 30 days of month end);

              · Annual
                audited accounts (within 90 days of financial year end)

              · Financial
                covenants as provided to the existing lender

               

            
	
              Governing
                Law:

            	
              New
                South Wales

            
	
              This
                letter is confidential. You may not disclose it to any person other
                than
                your accountants, lawyers and other appropriate advisors and then
                only on
                a confidential basis and in connection with the proposed
                Facility.

               

              As
                part of our due diligence process, eBet agrees to pay us an Upfront
                Fee of
                $25,000 (plus GST). In addition, you will reimburse us on demand
                for any
                out-of-pocket expenses incurred by us, including legal costs and
                GST,
                during the due diligence process. The Upfront Fee is payable on acceptance
                of this indicative letter. MFS Causeway will refund this Up-Front
                Fee only
                if it withdraws from the process or does not approve the proposed
                Facility. The Upfront fee will be offset against the Establishment
                Fee
                referred to above, on closing. 

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      As
        you
        will appreciate, this letter is indicative only and non-binding. Any facilities
        extended will be conditional upon all further due diligence being satisfactory
        to MFS Causeway; no material change in the eBet business (financial or
        otherwise) or prospects of the eBet business; final credit approval; and
        the
        completion and execution of documentation recording the Facilities and
        Securities satisfactory to MFS Causeway.

       

      Kindly
        indicate your acceptance of the terms of this letter by executing and returning
        a copy of this letter, along with a cheque in the amount of the Upfront Fee
        plus
        GST (please make the cheque for $27,500 payable to MFS Administration Pty
        Limited). Upon our receipt, we will schedule any necessary further confirmatory
        due diligence and finalize our credit investigation.

       

      Sparke
        Helmore will be preparing all legal documents on our behalf. Attached is
        a copy
        of e-mail dated 28 May 2007 from Ben Burney, Partner, Sparke Helmore, settling
        out the scope of their work. Based on the assumptions included therein, Sparke
        Helmore has estimated their legal costs at $5,000 to $7,500 (plus GST and
        disbursements). We understand that eBet Limited wants the legal work to commence
        immediately to allow for signing of legal documentation shortly after formal
        approval is received by MFS. By accepting this letter, you accept that eBet
        Limited will reimburse MFS for any legal costs incurred whether or not MFS
        provides the proposed facility - however, if MFS does not obtain approval
        to
        provide the facility, legal costs will be capped at a maximum of
        $7,500.

       

      We
        will
        have no obligation to you under this letter unless you sign and return the
        enclosed copy together with the expense payment by no later than 5pm Wednesday,
        6 June 2007.

       

      Please
        contact us if you have any questions regarding this letter.

       

      Thank
        you
        again for allowing us the opportunity to provide these services to
        you.

    

     

    Yours
      faithfully, 

     

    
      	/s/
              Tim Martin	/s/
              Leo Leslie
	Tim Martin	Leo Leslie
	Managing Director	Head of Credit
	MFS
              Causeway Financial Services	MFS
              Causeway Financial Services

    

     

     

    ACCEPTED
      AND AGREED BY EBET
      LIMITED

     

    
      	
              /s/
                Anthony Toohey

            	/s/
              Ian James
	
              Name:
                Anthony
                Toohey

            	Ian James 
	
              Title:
                CEO
                and Director

            	Non-Executive Director
	
              Date:
                June
                6, 2007

            	June
              6, 2007

    

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Drawdown
      Notice

    

    

    eBet
      Gaming Systems Pty Ltd ABN 50 086 218 831

    

    
      	To:	
              Perpetual
                Nominees Limited ABN 37 000 733 700 (as custodian for the MFS Premium
                Income Fund) (MFS) 

            

    

    

    
      	Address:	
              c/o
                MFS Limited 

            

    

    Level
      5,
      56 Pitt Street

    Royal
      Exchange NSW 1225

    

    
      	Telephone:	
              (02)
                8259 7235

            

    

    

    
      	Facsimile:	
              (02)
                9252 6201

            

    

    

    Facility
      Agreement

    

    We
      refer
      to the facility offer dated 18 June 2007 between Perpetual Nominees Limited
      ABN
      37 000 733 700 (as custodian for the MFS Premium Income Fund) (MFS),
      eBet
      Gaming Systems Pty Ltd ABN 50 086 218 831 (Borrower)
      and
      each entity listed as a Guarantor in that document (the Facility
      Agreement).

    

    Terms
      used in this Drawdown Notice which are defined in the Facility Agreement have,
      unless the context otherwise requires, the same meanings as in the Facility
      Agreement.

    

    
      	 	
              1.

            	
              The
                Borrower requests MFS to make a drawdown under the Facility details
                of
                which appear below:

            

    

    

    Drawdown
      Date: 22nd
      June,
      2007

    Amount:
      A$2,500,000

    Purpose:
      Working capital

    

    
      	 	
              2.

            	
              The
                representations and warranties provided by us under the Facility
                Agreement
                will be true and not misleading (whether by omission or otherwise)
                on the
                Drawdown Date with reference to the facts and circumstances then
                subsisting. 

            

    

    
      	 	
              3.

            	
              No
                default or event of default (however described) has occurred and
                is
                subsisting or will occur as a result of any drawdown or advance of
                the
                Facility being made.

            

    

    
      	 	
              4.

            	
              This
                drawdown is being applied for the purpose stated on page 13 of the
                Facility Agreement (Approved
                Purpose)
                and attached is sufficient evidence to enable MFS to determine that
                the
                drawdown is to be applied for an Approved
                Purpose.

            

    

    
      	 	
              5.

            	
              The
                Borrower directs MFS to pay the net proceeds of the drawdown in the
                following manner:

            

    

    
      	
            	5.1	
              A$27,500
                to MFS Administration Pty, Limited;

            

    

    
      	
            	5.2	
              A$55,000
                to MFS Causeway Financial Services Pty, Limited;
                

            

    

    
      	
            	5.3	
              A$2,417,500
                to Octavian International Limited.

            

    

    
      	 	
              6.

            	
              Payment
                instructions:

            

    

    

    
      	
            	Account:	
              Octavian
                International Limited 

            

    

    

    
      	
            	Bank:	
              HSBC
                Bank plc

            

    

    

    
      	
            	Address:	
              31
                Holborn 

            

    

    Holborn
      Circus

    London

    EC1N
      2HR

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
      	
            	Sort
              Code:	
              400515

            

    

    

    
      	
            	SWIFT
              Code:	
              MIDLGB
                22

            

    

    

    
      	
            	Account
              No.:	
              67652470

            

    

    

    
      	
            	Drawdown
              Date:	
              22nd
                June, 2007

            

    

     

     

    Dated:
      29th
      June,
      2007

    

    

    For
      and
      on behalf of 

    eBet
      Gaming Systems Pty Ltd

    ABN
      50
      086 218 831 

    By
      its
      authorised representative

     

    
       

      
        	
                
                  ANTHONY
                    PETER TOOHEY

                

              	
                /s/
                  Anthony Toohey

              
	
                
                  Name
                    (print)

                

              	Signature
	 	 
	
                
                  CEO
                    and Managing Director, 

                

              	 
	
                
                  Capacity
                    of signatory

                

              	 

      

       

       

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Schedule
      2

    

    Notification
      Details

    

    
      	Borrower:	 

    

     

    
      	Borrower:
              Address:	
              Bury
                House, 1-3 Bury Street,

            

    

    Guildford,
      Surrey GU2 4AW UK

    

    
      	Fax:	
              +44
                1483 543 640

            

      	 	 

      	All
              to be marked for the attention of:	Harmen
              Brenninkmeijer/Hans Zeidler

      	
            	 

      	Lender:	 

      	 	 

      	Address: 	Suite
              13, 112-118 Talavera Road, 

      	 	North
              Ryde NSW 2113 Australia

      	 	 

      	Fax:	+
              61 2 8817 4770

      	 	
            

      	All
              to be marked for the attention of:	Anthony
              TooheyUnassociated Document

    

    DATED:
      16th
      January,
      2008 

    

    EBET
      LIMITED 

    (“eBet”)

    

    and
      

    

    OCTAVIAN
      INTERNATIONAL LIMITED

    (“Octavian”)

    

    DEED
      OF AGREEMENT

    to
      restructure and resolve the status of 

    outstanding
      debts and other liabilities

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
      Agreement is made on 16th
      January,
      2008 

    

    
      	PARTIES:	
              EBET
                LIMITED
                (ACN 056 210 778) of Suite 13, 112-118 Talavera Road, North Ryde
                NSW 2113
                Australia (“eBet”);
                

            

    

    

    OCTAVIAN
      INTERNATIONAL LIMITED incorporated
      in the United Kingdom (Company No. 04185988) of
      Bury
      House, 1-3 Bury Street, Guildford, Surrey GU2 4AW, UK (“Octavian”).

    

    RECITALS:
      

    

    
      	
              A.

            	
              eBet
                and Octavian have decided not to proceed with eBet’s proposed acquisition
                of Octavian. 

            

    

    

    
      	
              B.
                

            	
              Octavian
                has elected to be acquired by PacificNet Inc of the
                USA.

            

    

    

    
      	
              C.

            	
              eBet
                and Octavian entered into a letter agreement on 11th
                January 2008 (the "Letter")
                dealing with the outstanding debt owed by Octavian to eBet and the
                related
                charge granted by Octavian to eBet over its intellectual property.
                

            

    

    

    
      	
              D.

            	
              The
                Letter requires agreement to be reached on various matters connected
                with
                the Loan Agreement and the Charge. 

            

    

    

    
      	
              E.

            	
              This
                Agreement sets out the terms and conditions of such agreement on
                all
                outstanding issues between eBet and Octavian.

            

    

    

    
      	
              1.

            	
              DEFINITIONS
                AND INTERPRETATION 

            

    

    

    
      	
              1.1

            	
              In
                this Agreement:

            

    

    

    Business
      Day has
      the
      same meaning as in the Charge. 

    

    Charge
      means
      the deed of charge dated 15 August, 2007 as referred to in recital C.

    

    Charged
      Property has
      the
      same meaning as in the Charge. 

    

    Event
      of Default has
      the
      same meaning as in the Charge. 

    

    Facility
      has the
      same meaning as in the Loan Agreement.

    

    Loan
      Agreement means
      the
      loan agreement dated 20 June, 2007 made between eBet (as lender) and Octavian
      (as borrower).

    

    Officer
      has the
      same meaning as in the Charge. 

    

    Project
      Status Report
      means
      the report on work undertaken on a proposed replacement machine monitoring
      systems for Odyssey to be set out at Schedule 2.

     

    
      
        
        

      

      
        Page
          2 of
          13

        
          

        

      

      
        
        

      

    

     

    Reconciliation
      Amount means
      the
      sum of US$173,722.53, as set out in paragraph 10 of the Letter
      and
      Schedule 1, Part B.

    

    Secured
      Moneys has
      the
      meaning given to that term in clause 3.1(a). 

    

    Secured
      Obligations
      has the
      same meaning as in the Charge. 

    

    Standstill
      Period has
      the
      same meaning as in the Charge. 

    

    Transaction
      Documents
      has the
      same meaning as in the Charge, and includes the Letter, this Agreement when
      executed, and any document or agreement so stipulated in this Agreement.

    

    1.2 Interpretation
      

    

    In
      this
      Agreement, unless the contrary intention appears:

    

    
      	 	
              (a)

            	
              a
                document (including this Agreement) includes any variation or replacement
                of it; 

            

    

    

    
      	 	
              (b)

            	
              a
                clause, Schedule, Annexure, Attachment or Exhibit is a reference
                to a
                clause in, or a Schedule, Annexure, Attachment or Exhibit to, this
                Agreement. 

            

    

    

    
      	 	
              (c)

            	
              a
                statute, ordinance, code or other law, includes regulations and other
                instruments under it and consolidations, amendments, re-enactments
                or
                replacements of any of them; 

            

    

    

    
      	 	
              (d)

            	
              law
                includes common law, principles of equity, and laws made by parliament
                (including regulations and other instruments under them, and
                consolidations, amendments, re-enactments or replacements of any
                of
                them);

            

    

    

    
      	 	
              (e)

            	
              the
                singular includes the plural and vice versa;

            

    

    

    
      	 	
              (f)

            	
              the
                word ‘person’ includes an individual, a firm, a body corporate, a
                partnership, joint venture, an unincorporated body or association,
                or any
                government agency; 

            

    

    

    
      	 	
              (g)

            	
              a
                particular person includes a reference to the person’s executors,
                administrators, successors and substitutes (including, persons taking
                by
                novation) and assigns; 

            

    

    

    
      	 	
              (h)

            	
              a
                period of time that dates from a given day or the day of an act or
                event
                is to be calculated exclusive of that day;

            

    

    

    
      	 	
              (i)

            	
              the
                words ‘include’, ‘including’, ‘for example’ or ‘such as’ are not to be
                interpreted as words of limitation, and when such words introduce
                an
                example, they do not limit the meaning of the words to which the
                example
                relates, or to examples of a similar kind.

            

    

    
      
        
        

      

      
        Page
          3 of
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    1.3 NOT
      USED

    

    1.4 Conflicts

    

    In
      the
      event of a conflict between the provisions of (a) the Letter and this Agreement
      and (b) the Transaction Documents, the provisions of the Letter and this
      Agreement will prevail (in that order as between the Letter and this Agreement).
      The provisions of the Charge prevail over all other Transaction Documents.
      

    

    2. TERMS
      OF THE LETTER

    

    
      	
              2.1

            	
              Further
                to the terms of the Letter, eBet hereby agrees for the duration of
                the
                period commencing with the date of this Agreement and ending on 30
                June
                2008 (the "Extension
                Period").

            

    

    

    
      	 	
              (i)

            	
              to
                waive the default potentially arising in connection with the breach
                by
                Octavian of clause 4.2 of the Loan
                Agreement;

            

    

    

    
      	 	
              (iI)

            	
              not
                to take steps to create an Event of Default in connection with the
                default
                referred to at clause 2.1(i) during the Extension
                Period;

            

    

    

    
      	 	
              (iii)

            	
              to
                waive all rights arising from the default referred to at clause 2.1(i)
                pursuant to the Loan Agreement, the Charge or otherwise during the
                Extension Period;

            

    

    

    
      	 	
              (iv)

            	
              that
                the Facility has not been cancelled;
                and

            

    

    

    
      	 	
              (v)

            	
              that
                the Loan and Interest accrued thereon are not immediately due and
                payable.

            

    

    

    3. VARIATIONS
      TO LOAN AGREEMENT 

    

    
      	
              3.1

            	
              Octavian
                and eBet agree that the Loan Agreement is varied as follows:
                

            

    

    

    
      	               (a)       clause1.1	-	
              in
                the definition of “Facility Period”, delete words
                “the first to occur ... and 31 December
                2007” and substitute “30 June 2008, with no further
                extension”;

            

    

     

    
      	 	
              -

            	
              in
                the definition of "Secured Moneys", add the following wording at
                the end
                of the clause "and the reconciliation amount of US$141,707.29, financing
                costs incurred pursuant to clause 4.1(d) and payments due in respect
                of
                trademarks under clause 6.3 of the agreement between the Lender and
                the
                Borrower dated 9 January 2007, being AUS$158,641.59 and any outstanding
                amounts agreed by the Borrower or determined as being due to the
                Lender
                under the Flatpack Sale and Distribution Agreement dated 26 January
                2007"., 

            

    

     

    
      
        
        

      

      
        Page
          4 of
          13

        
          

        

      

      
        
        

      

    

     

    
      	                (b)       clause 4	-	
              the
                insertion of new clauses 4.4 to 4.6 to read as
                follows:

            

    

    

    
      	 	
              “4.4

            	
              The
                Lender and the Borrower acknowledge that the Borrower is seeking
                to
                complete a capital raising in an amount of approximately US$5,000,000
                as
                soon as possible (the "Initial
                Raising")
                and in connection with the Initial Raising the Borrower undertakes
                to the
                Lender:

            

    

    

    
      	 	
              (a)

            	
              notify
                the Lender as soon as reasonably practicable after the Initial Raising
                has
                been completed and provide the Lender with details of the amount
                of the
                Initial Raising;

            

    

    

    
      	 	
              (b)

            	
              to
                ensure that no monies from the Initial Raising or any other source
                are
                paid to or retained by Harmen Brenninkmeijer (other than normal salary
                and
                expense payments) or any entity controlled by Harmen Brenninkmeijer
                whilst
                any Secured Monies remain outstanding ;
                and

            

    

    

    
      	 	
              (c)

            	
              to
                ensure that at least 10% of the Initial Raising is paid to the Lender
                as
                soon as practicable after the funds from the Initial Raising are
                available
                to either Harmen Brenninkmeijer and/or the
                Borrower.

            

    

    

    
      	 	
              4.5

            	
              The
                Borrower notifies the Lender that it is seeking to complete a further
                capital raising after the Initial Raising of an amount in excess
                of
                US$15,000,000, and it is intended that such further capital raising
                be
                completed during March or April 2008 (the "Further Raising").
                The Borrower undertakes to the Lender to use funds from the Further
                Raising to repay all Secured Moneys owing to the Lender pursuant
                to the
                Loan Agreement (as amended).

            

    

     

    
      
        
        

      

      
        Page
          5 of
          13

        
          

        

      

      
        
        

      

    

     

    
      	 	
              4.6

            	
              Nothing
                in clauses 4.4 or 4.5 shall operate as a representation or warranty
                by the
                Borrower to the Lender regarding the terms of (including the amounts),
                and/or completion of, either of the proposed Initial Raising or Further
                Raising. ”

            

    

    

    
      	
              3.2

            	
              Octavian
                and eBet acknowledge that:

            

    

    

    
      	 	
              (a)

            	
              the
                Charge has been amended as set out in paragraph 8 of the Letter (relating
                to the Standstill Period); 

            

    

    

    
      	 	
              (b)

            	
              the
                Loan Agreement has been amended as set out in
                paragraphs:

            

    

    

    (i) 7.
      (a)
      (definition of Interest Rate); 

    

    (ii) 7.
      (b)
      (definition of Facility Period); and 

    

    (iii) 7.1
      (c)
      (amount drawn down) 

    

    of
      the
      Letter; and

     

    
      	 	
              (c)

            	
              clause
                4.1 of the Loan Agreement is now subject to the payment of interest
                provisions set out in paragraph 9 of the
                Letter.

            

    

    

    4.
      RECONCILIATION AND RE-FINANCING AMOUNTS AND ORDER OF
      PAYMENT

    

    
      	
              4.1

            	
              The
                parties acknowledge and agree that:

            

    

    

    
      	 	
              (a)

            	
              eBet
                has been required to refinance current banking facilities with St.
                George
                bank Ltd., and they will be taken over by MFS Causeway Financial
                Services
                Pty. Limited ACN 108 248782 . 

            

    

    

    
      	 	
              (b)

            	
              this
                financing will result in additional costs to eBet in the form of
                fees,
                stamp duty, legal costs, additional interest and other
                items;

            

    

    

    
      	 	
              (c)

            	
              as
                a sign of good faith, eBet will assume responsibility for 25% of
                those
                costs associated with sub clauses (a) & (b) above;
                

            

    

     

    
      
        
        

      

      
        Page
          6 of
          13

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (d)

            	
              Octavian
                is responsible for payment of the remaining 75% of those costs associated
                with sub clauses (a) and (b) above, such amount being
                AUS$158,641.59
                as
                set out in Schedule 1, Part C;
                and

            

    

    

    
      	 	
              (e)

            	
              the
                Reconciliation Amount and the sum payable pursuant to clause 4.1(d)
                above
                shall be due and payable by Octavian to eBet by the earlier to occur
                of 30
                days from the date of this Agreement and completion of the Initial
                Raising
                referred at clause 3.1(b). After the due date for payment, any unpaid
                portion of the Reconciliation Amount only shall attract interest
                at the
                Interest Rate as defined in the Loan Agreement (provided that Octavian
                has
                on such date received a valid invoice in respect of such
                costs).

            

    

    

    
      	
              4.2

            	
              Payment
                of funds by Octavian to repay the Secured Moneys shall be applied
                by eBet
                as follows:

            

    

    

    
      	 	
              (a)

            	
              first,
                in satisfying all sums due in respect of the financing costs referred
                to
                at clause 4.1(d) above, being
                AUS$158,641.59;

            

    

    

    
      	 	
              (b)

            	
              second,
                in satisfying all outstanding sums due in respect of the Reconciliation
                Amount being US$173,722.53;

            

    

    

    
      	 	
              (c)

            	
              third,
                in satisfying the amount of AUS$825,000.00 of the Loan (together
                with all
                unpaid interest accrued thereon);

            

    

     

    
      	 	
              (d)

            	
              fourth,
                in satisfying any sums agreed by Octavian or determined as being
                due to
                eBet under the Flatpack Sale and Distribution Agreement dated 26
                January
                2007; 

            

    

    

    
      	
            	(e)	
              fifth,
                in satisfying all outstanding amounts due in respect of the trademarks
                pursuant to clause 6.3 below; and

            

    

    

    
      	
            	(f)	
              sixth,
                in satisfying all outstanding amounts of the Loan (together with
                all
                unpaid interest accrued thereon).

            

    

     

    5. NON
      PURCHASE OF OCTAVIAN

    

    
      	
              5.1
                

            	
              The
                parties agree not to take any action against each other in respect
                of the
                discontinuance of proposed purchase by eBet of 100% of the issued
                share
                capital of Octavian. 

            

    

    

    
      	
              5.2

            	
              Accordingly,
                except for the issues addressed in this Agreement, the parties release
                and
                discharge each other from and against all actions, claims, proceedings
                and
                other liabilities that have arisen in the period up to the date of
                this
                Agreement (whether directly or indirectly and whether or not known
                or
                disclosed) from the failed sale and purchase of 100% of the issued
                share
                capital of Octavian.

            

    

     

    
      
        
        

      

      
        Page
          7 of
          13

        
          

        

      

      
        
        

      

    

     

     

    
      	6.	
              OCTAVIAN
                EQUIPMENT AND INTELLECTUAL
                PROPERTY

            

    

    

    
      	
              6.1

            	
              eBet
                is currently holding 4 Liberty gaming machines, an ExtraCash sign
                and
                associated equipment at its warehouse in North Ryde (all the property
                of
                Octavian), which it cannot use. 

            

    

    

    
      	
              6.2

            	
              As
                a sign of good faith, eBet will, at its own cost, arrange for the
                return
                of this equipment to Octavian. 

            

    

    

    
      	
              6.3

            	
              Octavian
                acknowledges that eBet has registered the name "Octavian" as
                a trademark in the jurisdictions set out in column 1 of the table
                in
                Schedule 1,
                Part A
                (the "Trademarks")
                and incurred the costs set out in column 2 of the table in Schedule
                1 (the
                "Costs").
                eBet hereby undertakes to Octavian to transfer the Trademarks to
                Octavian
                within 5 Business Days following the date of this Agreement and as
                consideration for this transfer, Octavian undertakes to eBet to pay
                to
                eBet an amount equal to the total of the costs set out in column
                2 of the
                table in Schedule 1,
                Part A
                on
                or before 30 June 2008.

            

    

    

    
      	
              6.4

            	
              eBet
                undertakes to Octavian to do all such acts and things necessary (subject
                to the payment by Octavian of eBets’s reasonable costs) to give effect to
                the undertaking given at clause
                6.3.

            

    

    

    
      	
              7.

            	
              OCTAVIAN
                UNDERTAKINGS

            

    

    

    
      	
              7.1

            	
              Octavian
                undertakes with eBet: 

            

    

    

    
      	
              (a)

            	
              to
                provide eBet with copies of the following:

            

    

    

    
      	
            	(i)	
              Octavian’s
                monthly profit and loss account; 

            

    

    

    
      	 	
              (ii)

            	
              Octavian’s
                balance sheet as at the last day of each calendar month;
                

            

    

    

    
      	 	
              (iii)

            	
              Octavian’s
                monthly cashflows 

            

    

    

    within
      20
      Business Days after the end of each calendar month; and

    

    
      	 	
              (iv)

            	
              the
                audited accounts as and when the same are filed with the Register
                of
                Companies.

            

    

    

    
      	(b)	
              not
                to give security over the Charged Property to any other
                person;

            

    

    

    The
      obligations in sub-clauses (a) and (b) above continue until full and final
      payment of the Secured Moneys and discharge of the other Secured Obligations.
      Octavian may elect to provide this information through its data room with MFS,
      provided eBet has continuing access to this material. If it so elects, Octavian
      must ensure that all the information in the data room is kept up to
      date.

     

    
      
        
        

      

      
        Page
          8 of
          13

        
          

        

      

      
        
        

      

    

     

    
      	
              7.2

            	
              eBet
                undertakes to Octavian to keep all information provided under clause
                7.1(a)(i) to (iii) confidential and to use such information only
                for the
                purpose of reviewing the financial position of Octavian, provided
                that
                eBet shall be permitted to disclose the information to any party
                to whom
                information may be disclosed by eBet pursuant to the Loan Agreement
                and/or
                the Charge (but no other party without Octavian's prior written consent)
                and the obligations of this clause 7.2 shall not apply to any information
                already in the public domain (other than by a breach by eBet or MFS
                of
                this clause or any other confidentiality obligation owed to
                Octavian).

            

    

    

    
      	
              7.3

            	
              Octavian
                will ensure that all outstanding contracts entered into by its personnel
                in the name of Octavian Global Technologies Limited (ACN 056 210
                778) are
                either terminated in accordance with their terms or novated to Octavian
                as
                soon as possible after the date of this
                Agreement.

            

    

    

    
      	
              7.4

            	
              Octavian
                advises that it has or will shortly commission an independent valuation
                of
                the Intellectual Property Rights comprised in the Charged Property,
                and
                undertakes to provide eBet with a copy upon
                receipt.

            

    

    

    
      	
              7.5

            	
              Octavian
                undertakes to eBet to ensure that all Intellectual Property Rights
                deposited with the Software Escrow Agent in
                or about October, 2007 are brought up to date as soon as practicable
                after
                the date of this Agreement, and thereafter kept materially complete,
                up to
                date and in full working order on an ongoing basis while the Secured
                Moneys remain outstanding. 

            

    

    

    
      	
              7.6

            	
              Octavian
                will provide eBet with all information reasonably required by eBet
                in
                respect of the 218 Mavericks owned by eBet which Octavian has placed
                into
                the Latin America market. Octavian consents to eBet endeavouring
                to place
                the remaining 32 Mavericks which it owns into the Asian market, on
                terms
                to be agreed.

            

      	 	 

    

    
      	
              7.7

            	
              Each
                party undertakes to the other to use its reasonable endeavours in
                good
                faith to enter into a binding agreement with the other by no later
                than 31
                January 2008, whereby:

            

    

    

    
      	 	
              (a)

            	
              eBet
                is appointed as Octavian's non-exclusive distributor in the Asia/Pacific
                area (excluding Japan, China and India) of products comprised in,
                or
                derived from, the Charged Property;

            

    

    

    
      	 	
              (b)

            	
              Octavian
                is appointed as non-exclusive distributor of eBet's gaming system
                products
                in Central and South America, Eastern Europe and
                CIS;

            

    

    

    
      	 	
              (c)

            	
              eBet
                is appointed as Octavian's non-exclusive distributor of Logismos
                table
                management products in the Asia area (excluding Japan, China and
                India)
                with effect from the date when Octavian's appointment as Logismos'
                distributor comes into effect.

            

    

     

    
      
        
        

      

      
        Page
          9 of
          13

        
          

        

      

      
        
        

      

    

     

    These
      appointments shall include other required terms to be agreed, including in
      relation to 7.7(c), terms relating to price structure and competition (subject
      to compliance with all applicable law and regulation).

     

    
      	
              7.8

            	
              Octavian
                agrees not to have any further discussions or other communication
                or
                contact with employees or representatives of Odyssey Gaming Limited
                (ACN
                074 735 452) (or any of its subsidiaries or related companies) in
                relation
                to the introduction of gaming system products into the Queensland
                gaming
                market, nor to undertake any further work on the proposed machine
                monitoring system for Odyssey, while any Secured Moneys remain
                outstanding. The terms of a Project Status Report (summarising the
                work
                undertaken to date on the proposed replacement machine monitoring
                system
                for Odyssey) is to be prepared and sent to eBet on or before 31 January
                2008.

            

    

     

    
      	
              8.

            	
              STANDSTILL
                PERIOD

            

    

    

    
      	 	
              Octavian
                and eBet acknowledge and agree that, as at the date of this Agreement,
                a
                Standstill Period has not commenced and that no Standstill Period
                has come
                into existence.

            

    

    

    
      	9.	
              GENERAL
                

            

    

     

    
      	9.1	
              NOT
                USED

            

    

    

    
      	9.2	
              Octavian
                to bear cost

            

    

     

    Any
      thing
      which must be done by Octavian under this Agreement is to be done at the cost
      of
      Octavian.

    

    
      	9.3	
              Notices

            

    

     

    
      	
              (a)

            	
              Any
                notice or other communication, including any request, demand, consent
                or
                approval, to or by a party under or in connection with this
                Agreement:

            

    

     

    
      	 	
              (i)

            	
              must
                be in legible writing and in English addressed as shown
                below:

            

    

    
       

      
        	 	
                (ii)

              	
                if
                  to the eBet:

              

      

    

     

    
      	
              Address:

            	
              Unit
                13 

              112 –
                118 Talavera Road

              North
                Ryde NSW 2113

              AUSTRALIA

            
	
              Facsimile:

            	
              +61
                2 8817 4770

            
	
              Attention:

            	
              Tony
                Toohey

            

    

    
    

     

    
      
        
        

      

      
        Page
          10 of
          13

        
          

        

      

      
        
        

      

    

    
       

    

    
      	(A)  if to Octavian:

    

     

    
      	
              Address:

            	
              Bury
                House, 1-3 Bury Street

              Guildford
                Surrey GU2 4AW UK

            
	
              Facsimile:

            	
              +44
                1483 543 540

            
	
              Attention:

            	
              Harmen
                Brenninkmeijer/Hans Zeidler

            

    

    

     or
      as
      specified to the sender by either party by notice;

    

    
      	
            	(iii)	
              must
                be signed by an Officer of the sender or under the common seal of
                the
                sender;

            

    

     

    
      	
            	(iv)	
              is
                regarded as being given by the sender and received by the
                addressee:

            

    

     

    
      
        
          	
                	(A)	
                  if
                    by delivery in person, when delivered to the
                    addressee;

                

        

      

    

     

    
      	 	
              (B)

            	
              if
                by post, 7 days from
                and including the date of postage;
                or

            

    

     

    
      	
            	(C)	
              if
                by facsimile transmission, whether or not legibly received, when
                transmitted to the addressee, but if the delivery or receipt is on
                a day
                which is not a Business Day or is after 4.00 pm (addressee’s time), it is
                regarded as received at 9.00 am on the following Business Day;
                and

            

    

     

    
      	 	
              (v)

            	 	
              can
                be relied upon by the addressee and the addressee is not liable to
                any
                other person for any consequences of that reliance if the addressee
                believes it to be genuine, correct and authorised by the
                sender.

            

    

     

    
      	
              (b)

            	
              A
                facsimile transmission is regarded as legible unless the addressee
                telephones the sender within 2 hours after the transmission is received
                or
                regarded as received under Clause 9.3(a)(iii)(C) and informs the
                sender
                that it is not legible.

            

    

     

    
      	
              (c)

            	
              In
                this clause 9.3, a reference to an addressee includes a reference
                to an
                addressee’s Officers, agents or employees or any person reasonably
                believed by the sender to be an Officer, agent or employee of the
                addressee.

            

    

     

    9.4 Governing
      law and jurisdiction

     

    
      	
              (a)

            	
              This
                Agreement is governed by the laws of the State of New South
                Wales.

            

    

     

    
      	
              (b)

            	
              Octavian
                irrevocably submits to the non-exclusive jurisdiction of the courts
                of the
                State of New South Wales and courts of appeal from them, and appoints
                Johnson Winter & Slattery of Level 30, 264 George Street, Sydney NSW
                Australia as its agent to accept service of process on its behalf.
                

            

    

     

    
      
        
        

      

      
        Page
          11 of
          13

        
          

        

      

      
        
        

      

    

     

    
      	9.5	
              Prohibition
                and enforceability

            

    

     

    
      	
              (a)

            	
              Any
                provision of, or the application of any provision of, this Agreement
                which
                is prohibited in any jurisdiction is, in that jurisdiction, ineffective
                only to the extent of that
                prohibition.

            

    

     

    
      	
              (b)

            	
              Any
                provision of, or the application of any provision of, this Agreement
                which
                is void, illegal or unenforceable in any jurisdiction does not affect
                the
                validity, legality or enforceability of that provision in any other
                jurisdiction, or of the remaining provisions in that or any other
                jurisdiction.

            

    

     

    
      	9.6	
              Waivers

            

    

     

    
      	
              (a)

            	
              Waiver
                of any right arising from a breach of this Agreement or of any power
                arising upon default under this Agreement or upon the occurrence
                of an
                Event of Default, must be in writing and signed by the party granting
                the
                waiver.

            

    

     

    
      	
              (b)

            	
              Except
                as set out otherwise herein, a failure or delay in exercise, or partial
                exercise, of:

            

    

    

    
      	 	
              (i)

            	
              a
                right arising from a breach of this Agreement or the occurrence of
                an
                Event of Default; or

            

    

     

    
      	 	
              (ii)

            	
              a
                power created or arising upon default under this Agreement or upon
                the
                occurrence of an Event of Default,

            

    

     

    does
      not
      result in a waiver of that right or power.

    

    
      	
              (c)

            	
              A
                party is not entitled to rely on a delay in the exercise or non-exercise
                of a right or power arising from a breach of this Agreement or on
                a
                default under this Agreement or on the occurrence of an Event of
                Default
                as constituting a waiver of that right or
                power.

            

    

     

    
      	
              (d)

            	
              A
                party may not rely on any conduct of another party as a defence to
                exercise of a right or power by that other
                party.

            

    

     

    
      	(e)	
              This
                clause 9.6 may not itself be waived except by
                writing.

            

    

     

    
      	9.7	
              Variation

            

    

     

    
      	
              (a)

            	
              A
                variation of any term of this Agreement must be in writing and signed
                by
                the parties.

            

    

    

    
      	
              (b)

            	
              This
                Agreement (and the Letter as noted in paragraph 12 of the Letter)
                is
                supplementary to the Agreement and
                Charge.

            

    

    

    
      	9.8	
              Cumulative
                Rights

            

    

     

    The
      powers conferred by this Agreement are cumulative and do not exclude any other
      right, power, authority, discretion or remedy of eBet.

     

    
      
        
        

      

      
        Page
          12 of
          13

        
          

        

      

      
        
        

      

    

     

    
      	9.9	
              Assignment

            

    

     

    
      	
              (a)

            	
              Subject
                to any Transaction Document, eBet may assign its rights under this
                Agreement, without the consent of Octavian, where required to do
                so by one
                of its financiers which is a financial institution (subject to the
                production of evidence of the same). Otherwise, assignment may only
                take
                place with the prior written consent of
                Octavian.

            

    

     

    
      	
              (b)

            	
              Octavian
                must not assign any of its rights under this Agreement without
                the prior written consent of eBet.

            

    

     

    
      
        	9.10	
                Further
                  assurances

              

      

    

     

    Octavian
      must execute any document and take any other action required by eBet to give
      effect to this Agreement and to give effect to the transactions the subject
      of
      this Agreement.

    
      
        
        

      

      
        Page
          13 of
          13

        
          

        

      

      
        
        

      

    

     

    EXECUTED
      AS A DEED

    

    
      	
              SIGNED
                AS A DEED by

              OCTAVIAN
                INTERNATIONAL LIMITED

              by
                its duly authorised officers:

            	
              )

              )

              )

            	 
	 	 	 
	 	 	 
	
              Director

            	 	
              Director/Secretary

            
	 	 	 
	 	 	 
	
              Name
                (please print)

            	 	
              Name
                (please print)

            

    

    

    
      	
              SIGNED,
                SEALED AND DELIVERED by

              EBET
                LIMITED 

              (ACN
                056 210 778)

              in
                accordance with section 127 of the Corporations Act:

            	
              )

              )

              )

              )

              )

            	 
	
               

               

            	 	 
	
              Director

            	 	
              Director

            
	
               

              ANTHONY
                TOOHEY 

               

            	 	
               

              IAN
                JAMES

            
	
              Name
                (please print)

            	 	
              Name
                (please print)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]