Document:

Exhibit 10.2

 

Machines Disposal Agreement

 

This
Machines Disposal Agreement is made as of this November 6, 2008 by and
between:

 

Elixir
Gaming Technologies, Inc., a Nevada corporation with registered office situated at 6650 Via Austi Parkway, Suite 170, Las
Vegas, NV  89119 and
correspondence address at Units 2B & 3A, 29th  Floor,
The Centrium, 60 Wyndham Street, Central, Hong Kong ( “EGT Nevada”);

 

and

 

Elixir
Gaming Technologies (Philippines), Inc., a Philippines corporation with registered
office situated at 3rd Floor,
32nd and 5th Avenues, Bonifacio Global City,
Taguig, the Republic of Philippines and correspondence address at Units
2B & 3A, 29th Floor, The Centrium, 60 Wyndham Street,
Central, Hong Kong (“EGT Philippines”);

 

and

 

Elixir International
Limited, a Macau
company with registered office situated at 19th Floor, Zhu Kuan Building, Avenida Xian Xing
Hai, Macau and correspondence address at 38th Floor,
The Centrium, 60 Wyndham Street, Central, Hong Kong (“ELI”).

 

(EGT
Nevada and EGT Philippines are collectively referred to as “EGT Group” and together with ELI are collectively referred
to as the “Parties”, and individually, a “Party”)

 

RECITALS
 
(A)     EGT Group has previously ordered and/or purchased 715 electronic gaming machines (collectively the “Machines”) from ELI. Particulars of the Machines are set out in the attached Schedule A hereto.
 
(B)     As at the date hereof, all the Machines are in the possession of EGT Group notwithstanding the fact that the consideration of part but not all of the Machines have been fully paid by EGT Group.
 
(C)     In relation to those Machines which have been fully paid by EGT Group (the “Fully Paid Machines”) and all those Machines which have not been fully paid by EGT Group (the “Non-Fully Paid Machines”) which are the subject matter of the Note (as defined below), it is agreed that EGT Group shall sell and ELI shall purchase back the Fully-Paid Machines and such Non-Fully Paid Machines which are the subject matter of the Note (as defined below) in accordance with the terms of this Agreement (the “Sale”); and in relation to all those Non-Fully Paid Machines which are not the subject matter of the Note, it is agreed that EGT Group shall return and ELI shall take back the possession of such Non-Fully Paid Machines in accordance with the terms of this Agreement (the “Return of Possession”). The terms “Disposal” and “dispose of” used in this Agreement shall, as the context may require (depending on whether the 

 

1

 

relevant Machine in issue is fully-paid or not or the subject matter of the Note), refer to either the Sale or the Return of Possession.
 
(D)     As at the date hereof, the following amounts were outstanding and owed by EGT Group to ELI : (i) approximately US$14 million being the existing current trade payables (the “Existing Current Trade Payables”); (ii) approximately US$7.4 million being the current portion of the total amount of US$12.1 million due to ELI drawn on a US$15 million trade note dated 21 April 2008 (the “Note”); and (iii) approximately US$4.6 million being the long-term portion of the Note.
 
(E)      The Parties wish to record in this Agreement the terms and conditions of the Disposal of the Machines.
 
NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES as follows:
 
1.     Disposal of Machines
 
Subject to the terms and conditions of this Agreement :
 
(a)   EGT Group hereby agrees to sell to ELI, who agrees to purchase back, the Fully Paid Machines and all those Non-Fully Paid Machines which are the subject matter of the Note (as defined in Recital D above); and
 
(b)   EGT Group hereby agrees to return to ELI, who agrees to take back the possession of all those Non-Fully Paid Machines not being the subject matter of the Note.
 
2.     Price and Payment
 
2.1   In consideration for the Disposal of the Machines by EGT Group, ELI shall pay (subject to Clause 2.2 below) to EGT Group the total amount of US$13,920,660.47  (United States Dollars thirteen million, nine hundred and twenty thousand and six hundred and sixty and Cents forty-seven only) which represents the net book value of the Machines as at 30 September 2008 (the “Disposal Price”).
 
2.2   Payment of the Disposal Price shall be made by way of set-off of an amount equal to the Disposal Price against the Existing Current Trade Payables (as defined in Recital (D) above) (the “Set-Off”). The Parties agree that the Set-Off shall be effected upon the Completion Date (as defined in Clause 4.1 below).
 
2.3   Subject to Clause 7 below, the Disposal Price shall not be inclusive of any taxes, including but not limited to stamp duty, nor any costs or expenses related to the execution of this Agreement and/or the performance of the transactions as contemplated hereunder.

 

2

 

3      Transfer of Property and Risks
 
3.1   To the extent not previously passed to or retained by ELI, all property and title of the Machines shall pass to ELI upon the Completion Date (as defined in Clause 4.1 below).
 
3.2   To the extent not previously passed to or retained by ELI, the risk of the Machines shall pass to ELI upon the  Completion Date.
 
3.3   EGT Group hereby warrants and represents to ELI that it has not granted in favour of any other persons any interest in or any option or other rights in respect of the Machines or any part thereof and that all the Machines are disposed of free of any third parties’ claims, charges or encumbrances (save and except for any vendor’s lien or other claims or encumbrances entitled by the relevant manufacturer(s) or supplier(s) of the relevant Machine(s) by reason of any outstanding amount owed by ELI to such manufacturer(s) or supplier(s)).
 
3.4 Notwithstanding anything to the contrary contained in this Agreement, EGT Group makes no representation or warranty as to the merchantability of the Machines and ELI agrees to purchase the Fully Paid Machines and to take back the possession of the Non-Fully Paid Machines on an ‘as-is’ basis.
 
3.5   EGT Group shall deliver to ELI all transfers, assignments and novations (if necessary) of the Machines together with the relevant documents necessary to give effect to this Agreement.
 

4      Delivery

 

4.1   Subject to the terms and conditions of this Agreement, the Machines shall be delivered or deemed delivered to ELI in accordance with Clauses 4.2 and 4.3 below, on or before 8 December 2008 (or such later date as may be agreed by the Parties in writing)(the “Completion Date”).
 
4.2   On or before the Completion Date, ELI shall notify EGT Group in writing in accordance with Clause 9 as to the manner of delivery of the Machines by EGT Group and the related logistics and charges (the “Delivery Notice”). Upon receipt of the Delivery Notice from ELI, EGT Group shall discuss the relevant delivery logistics and charges as set out in the Delivery Notice with ELI in good faith provided that if no Delivery Notice is given by ELI on or prior to the Completion Date or if no agreement is reached by the Parties regarding the matters set out in the Delivery Notice on or prior to the Completion Date, the Disposal of the Machines shall nevertheless be deemed completed and the delivery of the Machines shall be deemed occurred (“Deemed Delivery”) on the Completion Date and in such case, all the property, title and risks of the Machines (to the 

 

3

 

extent not previously passed or retained by ELI) will be passed to ELI and the Set-Off will be effected, on the Completion Date without further notice.
 
4.3   In the event of Deemed Delivery, and at any time after the Completion Date, ELI shall, at its own costs and expenses, be responsible for taking physical delivery of the Machines from the relevant warehouse(s) of EGT in the countries, namely, either the Philippines or Cambodia, at which the relevant Machines are currently stored by EGT Group and arranging for the transportation (including but not limited to the selection of the common carrier) and insurance during transit, from the relevant warehouse(s) of EGT Group to ELI’s own warehouse(s) or such other premises as designated by it either outside or within the relevant countries in issue.
 
4.4   For the avoidance of doubt, ELI may give Delivery Notice and the Parties may agree on the relevant matters as set out in such Delivery Notice in relation to part but not all of the Machines on or before the Completion Date subject however to the overriding provisions in Clause 4.2 above.
 

5 Assignments

 

Each
Party shall not assign any of its rights, interest, benefits and/or obligations
under this Agreement without the prior express written consent of the other
Party.

 

6 Force
Majeure

 

The non-performance by one of the Parties of
any of the obligations assumed hereunder shall not be considered a breach of
this Agreement if the cause of non-performance qualifies as Force Majeure. For
this purpose, Force Majeure is generally defined as circumstances beyond the
control of the Parties or any of them which were unpredictable at the time of
signing of this Agreement and which render compliance with the obligations of
the parties or parts thereof entirely or partially impossible. Such
circumstances shall include, but shall not be limited to, war, insurrection,
general strikes, governmental actions, earthquakes, floods or fires. The Party
wishing to invoke Force Majeure shall notify the other Party, as soon as
feasible, that such an event has occurred and shall use all possible efforts
(to the extent within its ability and control) to resume performance of its
obligations hereunder as soon as possible and in any event immediately after
the Force Majeure event has ceased.

 

7      Stamp Duty and Legal Cost

 

EGT shall be solely responsible for all stamp
duties and other levies, if any, in relation to the execution of this Agreement.
Each Party shall bear its own legal costs and expenses for the preparation and
execution of this Agreement.

 

4

 

8 Termination

 

8.1   Each Party shall be entitled to terminate this Agreement upon written
notice served to the other Party if:

 

(a)   the other Party is in breach of any terms and
conditions stated herein and where the breach is capable of remedy, failed to
rectify and remedy the breach within 10 days upon the issuance of a written
request for remedy from the non-defaulting Party; or

 

(b)  the other Party goes into liquidation or
bankruptcy or insolvent or enters into any scheme of arrangement of debts with
its creditors.

 

8.2   Any termination of this Agreement shall be without prejudice to any
rights or liabilities of either Party accrued under this Agreement at the date
of termination or in respect of any antecedent breach of the terms hereof prior
to termination or any amount owing, due or payable under this Agreement. For
the avoidance of doubt, any termination of this Agreement shall not have the
effect of invalidating any Disposal of Machine(s) that has been completed or
deemed completed pursuant to Clause 4.2 on
or before the date of termination.

 

9      Notices:

 

9.1   Any notice to be given or served under or
arising out of a provision of this Agreement must be in writing and delivered
by hand or sent by pre-paid post or facsimile or email as the case may be, to
the relevant correspondence address or facsimile number or email address mentioned
hereunder for the Party to whom or upon which the notice is to be given or
served.

 

9.2   A notice delivered or sent in accordance with this clause will be
deemed to have been given and received:

 

(a)   if delivered by hand, upon receipt;

(b)   if posted within Hong Kong, 3 days after
posting or if posted overseas, 7 days after posting;

(c)   if sent by facsimile transmission, upon
confirmation of correct transmission of the facsimile and

(d)   if sent by email, the said email has to be
sent to at least two contact persons of the receiving Party and 24 hours after
sending.

 

Facsimile
number and contact persons and the email addresses of such contact persons :

 

EGT
Group:

Fax
number : (853)-2875 7897

Contact
Persons : Tony Lam and Andy Tsui

Email
Addresses : tonylam@elixirgaming.com  and
andytsui@elixirgaming.com

 

ELI:

 

5

 

Fax
number : (853)-2875 5165

Contact
Persons : Danny Liu and Albert Leong

Email Addresses : dannyliu@elixir.com.hk and
albertleong@elixir.com.hk

 

10   Governing law and Jurisdiction:

 

10.1  This
Agreement shall be governed by and construed in accordance with the laws of Hong
Kong.

 

10.2 The Parties agree to submit to the exclusive jurisdiction of the courts
of Hong Kong for the purpose of resolving any dispute or claim arising out of
or in connection with this Agreement.

 

11   Miscellaneous :

 

11.1    This Agreement embodies the entire understanding between the Parties
respecting the subject matter of this Agreement and supersedes any and all
prior negotiations, correspondence, understandings and agreements between the Parties
in respect of the subject matter hereof. 
Any amendments or changes to the present Agreement shall only be valid
if in writing and signed by a representative of each of the Parties.

 

11.2    All headings to clauses herein are inserted for convenience only and shall not affect the construction of this Agreement. Words importing the singular number shall include the plural and vice versa and a gender shall include all genders and the neuter.
 
11.3    If any one or more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
 
11.4    Any failure by either Party to enforce at any time or for any period of time any of the provisions under this Agreement will not be construed as a waiver of such provisions or of the right of such Party thereafter to enforce each and every provision under this Agreement
 

The
Parties have caused this Agreement to be duly executed the day and year first
above written. This Agreement contains three sets and each Party will hold one
copy.

 

6

 

	
  For and on behalf
  of

  	
   

  
	
  Elixir
  Gaming Technologies, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Joseph
  Pisano

  	
   

  
	
  Title
  

  	
  Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  For and on behalf
  of

  	
   

  
	
  Elixir
  Gaming Technologies (Philippines) Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Joseph
  Pisano

  	
   

  
	
  Title
  

  	
  Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  For and on behalf
  of

  	
   

  
	
  Elixir
  International Limited

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  John
  Wang

  	
   

  
	
  Title
  

  	
  Director

  	
   

  

 

7

 

Schedule A

 

Particulars of the Machines

 

8Exhibit 10.3

 

AMENDMENT TO TRADE CREDIT FACILITY AGREEMENT

AND RELATED NOTE

 

THIS
AMENDMENT TO TRADE CREDIT FACILITY AGREEMENT AND RELATED NOTE (this “Amendment”)
is entered into as of November 6, 2008, by and between Elixir Gaming
Technologies, Inc., a Nevada corporation formerly known as VendingData
Corporation (the “Borrower”), and Elixir International Limited, a Macau company
(the “Lender”).  All capitalized
terms used in this Amendment not otherwise defined herein shall have the same
meaning ascribed to them in the Factility Agreement (as defined in the recitals
below).

 

R  E
C  I  T  A  L  S

 

WHEREAS, the Borrower and the Lender are parties to a Trade Credit
Facility Agreement dated April 21, 2008 (the “Facility Agreement”);

 

WHEREAS, pursuant to the Facility Agreement, the Lender agreed to
provide, from time to time, at its option, trade credits to the Borrower for
the Borrower’s purchase of electronic gaming machines from the Lender in
exchange for the Borrower’s issuance of unsecured promissory note(s) to the
Lender bearing interest at a fixed rate of eight percent (8%) per annum;

 

WHEREAS, upon entering into the Facility Agreement, the Borrower issued
to the Lender the first promissory note in the principal amount of $15,000,000 (the
“Initial Note”). The Initial Note extinguished a then existing current trade
payable of an equivalent amount to the Lender in respect of gaming machines
previously acquired. Pursuant to the terms of the Initial Note, the Borrower is
obligated to repay the principal, plus any accrued interest thereon, in 24
equal monthly installments after the date of issue; and

 

WHEREAS, as at September 30, 2008, there was a total of $12,069,136
outstanding  principal under the Initial
Note (the “Outstanding Principal”). The Borrower and the Lender now wish to
effect the restructuring of the repayment terms of the Outstanding Principal by
issuance of a new promissory note by the Borrower in exchange for the
cancellation of the Initial Note as set forth in this Amendment, and to amend
the terms of certain of the Facility Agreement as set forth in this Amendment.

 

A  G
R  E  E  M  E  N  T

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants,
obligations and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound, the Borrower and the Lender hereby agree as
follows:

 

1.             Exchange of Initial Note for a New Note.  Upon the terms
and conditions set forth herein, the Lender agrees to surrender the Initial
Note for cancellation in exchange for 

 

 

the
issuance by the Borrower of a new promissory note (a draft form of which is
attached hereto as Exhibit A)
with the following terms (the “New Note”) :

 

A.            the Outstanding Principal, plus accrued interest
thereon (at the rate set out in Sub-section B of this Section 1 below),
shall be repaid in 24 equal monthly installments commencing from January 1,
2009; and

 

B.            Interest on the Outstanding Principal under the New
Note will accrue from January 1, 2009 at a rate equal to five percent (5%)
per annum. Interest will be calculated on the basis of 365 days in a year.

 

2.             Amendments to the Facility Agreement

 

2.1           The parties agree that further Advance(s) may be made by the
Lender to the Borrower despite the termination of the Participation Agreement
on the date of this Amendment.  With
respect to this:

 

2.1.1        The words “pursuant to Article V of the Participation Agreement”
in the definition of “Advance” in Section 1 of the Facility Agreement are
hereby deleted.

 

2.1.2        The definition of “Term” in Section 1 of
the Facility Agreement is hereby deleted in its entirety and replaced by the
following:

 

“Term” means a period of three (3) years from
the date of this Agreement.

 

2.2
The parties agree that in respect of any futher Advance(s) by the Lender (at
its absolute discretion and subject to the satisfaction of certain conditions
precedent as more particularly set out in the Facility Agreement), the
applicable interest rate for the principal of such Advance(s), if any, shall be
reduced from eight percent (8%) to five percent (5%) per annum. With respect to
this reduction of interest rate and in accord with the new repayment terms of
the New Note as described in Section 1 of this Amendment above, Section 2.2
of the Facility Agreement is hereby deleted in its entirety and replaced by the
following:

 

“2.2
Payments and Interest on the Note. The Borrower agrees to repay the
principal amount of all Advances, plus accrued interest thereon, in 24 equal
monthly installments or as otherwise agreed to by the parties and as set forth
in the Note.  Interest on the unpaid
principal balance of each Note will accrue from the date of each Advance (save
in the case of the principal balance under the New Note where interest will
accrue from January 1, 2009) at a rate equal to five percent (5%) per
annum.  Interest will be calculated on
the basis of 365 days in a year.”

 

3.             Acknowledgement by the Parties.  For the
avoidance of doubt, the parties acknowledge and agree that :

 

2

 

A.            No repayment of any unpaid principal balance or
interest accrued under the Initial Note by the Borrower is required for the
months of October, November and December, 2008; and

 

B.            the Lenders agrees that it will not make any demand for
immediate payment of any outstanding sums under the New Note save if there is
either (i) an Event of Default; or (ii) Change of Control (subject to
any waiver by the Lender in its sole and absolute discretion).

 

4.             No Further Modifications. 
Except as specifically set forth herein, nothing in this Amendment shall
be construed to enlarge, restrict, or otherwise modify the terms of the Facility
Agreement or the respective duties and obligations of the parties thereto.

 

5.             Authorization; Enforceability.  Other than as
set forth in this Amendment, each of the Borrower and the Lender represents to
the other that: (i) it has all corporate right, power and authority to
enter into this Amendment and to consummate the transactions contemplated
hereunder; and (ii) the execution and delivery by it of this Amendment and
the consummation of the transactions contemplated hereunder will not result in
the violation by it of any law, statute, rule, regulation, judgment or decree
of any court or governmental authority to or by which it is bound, or of any
provision of its organizational documents; and (iii) no consent, approval,
authorization or other order of any governmental authority or other third party
is required to be obtained by it in connection with the authorization, execution
and delivery of this Amendment.

 

6              Miscellaneous.

 

6.1           Amendments and Waivers.  This Amendment
and the Facility Agreement including the New Note set forth the entire
agreement and understanding between the parties as to the subject matter hereof
and thereof and supersedes and replaces all prior and contemporaneous discussions,
negotiations, agreements and understandings (oral or written) with respect to
such subject matter.  This Amendment or
any provision hereof may be (i) amended only by mutual written agreement
of the Borrower and the Lender or (ii) waived only by written agreement of
the waiving party.

 

6.2           Successors and Assigns.  This Amendment
shall be binding upon and inure to the benefit of the Borrower and its
successors and assigns and the Lender and its successors and assigns.

 

6.3           Notices.  Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective
on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number set forth in
this Section 6.3 prior to 3:00 p.m. (Las Vegas time) on a Business
Day, (b) the next Business Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number set
forth on the signature pages attached hereto on a day that is not a
Business Day or later than 3:00 p.m. (Las Vegas time) on any Business Day,
(c) the  5th Business Day
following the date of mailing, if sent by U.S. nationally recognized overnight
courier 

 

3

 

service, or (d) upon actual receipt by the party
to whom such notice is required to be given. 
The address for such notices and communications shall be as follows:

 

	
  If to
  the Borrower:

  	
   

  	
  Elixir
  Gaming Technologies, Inc.

  
	
   

  	
   

  	
  6650 Via Austi Parkway,
  Suite 170

  
	
   

  	
   

  	
  Las Vegas, NV 89119

  
	
   

  	
   

  	
  Facsimile: (702) 733-7197

  
	
   

  	
   

  	
  Attn: Andy Tsui, Vice President - Finance

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to the Lender:

  	
   

  	
  Elixir
  International Limited

  
	
   

  	
   

  	
  19/F.,
  Zhu Kuan Building,

  
	
   

  	
   

  	
  Avenida
  Xian Xing Hai,Macau

  
	
   

  	
   

  	
  Facsimile:
  (853) 2875 5165

  
	
   

  	
   

  	
  Attn.: Danny Liu, Regional
  Financial Officer

  

 

6.4           Governing Law, Venue.  This Amendment and the New Note will be deemed to be a contract made
under and governed by the laws of the State of Nevada.  The Borrower and the Lender hereby consent to
the personal jurisdiction of the state and federal courts located in the State
of Nevada in connection with any controversy related to this Amendment and the
New Note, waive any argument that venue in such forums is not convenient and
agrees that any litigation in connection herewith will be venued the state or
federal courts located in Nevada.

 

6.5           Attorneys’ Fees.  If any action at law or in equity
is necessary to enforce or interpret the terms of this Amendment and the New
Note, the prevailing party, as specifically determined by the court, shall be
entitled to reasonable attorneys’ fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled.

 

6.6           Amendment Controls.  If any topic is addressed both in
the Facility Agreement and in this Amendment, this Amendment shall control.

 

6.7           Counterparts.  This Amendment may be executed in any number
of counterparts, all of which when taken together shall constitute one and the
same instrument binding on all of the parties hereto.  Delivery of an executed counterpart of a signature
page to this Amendment by facsimile shall be as effective as delivery of a
manually executed counterpart of a signature page of this Amendment.

 

6.8           Headings. The
headings of the Sections hereof are inserted as a matter of convenience and for
reference only and in no way define, limit or describe the scope of this
Amendment or the meaning of any provision hereof.

 

6.9           Severability.
In the event that any provision of this Amendment or the application of any
provision hereof is declared to be illegal, invalid or otherwise unenforceable
by a court of competent jurisdiction, the remainder of this Amendment shall 

 

4

 

not be
affected except to the extent necessary to delete such illegal, invalid or
unenforceable provision unless the provision held invalid shall substantially
impair the benefit of the remaining portion of this Amendment.

 

IN
WITNESS WHEREOF, the parties have caused this Amendment to Trade Credit
Facility Agreement and Related Note to be duly executed and delivered as of the
date first set forth above.

 

 

	
   

  	
  “Borrower”

  
	
   

  	
   

  
	
   

  	
  ELIXIR
  GAMING TECHNOLOGIES, INC.,

  
	
   

  	
  a
  Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Andy Tsui

  
	
   

  	
  Vice President - Finance

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “Lender”

  
	
   

  	
   

  
	
   

  	
  ELIXIR
  INTERNATIONAL LIMITED,

  
	
   

  	
  a Macau
  company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Danny Liu

  
	
   

  	
  Regional Financial Officer

  

 

5

 

EXHIBIT A

to Amendment to Trade Credit FacilityAgreement and
Related Note

FORM OF NEW NOTE

 

	
  $

  	
  , 2008

  
	
   

  	
  Las Vegas, Nevada

  

 

FOR VALUE RECEIVED, the
undersigned Elixir Gaming Technologies, Inc., a Nevada corporation (the “Borrower”), promises to pay to the
order of Elixir International Limited, a Macau company (the “Lender”), the principal sum of Twelve Millions and Sixty Nine thousands  and One Hundred and Thirty-Six Dollars ($[12,069,136]), together with interest
thereon, in the manner and upon the terms and conditions set forth herein.  All Advances and all payments of principal
will be recorded by the Lender in its records which records will be presumed
accurate unless such presumption is rebutted by contrary evidence.

 

This Note shall bear
interest on the unpaid principal amount at the rate of five percent (5%) per
annum.  The unpaid principal amount and
accrued and unpaid interest thereon shall be paid in 24 equal monthly
installments of $                ,
commencing on January 1, 2009 and continuing on the 1st day of
each of the next 23 months thereafter, with a final payment due on               ,
2011 at which time all principal and interest then unpaid shall be due and
payable.

 

All payments of principal
and interest under this Note will be made in lawful money of the United States
of America in immediately available funds at such place as may be designated by
the Lender to the Borrower in writing.

 

This Note is referred to in,
and evidences indebtedness incurred under, the Trade Credit Facility Agreement
dated as of April 21, 2008, as amended by the Amendment to Trade Credit
Facility Agreement and Related Note dated as of November      ,
2008 (referred to herein, as it may be amended, modified, supplemented or
replaced from time to time, as the “Trade
Credit Agreement”) between the Borrower and the Lender.  The terms and conditions under which the
Borrower is permitted and required to make prepayments and repayments of
principal of such indebtedness and under which such indebtedness may be
declared to be immediately due and payable are set forth in the Trade Credit
Agreement, the terms and conditions of which are incorporated herein by
reference.

 

All parties hereto, whether
as makers, endorsers or otherwise, severally waive presentment, demand, protest
and notice of dishonor in connection with this Note.

 

This Note is made under and
governed by the internal laws of the State of Nevada, as provided for in the
Trade Credit Agreement.

 

	
   

  	
  ELIXIR
  GAMING TECHNOLOGIES,

  INC.,

  
	
   

  	
  a
  Nevada corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Andy Tsui

  
	
   

  	
   

  	
  Vice President - Finance

  

 

6

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