Document:

exhibit10-1.htm

    Racino
      Royale Inc

     

     

     

     

    September
      11th , 2007

     

     

     

    InterAmerican
      Gaming Corp.

    2499 Glades Road

    Suite 202

    Boca Raton, Florida  33431

    USA

     

    Attention:  Mr. Eric M. Rahn, Chief
      Operating Officer

     

    Dear
      Mr. Rahn:

     

    Re:
      Proposed Acquisition

     

    This
      letter outlines the proposal by Racino Royale Inc. ("RCNR"), a
      company listed on the Over the Counter Bulletin Board (the
      "Exchange"), to acquire, directly or indirectly, all of the
      issued and outstanding securities of InterAmerican Gaming Corp.
      ("IAGC").  The terms of the Acquisition (the
“Acquisition”) shall be as follows:

     

     

    
      	
              1.

            	 	
              RCNR
                and each shareholder of IAGC shall enter into a share exchange agreement
                whereby RCNR shall acquire all the issued and 

              outstanding
                securities of IAGC in exchange for RCNR securities, on a one (1)
                RCNR
                security for each like security of IAGC tendered.

            
	 	 	 
	
              2.

               

            	 	Upon
              closing, all members of the board of directors of RCNR, other than
              John G.
              Simmonds will resign and nominees of IAGC shall be appointed.
	 	 	 
	
              3.

               

            	 	It
              is understood and acknowledged that (i) there are currently 13,500,000
              IAGC Shares issued and outstanding as at the date hereof; and (ii)
              Foundation Opportunities Inc., a company related to Foundation
              Markets Inc., a Limited Market Dealer, is a shareholder of IAGC.
              
	 	 	 
	
              4.

               

            	 	
              Immediately
                upon execution of this non-binding letter agreement, RCNR will commence
                financing the IAGC operations, which financing shall be repayable
                by IAGC
                within 18 months of the date hereof if this letter agreement is terminated
                by IAGC or is terminated by RCNR as a result of any material default
                hereunder on the part of IAGC or if the formal Acquisition agreement
                referred to in paragraph 12 of this letter 
                
                  agreement
                    is not entered into on or before September 30,
                    2007.

                

              

            
	 	 	 
	
              5.

            	 	
              RCNR
                has 33,223,886 common shares ("RCNR Shares") issued and
                outstanding, 5 million warrants owned by MBC Racing(exercisable
                into RCNR Shares at a price of $0.10 per share), and no other warrants,
                options or convertible securities issued and
                outstanding.

            
	 	 	 
	
              6.

               

            	 	
              RCNR
                agrees that it will not issue from treasury any RCNR Shares or otherwise
                grant or issue any options, warrants or other securities

              
                convertible
                  into RCNR Shares prior to the completion of the Acquisition or
                  the
                  expiration or termination of this letter agreement without

                the
                  prior approval of IAGC. 

              

            
	 	 	 
	
              7.

            	 	
              Other
                than in connection with a financing or acquisition, IAGC agrees that
                it
                will not, prior to the completion of the Acquisition or the

              
                expiration
                  or termination of this letter agreement, issue from treasury any
                  IAGC
                  Shares or otherwise grant or issue any options, warrants

                
                  or
                    other securities convertible
                    into IAGC Shares without the prior approval of RCNR, nor will
                    it make any
                    expenditures other than in 

                  the
                    ordinary course of business without the prior approval of RCNR.
                    

                

              

            
	 	 	 
	
              8.

            	 	Until
              the closing of the Acquisition, no press releases or other statements
              regarding this agreement shall be issued by either RCNR or
              
                IAGC
                  without prior consultation and concurrence between RCNR and IAGC,
                  provided
                  that no party shall be prevented from making 
                  
                    any
                      disclosure that is required to be made by law or any rule of
                      a stock
                      exchange or similar organization to which it is bound. It is

                    further
                      understood that the details of this letter agreement will not
                      be shared
                      with any third party until after a press release describing

                    its
                      contents has been released.

                  

                

              

            
	 	 	 
	
              9.

            	 	
              The
                transactions proposed herein are subject to and conditional upon,
                inter alia, the following:

            
	 	  
              	 
	 	(a)
              
               

            	RCNR
              obtaining all requisite consents, acceptances and regulatory approvals
              and
              RCNR agrees to actively pursue and use its best efforts
              
                to
                  obtain such requisite regulatory approvals as soon as
                  possible;

              

            
	 	 	 
	 	(b)
               

            	subject
              to delivery by IAGC of audited financial statements within a reasonable
              time frame following execution of this letter agreement,
              
                RCNR
                  conducting and completing to its satisfaction, acting reasonably,
                  a
                  financial and legal due diligence investigation of
                  IAGC;

              

            
	 	 	 
	 	(c)
               

            	
              IAGC
                conducting and completing to its satisfaction, acting reasonably,
                a
                financial and legal due diligence investigation of RCNR

              September
                30, 2007;

            
	 	 	 
	 	(d)	
              each
                of RCNR and IAGC obtaining all director and shareholder approvals
                as may
                be required under applicable laws or regulatory
                policies;

            
	 	 	 
	 	(e)	the
              negotiation, execution and delivery of the formal Acquisition
              agreement referred to in paragraph 12 of this letter
              agreement;
	 	 	 
	 	(f)	
              the
                facts described in paragraphs 5 and 6 shall remain true and
                correct until completion of the Acquisition and RCNR shall have fulfilled
                all of 

              its
                obligations under this letter
                agreement;

            
	 	 	 
	 	(g)	the
              facts described in paragraphs 3 and 7  shall remain true
              and correct until completion of the Acquisition and IAGC shall have
              fulfilled all of its obligations under this letter
              agreement;
	 	 	 
	 	(h) 	no
              adverse material change in the business affairs, financial
              condition or operations of IAGC shall occur between the date of the
              latest
              available financial statements and the closing of the Acquisition;
              
	 	 	 
	 	(i)	no
              adverse material change in the business affairs, financial
              condition or operations of RCNR shall occur between the date of the
              latest
              available financial statements and the closing of the Acquisition;
              
	 	 	 
	 	(j)	each
              of RCNR and IAGC shall be satisfied that, upon closing of the
              Acquisition, all regulatory requirements have been or are capable of
              being
              satisfied;
	 	 	 
	 	(k)	RCNR
              shall be current in all of its filings under the Securities
              Exchange Act of 1934 at the time of Closing; and
	 	 	 
	 	(l)	RCNR
              shall not have received any notice of removal of their
              quotation for its common stock from the NASD Over-the-Counter Bulletin
              Board.

    

                   
      

     

        The conditions
      contained in paragraphs 9 (c), (f), (i), (k) and (l) hereto are for the sole
      benefit of IAGC and can be waived solely by IAGC. The 

        conditions contained
      in paragraphs 10(b) and (h) hereto are for the sole benefit of RCNR and can
      be
      waived solely by RCNR. The remaining

        conditions set forth
      above are for the mutual benefit of both parties and may only be waived if
      both
      parties agree.

     

     

    
      	 10.	 	Upon
              the satisfaction or waiver of all of the conditions set out in
              paragraph 10, the Acquisition will close within ten (10) business days
              of
              the satisfaction or waiver of the last outstanding condition of this
              letter agreement.
	 	 	 
	 11.	 	It
              is understood by RCNR and IAGC that all costs incurred from this
              point forward up to and including the closing of the Acquisition will
              be
              borne by RCNR.
	 	 	 
	 12.	 	RCNR
              and IAGC agree to negotiate a formal Acquisition agreement on
              the terms contemplated herein in good faith.  The aforementioned
              formal Acquisition agreement will contain covenants, representations,
              warranties, conditions, indemnities and provisions customary for
              transactions of the nature of the Acquisition and will supercede this
              letter agreement upon execution thereof.  The parties acknowledge and
              agree that in connection with finalizing the aforementioned formal
              Acquisition agreement, a particular legal structure, if any, may be
              advisable and therefore the parties agree to, at such time, consider
              available alternatives that would best address any liability, corporate
              or
              tax concerns of the parties.
	 	 	 
	 13.	 	Each
              of RCNR and IAGC hereby agrees that, after the date of acceptance hereof
              to October 31, 2007, unless the parties otherwise agree to terminate
              their
              good faith negotiations and this letter agreement, it shall not, nor
              shall
              it permit any of its respective officers, directors, employees,
              affiliates, agents, consultants advisors or representatives, to solicit,
              initiate, encourage or participate in any discussions or negotiations
              with
              any third party concerning:
	 	 	 
	 	(a) 	any
              sale of any material portion of the business or assets of RCNR or IAGC,
              as
              the case may be, except in the ordinary course 
              of business; or

            
	 	 	 
	 	(b)	any
              acquisition or disposition of shares of RCNR or IAGC or any merger,
              reverse merger, consolidation, business combination or other 
              similar transaction involving RCNR or IAGC, except as
                contemplated herein;

            
	 	 	 
	 	 	 prior
              to execution of the formal Acquisition agreement or
              termination of negotiations under this letter agreement without first
              discussing with and  obtaining the approval of RCNR or IAGC, as the
              case may be.

    

              

    
      	 14.	 	Both
              RCNR and IAGC acknowledge that the terms of this letter agreement are
              non-binding. Both parties further acknowledge that all formal agreements
              evidencing the terms of the Acquisition described herein shall be entered
              into by the necessary parties by September 30,
              2007.

    

     

    This
      letter agreement may be signed in two or more counterparts and by
      facsimile.

     

     

    Yours
      truly,

                                                    

                        
                                                        RACINO
      ROYALE INC.

     

                                                                          
Per: /s/ John Simmonds_

     

                                                                                
      John Simmonds

     

                                                               
                     
President and Chief Executive Officer

     

       
      

                                                                           
      The above proposal is hereby
      accepted            
  

     

                                                                           
      this  11th day of September, 2007.

     

                                                                       
      

     

                                                                           
      INTERAMERICAN GAMING CORP.

                                                                                                                                             

                                                                           
Per: /s/ Eric Rahn         

     

       
       
                                                                  
       Eric M. Rahn

     

                                                               
                        
Chief Operating Officerexh10_60.htm

    EXHIBIT
      10.60

    

    

    

    September
      12, 2007

    

    Mr.
      Tom
      Gallahue

    731
      Fairfield Lake Drive

    Chesterfield,
      MO 63017

    

    RE:
      Employment

    

    Dear
      Tom:

    

    I
      am
      pleased to confirm your continuing full-time employment with Consumer Programs
      Incorporated (the “Company”) on the following terms and conditions:

    

    
      	
              1.  

            	
              Title;
                Duties.  Effective February 3, 2007, you resumed full-time
                service to the Company as
                Executive Vice President, Operations.  Under the direction of
                the Company’s Chief Executive Officer, your duties and responsibilities
                will be that of a lead executive of the Company including helping
                plan,
                implement and achieve the strategies and goals of the Company as
                reviewed
                and established by the Board of Directors.  You will work at
                such hours and at such times as you deem necessary to carry out your
                responsibilities.  In addition to the office the Company
                provides at its corporate offices in St. Louis, MO, you are authorized
                to
                work from your home in St. Louis, MO and Sarasota,
                FL.

            

    

     

    
      	
              2.  

            	Term.  Subject to paragraph 8 of this
              letter agreement, you and the Company hereby agree that you will continue
              as a full-time executive of the Company.

    

     

    
      	
              3.  

            	Base Cash Salary.  As of your date of
              acceptance of this letter agreement, your base cash salary will be
              increased from $205,000 to $230,000 annually.  Your base cash
              salary will be reviewed with you no less than annually and may be
              increased from time to time by the Compensation Committee of the Board
              of
              Directors.

    

      
      
      	
              4.  

            	Options.  On April 15, 2002, you were
              granted options to purchase 5,000 shares of the Company’s
              common stock at a purchase price of $17.00 per share.  Those
              options expire on April 15, 2010.  On October 21, 2002, you were
              granted options to purchase 10,046 shares of the Company’s common stock at
              a purchase price of $12.96 per share.  Those options expire on
              October 21, 2010.  All of the foregoing options are fully vested
              and are exercisable in accordance with the terms of your Stock Option
              Agreements and the CPI Corp. Stock Option
              Plan.

    

     
      
      	
              5.  

            	Annual Bonus.  You will be eligible to
              participate in the Performance Incentive Plan of the Company
              as a key executive of the Company.  It is anticipated that any
              payment due you under this plan will be paid substantially in Restricted
              Shares with annual vesting as determined by the Compensation Committee
              of
              the Board.

    

      

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

    
      	
              6.  

            	 Access, Equipment and
              Expenses.  CPI will provide access to its computer equipment
              and systems and will reimburse you for (i) Internet access at your
              homes
              in St. Louis, MO and Sarasota, FL; (ii) monthly cell phone expenses;
              (iii)
              round-trip travel from your home in Sarasota in the event I request
              that
              you return to St. Louis for business purposes; and (iv) other expenses
              incurred in the course of performing your duties, subject to your
              submission of invoices or other customary proof of
              expense.

    

    

    
      	
              7.  

            	Other Benefits.  As a CPI executive, you
              will generally be entitled to continue participating in other active
              benefit plans and programs on the same terms as the other executives
              in
              the Company.  These benefits currently
              include:

    

      

    
      	
              a.  

            	
              401(k)
                Plan:  This qualified plan allows employees to contribute up to
                25% of base salary annually.  The company matches 50% of
                employee contributions up to a maximum of 5% of salary in common
                stock.

            

    

    

    
      	
              b.  

            	
              Health/Disability:  The
                Company's benefit plan provides for competitive health care coverage
                and
                short-term disability insurance.  Employee premiums are adjusted
                annually.  Long-term
                disability insurance is also
                available.

            

    

     

    
      	
              c.  

            	
              Life
                Insurance:  Key managers of the Company are eligible for life
                insurance equal to two times annual base salary to a maximum benefit
                of
                $400,000.  Once per year, the key managers are offered an option
                to convert group term insurance in excess of $50,000 to a permanent
                cash
                value policy.  Contributions that the Company would have paid on
                the term life premiums are paid towards the permanent insurance premium,
                and the key manager pays the
                balance.

            

    

     

    
      	
              d.  

            	Vacation:  You will be entitled to five weeks
              of paid vacation per year.

      	
              8.  

            	Termination and Severance.  If your
              employment is terminated by the Company without Cause, you shall be
              entitled to a severance amount equal to one year’s base salary, payable in
              a lump sum.  If your employment is terminated for any other
              reason (including retirement, death or disability), you will be entitled
              to no benefits, except as provided by law or under the specific terms
              of
              the Company’s benefit programs in which you are then
              participating.   “Cause” as used herein shall mean any of
              the following acts by or other circumstances:  (i) an act
              committed, after the date of this Agreement, in bad faith and to the
              detriment of the Company or any of its affiliates, (ii) refusal or
              failure
              to act in substantial accordance with any written material direction
              or
              order of the Company, (iii) repeated unfitness or unavailability for
              service, disregard of the Company’s rules or policies after reasonable
              notice and opportunity to cure, or misconduct,
              but not incapacity, (iv) entry of a final order of judgment affirming
              the
              conviction of a crime involving dishonesty, breach of trust, or physical
              or emotional harm to any person, (v) any breach or threatened breach
              of
              Sections 9, 10, 11 or 12 of this Agreement, or (vi) material breach
              or
              violation of any other provision of this Agreement or of any other
              contractual obligation to the Company or any of its
              affiliates.

    

     

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

    
      	
              9.  

            	Insider Status.  As a key executive of
              the Company, you will be considered an “insider” subject to SEC reporting
              of all stock transactions and to pre-clearance of all transactions
              through
              the Company’s General Counsel.

    

           

      	
              10.  

            	Confidentiality.  You will maintain in
              confidence all non-public information you learn about
              the Company and its business, including strategies, plans, prospects
              and
              financial, employee, vendor and customer information.  You will
              not use, copy or disclose any such information except as necessary
              to
              perform the functions of your job or with the prior consent of the
              company.

    

          
      
      	
              11.  

            	Non-Compete and Non-Solicitation.  It is
              agreed that you will not be employed directly by or act in an advisory
              role for any direct competitor of the Company during the period of
              your
              employment and for a period of one year from the date of
              termination.

      	
              12.  

            	Work for Hire.  As an employee, you
              agree that your ideas, concepts, graphics, creative
              or    other products of your work will be owned by the
              Company, and you agree to acknowledge the Company’s ownership in writing
              upon request from the Company.

    

      

      	
              13.  

            	Retention Agreement.  You and the
              Company acknowledge and agree that the Retention Agreement between
              you and
              the Company, dated as of January 12, 2006 and amended as of August
              23,
              2006 and October 26, 2006 (the “Retention Agreement”) has been performed
              to the satisfaction of both parties.

  
      
      	
              14.  

            	Termination of Prior Employment
              Agreement.  Your Employment Agreement with
              the  Company, dated as of November 15, 2002, as amended on
              September 10, 2004 is hereby terminated.

      	
              15.  

            	Release.  Within ten days after your
              termination of employment, you will execute
              and    deliver a release, in a form acceptable to the
              Company, of the Company and its affiliates from all claims arising
              from or
              related to your employment by the Company, including this and all previous
              employment agreements.

    

       

      	
              16.  

            	 Withholding.  The Company may
              withhold from any amounts payable under this agreement such federal,
              state
              or local taxes as shall be required to be withheld pursuant to any
              applicable law or regulation.

    

      

     

    Remainder
      of page intentionally left blank

    

    

    

    

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    

    Please
      acknowledge your agreement to the terms set forth above by signing one copy
      of
      this letter in the space provided below and returning a signed original to
      me.

     

     

     

     

     

    
      	 	Sincerely,	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/Renato
              Cataldo	 
	 	 	Renato
              Cataldo	 
	 	 	President
              & Chief Executive Officer	 
	 	 	 	 

    

     

    
 

                                                                                         

    Accepted
      this 12th day of September, 2007

    

    

    
      	 	 	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/Thomas
              Gallahue	 
	 	 	Thomas
              Gallahue

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