Document:

fs12011ex10xxxiii_medicalcar.htm

Exhibit 10.33

 

MEDICAL CARE TECHOLOGIES INC.

 

STOCK OPTION AGREEMENT

This Stock Option Agreement (this “Option”) is granted to the Optionee named above by Medical Care Technologies Inc. (the “Corporation”) pursuant to the Medical Care Technologies Inc. 2010 Stock Option Plan (the “Plan”) as of this 1st day of February, 2011, the date this Option was granted pursuant to the Plan.  This Option provides you an option to purchase the number of shares of the Common Stock of the Corporation at the times and on the terms set forth below.

 

1.             Number of Shares and Vesting.  The total number of shares of Common Stock subject to this Option is One Hundred Thousand (100,000) shares.  Subject to the other terms of this Option, this Option shall be exercisable with respect to each installment shown below on or after the date of vesting applicable to such installment as follows:

 

	
Number of Shares

(Installment)

	
Date of Earliest

Exercise (Vesting)

	
50,000

	
August 1, 2011

	
25,000

	
January 1, 2012

	
25,000

	
August 1, 2012

 

2.             Exercise Price.  The exercise price of this Option is Twenty Five Cents ($0.25) per share.  The exercise price per share shall be paid upon exercise of all or any part of each installment which has become exercisable by you.

 

3.             Minimum Exercise.  The minimum number of shares with respect to which this Option may be exercised at any one time is the lesser of Ten Thousand (10,000) or the number of shares as to which this Option is then exercisable.

 

4.             Assurances Upon Exercise. The Corporation may require you, or any person to whom this Option is transferred under paragraph 7 of this Option, as a condition of exercising this Option: (i) to give written assurances satisfactory to the Corporation as to such person’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Corporation who is knowledgeable and experienced in financial and business matters, and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising this Option; and (ii) to give written assurances satisfactory to the Corporation stating that such person is acquiring the Common Stock subject to this Option for such person’s own account and not with any present intention of selling or otherwise distributing the stock.  The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if: (i) the issuance of the shares of Common Stock upon the exercise of this Option has been registered under a then currently effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”); or (ii) as to any particular requirement, a determination is made by counsel for the Corporation that such requirement need not be met in the circumstances under the then applicable securities laws.  The Corporation may, upon advice of counsel to the Corporation, place legends on stock certificates issued upon exercise of this Option as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the stock.

 

  

 

  

 

5.             Term. The term of this Option commences on the date hereof and, unless sooner terminated as set forth below or in the Plan, terminates 10 years from the date it was granted.  This Option may terminate prior to the expiration of its term as set forth in the Plan.

 

6.            Notice of Exercise. This Option may be exercised, to the extent specified above, by delivering written notice of exercise together with the exercise price to the Secretary of the Corporation, or to such other person as the Corporation may designate, during regular business hours, together with such additional documents as the Corporation may then require pursuant to the Plan.  The notice must specify the number of shares to be purchased upon exercise and a date within 15 days after receipt of the notice by the Corporation on which the purchase is to be completed.  The exercise price must be paid in cash.

 

7.             Transferability. This Option is not transferable, except by will or by the laws of descent and distribution, or to a family trust owed by you, and shall be exercisable during your life only by you.  However, you may designate a third party who, in the event of your death, would be entitled to exercise this Option, by providing a written notice in a form satisfactory to the Secretary of the Corporation.

 

8.             State Securities Laws. Notwithstanding the other provisions of this Option, the Corporation may, in its reasonable discretion, determine that the registration or qualification of the shares of Common Stock covered by this Option is necessary or desirable as a condition of or in connection with the exercise of this Option.  If the Corporation makes such a determination, this Option may not be exercised in whole or in part unless and until such registration or qualification shall have been effected or obtained free of any conditions not acceptable to the Corporation, in its reasonable discretion.  The Corporation shall use good faith reasonable efforts to obtain or effect such registration or qualification, but is not required to obtain or effect such registration or qualification.

 

9.             Notices. Any notices provided for in this Option or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Corporation to you, five days after deposit in the United States mail, postage prepaid, addressed to you at the address specified below or at such other address as you hereafter designate by written notice to the Secretary of the Corporation.

 

10.           Supremacy of the Plan. This Option is subject to all the provisions of the Plan, a copy of which is attached, and its provisions are hereby made a part of this Option, including without limitation, the provisions of paragraph 6 of the Plan relating to option provisions.  This Option is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan.  In the event of any conflict between the provisions of this Option and those of the Plan, the provisions of the Plan shall control.

 

  

2

  

 

11.           Optionee Acknowledgments. By executing this Option, you acknowledge and agree as follows:

 

11.1. The Corporation does not warrant that this Option granted herein constitutes an “Incentive Stock Option” within the meaning of that section, or that the transfer of stock acquired pursuant to this Option will be treated for Federal Income Tax purposes as specified in Code § 421.

 

11.2. You understand that if, among other things, you dispose of shares of Common Stock granted to you pursuant to this Option within two years of the granting of this Option to you or within one year of the transfer of such shares to you, or you exercise this Option more than three months after termination of employment, then such shares will not qualify for the beneficial treatment which you might otherwise receive under Code §§ 421 and 422.

 

11.3. You further understand that upon exercise of this Option you may be subject to alternative minimum tax as a result of such exercise.

 

11.4. You and your transferees have no rights as a shareholder with respect to any shares of Common Stock covered by this Option until the date of the issuance of a stock certificate for such shares.

 

11.5. The Corporation is not providing you with advice, warranties or representations regarding any of the legal or tax effects to you with respect to this grant.

 

11.6. You acknowledge that you are familiar with the terms of the grant made to you under this Option and the Plan, that you have been encouraged by the Corporation to discuss the grant and the Plan with your own legal and tax advisers, and that you agree to be bound by the terms of the grant and the Plan.

 

11.7. You represent and warrant that you are acquiring and will hold the Option and the shares received upon exercise of such option for investment for your own account only, and not with a view to, or for resale in connection with, any "distribution" of the option and the shares within the meaning of the Securities Act.

 

11.8. If the shares underlying the Option are not registered, you understand that the option and the shares to be issued upon exercise of the Option have not been registered under the Securities Act or any state securities laws by reason of a specific exemption therefrom and that the option and the shares must be held indefinitely, unless they are subsequently registered under the Securities Act or you obtain an opinion of counsel (in form and substance satisfactory to the Corporation and its counsel) that registration is not required.

 

11.9. You acknowledge that the Corporation is under no obligation to register the option or the shares subject to the Option.

 

11.10. You am aware of the adoption of Rule 144 by the Securities and Exchange Commission under the Securities Act, which permits limited public resales of securities acquired in a non-public offering, subject to the satisfaction of certain conditions. These conditions include (without limitation) that certain current public information about the issuer is available and that the resale occurs only after the holding period required by Rule 144 has been satisfied. I understand that the conditions for resale set forth in Rule 144 have not been satisfied and that the Corporation has no plans to satisfy these conditions in the foreseeable future.

 

  

3

  

 

 

11.11. You will not sell, transfer or otherwise dispose of the option and the shares subject thereto in violation of the Securities Act, the Securities Exchange Act of 1934, or the rules promulgated thereunder, including Rule 144 under the Securities Act or any blue sky or state securities laws or regulations.

 

11.12. You acknowledge that you have received and had access to such information as you consider necessary or appropriate for deciding whether to invest in the option and the shares subject thereto and that you had an opportunity to ask questions and receive answers from the Corporation regarding the terms and conditions of the issuance of the option and the shares subject thereto.

 

11.13. You are aware that your investment in the Corporation is speculative and subject to the risk of complete loss.

 

11.14. You acknowledge that you are acquiring the option and the shares subject thereto to all the terms of the Plan and this Agreement.

 

12.           Withholding. You acknowledge that federal and state income and payroll tax may apply upon exercise of this Option.  If the Corporation determines, in its sole discretion, that withholding is required, you agree that such withholding may be accomplished with respect to the cash compensation (if any) due to you from the Corporation.  If withholding pursuant to the foregoing sentence is insufficient (in the sole judgment of the Corporation) to satisfy the full withholding obligation, you agree that you will pay over to the Corporation the amount of cash or, if acceptable to the Corporation in its sole discretion, property with a value necessary to satisfy such remaining withholding obligation on the date this Option is exercised or at a time thereafter specified in writing by the Corporation.

 

13.           Entire Agreement.  This Option and the Plan constitute the entire agreement between the parties pertaining to the subject matter contained herein and they supersede all prior and contemporaneous agreements, representations, and understandings of the parties.  No supplement, modification, or amendment of this Option shall be binding unless executed in writing by all of the parties.  No waiver of any of the provisions of this Option shall be deemed or shall constitute a waiver of any other provisions, whether or not similar, nor shall any waiver constitute a continuing waiver.  No waiver shall be binding unless executed in writing by the party making the waiver.

 

14.           Governing Law.  This Option shall be construed according to the laws of the State of Nevada and federal law, as applicable.  Any dispute relating to this Option shall be brought and heard only in a court of competent jurisdiction in the State of Nevada.

 

  

4

  

 

	 	  

MEDICAL CARE TECHNOLOGIES INC.

By:      /s/Ning C. Wu                                      

            Ning C. Wu                                           

 

Its:       President                                               

Date:   February 1, 2011                                 

 

The undersigned:

(a)           Acknowledges receipt of the foregoing Option, agrees to its terms and understands that all rights and liabilities with respect to this Option are set forth in this Option and the Plan;

 

(b)           Acknowledges that as of the date of grant of this Option, it sets forth the entire understanding between the undersigned and the Corporation and its affiliates regarding the acquisition of the Common Stock of the Corporation covered by this Option and supersedes all prior oral and written agreements on that subject; and

(c)           Acknowledges that the bona fide services to be rendered by the undersigned to the Corporation shall under no circumstances include (a) any activities which could be deemed by the Securities and Exchange Commission (“SEC”) to constitute investment banking or any other activities requiring the undersigned to register as a broker-dealer under the Securities Exchange Act of 1934; (b) any activities which could be deemed by the SEC to be in connection with the offer or sale of securities or in any capital-raising transaction; or (c) any activities which directly or indirectly promote or maintain a market for the Corporation’s securities.

OPTIONEE:

Name:                      Luis Kuo                                     

 

Address:

Soc. Sec. #:            n/a

Date: February 1, 2011

5ASSET PURCHASE AGREEMENT

 

This ASSET PURCHASE AGREEMENT dated October
1, 2011 (this “Agreement”) between Galaxy Gaming, Inc., a Nevada corporation (the “PURCHASER”), and Prime
Table Games, LLC, a Nevada limited liability company, Prime Table Games UK, a United Kingdom partnership, D&H, a United Kingdom
partnership, (collectively, the “SELLER”), and Derek Webb and Hannah O’Donnell, (each a “SELLER PRINCIPAL”
and collectively the “SELLER PRINCIPALS”).

 

RECITALS

 

WHEREAS, the PURCHASER desires to purchase
from the SELLER and the SELLER desires to sell to the PURCHASER all of SELLER’S rights, title and interest in and to certain
ASSETS of SELLER (as hereinafter defined), all upon the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the representations,
warranties and covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I

CERTAIN DEFINITIONS

 

1.1 CERTAIN DEFINITIONS.

 

(a) The following terms,
when used in this Agreement, shall have the respective meanings ascribed to them below:

 

“ACTION” means
any claim, action, suit, inquiry, hearing, investigation or other proceeding.

 

“AFFILIATE”
means, with respect to a PERSON, any other PERSON that, directly or indirectly, through one or more intermediaries, Controls, is
controlled by or is under common Control with, such PERSON. For purposes of this definition, “CONTROL” (including,
with correlative meanings, the terms “Controlled by” and “under common Control with”) means the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies of a PERSON, whether through
the ownership of stock, as trustee or executor, by CONTRACT or credit arrangement or otherwise.

 

“AGREEMENT” has the meaning set
forth in the preamble hereto.

 

“ANCILLARY AGREEMENTS”
means the BILL OF SALE, the IP ASSIGNMENT, the Contracts Assignment, the Promissory Note, and the Non-competition Agreement.

    	1

    	 

    

“ASSETS” has
the meaning set forth in Section 2.1.

 

“BILL OF SALE” has the meaning set
forth in Section 3.2(b).

 

“CLAIM NOTICE”
means written notification pursuant to Section 7.2(a) of a THIRD PARTY CLAIM as to which indemnity under Section 7.1 is sought
by an INDEMNIFIED PARTY, enclosing a copy of all papers served, if any, and specifying the nature of and basis for such THIRD PARTY
CLAIM and for the INDEMNIFIED PARTY’S claim against the INDEMNIFYING PARTY under Section 7.1, together with the amount or,
if not then reasonably ascertainable, the estimated amount, determined in good faith, of the INDEMNIFIED PARTY’S LOSSES in
respect of such THIRD PARTY CLAIM.

 

“CLOSING” has the meaning set forth
in Section 3.1.

 

“CLOSING DATE” has the meaning set
forth in Section 3.1.

 

“CONTRACT”
means any agreement, lease, debenture, note, bond, evidence of INDEBTEDNESS, mortgage, indenture, security agreement, option or
other contract or commitment (whether written or oral).

 

“DISPUTE NOTICE”
means a written notice provided by any party against which indemnification is sought under this AGREEMENT to the effect that such
party disputes its indemnification obligation under this AGREEMENT.

 

“DISPUTE PERIOD”
means the period ending thirty calendar days following receipt by an INDEMNIFYING PARTY of either a CLAIM NOTICE or an INDEMNITY
NOTICE.

 

“GAAP” means
United States generally accepted accounting principles as in effect from time to time, consistently applied throughout the specified
period and all prior comparable periods.

 

“GOVERNMENTAL ENTITY”
means any government or political subdivision thereof, whether foreign or domestic, federal, state, provincial, county, local,
municipal or regional, or any other governmental entity, any agency, authority, department, division or instrumentality of any
such government, political subdivision or other governmental entity, any court, arbitral tribunal or arbitrator, and any nongovernmental
regulating body, to the extent that the rules, regulations or ORDERS of such body have the force of LAW.

 

“INDEBTEDNESS”
means, as to any PERSON: (i) all obligations, whether or not contingent, of such PERSON for borrowed money (including, without
limitation, reimbursement and all other obligations with respect to surety bonds, letters of credit and bankers’ acceptances,
whether or not matured), (ii) all obligations of such PERSON evidenced by notes, bonds, debentures, capitalized leases or similar
instruments, (iii) all obligations of such PERSON representing the balance of deferred purchase price of property or services,
(iv) all interest rate and currency swaps, caps, collars and similar agreements or hedging devices under which payments are obligated
to be made by such PERSON, whether periodically or upon the happening of a contingency, (v) all INDEBTEDNESS created or arising
under any conditional sale or other title retention CONTRACT with respect to property acquired by such PERSON (even though the
rights and remedies of the seller or lender under such CONTRACT in the event of default are limited to repossession or sale of
such property), (vi) all INDEBTEDNESS secured by any LIEN on any property or asset owned or held by such PERSON regardless of whether
the INDEBTEDNESS secured thereby shall have been assumed by such PERSON or is non-recourse to the credit of such PERSON, and (vii)
all INDEBTEDNESS referred to in clauses (i) through (vi) above of any other PERSON that is guaranteed, directly or indirectly,
by such PERSON.

    	2

    	 

    

“INDEMNIFIED PARTY”
means any PERSON claiming indemnification under any provision of Article VII.

 

“INDEMNIFYING PARTY”
means any PERSON against whom a claim for indemnification is being asserted under any provision of Article VII.

 

“INDEMNITY NOTICE”
means written notification pursuant to Section 7.2(b) of a claim for indemnification under Article VII by an INDEMNIFIED PARTY,
specifying the nature of and basis for such claim, together with the amount or, if not then reasonably ascertainable, the estimated
amount, determined in good faith, of the INDEMNIFIED PARTY’S LOSSES in respect of such claim.

 

 “INTELLECTUAL PROPERTY”
means: all (i) discoveries and inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements
thereto, and all United States, international, and foreign patents, patent applications (either filed or in preparation for filing),
patent disclosures and statutory invention registrations, including all reissuances, divisions, continuations, continuations in
part, extensions and reexaminations thereof, all rights therein provided by international treaties or conventions, (ii) trademarks,
service marks, trade dress, logos, trade names, corporate names, and other source identifiers (whether or not registered) including
all common law rights, all registrations and applications for registration (either filed or in preparation for filing) thereof,
all rights therein provided by international treaties or conventions, and all renewals of any of the foregoing, (iii) all copyrightable
works and copyrights (whether or not registered), all registrations and applications for registration thereof, all rights therein
provided by international treaties or conventions, and all data and documentation relating thereto, (iv) confidential and proprietary
information, trade secrets, know-how (whether patentable or nonpatentable and whether or not reduced to practice), processes and
techniques, research and development information including patent and/or copyright searches conducted by SELLER and/or any third
party, ideas, technical data, designs, drawings and specifications, (v) SOFTWARE, (vi) coded values, formats, data and historical
or current databases, whether or not copyrightable, (vii) domain names, Internet websites or identities used or held for use by
the SELLER, (viii) other proprietary rights relating to any of the foregoing (including without limitation any and all associated
goodwill and remedies against infringements thereof and rights of protection of an interest therein under the LAWS of all jurisdictions),
and (ix) copies and tangible embodiments of any of the foregoing.

 

“IP ASSIGNMENT” has the meaning
set forth in Section 3.2(c).

 

“KNOWLEDGE”
means the actual or constructive knowledge after due inquiry of any current officer or manager of the SELLER.

 

“LAWS” means
all laws, statutes, rules, regulations, ordinances and other pronouncements having the effect of law of the United States, any
foreign country or any domestic or foreign state, county, city or other political subdivision or of any GOVERNMENTAL ENTITY.

    	3

    	 

    

“LIABILITY”
means all INDEBTEDNESS, obligations and other Liabilities of a PERSON, whether absolute, accrued, contingent, fixed or otherwise,
and whether due or to become due (including for TAXES).

 

“LIEN” means
any mortgage, pledge, assessment, security interest, lease, lien, adverse claim, levy, charge or other encumbrance of any kind,
whether voluntary or involuntary (including any conditional sale CONTRACT, title retention CONTRACT or CONTRACT committing to grant
any of the foregoing).

 

“LOSS” means
any and all damages, fines, fees, penalties, deficiencies, losses and expenses (including, without limitation, all interest, court
costs, fees and expenses of attorneys, accountants and other experts or other expenses of litigation or other proceedings or of
any claim, default or assessment).

 

“MATERIAL ADVERSE
EFFECT” means any material adverse effect on the condition, operations, business, prospects or results of sales of the SELLER;
PROVIDED, HOWEVER, that any adverse effect arising out of or resulting from the entering into of this AGREEMENT or the consummation
of the transactions contemplated hereby, shall be excluded in determining whether a MATERIAL ADVERSE EFFECT has occurred.

 

“ORDER” means
any writ, judgment, decree, injunction or similar order of any GOVERNMENTAL ENTITY (in each case whether preliminary or final).

 

“PERSON” means
any individual, partnership, limited liability company, corporation, association, joint stock company, trust, estate, joint venture,
unincorporated organization, GOVERNMENTAL ENTITY or any other entity of any kind.

 

“PURCHASE PRICE” has the meaning
set forth in Section 2.1.

 

“PURCHASER” has the meaning set
forth in the preamble hereto.

 

“RESOLUTION PERIOD”
means the period ending thirty days following receipt by an INDEMNIFIED PARTY of a DISPUTE NOTICE.

 

“RETAINED ASSETS” means those assets
now held by SELLER (represented in Schedule B) that shall remain property of SELLER and excluded from the transfer of ASSETS
to PURCHASER as otherwise provided within this AGREEMENT.

 

“SELLER” has the meaning set forth
in the preamble hereto.

 

“SELLER PRINCIPAL” has the meaning
set forth in the preamble hereto.

 

“SOFTWARE”
means all computer software, including source code, object code, machine-readable code, HTML or other markup language, program
listings, comments, user interfaces, menus, buttons and icons, web applications and all files, data, manuals, design notes, research
and development documents, and other items and documentation related thereto or associated therewith.

    	4

    	 

    

“SOLVENT” means,
with respect to the SELLER, that (a) the SELLER is able to pay its Liabilities, as they mature in the normal course of business,
and (b) the fair value of the assets of the SELLER is greater than the total amount of Liabilities of the SELLER.

 

“TAXES” means
all federal, state, local and foreign income, profits, franchise, license, social security, transfer, registration, estimated,
gross receipts, environmental, customs duty, capital stock, severance, stamp, payroll, sales, employment, unemployment, disability,
use, property, withholding, excise, production, value added, occupancy and other taxes, duties or assessments of any nature whatsoever
together with all interest, penalties, fines and additions to tax imposed with respect to such amounts and any interest in respect
of such penalties and additions to tax.

 

“THIRD-PARTY CLAIM” has the meaning
set forth in Section 7.2(a).

 

(b) For purposes of this
AGREEMENT, except as otherwise expressly provided herein or unless the context otherwise requires: (i) words using the singular
or plural number also include the plural or singular number, respectively, and the use of any gender herein shall be deemed to
include the other genders; (ii) references herein to “Articles”, “Sections”, “subsections”
and other subdivisions without reference to a document are to the specified Articles, Sections, subsections and other subdivisions
of this AGREEMENT; (iii) a reference to a subsection without further reference to a Section is a reference to such subsection as
contained in the same Section in which the reference appears, and this rule shall also apply to other subdivisions within a Section
or subsection; (iv) the words “herein”, “hereof”, “hereunder”, “hereby” and other
words of similar import refer to this AGREEMENT as a whole and not to any particular provision; and (v) the words “include”,
“includes” and “including” are deemed to be followed by the phrase “without limitation”. All
accounting terms used herein and not expressly defined herein shall have the meanings given to them under GAAP.

 

ARTICLE II

PURCHASE AND SALE OF ASSETS

 

2.1 PURCHASE AND SALE OF ASSETS. SELLER hereby
agrees to sell and PURCHASER agrees to purchase all the ASSETS on the following terms and conditions:

 

(a) At the CLOSING, as
hereinafter defined, PURCHASER shall pay SELLER in exchange for the ASSETS a total of Twenty Three Million US Dollars ($23,000,000.00US)
(the “PURCHASE PRICE”) as follows:

 

(i)         
Eight Hundred Thousand US Dollars ($800,000.00US) in the form of 2,000,000 shares of common
stock of Galaxy Gaming, Inc. (the “Shares”). It is acknowledged and agreed that the Shares shall have the value as
stated herein and shall be issued in equal allocations of 1,000,000 Shares each to Derek Webb and Hannah O’Donnell on the
CLOSING DATE as full satisfaction of this portion of the obligation. It is further understood that the sum of each grant of the
Shares to Derek Webb and Hannah O’Donnell and their respective existing holdings of the Shares shall not each exceed 4.99%
of the total issued and outstanding shares of Galaxy Gaming, Inc.; and 

    	5

    	 

    

(ii)       
The balance of Twenty Two Million, Two Hundred Thousand US Dollars ($22,200,000US) paid in
the form of two promissory notes, one made payable to Prime Table Games, LLC in the amount of Twelve Million Two Hundred Thousand
US Dollars ($12,200,000) and the other made payable to Prime Table Games, UK in the amount of Ten Million Dollars ($10,000,000).
The promissory note to Prime Table Games, UK shall be converted to and payable in British Sterling. The conversion from US Dollars
to British Sterling shall be at conversion rate of One United States Dollar is equal to 64/100 British Pound Sterling, ($1.00USD
= £0.64GBP). The promissory notes shall be secured and in the form and substance as provided in the form of Promissory Note
and Security Agreement – US and Promissory Note and Security Agreement – UK, collectively attached hereto as Exhibit A.

 

(b) In consideration of
the payment of the PURCHASE PRICE by the PURCHASER, the SELLER hereby agrees to sell, convey, transfer, assign, grant and deliver
to the PURCHASER, and the PURCHASER hereby agrees to purchase, acquire and accept from the SELLER, at the CLOSING, all of the SELLER’S
right, title and interest in and to all of the ASSETS, free and clear of all LIENS or claims. The term “ASSETS” means:

 

(i)      
All of the business assets of the SELLER, including but not limited to, those assets listed
on Schedule A hereto, to be conveyed to PURCHASER under the BILL OF SALE and the IP ASSIGNMENT; and

 

(ii)    
Those specific RETAINED ASSETS of SELLER listed on Schedule B hereto shall be excluded
from the sale and shall remain the property of SELLER. 

 

(iii)   
All licensing and similar agreements held by SELLER, including but not limited to those agreements
specifically listed on Schedule C hereto, which are related to the Schedule A ASSETS and which are necessary for the full
use and benefit of such Schedule A ASSETS, to be assigned to PURCHASER under the Contracts Assignment.

 

(iv)  
All licensing and similar agreements held by SELLER, including but not limited to those agreements
specifically listed on Schedule D hereto, which are necessary for the full use and benefit of PURCHASER under the Contracts
Assignment.

 

2.2 ASSUMPTION OF LIABILITIES. It is understood
that in no event is the PURCHASER assuming any of the liabilities of SELLER or its business (including tax liabilities), whether
related to the ASSETS or not.

    	6

    	 

    

2.3 OFFSET IN THE EVENT OF SELLER’S BREACH.
In the event of any and all LOSSES suffered, incurred or sustained by PURCHASER or to which PURCHASER becomes subject, resulting
from, arising out of or relating to (i) any misrepresentation or breach of representation or warranty on the part of the SELLER
contained in this AGREEMENT, or (ii) any nonfulfillment of or failure to perform any covenant or agreement on the part of the SELLER
contained in this AGREEMENT, PURCHASER shall be entitled to deduct the amount of such LOSSES from the total balance due and owing
to SELLER under the terms of the Promissory Note and Security Agreements. Such right to offset shall be without prejudice to any
additional remedies available to PURCHASER at law or equity.

 

ARTICLE III

THE CLOSING

 

3.1 CLOSING. The closing of the transactions
contemplated hereby (the “CLOSING”) shall take place on October 1, 2011 at the offices of PURCHASER commencing at 10:00
a.m. P.T., or such other date and time as the parties hereto may mutually determine in writing (the “CLOSING DATE”).

 

3.2 DELIVERY OF ITEMS BY THE SELLER. The SELLER
shall deliver to the PURCHASER at the CLOSING the items listed below:

 

(a) the BILL OF SALE
substantially in the form attached hereto as Exhibit 1 and the IP ASSIGNMENT substantially in the form attached hereto
as Exhibit 2 for the ASSETS, duly executed by the SELLER;

 

(b) the Contracts Assignment
substantially in the form attached hereto as Exhibit 3 duly executed by the SELLER;

 

(c) the Noncompetition
Agreement, substantially in the form attached hereto as Exhibit 4, duly executed by the SELLER and each of the SELLER
PRINCIPALS; and

 

(d) such other
documents and instruments as the PURCHASER may reasonably request.

 

3.3 DELIVERY OF ITEMS BY THE PURCHASER. The
PURCHASER shall deliver to the SELLER at the CLOSING the items listed below:

 

(a) the
Promissory Note and Security Agreement, duly executed by the PURCHASER, substantially in the form attached hereto as Exhibit
A; 

 

(b) the
Shares; and

 

(c) such
other documents and instruments as the SELLER may reasonably request.

    	7

    	 

    

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE SELLER

 

As an inducement to the PURCHASER to enter
into this AGREEMENT, the SELLER and each of the SELLER PRINCIPALS represents and warrants to the PURCHASER as follows:

 

4.1 AUTHORIZATION. The SELLER has full power
and authority to execute and deliver this AGREEMENT and the ANCILLARY AGREEMENTS, as applicable, and to perform its obligations
hereunder and thereunder. This AGREEMENT and the ANCILLARY AGREEMENTS have been duly executed and delivered by the SELLER and,
assuming the due authorization, execution and delivery hereto and thereof by the PURCHASER, constitute the valid and legally binding
obligations of the SELLER enforceable in accordance with their respective terms. SELLER represents that each entity was duly organized
under the laws of their respective jurisdiction, is in good standing, and has obtained all consents and other approvals necessary
under applicable law, for the execution, delivery and performance of this AGREEMENT and the ANCILLARY AGREEMENTS.

 

4.2 BROKERS’ FEES. No agent, broker,
finder, investment banker, financial advisor or other similar PERSON will be entitled to any fee, commission or other compensation
in connection with any of the transactions contemplated by this AGREEMENT on the basis of any act or statement made or alleged
to have been made by the SELLER, any of its AFFILIATES, or any investment banker, financial advisor, attorney, accountant or other
PERSON retained by or acting for or on behalf of the SELLER or any such AFFILIATE.

 

4.3 LITIGATION. There is no pending or, to
the KNOWLEDGE of the SELLER, threatened ACTION against or affecting the ASSETS. Neither the SELLER nor the ASSETS are subject to
any ORDER restraining, enjoining or otherwise prohibiting or making illegal any action by the SELLER, this AGREEMENT or any of
the transactions contemplated hereby.

 

4.4 CONTRACTS. Except as disclosed on Schedules
C and D, there are no executory CONTRACTS (whether license agreements, development agreements or otherwise), to which any of
the ASSETS are bound or subject (other than this AGREEMENT).

 

4.5 INTELLECTUAL PROPERTY.

 

(a) Schedules A, C and
D contain, among other things, a list of all patents, trade names, contracts, trademarks and/or copyrights and all applications
therefore filed by SELLER with respect to the ASSETS and all licenses, if any, relating to the foregoing patents, trade names,
trademarks and/or copyrights and all applications therefore. Schedules A, C and D identify the owner of each item listed
thereon and, in the case of registrations and applications, the application or registration number and date. The SELLER has not
taken any action that could result in any of the registrations and applications for registration for the ASSETS not being valid
and in full force and effect.

    	8

    	 

    

(b) Except as disclosed
on Schedules A, C and D, the SELLER is the sole and exclusive owner of, and has good and marketable title to, all of the
INTELLECTUAL PROPERTY in and to the ASSETS, including the INTELLECTUAL PROPERTY set forth on Schedules A, C and D, free
and clear of all LIENS. Except as disclosed on Schedules A, C and D, the SELLER has sole and exclusive right to develop,
perform, use, create derivative works of, operate, reproduce, market, sell, license, display, distribute, publish and transmit
the INTELLECTUAL PROPERTY in and to the ASSETS. Upon the CLOSING, except as disclosed on Schedules A, C and D, the PURCHASER
will have sole and exclusive right, title and interest in and to the INTELLECTUAL PROPERTY in and to the ASSETS, such that the
PURCHASER shall thereafter have sole and exclusive rights to perform, reproduce, create derivative works of, develop, use, operate,
market, sell, license, display, publish, transmit and distribute the ASSETS, free of all encumbrances. The SELLER has taken reasonable
measures to protect the proprietary nature of the INTELLECTUAL PROPERTY in and to the ASSETS and to maintain in confidence the
trade secrets and confidential information that it owns or uses. Except as disclosed on Schedules A, C and D, no other PERSON
has any rights to any of INTELLECTUAL PROPERTY in and to the ASSETS.

 

(c) With respect to the
SELLER’S INTELLECTUAL PROPERTY contributed to the ASSETS, such INTELLECTUAL PROPERTY does not infringe upon, violate or constitute
a misappropriation of any INTELLECTUAL PROPERTY or other right of any other PERSON. In addition, to SELLER’S KNOWLEDGE, none
of the activities or business presently conducted by the SELLER with respect to the ASSETS infringes or violates, or constitutes
a misappropriation of, any INTELLECTUAL PROPERTY or other right of any other PERSON. Neither the SELLER nor any AFFILIATE of the
SELLER has received any written complaint, claim or notice alleging any such infringement, violation or misappropriation. Further,
neither the SELLER nor any AFFILIATE of the SELLER has disclosed to any PERSON, any product formula, or any portion or aspect of
any product formula, which is part of the ASSETS, including the INTELLECTUAL PROPERTY.

 

4.6 COMPLIANCE WITH LAWS. The SELLER is not
in violation of, has not violated and, to the KNOWLEDGE of the SELLER, is not under investigation with respect to any possible
violation of, and has not been threatened to be charged with any violation of, any ORDER of LAW applicable to the ASSETS.

 

4.7 TITLE TO ASSETS. Except as to INTELLECTUAL
PROPERTY (which warranty is contained in Section 4.6): (i) the SELLER has good and marketable title to all of the ASSETS free and
clear of all LIENS; (ii) this AGREEMENT and the instruments of transfer to be executed and delivered pursuant hereto will effectively
vest in the PURCHASER good and marketable title to all of the ASSETS free and clear of all LIENS; (iii) and no PERSON other than
the SELLER has any ownership interest in any of the ASSETS.

 

4.8 SOLVENCY. The SELLER is and, after consummation
of the transactions contemplated by this AGREEMENT, will be SOLVENT.

    	9

    	 

    

4.9 DISCLOSURE. The representations and warranties
on the part of the SELLER contained in this AGREEMENT, and the statements contained in any of the Schedules or in any certificates
furnished to the PURCHASER pursuant to any provisions of this AGREEMENT, including pursuant to Article VI hereof, do not contain
any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements herein or therein,
in light of the circumstances under which they were made, not misleading.

 

4.10 EXPIRATION OF SELLER’S REPESENTATIONS
AND WARRANTIES. The SELLER’S representations and warranties contained in Section 4 shall continue in full force until the
later of December 31, 2018 or upon the expiration of any of the ASSETS, provided that, after December 31, 2018, the SELLER’S
representations and warranties shall apply to only those ASSETS that are not expired.

 

Seller shall not be liable for a claim under
this Section 4 unless the Purchaser has given the Seller notice of the claim, specifying (in reasonable detail) the nature of the
claim and the amount claimed within the period of the term of the promissory note.

 

 

    	10

    	 

    

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

As an inducement to the SELLER to enter into
this AGREEMENT, the PURCHASER represents and warrants to the SELLER as follows:

 

5.1 AUTHORIZATION. The PURCHASER has full power
and authority to execute and deliver this AGREEMENT and the ANCILLARY AGREEMENTS, as applicable, and to perform its obligations
hereunder and thereunder. This AGREEMENT and the ANCILLARY AGREEMENTS have been duly executed and delivered by the PURCHASER and,
assuming the due authorization, execution and delivery hereof and thereof by the SELLER, constitute the valid and legally binding
obligations of the PURCHASER enforceable in accordance with their respective terms. PURCHASER is a corporation organized under
the LAWS of the State of Nevada, in good standing, and has obtained all consents and other approvals necessary under Nevada law,
its Articles of Incorporation, and its Bylaws necessary for the execution, delivery and performance of this AGREEMENT and the ANCILLARY
AGREEMENTS.

 

5.2 BROKERS’ FEES. No agent, broker,
finder, investment banker, financial advisor or other similar PERSON will be entitled to any fee, commission or other compensation
in connection with any of the transactions contemplated by this AGREEMENT on the basis of any act or statement made or alleged
to have been made by the PURCHASER, any of its AFFILIATES, or any investment banker, financial advisor, attorney, accountant or
other PERSON retained by or acting for or on behalf of the PURCHASER or any such AFFILIATE.

 

5.3 EXPIRATION OF PURCHASER’S REPESENTATIONS
AND WARRANTIES. The PURCHASER’S representations and warranties contained in Section 5 shall continue in full force until
the earlier of December 31, 2018 or upon full satisfaction of the Promissory Note.

 

ARTICLE VI

CONDITIONS TO OBLIGATION TO CLOSE

 

6.1 CONDITIONS TO CLOSING BY THE PURCHASER.
The obligation of the PURCHASER to effect the transactions contemplated hereby is subject to the satisfaction or waiver by the
PURCHASER of the following conditions:

 

(a) The representations
and warranties of the SELLER set forth in this AGREEMENT shall be true and correct in all material respects, with respect to representations
and warranties not qualified by materiality, or in all respects, with respect to representations and warranties qualified by materiality,
as of the date of this AGREEMENT and as of the CLOSING DATE as though made on and as of the CLOSING DATE.

    	11

    	 

    

(b) The SELLER shall have
performed in all material respects the covenants required to be performed by it under this AGREEMENT at or prior to the CLOSING
DATE.

 

(c) The SELLER shall have
executed and delivered each of the ANCILLARY AGREEMENTS, as applicable.

 

(d) There shall be no effective
or pending LAW or ORDER that would prohibit the CLOSING, and the SELLER shall have obtained all necessary approvals of any Governmental
Entities or other third parties in connection with the transactions contemplated hereby and by the ANCILLARY AGREEMENTS. The parties
will cooperate with one another and proceed, as promptly as is reasonably practicable, to seek to obtain all necessary consents
and approvals needed, and to endeavor to comply with all other legal or contractual requirements for the consummation of this AGREEMENT.

 

(e) The SELLER shall have delivered each of
the items described in Section 3.2.

 

(f) There shall be no pending
or threatened litigation regarding the ASSETS.

 

(g) PURCHASER’S due
diligence investigation shall have been satisfactorily completed, including, but not limited to, its investigation of the recurring
revenue of SELLER’S installed casino games, the number of locations at which the games are installed, and the ownership,
validity and enforceability (including but not limited to with respect to the games as currently played) of the patents, trademarks
and copyrights and any other CONTRACTS necessary for PURCHASER to offer the games.

 

(h) SELLER and PURCHASER
shall agree upon the allocation of the PURCHASE PRICE to various components of the ASSETS.

 

(i) SELLER and PURCHASER
shall have obtained all necessary board and stockholder approvals and consents as required by their respective governing documents.

 

6.2 CONDITIONS TO CLOSING
BY THE SELLER. The obligation of the SELLER to effect the transactions contemplated hereby is subject to the satisfaction or waiver
by the SELLER of the following conditions:

 

(a) The representations
and warranties of the PURCHASER set forth in this AGREEMENT shall be true and correct in all material respects, with respect to
representations and warranties not qualified by materiality, and in all respects, with respect to representations and warranties
qualified by materiality, in each case as of the date of this AGREEMENT and as of the CLOSING DATE as though made on and as of
the CLOSING DATE.

 

(b) The PURCHASER shall
have performed in all material respects the covenants required to be performed by it under this AGREEMENT at or prior to the CLOSING
DATE.

    	12

    	 

    

(c) The PURCHASER shall
have executed and delivered each of the ANCILLARY AGREEMENTS, as applicable.

 

(d) There shall be no effective
or pending LAW or ORDER that would prohibit the CLOSING, and the SELLER shall have obtained all necessary approvals of any Governmental
Entities or other third parties in connection with the transactions contemplated hereby and by the ANCILLARY AGREEMENTS. The parties
will cooperate with one another and proceed, as promptly as is reasonably practicable, to seek to obtain all necessary consents
and approvals needed, and to endeavor to comply with all other legal or contractual requirements for the consummation of this AGREEMENT.

 

(e) The PURCHASER shall have delivered each
of the items described in Section 3.3.

 

(f) SELLER and PURCHASER
shall agree upon the allocation of the PURCHASE PRICE to various components of the ASSETS.

 

(g) SELLER and PURCHASER
shall have obtained all necessary board and stockholder approvals and consents as required by their respective governing documents.

 

 

ARTICLE VII

INDEMNIFICATION

 

7.1 INDEMNIFICATION OBLIGATIONS.

 

(a) PURCHASER shall indemnify
the SELLER and its officers, directors, employees, agents and AFFILIATES (each, an “INDEMNIFIED PARTY”) in respect
of, and hold each harmless from and against, any and all LOSSES suffered, incurred or sustained by it or to which it becomes subject,
resulting from, arising out of or relating to (i) any misrepresentation or breach of representation or warranty on the part of
the PURCHASER contained in this AGREEMENT and (ii) any nonfulfillment of or failure to perform any covenant or agreement on the
part of the PURCHASER contained in this AGREEMENT.

 

(b) SELLER shall indemnify
the PURCHASER and its officers, directors, employees, agents and AFFILIATES (each, an “INDEMNIFIED PARTY”) in respect
of, and hold each harmless from and against, any and all LOSSES suffered, incurred or sustained by it or to which it becomes subject,
resulting from, arising out of or relating to (i) any misrepresentation or breach of representation or warranty on the part of
the SELLER or SELLER PRINCIPAL contained in this AGREEMENT and (ii) any nonfulfillment of or failure to perform any covenant or
agreement on the part of the SELLER or SELLER PRINCIPAL contained in this AGREEMENT. In addition to this indemnity and any other
remedies available to PURCHASER for a violation of either (i) or (ii) above, PURCHASER shall be entitled to off-set (the “Off-Set”)
any direct expenses incurred as a result of any such violation against any payment due to SELLER on the promissory note given under
this Agreement (as shown in Exhibit A). The Off-Set shall be subject to the following conditions and procedures: (i) the
right to off-set may only be determined upon the maturity date of the Promissory Note, (ii) the amount of the Off-Set must be either
(x) agreed upon by the parties, or (y) determined in final (including all available appeals) by a court of competent jurisdiction
hereunder, (iii) for purposes of this section, “direct expenses” shall include only those direct, actual, reasonable
and out-of-pocket costs incurred by PURCHASER in good faith and paid to arms-length third parties as a result of such applicable
violation, and further, PURCHASER shall, upon written request from SELLER, provide copies of all documentary or other applicable
information necessary to support the amount and validity of the foregoing direct expenses, and provided, further, direct expenses
shall not include consequential, indirect or punitive expenses, and (iv) the amount of the Off-Set, as finally determined hereunder,
shall be deducted from the final payment under the Promissory Note on the maturity date.

    	13

    	 

    

(c) For purposes of indemnification
under this Article VII only, all qualifications as to materiality and/or MATERIAL ADVERSE EFFECT contained in any representation
or warranty shall be disregarded.

 

7.2 METHOD OF ASSERTING CLAIMS. Claims for
indemnification by an INDEMNIFIED PARTY under Section 7.1 will be asserted and resolved as follows:

 

(a) THIRD-PARTY CLAIMS.
In the event that any claim or demand in respect of which an INDEMNIFIED PARTY might seek indemnification under Section 7.1 in
respect of, arising out of or involving a claim or demand made by any PERSON not a party to this AGREEMENT against an INDEMNIFIED
PARTY (a “THIRD-PARTY CLAIM”), the INDEMNIFIED PARTY shall deliver a CLAIM NOTICE to the either the PURCHASER or the
SELLER, as appropriate, as the “INDEMNIFYING PARTY” within sixty (60) days after receipt by such INDEMNIFIED PARTY
of written notice of the Third Party Claim. If the INDEMNIFIED PARTY fails to provide the CLAIM NOTICE within such time period,
the INDEMNIFYING PARTY will not be obligated to indemnify the INDEMNIFIED PARTY with respect to such THIRD PARTY CLAIM to the extent
that the INDEMNIFYING PARTY’S ability to defend is actually prejudiced by such failure of the INDEMNIFIED PARTY. The INDEMNIFYING
PARTY will notify the INDEMNIFIED PARTY as soon as practicable within the DISPUTE PERIOD whether the INDEMNIFYING PARTY accepts
or disputes its liability to the INDEMNIFIED PARTY under Section 7.1 and whether the INDEMNIFYING PARTY desires, at its sole cost
and expense, to defend the INDEMNIFIED PARTY against such THIRD PARTY CLAIM.

 

(i) DEFENSE BY
INDEMNIFYING PARTY. If the INDEMNIFYING PARTY notifies the INDEMNIFIED PARTY within the DISPUTE PERIOD that the INDEMNIFYING PARTY
desires to defend the INDEMNIFIED PARTY with respect to the THIRD PARTY CLAIM pursuant to this Section 7.2, then the INDEMNIFYING
PARTY will have the right to defend, with counsel reasonably satisfactory to the INDEMNIFIED PARTY, at the sole cost and expense
of the INDEMNIFYING PARTY, such THIRD PARTY CLAIM by all appropriate proceedings, which proceedings will be vigorously and diligently
prosecuted or defended by the INDEMNIFYING PARTY to a final conclusion or will be settled at the discretion of the INDEMNIFYING
PARTY (but only with the consent of the INDEMNIFIED PARTY in its sole discretion in the case of any settlement that provides for
any relief other than the payment of monetary damages or that provides for the payment of monetary damages as to which the INDEMNIFIED
PARTY will not be indemnified in full pursuant to Section 7.1). Subject to the immediately preceding sentence, the INDEMNIFYING
PARTY will have full control of such defense and proceedings, including any compromise or settlement thereof; PROVIDED, HOWEVER,
that the INDEMNIFIED PARTY may, at the cost and expense of the INDEMNIFYING PARTY, at any time prior to the INDEMNIFYING PARTY’S
delivery of notice to assume the defense of such Third Party Claim, file any motion, answer or other pleadings or take any other
action that the INDEMNIFIED PARTY reasonably believes to be necessary or appropriate to protect its interests. The INDEMNIFYING
PARTY shall not be liable to the INDEMNIFIED PARTY for legal expenses incurred by the INDEMNIFIED PARTY in connection with the
defense of such Third Party Claim after the INDEMNIFYING PARTY’S delivery of notice to assume the defense. In addition, if
requested by the INDEMNIFYING PARTY, the INDEMNIFIED PARTY will, at the sole cost and expense of the INDEMNIFYING PARTY, provide
reasonable cooperation to the INDEMNIFYING PARTY in contesting any THIRD PARTY CLAIM that the INDEMNIFYING PARTY elects to contest.

    	14

    	 

    

(ii) DEFENSE
BY INDEMNIFIED PARTY. If the INDEMNIFYING PARTY fails to notify the INDEMNIFIED PARTY within the DISPUTE PERIOD that the INDEMNIFYING
PARTY desires to assume the defense of the THIRD PARTY CLAIM, or if the INDEMNIFYING PARTY fails to give any notice whatsoever
within the DISPUTE PERIOD, then the INDEMNIFIED PARTY will have the right to defend, at the sole cost and expense of the INDEMNIFYING
PARTY, the THIRD PARTY CLAIM by all appropriate proceedings, which proceedings will be prosecuted by the INDEMNIFIED PARTY in good
faith or will be settled at the discretion of the INDEMNIFIED PARTY. The INDEMNIFIED PARTY will have full control of such defense
and proceedings, including any compromise or settlement thereof; PROVIDED, HOWEVER, that if requested by the INDEMNIFIED PARTY,
the INDEMNIFYING PARTY will, at the sole cost and expense of the INDEMNIFYING PARTY, provide reasonable cooperation to the INDEMNIFIED
PARTY and its counsel in contesting any THIRD PARTY CLAIM which the INDEMNIFIED PARTY is contesting. Notwithstanding the foregoing
provisions of this Section 7.2, if the INDEMNIFYING PARTY has notified the INDEMNIFIED PARTY within the DISPUTE PERIOD that the
INDEMNIFYING PARTY disputes its liability hereunder to the INDEMNIFIED PARTY with respect to such THIRD PARTY CLAIM and if such
dispute is resolved in all respects in favor of the INDEMNIFYING PARTY in the manner provided in clause (iii) below, the INDEMNIFYING
PARTY will not be required to bear the costs and expenses of the INDEMNIFIED PARTY’S defense pursuant to this Section 7.2
or of the INDEMNIFYING PARTY’S participation therein at the INDEMNIFIED PARTY’S request. The INDEMNIFYING PARTY may
participate in, but not control, any defense or settlement controlled by the INDEMNIFIED PARTY pursuant to this Section 7.2, and
the INDEMNIFYING PARTY will bear its own costs and expenses with respect to such participation.

 

(iii) ACCEPTANCE
BY INDEMNIFYING PARTY. If the INDEMNIFYING PARTY notifies the INDEMNIFIED PARTY that it accepts its indemnification liability to
the INDEMNIFIED PARTY with respect to the THIRD PARTY CLAIM under Section 7.1, the LOSS identified in the CLAIM NOTICE, as finally
determined, will be conclusively deemed a LIABILITY of the INDEMNIFYING PARTY under Section 7.1 and the INDEMNIFYING PARTY shall
pay the amount of such LOSS to the INDEMNIFIED PARTY on demand. If the INDEMNIFYING PARTY timely disputes its liability with respect
to such THIRD PARTY CLAIM or fails to notify the INDEMNIFIED PARTY within the DISPUTE PERIOD whether the INDEMNIFYING PARTY disputes
its liability to the INDEMNIFIED PARTY with respect to such THIRD PARTY CLAIM, the INDEMNIFYING PARTY and the INDEMNIFIED PARTY
will proceed in good faith to negotiate a resolution of such dispute, and if not resolved through negotiations with the RESOLUTION
PERIOD, such dispute shall be resolved by litigation in a court of competent jurisdiction.

    	15

    	 

    

 

(b) NON-THIRD PARTY CLAIMS.
In the event any INDEMNIFIED PARTY should have a claim under Section 7.1 against any INDEMNIFYING PARTY that does not involve a
THIRD PARTY CLAIM, the INDEMNIFIED PARTY shall deliver an INDEMNITY NOTICE with reasonable promptness to the INDEMNIFYING PARTY.
The failure or delay by any INDEMNIFIED PARTY to give the INDEMNITY NOTICE shall not impair such party’s rights hereunder
except to the extent that the INDEMNIFYING PARTY is actually prejudiced by such failure or delay. If the INDEMNIFYING PARTY notifies
the INDEMNIFIED PARTY that it does not dispute the claim described in such INDEMNITY NOTICE within the DISPUTE PERIOD, the LOSS
indemnified in the INDEMNITY NOTICE will be conclusively deemed a LIABILITY of the INDEMNIFIED PARTY under Section 7.1 and the
INDEMNIFYING PARTY shall pay the amount of such LOSS to the INDEMNIFIED PARTY on demand. If the INDEMNIFYING PARTY has timely disputed
its liability with respect to such claim or fails to notify the INDEMNIFIED PARTY within the DISPUTE PERIOD whether the INDEMNIFYING
PARTY disputes the claim described in such INDEMNITY NOTICE, the INDEMNIFYING PARTY and the INDEMNIFIED PARTY will proceed in good
faith to negotiate a resolution of such dispute and, if not resolved through negotiations within the RESOLUTION PERIOD, such dispute
shall be resolved by litigation in a court of competent jurisdiction.

 

    	16

    	 

    

ARTICLE VIII

POST-CLOSING COVENANTS

 

8.1 FURTHER ACTION. From and after the CLOSING
each of the parties hereto shall execute and deliver such documents and take such further actions as may reasonably be required
to carry out the provisions of this AGREEMENT and the ANCILLARY AGREEMENTS and to give effect to the transactions contemplated
hereby and thereby, including to give the PURCHASER effective ownership and control of the ASSETS.

 

8.2 CONTINUING COOPERATION OF SELLER. SELLER
agrees to assist and cooperate with PURCHASER in regard to current and future affairs relating to the ASSETS, excluding financial
assistance, but including enabling prosecuting continuation and related patent applications, being witnesses in any litigation
pertaining to the ASSETS, cooperating with governmental regulatory requirements and submissions and providing information and advice
to SELLER to best utilize the ASSETS.

 

8.3 AUDIT. It is understood and agreed that
the parties will jointly conduct a PCAOB audit of the ASSETS to be completed and filed on a form 8K for the PURCHASER within 75
days of the CLOSING, all as required by rules and regulations of Securities and Exchange Commission. Each parties agrees to fully
cooperate with the other post-closing in all aspects of conducting the audit and getting it completed prior to the filing deadline
as required by the Securities and Exchange Commission.

 

8.4 PROTECTION OF COLLATERAL BY PURCHASER.
Upon and after the CLOSING and up to the full satisfaction of the promissory notes to SELLER, PURCHASER shall be required to protect,
safeguard and maintain the Schedule A ASSETS and the Schedule C and D agreements. Any actions or costs required to optimally maintain
the quality and security of the Schedule A ASSETS and the Schedule C and D agreements shall be the responsibility of the PURCHASER.

 

ARTICLE IX

MISCELLANEOUS

 

9.1 SURVIVAL. Notwithstanding any right of
the PURCHASER (whether or not exercised) to investigate the affairs of the SELLER or any right of any party (whether or not exercised)
to investigate the accuracy of the representations and warranties of the other party contained in this AGREEMENT or the waiver
of any condition to CLOSING, each of the parties hereto has the right to rely fully upon the representations, warranties, covenants
and agreements of the other contained in this AGREEMENT. The representations, warranties, covenants and agreements of the parties
hereto contained in this AGREEMENT and any certificate or other document provided hereunder or thereunder will survive the CLOSING.

 

9.2 NO THIRD-PARTY BENEFICIARIES. The terms
and provisions of this AGREEMENT are intended solely for the benefit of the parties hereto and their respective successors and
permitted assigns, and it is not the intention of the parties to confer third-party beneficiary rights, and this AGREEMENT does
not confer any such rights, upon any other PERSON, except for any PERSON entitled to indemnity under Article VII.

    	17

    	 

    

9.3 ENTIRE AGREEMENT. This AGREEMENT (including
the Exhibits and the Schedules hereto) constitute the entire agreement between the parties hereto with respect to the subject matter
hereof and thereof and supersede any prior understandings, agreements or representations by or between the parties hereto, written
or oral, with respect to such subject matter.

 

9.4 SUCCESSION AND ASSIGNMENT. This AGREEMENT
shall be binding upon and inure to the benefit of the parties named herein and their respective successors and permitted assigns.
SELLER’s rights hereunder shall be transferable by SELLER, including by a conveyance for security as well as outright conveyance,
at any time, provided that, SELLER’S rights may not be transferred to a direct competitor of PURCHASER except upon the express
written consent of PURCHASER. PURCHASER’S rights under this AGREEMENT will be freely transferable by PURCHASER after all
payments under the Promissory Note have been made.

 

9.5 DRAFTING. The parties have participated
jointly in the negotiation and drafting of this AGREEMENT and, in the event an ambiguity or question of intent or interpretation
arises, this AGREEMENT shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any of the provisions of this AGREEMENT.

 

9.6 NOTICES. All notices, requests and other
communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally against written
receipt (by registered or certified mail, postage prepaid, return receipt requested) or delivered by reputable overnight courier,
fee prepaid, to the parties hereto at the following addresses:

 

	IF TO PURCHASER, TO:	
        Galaxy Gaming, Inc.

        Attn: Robert Saucier, CEO & Chairman of the Board

        6980 O’Bannon Drive

        Las Vegas, NV 89117

	 With a copy to:	
        Cane Clark LLP

        3273 E. Warm Springs Road

        Las Vegas, NV 89120

        702-944-7100 (fax)

	IF TO SELLER, TO: 	
        Prime Table Games

        Attn: Derek Webb

        7251 West Lake Mead Boulevard

        Suite 300

        Las Vegas, NV 89128

    	18

    	 

    

 

	With a copy to:	
        Tony Cabot

        Lewis & Roca

        3993 Howard Hughes Parkway #600

        Las Vegas NV 89109

 

 Any party hereto may change the address
to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other parties
hereto notice in the manner set forth herein.

 

9.7 GOVERNING LAW. This AGREEMENT shall be
governed by, and construed in accordance with, the LAWS of the State of Nevada, without giving effect to any choice of law or conflict
of law provision or rule that would cause the application of the LAWS of any jurisdiction other than the State of Nevada.

 

9.8 CONSENT TO JURISDICTION AND SERVICE OF
PROCESS. Each of the parties hereto consents to the jurisdiction of any state or federal court located within the county of Clark
in the state of Nevada and irrevocably agrees that all ACTIONS or proceedings relating to this AGREEMENT, the ANCILLARY AGREEMENTS
or the transactions contemplated hereby or thereby shall be litigated in such courts to the exclusion of all other venues. Each
of the parties hereto accepts for itself and in connection with its respective properties, generally and unconditionally, the jurisdiction
of the aforesaid courts and waives any defense of forum non conveniens, and irrevocably agrees to be bound by any judgment rendered
thereby in connection with this AGREEMENT, the ANCILLARY AGREEMENTS or the transactions contemplated hereby or thereby. Each of
the parties hereto further irrevocably consents to the service of process out of any of the aforementioned courts in any such action
or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to such party at the address specified
in this AGREEMENT, such service to become effective 15 calendar days after such mailing. Nothing herein shall in any way be deemed
to limit the ability of either party hereto to serve any such legal process, summons, notices and documents in any other manner
permitted by applicable law.

 

9.9 AMENDMENTS AND WAIVERS. No amendment of
any provision of this AGREEMENT shall be valid unless such amendment is in writing and signed by each of the parties hereto. No
waiver by any party hereto of any default, misrepresentation or breach of warranty or covenant hereunder, whether intentional or
not, shall be deemed to extend to any prior or subsequent default, misrepresentation or breach of warranty or covenant hereunder
or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. No waiver shall be valid unless such
waiver is in writing and signed by the party against whom such waiver is sought to be enforced.

 

9.10 SEVERABILITY. If any provision of this
AGREEMENT is held to be illegal, invalid or unenforceable under any present or future LAW, and if the rights or obligations of
any party hereto under this AGREEMENT will not be materially and adversely affected thereby, (a) such provision will be fully severable,
(b) this AGREEMENT will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a
part hereof, (c) the remaining provisions of this AGREEMENT will remain in full force and effect and will not be affected by the
illegal, invalid or unenforceable provision or by its severance herefrom and (d) in lieu of such illegal, invalid or unenforceable
provision, there will be added automatically as a part of this AGREEMENT a legal, valid and enforceable provision as similar in
terms of such illegal, invalid or unenforceable provision as may be possible.

    	19

    	 

    

9.11 EXPENSES. Except as otherwise expressly
set forth herein or therein, each of the parties hereto will bear its own costs and expenses (including legal fees and expenses)
incurred in connection with this AGREEMENT, the ANCILLARY AGREEMENTS and the transactions contemplated hereby or thereby, whether
or not the transactions contemplated hereby or thereby are consummated.

 

9.12 INCORPORATION OF EXHIBITS AND SCHEDULES.
The Exhibits, Annexes and Schedules identified in this AGREEMENT are incorporated herein by reference and made a part hereof. Unless
otherwise specified, no information contained in any particular numbered Schedule shall be deemed to be contained in any other
numbered Schedule unless explicitly included therein (by cross reference or otherwise).

 

9.13 SPECIFIC PERFORMANCE. The parties hereto
agree that irreparable damage would occur in the event that any provision of this AGREEMENT was not performed in accordance with
the terms hereof and that the parties shall be entitled to specific performance of the terms hereof in addition to any other remedy
available to them at law or equity.

 

9.14 HEADINGS. The descriptive headings contained
in this AGREEMENT are included for convenience of reference only and shall not affect in any way the meaning or interpretation
of this AGREEMENT.

 

9.15 COUNTERPARTS. This AGREEMENT may be executed
in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be
deemed to be an original but all of which taken together shall constitute one and the same agreement.

 

9.16FEES AND COSTS. The non-prevailing
party in any judicial proceedings for breach of any of the provisions of this Agreement shall be fully responsible for and pay
the prevailing party’s reasonable attorney’s fees, costs, and expenses (including, without limitation, those incurred
preliminary to the institution of any such action or proceeding, to quantify or obtain recovery of the amount of such recoverable
attorney’s fees, costs, or expenses, and in connection with any appeal arising from any such action or proceeding), which
attorney’s fees, costs, or expenses awarded hereunder shall be included as part of any ruling, award, or judgment. The parties
hereto specifically agree that the determination of any attorney fee, cost, or expense award permitted hereunder shall not be limited
to any judicially or legislatively established attorney fee schedule or method of computation of fees or definition of recoverable
costs.

 

IN WITNESS WHEREOF, the parties hereto have
duly executed this AGREEMENT as of the date first written above.

 

[THE REMAINDER OF THIS
PAGE LEFT INTENTIONALLY BLANK, SIGNATURE PAGE FOLLOWS]

    	20

    	 

    

 

	
        GALAXY GAMING, INC., a Nevada corporation (“PURCHASER”)

         

        By: /s/ Robert Saucier

        Its: CEO

         
	
        PRIME TABLE GAMES, LLC, a Nevada limited liability company
        (“SELLER”)

         

        By: /s/ Prime Table
        Games, LLC

        

	
        PRIME TABLE GAMES UK, a United Kingdom partnership (“SELLER”)

         

        By: /s/ Prime Table Games UK
	
         D&H, a United Kingdom partnership (“SELLER”)

         

        By: /s/ D&H

        

         

	
        DEREK WEBB (“SELLER PRINCIPAL”)

         

        /s/ Derek Webb
	
        HANNAH O’DONNELL (“SELLER PRINCIPAL”)

         

        /s/ Hannah O’Donnell

 

    	21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]