Document:

exv10w27

 

EXHIBIT 10.27

GLOBAL CASH ACCESS HOLDINGS, INC.

INDEMNIFICATION AGREEMENT

     THIS AGREEMENT (this “Agreement”) is made as of                         
                ,
by and between Global Cash Access
Holdings, Inc., a Delaware corporation (the “Company”, which term shall include, where
appropriate, any Entity (as hereinafter defined) controlled directly or indirectly by the Company),
and                      (the “Indemnitee”).

     WHEREAS, it is essential to the Company that it be able to retain and attract as directors
and/or officers the most capable persons available;

     WHEREAS, increased corporate litigation has subjected directors and officers to litigation
risks and expenses, and the limitations on the availability of directors and officers liability
insurance have made it increasingly difficult for companies to attract and retain such persons;

     WHEREAS, the Company desires to provide Indemnitee with specific contractual assurance of
Indemnitee’s rights to full indemnification against litigation risks and expenses (regardless,
among other things, of any amendment to the Company’s certificate of incorporation or revocation of
any provision of the Company’s by-laws or any change in the ownership of the Company or the
composition of its Board of Directors); and

     WHEREAS, Indemnitee is relying upon the rights afforded under this Agreement in accepting
Indemnitee’s position as a director and/or officer of the Company.

     NOW, THEREFORE, in consideration of the promises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

	 	1.  	Definitions.

     (a) “Corporate Status” describes the status of a person who is serving or has
served (i) as a director of the Company, including as a member of any committee thereof,
(ii) as an officer of the Company, (iii) in any capacity with respect to any employee
benefit plan of the Company, or (iv) as a director, partner, trustee, officer, employee, or
agent of any other Entity at the request of the Company. For purposes of subsection (iv) of
this Section 1(a), an officer or director of the Company who is serving or has served as a
director, partner, trustee, officer, employee or agent of a Subsidiary (as defined below)
shall be deemed to be serving at the request of the Company.

     (b) “Entity” shall mean any corporation, partnership, limited liability
company, joint venture, trust, foundation, association, organization or other legal entity.

     (c) “Expenses” shall mean all fees, costs and expenses incurred in connection
with any Proceeding (as defined below), including, without limitation, reasonable attorneys’
fees, disbursements and retainers (including, without limitation, any such fees,
disbursements and retainers incurred by Indemnitee pursuant to Sections 8 and 10(c) of this
Agreement), fees and disbursements of expert witnesses, private investigators and
professional advisors (including, without limitation, accountants and investment bankers),
court costs, transcript costs, fees of experts, travel expenses, duplicating, printing and
binding costs, telephone and fax transmission charges, postage, delivery services,
secretarial services and other disbursements and expenses.

 

 

     (d) “Indemnifiable Amounts” shall have the meaning ascribed to it in Section
3(a) below.

     (e) “Indemnifiable Expenses,” shall have the meaning ascribed to it in Section
3(a) below.

     (f) “Indemnifiable Liabilities” shall have the meaning ascribed to it in
Section 3(a) below.

     (g) “Liabilities” shall mean judgments, damages, liabilities, losses,
penalties, excise taxes, fines and amounts paid in settlement.

     (h) “Proceeding” shall mean any threatened, pending or completed claim, action,
suit, arbitration, alternate dispute resolution process, investigation, administrative
hearing, appeal, or any other proceeding, whether civil, criminal, administrative,
arbitrative or investigative, whether formal or informal, including a proceeding initiated
by Indemnitee pursuant to Section 10 of this Agreement to enforce Indemnitee’s rights
hereunder.

     (i) “Subsidiary” shall mean any corporation, partnership, limited liability
company, joint venture, trust or other Entity of which the Company owns (either directly or
through or together with another Subsidiary of the Company) either (i) a general partner,
managing member or other similar interest or (ii) (A) 50% or more of the voting power of the
voting capital equity interests of such corporation, partnership, limited liability company,
joint venture or other Entity, or (B) 50% or more of the outstanding voting capital stock or
other voting equity interests of such corporation, partnership, limited liability company,
joint venture or other Entity.

     2. Services of Indemnitee. In consideration of the Company’s covenants and
commitments hereunder, Indemnitee agrees to serve or continue to serve as a director and/or officer
of the Company. However, this Agreement shall not impose any obligation on Indemnitee or the
Company to continue Indemnitee’s service to the Company beyond any period otherwise required by law
or by other agreements or commitments of the parties, if any.

     3. Agreement to Indemnify. The Company agrees to indemnify Indemnitee as follows:

     (a) Subject to the exceptions contained in Section 4(a) below, if Indemnitee was or is
a party or is threatened to be made a party to any Proceeding (other than an action by or in
the right of the Company) by reason of Indemnitee’s Corporate Status, Indemnitee shall be
indemnified by the Company against all Expenses and Liabilities incurred or paid by
Indemnitee in connection with such Proceeding (referred to herein as “Indemnifiable
Expenses” and “Indemnifiable Liabilities,” respectively, and collectively as
“Indemnifiable Amounts”).

     (b) Subject to the exceptions contained in Section 4(b) below, if Indemnitee was or is
a party or is threatened to be made a party to any Proceeding by or in the right of the
Company to procure a judgment in its favor by reason of Indemnitee’s Corporate Status,
Indemnitee shall be indemnified by the Company against all Indemnifiable Expenses.

     (c) If any of Summit
Ventures VI-A, L.P., Summit Ventures VI-B, L.P. or any of their respective affiliates (each,
a “Summit Fund”) is or is threatened to be made a party to or a participant in any
Proceeding, and the Summit Fund’s involvement in the Proceeding arises in whole or in part
from the Indemnitee’s service to the Company as an officer or director

-2-

 

of the Company, then the Summit Fund shall be entitled to all of the indemnification
rights and remedies, and shall to the extent indemnified hereunder, undertake the
obligations of the Indemnitee, under this Agreement to the same extent as Indemnitee and to
the same extent as if such Summit Fund was a party hereto.

     4. Exceptions to Indemnification. Indemnitee shall be entitled to indemnification
under Sections 3(a) and 3(b) above in all circumstances other than the following:

     (a) If indemnification is requested under Section 3(a) and it has been adjudicated
finally by a court of competent jurisdiction that, in connection with the subject of the
Proceeding out of which the claim for indemnification has arisen, Indemnitee failed to act
(i) in good faith and (ii) in a manner Indemnitee reasonably believed to be in or
not opposed to the best interests of the Company and, with respect to any criminal action or
proceeding, Indemnitee had reasonable cause to believe that Indemnitee’s conduct was
unlawful, Indemnitee shall not be entitled to payment of Indemnifiable Amounts hereunder.

     (b) If indemnification is requested under Section 3(b) and

     (i) it has been adjudicated finally by a court of competent jurisdiction that,
in connection with the subject of the Proceeding out of which the claim for
indemnification has arisen, Indemnitee failed to act (A) in good faith and
(B) in a manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, Indemnitee shall not be entitled to payment of
Indemnifiable Expenses hereunder; or

     (ii) it has been adjudicated finally by a court of competent jurisdiction that
Indemnitee is liable to the Company with respect to any claim, issue or matter
involved in the Proceeding out of which the claim for indemnification has arisen,
including, without limitation, a claim that Indemnitee received an improper personal
benefit,

no Indemnifiable Expenses shall be paid with respect to such claim, issue or matter unless the
court of law or another court in which such Proceeding was brought shall determine upon application
that, despite the adjudication of liability, but in view of all the circumstances of the case,
Indemnitee is fairly and reasonably entitled to indemnity for such Indemnifiable Expenses which
such court shall deem proper.

     5. Procedure for Payment of Indemnifiable Amounts. Indemnitee shall submit to the
Company a written request specifying the Indemnifiable Amounts for which Indemnitee seeks payment
under Section 3 of this Agreement and the basis for the claim. The Company shall pay such
Indemnifiable Amounts to Indemnitee within ten (10) calendar days following receipt of the request.

     6. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, and without limiting any such provision, to
the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a party to and is
successful, on the merits or otherwise, in any Proceeding, Indemnitee shall be indemnified against
all Expenses reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.
If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or
otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the
Company shall indemnify Indemnitee against all Expenses reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection with each successfully resolved claim, issue or matter. For
purposes of this Agreement, the termination of any claim, issue or matter in such a Proceeding by
dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim,
issue or matter.

-3-

 

     7. Effect of Certain Resolutions. Neither the settlement nor termination of any
Proceeding nor the failure of the Company to award indemnification or to determine that
indemnification is payable shall create an adverse presumption that Indemnitee is not entitled to
indemnification hereunder. In addition, the termination of any proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent shall not create a
presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably
believed to be in or not opposed to the best interests of the Company or, with respect to any
criminal action or proceeding, had reasonable cause to believe that Indemnitee’s action was
unlawful.

     8. Agreement to Advance Expenses; Conditions. The Company shall pay to Indemnitee all
Indemnifiable Expenses incurred by Indemnitee in connection with any Proceeding, including a
Proceeding by or in the right of the Company, in advance of the final disposition of such
Proceeding, as the same are incurred. To the extent required by Delaware corporate law, Indemnitee
hereby undertakes to repay the amount of Indemnifiable Expenses paid to Indemnitee if it is finally
determined by a court of competent jurisdiction that Indemnitee is not entitled under this
Agreement to indemnification with respect to such Expenses. This undertaking is an unlimited and
unsecured general obligation of Indemnitee and no interest shall be charged thereon.

     9. Procedure for Advance Payment of Expenses. Indemnitee shall submit to the Company
a written request specifying the Indemnifiable Expenses for which Indemnitee seeks an advancement
under Section 8 of this Agreement, together with documentation evidencing that Indemnitee has
incurred such Indemnifiable Expenses. Payment of Indemnifiable Expenses under Section 8 shall be
made no later than ten (10) calendar days after the Company’s receipt of such request.

     10. Remedies of Indemnitee.

     (a) Right to Petition Court. In the event that Indemnitee makes a request for
payment of Indemnifiable Amounts under Sections 3 and 5 above or a request for an
advancement of Indemnifiable Expenses under Sections 8 and 9 above and the Company fails to
make such payment or advancement in a timely manner pursuant to the terms of this Agreement,
Indemnitee may petition a court of law to enforce the Company’s obligations under this
Agreement.

     (b) Burden of Proof. In any judicial proceeding brought under Section 10(a)
above, the Company shall have the burden of proving that Indemnitee is not entitled to
payment of Indemnifiable Amounts hereunder.

     (c) Expenses. The Company agrees to reimburse Indemnitee in full for any
Expenses incurred by Indemnitee in connection with investigating, preparing for, litigating,
defending or settling any action brought by Indemnitee under Section 10(a) above, or in
connection with any claim or counterclaim brought by the Company in connection therewith.

     (d) Validity of Agreement. The Company shall be precluded from asserting in
any Proceeding, including, without limitation, an action under Section 10(a) above, that the
provisions of this Agreement are not valid, binding and enforceable or that there is
insufficient consideration for this Agreement and shall stipulate in court that the Company
is bound by all the provisions of this Agreement.

     (e) Failure to Act Not a Defense. The failure of the Company (including its
Board of Directors or any committee thereof, independent legal counsel or stockholders) to
make a determination concerning the permissibility of the payment of Indemnifiable Amounts
or the

-4-

 

advancement of Indemnifiable Expenses under this Agreement shall not be a defense in
any action brought under Section 10(a) above, and shall not create a presumption that such
payment or advancement is not permissible.

     11. Representations and Warranties of the Company. The Company hereby represents and
warrants to Indemnitee as follows:

     (a) Authority. The Company has all necessary power and authority to enter
into, and be bound by the terms of, this Agreement, and the execution, delivery and
performance of the undertakings contemplated by this Agreement have been duly authorized by
the Company.

     (b) Enforceability. This Agreement, when executed and delivered by the Company
in accordance with the provisions hereof, shall be a legal, valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, moratorium,
reorganization or similar laws affecting the enforcement of creditors’ rights generally.

     12. Insurance. The Company shall use its reasonable efforts to maintain requisite
directors and officers indemnity insurance coverage in effect at all times (subject to appropriate
cost considerations) and the Company’s Certificate of Incorporation and Bylaws shall at all times
provide for indemnification and exculpation of directors to the fullest extent permitted under
applicable law. In all policies of director and officer liability insurance, Indemnitee shall be
named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are
accorded to the most favorably insured of the Company’s officers and directors. The Company shall
hereafter take all necessary or desirable actions to cause such insurers to pay, on behalf of the
Indemnitee, all Indemnifiable Amounts in accordance with the terms of such policies;
provided that nothing in this Section 12 shall affect the Company’s obligations
under this Agreement or the Company’s obligations to comply with the provisions of this Agreement
in a timely manner as provided.

     13. Fees and Expenses. If Indemnitee serves as a non-employee director, then during
the term of such service, the Company shall promptly reimburse the Indemnitee for all expenses
incurred by him in connection with his service as a director or member of any board committee or
otherwise in connection with the Company’s business and shall pay or provide the Indemnitee with
fees and other compensation, including stock options or awards, in amounts and value which are at
least equal to those provided to any of the Company’s other non-employee directors from time to
time.

     14. Contract Rights Not Exclusive. The rights to payment of Indemnifiable Amounts and
advancement of Indemnifiable Expenses provided by this Agreement shall be in addition to, but not
exclusive of, any other rights which Indemnitee may have at any time under applicable law, the
Company’s by-laws or certificate of incorporation, or any other agreement, vote of stockholders or
directors (or a committee of directors), or otherwise, both as to action in Indemnitee’s official
capacity and as to action in any other capacity as a result of Indemnitee’s serving as a director
and/or officer of the Company.

     15. Successors. This Agreement shall be (a) binding upon all successors and assigns
of the Company (including any transferee of all or a substantial portion of the business, stock
and/or assets of the Company and any direct or indirect successor by merger or consolidation or
otherwise by operation of law) and (b) binding on and shall inure to the benefit of the heirs,
personal representatives, executors and administrators of Indemnitee and in the case of Section
3(c), the Summit Funds. This Agreement shall continue for the benefit of Indemnitee and such
heirs, personal representatives, executors and

-5-

 

administrators and in the case of Section 3(c), the Summit Funds, after Indemnitee has ceased
to have Corporate Status.

     16. Subrogation. In the event of any payment of Indemnifiable Amounts under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of
contribution or recovery of Indemnitee against other persons, and Indemnitee shall take, at the
request and expense of the Company, all reasonable action necessary to secure such subrogation
rights, including the execution of such documents as are necessary to enable the Company to bring
suit to enforce such rights.

     17. Change in Law. To the extent that a change in Delaware law (whether by statute or
judicial decision) shall permit broader indemnification or advancement of expenses than is provided
under the terms of the certificate of incorporation and/or by-laws of the Company and this
Agreement, Indemnitee shall be entitled to such broader indemnification and advancements, and this
Agreement shall be deemed to be automatically amended to such extent.

     18. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law, but if any
provision of this Agreement, or any clause thereof, shall be determined by a court of competent
jurisdiction to be illegal, invalid or unenforceable, in whole or in part, such provision or clause
shall be limited or modified in its application to the minimum extent necessary to make such
provision or clause valid, legal and enforceable, and the remaining provisions and clauses of this
Agreement shall remain fully enforceable and binding on the parties.

     19. Indemnitee as Plaintiff. Except as provided in Section 10(c) of this Agreement
and in the next sentence, Indemnitee shall not be entitled to payment of Indemnifiable Amounts or
advancement of Indemnifiable Expenses with respect to any Proceeding brought by Indemnitee against
the Company, any Entity which it controls, any director or officer thereof, or any third party,
unless such Company has consented to the initiation of such Proceeding. This Section shall not
apply to counterclaims or affirmative defenses asserted by Indemnitee in an action brought against
Indemnitee.

     20. Modifications and Waiver. Except as provided in Section 17 above with respect to
changes in Delaware law which broaden the right of Indemnitee to be indemnified by the Company, no
supplement, modification or amendment of this Agreement shall be binding unless executed in writing
by each of the parties hereto. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provisions of this Agreement (whether or not
similar), nor shall such waiver constitute a continuing waiver.

     21. General Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given (a) when delivered by
hand, (b) when transmitted by facsimile and receipt is acknowledged, or (c) if mailed by certified
or registered mail with postage prepaid, on the third business day after the date on which it is so
mailed:

	 	 	 	 	 	 	 
	

	 	(i)
	 	If to Indemnitee, to:
	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	[address]	 	 
	

	 	 	 	Telephone:	 	 
	

	 	 	 	Telecopy:	 	 
	 
	 	 	 	 	 	 
	

	 	(ii)
	 	If to the Company, to:	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	Global Cash Access Holdings, Inc.	 	 

-6-

 

	 	 	 	 	 	 	 
	

	 	 	 	3525 E. Post Road	 	 
	

	 	 	 	Suite 120	 	 
	

	 	 	 	Las Vegas, Nevada 89120	 	 
	

	 	 	 	Attention: Chief Executive Officer	 	 

or to such other address as may have been furnished in the same manner by any party to the others.

     22. Governing Law. This Agreement shall be governed by and construed and enforced
under the laws of the State of Delaware without giving effect to the provisions thereof relating to
conflicts of law.

* * * * *

-7-

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	GLOBAL CASH ACCESS HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	INDEMNITEE

 	 
	 	  	 	 
	 	 	Print Name:exv10w28

 

Exhibit 10.28

PATENT PURCHASE AND LICENSE AGREEMENT

This Patent Purchase and License Agreement (this “Agreement”) is made as of March 22, 2005 by
and between USA Payments, a Nevada corporation having its principal place of business at 643 River
Oaks Parkway, San Jose, California 95134 (“Seller”), and Global Cash Access, Inc., a Delaware
corporation having its principal place of business at 3525 East Post Road, Suite 120, Las Vegas,
Nevada 89120 (“Buyer”).

Whereas, Seller is the owner of the entire right, title and interest in and to the
Designated Patents;

Whereas, Buyer desires to purchase the entire right, title and interest in and to the
Designated Patents;

Whereas, Seller desires to sell to Buyer the entire right, title and interest in and to
the Designated Patents, subject to the retention of a non-exclusive license under the Designated
Patents outside of the Buyer Field; and

Whereas, the parties desire for the sale, purchase and license contained herein to become
effective upon the satisfaction of certain conditions precedent.

Now, Therefore, in consideration of the representations, covenants and other terms and
conditions contained herein, the parties hereto agree as follows:

1. Definitions

For purposes of this Agreement, the following terms shall have the following meanings:

     1.1. “Buyer Field” shall mean the gaming industry, including without limitation the business
of providing cash access services (including, without limitation, by way of automated teller
machines) to patrons of gaming establishments. For purposes of clarification:

          (a) “cash access services,” as used in the foregoing sentence, includes “quasi-cash”
transactions whereby credit cards and debit cards are used to purchase instruments that can be
negotiated for cash; and

          (b) Buyer Field does not include non-gaming merchant operations (including but not limited to
hotels, restaurants, retail shops, travel agencies or car rental agencies) conducted at
establishments at which gaming activity occurs to the extent that such non-gaming merchant
operations involve the sale or provision of goods or services other than money orders or gaming
goods or services, but Buyer Field does include such non-gaming merchant operations to the extent
that such non-gaming merchant operations (i) sell or otherwise provide money orders or gaming goods
or services, or (ii) provide, enable, facilitate or permit ATM cash withdrawals, credit card cash
advances or debit card cash access transactions in any establishment at which gaming activity
occurs.

     1.2. “Designated Patents” shall mean (a) United States Patent No. 6,081,792 entitled “ATM and
POS Terminal and Method of Use Thereof,” (which the parties hereby acknowledge is erroneously
reflected in the records of the United States Patent and Trademark Office as being held by “USA
Payment, Inc.”) and U.S. patent application Ser. No. 10/869754 entitled “ATM and POS Terminal and
Method of Use Thereof,” (b) any parent or provisional patent application(s) upon which the priority
of either of the foregoing patent or patent application is based, (c) all past, present and future
divisionals, continuations, continuations-in-part, reexaminations, substitutions, reissues,
extensions and renewals of any of the foregoing patents or patent applications in subsection (a) or
(b), (d) all foreign counterparts of any of the foregoing patents or patent applications in
subsection (a), (b), or (c), and (e) all patents that have issued or issue in the future (including
the right to apply for such patents) from any of the foregoing patents or patent applications in
subsection (a), (b), (c) or (d).

     1.3. “Licensed Product” shall mean any product or service now or hereafter made, used, sold,
provided, operated or offered by or on behalf of Seller (including any finished product and any
product used in the manufacture of another product) that falls within the scope of, or that
utilizes any method or process which falls within the scope of, any of the claims of any Designated
Patents, or that incorporates, or is itself, the subject invention of any Designated Patents, other
than such products and services that have historically been provided exclusively to Buyer.

     1.4. “Subsidiary” shall mean, with respect to a party, any entity at least 50% of whose equity
is owned directly or indirectly by such party.

1

 

2. Patent Transfer

     2.1 Assignment. Effective upon the Effective Date, Seller hereby irrevocably assigns, conveys,
sells, grants and transfers to Buyer, its successors and assigns all of its rights, title and
interest of every kind and character throughout the world in and to the Designated Patents to the
full extent of its ownership or interest therein, including, without limitation:

          (a) all rights to causes of action and remedies related thereto (including, without
limitation, the right to sue for past, present or future infringement, misappropriation or
violation of rights related to the foregoing); and

          (b) any and all other rights and interests arising out of, in connection with or in relation
to the Designated Patents, including without limitation the right to receive any royalties or other
consideration relating to any license or similar permission within the Buyer Field.

     2.2 Recordation; Further Assurances. The parties shall execute and file with the United States
Patent and Trademark Office the confirmatory assignment with respect to the Designated Patents
attached hereto as Exhibit A.

     2.3 Correction of Recordation Error. Seller represents and warrants that on or prior to the
date first set forth above, it has caused to be filed with the United States Patent and Trademark
Office a request for corrective assignment to correct the name of the original assignee of United
States Patent No. 6,081,792 from “USA Payment, Inc.” to “USA Payments” to correct the error
referenced in the definition of “Designated Patents”. Following execution of this Agreement,
Seller shall take all action at its own cost and expense, including, without limitation, the prompt
execution and delivery of documents in recordable form, and otherwise use its commercially
reasonable best efforts to correct the error referenced in the definition of “Designated Patents”
as may be reasonably necessary to vest, secure, perfect, protect and enforce the rights and
interests of Buyer in and to the Designated Patents and other patents, patent applications, and
related rights assigned under Section 2.1 above. In any event, the foregoing recording error shall
be corrected to Buyer’s reasonable satisfaction prior to the Effective Date.

     2.4 Appointment. In the event that Buyer is unable, after reasonable notice to Seller, for
any reason whatsoever, to secure Seller’s signature to any document Seller is required to execute
pursuant to this Section 2 to vest, secure, perfect, protect or enforce the rights and interests of
Buyer in and to the Designated Patents, Seller hereby irrevocably designates and appoints Buyer and
its duly authorized officers and agents as Seller’s agents and attorneys-in-fact, to act for and on
its behalf and instead of Seller, to execute and file any such documents and to do all other
lawfully permitted acts to further the purposes of Section 2 with the same legal force and effect
as if executed by Seller.

     2.5 Certain Conditions Precedent. The transfer of interests in the Designated Patents in this
Section 2 and the license grant in Section 3 are subject to and conditioned upon both of the
following conditions precedent: (i) Seller obtaining the consent or acknowledgement by a majority
in interest of the lenders under Global Cash Access, Inc.’s senior secured credit facilities that
the consummation of the transactions contemplated by this Agreement will not constitute a breach of
any provision of or event of default under that certain Credit Agreement, dated March 10, 2004, as
amended, to which Seller is a party (the “Credit Agreement”), and (ii) the consummation of an
underwritten initial public offering of equity securities by Global Cash Access Holdings, Inc.
pursuant to an effective registration statement under the Securities Act of 1933, as amended (the
“IPO”). The date upon which both such conditions are first satisfied is referred to herein as the
“Effective Date”.

3. License Grant-Back

     3.1 License Grant. Effective upon the Effective Date, and conditioned upon Seller’s correction
of the recordation error in accordance with Section 2.3, Buyer hereby grants to Seller a
non-exclusive, perpetual, irrevocable, fully paid up, royalty-free, non-transferable (except as set
forth in Section 6.3), right and license under United States Patent No. 6,081,792 and U.S. patent
application Ser. No. 10/869754 entitled “ATM and POS Terminal and Method of Use Thereof” (including
any patent that issues thereon) to (a) make, have made, use, sell, offer to sell and import any
products and services solely for use and distribution outside of the Buyer Field, (b) practice any
methods or processes solely outside of the Buyer Field, and (c) sublicense to third parties the
rights granted to Seller under subsections (a) and (b) above. For purposes of clarification, Seller
shall have no right to grant any sublicenses under the Designated Patents within the Buyer Field,
and nothing contained in this Agreement shall prohibit Buyer from granting additional licenses
under the Designated Patents in any field of use for any products or services. Seller shall use
commercially reasonable efforts to ensure that its customers and distributors, and its

2

 

sublicensees’ and their respective customers and distributors, do not directly or indirectly
use such products or services to make, have made, use, sell, offer to sell, or import any products
or services in the Buyer Field (such efforts shall include, without limitation, contractual
restrictions on use and distribution consistent with this Agreement, and shall provide that Buyer
is a third party beneficiary for the purpose of enforcing any such contractual restriction).

     3.2 No Implied Licenses. Except as expressly set forth in Section 3.1, Buyer grants no rights
or licenses under the Designated Patents to Seller, including, without limitation, any implied
rights or licenses that may otherwise arise out of this Agreement or the activities of the parties
hereunder.

4. Payment

     4.1 Purchase Price. Buyer shall pay to Seller by wire transfer the sum of ten million US
dollars (US$10,000,000.00) within one (1) business day following the actual receipt by Buyer of the
proceeds of the IPO allocable to the Buyer.

     4.2 Taxes. Buyer shall pay, and shall indemnify and hold Seller harmless from, all taxes,
duties and levies directly imposed by all federal, state, local or other taxing authorities
(including, without limitation, export, sales, use, excise, and value-added taxes) based on the
transactions or payments under this Agreement, other than taxes imposed or based on Seller’s net
income.

5. Representations and Warranties; Covenants

     5.1 Mutual Representations and Warranties. Each party represents and warrants that it has the
power and authority to enter into this Agreement and to perform its obligations hereunder, that
this Agreement is binding on and enforceable against the parties in accordance with its terms, and
that compliance by each party with its obligations hereunder shall not conflict with or result in a
breach of any agreement to which such party is a party or is otherwise bound.

     5.2 Seller Representations and Warranties. Seller represents and warrants that, as of the
Effective Date:

          (a) Seller is the lawful owner of all right, title and interest in and to the Designated
Patents, and has the unrestricted right to assign such right, title and interest to Buyer free and
clear of any encumbrances, liens, registrations or claims of any nature.

          (b) To Seller’s knowledge, the Designated Patents are valid and enforceable.

          (c) The Designated Patents (i) to Seller’s knowledge, are valid, subsisting and in full force
and effect, (ii) have not been abandoned or passed into the public domain and (iii) to Seller’s
knowledge, are free and clear of any encumbrances.

          (d) Seller has not granted any licenses of or any other rights under the Designated Patents to
any person other than to Buyer.

          (e) To Seller’s knowledge, all necessary registration, maintenance and renewal fees in
connection with the Designated Patents have been paid and all necessary documents and certificates
in connection with the Designated Patents have been filed with the U.S. Patent and Trademark Office
(the “PTO”) for the purposes of maintaining the Designated Patents. To Seller’s knowledge, there
are no actions that must be taken by Seller within one hundred twenty (120) days following the
Effective Date, including the payment of any registration, maintenance or renewal fees or the
filing of any responses to office actions, documents, applications or certificates for the purposes
of obtaining, maintaining, perfecting, preserving or renewing the Designated Patents.

          (f) To Seller’s knowledge, there is no action, suit, litigation, arbitration, proceeding
(including any civil, criminal, administrative, investigative or appellate proceeding),
prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation by or before
any governmental authority (including the PTO) anywhere in the world related to the Designated
Patents other than litigation to which Buyer is a party as of the date hereof.

          (g) To Seller’s knowledge, the Designated Patents are not subject to any decree, order,
judgment, office action or settlement agreement or stipulation that restricts in any manner the
use, transfer or licensing thereof by Seller or that may affect the validity, use or enforceability
of the Designated Patents.

3

 

          (h) The Designated Patents will be fully transferable, alienable and licensable by Buyer
without restriction (subject to the license granted to Seller under this Agreement) and without
payment of any kind to any third party.

          (i) Seller has no right, title or interest in or to any patent or patent application
(excluding the Designated Patents) that reads on or is infringed by any of Buyer’s businesses,
products or services as such businesses, products and services are operated and provided as of the
Effective Date.

     5.3 Buyer’s Obligation to Maintain Patent. Except as otherwise expressly set forth herein,
from and after the Effective Date, Seller shall have no obligation to pay any maintenance fees for
the Designated Patents or take any other actions to maintain the Designated Patents, including
without limitation any steps to defend against any allegation that any Designated Patent is invalid
or otherwise unenforceable. In the event the validity or other unenforceability of a Designated
Patent is challenged, Buyer shall promptly notify Seller in writing of such challenge, and if Buyer
does not defend against such challenge within ninety (90) days of receipt of written notice from
Seller of Seller’s desire to defend against a claim of invalidity or other unenforceability, then
Seller may, at its own cost and expense, defend against such challenge on Buyer’s behalf, and (a)
Buyer shall join such action as a party and cooperate in such defense, and (b) Buyer will be
represented in such action by Seller’s counsel and at Seller’s cost and expense, unless Buyer
elects to retain its own counsel at its sole cost and expense. Buyer shall provide all cooperation
reasonably necessary for the defense against such claim or challenge (including providing
testimony, documents and records relating to the Designated Patents) and Seller shall reimburse
Buyer for all reasonable costs and expenses incurred by Buyer in connection therewith. Seller
shall be entitled to recovery of any damages or any settlement amounts resulting from any such
action.

     5.4 Third Party Infringement.

          (a) Buyer shall have the sole and exclusive right to initiate any lawsuit (or to decline to
initiate such a lawsuit) against a third party for infringement of any claims of any Designated
Patent within the Buyer Field. Seller agrees to join as a party plaintiff in any such lawsuit
initiated by Buyer, if requested by Buyer. In such case, Seller will be represented in the lawsuit
by Buyer’s counsel and at Buyer’s cost and expense, unless Seller elects to retain its own counsel
at its sole cost and expense. Seller shall provide all cooperation reasonably necessary for the
prosecution of any such lawsuit (including providing testimony, documents, and records relating to
the Designated Patents) and Buyer shall reimburse Seller for all reasonable costs and expenses
incurred by Seller in connection therewith. Buyer shall be entitled to any recovery of damages or
any settlement amounts resulting from any such lawsuit.

          (b) Each party shall notify the other party in writing of any suspected infringement of a
Designated Patent outside the Buyer Field and shall inform the other party of any evidence of such
infringement. Buyer shall have the first right to institute suit for any such infringement. Seller
agrees to join as a party plaintiff in any such lawsuit initiated by Buyer, if requested by Buyer.
In such case, Seller will be represented in the lawsuit by Buyer’s counsel and at Buyer’s cost and
expense, unless Seller elects to retain its own counsel at its sole cost and expense. However, if
Buyer does not institute suit for infringement(s) within ninety (90) days of receipt of written
notice from Seller of Seller’s desire to pursue a suit for infringement, then Seller may, at its
own cost and expense, bring suit for infringement(s) and (i) Buyer shall join such action as a
party and cooperate in such action, and (ii) Buyer will be represented in such action by Seller’s
counsel and at Seller’s cost and expense, unless Buyer elects to retain its own counsel at its sole
cost and expense; provided, however, that notwithstanding the foregoing Seller shall in no event be
entitled to file or prosecute any lawsuit or otherwise bring any claim under the Designated Patents
against any entity that is at such time a supplier to, or customer of, Buyer. Each party shall be
entitled to any recovery of damages resulting from a lawsuit brought by it, and, in the event both
Seller and Buyer are parties to any lawsuit, Seller and Buyer shall share in any recovery in an
amount proportionate to their respective proved damages. Neither party may settle with an
infringer without the prior approval of the other party if such settlement would affect the rights
of the other party under the Designated Patents.

          (c) After the Effective Date, Buyer shall be responsible for and shall have full control over
the litigation currently pending in the United States District Court, District of Nevada in which
both Seller and Buyer are co-plaintiffs against U.S. Bancorp d/b/a U.S. Bank, Certegy Inc., Certegy
Check Services, Inc., Game Financial Corporation and GameCash, Inc. (the “Existing Litigation”).
All attorneys fees and expenses arising after of the Effective Date with respect to counsel
retained on behalf of Buyer shall be paid by Buyer (even if such counsel is jointly retained for
Buyer and Seller). Seller shall have the right to retain separate counsel at its own cost and

4

 

expense with respect to the Existing Litigation. All damages, settlement proceeds, fees and
other proceeds of the Existing Litigation shall be paid to Buyer.

     5.5 Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS SECTION 5, NEITHER PARTY
MAKES ANY OTHER REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT
LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE OR
NON-INFRINGEMENT, OR ANY WARRANTIES THAT MAY ARISE FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR
USAGE OF TRADE.

6. Miscellaneous

     6.1 Marking; Requests for Disclosure. From and after the Effective Date, Seller shall mark
all Licensed Products manufactured, used, sold, offered, operated or provided by Seller or any of
its sublicensees under this Agreement with such patent notice as may be required under Title 35,
United States Code or other applicable rules or regulations in foreign jurisdictions. With respect
to the Designated Patents, Seller and its sublicensees shall respond to any request for disclosure
under 35 U.S.C. § 287(b)(4)(B) only by notifying Buyer of the request for disclosure. Seller shall
be responsible for compliance by its sublicensees with the terms and conditions of this Section 6.1
to the same extent as Seller itself, and such sublicensees shall agree in writing that they are
subject to the terms and conditions of this Section 6.1 and that Buyer shall have a right of action
against the sublicensees to the same extent as Seller itself.

     6.2 Notice. All notices required or permitted to be given hereunder shall be in writing and
shall be hand delivered or sent by certified or registered mail, private industry express courier
(with written confirmation of receipt) or facsimile (with a confirmation letter of the facsimile)
to the address specified below or to such changed address as may have been previously specified in
writing by the addressed party:

          If to Seller:

	 	 	 
	 

	 	USA Payments
	

	 	643 River Oaks Parkway
	

	 	San Jose, California 95134
	

	 	Attention: Robert Cucinotta
	

	 	Telephone: (408) 922-0635
	

	 	Facsimile: (408) 922-0463

          If to Buyer:

	 	 	 
	 

	 	Global Cash Access, Inc.
	

	 	3525 East Post Road, Suite 120
	

	 	Las Vegas, Nevada 89120
	

	 	Attention: Kirk Sanford
	

	 	Telephone (702) 855-3006
	

	 	Facsimile: (702) 262-5039

Each such notice shall be effective upon receipt.

     6.3 Nonassignability. Seller shall not, and shall have no right to, assign or transfer any of
its rights or obligations under this Agreement without the prior written consent of Buyer;
provided, however, such consent shall be deemed to have been given by Buyer to Seller in the event
of an assignment or transfer of rights to any Subsidiary of Seller or any entity that acquires all
or substantially all of Seller’s assets or equity interests or with which Seller merges, including
without limitation any corporate form into which Seller converts or with whom Seller merges, or in
the event of the grant of a security interest, lien, or other mortgage in this Agreement and the
rights granted hereunder or the realization, enforcement or foreclosure thereunder whether by
Seller or any secured creditor. For the avoidance of doubt, and without limiting the foregoing, it
is expressly agreed that nothing in this Agreement shall prohibit Seller (including, without
limitation, Seller as a debtor in possession or a trustee in bankruptcy on behalf of Seller’s
bankruptcy estate) from assuming, or from assuming and assigning, this Agreement pursuant to
section 365 of title 11 of the United States Code (the “Bankruptcy Code”) in a case under the
Bankruptcy Code in which Seller is a debtor (or under any similar law in any similar proceeding
then available to Seller, or a secured creditor of Seller, under applicable state or federal law,
including, without limitation, bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar state or federal laws relating to the

5

 

enforcement of creditors’ rights generally, or under general principles of equity) and Buyer
shall be deemed to have consented to any such assumption, or assumption and assignment, of this
Agreement. In particular, and without limiting the foregoing, Buyer hereby consents to the
assumption, and to the assumption and assignment, of this Agreement by Seller, including without
limitation Seller as a debtor in possession or a trustee in bankruptcy on behalf of Seller’s
bankruptcy estate, for all purposes under section 365 of the Bankruptcy Code including without
limitation section 365(c)(1)(B) of the Bankruptcy Code (in the event that section 365(c)(1)(A) of
the Bankruptcy Code is applicable). In the event that Seller becomes a debtor in a case under the
Bankruptcy Code, on request of Seller as a debtor in possession or a trustee appointed or elected
in such case, Buyer agrees to promptly reaffirm in writing its consent to the assumption, or the
assumption and assignment, of this Agreement for all purposes under section 365 of the Bankruptcy
Code. Except as otherwise permitted herein, any purported assignment or transfer of this Agreement
or the license herein without the prior written consent of Buyer shall be null and void.

     6.4 Governing Law; Dispute Resolution. This Agreement is to be construed in accordance with
and governed by the internal laws of the State of California (as permitted by Section 1646.5 of the
California Civil Code or any similar successor provision) without giving effect to any choice of
law rule that would cause the application of the laws of any jurisdiction other than the internal
laws of the State of California to the rights and duties of the parties. Any legal suit, action or
proceeding arising out of or relating to this Agreement shall be commenced in a federal court in
the Northern District of California or in state court in Santa Clara County, California, and each
party hereto irrevocably submits to the exclusive jurisdiction and venue of any such court in any
such suit, action or proceeding.

     6.5 No Waiver. Any failure of either party to enforce, at any time or for any period of time,
any of the provisions of this Agreement shall not be construed as a waiver of such provisions or of
the right of such party thereafter to enforce such provisions.

     6.6 Severability. If any term, clause or provision of this Agreement shall be determined to
be invalid, the validity of any other term, clause or provision shall not be affected; and such
invalid term, clause or provision shall be deemed deleted from this Agreement.

     6.7 Headings. The headings and captions used in this Agreement are for convenience only and
shall not be considered in construing or interpreting this Agreement.

     6.8 Entire Agreement. This Agreement constitutes the entire agreement and understanding of
the parties with regard to the subject matter hereof and merges and supersedes all prior and
contemporaneous discussions, negotiations, understandings and agreements between the parties
concerning the license and rights in and to the Designated Patents, including, without limitation,
that certain Patent License Agreement between Buyer and Seller effective as of March 10, 2004 (as
amended by that certain Letter Agreement Related to Technology dated as of May 13, 2004), which
shall be superseded to the extent inconsistent with this Agreement. Each party expressly waives
any implied right or obligation concerning the subject matter hereof. This Agreement may be
modified only by an instrument in writing signed by both Seller and Buyer.

     6.9 Counterparts. This Agreement may be executed in counterparts, all of which taken together
shall constitute one instrument binding upon the parties.

6

 

In Witness Whereof, the parties have caused this Agreement to be executed by their duly
authorized representatives:

	 	 	 	 	 	 	 	 	 
	USA Payments	 	 	 	Global Cash Access, Inc.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Robert Cucinotta
	 	 	 	By:
	 	/s/ Kirk Sanford
	

	 	 
	 	 	 	 	 	 
	

	 	Robert Cucinotta, Secretary
	 	 	 	 	 	Kirk Sanford, Chief Executive Officer
	 
	 	 	 	 	 	 	 	 
	Date: March 22, 2005	 	 	 	Date: March 22, 2005

7

 

Exhibit A

In the United States Patent and Trademark Office

Assignment

Whereas, USA Payments, a Nevada corporation, with offices at 643 River Oaks Parkway, San
Jose, California 95134 (“ASSIGNOR”) owns the patent registrations and applications listed in
Schedule 1 attached hereto and incorporated herein by this reference (“PATENTS”); and

Whereas, Global Cash Access, Inc., a Delaware limited liability company, with offices at
3525 East Post Road, Suite 120, Las Vegas, Nevada 89120 (“ASSIGNEE”), desires to acquire all of
the right, title and interest of ASSIGNOR in, to and under the PATENTS;

Whereas, ASSIGNOR and ASSIGNEE have entered into a certain Patent Purchase and License
Agreement dated as of March 18, 2005, assigning, among other things, all right, title and interest
in and to the PATENTS from ASSIGNOR to ASSIGNEE;

Now, Therefore, in consideration of the sum of One Dollar ($1.00) and other good and
valuable consideration paid by ASSIGNEE to ASSIGNOR, the receipt and sufficiency of which hereby is
acknowledged, ASSIGNOR does hereby sell, assign, transfer and convey unto ASSIGNEE its entire
right, title and interest in and to the PATENTS, including all divisionals, continuations,
continuations-in-part, reexaminations, substitutions, reissues, extensions and renewals of the
applications and registrations for the PATENTS (and the right to apply for any of the foregoing);
all rights to causes of action and remedies related thereto (including, without limitation, the
right to sue for past, present or future infringement, misappropriation or violation of rights
related to the foregoing); and any and all other rights and interests arising out of, in connection
with or in relation to the PATENTS.

In Witness Whereof, ASSIGNOR has caused this Assignment to be duly executed by an
authorized officer on this ___day of ___, 2005.

	 	 	 	 	 
	By:
	 	 	 	 
	

	 	

	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	

	 	

	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	

	 	

	 	 

8

 

	 	 	 	 	 	 	 
	STATE OF

	 	 	 	 
	 	)
	

	 	 	 	 	 	 
	

	 	 	 	 	 	) ss.
	COUNTY OF

	 	 	 	 	 	)
	

	 	 	 	 	 	 

     On                                         , 2005, before me, the undersigned notary public in and for said County
and State, personally                                          appeared                                         
                                                                                                                                                
                                                         ,

	 	 	 	 	 
	 

	 	 	 	personally known to me [or]
	

	 	 	 	 
	

	 	 	 	proved to me on the basis of satisfactory evidence
	

	 	 	 	 

to be the person(s) whose name(s)                                          subscribed to the within instrument and
acknowledged to me that                                          executed the same in                                          authorized
capacity(ies) and that, by                                          signature(s) on the instrument, the person(s) or the
entity(ies) upon behalf of which the person(s) acted executed the instrument.

Witness my hand and official seal.

	 	 	 
	

	 	 
	

	 	My commission expires on
	 
	 	 
	 
	 	 
	

	 	 

9

 

Schedule 1

Patents

United States Patent No. 6,081,792 entitled “ATM and POS Terminal and Method of Use Thereof.”

U.S. patent application Ser. No. 10/869754 entitled “ATM and POS Terminal and Method of Use
Thereof.”

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]