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Exhibit 10.2    
  

 
  EXECUTIVE EMPLOYMENT AGREEMENT    
  

        This Executive Employment Agreement (this "Agreement"), dated as of the 12th day of September, 2002, between Paul-Son Gaming Corporation, a Nevada
corporation (together with its successors or assigns as permitted under this agreement, the "Company"), and Eric P. Endy (the "Executive"). 

        The
Company desires to employ the Executive and enter into this Agreement embodying the terms of such employment, and the Executive desires to enter into this Agreement and to accept
such employment. 

        In
consideration of the mutual covenants and for other good and valuable consideration, the Company and the Executive (individually a "Party" and together the "Parties") agree as
follows: 

	1.
	DEFINITIONS

        (a)  "Affiliate" shall mean an entity controlling, controlled by or under common control with another entity.  "Control"shall mean possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of an entity,
whether through the ownership of voting securities, contract or otherwise. 

        (b)  "Base Salary" shall mean the salary provided for in Section 4 below subject to such increases as may be made from
time to time. 

        (c)  "Board" shall mean the Board of Directors of the Company. 

        (d)  "Business Day" shall mean any day other than a weekend, a federal or state holiday or a vacation day for the Executive. 

        (e)  "Cause" shall mean: 

        (i)    Executive's
conviction of a felony by a criminal court of competent jurisdiction or any other criminal conviction of Executive for embezzlement, fraud, misappropriation
of funds, or any crime involving moral turpitude against the Company that materially adversely affects the Company; 

        (ii)  (A)
the engagement by the Executive in gross misconduct; or 

        (B)  the
Executive's continued failure to substantially perform the Executive's obligations as a Director of the Company; or 

        (C)  the
Executive's continued failure to substantially perform the Executive's obligations set forth in this Agreement as Executive Vice President of the Company, where the
Executive has failed to substantially cure such misconduct or failure within the shorter of twenty (20) business days or thirty (30) calendar days of written notice to Executive by the
Company specifying the facts constituting such misconduct or failure, provided that Executive shall be entitled to only one (1) such notice under each clause of Section 1(e)(ii); 

        (iii)  breach
by Executive of Section 10 or 11 of this Agreement; 

        (iv)  material
breach of any other provision of this Agreement, if such breach is not cured within the shorter of twenty (20) business days or thirty
(30) calendar days following receipt by Executive of written notice by the Company specifying the facts constituting and relating to the breach, provided that Executive shall be entitled to
only one (1) such notice; or 

        (v)  loss
of Executive's gaming license issued by any governmental entity having jurisdiction over gaming or denial of the issuance of a gaming license to be issued by any
governmental entity having jurisdiction over gaming. 

        (f)    "Change in Control" shall mean the occurrence of any one of the following events: 

        (i)    any
"person" (as that term is used in Section 13(d) and 14(d) of the Securities and Exchange Act of 1934, as amended (the "Exchange Act")), other than an employee
benefit plan of the Company, or a trustee or other of their affiliates, the Endy Family Trust or the former stockholders of Bourgogne & Grasset ("B&G"), becomes the "beneficial owner" (as
defined in 

 

Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50.1% or more of the combined voting power of the Company's outstanding
securities ordinarily having the right to vote at the election of directors; or 

        (ii)  individuals
who constitute the Board of Directors on the date hereof (the "Incumbent Board") cease for any reason to constitute at least a majority thereof, provided
that any person becoming a director subsequent to the date hereof whose election was approved by at least a majority of the directors comprising the Incumbent Board, or whose nomination or election
was approved by a majority of the Board of Directors serving under an Incumbent Board, shall be, for purposes of this clause (ii), considered as if he or she were a member of the Incumbent
Board; or 

        (iii)  the
merger, consolidation or sale of all or substantially all the assets of the Company occurs where the other party to such transaction is not an Affiliate of the
Endy Family Trust, or any former stockholder of B&G. 

        (g)  "Common Stock" shall mean the common stock, $.01 par value, of the Company. 

        (h)  "Confidential Information" shall mean information in whatever form, including, without limitation, information that is
written, electronically stored, orally transmitted, or memorized, that is material, non-public information, or a trade secret as defined by Nevada Revised Statutes 600A.010 et. seq. and
that is created, discovered, developed, or otherwise becomes known to the Company, or in which property rights are held, assigned to, or otherwise acquired by or conveyed to the Company, including,
without limitation, any idea, knowledge, know-how, process, system, method, technique, research and development, technology, software, technical information, trade secret, trademark,
copyrighted material, reports, records, documentation, data, customer or supplier lists, tax or financial information, business or marketing plan, strategy, or forecast. Confidential information does
not include information that is or becomes generally known within the Company's industry through no act or omission by the Executive; provided, however, that the compilation, manipulation, or other
exploitation of generally known information may constitute Confidential Information. 

        (i)    "Constructive Termination Without Cause" shall mean that, without the Executive's prior written consent, one or more of
the following events occurs: 

        (a)  the
Executive is removed from the position of Executive Vice President for any reason other than the termination of employment for Cause, Disability or death; 

        (b)  the
assignment to Executive of duties incommensurate with his status as Executive Vice President; 

        (c)  the
Executive's Base Salary as provided for in Section 4 below is decreased or benefits under any employee benefit plan or program of the Company is or are
reduced, except pursuant to change in such plan or program affecting all employees of the Company; 

        (d)  the
Executive's principal office is relocated outside of the Las Vegas, Nevada metropolitan area; 

        (e)  the
Company fails to obtain a written agreement from any successors of the Company to assume and perform this Agreement; 

        (f)    the
Executive is not reelected to the Board of Directors during the Term of Employment; or 

        (g)  there
is a Change of Control and Executive's employment is terminated for any reason other than Cause, Disability or death within ninety (90) days thereafter. 

        (j)    "Disability" shall mean the Executive's inability, for a period of six consecutive months, to render substantially the
services provided for in Section 3(a) below by reason of mental or physical disability, whether resulting from illness, accident or otherwise. 

        (k)  "Term of Employment" shall mean the five-year period specified in Section 2 below. 

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	2.
	TERM
OF EMPLOYMENT 

        (a)  The
Company hereby employs the Executive, and the Executive hereby accepts employment with the Company, in the position and with the duties and responsibilities as set
forth in Section 3 below for the Term of Employment, subject to the terms and conditions of the Agreement. 

        (b)  The
Term of Employment shall be for a period of five years commencing on September 12, 2002, and, unless sooner terminated as provided in Section 10,
terminating at 11:59 p.m. (P.D.T.) on September 12, 2007. 

	3.
	POSITION,
DUTIES AND AUTHORITIES 

        (a)  During
the Term of Employment and subject to the customary, reasonable policies and directives established by the President, the Executive shall be employed as
full-time Executive Vice President, with the duties, responsibilities and authorities commensurate with such title as may be assigned from time to time by the President, subject to
material changes in the Executive's responsibilities being approved by the Board of Directors of the Company. The Executive shall report to and be under the reasonable direction and control of the
President of the Company. 

        (b)  The
Executive is permitted to engage in charitable and community affairs, managing personal investments and serving as a member of boards of directors of industry
associations or non-profit or for profit organizations so long as such activities do not materially interfere, in the reasonable opinion of the President, with the Executive carrying out
his duties and responsibilities under this Agreement. Prior to the date hereof, the Executive has disclosed to the Company in writing his current involvement in such entities or organizations. Not
less often than on January 1 of each year, the Executive shall disclose in writing to the President of the Company any changes to the information with respect to involvement in such entities or
organizations. 

	4.
	BASE
SALARY 

        During
the Term of Employment, the Executive shall be paid by the Company a Base Salary payable no less frequently than in equal bi-weekly installments at an annualized rate
of $200,000; subject to increase as may be determined by the Company within its sole discretion and as set forth below. 

	5.
	PERFORMANCE
BONUS 

        The
Executive shall be eligible to participate in whatever performance bonus plans or programs available to other senior level executives in the Company performing functions and duties
similar to Executive, provided that any award of bonus to the Executive shall be in the sole discretion of the Board of Directors of the Company. 

	6.
	STOCK
OPTIONS 

        The
Executive shall be eligible to participate in any stock option plan(s) available to senior level executives of the Company performing functions and duties similar to the Executive.
Any award of stock options shall be in the sole discretion of the Board of Directors or the Compensation Committee of the Board. The terms of any stock options offered to the Executive shall be as
provided in the Company's Stock Option Plan presently, Paul-Son Gaming Corporation 1994 Long Term Incentive Plan, or any successor(s) thereof. 

	7.
	EMPLOYEE
BENEFIT PROGRAMS 

        (a)  During
the Term of Employment, the Executive and his dependents shall be entitled to participate in whatever employee benefit plans the Company provides to its employees
generally, such as medical, surgical, hospitalization, dental and visual insurance coverage. For such coverage, the Company shall pay the entire premium for Executive and one-half the
premium for Executive's dependents. Company will pay all costs and expenses for these insurance program(s) or plan(s). 

        (b)  During
the Term of Employment, the Executive shall be entitled to participate in all employee incentive and benefit programs of the Company now or hereafter made
available to the Company's senior executives or salaried employees generally, as such programs may be in effect from time-to-time, 

3

 

including, without limitation, pension and other retirement plans, profit-sharing plans, group life insurance, accidental death and dismemberment insurance, hospitalization, surgical, major medical
and dental coverage, sick leave (including salary continuation arrangements), long-term disability, holidays and vacations. 

        (c)  During
the Term of Employment, the Company shall continue to provide the Executive, subject to insurability as a normal risk and at standard rates, with its current term
life insurance coverage in an amount not less than $1,000,000. To the extent available, the Executive shall be provided an opportunity to purchase additional life insurance, at the Executive's own
expenses. To the extent possible, the amount of life insurance described in the first two sentences of this Section 7(c) shall be provided by an individual policy that gives the Executive the
right to assume the policy in the event of termination of employment. 

        (d)  During
the Term of Employment, the Executive shall be entitled to two weeks paid vacation per calendar year in accordance with the Company vacation policy as in effect
from time to time. 

	8.
	BUSINESS
EXPENSE REIMBURSEMENT AND PERQUISITES 

        (a)  During
the Term of Employment, the Executive shall be entitled to receive reimbursement by the Company, upon submission of adequate documentation, for all reasonable
out-of-pocket expenses incurred by the Executive in accordance with the Company's policies in performing services under this Agreement. 

        (b)  During
the Term of Employment, the Executive shall be entitled to the use of an automobile and reimbursement for all operating expenses associated therewith, including,
without limitation, collision and liability insurance. The Executive shall be entitled to a monthly car allowance in an amount not to exceed $500.00. 

        (c)  During
the Term of Employment, the Executive shall be entitled to all other perquisites and benefits provided generally to other senior level executives of the Company. 

	9.
	DEFERRED
COMPENSATION 

        If
the Company adopts a compensation deferral program, the Executive shall be entitled to defer up to 25% of the Executive's Base Salary for each calendar year pursuant to such program. 

	10.
	TERMINATION
OF EMPLOYMENT 

        (a)  Termination Due to Death or Disability.    In the event of the cessation of the Executive's employment under
this Agreement due to death or Disability, the Executive or the Executive's legal representatives, as the case may be, shall be entitled to: 

        (i)    (A)
in the case of death, continued Base Salary and benefits under Section 6 (a) at the rate in effect at the time of death through the date of death, or
(B) in the case of Disability, the disability benefits available under any disability insurance provided by the Company; (ii) any performance or other bonus, if any, earned under
Section 5 hereof for a fiscal period already completed but not yet paid; (iii) reimbursement for expenses incurred but not yet reimbursed by the Company; 

        (iv)  any
deferred compensation, including any interest accrued on such deferred amounts; and 

        (iv)  any
other compensation and benefits to which the Executive or legal representatives may be entitled under applicable plans, programs and agreements of the Company. 

        (b)  Termination by the Company for Cause.    The Board of Directors of the Company may elect to give the Executive
written notice of its intention to terminate for Cause, specifying in such notice the event forming the basis for Cause. Subject only to any notice provided for in Section 1(e), termination
shall be effective immediately upon delivery of notice hereunder. In the event of the Executive's 

4

 

employment is terminated by the Board of Directors of the Company for Cause, the Executive shall be entitled to: 

        (i)    Base
Salary at the rate in effect at the time of termination through the date of termination of employment; 

        (ii)  reimbursement
for expenses incurred but not yet reimbursed by the Company; 

        (iii)  any
deferred compensation, including any interest accrued on such deferred amounts; and 

        (iv)  any
other compensation and benefits to which the Executive may be entitled under applicable plans, programs and agreements of the Company. 

        (c)  Termination Without Cause or Constructive Termination Without Cause.    In the event the Executive's employment
is terminated by the Board of Directors of the Company without Cause (which shall not include a termination pursuant to Section 9(a)) or in the event of a Constructive Termination Without
Cause, the Executive shall be entitled to: 

        (i)    the
Base Salary payable in bi-weekly installments for the remainder of the Term of Employment (the "Base Salary Termination Payment"); 

        (ii)  any
performance or other bonus, if any, earned under Section 5 hereof for a fiscal period already completed but not yet paid; 

        (iii)  reimbursement
for expenses incurred but not yet reimbursed by the Company; 

        (iv)  any
deferred compensation, including any interest accrued on such deferred amounts; and 

        (v)  any
other compensation and benefits to which the Executive may be entitled under applicable plans, programs and agreements of the Company. 

Termination
Without Cause shall be effective immediately, unless a later date is stated, upon delivery of a written notice of such termination from the Company to the Executive. In the event the
Executive elects to resign based upon a Constructive Termination Without Cause, the Executive shall give written notice thereof to the Company and state therein the effective date of such resignation
which shall not be later than five (5) Business Days from the date of the written notice. 

        (d)  Voluntary Termination.    A "Voluntary Termination" shall mean a termination of employment by the Executive on
his own initiative other than a termination under Section 9(a) or 9(c). In the event of a Voluntary Termination, the Executive shall be entitled to: 

        (i)    Base
Salary at the rate in effect at the time of termination through the date of termination of employment; 

        (ii)  reimbursement
for expenses incurred but not yet reimbursed by the Company; 

        (iii)  any
deferred compensation, including any interest accrued on such deferred amounts; and 

        (iv)  any
other compensation and benefits to which the Executive may be entitled under applicable plans, programs and agreements of the Company. 

A
Voluntary Termination shall be effective upon the expiration of ten (10) days after written notice is delivered to the Company, unless another period of time is agreed to in writing by the
Parties. 

        (e)  No Mitigation; No Offset.    In the event of any termination of the Executive's employment under the Agreement,
the Executive shall be under no obligation to seek other employment, and there shall be no offset against amounts due the Executive under the Agreement on account of any remuneration attributable to
any subsequent employment that the Executive may obtain. 

	11.
	COVENANT
NOT TO COMPETE 

        (a)  During
the Term of Employment and the one (1) year period following the termination thereof, the Executive shall not, without the prior written consent of the
Company, directly or indirectly, for any reason, engage in, or assist, or have any interest in, including, without limitation, as a principal, consultant, employee, owner, shareholder, director,
officer, partner, member, advisor, agent, 

5

 

or financier, in any entity that engages in Restricted Activities (as defined herein) in the United States or in any other country in which the Company is conducting business at the time of
termination of the Executive's employment with the Company (the "Restricted Areas") or render services (including, without limitation, research, development, marketing or sales) to any entity engaged
in competition with the Company or any of its affiliates in a Restricted Area, or have a financial interest in any such entity; provided, however, that this Section shall not prohibit an investment by
the Executive not exceeding 1% of the outstanding securities of a publicly-traded company; 

        (b)  "Restricted
Activities" shall mean: 

        (i)    Engaging
in the design, development, promotion, marketing, distribution or sale of casino or gaming products of the type developed, promoted, marketed, distributed
and/or sold by the Company; and 

        (ii)  Engaging
in research, development, promotion, marketing, distribution or selling of a product, process or service which can be substituted for any product, process or
service of the Company. 

        (c)  For
purposes of this Section 11(a), an entity is "in competition with the Company" if it produces or distributes any product or performs any service which can be
substituted for any of the products of the Company, or services performed by the Company. 

        (d)  During
the Term of Employment and the three (3) year period following the termination thereof, the Executive shall not, without the prior written consent of the
Company, directly or indirectly, for any reason: 

        (i)    approach,
solicit or accept business from, or otherwise do business or communicate in any way with, any customer of the Company or any person who was a customer of the
Company at any time during the twelve (12) months preceding the date of termination of the Executive's employment with the Company (except to the extent necessary solely to ascertain whether
such person or entity is or was a customer of the Company) in connection with any Restricted Activity; 

        (ii)  directly
or indirectly influence any of the Company's employees to terminate their employment with the Company or accept employment with any other employee or solicit
for employment, offer employment to or employ, whether for the Executive's own account or the account of any other person or entity; or 

        (iii)  materially
interfere with any of the Company's business relationships, including, without limitation, those with customers, suppliers, consultants, attorneys, and
other agents, whether or not evidenced by written or oral agreements. 

        As
used in this Section 10, the "Company" shall include the Company and each of its Affiliates. 

	12.
	COVENANTS
TO PROTECT CONFIDENTIAL INFORMATION 

        The
Executive shall not, during the Term of Employment or anytime thereafter, without prior written consent of the Company, divulge, publish or otherwise disclose to any other person any
Confidential Information regarding the Company except in the course of carrying out the Executive's responsibilities on behalf of the Company (e.g., providing information to the Company's attorneys,
accountants, bankers, etc. who reasonably need to know such information) or if required to do so pursuant to the order of a court having jurisdiction over the subject matter or a summons, subpoena or
order in the nature thereof of any legislative body (including any committee thereof and any litigation or dispute resolution method against the Company related to or arising out of this Agreement) or
any governmental or administrative agency. As used in this Section 11, the "Company" shall include the Company and each of its affiliates. 

	13.
	INDEMNIFICATION

        (a)  The
Company shall indemnify the Executive to the fullest extent permitted by Nevada law in effect as of the date hereof against all costs, expenses, liabilities and
losses (including, without limitation, attorneys' fees, judgments, fines, penalties, ERISA excise taxes and amounts paid in 

6

 

settlement) reasonably incurred by the Executive in connection with a Proceeding. For the purposes of this Section 12, a "Proceeding" shall mean any action, suit or proceeding by reason of the
fact that the Executive is or was an officer, director or employee, trustee or agent of any other entity at the request of the company. The indemnification allowed by this section does not include
suits initiated by the Executive against the Company. 

        (b)  The
Company shall advance to the Executive all reasonable costs and expenses incurred by the Executive in connection with a Proceeding within twenty (20) after
receipt by the Company of a written request for such advance. Such request shall include an itemized list of the costs and expenses and an agreement by the Executive to repay the amount of such
advance if it is determined by a court of competent jurisdiction that he is not entitled to be indemnified by the Company against such costs and expenses, under Nevada law. 

        (c)  The
Company shall not settle any Proceeding or claim in any manner which would impose on the Executive any penalty or limitation without the Executive's prior written
consent. Moreover, the Executive shall not settle any proceeding subject to indemnification pursuant to this Section without the prior written consent of the Company. Neither the Company nor the
Executive will unreasonably withhold its or the Executive's consent to any proposed settlement. 

	14.
	ASSIGNABILITY;
BINDING NATURE 

        This
Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, heirs and assigns. No rights or obligations under this Agreement may be
assigned or transferred by the Executive or the Company except that (a) such rights or obligations of the Company may be assigned or transferred pursuant to a merger or consolidation in which
the Company is not the continuing entity, or the sale or liquidation of all or substantially all of the assets of the Company, provided that the assignee or transferee is the successor to all or
substantially all of the assets of the Company and such assignee or transferee assumes the liabilities, obligations and duties of the Company, as contained in the Agreement, either contractually or as
a matter of law, and (b) such obligations of the Company may be transferred by the Executive by will or pursuant to the laws of descent or distribution. The Company shall take all reasonable
legal action necessary to effect such assignment and assumption of the Company's liabilities, obligations and duties under the Agreement in circumstances described in clause (a) of the
preceding sentence. 

	15.
	REPRESENTATION

        The
Company and the Executive respectively represent and warrant to each other that each respectively is fully authorized and empowered to enter into this Agreement and that their
entering into this Agreement and the performance of their respective obligations under this Agreement will not violate any agreement between the Company or the Executive respectively and any other
person, firm organization or any law or governmental regulation. 

	16.
	EFFECT
OF TERMINATION 

        Except
as otherwise set forth in this Agreement, this Agreement shall continue in effect upon and after the termination of Executive's employment for any reason or the expiration of the
Term of Employment to the extent necessary for the enforcement of any of its provisions that apply subsequent to any such termination or expiration. 

	17.
	ENTIRE
AGREEMENT 

        This
Agreement contains the entire agreement between the Parties and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral,
between the parties. 

	18.
	AMENDMENT
OR WAIVER 

        This
Agreement cannot be changed, modified or amended without the consent in writing of both the Executive and the Company. No waiver by either Party at any time of any breach by the
other Party of any condition or provision of the Agreement shall be deemed a waiver of a similar or 

7

 

dissimilar condition or provision at the same or at any prior or subsequent time. Any waiver must be in writing and signed by the Executive or an authorized officer of the Company, as the case may
be. 

	19.
	SEVERABILITY

        In
the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this
Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law. If any particular provision is prohibited by law in a particular jurisdiction,
then the Parties agree that such particular provision shall not be enforceable in that jurisdiction only. 

	20.
	SURVIVORSHIP

        Except
as otherwise set forth in this Agreement, the respective rights and obligations of the Parties shall survive any termination of this Agreement to the extent necessary to the
intended preservation of such rights and obligations. 

	21.
	GOVERNING
LAW 

        This
Agreement shall be governed by and interpreted in accordance with the laws of the State of Nevada without reference to principles of conflict of law. 

	22.
	SETTLEMENT
OF DISPUTES 

        (a)  When Required.    If a dispute arises regarding the interpretation of, arising out of, or related to this
Agreement that cannot be resolved through informal means, the parties hereto shall submit such dispute to mediation in accordance with the Commercial Mediation Rules of the American Arbitration
Association if they can agree to do so, otherwise to formal arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association; provided, however that if the
parties begin in mediation, any party to the dispute may require arbitration at any time upon written notice in accordance with the Commercial Arbitration Rules. 

        (b)  Number of Arbitrators; Authority; Forum.    To the extent permitted by applicable law, arbitration proceedings
shall be conducted by one arbitrator in Clark County, Nevada. Without limitation of his or her general authority, the arbitrator shall have the right to order reasonable discovery in accordance with
the Nevada Rules of Civil Procedure. The final decision of the arbitrator shall be binding and enforceable without further legal proceedings in court or otherwise; provided, however, that any party
may enter judgment upon the award in any court of competent jurisdiction. The final decision arising from arbitration shall be accompanied by a written opinion and decision, which shall describe the
rationale underlying the award and shall include findings of fact and conclusions of law. 

        (c)  Costs of Arbitration.    The parties to any mediation or arbitration proceeding shall each bear their own
attorneys' fees and shall share the costs of the proceedings equally. 

        (d)  Good Faith Participation.    All parties shall have a duty to participate in mediation or arbitration
proceedings in good faith and to pursue the same in a timely manner. 

        (e)  No Arbitration for Equitable Relief.    Notwithstanding any provision of this section, the requirement to
mediate or arbitrate disputes shall not apply to any action for equitable relief with respect to this
Agreement or any matter it contemplates. The forum for any such action shall be the appropriate court in Clark County, Nevada, and all parties agree to both subject matter and in personam jurisdiction
in that forum for such purpose. The Executive expressly agrees that, in addition to any other rights or remedies which the Company may have, the Company shall be entitled to injunctive and other
equitable relief to prevent a breach of Sections 10 and 11 by the Executive including a temporary restraining order or temporary injunction from any court of competent jurisdiction restraining any
threatened or actual violation, and the Executive consents to the entry of such an order and injunction relief and waives the making of a bond or undertaking as a condition for obtaining such relief. 

8

 

        (f)    Judgments.    Notwithstanding any provision of this section, the parties consent to the jurisdiction of the
appropriate court in Clark County, Nevada, for the entry and enforcement of any judgment upon any arbitration award rendered, and all parties agree to both subject matter and in personam jurisdiction
for such purposes. 

	23.
	NOTICES

        Any
notice given to either Party shall be in writing and shall be deemed to have been given when delivered personally or sent by certified or registered mail, postage prepaid, return
receipt requested, duly addressed to the Party concerned at the address indicated below or to such changed address as such Party may subsequently give notice of: 

If
to the Company or the Board of Directors: 

Paul-Son
Gaming Corporation

1700 South Industrial Road

Las Vegas, Nevada 89102

Attn: Chief Executive Officer 

With
a copy to: 

CMS
Bureau Francis Lefebvre—New York

712 Fifth Avenue, 29th Floor

New York, New York 10019

Attn: Carina Levintoff, Esq. 

If
to the Executive: 

Eric
P. Endy

8100 Moonstone Circle

Las Vegas, Nevada 89128 

	24.
	HEADINGS

        The
headings of the sections contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this
Agreement. 

	25.
	COUNTERPARTS

        This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

	26.
	TAXES 

        The
Compensation payable is stated in gross amounts and shall be subject to such withholding taxes and other taxes as may be required by law. 

        IN
WITNESS WHEREOF, the undersigned have executed the Agreement as of the date first written above. 

	"Company"	 	"Executive"
	 	 	 	 
	PAUL-SON GAMING CORPORATION,

a Nevada corporation	 	

	 	 	 	Eric P. Endy
	 	 	 	 
	By:	
	 	 
	 	
	 	 
	 	 	 	 
	Its:	
	 	 
	 	 	 	 

9

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Exhibit 10.2

EXECUTIVE EMPLOYMENT AGREEMENTQuickLinks
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Exhibit 4.1    
  

Execution Copy  

SUPPLEMENTAL INDENTURE  

        SUPPLEMENTAL INDENTURE (this "Supplemental Indenture"), dated as of October 10, 2002, by and between Holley Performance Products Inc., a Delaware
corporation (the "Company"), and State Street Bank and Trust Company, a Massachusetts trust company, as trustee under the Indenture referred to below (the "Trustee"). 

WITNESSETH  

        WHEREAS, the Company has executed and delivered to the Trustee an Indenture (the "Indenture"), dated as of September 20, 1999, providing for the issuance
of an aggregate principal amount of up to $250.0 million of debt securities; 

        WHEREAS,
the Company has issued $150.0 million of 121/4% Senior Notes due 2007, Series B (the "Notes") under the Indenture; 

        WHEREAS,
the Company desires to amend Section 4.09(b)(2) of the Indenture, pursuant to this Supplemental Indenture, to eliminate the formula limit on indebtedness permitted to be
incurred under the existing Credit Facility and substitute therefor a specific dollar limit in the aggregate principal amount of $45.0 million, subject to reduction by the amount of
Indebtedness, if any, outstanding pursuant to Section 4.09(b)(14) of the Indenture; 

        WHEREAS,
Section 9.02 if the Indenture provides that with the consent of Holders of at least a majority in principal amount of the Notes then outstanding (the "Requisite
Consents"), the Company and the Trustee may enter into a supplemental indenture for the purpose of amending or supplementing certain provisions of the Indenture; 

        WHEREAS,
the Requisite Consents have been provided; 

        WHEREAS,
pursuant to Section 9.06 of the Indenture, the Company and the Trustee desire to execute and deliver this Supplemental Indenture; and 

        WHEREAS,
the Company directs the Trustee to enter into the Supplemental Indenture. 

        NOW
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto mutually covenant and
agree for the equal and ratable benefit of the Holders of the Notes as follows: 

        1.    Capitalized Terms.    Capitalized terms used herein without definition shall have the meanings assigned to them
in the Indenture. 

        2.    Amendment to the Indenture.    Subject to Section 3 hereof, Section 4.09 of the Indenture is
hereby amended to read in its entirety as follows: 

        "Section 4.09.
Incurrence of Indebtedness and Issuance of Preferred Stock.

        (a)  The
Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become
directly or indirectly liable, contingently or otherwise, with respect to (collectively, "incur") any Indebtedness (including Acquired Debt), and the
Company will not issue any Disqualified Stock and will not permit any of its Restricted Subsidiaries to issue any shares of preferred stock; provided
that the Company and any Guarantor may incur Indebtedness (including Acquired Debt), and the Company may issue Disqualified Stock, if the Fixed Charge Coverage Ratio for the Company's most recently
ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock is
issued 

 

would have been at least 2.0 to 1, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred, or the
Disqualified Stock had been issued, as the case may be, at the beginning of such four-quarter period. 

        (b)  So
long as no Default shall have occurred and be continuing or would be caused thereby, clause (a) of this Section 4.09 will not prohibit the incurrence of
any of the following items of Indebtedness (collectively, "Permitted Debt"): 

        (1)  the
incurrence by the Company and the Guarantors of Indebtedness represented by the Notes, and the Subsidiary Guarantees thereof, not to exceed $150.0 million at
any one time outstanding; 

        (2)  the
incurrence by the Company or any Restricted Subsidiaries of Indebtedness under the Credit Facility in an aggregate principal amount at any time outstanding not to
exceed $45.0 million, less the amount of Indebtedness, if any, outstanding pursuant to clause (14)
below;

        (3)  the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness incurred pursuant to an Acquisition Facility under the Credit Facility in an
aggregate principal amount not to exceed $30.0 million (reduced by any permanent repayments or prepayments with the proceeds of Asset Sales actually made thereunder); 

        (4)  other
Indebtedness of the Company and the Restricted Subsidiaries outstanding on the Issue Date reduced by the amount of any scheduled amortization payments or mandatory
prepayments when actually paid or permanent reductions therein; 

        (5)  the
incurrence by the Company or any of its Restricted Subsidiaries of the Indebtedness represented by Capital Lease Obligations incurred for the purpose of financing
all or any part of the purchase price or cost of construction or improvement of property, plant or equipment or Purchase Money Indebtedness, in an aggregate principal amount not to exceed
$5.0 million at any time outstanding; 

        (6)  the
incurrence by the Company or any of its Restricted Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are used to
refund, refinance or replace,
Indebtedness (other than intercompany Indebtedness) that was permitted to be incurred under clause (a) of this Section 4.09 or clause (1) (without limitation as to principal
amount outstanding), (4) or (5) of this paragraph; 

        (7)  the
incurrence by the Company or any of its Restricted Subsidiaries of intercompany Indebtedness between or among the Company and any of its Wholly Owned Restricted
Subsidiaries; provided that: 

        (a)  if
the Company or any Guarantor is the obligor on such Indebtedness, such Indebtedness must be unsecured and expressly subordinated to the prior payment in full in cash
of all Obligations with respect to the Notes, in the case of the Company, or the Subsidiary Guarantee of such Guarantor, in the case of a Guarantor; and 

        (b)(i)  any
subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by a Person other than the Company or a Wholly
Owned Restricted Subsidiary thereof and (ii) any sale or other transfer of any such Indebtedness to a Person that is not either the Company or a Wholly Owned Restricted Subsidiary thereof shall
be deemed, in each case, to constitute an incurrence of such Indebtedness by the Company or such Restricted Subsidiary, as the case may be, that was not permitted by this clause (7); 

2

 

        (8)  the
incurrence by the Company or any of its Restricted Subsidiaries of Hedging Obligations; 

        (9)  the
guarantee by the Company or any of the Guarantors of Indebtedness of the Company or a Restricted Subsidiary of the Company that was permitted to be incurred by
another provision of this Section 4.09; 

        (10) the
incurrence by the Company or any of the Guarantors of additional Indebtedness in an aggregate principal amount (or accreted value, as applicable) at any time
outstanding, including all Permitted Refinancing Indebtedness incurred to refund, refinance or replace any Indebtedness incurred pursuant to this clause (10), not to exceed $10.0 million
at any one time outstanding; 

        (11) the
accrual of interest, accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of additional Indebtedness with
the same terms, and the payment of dividends on Disqualified Stock in the form of additional shares of the same class of Disqualified Stock; provided,
in each such case, that the amount thereof is included in Fixed Charges of the Company as accrued; 

        (12) the
incurrence by the Company of Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently
(except in the case of daylight overdrafts) drawn against insufficient funds in the ordinary course of business; provided that such Indebtedness is
extinguished within five Business Days of incurrence; 

        (13) the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness represented by letters of credit for the account of the Company or such Restricted
Subsidiary, as the case may be, in order to provide security for workers' compensation claims, payment obligations in connection with self-insurance or similar requirements in the ordinary
course of business; and 

        (14) the
incurrence by Foreign Restricted Subsidiaries of Indebtedness in an aggregate principal amount at any one time outstanding not to exceed the greater of
$5.0 million or the sum of (a) 85% of the net book value of accounts receivable of the Foreign Restricted Subsidiaries and (b) 55% of the net book value of the inventory of the
Foreign Restricted Subsidiaries. 

        For
purposes of determining compliance with this Section 4.09, in the event that an item of proposed Indebtedness meets the criteria of more than one of the categories of
Permitted Debt described in clauses (1) through (14) above, or is entitled to be incurred pursuant to clause (a) of this Section 4.09, the Company will be permitted to
classify such item of Indebtedness on the date of its incurrence in any manner that complies with this covenant. 

        (c)  The
Company will not incur, create, issue, assume, guarantee or otherwise become liable for any Indebtedness that is subordinate or junior in right of payment to any
other Indebtedness of the Company unless such Indebtedness is equally subordinate or junior in right of payment to the Notes. No Guarantor will incur, create, issue, assume, guarantee or otherwise
become liable for any Indebtedness that is subordinate or junior in right of payment to any other Indebtedness of such Guarantor unless such Indebtedness is equally subordinate or junior in right of
payment to such Guarantor's Subsidiary Guarantee." 

        3.    Indenture.    Except as amended by this Supplemental Indenture, the Indenture is in all respects ratified and
confirmed, and all the terms, conditions and provisions thereof shall remain in full force and effect. 

3

 

        4.    New York Law to Govern.    THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS
SUPPLEMENTAL INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO
THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

        5.    Counterparts.    The parties may sign any number of copies of this Supplemental Indenture. Each signed copy
shall be an original, but all of them together represent the same agreement. 

        6.    Effect of Headings.    The Section headings herein are for convenience only and shall not affect the
construction hereof. 

        7.    The Trustee.    The Trustee shall not be responsible in any manner whatsoever or in respect of the validity or
sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Company. 

        8.    Effectiveness.    This Supplemental Indenture shall become effective as of the date first written above. 

        9.    Successors and Assigns.    All agreements of the Company in this Supplemental Indenture and the Notes shall bind
their successors and all agreements of the Trustee in this Supplemental Indenture shall bind its successors. 

        [Signatures
on the following page] 

4

QuickLinks

Exhibit 4.1

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