Document:

Amendment Number One to Financing Agreement and Waiver, dated as of March20,2007

 Exhibit 10.1 
 Execution Version 
 AMENDMENT NUMBER ONE 
 TO FINANCING AGREEMENT AND WAIVER 
 This AMENDMENT NUMBER ONE TO FINANCING AGREEMENT AND WAIVER (this “Amendment”) is entered into as of March 20, 2007, by and among PROGRESSIVE GAMING INTERNATIONAL CORPORATION, a Nevada corporation
(the “Borrower”), the lenders party hereto (each a “Lender” and collectively, the “Lenders”), ABLECO FINANCE LLC, a Delaware limited liability company (“Ableco”), as
collateral agent for the Lenders (in such capacity, together with any successor collateral agent, the “Collateral Agent”), and Ableco, as administrative agent for the Lenders (in such capacity, together with any successor
administrative agent, the “Administrative Agent” and together with the Collateral Agent, each an “Agent” and collectively, the “Agents”) with reference to the following: 
 WHEREAS, the Borrower, each subsidiary of the Borrower listed as a “Guarantor” on the signature pages thereto (each a
“Guarantor” and collectively, jointly and severally, the “Guarantors”), the Lenders, and the Agents are parties to that certain Amended and Restated Financing Agreement, dated as of August 4, 2006 (as amended,
restated, supplemented, or otherwise modified from time to time, the “Financing Agreement”); 
 WHEREAS, the Borrower
has requested that the Agents and Lenders waive the Events of Default (the “Designated Events of Default”) that have arisen as a result of: 
 1. the Borrower’s failure to comply with Section 7.03(a) of the Financing Agreement by permitting the ratio of (i) Consolidated Senior Indebtedness of the Borrower and its Subsidiaries as of the
last day of the fiscal quarter ending December 31, 2006 to (ii) Adjusted Pro Forma EBITDA of the Borrower and its Subsidiaries for the twelve month period ended as of the last day of such fiscal quarter to be greater than 2.50:1.00;

 2. the Borrower’s failure to comply with Section 7.03(b) of the Financing Agreement by permitting the ratio of
(i) Consolidated Funded Indebtedness of the Borrower and its Subsidiaries as of the last day of the fiscal quarter ending December 31, 2006 to (ii) Adjusted Pro Forma EBITDA of the Borrower and its Subsidiaries for the twelve month
period ended as of the last day of such fiscal quarter to be greater than 10.00:1.00; 
 3. the Borrower’s failure to comply with
Section 7.03(c) of the Financing Agreement by permitting the Adjusted Pro Forma EBITDA for the period from July 1, 2006 through December 31, 2006 to be less than $3,750,000; 
 4. the Borrower’s failure to comply with Section 7.03(e) of the Financing Agreement by permitting the ratio of (i) Adjusted
Pro Forma EBITDA of Borrower and its Subsidiaries for the period from July 1, 2006 through December 31, 2006 to (ii) Consolidated Net Interest Expense of the Borrower and its Subsidiaries for such period to be less than 1.00:1.00; and

 5. the Loan Parties’ failure to comply with the covenant set forth in Section 5.03(c) of
the Financing Agreement by not delivering to the Collateral Agent or a custodian appointed by the Collateral Agent, within 5 Business Days after the Borrower obtained the necessary consents and approvals set forth in Section 5.03(b) of
the Financing Agreement, the original stock certificates representing all of the stock of the Gaming Subsidiaries, accompanied by undated stock powers executed in blank. 
 WHEREAS, the Borrower has requested that the Agents and Lenders make certain amendments to the Financing Agreement; and 
 WHEREAS, upon the terms and conditions set forth herein, the Agents and Lenders are willing to accommodate the Borrower’s requests. 
 NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Defined Terms. Capitalized terms
used herein and not otherwise defined herein shall have the meanings ascribed to them in the Financing Agreement, as amended hereby. 
 2.
Amendments to Financing Agreement. 
 (a) Section 1.01 of the Financing Agreement is hereby amended by amending and
restating the following definition in its entirety: 
 ““Applicable Margin Leverage Ratio” means
Consolidated Senior Indebtedness of Borrower and its Subsidiaries as of any date to Adjusted Pro Forma EBITDA of the Borrower and its Subsidiaries for the twelve month period ended as of such date.” 
 (b) Section 1.01 of the Financing Agreement is hereby amended by adding the following definitions in proper alphabetical order:

 ““Applicable LIBOR Rate Margin” means, as of any date of determination, the following margins based
upon the Borrower’s most recent Applicable Margin Leverage Ratio calculation; provided, however, that at any time that a Default or an Event of Default has occurred until the first day of the first fiscal quarter following the
date on which such Default or Event of Default is no longer continuing, the Applicable LIBOR Rate Margin shall be at the margin in the row styled “Level I”:” 
  

					
	 Level
	 	 Applicable Margin
 Leverage Ratio
	 	 Applicable LIBOR
 Rate Margin

	 I
	 	Greater than or equal to 4.50:1.00	 	6.50%
			
	 II
	 	Less than 4:50:1.00 but greater than or equal to 3.50:1.00	 	6.00%
			
	 III
	 	Less than 3.50:1.00 but greater than or equal to 3.00:1.00	 	5.50%
			
	 IV
	 	Less than 3.00:1.00 but greater than or equal to 2.00:1.00	 	5.00%
			
	 V
	 	Less than 2.00:1.00 but greater than or equal to 1.50:1.00	 	4.50%
			
	 VI
	 	Less than 1.50:1.00	 	4.00%

  

 2 

 Except as set forth in the foregoing proviso, the Applicable LIBOR Rate Margin shall be
based upon the most recent calculation of the Applicable Margin Leverage Ratio for the Borrower, which will be calculated as of the end of each fiscal quarter. Except as set forth in the initial proviso in this definition, the Applicable LIBOR Rate
Margin shall be re-determined quarterly on the first day of the fiscal quarter following the date of delivery to Agents of the certified calculation of the Applicable Margin Leverage Ratio pursuant to Section 7.01(a); provided,
however, that if the Borrower fails to provide such certification when such certification is due, the Applicable LIBOR Rate Margin shall be set at the margin in the row styled “Level I” as of the first day of the month following the
date on which the certification was required to be delivered until the date on which such certification is delivered (on which date (but not retroactively), without constituting a waiver of any Default or Event of Default occasioned by the failure
to timely deliver such certification, the Applicable LIBOR Rate Margin shall be set at the margin based upon the calculations disclosed by such certification. In the event that the information contained in any financial statement or certificate
delivered pursuant to this Agreement is shown to be inaccurate, and such inaccuracy, if corrected, would have led to the application of a higher Applicable LIBOR Rate Margin for any period (an “Applicable LIBOR Rate Period”) than
the Applicable LIBOR Rate Margin actually applied for such Applicable LIBOR Rate Period, then (i) the Borrower shall promptly (but in any event within 2 Business Days) deliver to the Agents a correct certificate for such Applicable LIBOR Rate
Period, (ii) the Applicable LIBOR Rate Margin shall be determined as if the corrected higher Applicable LIBOR Rate Margin were applicable for such Applicable LIBOR Rate Period, and (iii) the Borrower shall promptly (but in any event within
2 Business Days) deliver to the Administrative Agent full payment in respect of the accrued additional interest on the Obligations as a result of such increased Applicable LIBOR Rate Margin for such Applicable LIBOR Rate Period, which payment shall
be promptly applied by the Administrative Agent to the affected Obligations.” 
 ““Applicable Reference Rate
Margin” means, as of any date of determination, the following margins based upon the Borrower’s most recent 

  

 3 

 
Applicable Margin Leverage Ratio calculation; provided, however, that at any time that a Default or an Event of Default has occurred until the
first day of the first fiscal quarter following the date on which such Default or Event of Default is no longer continuing, the Applicable Reference Rate Margin shall be at the margin in the row styled “Level I”: 
  

					
	 Level
	 	 Applicable Margin
 Leverage Ratio
	 	 Applicable Reference
 Rate Margin

	 I
	 	Greater than or equal to 4.50:1.00	 	3.50%
			
	 II
	 	Less than 4:50:1.00 but greater than or equal to 3.50:1.00	 	3.00%
			
	 III
	 	Less than 3.50:1.00 but greater than or equal to 3.00:1.00	 	2.50%
			
	 IV
	 	Less than 3.00:1.00 but greater than or equal to 2.00:1.00	 	2.00%
			
	 V
	 	Less than 2.00:1.00 but greater than or equal to 1.50:1.00	 	1.50%
			
	 VI
	 	Less than 1.50:1.00	 	1.00%

 Except as set forth in the foregoing proviso, the Applicable Reference Rate Margin
shall be based upon the most recent calculation of the Applicable Margin Leverage Ratio for the Borrower, which will be calculated as of the end of each fiscal quarter. Except as set forth in the initial proviso in this definition, the Applicable
Reference Rate Margin shall be re-determined quarterly on the first day of the fiscal quarter following the date of delivery to Agents of the certified calculation of the Applicable Margin Leverage Ratio pursuant to Section 7.01(a);
provided, however, that if the Borrower fails to provide such certification when such certification is due, the Applicable Reference Rate Margin shall be set at the margin in the row styled “Level I” as of the first day of
the month following the date on which the certification was required to be delivered until the date on which such certification is delivered (on which date (but not retroactively), without constituting a waiver of any Default or Event of Default
occasioned by the failure to timely deliver such certification, the Applicable Reference Rate Margin shall be set at the margin based upon the calculations disclosed by such certification. In the event that the information contained in any financial

  

 4 

 
statement or certificate delivered pursuant to this Agreement is shown to be inaccurate, and such inaccuracy, if corrected, would have led to the application
of a higher Applicable Reference Rate Margin for any period (an “Applicable Reference Rate Period”) than the Applicable Reference Rate Margin actually applied for such Applicable Reference Rate Period, then (i) the Borrower
shall promptly (but in any event within 2 Business Days) deliver to the Agents a correct certificate for such Applicable Reference Rate Period, (ii) the Applicable Reference Rate Margin shall be determined as if the corrected higher Applicable
Reference Rate Margin were applicable for such Applicable Reference Rate Period, and (iii) the Borrower shall promptly (but in any event within 2 Business Days) deliver to the Administrative Agent full payment in respect of the accrued
additional interest on the Obligations as a result of such increased Applicable Reference Rate Margin for such Applicable Reference Rate Period, which payment shall be promptly applied by the Administrative Agent to the affected Obligations.”

 (c) Section 2.04(a) of the Financing Agreement is hereby amended and restated in its entirety as follows: 
 “(a) Revolving Loans. Each Revolving Loan shall bear interest on the principal amount thereof from time to time outstanding,
from the date of the making of such Revolving Loan until the date on which such principal amount is repaid in accordance herewith, as follows: (i) if the relevant Revolving Loan is a LIBOR Rate Loan, at a rate per annum equal to the LIBOR Rate
plus the Applicable LIBOR Rate Margin, and (ii) otherwise, at a rate per annum equal to the Reference Rate plus the Applicable Reference Rate Margin.” 
 (d) Section 7.03(a) of the Financing Agreement is hereby amended by (i) deleting the last proviso contained therein, and (ii) deleting the following row from the table contained therein:

  

			
	 “March 31, 2007
	  	3.25”

 (e) Section 7.03(b) of the Financing Agreement is hereby amended by
(i) deleting the last proviso contained therein, and (ii) deleting the following row from the table contained therein: 
  

			
	 “March 31, 2007
	  	12.00”

 (f) Section 7.03(c) of the Financing Agreement is hereby amended by replacing
the following row: 
  

				
	 “July 1, 2006 through March 31, 2007:
	  	$	4,100,000”

  

 5 

 with the following: 
  

				
	 “January 1, 2007 through March 31, 2007:
	  	$	0”.

 (g) Section 7.03(e) of the Financing Agreement is hereby amended by deleting the
following row from the table contained therein: 
  

			
	 “July 1, 2006 through March 31, 2007:
	  	0.75”.

 3. Waiver of Designated Events Of Default. 
 (a) The Agents and Lenders hereby waive the Designated Events of Default and enforcement of their rights and remedies against the Borrower arising
from the Designated Events of Default. 
 (b) The waiver set forth in Section 3(a) above shall be effective only for the specific
defaults comprising the Designated Events of Default, and in no event shall such waiver be deemed to be a waiver of enforcement of any of the Agents’ or Lenders’ rights or remedies with respect to any other Defaults or Events of Default
now existing or hereafter arising. Nothing contained in this Amendment nor any communications between any Loan Party and any Agent or any Lender shall be a waiver of any rights or remedies that any Agent or any Lender has or may have against any
Loan Party, except as specifically provided in Section 3(a). Except as specifically provided in Section 3(a), each Agent and each Lender hereby reserves and preserves all of its rights and remedies against the Loan Parties under the
Financing Agreement and the other Loan Documents. Without limiting the generality of the foregoing, the Agents and Lenders hereby specifically and expressly reserve all of their remedies, powers, rights, and privileges under the Financing Agreement
and the other Loan Documents, at law (including under the Code), in equity, or otherwise including, without limitation, the right to declare all Obligations immediately due and payable pursuant to Section 9.01 of the Financing Agreement
with respect to any Default or Event of Default now existing or hereafter arising from the judgment entered against the Borrower and Progressive Games, Inc. on February 21, 2007 in the case captioned Derek Webb et al. v. Mikohn Gaming
Corporation and Progressive Games, Inc., case no. 02-CV-1838 WS (S.D. MS) (the “Webb Judgment”) or matters related thereto. Please be advised that the Agents and Lenders do not have any obligation to forbear from enforcing their
rights and remedies with respect to any Default or Event of Default now existing or hereafter arising from the Webb Judgment or matters related thereto. Any waiver or forbearance must be in writing and agreed to by the Agents and Lenders.

 4. Conditions Precedent to Amendment. The satisfaction of each of the following shall constitute conditions precedent to the
effectiveness of this Amendment and each and every provision hereof: 
 (a) The Collateral Agent shall have received this Amendment,
duly executed by the parties hereto, and the same shall be in full force and effect. 
  

 6 

 (b) The Collateral Agent shall have received the reaffirmation and consent of each Guarantor
attached hereto as Exhibit A, duly executed and delivered by each Guarantor; 
 (c) After giving effect to this Amendment, the
representations and warranties herein and in the Financing Agreement and the other Loan Documents shall be true and correct in all material respects on and as of the date hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date). 
 (d) After giving effect to this Amendment, no Default or Event of
Default shall have occurred and be continuing on the date hereof, nor shall result from the consummation of the transactions contemplated herein. 
 (e) No injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the consummation of the transactions contemplated herein shall have been issued and remain in force by any Governmental
Authority against the Borrower, any Agent, or any Lender. 
 (f) The Collateral Agent shall have received an amendment and waiver fee
in the amount of $225,000, which amendment and waiver fee shall be fully earned, non-refundable and due and payable on the date hereof. 
 (g) The Borrower shall pay concurrently with the closing of the transactions evidenced by this Amendment, all fees, costs, expenses and taxes then payable pursuant to Sections 2.06 or 12.04 of the Financing Agreement.

 5. Condition Subsequent to Amendment. The satisfaction of each of the following shall constitute conditions subsequent to the
effectiveness of this Amendment and each and every provision hereof (it being understood that the failure to so perform any of such conditions subsequent shall constitute an immediate Event of Default): 
 (a) On or before March 31, 2007, the Borrower shall deliver to the Collateral Agent or a custodian appointed by the Collateral Agent, the
original stock certificates representing all of the Capital Stock of the Gaming Subsidiaries, accompanied by undated stock powers executed in blank. 
 (b) On or before March 31, 2007, the Borrower shall deliver to the Collateral Agent or a custodian appointed by the Collateral Agent, the original stock certificates representing (i) 65% of the Capital
Stock of Mikohn Australasia, and (ii) 65% of the Capital Stock of the UK Guarantor, in each case accompanied by undated stock powers executed in blank. 
 6. Representations and Warranties. The Borrower represents and warrants to the Agents and Lenders that (a) the execution, delivery, and performance of this Amendment and of the Financing Agreement, as
amended hereby, (i) are within its powers, (ii) have been duly authorized by all necessary action, and (iii) are not in contravention of any law applicable to it or of the terms of its Governing Documents, or of any contract or
undertaking to which it is a party 

  

 7 

 
or by which any of its properties may be bound or affected; (b) this Amendment and the Financing Agreement, as amended hereby, are legal, valid and
binding obligations of the Borrower, enforceable against the Borrower in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws; (c) after giving
effect to this Amendment, no Default or Event of Default has occurred and is continuing on the date hereof or as of the date upon which the conditions precedent set forth herein are satisfied; and (d) the Borrower is not in violation of its
organizational documents or any law, rule, regulation, judgment or order of any Governmental Authority applicable to it or any of its property or assets, or any material term of any agreement or instrument (including, without limitation, any
Material Contract) binding on or otherwise affecting it or any of its properties, except where such violation could not reasonably be expected to have a Material Adverse Effect. 
 7. Advice of Counsel. The Borrower has had advice of independent counsel of its own choosing in negotiations for and the preparation of this
Amendment, has read this Amendment in full and final form, and has had this Amendment fully explained to it to its satisfaction. 
 8.
[Intentionally Omitted]. 
 9. Release by the Loan Parties. Effective on the date hereof, each Loan Party hereby waives, releases,
remises and forever discharges each Agent and each Lender, each of their respective Affiliates and Related Funds, and each of the officers, directors, employees, and agents of each Lender, each Agent and their respective Affiliates and Related Funds
(collectively, the “Releasees”), from any and all claims, suits, investigations, proceedings, demands, obligations, liabilities, causes of action, damages, losses, costs and expenses, whether based in contract, tort, implied or
express warranty, strict liability, criminal or civil statute or common law of any kind or character, known or unknown, past or present, liquidated or unliquidated, suspected or unsuspected, which each Loan Party ever had from the beginning of the
world through the date of this Amendment, or now has against any such Releasee which relates, directly or indirectly to the Financing Agreement, any other Loan Document, or to any acts or omissions of any such Releasee, except for the duties and
obligations set forth in this Amendment. As to each and every claim released hereunder, each Loan Party hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised,
specifically waives the benefit of the provisions of Section 1542 of the Civil Code of California which provides as follows: 
 “A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” 
 As to each and every claim released hereunder, each Loan Party also waives the benefit of each other similar provision of applicable federal or state law (including
without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto. 
  

 8 

 10. Choice of Law. The validity of this Amendment, its construction, interpretation and
enforcement, the rights of the parties hereunder, shall be determined under, governed by, and construed in accordance with the laws of the State of New York. 
 11. Counterpart Execution. This Amendment may be executed in any number of counterparts, all of which when taken together shall constitute one and the same instrument, and any of the parties hereto may execute
this Amendment by signing any such counterpart. Delivery of an executed counterpart of this Amendment by telefacsimile or electronic mail shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party
delivering an executed counterpart of this Amendment by telefacsimile or electronic mail also shall deliver an original executed counterpart of this Amendment, but the failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Amendment. 
 12. Effect on Loan Documents. 
 (a) The Financing Agreement, as amended hereby, and each of the other Loan Documents shall be and remain in full force and effect in accordance with
their respective terms and hereby are ratified and confirmed in all respects. The execution, delivery, and performance of this Amendment shall not operate, except as expressly set forth herein, as a modification or waiver of any right, power, or
remedy of any Agent or any Lender under the Financing Agreement or any other Loan Document. The modifications herein are limited to the specifics hereof (including facts or occurrences on which the same are based), shall not apply with respect to
any facts or occurrences other than those on which the same are based, shall not excuse any non-compliance with the Loan Documents, and shall not operate as a consent to any matter under the Loan Documents. 
 (b) To the extent that any such Loan Document purports to assign or pledge to the Collateral Agent or to grant to the Collateral Agent a security
interest in or lien on, any collateral as security for the Obligations from time to time existing in respect of the Financing Agreement immediately prior to the date hereof, such pledge or assignment or grant of the security interest or lien is
hereby ratified and confirmed in all respects. 
 (c) Upon and after the effectiveness of this Amendment, each reference in the
Financing Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like import referring to the Financing Agreement, and each reference in the other Loan Documents to “the Financing
Agreement”, “thereunder”, “therein”, “thereof” or words of like import referring to the Financing Agreement, shall mean and be a reference to the Financing Agreement as modified and amended hereby. 
 (d) To the extent that any terms and conditions in any of the Loan Documents shall contradict or be in conflict with any terms or conditions of the
Financing Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Financing Agreement as modified or amended hereby. 
 (e) This Amendment is a Loan Document. 
  

 9 

 13. Entire Agreement. This Amendment embodies the entire understanding and agreement between the
parties hereto with respect to the subject matter hereof and supersedes any and all prior or contemporaneous agreements or understandings with respect to the subject matter hereof, whether express or implied, oral or written. 
 [signature page follows] 
  

 10 

 IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above written.

  

			
	PROGRESSIVE GAMING INTERNATIONAL CORPORATION, a Nevada corporation
		
	By:	 	 /s/ Heather A. Rollo

	Name:	 	Heather A. Rollo
	Title:	 	EVP, CFO and Treasurer
	
	 ABLECO FINANCE LLC,
 a Delaware
limited liability company, as the Administrative Agent, the Collateral Agent, and on behalf of itself and its affiliate assigns, as Lenders

		
	By:	 	 /s/ Daniel Wolf

	Name:	 	Daniel Wolf
	Title:	 	Senior Vice President

 Exhibit A 
 REAFFIRMATION AND CONSENT 
 All capitalized terms used herein but not otherwise defined herein shall
have the meanings ascribed to them in that certain Amended and Restated Financing Agreement, dated as of August 4, 2006, by and among PROGRESSIVE GAMING INTERNATIONAL CORPORATION, a Nevada corporation
(the “Borrower”), each subsidiary of the Borrower listed as a “Guarantor” on the signature pages thereto (each a “Guarantor” and collectively, jointly and severally, the
“Guarantors”), the lenders from time to time party thereto (each a “Lender” and collectively, the “Lenders”), ABLECO FINANCE LLC, a Delaware limited liability company
(“Ableco”), as collateral agent for the Lenders (in such capacity, together with any successor collateral agent, the “Collateral Agent”), and Ableco, as administrative agent for the Lenders (in such capacity,
together with any successor administrative agent, the “Administrative Agent” and together with the Collateral Agent, each an “Agent” and collectively, the “Agents”) or in Amendment Number One to
Financing Agreement and Waiver, dated as of March 20, 2007 (the “Amendment”) among the Borrower, the Lenders, and the Agents. The undersigned each hereby (a) represents and warrants to the Agents and the Lenders that the
execution, delivery, and performance of this Reaffirmation and Consent are within its powers, have been duly authorized by all necessary action, and are not in contravention of any law, rule, or regulation, or any order, judgment, decree, writ,
injunction, or award of any arbitrator, court, or governmental authority, or of the terms of its charter or bylaws, or of any contract or undertaking to which it is a party or by which any of its properties may be bound or affected;
(b) consents to the amendment of the Financing Agreement as set forth in the Amendment and any waivers granted therein, including, without limitation, the release granted in Section 9 thereof; (c) acknowledges and reaffirms its
obligations owing to the Agents and the Lenders under any Loan Documents to which it is a party; and (d) agrees that each of the Loan Documents to which it is a party is and shall remain in full force and effect. Although the undersigned each
has been informed of the matters set forth herein and has acknowledged and agreed to same, they each understand that neither any Agent nor any Lender has any obligations to inform it of such matters in the future or to seek its acknowledgment or
agreement to future amendments, and nothing herein shall create such a duty. Delivery of an executed counterpart of this Reaffirmation and Consent by telefacsimile shall be equally as effective as delivery of an original executed counterpart of this
Reaffirmation and Consent. Any party delivering an executed counterpart of this Reaffirmation and Consent by telefacsimile also shall deliver an original executed counterpart of this Reaffirmation and Consent but the failure to deliver an original
executed counterpart shall not affect the validity, enforceability, and binding effect of this Reaffirmation and Consent. This Reaffirmation and Consent shall be governed by the laws of the State of New York. 

 IN WITNESS WHEREOF, the undersigned have each caused this Reaffirmation and Consent to be executed as of
the date of the Amendment. 
  

			
	MIKOHN NEVADA, a Nevada corporation
		
	By:	 	 /s/ Heather A. Rollo

	Name:	 	Heather A. Rollo
	Title:	 	Treasurer
	
	MGC, INC., a Nevada corporation
		
	By:	 	 /s/ Heather A. Rollo

	Name:	 	Heather A. Rollo
	Title:	 	Treasurer
	
	MIKOHN INTERNATIONAL, INC., a Nevada corporation
		
	By:	 	 /s/ Heather A. Rollo

	Name:	 	Heather A. Rollo
	Title:	 	Treasurer
	
	PROGRESSIVE GAMES, INC., a Delaware corporation
		
	By:	 	 /s/ Heather A. Rollo

	Name:	 	Heather A. Rollo
	Title:	 	Treasurer
	
	VIKING MERGER SUBSIDIARY, LLC, a Delaware limited liability company
		
	By:	 	 /s/ Heather A. Rollo

	Name:	 	Heather A. Rollo
	Title:	 	Treasurer
	
	PRIMELINE GAMING TECHNOLOGIES, INC., a California corporation
		
	By:	 	 /s/ Heather A. Rollo

	Name:	 	Heather A. Rollo
	Title:	 	Treasurer

			
	GAMES OF NEVADA, INC., a Nevada corporation
		
	By:	 	 /s/ Heather A. Rollo

	Name:	 	Heather A. Rollo
	Title:	 	TreasurerTransition Agreement with John R. Tuttle, dated February 1, 2007

 Exhibit 10.1 
 February 1, 2007 
 John R. Tuttle 
 2 Lakeridge
Road 
 Mechanicville, NY 12118 
 Dear Dr. Tuttle:

 DayStar Technologies, Inc. (“DayStar” or the “Company”) believes that it is our mutual best interest to have an
agreement covering the terms of your separation from employment. This letter describes our agreement (the “Agreement”), which is as follows: 
 1. You resign from your employment with DayStar effective January 22, 2007. 
 2. If you sign and do not
timely revoke this Agreement, agreeing to be bound by the general release in paragraph 4 below and the other terms and conditions of this Agreement described below, and comply with your obligations under this Agreement and your Employment
Agreement dated April 1, 2006 (attached hereto as Exhibit “A”) the Company will do the following: 
 (a) You shall receive an
Incentive Payment for 2006 in the amount of $45,000, instead of under paragraph 3(b), which shall be paid at or about the time as payments are made to other eligible employees; 
 (b) You shall receive the payments, benefits, and vesting of unvested warrants, options or restricted stock pursuant to the terms of Subsection
3.09(c)(i) and (ii) of the Employment Agreement. It is agreed and understood that the Regular Severance Package described in Subsection 3.09(c)(i) shall total $265,000, which is the aggregate of (x) your annual Base Salary in the amount of
$220,000 and (y) your Incentive Payment for 2006, which shall be $45,000; 
 (c) You will be allowed to retain possession of your laptop
computer after you have surrendered it to DayStar’s IT Department for removal of Company related material or wireless access to Company related material; and 
 (d) You shall receive the payment of $10,000 towards your legal fees in connection with your negotiations with the Company, within 10 business days after the expiration of the revocation period described in paragraph
17 of this Agreement. 
 3. Regardless of whether or not you enter into this Agreement: 
 (a) You shall receive any unpaid salary earned through January 22, 2007, paid by check on February 1, 2007; 
  

 (b) You shall receive an Incentive Payment for 2006, calculated and paid in the ordinary course of
business (but not withstanding the statement in paragraph 3 above, this will only be paid if you do not enter into this Agreement). 
 (c)
Your vacation time balance, consisting of 168.42 hours of unused vacation time, will be paid out on or before February 14, 2007; 
 (d)
You shall receive $18,333 as pay in lieu of notice of termination, on or before February 14, 2007; and 
 (e) Your Automobile Allowances
as described in your Employment Agreement will expire on February 1, 2007. 
 4. (a) In exchange for the consideration described in
paragraph 2, if you comply with the terms and conditions of paragraph 2 above, you release and forever discharge, to the maximum extent permitted by law, the Company and each of the other “Releasees” as defined below, from any and all
claims, causes of action, complaints, lawsuits or liabilities of any kind arising out of or relating to any conduct, matter, event or omission existing or occurring before you sign this Agreement, arising in any way out of your employment or the
cessation of your employment with the Company and/or any of its parent, subsidiary, related and/or affiliated companies (collectively “Claims”) which you, your heirs, agents, administrators or executors have or may have against the Company
or any of the other Releasees, including but not limited to: 
 (i) any Claims for unpaid or withheld wages, severance, benefits, bonuses,
commissions and/or other compensation of any kind; 
 (ii) any Claims for reimbursement of expenses of any kind; 
 (iii) any Claims for attorneys’ fees or costs; 
 (iv) any Claims under the Employee Retirement Income Security Act (“ERISA”); 
 (v) any Claims
of discrimination and/or harassment based on age, sex, race, religion, color, creed, disability, handicap, citizenship, national origin, ancestry, sexual orientation, or any other factor protected by Federal, State or Local law as enacted or amended
(such as the Age Discrimination in Employment Act, 29 U.S.C. §621 et. seq., Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Equal Pay Act and the Pennsylvania Human Relations Act) and any Claims for
retaliation under any of the foregoing laws; 
 (vi) any Claims regarding leaves of absence; 
 (vii) any Claims under the National Labor Relations Act; 
 (viii) any Claims under the Sarbanes-Oxley Act; 
  

 (ix) any Claims under your Employment Agreement or any prior agreement with the Company; 
 (x) any Claims for violation of public policy; 
 (xi) any whistleblower or retaliation Claims; 
 (xii) any Claims for emotional distress or pain and suffering; and/or 

(xiii) any other statutory, regulatory, common law or other Claims of any kind having anything to do with your employment or the cessation of your
employment, including, but not limited to, Claims for breach of contract, libel, slander, fraud, wrongful discharge, promissory estoppel, equitable estoppel and misrepresentation. 
 (b) The term “Releasees” includes: the Company and any parent, subsidiary, related or affiliated companies of the Company, and each of their
past and present employees, officers, directors, attorneys, members, partners, insurers, benefit plan fiduciaries and agents, and all of their respective successors and assigns. 
 (c) It is important that you understand that subject to paragraph 5, this general release applies to all Claims known or unknown by you, those that you
may have already asserted or raised as well as those that you have never asserted or raised, arising in any way out of your employment or the cessation of your employment. 
 5. The general release in Paragraph 3 above does not apply to: 
 (a) Any Claims for vested benefits under any Company 401(k), retirement, or other deferred compensation plan; 
 (b) Any Claims to require the Company to honor its commitments set forth in this Agreement; 
 (c) Any Claims to interpret or to
determine the scope, meaning or effect of this Agreement; 
 (d) Any Claims arising out of any conduct, matter, event or omission existing or
occurring after you have signed this Agreement; 
 (e) Any Claims for indemnification and/or defense by the Company under the Company’s
by-laws or applicable law, or for coverage, if any, under the Company’s applicable Director’s and Officer’s insurance policy or any other general liability insurance policy, if any, or under Section 6.10 of the Employment
Agreement, which Section shall be deemed to survive this Agreement; and 
 (f) Any Claims not arising in any way out of your employment or
your cessation of employment. 
  

 Further, your rights to compel arbitration under Article V of the Employment Agreement shall not be
deemed to be released Claims; nor shall they otherwise be deemed waived by you or the Company by reason of this Agreement. Rather, Article V shall be deemed to survive this Agreement and any dispute concerning the interpretation or application of
this Agreement or its subject matter shall be deemed to concern the subject matter of the Employment Agreement. 
 Finally, the general
release does not prevent you from contacting or filing a charge with any federal, state or local government agency or commission. However, the general release does prevent you, to the maximum extent permitted by law, from obtaining any monetary or
other personal relief for any of the Claims you have released in Paragraph 4. 
 6. You acknowledge and agree that the Company’s
obligations under Paragraph 2 above: 
 (a) Constitute adequate consideration to support your general release in Paragraph 4 above; and

 (b) Fully compensate you for the Claims you are releasing. 
 7. You agree that the terms and amount of this agreement (“Confidential Information”) shall be held strictly confidential by you and your agents; provided, however, that you may share the Confidential
Information with your attorneys, tax advisors, accountants, and immediate family, so long as they agree to keep the information confidential unless required to disclose it by law. Nothing herein shall be deemed to prevent you from stating, if asked,
that you are “satisfied that the Company has honored its Employment Agreement with you in connection with the termination of your employment.” 
 8. For a period of two (2) years from the effective date of this Agreement you agree not to disparage DayStar, including but not limited to its management, officers, Board of Directors, employees, agents,
products or services. However, this provision shall not be construed to apply to your statements to any Board members at Board meetings, or Board of Directors Committee meetings, so long as only Board members are present. This provision shall also
not be construed to prohibit you from being truthful (as DayStar expects you will be) in any dealings you may have with any governmental agencies and in any legal proceedings. 
 9. You agree to direct any prospective employers to contact DayStar’s HR Coordinator, currently Kelley McCart, (or the person then holding that or
any then existing equivalent position) for employment verification. DayStar agrees, consistent with its policy, to limit its response to confirmation of position held, the dates of your employment, and your salary at the time of your resignation.

 10. You agree to reasonably cooperate with the Company with respect to the handling of any claims or litigation against the Company.

 11. You and DayStar agree that neither this letter nor the furnishing of the consideration hereunder shall be deemed or construed at any
time for any purpose as an admission by DayStar or by you of any liability or unlawful conduct of any kind nor as indicating whether or not your resignation is for Good Reason under the Employment Agreement. 
  

 12. Nothing in this Agreement is intended to violate any law or shall be interpreted to violate any law.
If any paragraph or part or subpart of any paragraph in this Agreement or the application thereof is construed to be overbroad and/or unenforceable, then the court making such determination shall have the authority to narrow the paragraph or part or
subpart of the paragraph as necessary to make it enforceable and the paragraph or part or subpart of the paragraph shall then be enforceable in its/their narrowed form. Moreover, each paragraph or part or subpart of each paragraph in this Agreement
is independent of and severable (separate) from each other. In the event that any paragraph or part or subpart of any paragraph in this Agreement is determined to be legally invalid or unenforceable by a court and is not modified by a court to be
enforceable, the affected paragraph or part or subpart of such paragraph shall be stricken from the Agreement, and the remaining paragraphs or parts or subparts of such paragraphs of this Agreement shall remain in full, force and effect. 

13. This Agreement constitutes the entire agreement between the parties and supersedes any and all prior representations, agreements, written or oral,
expressed or implied, except your obligations under the Employment Agreement and Nondisclosure Development or Non-Solicitation Agreement remain in effect and are not superceded by this Agreement. 
 14. You acknowledge and agree that, subsequent to the termination of your employment, you shall not be eligible for any payments from the Company or
Company-paid benefits, except as expressly set forth in this Agreement. You also acknowledge and agree that you have been paid for all time worked and have received all other compensation owed to you, except for any payments owed to you either
pursuant to Paragraph 3 which shall be paid to you regardless of whether you sign this Agreement, or pursuant to Paragraph 2 which shall be paid to you if you comply with the conditions for payment described therein. 
 15. All references to a number of days throughout this Agreement refer to calendar days. 
 16. You agree and represent that: 
 (a) You
have read carefully the terms of this Agreement, including the general release set forth in paragraph 4; 
 (b) You have reviewed this
Agreement, including the general release, with an attorney; 
 (c) You understand the meaning and effect of the terms of this Agreement,
including the general release; 
 (d) You were given twenty-one (21) days to determine whether you wished to sign this Agreement,
including the general release; 
 (e) Your decision to sign this Agreement, including the general release, is of your own free and voluntary
act without compulsion of any kind; 
  

 (f) No promise or inducement not expressed in this Agreement has been made to you; and 
 (g) You have adequate information to make a knowing and voluntary waiver. 
 17. If you sign this Agreement, you will retain the right to revoke it for seven (7) days. If you revoke this Agreement, you are indicating that you have changed your mind and do not want to be legally bound by
this Agreement. The Agreement shall not be effective until after the Revocation Period has expired without your having revoked it. To revoke this Agreement, you must send a certified letter to my attention at the following address: Thomas A.
Polich, Esquire, Chief Legal Officer/Secretary, DayStar Technologies, Inc., 13 Corporate Drive, HalfMoon, NY 12065. The letter must be post-marked within seven (7) days of your execution of this Agreement. If the seventh day is a Sunday or
federal holiday, then the letter must be post-marked on the following business day. If you revoke this Agreement on a timely basis, you shall not be eligible for the payments and other benefits set forth in Paragraph 2. 
 18. Offer Expiration Date. As noted above, you have twenty-one (21) days to decide whether you wish to sign this Agreement. If you do not
sign this Agreement on or before February 23, 2007, then this offer is withdrawn and you will not be eligible for the consideration set forth in Paragraph 2 above. 
 19. In order for this Agreement to become effective, you must sign and return to the Company and its counsel the letter of resignation attached as
Exhibit “B” by February 2, 2007. However, it is understood and agreed that if you do not enter into or timely revoke this Agreement, you will be deemed to have resigned with Good Reason under your Employment Agreement by virtue of the
change in your position, effective January 22, 2007. 
 20. This Agreement will be construed and governed by New York law, without
reference to principles of conflict of laws. 
 * * * 
 We wish you the best in the future. 
  

					
	 ACCEPTED AND AGREED:
	  	DayStar Technologies, Inc.
			
	 /s/ John R. Tuttle
	  	By:	  	 /s/ Stephan DeLuca

	John R. Tuttle	  		  	Stephan DeLuca
			
	Date February 1, 2007	  		  	CEO

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