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EXHIBIT 10.23    
  

 
 

EMPLOYMENT AGREEMENT    

    THIS
EMPLOYMENT AGREEMENT (the "AGREEMENT") is made and entered into as of the 19th day of March, 2001, by and between Christer S. T. Roman (the "EXECUTIVE") and Anchor
Gaming ("ANCHOR" or "EMPLOYER"), a Nevada corporation. 

 
 

BACKGROUND    

    A.  Employer
has served as Sr. Vice President of Product and Business Development of Powerhouse Technologies, Inc., a subsidiary of the Company, pursuant to an
Employment Agreement dated as of June 3, 1998. In that capacity, Employee has gained knowledge of the business and affairs of the Company and its policies, methods, personnel and plans for the
future. 

    B.  The
parties desire to enter into a new employment relationship and to supercede the foregoing Employment Agreement with this new Agreement. 

    NOW
THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, the parties agree as follows: 

    1.  EMPLOYMENT.
Subject to the terms and conditions set forth in this Agreement, Employer will employ Executive, and Executive hereby accepts such employment with
Employer. This Agreement shall supercede all previous employment agreements by and between the Company and the Executive. 

    2.  DUTIES
OF EXECUTIVE. 

    (a) Executive
will serve in the capacity of Chief Operating Officer of the Systems Division of Anchor, and will be subject to supervision by the Chief Executive Officer
("CEO"). In such capacity, Executive will have all necessary powers to discharge his duties and responsibilities, which will include general oversight of the affairs of the subsidiaries of Anchor
which are generally referred to as the "Systems Division" and which, at the time of this Agreement, comprise of the following companies: Automated Wagering International, Inc., VLC, Inc.
and United Tote Company. Executive shall consult as needed with officers, managers, employees and other personnel of Anchor and shall have such other duties as the CEO may reasonably assign,
consistent with duties usually assigned to employees who hold positions similar to that of Executive. 

    (b) During
the term of this Agreement and except as provided below, Executive will perform to the best of his abilities all duties assigned to him hereunder, will
devote substantially all of his primary business time, attention and effort to the affairs of Anchor and will use his reasonable best efforts to promote the interests of Anchor. Notwithstanding the
foregoing or anything else in this Agreement, Executive may engage in reasonable charitable, civic or community activities. 

    (c) Executive
has obtained and possesses, or will obtain and possess, and will maintain throughout the Term of this Agreement, all licenses, approvals, permits, and
authorization (the "LICENSES") necessary to perform Executive's duties hereunder, including without limitation, any licenses required by any agency of any state or county having jurisdiction to
regulate gaming, liquor or the activities undertaken by Employer. Any costs, attorneys' fees, investigations fees or other expenses incurred in connection with obtaining such Licenses will be borne by
Employer. Executive warrants that he is fully eligible, under all standards and requirements, to obtain or possess such licenses and that Executive will commit no acts during the term hereof that
would jeopardize or eliminate his ability to possess or maintain such Licenses. 

    (d) Executive
agrees to submit to drug testing in accordance with the Company policy, and to execute a consent form attached as EXHIBIT A. 

    3.  TERM.
The term of this Agreement (the "TERM") will commence as of March 19, 2001 (the "EFFECTIVE DATE"), and will continue for a period of 4 years
from the Effective Date, at which 

 

time this Agreement expires, unless earlier terminated by either party in accordance with the terms and conditions in this Agreement (the date on which Employee's employment with Employer terminates
is referred to as (the "SEPARATION DATE"). 

    4.  COMPENSATION.

    (a) SALARY.
Commencing on the Effective Date and during the Term of this Agreement, Employer will pay Executive a minimum base salary of Two Hundred
Twenty-Five Thousand Dollars ($225,000), which will be payable in accordance with Employer's standard payroll practice, but in any event, not less frequently than monthly. Such base salary
will not include any other benefits made available to Executive, or any contributions or payments made on his behalf pursuant to any employee benefit plan or program of Employer, including health,
disability or life insurance plans or programs, 401(k) plans, cash bonus plans, stock option plans, retirement plans, severance plans or any similar plans or programs of any nature that may be offered
at any time during the Term of this Agreement. 

    (b) BONUS
COMPENSATION. In addition to the Salary set forth above, Employer will pay Executive an annual bonus in an amount to be determined by, and subject to the sole
discretion of, the Board, up to a maximum of Two Hundred Twenty-Five Thousand Dollars ($225,000), such bonus to be paid at a time and in a manner consistent with payment of such bonuses to
other of Employer's officers and/or executives. 

    (c) EMPLOYEE
BENEFITS. During the term of this Agreement, Employer will provide Executive with all benefits made available from time to time by Employer to employees
and/or officers generally and to employees who hold positions similar to that of Executive (including benefits granted to other officers and/or directors of Employer), as per company policy.
Executive's benefits will include, without limit, participation in any and all Employer-sponsored medical, dental and/or vision plans or programs, which will include coverage for Executive's immediate
family; disability insurance; life insurance payable to Executive's designated beneficiary; participation in any and all Employer-sponsored retirement plans and/or 401(k) plans; and paid vacation. 

    (d) EXPENSES.
During the term of this Agreement, Executive shall be entitled to reimbursement for all reasonable and necessary expenses incurred on behalf of Employer,
in accordance with the general policy of Employer. 

    5.  STOCK
OPTIONS. As additional consideration for the services provided by Executive pursuant to this Agreement, and in addition to any previous grants, Employer will
grant to Executive options to purchase thirty-six thousand, eight hundred (36,800) shares of Employer's Common Stock (the "OPTION GRANT") at an exercise price of fifty dollars and
sixty-two and one-half cents ($50.625), such grant to be governed by the existing Anchor Gaming 1995 Stock Option Plan and the 2000 Stock Incentive Plan. The terms and
conditions of this Option Grant will be set forth in a separate Stock Option Agreement, which is attached as EXHIBIT B. 

    6.  SEVERANCE.

    (a) In
the event that Executive's employment is terminated by Employer for Cause (as defined below), Executive will receive no severance of any kind. 

    (b) In
the event that Executive voluntarily terminates his employment with Employer, he will receive no severance payment of any kind. 

    (c) In
the event that Employer chooses to terminate Executive's employment for other than Cause, Executive will receive a severance payment equal to one year's salary,
as set forth in SECTION 4(a), together with an appropriately prorated bonus, as provided in SECTION 4(b), less any and all applicable withholding. 

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    (d) "CAUSE" means that the Board reasonably finds that any one or more of the following events has occurred: (i) performance by Participant of illegal or
fraudulent acts, criminal conduct, or willful misconduct relating to the activities of the Company, including, without limit, violation by Participant of any material gaming or similar regulatory laws
or regulations, which violation materially and adversely affects the ability of Participant to perform his duties to the Company or may subject the Company to liability; (ii) conviction of, or
nolo contendere plea by Participant to, any criminal acts involving moral turpitude having a material adverse effect upon the Company, including, without limitation, upon its profitability,
reputation, or goodwill; (iii) willful and material disregard of any reasonable directive(s) from the Board that are not inconsistent with the terms of any contract with the Company to which
Participant is party, PROVIDED that the Board will provide Participant with written notice that such event has occurred ("NOTICE OF DISREGARD") and will further allow Participant 30 days in
which to cure such disregard, and PROVIDED FURTHER that the Board will provide an opportunity for Participant to be heard if there is no cure within 30 days of the Notice of Disregard;
(iv) breach of fiduciary duty, PROVIDED that the Board will provide Participant with written notice that such event has occurred ("NOTICE OF BREACH OF FIDUCIARY DUTY") and will further allow
Participant 30 days in which to cure such breach of fiduciary duty, and PROVIDED FURTHER that the Board will allow an opportunity for Participant to be heard if there is no cure within
30 days of the Notice of Breach of Fiduciary Duty; (v) material violation, not cured in a reasonable time after notice from the Company, by Participant of any of the covenants and
agreements contained in any agreement with the Company to which Participant is party; (vi) failure or inability of Participant to obtain or maintain required gaming licenses or approvals. 

    (e) "CHANGE
OF CONTROL" means the occurrence of any of the following events, as a result of one transaction or a series of transactions: (i) any
"person" (as that term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), but excluding the Company, its affiliates, and any qualified or
non-qualified plan maintained by the Company or its affiliates) becomes the "beneficial owner" (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of securities of the Anchor Gaming representing more than 50% of the combined voting power of the Anchor Gaming's then outstanding securities; (ii) individuals who
constitute a majority of the Board of Directors of the Company immediately prior to a contested election for positions on the Board cease to constitute a majority as a result of such contested
election; (iii) Anchor Gaming is combined (by merger, share exchange, consolidation, or otherwise) with another entity and as a result of such combination, less than 50% of the outstanding
securities of the surviving or resulting entity are owned in the aggregate by the former shareholders of Anchor Gaming; (iv) the Company sells, leases, or otherwise transfers all or a majority
of all of its properties, assets or income or revenue generating capacity to another person or entity; (v) a dissolution or liquidation of Anchor Gaming or; (vi) any other transaction or
series of transactions is consummated that results in a required disclosure under Item 1 of Form 8-K or successor form. 

    (f)  TERMINATION
FOLLOWING CHANGE OF CONTROL. In the event that Executive is for any reason terminated or subjected to Constructive Termination (as defined below),
following a Change in Control, Executive will receive a severance payment equal to one year's salary, as set forth in SECTION 4(a), together with an appropriately prorated bonus, as provided in
SECTION 4(b), less any and all applicable withholding. A "CONSTRUCTIVE TERMINATION", for purposes of this Agreement, is defined as: (i) a significant reduction in the duties or responsibilities
of Executive from those set forth in this Agreement; (ii) a change in job title of Executive that reflects a reduction in duties, responsibilities and/or stature; (iii) a change or
reduction in Executive's total remuneration (including salary, bonus, qualified retirement benefits, welfare benefits, stock option benefits and any other employee benefits) from that provided in this
Agreement; (iv) a change in Executive's direct reporting relationship such that Executive is no 

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longer reporting directly to the CEO; or (v) a change by Employer in the location of Executive's principal place of employment, which moves the principal place of business more than 35 miles
from the location specified in this Agreement. 

    7.  PAYMENTS
UPON TERMINATION; TAX TREATMENT. In the event that the total compensation paid to Executive as severance in the event of a Change in Control, taking into
account all cash severance payments, shares of stock, accelerated vesting of stock options, and bonuses, if any (such payments referred to, for purposes of this Section 8, as the "Severance
Payment"), is found to constitute "an excess parachute payment" within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the "CODE), then Employer will pay to
Executive, in addition to the compensation paid as Severance Payment, an additional amount (the "ADDITIONAL AMOUNT") which, after reduction for income taxes and excise taxes on the additional amount,
is sufficient to provide for the payment of any excise tax that may be due by Executive on the Severance Payment. 

    8.  CONFIDENTIAL
INFORMATION. 

    (a) DEFINITION
OF "CONFIDENTIAL INFORMATION." As used herein, the term "CONFIDENTIAL INFORMATION" means information of any kind, nature and description disclosed to,
discovered by or otherwise known by Employee as a direct or indirect consequence of or through
Executive's employment with Employer that is not generally known within the industry or industries in which Employer is or may become engaged, about Employer's business, merchandise, client base,
marketing procedures, processes and services, including but not limited to, information relating to research, marketing, development, inventions, product lines, design, purchasing, finances and
financial affairs, accounting, merchandising, selling, engineering, employees, trade secrets, business practices, methods, acquisitions, potential acquisitions, customer lists, customer contact lists,
vendor lists, pricing agreements, merchandise resources, supply resources, service resources, system designs, procedures manuals, the prices it obtains or has obtained or at which it sells or has sold
its services or products, or the name of its personnel and reports. 

    (b) NONDISCLOSURE.
In order to perform his duties hereunder, Executive will require access to trade secrets and proprietary information of Employer, and Employer agrees
to make such trade secrets and Confidential Information available to Executive as necessary. Executive acknowledges that, in the course of his employment with Employer pursuant to this Agreement, he
will become familiar with trade secrets and customer lists of, and other confidential information concerning, Employer; that he will receive extraordinary and specialized training in the operation of
Employer's products and/or the nature of Employer's services; that he will represent Employer and develop contacts and relationships with other persons and entities, including but not limited to
customers, potential customers and employees of such entities; and that his services will be of special, unique and extraordinary value to Employer. Executive expressly covenants and agrees that he
will not, during the term of employment with Employer hereunder or at any time following the termination thereof, without regard to the party terminating this Agreement or the reason for termination,
if any, directly or indirectly, reveal, divulge, disclose or communicate to any Person ("Person" includes, but is not limited to, any individual, corporation, institution, limited liability company,
partnership, joint venture, association, joint-stock company, trust, unincorporated organization, proprietorship or government or any agency or political subdivision thereof), other than authorized
officers, directors, and employees of Employer, in any manner whatsoever, any Confidential Information of Employer without the prior written consent of a duly authorized officer of Employer or member
of the Board. 

    (c) RETURN
OF CONFIDENTIAL INFORMATION AND OTHER PROPERTY. Upon termination of Executive's employment with Employer, Executive will surrender to Employer all
Confidential Information including, without limitation, all samples, articles of manufacture, lists, 

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charts, schedules, reports, financial statements, books, and records, and all copies thereof, of Employer and all other property belonging to Employer whatsoever. 

    9.  COVENANT
NOT TO COMPETE: 

    (a) CONSIDERATION
FOR COVENANT. As consideration for his continued employment with Employer and the grant of access by Employer to Confidential Information, as provided
in SECTION 8 of this Agreement, Executive will use this information, training and good will solely for the benefit of
Employer, and further agrees to the Covenants set forth in this SECTION 9. Executive agrees and acknowledges that the covenants set forth in this SECTION 9 are ancillary to the agreements regarding
Confidential Information contained in SECTION 8 of this Agreement, and that these covenants set forth in this SECTION 9 are reasonably necessary to protect Employer's interests in the Confidential
Information to which Executive is given access hereunder. 

    (b) NON-COMPETITION.
During the term of this Agreement and for a period of one (1) year thereafter (the "NONCOMPETITION PERIOD"), Executive will not,
in the United States or in any foreign country in which Employer is then selling, marketing, providing or soliciting to sell, market or provide its products or services, directly or indirectly engage
in, own or control an interest in (except as to those investments held at the effective date of this agreement or as a passive investor in publicly held companies, i.e., Executive and Executive's
relatives do not own of record, or beneficially, an aggregate of more than two percent (2%) of any class of outstanding securities) or act as an officer, director, or employee of, or consultant or
adviser to, any firm, corporation, institution or entity, directly or indirectly in competition with or engaged in a business substantially similar to that of Employer, including the development,
manufacture, sale or marketing of products, services, devices, instruments, methods or techniques (or any related services or activities) similar to any products, services, devices, instruments,
methods or techniques which Employer is engaged in the development of, manufacture, selling, or marketing, or has under consideration to do the same (whether or not such products, devices,
instruments, methods or techniques or the technology related thereto were obtained from Executive), during the term of the Executive's employment. 

    (c) NON-SOLICITATION.
Executive further agrees that during the Noncompetition Period he will not: (i) in any manner, directly or indirectly,
terminate or abandon his or her employment for any purpose whatsoever, or: (ii) in connection with any business to which SECTION 9(b) applies, call on, solicit, promote, merchandise, provide
products or services to, or otherwise do business with any customer of Employer whom Executive has solicited or otherwise dealt with during the one-year period prior to the Separation
Date; provided that, such products or services are in competition with, or similar to, products or service offered by Employer. 

    (d) CONSENT
TO MODIFICATION. If, at any time, a court of competent jurisdiction or an arbitrator holds that the restrictions stated in this SECTION 9 are overly broad
under then-existing circumstances, the parties agree that the maximum period, scope or geographical area reasonable under such circumstances will be substituted for the stated period,
scope or area, and that the court or arbitrator will be allowed to revise the restrictions contained herein to cover the maximum period, scope and area permitted by law. 

    10. ENFORCEMENT
OF COVENANTS. Executive has carefully read and considered the provisions of SECTIONS 8 and 9 of this Agreement, and Executive agrees that the
restrictions contained therein (including, but not limited to, the time period and geographic restriction) are fair and reasonable and that these provisions are reasonably required for protection of
Employer's interests. Executive further agrees that a violation by Executive of any of the covenants contained in SECTIONS 8 and 9 hereof will cause damage to Employer that will be significant,
material and difficult or impossible to adequately measure, and that in the event of such a breach, notwithstanding any language or provision in SECTION 11, Employer will be entitled to seek and
obtain injunctive relief. Executive 

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expressly acknowledges and agrees that the respective covenants and agreements will be construed in such a manner as to be enforceable under applicable laws if a more limited scope is determined by a
court of competent jurisdiction to be required. 

    11. NEGOTIATION,
MEDIATION AND ARBITRATION. 

    (a) SUBJECT
CLAIMS. The matters, claims, rights, and obligations subject to these arbitration provisions include all rights, claims and obligations arising out of or
relating to this Agreement or to Executive's employment and/or its termination, including, without limitation, any and all claims, rights or causes of action which may ever arise or be asserted under
any federal, state, local or foreign statutory, regulatory or common law, and including, without limitation, claims of discrimination on the basis of any protected status (including, without limit,
age, race, gender, religion and/or disability), wrongful discharge or termination, breach of contract, tort (such as intentional infliction of emotional distress, libel, slander, wrongful invasion of
privacy or personal injury), workers compensation or unemployment compensation. All of the foregoing types of matters, claims, rights and obligations subject to these arbitration provisions are herein
called "SUBJECT CLAIMS." The parties agree and acknowledge that an action by Employer to enforce any of the covenants set forth in SECTIONS 8, 9 and/or 10 of this Agreement will not be a Subject Claim
covered by this SECTION 11. 

    (b) NEGOTIATION.
The parties will attempt in good faith to resolve promptly any controversy regarding a Subject Claim by negotiations between or among the parties. If
any party reaches the conclusion that the controversy or dispute cannot be resolved by unassisted negotiations, such party may notify the American Arbitration Association ("AAA"), 140 West 51st
Street, New York, New York 10020 [telephone (212) 484-3266; fax (212) 307-4387], AAA will promptly designate a mediator who is independent
and impartial, and AAA's decision about the identity of the mediator will be final and binding. The parties agree to conduct at least eight (8) consecutive hours of mediated negotiations in Las
Vegas, Nevada, or other mutually convenient location to which the parties agree, within thirty (30) days after the notice is sent. 

    (c) INITIATION
OF BINDING ARBITRATION. If any controversy or dispute regarding a Subject Claim is not resolved by negotiation or mediation within thirty
(30) days after the first notice to AAA is sent, then, upon notice by any party to the other affected parties and to AAA ("ARBITRATION NOTICE"), said controversy or dispute will be submitted to
a sole arbitrator who is independent and impartial, selected by AAA, for binding arbitration in Las Vegas, Nevada, or any other mutually convenient location to which the parties agree, in accordance
with AAA's Commercial Arbitration Rules. The arbitration will be governed by the United States Arbitration Act, 9 U.S.C. Sections 1-16 (or by the same principles enunciated by such Act in
the event it may not be technically applicable). 

    (d) SELECTION
OF ARBITRATOR. Promptly after the Arbitration Notice is given, AAA will select five possible arbitrators, to whom AAA will give the identities of the
parties and the general nature of
the controversy. If any of those arbitrators disqualifies himself or declines to serve, AAA will continue to designate additional potential arbitrators until the parties have five to select from.
After the panel of five potential arbitrators has been completed, a two page summary of the background of each of the potential arbitrators will be given to each of the parties, and the parties will
have a period of 10 days after receiving the summaries in which to attempt to agree upon the arbitrator to conduct the arbitration. If the parties are unable to agree upon an arbitrator, then
one of the parties will notify AAA and the other party, and AAA will notify each party that it has five days from the AAA notice to strike two names from the list and advise AAA of the two names
stricken. After expiration of the strike period, if all but one candidate has been stricken, the remaining one will be the arbitrator, but, if two or more have not been stricken, AAA 

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will select the arbitrator from one of those not stricken. The decision of AAA with respect to the selection of the arbitrator will be final and binding in such case. 

    (e) ARBITRATION
HEARING. Within 20 days after the selection of the arbitrator, the parties and their counsel will appear before the arbitrator at a place and
time designated by the arbitrator for the purpose of each party making a one hour or less presentation and summary of the case. Thereafter, the arbitrator will set dates and times for additional
hearings in accordance with the Rules until the proceeding is concluded. The desire and goal of the parties is, and the arbitrator will be advised that his goal should be, to conduct and conclude the
arbitration proceeding as expeditiously as possible. If any party or his counsel fails to appear at any hearing, the arbitrator will be entitled to reach a decision based on the evidence that has been
presented to him by the parties who did appear. 

    (f)  NO
LITIGATION, DAMAGES LIMITATION. The parties agree that they will faithfully observe this Agreement and will abide by and perform any award rendered by the
arbitrator. The award or judgment of the arbitrator will be final and binding on all parties, and judgment upon the award or judgment of the arbitrator may be entered and enforced by any court having
jurisdiction. Unless and only to the extent mandatory arbitration is validly prohibited or limited by applicable statute or regulation, no litigation or other proceeding may ever be instituted at any
time in any court or before any administrative agency or body for the purpose of adjudicating, interpreting or enforcing any of the rights, duties, liabilities or obligations of the parties hereto or
any rights, duties, liabilities or obligations relating to any Subject Claim, whether or not covered by the express terms of this Agreement, or for the purpose of adjudicating a breach or
determination of the validity of this Agreement, or for the purpose of appealing any decision of an arbitrator, except a proceeding instituted (i) for the purpose of having the award or
judgment of an arbitrator entered and enforced or (ii) to seek an injunction or restraining order (but not damages in connection therewith) in circumstances where such relief is available.
Unless and only to the extent a limitation of damages is validly prohibited or limited by applicable statute or regulation, no punitive, exemplary or consequential damages may ever be awarded by the
arbitrator or anyone else, and each of the parties hereby waives any and all rights to make, claim or recover any such damages. 

    (g) BANKRUPTCY.
If any party becomes the subject of a bankruptcy, receivership or other similar proceeding under the laws of the United States of America, any state or
commonwealth or any other
nation or political subdivision thereof, then, to the extent permitted or not prohibited by applicable law, any factual or substantive legal issues arising in or during the pendency of any such
proceeding will be subject to all of the foregoing mandatory mediation and arbitration provisions and will be resolved in accordance therewith. The Agreements contained herein have been given for
valuable consideration, are coupled with an interest and are not intended to be executory contracts. The fees and expenses of the arbitrator will be shared equitably (as determined by the arbitrator)
by all parties engaged in the dispute or controversy. 

    12. DEATH
OR DISABILITY. In the event that Executive dies or becomes unable, by virtue of any physical or mental impairment, to perform the essential functions of his
position, with or without reasonable accommodation, for a period of 90 consecutive days or more ("Disability"), Employer will pay to Executive, or to his estate, heirs and/or assigns, as appropriate,
all salary owed to Executive by Employer pursuant to Section 4 of this Agreement; any bonus owed to Executive as of the date of said death or Disability, pursuant to Section 4 of this
Agreement; and a severance payment equal to six times Executive's monthly salary. 

    13. NOTICE
PROVISION. Any notice, demand or request required or permitted to be given or made under this Agreement will be in writing and will be deemed given or made
when delivered in 

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person, when sent by United States registered or certified mail, or postage prepaid, or when telecopied to a party at its address or telecopy number specified below: 

If
to Employer: 

Anchor
Gaming

815 Pilot Road, Suite G

Las Vegas, NV 89119

Telecopy number: (702) 896-6992 

If
to Executive:

Christer
S. T. Roman

c/o Anchor Gaming

815 Pilot Road, Suite G

Las Vegas, NV 89119

Telecopy number: (702) 616-4259 

The
parties to this Agreement may change their addresses for notice by notifying the other parties in the manner provided in this SECTION 13. 

    14. HEADINGS
NON-BINDING. All section titles and captions in this Agreement are for convenience only, will not be deemed part of this Agreement, and in no
way will define, limit, extend or describe the scope or intent of any provisions hereof. 

    15. WORDS
TO HAVE CONTEXTUAL MEANING. Whenever the context may require, any pronoun used in this Agreement will include the corresponding masculine, feminine or neuter
forms, and the singular form of nouns, pronouns and verbs will include the plural and vice versa. Additionally, the words "and" and "or" will be given their contextual meaning and not be interpreted
as being solely conjunctive or disjunctive, as the case may be. 

    16. EXECUTION
OF AGREEMENT. The parties will execute all documents, provide all information and take or refrain from taking all actions as may be reasonably necessary
or appropriate to achieve the purposes of this Agreement. 

    17. LIMITATION
OF BENEFITS CLAUSE. None of the provisions of this Agreement will be for the benefit of or enforceable by any creditors of the parties, except as
otherwise expressly provided herein. 

    18. NON-WAIVER
PROVISION. No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or
to exercise any right or remedy consequent upon a breach thereof will constitute waiver of any such breach or any other covenant, duty, agreement or condition. 

    19. MULTIPLE
ORIGINALS. This Agreement may be executed in counterparts, all of which together will constitute one agreement binding on all the parties hereto,
notwithstanding that all such parties are not signatories to the original or the same counterpart. 

    20. CHOICE
OF LAWS. THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEVADA, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS
OF LAW. 

    21. SEVERABILITY
AND REFORMATION. If any provision of this Agreement is declared or found to be illegal, unenforceable, or void, in whole or in part, then the parties
will be relieved of all
obligations arising under such provision, but only to the extent that it is illegal, unenforceable or void, it being the intent and agreement of the parties that this Agreement will be deemed amended
by modifying such provision to the extent necessary to make it legal and enforceable while preserving its 

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intent or, if that is not possible, by substituting therefor another provision that is legal and enforceable and achieves the same objectives. 

    22. ENTIRE
AGREEMENT. This Agreement, and the agreements in the forms of exhibits attached hereto, constitute the entire agreement and understanding between the parties
with respect to the subject matter hereof and supersede and preempt any prior written or prior or contemporaneous oral understandings, agreements or representations by or between the parties, written
or oral, which may have related in any manner to the subject matter hereof. 

    23. WRITTEN
AMENDMENTS PROVISION. No supplement, modification or amendment of this agreement or waiver of any provision of this Agreement will be binding unless
executed in writing by all parties to this Agreement. No waiver of any of the provisions of this Agreement will be deemed or will constitute a waiver of any other provision of this Agreement
(regardless of whether similar), nor will any such waiver constitute a continuing wavier unless otherwise expressly provided. 

    24. WRITTEN
CONSENT FOR ASSIGNMENT. No party may assign this Agreement or any rights or benefits thereunder without the written consent of the other parties to this
Agreement. 

    25. CHOICE
OF FORUM. Any action arising and initiated pursuant to this Agreement must proceed in a state or federal district court in Clark County, Nevada. If such an
action cannot proceed in a state or federal district court due to jurisdictional limitations, then it will proceed in any state or county court of competent jurisdiction in Clark County, Nevada. 

    EXECUTED
as of the date first above written. 

	 	 	ANCHOR GAMING
	

 	
 	
By:	

/s/ T. J. MATTHEWS   

	

 	
 	

and
	

 	
 	
EXECUTIVE
	

 	
 	
By:	

/s/ CHRISTER S. T. ROMAN   
 Christer S. T. Roman

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EXHIBIT A    
  

     

  

 
 

Consent & Release Form
  Drug Testing
  Pre-Employment, Reclassification/Promotion    
  

    It is the policy of Anchor to prohibit the possession, drinking, selling, exchanging or being under the influence of alcohol, intoxicants, or
non-prescribed or illegal drugs when reporting for duty, or on duty. It is also the policy of Anchor to conduct pre-employment drug tests to determine an applicant's
suitability for employment and/or an employee's suitability for reclassification/promotion for positions supervisory or above, as well, for positions whose essential job duties involve security,
safety, and/or money handling. 

	    I,	 	  
(Print Name)	, therefore voluntarily give my permission
	to Anchor and the laboratory/clinic it has selected, to draw samples, and conduct tests required for drug testing as a pre-requisite for employment as identified above. Further, I give my consent for the
results of this test to be released to Anchor for the purpose of evaluating my condition for prospective or continued employment.

    I
understand that if positive results to the test are caused by medication(s) prescribed by an accredited physician for treatment of a current condition, Anchor may verify the
circumstances with the physician prior to any offer of employment. 

    I
understand that if the prescribed medication that I am taking will adversely affect my ability to perform the job that I am being considered for in a safe and efficient manner,
Anchor has the right to defer my application until such time that I no longer require the medication or discontinue considering me for employment of the position if the position must be filled
immediately. I understand that if a
positive result of the test is caused by medications that are not part of a currently prescribed medical treatment, I will not be hired. 

    I
understand that if I am currently employed by Anchor that in the absence of an acceptable explanation, a positive result to a drug test will result in my termination. 

    I
agree to hold Anchor, it's agents, directors, officers and employees harmless from any and all liability in connection with this and/or any future testing, and I hereby release and
discharge Anchor from any and all claims, potential claims, or actions resulting from or relating to such testing, including the taking of samples, the testing process, procedures and analysis, and
the disclosure and utilization of tests results in considering my employment or continue employment with Anchor. 

Acknowledged,

	
	 	

	Signature of Applicant/Employee	 	Date
	

	
 	

	Signature of Anchor Witness	 	Date

 
 

EXHIBIT B    
  

ANCHOR
GAMING

EXECUTIVE STOCK OPTION AGREEMENT 

    THIS
AGREEMENT, dated as of March 19, 2001, is by and between Anchor Gaming, a Nevada corporation ("ANCHOR GAMING"), and Christer S. T. Roman (the "PARTICIPANT"). 

RECITALS 

    WHEREAS,
Anchor Gaming has adopted the Anchor Gaming 1995 Stock Option Plan and the Anchor Gaming 2000 Stock Incentive Plan (collectively the "PLAN") to enable employees of Anchor
Gaming and its majority-owned subsidiaries to acquire shares of common stock, $.01 par value, of Anchor Gaming ("COMMON STOCK") in accordance with the provisions of the 2000 Plan. 

    The
Board of Directors (the "BOARD") has selected Participant to participate in the 1995 Plan and the 2000 Plan and has determined to grant Participant the right and option to
purchase shares of Common Stock in accordance with the terms and conditions of this Agreement, provided that if any change is made in the shares of Common Stock (including, but not limited to, changes
by stock dividend, stock split, merger or consolidation, but not including the issuance of additional shares for consideration), the Board of Directors or the Committee appointed to administer the
Plan (the "COMMITTEE"), will make such adjustments in the number and kind of shares (which may consist of shares of a surviving corporation to a merger) that may thereafter be optioned and sold under
the 1995 Plan or the 2000 Plan, as applicable, and the number and kind of securities or other property (which may consist of shares of a surviving corporation to a merger) and purchase price per share
of shares subject to outstanding Stock Option Agreements under the 1995 Plan and the 2000 Plan as the Board of Directors or the Committee determines are equitable to preserve the respective rights of
the Participants under the 1995 Plan or the 2000 Plan, as applicable. 

    NOW,
THEREFORE, in consideration of the foregoing and of the mutual promises and other terms and conditions set forth in this Agreement, Anchor Gaming and Participant agree as
follows: 

    1.  DEFINITIONS.
As used in this Agreement, the following terms have the meanings indicated: 

    (a) "CAUSE"
means that the Board reasonably finds that any one or more of the following events has occurred: (i) performance by Participant of illegal or
fraudulent acts, criminal conduct, or willful misconduct relating to the activities of the Company, including, without limit, violation by Participant of any material gaming laws or regulations, which
violation materially and adversely affects the ability of Participant to perform his duties to the Company or may subject the Company to liability; (ii) conviction of, or nolo contendere plea
by Participant to, any criminal acts involving moral turpitude having a material adverse effect upon the Company, including, without limitation, upon its profitability, reputation, or goodwill;
(iii) willful and material disregard of any reasonable directive(s) from the Board that are not inconsistent with the terms of any contract with the Company to which Participant is party,
PROVIDED that the Board will provide Participant with written notice that such event has occurred ("NOTICE OF DISREGARD") and will further allow Participant 30 days in which to cure such
disregard, and PROVIDED FURTHER that the Board will provide an opportunity for Participant to be heard if there is no cure within 30 days of the Notice of Disregard; (iv) breach of
fiduciary duty, PROVIDED that the Board will provide Participant with written notice that such event has occurred ("NOTICE OF BREACH OF FIDUCIARY DUTY") and will further allow Participant
30 days in which to cure such breach of fiduciary duty, and PROVIDED FURTHER that the Board will allow an opportunity for Participant to be heard if there is no cure within 30 days of
the Notice of Breach of Fiduciary Duty; (v) material violation, not cured in a reasonable time after notice from the Company, by Participant of any of the covenants and agreements contained in
any agreement with the Company to which Participant is party; (vi) failure or inability of Participant to obtain or maintain required gaming licenses or approvals. 

 

    (b) "CHANGE OF CONTROL" means the occurrence of any of the following events, as a result of one transaction or a series of transactions: (i) any
"person" (as that term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), but excluding the Company, its affiliates, and any qualified or
non-qualified plan maintained by the Company or its affiliates) becomes the "beneficial owner" (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of securities of the Anchor Gaming representing more than 50% of the combined voting power of the Anchor Gaming's then outstanding securities; (ii) individuals who constitute a
majority of the Board of Directors of the Company immediately prior to a contested election for positions on the Board cease to constitute a majority as a result of such contested election;
(iii) Anchor Gaming is combined (by merger, share exchange, consolidation, or otherwise) with another entity and as a result of such combination, less than 50% of the outstanding securities of
the surviving or resulting entity are owned in the aggregate by the former shareholders of Anchor Gaming; (iv) the Company sells, leases, or otherwise transfers all or a majority of all of its
properties, assets or income or revenue generating capacity to another person or entity; (v) a dissolution or liquidation of Anchor Gaming or; (vi) any other transaction or series of
transactions is consummated that results in a required disclosure under Item 1 of Form 8-K or successor form. 

    (c) "COMPANY"
means Anchor Gaming and its majority-owned subsidiaries. 

    (d) "CONFIDENTIAL
INFORMATION" means all written, machine-reproducible, oral and visual data, information, and material, including, but not limited to, business,
financial, and technical information, records regarding sales, price and cost information, marketing plans, customer names, customer lists, sales techniques, manufacturing or distribution plans or
procedures; and computer programs, documents, and records (including those that Participant develops in the scope of his or her employment) that (i) the Company or any of its customers or
suppliers treats as proprietary or confidential through markings or otherwise, (ii) relates to the Company or any of its customers or suppliers or any of their business activities, products, or
services (including software programs and techniques) and is competitively sensitive and not generally known in the relevant trade or industry, or (iii) derives independent economic value from
not being generally known to, and is not readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or
use. Confidential Information does not include any information or material that is approved by Anchor Gaming for unrestricted public disclosure. 

    (e) "EXPIRATION
DATE" means the date and time as of which the Option expires, which is the earlier of (i) the close of business on the date one (1) year
after the entire Option has Vested or (ii) the date and time as of which all rights to exercise the Option are terminated under SECTION 2(e). 

    (f)  "MARKET
VALUE" of a share of Purchased Stock on a given date means (i) if the Purchased Stock is Publicly Traded, the closing sale price for Purchased
Stock, as determined in good faith by the Board of Directors, on such date or, if no closing sale price is available for such date, on the most recent prior date for which a closing sale price is
available or, if no closing sale price is available, the closing bid price, as so determined, on such date or, if no closing bid price is available for such date, the closing bid price on the most
recent prior date for which a closing bid price is available, or (ii) if the Purchased Stock is not Publicly Traded, its fair market value, as determined in good faith by the Board of
Directors, as of such date. 

    (g) "NET
INVESTMENT PROCEEDS," with respect to any share of Purchased Stock sold or otherwise transferred by Participant or Participant's successor in interest, means
the greater of the value of the gross proceeds received for such share or the Market Value of such share on the date of sale or transfer less, in either case, (i) the exercise price of the
Option for such share, 

2

 

(ii) any reasonable and customary commission actually paid for the sale or transfer, and (iii) the verified amount of any income taxes paid or payable on the sale or transfer. 

    (h) "OPTION"
means the right and option to purchase shares of Common Stock evidenced by this Agreement. 

    (i)  "PUBLICLY
TRADED" means Common Stock has been listed on a registered national securities exchange or approved for quotation in the Nasdaq-Registered Trademark-
National Market ("NASDAQ") or another national securities exchange of automated quotation service. 

    (j)  "PURCHASED
STOCK" means any security or property purchased upon the exercise of this Option, together with any successor security, property or cash issued or
distributed by Anchor Gaming or any successor entity, whether by way of merger, consolidation, share exchange, reorganization, liquidation, recapitalization, or otherwise. 

    (k) "TRANSFER"
or derivations thereof includes any sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange, or any other disposition or any
interest in this Agreement, the Option, or securities issued on exercise of this Option." 

    (l)  "VEST"
or derivations thereof with respect to any Option issued under this Agreement, means receiving the right to exercise the Option. 

    (m) "VESTING
PERIOD" means the period of time commencing on the date of this Agreement and ending on the date on which the entire Option has vested. 

    2.  GRANT
OF OPTION; PURCHASE OF STOCK. 

    (a) Subject
to the terms, conditions, and restrictions set forth in the 1995 Plan and the 2000 Plan, as applicable, and in this Agreement, Anchor Gaming hereby grants
to Participant, and Participant hereby accepts from Anchor Gaming, the Option to purchase from Anchor Gaming the number of shares of Common Stock specified in ATTACHMENT A to this Agreement, at the
exercise price so specified, which option will vest in Participant in accordance with the Vesting Schedule set forth on ATTACHMENT A to this Agreement. The Option will continue to vest only for as
long as Participant is an employee of Company, unless the Board or the Committee, in its sole discretion, agrees in writing otherwise. Participant will have the right to exercise the Option and
purchase Common Stock after the Option vests as provided in SECTION 2(d). 

    (b) The
exercise price of shares as to which the Option is exercised must be paid to Anchor Gaming at the time of the exercise either in cash or in such other
consideration as the Board or the Committee may approve consistent with the 1995 Plan or the 2000 Plan, as applicable, or a combination of cash and such other consideration having a total fair market
value, as determined by the Board or the Committee, equal to the purchase price. 

    (c) The
Option is only exercisable as to vested Options. If Participant is subject to termination for Cause or voluntary termination, Participant may only exercise only
those vested Options held by Participant at the time of termination. 

    (d) Notwithstanding
the other provisions of this Agreement or ATTACHMENT A, if Participant is terminated from employment with the Company without Cause, Options not yet
vested under ATTACHMENT A will vest immediately. 

    (e) Once
vested, (i) if the Participant ceases to be an employee of the Company for any reason whatsoever, voluntary or involuntary, other than death, the Option
may be exercised only until 5:00 p.m. Las Vegas time on the business day immediately preceding the first anniversary of such cessation the date of cessation of employment and in any case no
later than because of death of the Participant, the Option may be exercised by the Participant's estate only for two years after the Participant's death and in any case no later than the Expiration
Date. 

3

 

    (f)  Notwithstanding any other provision of this Agreement, in the event of Change of Control, Options not yet vested under ATTACHMENT A will vest immediately. 

    (g) In
the event that the total compensation paid to Participant as severance in the event of a Change of Control, taking into account all cash severance payments,
shares of stock, accelerated vesting of stock options, and bonuses, if any (such payments being the "SEVERANCE PAYMENT"), is found to constitute "an excess parachute payment" within the meaning of
then Anchor Gaming will pay to Participant, in addition to the compensation paid as the Severance Payment, an additional amount (the "additional amount") which, after reduction for income taxes and
excise taxes on the additional amount, is sufficient to provide for the payment of any excise tax that may be due by Participant on the Severance Payment. 

    3.  RESTRICTIONS
ON TRANSFER. The Option may not be sold or otherwise transferred and is exercisable only by Participant during Participant's lifetime unless the
transfer is by will or the laws of descent and distribution upon Participant's death. Anchor Gaming is not obligated to recognize any purported sale or other transfer of the Option or any Purchased
Stock in violation of this Section 3 and, unless it elects to do otherwise, may treat any such purported sale or transfer as null, void, and of no effect. 

    4.  RIGHTS
TO BUY BACK PURCHASED STOCK AND TO REQUIRE PAYBACK OF CERTAIN PROFITS. 

    (a) If
Participant has engaged in any conduct prohibited by SECTION 5, Anchor Gaming will have the right as its sole remedy under this Agreement (and not in limitation
of Anchor Gaming's rights under any other agreement) exerciseable until the expiration of 395 days after termination of employment (i) to cancel any unexercised Option, whether or not
vested, and to buy back from Participant any shares of Purchased Stock then owned by Participant, at a purchase price equal to the price per share paid by Participant for the shares, and
(ii) to require Participant to pay back to Anchor Gaming in cash the Net Investment Proceeds with respect to any shares of Purchased Stock sold or otherwise transferred by Participant. 

    (b) Whenever
Anchor Gaming has a right to buy back shares of Purchased Stock or to require Participant to pay back to Anchor Gaming Participant's Net Investment
Proceeds with respect to any shares of Purchased Stock under this SECTION 4, Anchor Gaming may exercise its right by notifying Participant or the subsequent holder of Anchor Gaming's election to
exercise its right within the designated exercise period. In the case of a buyback under SECTION 4(a), the giving of such notice will give rise to an obligation on the part of Participant or the
subsequent holder to tender to Anchor Gaming, within 10 days, any previously issued certificate representing shares of Purchased Stock to be bought back, duly endorsed in blank or having a duly
executed stock power attached in proper form for transfer free and clear of any claim by any other person or entity. If any such certificate is not tendered within 10 days, Anchor Gaming may
cancel any outstanding certificate representing shares to be bought back. Anchor Gaming is required to tender the purchase price for shares to be bought back under this SECTION 4 within 20 days
of giving notice of its election to exercise its right to buy back shares. If the person from whom the shares are to be bought back has not complied with an obligation to return a certificate
representing shares to be bought back, however, Anchor Gaming is not required to tender the purchase price until 20 days after the certificate is duly returned or 20 days after it
cancels the certificate, whichever occurs first. 

    (c) The
provisions of this SECTION 4 will expire on the occurrence of a Change of Control. 

    5.  COMPETITION
AND NON-DISCLOSURE. Participant acknowledges that: (i) in the course and as a result of employment with the Company, Participant will
obtain special training and knowledge and will come in contact with the Company's current and potential customers, which 

4

 

training, knowledge, and contacts would provide invaluable benefits to competitors of the Company; (ii) the Company is continuously developing or receiving Confidential Information, and that
during Participant's employment he or she will receive Confidential Information from the Company, its customers and suppliers and special training related to the Company's business methodologies; and
(iii) Participant's employment by Company creates a relationship of trust that extends to all Confidential Information that becomes known to Participant. Accordingly, and as a material
inducement to Anchor Gaming to grant this Option to Participant and other good and valuable consideration, Participant agrees that Anchor Gaming will be entitled, as its sole remedy under this
Agreement, to terminate all rights to exercise the Option and to exercise the rights specified in SECTION 4 if Participant does any of the following without the prior written consent of the Company: 

    (a) while
employed by the Company or within one year thereafter: 

    (i)  directly
or indirectly engages in, owns or controls an interest in (except as to those investments held at the effective date of this agreement or as a passive
investor in publicly held companies, i.e., Participant and Participant's spouse or lineal descendants do not own of record, or beneficially, an aggregate of more than two percent (2%) of any class of
outstanding securities) or acts as an officer,
director, or employee of, or consultant or adviser to, any firm, corporation, institution or entity, directly or indirectly in competition with or engaged in a business substantially similar to that
of the Company in the United States or in any foreign country in which the Company during the term of the Participant's employment sold, marketed, provided or solicited to sell, market or provide
products or services, including the development, manufacture, sale or marketing of products, services, devices, instruments, methods or techniques (or any related services or activities) similar to
any products, services, devices, instruments, methods or techniques that the Company was engaged in the development of, manufacturing, selling, or marketing, or had under consideration to do the same
(whether or not such products, devices, instruments, methods or techniques or the technology related thereto were obtained from Participant), during the term of the Participant's employment with the
Company; 

    (ii) solicits
or performs services in any manner that the Board of Directors reasonably and in good faith determines, after request by the Participant, is detrimental
to the business or financial condition of the Company, as an employee, independent contractor, or otherwise, for any person or entity (including any affiliates or subsidiaries of that person or
entity) that is or was a customer or prospect of the Company during the six months before Participant's employment with the Company ended if Participant solicited business from or performed services
for that customer or prospect while employed by the Company; or 

    (iii) recruits,
hires, or assist, directly or indirectly, anyone to recruit or hire anyone who was an employee of the Company, within the six months before
Participant's employment with the Company ended; or 

    (b) discloses
or uses any Confidential Information, except in connection with the good faith performance of Participant's duties as an employee; or fails to take
reasonable precautions against the unauthorized disclosure or use of Confidential Information; fails, upon Anchor Gaming' request, to execute and comply with a third party's agreement to protect its
confidential and proprietary information; solicits or induces the unauthorized disclosure or use of Confidential Information; or fails to return on Anchor Gaming's request any and all Confidential
Information in the Participant's care, custody, or control. 

    The
existence of any claim or cause of action of Participant against the Company, whether predicated on this Agreement or otherwise, will not constitute a defense of the Company's
enforcement of the covenants set forth in this SECTION 5. The Participant hereby submits to the jurisdiction of the courts of the State of Nevada and federal courts therein for the purposes of any
actions or proceedings 

5

 

instituted by the Company to obtain such injunctive relief. Participant further acknowledges and agrees that the obligations contained in SECTION 5 of this Agreement are fair, do not unreasonably
restrict Participant's further employment and business opportunities, and are commensurate with the compensation arrangements set out in this Agreement. The covenants contained in SECTION 5 will
each be construed as an Agreement independent of any other provision of this Agreement. Both parties intend to make the covenants of SECTION 5 binding only to the extent that it may be lawfully done
under existing applicable laws. 

    If
any court of competent jurisdiction finds any provision of this SECTION 5 to be unreasonable as to substantive scope, duration or geographic scope, then the Participant expressly
agrees that, at Anchor's sole discretion, and in addition to any other remedies at law or equity that may be available to Anchor Gaming: (i) such provision will be considered to be amended to
provide the broadest scope of protection to the Company that such court would find reasonable and enforceable or (ii) Anchor Gaming may require that this Agreement be rescinded. 

    This
SECTION 5 of this Agreement will survive either termination of the employment relationship or termination of this Agreement for the full period set forth in this SECTION 5. 

    6.  COMPLIANCE
WITH SECURITIES LAWS. Participant agrees that neither Participant nor any successor in interest of Participant will sell or otherwise transfer the Option
or any shares of Purchased Stock in any way that might result in a violation of any federal or state securities laws or regulations. Participant acknowledges and agrees that Anchor Gaming may require
Participant or any subsequent holder of the Option or of any shares of Purchased Stock to provide Anchor Gaming, prior to any sale or other transfer, with such other representations, commitments, and
opinions regarding compliance with applicable securities laws and regulations as Anchor Gaming may deem necessary or advisable. Anchor Gaming agrees to use its best efforts to cause a registration
statement covering resales of the Purchased Shares to be filed with the Securities and Exchange Commission and to be effective, and to list the Purchased Shares on Nasdaq and any other securities
exchange on which the common stock of Anchor Gaming is listed for trading. 

    7.  STOCK
CERTIFICATES; RIGHTS AS SHAREHOLDER. All certificates representing shares of Purchased Stock will bear such legends as the Board determines are necessary or
appropriate. Whether or not certificates representing shares of Purchased Stock have been issued or delivered, Participant will have all the rights of a shareholder of Purchased Stock, including
voting, dividend and distribution rights, with respect to shares of Purchased Stock owned by Participant. Participant will not have any rights as a shareholder with respect to any shares of Common
Stock subject to the Option before the date of issuance to Participant of shares upon exercise of the Option. 

    8.  INCOME
TAX WITHHOLDING. Participant will, upon request by the Company, reimburse the Company for, or the Company may withhold from sums or property otherwise due or
payable to Participant, any amounts the Company is required to remit to applicable taxing authorities as income tax withholding with respect to the Option or any Purchased Stock. If shares of
Purchased Stock are withheld for such purpose, they will be withheld at Market Value. If Participant fails to reimburse the Company for any such amount when requested, the Company has the right to
recover that amount by selling or canceling sufficient shares of any Purchased Stock held by Participant. 

    9.  COMPLIANCE
WITH PLANS. Participant acknowledges receipt of a copy of the 2000 Plan and the 1995 Plan and further acknowledges that this Agreement is entered into,
and the Option is granted, pursuant to the applicable Plan. If the provisions of such Plans are inconsistent with the provisions of this Agreement, the provisions of such Plans supersede the
provisions of this Agreement. 

    10. NOTICES.
Any notice to Anchor Gaming or the Company that is required or permitted by this Agreement will be addressed to the attention of the Secretary of Anchor
Gaming at its principal office. Any notice to Participant that is required or permitted by this Agreement will be addressed to 

6

 

Participant at the most recent address for Participant reflected in the appropriate records of the Company. Either party may at any time change its address for notification purposes by giving the
other written notice of the new address and the date upon which it will become effective. Whenever this Agreement requires or permits any notice from one party to another, the notice must be in
writing to be effective and, if mailed, will be deemed to have been given on the third business day after the same is enclosed in an envelope, addressed to the party to be notified at the appropriate
address, properly stamped, sealed, and deposited in the United States mail, and, if mailed to the Company, by certified mail, return receipt requested. 

    11. REMEDIES.
Anchor Gaming is entitled, in addition to any other remedies it may have at law or in equity, to temporary and permanent injunctive and other equitable
relief to enforce the provisions of this Agreement. Any action to enforce the provisions of, or relating to, this Agreement may be brought in the state or federal courts having jurisdiction in the
State of Nevada. By signing this Agreement, Participant consents to the personal jurisdiction of such courts in any such action. 

    12. ASSIGNMENT.
This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective heirs, personal representatives, successors, and
assigns. However, Participant does not have the power or right to assign this Agreement without the prior written consent of Anchor Gaming. 

    13. ATTORNEYS'
FEES. If any legal proceeding is brought to enforce or interpret the terms of this Agreement, the prevailing party will be entitled to reasonable
attorneys' fees, costs, and necessary disbursements in addition to any other relief to which that party may be entitled. 

    14. SEVERABILITY.
If any provision of this Agreement is held invalid or unenforceable for any reason, the validity and enforceability of all other provisions of this
Agreement will not be affected. 

    15. HEADINGS.
The section headings used herein are for reference and convenience only and do not affect the interpretation of this Agreement. 

    16. GOVERNING
LAW. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEVADA, WITHOUT REGARD TO THE CHOICE OF LAW RULES IN SUCH
LAW OR ANY OTHER PRINCIPLE THAT COULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. 

    17. ENTIRE
AGREEMENT. This Agreement, together with the 1995 Plan and the 2000 Plan, as applicable, and any procedure adopted by the Board or the Committee under the
Plan, constitutes the entire agreement between the parties with respect to its subject matter and may be waived or modified only in writing. 

7

 

    IN WITNESS WHEREOF, and intending to be legally bound hereby, Participant and a duly-authorized representative of Anchor Gaming have executed this Agreement as of the date
first above written. 

	PARTICIPANT	 	ANCHOR GAMING
	

/s/ Christer S. T. Roman	
 	

By:	
 	

/s/ T. J. Matthews
	
	 	 	 	

	Christer S. T. Roman	 	 	 	T. J. Matthews

Title: President and CEO

CONSENT
OF SPOUSE 

    As
the spouse of Participant, I consent to be bound by this Stock Option Agreement and agree that this consent will be binding on my interest under this Agreement and on my heirs,
legatees, and assigns. 

	 	 	/s/ Eva Roman
 Signature
	

 	
 	

Eva Roman
 Printed Name

8

 

EXECUTIVE STOCK OPTION AGREEMENT 

	1.	 	Exercise Price:	 	$50.625 per Share.
	

2.	
 	

Number of Options granted:	
 	

36,800
	

3.	
 	

Expiration Date:	
 	

As defined in SECTION 1(d) of this Agreement.
	

4.	
 	

Vesting Schedule:	
 	

 
	

 	
 	

Options shall vest at the rate of 2,300 options per calendar quarter, beginning on March 31, 2001 and continuing at the rate of 2,300 options on each subsequent December31, March 31, June 30 and September 30 until December 31,
 2004, when all 36,800 options herein granted have vested.

9

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EXHIBIT 10.23

EMPLOYMENT AGREEMENT

BACKGROUND

EXHIBIT A

Consent & Release Form Drug Testing Pre-Employment, Reclassification/Promotion

EXHIBIT BPrepared by MERRILL CORPORATION

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EXHIBIT 10.24    
  

 
 

EMPLOYMENT AGREEMENT    
  

    THIS AGREEMENT ("Agreement") is dated as of July 8, 2001, and is by and between Thomas J. Matthews
("Executive"), International Game Technology, a Nevada corporation (herein "North" or the "Company") and Anchor Gaming ("South"), a Nevada corporation. 

    WHEREAS, Executive is currently employed by South; and 

    WHEREAS, the Company (which for purposes of this Agreement shall include all of North's affiliates and subsidiaries) has entered into
an Agreement and Plan of Merger (the "Merger Agreement") with South, pursuant to which South will, upon consummation of the transactions contemplated in the Merger Agreement, become a direct
wholly-owned subsidiary of the Company (the "Merger"). The Company acknowledges that, following the Merger, continued access to the experience, knowledge and expertise possessed by Executive will be
critical to South's success; and 

    WHEREAS, the Company considers it important and in its best interest to foster the employment of key management personnel and desires
to retain the services of Executive on the terms and subject to the conditions in this Agreement; and 

    WHEREAS, the Executive desires to continue employment by South after the Merger and to render services to the Company on the terms and
subject to the conditions of this Agreement. 

    NOW, THEREFORE, in consideration of the premises and the respective undertakings of the parties set forth below, parties hereby agree
as follows: 

    1.  Employment.  The Company hereby employs Executive in the position of
President and Chief Executive Officer of South and Chief Operating Officer of the Company, and Executive accepts such employment and agrees to perform services for the Company for the period and upon
the other terms and conditions set forth in this Agreement. 

    2.  Duties of Executive.  

    2.1 Executive
shall report to the Chief Executive Officer of the Company. Executive will have all necessary powers to discharge his duties and responsibilities, which
will include responsibilities for matters as Chief Operating Officer of the Company and general oversight of the affairs of South and/or its subsidiaries and affiliates; consultation as needed with
officers, managers, employees and other personnel of South and the Company; and such other duties as the Chief Executive Officer and/or Board of Directors of the Company may reasonably assign,
consistent with duties typically assigned to employees who hold positions similar to that of Executive. 

    2.2. During
the Term of this Agreement and except as provided below, Executive will perform to the best of his abilities all duties assigned to him hereunder, will
devote substantially all of his primary business time, attention and effort to the affairs of South and the Company, and will use his reasonable best efforts to promote the interests of South and the
Company. Notwithstanding the foregoing or anything else in this Agreement, Executive may engage in reasonable charitable, civic or community activities. 

    2.3. Executive
warrants that he has obtained and possesses, or will obtain and possess, and will maintain through the Term of this Agreement, all licenses, approvals,
permits and authorizations (the "Licenses") necessary to perform Executive's duties hereunder, including without limitation, any licenses required by any state, county, Native American Tribe or other
agency having jurisdiction to regulate gaming, lotteries, liquor or the activities undertaken by the Company or South. Any costs, attorneys' fees, investigation fees or other expenses incurred in
connection with obtaining such Licenses will be borne by the Company. Executive warrants that he 

1

 

is fully eligible, under all standards and requirements, to obtain or possess such licenses and that Executive will commit no acts during the Term or any extension thereof that would jeopardize or
eliminate his ability to possess or maintain such licenses. 

    2.4. Executive
agrees to submit to drug testing in accordance with the Company's policy and to execute the Company's standard consent form. 

    3.  Term.  The Executive's employment pursuant to this Agreement shall commence
upon the Effective Time of the Merger as defined in Section 1.3 of the Merger Agreement (the "Effective Date"), and continue therefrom through and until October 16, 2004 (the "Term").
Upon the effectiveness of this Agreement pursuant to this Section 3, this Agreement will supersede all previous employment agreements by and between South and Executive, including without
limitation that certain Employment Agreement between South and Executive dated as of October 17, 2000 (the "Prior Agreement"). Notwithstanding the foregoing, if the Merger Agreement is
terminated pursuant to the terms thereof, this Agreement shall, from the date of termination of the Merger Agreement forward, be of no further force or effect, and the Prior Agreement shall remain in
force pursuant to the terms and conditions of such Prior Agreement. 

    4.  Compensation.  

    4.1 Base Salary.  As compensation in full for the services to be rendered by Executive under this
Agreement during the Term, the Company shall pay to Executive a base salary of Four Hundred Fifty Thousand Dollars ($450,000.00) per year ("Base Salary"), which Base Salary shall be paid in accordance
with the Company's normal payroll policies and procedures. 

    4.2 Bonus.  Executive will be eligible to participate in the Company's management bonus program, and the
bonus calculation shall not exceed 200 percent (200%) of the Executive's Base Salary in effect as of the end of the Company's fiscal year upon which the bonus is based. The bonus will be
payable based upon the increase in operating profits before incentives over the previous fiscal year, attainment of the Company's fiscal year ERP program goals, and various management objectives set
by the Chief Executive Officer of the Company in consultation with Executive. For each year that a bonus is granted, the amount greater than 165 percent of Base Salary will be accrued, and
payment deferred (the "Deferred Bonus") for two years. For example, the Deferred Bonus for year one would be paid in year three, the Deferred Bonus for year two, if any would be paid in year four and
so on, so long as Executive remains with the Company. If the Company decides not to continue Executive's employment at the end of the Term or pursuant to Paragraph 8.5 below, all Deferred Bonus
amounts would be due and payable at that time. 

    4.3 Participation in Benefit Plan.  Executive shall be entitled to participate in all employee benefit
plans or programs of the Company to the extent that his position, title, tenure, salary, age, health and other qualifications make him eligible to participate in accordance with the terms of the
applicable plans or programs. The Company does not guarantee the adoption or continuance of any particular employee benefit plan or program during the Term, and the Executive's participation in any
such plan or program shall be subject to the provisions, rules and regulations applicable thereto. 

    4.4 Stock Options.  Concurrent with the Effective Date of this Agreement, the Company shall grant to
Executive an option to purchase 500,000 shares of common stock of the Company at an exercise price equal to the closing trading price of the Company's common stock on the Effective Date, such grant to
be governed by the provisions of the Company's 1993 Stock Option Plan, as amended (the "Stock Option"). One-fifth (1/5) of the Stock Option will vest on each of the first
five (5) anniversaries of the Effective Date. 

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    4.5 Withholding Taxes.  The Company may withhold from any benefits payable under this Agreement, all
federal, state, city or other taxes as shall be required to be withheld pursuant to any law or governmental regulation or ruling. 

    5.  Confidential Information.  Except as permitted or directed by the Company's
Board of Directors or required by an order of a court having jurisdiction or under subpoena from an appropriate government agency, during the Term or at any time thereafter, Executive shall not
divulge, furnish or make accessible to anyone or use in any way other than in the ordinary course of the business of the Company (which shall, for purposes of this paragraph, include the Company's
subsidiaries and affiliates, before and after the Merger) any confidential or secret knowledge or information of the Company, which Executive has acquired or become acquainted with or will acquire or
become acquainted with prior to the termination of the period of his employment by the Company (including employment by the Company or any affiliated or predecessor companies prior to the date of this
Agreement), whether developed by himself or by others, concerning any trade secrets, confidential or secret designs, processes, formulae, plans, devices or material (whether or not patented or
patentable) directly or indirectly useful in any aspect of the business of the Company, any customer or supplier lists of the Company, any confidential or secret development or research work of the
Company, or any other confidential information or secret aspects of the business of the Company. Executive acknowledges that the above-described knowledge or information constitutes a unique and
valuable asset of the Company and represents a substantial investment of time and expense by the Company, and that any disclosure or other use of such knowledge or information other than for the sole
benefit of the Company would be wrongful and would cause irreparable harm to the Company. Both during and after the Term, Executive shall refrain from any acts or omissions that would reduce the value
of such knowledge or information to the Company. The foregoing obligations of confidentiality, however, shall not apply to any knowledge or information which is now published or which subsequently
becomes generally publicly known, other than as a direct or indirect result of the breach of this Agreement by Executive. 

    6.  Ventures.  If, during the Term, Executive is engaged or associated with the
planning or implementing of any project, program or venture involving the Company and/or its subsidiaries and affiliates, and a third party or parties, all rights with respect to such project, program
or venture shall belong to the Company, its subsidiaries and/or affiliates, as applicable. Except as approved by the Board of Directors of the Company, Executive shall not be entitled to any interest
in such project, program or venture or to any commission, finder's fee or other compensation in connection therewith other than the compensation to be paid by Executive as provided in this Agreement. 

    7.  Noncompetition Covenant  

    7.1. Agreement Not to Compete.  Executive agrees that during the Term of this Agreement and for one
(1) year after termination of Executive for any reason, Executive shall not, without the written consent of the Board of Directors of the Company, directly or indirectly, engage in competition
with the Company in any manner or capacity (e.g., as an advisor, principal, agent, partner, officer, director, stockholder, employee, member of any association or otherwise), in any phase of the
business which the Company, its subsidiaries and/or affiliates is conducting during the Term, including the design, development, manufacture, distribution, marketing, leasing, financing or selling of
accessories, devices, or systems related to the products or services being sold by the Company, its subsidiaries and/or affiliates. 

    7.2 Geographic Extent of Covenant.  The obligations of Executive under Section 7.1 shall apply to
any geographic area in which the Company has engaged in business during the Term. 

    7.3 Non-Solicitation.  Executive agrees that during the Term and for a period of twelve
(12) months thereafter, he will not, without the prior written approval of the Board of Directors of the Company, hire, solicit or endeavor to entice away from the Company, its subsidiaries and
affiliates, or, following termination of Executive's employment, otherwise interfere with the 

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relationship of the Company, its subsidiaries and affiliates with any management employee of the Company, its subsidiaries and affiliates, or any person or entity who was, within the then most recent
prior twelve-month period, a customer, supplier or contractor of the Company, its subsidiaries and affiliates. 

    8.  Termination.  This Agreement shall terminate in accordance with the following
provisions: 

    8.1 Expiration of the Term.  Unless earlier terminated in accordance with the provisions hereof, this
Agreement shall terminate upon expiration of the Term as provided in paragraph 3 above. After the expiration of the Term, the Board of Directors of the Company may continue the employment of
Executive and Executive may accept the employment on an at-will basis. 

    8.2 Death.  If the Executive dies during the Term, this Agreement shall terminate, with the Termination
Date being the date of the Executive's death. 

    8.3 Disability.  If the Executive has been absent from service to the Company as required in this
Agreement for a period of ninety (90) days or more during any one hundred eighty (180) day period during the Term as a result of any physical or mental disability, the Company has the
right to terminate this Agreement, the Termination Date being ten (10) days after notice thereof is given to Executive. 

    8.4 Termination by Company for Cause.  The Company has the right to terminate this Agreement for Cause as
defined herein, such termination to be effective immediately upon notice thereof from the Company to Executive. For purposes of this Agreement, "Cause" shall mean: 

    8.4.1.  The
willful and material failure of Executive to perform his duties hereunder (other than any such failure due to Executive's physical or mental
illness) or the willful and material breach by Executive of his obligations hereunder; 

    8.4.2  Executive
engaging in willful and serious misconduct that has cause or is reasonably expected to result in material injury to the Company; 

    8.4.3  Executive
is convicted of, or enters a plea of guilty or nolo contendre, to a crime that constitutes a felony; or 

    8.4.4  The
failure or inability of Executive to obtain or retain any license required to be obtained or retained by him in any jurisdiction in which the
Company does or proposes to do business. 

    8.5 Termination by the Company Without Cause.  If at any time the Board of Directors of the Company
decides to terminate this Agreement during the Term, it may do so under the following terms and conditions: 

    8.5.1  The
Company shall pay Executive an amount equal to one (1) year of Executive's Base Salary and any applicable Deferred Bonus in existence
at the time of termination. Such payment will be based upon the Base Salary in existence as of the date of termination. 

    8.5.2  The
Company will pay the premiums for Executive's health benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA) to the extent
that he is eligible for COBRA benefits, for the shorter of a period of one (1) year following termination without cause, or until Executive secures new employment. 

    8.5.3  In
the event of the death of the Executive during the Term of the Agreement, the one year of Base Salary and Deferred Bonus shall be paid to the
estate of Executive or as he shall otherwise direct in writing. 

    8.5.4  Executive's
Stock Options described in paragraph 4.4 above shall have their vesting accelerated in full so as to become one hundred
percent vested as of the date of termination. 

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    8.6 Termination Due to Change of Control.  If at any time during the Term, a third party acquires a
controlling interest in the Company, Executive may at his discretion elect to sever his relationship with the Company. In this instance, the provisions of paragraph 8.5 above shall apply. A
"Controlling Interest" or "Change of Control" shall be defined as a transfer of ownership of forty percent (40%) or more of the outstanding shares of the Company. In the event of a Change of Control
of the Company occurring while Executive is employed by the Company, Executive's stock options granted pursuant to paragraph 4.4 above shall have their vesting accelerated in full so as to
become one hundred percent (100%) vested as of the date of the Change of Control. 

    9.  Miscellaneous  

    9.1 Entire Agreement.  This Agreement, and the agreements in the forms of exhibits attached hereto,
constitute the entire agreement and understanding between the parties with respect to the subject matter hereof and supersede and preempt any prior written or prior or contemporaneous oral
understandings, agreements or representations by or between the parties, written or oral, which may have related in any manner to the subject matter hereof, including the Prior Agreement, and the
parties hereto have made no agreements, representations or warranties relating to the subject matter of this Agreement which are not set forth herein. Executive hereby acknowledges and confirms that
the Prior Agreement shall terminate as of the Effective Date, without any requirement or obligation that the Company or South make any payments to Executive in connection with such termination or as a
result of the Merger, and Executive hereby releases the Company and South of all of their obligations of any kind thereunder. 

    9.2 Governing Law.  This Agreement and all rights and obligations hereunder, including without limitation
matters of construction, validity and performance, is made under and shall be governed by and construed in accordance with the internal laws of the State of Nevada, without regard to principles of
conflict of laws. 

    9.3 Amendments.  No amendment or modification of this Agreement shall be deemed effective unless made in
writing and signed by all of the parties hereto. 

    9.4 No Waiver.  No term or condition of this Agreement shall be deemed to have been waived, nor shall
there be any estoppel to enforce any provisions of this Agreement, except by a statement in writing signed by the party against whom enforcement of the waiver or estoppel is sought. Any written waiver
shall not be deemed a continuing waiver unless specifically stated, shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the
future or as to any act other than that specifically waived. 

    9.5 Severability.  To the extent any provision of this Agreement shall be invalid or unenforceable, it
shall be considered deleted herefrom and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect. In furtherance and not in limitation of
the foregoing, should the duration or geographical extent of, or business activities covered by, any provision of this Agreement be in excess of that which is valid and enforceable under applicable
law, then such provision shall be construed to cover only that duration, extent or activities which may validly and enforceably be covered. Executive acknowledges the uncertainty of the law in this
respect and expressly stipulates that this Agreement be given the construction which renders its provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under
applicable law. 

    9.6 Assignment.  This Agreement may be assigned by the Company in connection with a Change of Control or
sale of all or substantially all of the Company's assets. This Agreement shall not be assignable, in whole or in part, by Executive without the prior written consent of the Company. 

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    9.7 Injunctive Relief.  Executive agrees that it would be difficult to compensate the Company fully for
damages for any violation of the provisions of this Agreement, especially the provisions of paragraphs 5 and 7 above. Accordingly, Executive specifically agrees that the Company shall be entitled to
temporary and permanent injunctive relief to enforce the provisions of this Agreement and that such relief may be granted without the necessity of proving actual damages. This provision with respect
to injunctive relief shall not, however, diminish the right of the Company to claim and recover damages in addition to injunctive relief. 

    9.8 Arbitration.  Any controversy or claim arising out of or relating to this Agreement or breach
thereof, except for claims for injunctive relief set out in paragraph 9.7 above, shall be settled by arbitration in accordance with the rules of the American Arbitration Association relating to
employment, and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. In reaching his or her decision, the arbitrator shall have no authority to
change or modify any provision of this Agreement. 

    IN WITNESS WHEREOF, the Company, South and Executive have executed this Agreement as of the date set forth in the first paragraph. 

	 	COMPANY:
	

 	

INTERNATIONAL GAME TECHNOLOGY, a Nevada corporation
	

 	

By:	

/s/ G. THOMAS BAKER   

	 	Name:	G. Thomas Baker

	 	Its:	President

	

 	
SOUTH:
	
 	

ANCHOR GAMING, a Nevada corporation
	

 	

By:	

/s/ JOSEPH MURPHY   

	 	Name:	Joseph Murphy

	 	Its:	Chief Operating Officer—Gaming Operations

	

 	
EXECUTIVE:
	

 	
By:	

/s/ THOMAS J. MATTHEWS   
 THOMAS J. MATTHEWS

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QuickLinks

EXHIBIT 10.24

EMPLOYMENT AGREEMENT

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