Document:

exv10w11

 

Exhibit 10.11

PRIVATE AND CONFIDENTIAL

Dated
___ July 2005

 

(1) Mikohn Gaming Corporation

(2) Neil Crossan

 

EXECUTIVE’S SERVICE AGREEMENT

 

1

 

THIS AGREEMENT is made on ___1st__ July, 2005

BETWEEN:

	(1)	 	Mikohn Gaming Corporation of 920 Pilot Road, Las Vegas, NV 89119 (“the Company”) and

	(2)	 	Neil Crossan of [30 Lake Street, Oxford, Oxfordshire] (“the Executive”)

RECITAL

It is the intention of the parties that this document be executed as a deed.

	1.	 	Interpretation
	 
	1.1	 	In this Agreement, (except where the context otherwise requires) the words and expressions
set out below shall have the following meanings:

	 	(a)	 	the “Board” means the board of directors from time to time of the Company or a
duly authorised committee of it;
	 
	 	(b)	 	“Confidential Material” means any information relating to the Group or the
business, prospective business, technical processes, computer software (both source and
object code), Intellectual Property Rights or finances of any member of the Group, or
complications of two or more items of such information whether or not each individual
item is in itself confidential, including without limitation, price lists, lists of
customers and suppliers (both current and those who were customers or suppliers during
the past two years), which comes into the Executive’s possession by virtue of the
Employment, and which the relevant member of the Group regards, or could reasonably be
expected to regard, as confidential, whether or not such information is reduced to a
tangible form or marked in writing as “confidential”, and any and all information which
has been or may be derived or obtained from any such information;
	 
	 	(c)	 	the “Employment” means the employment of the Executive pursuant to this
Agreement or, as the context requires, its duration;
	 
	 	(d)	 	the “Group” means the Company, any subsidiary of the Company, any holding
company of the Company, any subsidiary of such holding company and any company
designated by the Board as an associated company from time to time;
	 
	 	(e)	 	“Intellectual Property Rights” means copyrights, patents, utility models, trade
marks, service marks, design rights (whether registered or unregistered), database
rights, semiconductor topography rights, proprietary information rights and all other
similar proprietary rights and applications for such rights as may exist anywhere in
the world;
	 
	 	(f)	 	“Inventions” means all inventions, improvements, modifications, processes,
formulae, models, prototypes and sketches, drawings, plans or specifications for them
or other matters which the Executive alone or with one or more others may make, devise
or discover during the Employment and which pertain or are actually or potentially
useful to the commercial or industrial activities from time to time of the Group or the
processes or machinery of the Group for providing the services or making the products
of the Group or which pertain to, result from or are suggested by

2

 

	 	 	 	any work which the Executive or any employee has done or may do during the
Employment for the Group;
	 
	 	(g)	 	“Recognised Investment Exchange” has the meaning given to it in Section 285 of
the Financial Services and Markets Act 2000; and
	 
	 	(h)	 	“Termination Date” means the date on which the Employment terminates.

	1.2	 	The expressions “holding company” and “subsidiary” shall have the meanings given to them by
Sections 736 and 736A, Companies Act 1985.

	1.3	 	In this Agreement, unless the context otherwise requires:

	 	(a)	 	references to Clauses are to clauses of this Agreement, as amended in
accordance with this Agreement;
	 
	 	(b)	 	the Clause headings are for convenience only and shall not affect the
interpretation of this Agreement;
	 
	 	(c)	 	the Recital constitutes an integral part of this Agreement;
	 
	 	(d)	 	references to any legislation are reference to that legislation as amended,
replaced or re-enacted from time to time and any subordinate legislation made under it;
	 
	 	(e)	 	words implying the singular include the plural and vice versa;
	 
	 	(f)	 	words implying a gender include every gender; and
	 
	 	(g)	 	references to a person include an individual, firm, company, corporation,
unincorporated body of people, or any agency of the above.

	2.	 	Appointment

	2.1	 	The Company will employ the Executive and the Executive will serve the Company as Executive
Vice President, International Division.

	3.	 	Duration

	3.1	 	Subject to Clauses 3.2, 15.1 and 16.1 the Employment commenced on 1st July 2005 and will
continue unless or until terminated by either party giving to the other not less than 30 days’
written notice, such notice to expire at any time.

	3.2	 	Notwithstanding Clause 3.1, the Company will be entitled at its sole discretion to make a
payment of basic salary to the Executive in lieu of notice and to deduct sums equivalent to
tax and national insurance from any such payment; provided that if the Company decides not to
make a payment to the Executive under this Clause, the Executive cannot enforce that payment
as a contractual debt nor as liquidated damages and his sole remedy will be a claim in
damages. [

	3.3	 	The Executive’s continuous period of employment with the Company began on October
12th 2000.

	3.4	 	During any period of notice, the Executive may be required by the Company, in its absolute
discretion, for up to twelve months not to attend at the Company’s premises at any time and
not to perform any duties for the Company or to perform only such duties, specific projects or

3

 

	 	 	tasks as are assigned to him expressly by the Company, for such period and at such place or
places as the Company deems necessary; provided, that the Executive will be entitled to
receive his basic salary during such period. For the avoidance of doubt, during any such
period the Executive will remain an employee of the Company and may not carry out any work
for any third party.

	3.5	 	The Company retains the right to suspend the Executive from the Employment on basic salary at
any time for a reasonable period to investigate any matter in which it reasonably believes the
Executive is implicated or involved (whether directly or indirectly). For the avoidance of
doubt, any decision to suspend will be made by the Chief Executive Officer.

	4.	 	Duties

	4.1	 	The Executive will:

	 	(a)	 	perform all the duties and exercise all the powers of his office and such other
functions within the Group (not being inconsistent with his position as Executive Vice
President, International Division, of the Company) as the Chief Executive Officer may
require to the best of his ability, giving the Company the full benefit of his
knowledge, expertise and technical skills, and he will comply with all lawful
directions given by or with the authority of the Board, and whenever required to do so,
will promptly give a full account to the Board or a person duly authorised by the
Board, of all matters entrusted to him;
	 
	 	(b)	 	comply with all reasonable directions from time to time given to him by the
Chief Executive Officer and with rules and policies from time to time laid down by the
Company;
	 
	 	(c)	 	whenever so required for the proper fulfilment of his duties, work without
further remuneration in excess of the normal hours of work of the Company;
	 
	 	(d)	 	attend and work at any premises of the Group wherever situated, and travel and
work both in the United Kingdom and abroad, as may be required for the proper
fulfilment of his duties; and
	 
	 	(e)	 	at the request of the Company, accept any other appointment with the Group
(whether such appointment is in addition to or in substitution for the appointment
specified in Clause 2) whether in the United Kingdom or abroad; provided, that such
appointment does not render the terms of the Employment, taken as a whole, materially
less favourable to the Executive than those prevailing before such appointment. No
such change will be deemed to be a termination of the Employment.

	4.2	 	The Executive agrees that for the purposes of the Working Time Regulations 1998 (and any
amendment or re-enactment thereof) any legislative provisions imposing a maximum number of
average weekly working hours shall not apply to the Employment. The Executive may withdraw
consent by giving the Company not less than three months’ notice in writing.

	4.3	 	The Executive agrees not to voluntarily assist any person in bringing or pursuing, or
preparing to bring or pursue, any claim or action of any kind against the Company, its
parents, subsidiaries, affiliates, officers, directors, employees or agents save as required
by Order of a Court of competent jurisdiction.

	4.4	 	Before and after the Termination Date, the Executive agrees to reasonably cooperate with the
Company in connection with its actual or contemplated defence, prosecution, or investigation
of any claims or demands by third parties, or other matters, arising from events, acts, or

4

 

	 	 	failures to act that occurred during the time period in which the Executive is employed by
the Company. Such cooperation includes, without limitation, the Executive making himself
available upon reasonable notice, without Order of a Court of competent jurisdiction, for
interviews and truthful and accurate testimony, which could include depositions, trial
testimony and/or witness statements. The Company will reimburse the Executive for
reasonable out-of-pocket expenses he incurs in connection with any such cooperation
(excluding forgone wages, salary, or other compensation), and will reasonably accommodate
the Executive’s scheduling needs. In addition, the Executive agrees to execute all
documents (if any) necessary to carry out the terms of this Clause 4.4.

	5.	 	Employment interests

	5.1	 	Subject to Clause 5.2, during the Employment the Executive will not, without the prior
consent of the Company be engaged or be concerned or undertake or be interested in (whether
directly or indirectly) any other business or occupation or become a director or employee or
agent or consultant or partner of any other person, firm or company (other than a company
within the Group).

	5.2	 	Notwithstanding Clause 5.1, the Executive may own beneficially any shares or securities
listed on a Recognised Investment Exchange which when aggregated with shares or securities
beneficially owned by his spouse and/or children, total not more three per cent of any single
class of shares or securities in any company.

	6.	 	Remuneration

	6.1	 	The Company will pay to the Executive during the Employment a basic salary at the rate of
[GBP 153,952] per annum (or at such higher rate as the Company may in its absolute discretion
from time to time decide) which will accrue from day to day and be payable by equal monthly
instalments in arrears on or before the last day of each calendar month. The Executive’s basic
salary shall increase at a rate of no less than 5% per annum for the duration of the
Agreement. In addition to the foregoing, Executive shall be entitled to a payment of GBP
2,050 per month for the duration of the Agreement, which shall constitute a cost of living
adjustment (“COL”).

	6.2	 	At the sole and absolute discretion of the Company, the Executive may be eligible to receive
a bonus during the Employment. The amount of any bonus paid will be determined by the
Company’s Compensation and Executive Committees. The payment of a bonus in respect of one
year will not create any right or entitlement to a bonus in respect of any subsequent
financial year. No bonus payment will be made if at the due payment date the Executive has
received or has given notice of the termination of the Employment or has ceased to be employed
by the Company.

	6.3	 	During the term of this Agreement, the Company will provide the Executive a family membership
at Spanish Trails Country Club subject to and in accordance with the rules of such membership
scheme. The Executive shall be responsible for payment of monthly dues and other charges
(except for the initial membership charge).

	6.4	 	At the sole and absolute discretion of the Company, and subject to approval of the Board, the
Executive may be eligible to receive options to purchase shares of the Company’s common stock
subject to and in accordance with the rules of the Company’s Stock Option Program from time to
time.

	6.5	 	The Executive authorises the Company to deduct from the Executive’s salary sums from time to
time owing from the Executive to the Company or any other member of the Group.

5

 

	6.6	 	In addition to all other compensation, the Company shall pay to Employee a one time lump sum
of 30,000 Euros to assist Employee in his relocation. This sum shall be payable no later than
October 31, 2005. The parties acknowledge that all necessary taxes will be withheld form this
amount in ordinary course.

	7.	 	Expenses

	7.1	 	The Company will reimburse to the Executive (against receipts or other appropriate evidence)
all expenses properly and reasonably incurred by him in the course of his duties under the
Employment, including but not limited to the reasonable, actual and documented costs of
relocation of Executive’s personal belongings to the United Kingdom.

	7.2	 	If the Executive is provided with a credit or charge card by the Company, this must only be
used for expenses reasonably incurred by him in the course of performing his duties under the
Employment.

	8.	 	Car

	8.1	 	Subject to the Company’s car policy, and to the terms of that policy in force from time to
time, the Company will pay the Executive a car allowance of GBP 900 per month. The allowance
shall be payable by monthly payments in arrears subject to such deductions as are required by
law.

	9.	 	Sickness pay

	9.1	 	The Executive has no contractual right to pay in respect of absence due to sickness or injury
save for the Executive’s entitlement to statutory sick pay (“SSP”) under the Social Security
Contributions and Benefits Act 1992 and any payment made by the Company during a period of
such absence in addition to SSP will be at the Company’s sole discretion. Any payment made
under this Agreement in respect of a day of sickness will count towards the Executive’s SSP
for that day and any sickness or other benefits obtained by the Executive under any social
security, national insurance or other legislation from time to time in force or any benefit
received by him as a result of contributions paid by the Company to any health insurance
scheme, in respect of a day of sickness will count towards payment to be made under this
Agreement in respect of that day. Monday to Friday (inclusive) in each week shall be
Qualifying Days for the purposes of the said Act.

	9.2	 	In respect of any absence from the Employment due to sickness or injury lasting up to 7 days,
the Executive will send to the Board, or to such person as it may nominate, a self certificate
in such form as the Company may reasonably require. In respect of any absence exceeding 7
days, he will send to the Board or to the Board’s nominee, a statement of his disability
signed by a medical practitioner covering absence after the seventh day.

	9.3	 	If the Executive is absent from work due to sickness or injury which is caused by the fault
of another person, and as a consequence recovers from that person or another person any sum
representing compensation for loss of salary or other benefits under this Agreement, the
Executive will repay to the Company any money it has paid to him as salary and the value of
other benefits in respect of the same period of absence.

	9.4	 	Subject to the Executive’s rights pursuant to the Access to Medical Reports Act 1998, the
Executive agrees to be examined at the Company’s expense by a doctor nominated by the Company
if at any time the Company so requests and the Executive authorises such doctor to disclose
and to discuss with the Company and its advisers the results of such examinations.

6

 

	10.	 	Holidays

	10.1	 	The Executive will be entitled, with full remuneration, to the usual public and statutory
holidays and a further 25 working days’ holidays in each full holiday year, to be taken at
such times as will be agreed between the Chief Executive Officer and the Executive or, failing
agreement, as the Chief Executive Officer may determine. Holidays must be requested as far in
advance as is practicable and in any event not less than one week prior to the start of the
holiday.

	10.2	 	The Executive’s holiday entitlement will be deemed to accrue from day to day and may not be
carried over from one holiday year to the next. No payment will be made to the Executive in
lieu of holiday accrued but not taken by him save on the termination of the Employment.
However, where the Executive is dismissed pursuant to Clause 15.1 any such payment will be
limited to that required by law. If on termination of the Employment, the Executive has
exceeded his accrued holiday entitlement, the appropriate deduction will be made from the
Executive’s final salary payment.

	10.3	 	The Company’s holiday year runs from 1 January to 31 December.

	11.	 	Pensions and insurance

	11.1	 	The Company does not operate a pension scheme and the Executive is encouraged to make his own
pension arrangements.

	11.2	 	Notwithstanding the above, the Company will provide the Executive with access to a designated
stakeholder pension scheme as required by law.

	11.3	 	If the Executive decides to contribute to the designated stakeholder pension scheme the
Company will at his request arrange for his contributions to be deducted from his monthly
salary and paid direct to the designated stakeholder pension scheme. The Executive may vary,
cease or re-commence contributions although the Company reserves the right to restrict the
frequency of variation, cessation or recommencement of contributions. The Executive will be
provided with this information when he first makes contributions.

	11.4	 	The Company has not opted to contract out of the State Earnings Related Pension Scheme and a
Contracting-out Certificate issued in accordance with the Pension Schemes Act 1993 is not in
force in respect of the Employment.

	11.5	 	During the Employment, the Executive will be entitled to participate at the Company’s expense
in such private medical expenses and dental insurance schemes offered by the Company and as
the Executive elects to participate in, subject to the rules of the scheme from time to time
(and any replacement schemes provided by the Company) and subject to the Executive being
eligible to participate in or benefit from such scheme pursuant to its rules.

	11.6	 	The Executive agrees that the Company shall have no liability to the Executive for any act,
omission or default of any of the insurers, issuers or providers of any of the benefits
specified above or otherwise provided to the Executive during the Employment. The maintenance
of these benefits is a taxable benefit in the Executive’s hands and will be disclosed to the
Inland Revenue.

	11.7	 	The Company will, to the maximum extent permitted by law, defend, indemnify and hold harmless
the Executive and the Executive’s heirs, estate, executors and administrators against any
costs, losses, claims, suits, proceedings, damages or liabilities to which the Executive may
become subject which arise out of, are based upon or relate to the Executive’s employment by
the Company (and any predecessor company to the Company), or the

7

 

	 	 	Executive’s service as an officer or member of the Board of Directors of the Company (or any
predecessor company of the Company) or any affiliate, including without limitation
reimbursement for any legal or other expenses reasonably incurred by the Executive in
connection with investigation and defending against any such costs, losses, claims, suits,
proceedings, damages or liabilities.

	11.8	 	The Company may maintain directors and officers liability insurance in commercially
reasonable amounts (as reasonably determined by the Board) subject to and in accordance with
the rules of such scheme, and, in the event such insurance is obtained, the Executive shall be
covered under such insurance to the same extent as other senior management employees (and
directors, with respect to the Executive’s role as a director, as may be applicable);
provided, however, that the Company shall not be required to maintain such insurance coverage
unless the Board determines that it is obtainable at a reasonable cost.

	12.	 	Intellectual property rights

	12.1	 	The Executive will promptly disclose and deliver to the Company for the exclusive use and
benefit of the Group full details of any Inventions upon the making, devising or discovering
of the same during the Employment, irrespective of whether they were so made, devised or
discovered during normal working hours or using the facilities of the Company. The Executive
will, irrespective of the termination of the Employment, give all information and data in his
possession as to the exact mode of working, producing and using the same and will also at the
expense of the Company give all such explanations, demonstrations and instructions to the
Company as the Board may deem appropriate to enable the full and effectual working, production
or use of the same.

	12.2	 	The Executive will, without additional payment to him (except to the extent provided in
Section 40, Patents Act 1977 or any similar provision of applicable law), whether or not
during the continuance of the Employment, at the expense of the Company, promptly execute and
do all acts, matters, documents and things necessary to enable the Company or its nominee to
apply for and obtain any or all applicable Intellectual Property Rights in any or all
countries relating to any Inventions or other materials produced by the Executive during the
Employment.

	12.3	 	The Executive:

	 	(a)	 	will do anything necessary to confirm vesting of title to any or all applicable
Intellectual Property Rights (except only to the extent that such Intellectual Property
Rights fail to vest in the Company) in any or all countries relating to any Inventions
or other materials produced by the Executive during the Employment in the Company or
its nominee absolutely;
	 
	 	(b)	 	with full title guarantee hereby assigns (insofar as title to them does not
automatically vest in the Company as a consequence of the Employment) to the Company by
way of future assignment all copyrights arising in any original material (including
without limitation source code and object code for software) produced by the Executive
during the Employment, whether during the normal hours of work of the Company or
otherwise or at the premises or using the facilities of the Company or otherwise, being
the exclusive right to do and to authorise others to do any and all acts restricted by
the Copyright Designs and Patents Act 1988 in relation to such material in the United
Kingdom together with copyright in all other countries of the world (and/or any similar
rights in countries where such rights exist) for the whole term of such copyright
including any extensions or renewals thereof and including the right to sue for damages
and other remedies in respect of any infringements of the copyrights in

8

 

	 	 	 	such material or conversion of infringing copies of the material prior to the date
of this Agreement to hold unto the Company absolutely; and
	 
	 	(c)	 	waives all moral rights arising from any such original material so far as the
Executive may lawfully do so in favour of the Company and for the avoidance of doubt
this waiver shall extend to the licensees and successors in title to the copyright in
the said material.

	12.4	 	Without prejudice to the generality of Clauses 12.2 and 12.3, the Executive hereby
irrevocably and by way of security appoints the Company as his attorney in his stead to do all
such things and execute all such documents as may be necessary for or incidental to grant to
the Company the full benefit of this Clause.

	12.5	 	The Executive will do nothing (whether by omission or commission) during the Employment or at
any times thereafter to affect or imperil the validity of any Intellectual Property Rights
obtained, applied for or to be applied for by the Company or its nominee. In particular
without limitation the Executive shall not disclose the subject matter of any Inventions which
may be patentable before the Company has had the opportunity to apply for any patent or
patents. The Executive will at the direction and expense of the Company promptly render all
assistance within his power to obtain and maintain such Intellectual Property Rights or any
application for any extension of them.

	12.6	 	Nothing in this Agreement obliges any member of the Group to seek patent or other protection
for any Invention nor to exploit any Invention.

	13.	 	Confidentiality

	13.1	 	The Executive must not during the Employment (other than in the proper performance of his
duties) or at any time thereafter use for his own purposes or disclose to any third party any
Confidential Material and must use his best endeavours to prevent such disclosure, except upon
written approval of a duly authorised officer of the Company.

	13.2	 	All Confidential Material and all other documents, papers and property which may have been
made or prepared by, or at the request of, the Executive or have come into his possession or
under his control in the course of the Employment or which relate in any way to any member or
members of the Group or its or their the business, prospective business or affairs or those of
any customer, supplier, agent, distributor or sub-contractor of any member of the Group are,
as between the relevant member of the Group and the Executive, deemed to be the property of
the relevant member of the Group. The Executive must deliver up all such documents and other
property (including but not limited to the Company’s security badge and keys provided to the
Executive), including all copies, to the Company immediately upon the termination of the
Employment (or at any earlier time on demand).

	13.3	 	The Executive must immediately inform the Company if he becomes aware of the possession, use
or knowledge of any of the Confidential Material by any person not authorised to possess, use
or have knowledge of the Confidential Material, whether during the Employment or thereafter
and must at the Board’s request provide such reasonable assistance as is required to deal with
such event.

	13.4	 	The provisions of this Clause do not apply to any Confidential Material which:

	 	(a)	 	is in or enters the public domain other than by breach of the Agreement; or
	 
	 	(b)	 	is obtained from a third party who is lawfully authorised to disclose such
information; or

9

 

	 	(c)	 	is authorised for release by the prior written consent of the Chief Executive
Officer; or
	 
	 	(d)	 	is a protected disclosure as defined by the Public Interest Disclosure Act
1998.

	13.5	 	Nothing in this Clause will prevent the Executive from disclosing Confidential Material where
it is required to be disclosed by judicial, administrative, governmental or regulatory process
in connection with any action, suit, proceeding or claim or otherwise by applicable law.

	13.6	 	Failure by the Executive to comply with this Clause shall constitute a breach of this
Agreement entitling the Company to terminate it immediately.

	14.	 	Data protection

	14.1	 	The Executive hereby agrees that the Company may hold computer records and personnel files
relating to the Executive. These may include, but are not limited to, the Executive’s
employment application, references, bank details, performance appraisals, holiday and sickness
records, salary reviews and remuneration details and other records, (which may, where
necessary, include sensitive data relating to the Executive’s health, and data held for ethnic
monitoring purposes). The Company requires such personal data for personnel administration
and management purposes and to comply with its obligations regarding the keeping of
employee/worker records. The Executive’s right of access to this data is as prescribed by
law.

	14.2	 	The Executive hereby agrees that the Company may process personal data relating to him for
personnel administration and management purposes, and may, when necessary for those purposes,
make such data available to its advisors, to parties providing products and/or services to the
Company (such as IT systems suppliers, pension, benefits and payroll administrators), to
regulatory authorities (including the Inland Revenue) and as required by law. Further, the
Executive hereby agrees that the Company may transfer such data to and from any member of the
Group including any member of the Group located outside the European Economic Area.

	15.	 	Termination for breach

	15.1	 	Notwithstanding the provisions of Clause 3.1 and 16.1, the Company may terminate the
Employment by written notice having immediate effect if the Executive:

	 	(a)	 	is guilty of serious dishonesty or of gross misconduct or incompetence or
wilful neglect of duty or commits any breach of this Agreement, other than a breach
which is capable of remedy and is remedied immediately by the Executive, at the
Company’s request, to the complete satisfaction of the Company; or
	 
	 	(b)	 	is convicted of a criminal offence, other than an offence carrying a fixed
penalty under the Road Traffic Acts; or
	 
	 	(c)	 	is unable through sickness or injury for twelve consecutive weeks or an
aggregate of fifteen weeks in any fifty-two consecutive weeks to perform the duties of
the Employment; or
	 
	 	(d)	 	after receiving written warning from the Company in respect of the poor
performance of his duties, the Executive continues, in the opinion of the Chief
Executive Officer, to perform his duties to an unsatisfactory standard; or

10exv10w12

 

Exhibit 10.12

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“AGREEMENT”) is made and entered into as of June 6, 2005,
(“Effective Date”) by and between MIKOHN GAMING CORPORATION dba Progressive Gaming International
Corporation, a Nevada corporation (“MIKOHN” or the “Company”), and Thomas M. Galanty (“Employee”).

WITNESSETH:

     WHEREAS, MIKOHN and Employee deem it to be in their respective best interests to enter into an
agreement providing for MIKOHN’s employment of Employee pursuant to the terms herein stated.

     NOW, THEREFORE, in consideration of the premises and the mutual promises and agreements
contained herein, it is hereby agreed as follows:

     1. Term. MIKOHN hereby employs and Employee hereby accepts employment with MIKOHN for
a period of three (3) years beginning on June 20, 2005 (“Term”). Unless MIKOHN or Employee gives
written notice that this Agreement shall be allowed to expire and the employment relationship
thereby terminated (a “Non-renewal Notice”) at least thirty (30) days prior to the expiration of
the Term or any Renewal Term (as defined herein), this Agreement shall continue in effect for
additional terms of (1) one year each (“Renewal Term”).

     2. Duties of Employee. Employee’s position with MIKOHN will be Executive Vice
President and Chief Technology Officer. Employee shall do and perform all services, acts, or
things reasonably necessary or advisable to accomplish the objectives and complete the tasks
assigned to Employee by MIKOHN’s Chief Executive Officer. MIKOHN may assign Employee to another
position commensurate with Employee’s training and experience so long as the compensation paid to
Employee is equal to or greater than the compensation provided in this Agreement and the position
and related title, reporting level and responsibilities are of equal or greater nature, status and
prestige.

     3. Devotion of Time to MIKOHN’s Business. Employee shall be a full-time employee of
MIKOHN and shall devote such substantial and sufficient amounts of his productive time, ability,
and attention to the business of MIKOHN during the Term of this Agreement as may be reasonable and
necessary to accomplish the objectives and complete the tasks assigned to Employee. Prior written
consent of MIKOHN shall be required before Employee shall undertake to perform any outside services
of a business, commercial, or professional nature, whether for compensation or otherwise. The
foregoing notwithstanding, Employee may devote reasonable time to activities other than those
required under this Agreement, including activities involving professional, charitable, community,
educational, religious and similar types of organizations, speaking engagements, membership on the
boards of directors of other organizations and similar types of activities to the extent that such
activities do not inhibit or prohibit the performance of services under this Agreement.

     4. Uniqueness of Services. Employee hereby acknowledges that the services to be
performed by him under the terms of this Agreement are of a special and unique value. Accordingly,
the obligations of Employee under this Agreement are non-assignable.

     5. Compensation of Employee.

          a. Base Annual Salary. As compensation for services hereunder, Employee shall receive
a Base Annual Salary at the rate of not less than $260,000 per annum payable in accordance with
MIKOHN’s ordinary payroll practices (and in any event no less frequently than monthly). On each
anniversary date of June 20, 2005 (the “Commencement Date”), Employee’s Base Annual Salary shall be
increased by not less than 5% per annum.

          b. Signing Bonus/Moving Allowance. Upon the execution of this Agreement, Employee
shall be paid $80,000 as a combined signing bonus and moving allowance. Such bonus shall be
“grossed up” to cover Employee’s personal income taxes payable in connection therewith. This sum
is given in consideration of Employee’s commitment not to terminate this Agreement prior to the
initial expiration date, other than as permitted pursuant to Sections 6(c) or 19 below. If
Employee terminates this Agreement (other than as permitted pursuant to

1

 

Sections 6(c) or 19 below)
or if Employee is terminated for Cause (as defined Section 6(b) below) prior to the expiration of
three (3) years from the Commencement Date, Employee will be obligated to return and remit a pro
rata portion of the sum to MIKOHN. (For example, if Employee should terminate this Agreement after
one year as described above, Employee will be required to remit the sum of $53,333.34.)

          c. Bonus. Employee shall be eligible for an annual bonus payment of up to 60% or 80%
of Employee’s Base Salary pursuant to the executive incentive compensation plan approved by the
Board of Directors on August 10, 2004 (the “Executive Incentive Compensation Plan”); provided,
however that MIKOHN and Employee, as applicable, achieve the relevant bonus targets set forth in
the Executive Incentive Compensation Plan, as such targets may be determined (and/or modified and
revised, as applicable) by the Chief Executive Officer and the Board of Directors in consultation
with Employee.

          d. Stock Options. MIKOHN has granted to Employee options to purchase 100,000 shares
of MIKOHN Common Stock (the “Options”) under MIKOHN’s Stock Option Plan (“Option Plan”). The
Options are subject to the terms and conditions of the Option Plan (a copy of which is attached
hereto), and shall additionally provide as follows:

               (1) The Options shall be designated as Incentive Options.

               (2) Monthly, 1/48th of the Option Shares shall become eligible for purchase by Employee.

               (3) The Options shall terminate on (i) the expiration date specified in the Stock Option
Agreements or (ii) such earlier date as termination may occur according to the terms and conditions
of the Option Plan and/or the Stock Option Agreements. Upon termination of this Agreement for any
reason, Employee and/or his successors and assigns shall have only such rights with respect to the
Option as are specified in the Plan, the Stock Option Agreements, or this Agreement, and shall not
be entitled to any compensation in any form for the loss of any other right with respect thereto.

               (4) All Options to acquire common stock of MIKOHN granted to Employee during the term of this
Agreement shall become 100% vested (i) upon any “Change in Control” as defined in Section 19 below;
(ii) if MIKOHN or any successor or assignee of MIKOHN should terminate this Agreement other than
for Cause or deliver a Non-renewal Notice to Employee pursuant to Section 1 above; (iii) if
Employee should terminate this Agreement for Good Reason as permitted in Section 6(c) below; or
(iv) upon Employee’s death or permanent disability as described in Section 6(e) below; provided,
however, that in the case of (ii), (iii) or (iv) above, such vesting shall be conditioned on
Employee (or Employee’s estate) furnishing to MIKOHN an effective waiver and release of claims (a
form of which is attached hereto as Exhibit A).

               (5) Employee shall have not less than 90 days to exercise any options which are vested as of
the effective date of termination of his employment with MIKOHN, regardless of the reason therefor.

          e. Automobile. MIKOHN shall provide Employee an automobile allowance in the amount of
$1,000 per month.

          f. Country Club Membership. MIKOHN shall provide Employee with the use of a
membership in a country club of Employee’s choice, the initial cost of which shall not exceed
$35,000. In addition, MIKOHN shall reimburse Employee up to $500 per month for country club dues.
Such monthly amounts shall be “grossed up” to cover Employee’s personal income taxes payable in
connection therewith.

          g. Employee Benefits. Employee shall receive such benefits, fringe benefits and
entitlements as is usual and customary for MIKOHN to provide an executive employee of like status
and position and are consistent with MIKOHN’s established policies on employment, which may be
revised from time to time in the sole discretion of MIKOHN, including but not limited to:
Executive medical benefits for Employee and his family and an

2

 

Annual Life Insurance premium payment
by MIKOHN for Employee of up to $15,000 per annum for the duration of the Agreement.

          h. Business Expenses. MIKOHN will reimburse Employee for reasonable business expenses
incurred in performing Employee’s duties and promoting the business of MIKOHN.

          i. Restricted Stock. MIKOHN has granted Employee 35,000 restricted shares (“Shares”)
that are governed by, and vested in accordance with the terms of MIKOHN’s Restricted Stock Plan
(”Stock Plan”). The Fair Market Price for the Shares is $13.46. The Shares have been granted
pursuant to the form of MIKOHN’s standard Restricted Stock Grant Agreement (a copy of which is
attached hereto) and are subject to the terms and conditions thereof.

     6. Termination of Employment.

          a. Either party shall have the right to terminate this Agreement upon thirty (30) days written
notice to the other. If MIKOHN delivers a Non-renewal Notice to Employee, or if MIKOHN should
terminate this Agreement other than for “Cause” as defined in Section 6(b) below (“termination
without Cause”) or Employee should resign for “Good Reason” as defined in Section 6(c) below (in
either instance except as described in Section 19 below, in which case the provisions of Section 19
shall apply), MIKOHN shall, upon the Employee’s furnishing to MIKOHN an effective waiver and
release of claims (a form of which is attached hereto as Exhibit A), pay to Employee (x) a sum
equal to Employee’s Base Salary for the most recent 18 months, and (y) an amount equal to
Employee’s COBRA health insurance premiums for the 18 month period immediately following
such termination. In such event, MIKOHN shall also reimburse Employee for reasonable expenses
associated with outplacement employment activities for Employee, as well pay Employee the sum of
$25,000 (including a “gross up” amount to cover Employee’s personal income taxes payable in
connection therewith) for Employee’s relocation. Any sums payable under this Section shall be paid
in full upon the effective date of the termination of the employment relationship between MIKOHN
and Employee.

          b. Termination For Cause. MIKOHN shall have the right to terminate Employee’s
employment at any time for Cause by giving Employee written notice of the effective date of
termination. In the event of termination for Cause, Employee shall be paid Employee’s salary and
accrued and unused vacation benefits through the effective date of termination on the date of
termination. After the effective date of termination, Employee shall not be entitled to accrue or
vest in any further salary, severance pay, benefits, fringe benefits or entitlements except as may
be required by statute or regulation of any agency or competent jurisdiction; provided, however,
that in the event of a termination pursuant to Section 6(b)(e) below, pay Employee the sum of
$25,000 (including a “gross up” amount to cover Employee’s personal income taxes payable in
connection therewith) for Employee’s relocation. For the purposes of this Agreement, “Cause” shall
mean:

	 	(a)	 	The willful and continued failure by the Employee to substantially
perform his duties with MIKOHN (other than any such failure resulting from the
Employee’s being Disabled), within a reasonable period of time after a written
demand for substantial performance is delivered to the Employee by the Board of
Directors (“Board”), which demand specifically identifies the manner in which
the Board believes that the Employee has not substantially performed his
duties;
	 
	 	(b)	 	The willful engaging by the Employee in conduct which is
demonstrably and materially injurious to MIKOHN, monetarily or otherwise;
	 
	 	(c)	 	Employee’s conviction of a crime involving serious
moral turpitude to the extent that, in the reasonable judgment of the MIKOHN’s
Board, the Employee’s credibility and reputation no longer conform to the
standard of MIKOHN’s Employees;

3

 

	 	(d)	 	The knowing or repeated violation of any material MIKOHN policy
applicable to the Employee following written notice from MIKOHN of such
violations.

	 	(e)	 	The loss, revocation, suspension of, or failure to obtain any
license or certification of Employee necessary for Employee to discharge
Employee’s duties on behalf of MIKOHN. Any issues involving the loss,
revocation, suspension of or failure to obtain of such licenses and/or
certifications will be provided in writing to the Employee, and Employee, with
the assistance of MIKOHN, will have a reasonable period of time to remedy the
respective issue.
	 
	 	(f)	 	Willful acts or omissions by Employee which jeopardize any
governmental registration, license, permit or other governmental permission
material to the business of MIKOHN in any jurisdiction in which MIKOHN does
business or seeks to do business;
	 
	 	(g)	 	The solicitation or acceptance of payment or gratuity from any
existing or potential customer or supplier of MIKOHN without the prior written
consent of MIKOHN’s Chief Executive Officer.

          c. Resignation For Good Reason. Employee may terminate his employment under this
Agreement for “Good Reason” (as defined hereunder) at any time, by providing written notice to
MIKOHN of same following the provision to MIKOHN of a thirty (30) day opportunity to cure such Good
Reason. Any termination for Good Reason shall have the same legal effect under this Agreement as a
termination without Cause by MIKOHN. For purposes of this Agreement, the term “Good Reason” shall
mean, with respect to the Employee, the occurrence of one or more of the following events without
such Employee’s express written consent: (i) a material reduction in the Employee’s duties,
responsibilities, title or reporting relationships; (ii) a material reduction in the Employee’s
base salary or total target annual cash compensation; or (iii) a permanent relocation of the
Employee’s business office to a location more than fifty (50) miles from the location at which the
Employee currently performs his or her duties.

          d. For purposes of this Agreement, no act, or failure to act, on the Employee’s part shall be
deemed “willful” unless done, or omitted to be done, intentionally by the Employee not in good
faith and without reasonable belief that the Employee’s action or omission was in the best interest
of MIKOHN.

          e. This Agreement shall terminate automatically in the event that: (i) Employee fails or is
unable to perform Employee’s duties due to injury, illness or other incapacity for ninety (90) days
in any twelve (12) month period (except that Employee may be entitled to disability payments
pursuant to MIKOHN’s disability plan, if any); or (ii) Death of Employee. Upon termination of this
Agreement as the result of the death or disability of Employee, all vested stock options and
restricted stock provided herein shall become the property of the Employee’s estate.

     7. Covenant of Confidentiality. All documents, records, files, manuals, forms,
materials, supplies, computer programs, trade secrets and other information which comes into
Employee’s possession from time to time during Employee’s employment by MIKOHN, and/or any of
MIKOHN’s subsidiaries or affiliates, shall be deemed to be confidential and proprietary to MIKOHN
and shall remain the sole and exclusive property of MIKOHN. Employee acknowledges that all such
confidential and proprietary information is confidential and proprietary and not readily available
to MIKOHN’s business competitors. On the effective date of the termination of the employment
relationship or at such other date specified by MIKOHN, Employee agrees that he will return to
MIKOHN all such confidential and proprietary items (including, but not limited to, company badge
and keys) in his control or possession, and all copies thereof, and that he will not remove any
such items from the offices of MIKOHN.

     8. Covenant of Non-Disclosure. Without the prior written approval of MIKOHN, Employee
shall keep confidential and not disclose or otherwise make use of any of the confidential or
proprietary information or trade secrets referred to in Section 7 nor reveal the same to any third
party whomsoever, except as required by law.

4

 

     9. Covenant of Non-Solicitation. During the Term of this Agreement and for a period
of two (2) years following the effective date of termination, Employee, either on Employee’s own
account or for any person, firm, company or other entity, shall not solicit, interfere with or
induce, or attempt to induce, any employee of MIKOHN, or any of its subsidiaries or affiliates to
leave their employment or to breach their employment agreement, if any, with MIKOHN.

     10. Covenant of Cooperation. Employee agrees to cooperate with MIKOHN in any
litigation or administrative proceedings involving any matters with which Employee was involved
during his employment by MIKOHN. MIKOHN shall reimburse Employee for reasonable expenses incurred
in providing such assistance.

     11. Covenant Against Competition.

          a. Scope and Term. During the Term of this Agreement and for an additional period
ending one (1) year after the effective date of termination or expiration of this Agreement,
whichever occurs first, Employee shall not directly or indirectly engage in or become a partner,
officer, principal, employee, consultant, investor, creditor or stockholder of any business,
proprietorship, association, firm, corporation or any other business entity which is engaged or
proposes to engage or hereafter engages in any business which competes with the business of MIKOHN
and/or any of MIKOHN’s subsidiaries or affiliates in any geographic area in which MIKOHN conducts
business at the time of the termination or expiration of the employment relationship. Ownership by
Employee, as a passive investment, of less than two percent (2%) of the outstanding shares of
capital stock of any corporation with one or more classes of its capital stock listed on a national
securities exchange or publicly traded on the Nasdaq Stock Market or in the over-the-counter market
shall not constitute a breach of this paragraph.

          b. Option to Extend Term of Covenant. Upon thirty (30) days’ written notice to
Employee given prior to the expiration of the term of the Covenant Against Competition specified in
Section 11(a) above, MIKOHN shall have the option to extend said term for a period of up to one (1)
additional year upon payment of the following consideration to Employee:

               (1) If Employee is terminated without Cause or this Agreement expires without renewal, or
Employee terminates his employment pursuant to Sections 6(c) or 19, the sum of $300,000.00 payable
in 12 monthly installments; or

               (2) If Employee terminates this Agreement other than as permitted in Sections 6(c) or 19 or is
terminated by MIKOHN for Cause, the sum of $120,000.00 payable in 12 monthly installments.

     12. Rights to Inventions.

          a. Inventions Defined. “Inventions” means discoveries, concepts, and ideas, whether
patentable or not, relating to any present or contemplated activity of MIKOHN, including without
limitation devices, processes, methods, formulae, techniques, and any improvements to the
foregoing.

          b. Application. This Section 12 shall apply to all Inventions made or conceived by
Employee, whether or not during the hours of his employment or with the use of MIKOHN facilities,
materials, or personnel, either solely or jointly with others, during the Term of his employment by
MIKOHN. This Section 12 does not apply to any invention disclosed in writing to MIKOHN by Employee
prior to the execution of this Agreement.

          c. Assignment. Employee hereby assigns and agrees to assign to MIKOHN all of his
rights to Inventions described in (b) above and to all proprietary rights therein, based thereon or
related thereto, including without limitation applications for United States and foreign letters
patent and resulting letters patent.

          d. Reports. Employee shall inform MIKOHN promptly and fully of each Invention by a
written report, setting forth in detail the structures, procedures, and methodology employed and
the results achieved (“Notice of Invention”). A report shall also be submitted by Employee upon
completion of any study or research project

5

 

undertaken on MIKOHN’s behalf, whether or not in
Employee’s opinion a given study or project has resulted in an Invention.

          e. Patents. At MIKOHN’s request and expense, Employee shall execute such documents
and provide such assistance as may be deemed necessary by MIKOHN to apply for, defend or enforce
any United States and foreign letters patent based on or related to such Inventions.

     13. Remedies. Notwithstanding any other provision in this Agreement to the contrary,
Employee acknowledges and agrees that if Employee commits a material breach of the Covenant of
Confidentiality (Section 7), Covenant of Non-Disclosure (Section 8), Covenant of Non-Solicitation
(Section 9), Covenant of Cooperation (Section 10), Covenant Against Competition (Section 11), or
Rights to Inventions (Section 12), MIKOHN shall have the right to have the obligations of Employee
specifically enforced by any court having jurisdiction on the grounds that any such breach will
cause irreparable injury to MIKOHN and money damages will not provide an adequate remedy. Such
equitable remedies shall be in addition to any other remedies at law or equity, all of which
remedies shall be cumulative and not exclusive. Employee further acknowledges and agrees that the
obligations contained in Sections 7 through 12, of this Agreement are fair, do not unreasonably
restrict Employee’s future employment and business opportunities, and are commensurate with the
compensation arrangements set out in this Agreement.

     14. Survivability. Sections 7 through 13, of this Agreement shall survive termination
of the employment relationship and this Agreement.

     15. General Provisions.

          a. Arbitration. Any controversy involving the construction, application,
enforceability or breach of any of the terms, provisions, or conditions of this Agreement,
including without limitation claims for breach of contract, violation of public policy, breach of
implied covenant, intentional infliction of emotional distress or any other alleged claims which
are not settled by mutual agreement of the parties, shall be submitted to final and binding
arbitration in accordance with the rules of the American Arbitration Association. The cost of
arbitration shall be borne by the losing party. In consideration of each party’s agreement to
submit to arbitration any and all disputes that arise under this Agreement, each party agrees that
the arbitration provisions of this Agreement shall constitute his/its exclusive remedy and each
party expressly waives the right to pursue redress of any kind in any other forum. The parties
further agree that the arbitrator acting hereunder shall not be empowered to add to, subtract from,
delete or in any other way modify the terms of this Agreement. Notwithstanding the foregoing, any
party shall have the limited right to seek equitable relief in the form of a temporary restraining
order or preliminary injunction in a court of competent jurisdiction to protect itself from actual
or threatened irreparable injury resulting from an alleged breach of this Agreement pending a final
decision in arbitration.

          b. Authorization. MIKOHN and Employee each represent and warrant to the other that
he/it has the authority, power and right to deliver, execute and fully perform the terms of this
Agreement.

          c. Entire Agreement. Employee understands and acknowledges that this document
constitutes the entire agreement between Employee and MIKOHN with regard to Employee’s employment
by MIKOHN and Employee’s post-employment activities concerning MIKOHN. This Agreement supersedes
any and all other written and oral agreements between the parties with respect to the subject
matter hereof. Any and all prior agreements, promises, negotiations, or representations, either
written or oral, relating to the subject matter of this Agreement not expressly set forth in this
Agreement are of no force and effect. This Agreement may be altered, amended, or modified only in
writing signed by all of the parties hereto. Any oral representations or modifications concerning
this instrument shall be of no force and effect.

          d. Severability. If any term, provision, covenant, or condition of this Agreement is
held by a court or other tribunal of competent jurisdiction to be invalid, void, or unenforceable,
the remainder of such provisions and all of the remaining provisions hereof shall remain in full
force and effect to the fullest extent permitted by law and shall in no way be affected, impaired,
or invalidated as a result of such decision.

6

 

          e. Governing Law. Except to the extent that federal law may preempt Nevada law, this
Agreement and the rights and obligations hereunder shall be governed, construed and enforced in
accordance with the laws of the State of Nevada.

          f. Taxes. Except as otherwise specifically provided in this Agreement, all
compensation payable hereunder is gross and shall be subject to such withholding taxes and other
taxes as may be provided by law. Except as otherwise specifically provided in this Agreement,
Employee shall be responsible for the payment of all taxes attributable to the compensation
provided by this Agreement except for those taxes required by law to be paid or withheld by MIKOHN.

          g. Assignment. This Agreement shall be binding upon and inure to the benefit of the
successors and assigns of MIKOHN. Employee may not sell, transfer, assign, or pledge any of his
rights or interests pursuant to this Agreement.

          h. Waiver. Either party’s failure to enforce any provision or provisions of this
Agreement shall not in any way be construed as a waiver of any such provision or provisions, or
prevent that party thereafter from enforcing such provision or provisions and each and every other
provision of this Agreement.

          i. Captions. Titles and headings to sections in this Agreement are for the purpose of
reference only and shall in no way limit, define, or otherwise affect any provisions contained
therein.

          j. Breach — Right to Cure. A party shall be deemed in breach of this Agreement only
upon the failure to perform any obligation under this Agreement after receipt of written notice of
breach and failure to cure such breach within ten (10) days thereafter; provided, however, such
notice shall not be required where a breach or threatened breach would cause irreparable harm to
the other party and such other party may immediately seek equitable relief in a court of competent
jurisdiction to enjoin such breach.

     16. Acknowledgement. Employee acknowledges that he has been given a reasonable period
of time to study this Agreement before signing it. Employee certifies that he has fully read, has
received an explanation of, and completely understands the terms, nature, and effect of this
Agreement. Employee further acknowledges that he is executing this Agreement freely, knowingly,
and voluntarily and that Employee’s execution of this Agreement is not the result of any fraud,
duress, mistake, or undue influence whatsoever. In executing this Agreement, Employee does not
rely on any inducements, promises, or representations by MIKOHN other than the terms and conditions
of this Agreement.

     17. [Reserved].

     18. Indemnification For Employee Officers. MIKOHN will, to the maximum extent
permitted by law, defend, indemnify and hold harmless the Employee and the Employee’s heirs,
estate, executors and administrators against any costs, losses, claims, suits, proceedings, damages
or liabilities to which the Employee may become subject which arise out of, are based upon or
relate to the Employee’s employment by MIKOHN (and any predecessor company to MIKOHN), or the
Employee’s service as an officer or member of the Board of Directors of MIKOHN (or any predecessor
company of MIKOHN) or any Affiliate, including without limitation reimbursement for any legal or
other expenses reasonably incurred by the Employee in connection with investigation and defending
against any such costs, losses, claims, suits, proceedings, damages or liabilities.

MIKOHN may maintain directors and officers liability insurance in commercially reasonable amounts
(as reasonably determined by the Board), and, in the event such insurance is obtained, the Employee
shall be covered under such insurance to the same extent as other senior management employees (and
directors, with respect to the Employee’s role as a director, as may be applicable); provided,
however, that MIKOHN shall not be required to maintain such insurance coverage unless the Board
determines that it is obtainable at reasonable cost.

7

 

     19. Change in Control Provision.  Notwithstanding any Agreement provisions to the
contrary, for a period of twelve (12) months following a Change in Control, in the event of a
termination of Employee other than for Cause, or if the Employee resigns for “Good Reason” as that
term is defined in Section 6(c) above, Employee shall be entitled to receive a sum equal to three
times the Employee’s annualized Base Salary for the most recently completed calendar year payable
in a lump sum upon termination. At any point during the thirteenth month following a Change in
Control, Employee shall be entitled to terminate the Agreement and receive a sum equal to the
amount they would otherwise be entitled to pursuant to termination by MIKOHN other than for Cause
at the time of such election. In addition to the foregoing, upon a Change in Control and
separation of the Employee from MIKOHN, MIKOHN agrees to reimburse Employee for reasonable expenses
associated with outplacement employment activities for Employee. For the purposes of this
Agreement, the following definitions shall apply:

     (i) a “Change in Control” of MIKOHN means the occurrence, in a single transaction or in a
series of related transactions, of any one or more of the following events:

          a. Any Exchange Act Person becomes the Owner, directly or indirectly, of securities of MIKOHN
representing more than fifty percent (50%) of the combined voting power of MIKOHN’s then
outstanding securities other than by virtue of a merger, consolidation or similar transaction.
Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (a) on account of
the acquisition of securities of MIKOHN by an investor, any affiliate thereof or any other Exchange
Act Person from MIKOHN in a transaction or series of related transactions the primary purpose of
which is to obtain financing for MIKOHN through the issuance of equity securities or (b) solely
because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the
designated percentage threshold of the outstanding voting securities as a result of a repurchase or
other acquisition of voting securities by MIKOHN reducing the number of shares outstanding,
provided that if a Change in Control would occur (but for the operation of this sentence) as a
result of the acquisition of voting securities by MIKOHN, and after such share acquisition, the
Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase
or other acquisition had not occurred, increases the percentage of the then outstanding voting
securities Owned by the Subject Person over the designated percentage threshold, then a Change in
Control shall be deemed to occur;

          b. There is consummated a merger, consolidation or similar transaction involving (directly or
indirectly) MIKOHN and, immediately after the consummation of such merger, consolidation or similar
transaction, the stockholders of MIKOHN immediately prior thereto do not Own, directly or
indirectly, either (a) outstanding voting securities representing more than fifty percent (50%) of
the combined outstanding voting power of the surviving Entity in such merger, consolidation or
similar transaction or (b) more than fifty percent (50%) of the combined outstanding voting power
of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each
case in substantially the same proportions as their Ownership of the outstanding voting securities
of MIKOHN immediately prior to such transaction;

          c. The stockholders of MIKOHN approve or the Board approves a plan of complete dissolution or
liquidation of MIKOHN, or a complete dissolution or liquidation of MIKOHN shall otherwise occur;

          d. There is consummated a sale, lease, license or other disposition of all or substantially
all of the consolidated assets of MIKOHN and its subsidiaries, other than a sale, lease, license or
other disposition of all or substantially all of the consolidated assets of MIKOHN and its
subsidiaries to an Entity, more than fifty percent (50%) of the combined voting power of the voting
securities of which are Owned by stockholders of MIKOHN in substantially the same proportions as
their Ownership of the outstanding voting securities of MIKOHN immediately prior to such sale,
lease, license or other disposition; or

          e. Individuals who, on the date this Agreement is executed, are members of the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the members of the
Board; provided, however, that if the appointment or election (or nomination for election) of any
new Board member was approved or recommended by a majority vote of the members of the Incumbent
Board then still in office, such new

8

 

member
shall be considered as a member of the Incumbent Board.

     (ii) “Entity” means a corporation, partnership or other entity.

     (iii) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (iv) “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of
Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” shall not include
(A) MIKOHN or any subsidiary of MIKOHN, (B) any employee benefit plan of MIKOHN or any subsidiary
of MIKOHN or any trustee or other fiduciary holding securities under an employee benefit plan of
MIKOHN or any subsidiary of MIKOHN, (C) an underwriter temporarily holding securities pursuant to
an offering of such securities, or (D) an Entity Owned, directly or indirectly, by the stockholders
of MIKOHN in substantially the same proportions as their Ownership of stock of MIKOHN.

     (v) “Own,” “Owned,” “Owner,” “Ownership” — A person or Entity shall be deemed to “Own,” to
have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or
Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or
otherwise, has or shares voting power, which includes the power to vote or to direct the voting,
with respect to such securities.

     20. Parachute Payments. If any payment or benefit the Employee would receive from
MIKOHN pursuant to this Agreement or otherwise (“Payment”) would (i) constitute a “parachute
payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the
“Code”), and (ii) be subject to the excise tax imposed by Section 4999 of the Code (the “Excise
Tax”), then the Employee will receive an additional payment (the “Gross-up”) from MIKOHN such that
after taking into account all applicable federal, state and local employment taxes, income taxes,
the Excise Tax and all applicable taxes on the Gross-up (all computed at the highest applicable
marginal rate), results in the Employee’s receipt, on an after-tax basis, of the full amount of the
Payment. MIKOHN’s principal outside accounting firm or principal outside tax advisors, as selected
by MIKOHN and Employee, will make all determinations hereunder and shall provide its calculations,
together with detailed supporting documentation, to MIKOHN and the Employee within fifteen (15)
calendar days after the date on which the Employee’s right to a Payment is triggered (if requested
at that time by MIKOHN or Employee) or such other time as requested by MIKOHN or the Employee. The
accounting firm or tax advisors shall furnish MIKOHN and the Employee with an opinion reasonably
acceptable to the Employee regarding the application of the Excise Tax to such Payment. MIKOHN
shall be entitled to rely upon the accounting firm’s or tax advisors’ determinations, as
applicable, which shall be final, binding and conclusive on Employee and MIKOHN.

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

	 	 	 	 	 	 	 	 	 
	EMPLOYEE	 	 	 	MIKOHN GAMING CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Thomas M. Galanty
 

THOMAS M. GALANTY

	 	 	 	By:
	 	/s/ Michael F. Dreitzer
 

	 	 
	 

	 	 	 	Title:
	 	E.V.P. & General Counsel	 	 

9

 

EXHIBIT A

RELEASE AND WAIVER OF CLAIMS

     In consideration of the payments and other benefits set forth in Section 5(d)(4) and Section
6(a) of the Employment Agreement dated      , to which this form is attached, I, Thomas M.
Galanty, hereby furnish Progressive Gaming International Corporation (the “Company”),
with the following release and waiver (“Release and Waiver”).

     In exchange for the consideration provided to me by the Employment Agreement that I am not
otherwise entitled to receive, I hereby generally and completely release the Company and its
directors, officers, employees, shareholders, partners, agents, attorneys, predecessors,
successors, parent and subsidiary entities, insurers, Affiliates, and assigns from any and all
claims, liabilities and obligations, both known and unknown, that arise out of or are in any way
related to events, acts, conduct, or omissions occurring prior to my signing this Release and
Waiver. This general release includes, but is not limited to: (1) all claims arising out of or in
any way related to my employment with the Company or the termination of that employment; (2) all
claims related to my compensation or benefits from the Company, including, but not limited to,
salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits,
stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing;
(4) all tort claims, including, but not limited to, claims for fraud, defamation, emotional
distress, and discharge in violation of public policy; and (5) all federal, state, and local
statutory claims, including, but not limited to, claims for discrimination, harassment,
retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964
(as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination
in Employment Act of 1967 (as amended) (“ADEA”), and the California Fair Employment and Housing Act
(as amended).

     I also acknowledge that I have read and understand Section 1542 of the California Civil Code
which reads as follows: “A general release does not extend to claims which the 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.” I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any jurisdiction of similar
effect with respect to any claims I may have against the Company.

     I acknowledge that, among other rights, I am waiving and releasing any rights I may have under
ADEA, that this Release and Waiver is knowing and voluntary, and that the consideration given for
this Release and Waiver is in addition to anything of value to which I was already entitled as an
executive of the Company. If I am 40 years of age or older upon execution of this Release and
Waiver, I further acknowledge that I have been advised, as required by the Older Workers Benefit
Protection Act, that: (a) the release and waiver granted herein does not relate to claims under
the ADEA which may arise after this Release and Waiver is executed; (b) I have the right to consult
with an attorney prior to executing this Release and Waiver (although I may choose voluntarily not
to do so); and (c) I have twenty-one (21) days from the date of termination of my employment with
the Company in which to consider this Release and Waiver (although I may choose voluntarily to
execute this Release and Waiver earlier); (d) I have seven (7) days following the execution of this
Release and Waiver to revoke my consent to this Release and Waiver; and (e) this Release and Waiver
shall not be effective until the seven (7) day revocation period has expired.

     If I am less than 40 years of age upon execution of this Release and Waiver, I acknowledge
that I have the right to consult with an attorney prior to executing this Release and Waiver
(although I may choose voluntarily not to do so); and (c) I have five (5) days from the date of
termination of my employment with the Company in which to consider this Release and Waiver
(although I may choose voluntarily to execute this Release and Waiver earlier).

     This Release and Waiver constitutes the complete, final and exclusive embodiment of the entire
agreement between the Company and me with regard to the subject matter hereof. I am not relying on
any promise or representation by the Company that is not expressly stated herein. This Release and
Waiver may only be modified by a writing signed by both me and a duly authorized officer of the
Company.

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

 A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]