Document:

OPTION AGREEMENT WITH WBT ENTERPRISES, INC.

 Exhibit 10.1 
  
 OPTION AGREEMENT 
  
 This Option Agreement (this “Agreement”) made as of this 7th day of April, 2004 by and between PokerTek, LLC, a North Carolina limited liability company (“PokerTek”) and World Poker Tour, LLC, a Delaware limited liability company (“WPT”).

  
 WITNESSETH 
  
 WHEREAS, PokerTek has determined it needs to potentially raise $1,500,000
(the “Development Costs”) for development of a table permitting automated live poker games through the use of an electronic facsimile of chips and playing cards and usable during live tournaments (the “Table”); 
  
 WHEREAS, PokerTek has agreed to give WPT certain options (the
“Options”) as more fully described herein to purchase units (as defined in the Operating Agreement of PokerTek, dated as of the date hereof), subject to the terms and conditions hereof; and 
  
 WHEREAS, WPT desires to purchase such Options; 
  
 NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
  
 1. Terms and Conditions of Option. 
  
 1.1 First Option. PokerTek hereby grants WPT an option (the “First Option”) exercisable during the First Option Term (as
defined below) to purchase all, but not less than all, of 67,181.64 Units (the “First Optioned Securities”). The aggregate exercise price for the First Optioned Securities shall be $200,000.00 and shall be paid by certified check or wire
transfer to an account designated by PokerTek. The “First Option Term” shall mean the period beginning on the date hereof and ending on the first to occur of (a) the tenth (10th) day following the date on which WPT has received evidence, satisfactory to WPT in its reasonable discretion, of a working prototype of the Table; or (b)
April 15, 2009. 
  
 1.2 Second Option.
PokerTek hereby grants WPT an option (the “Second Option”) exercisable during the Second Option Term (as defined below) to purchase all, but not less than all, of 78,651.69 Units (the “Second Optioned Securities”). The aggregate
exercise price for the Second Optioned Securities shall be $200,000.00 and shall be paid by certified check or wire transfer to an account designated by PokerTek. The “Second Option Term” shall mean the period beginning on the date
following exercise of the First Option and ending on the first to occur of (a) the tenth (10th) day following the
date on which PokerTek provides evidence to WPT, satisfactory to WPT in its reasonable discretion, of a bona fide purchase order for the Table; or (b) April 15, 2009. 
  

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 1.3 Exercise of Options. In order to exercise either the First Option or the
Second Option, WPT must deliver to PokerTek, on or prior to the last day of the relevant Option Period, written notice of exercise of the applicable Option (the “Option Exercise Notice”). Upon receipt of the applicable Option Exercise
Notice, PokerTek must deliver evidence to WPT, reasonably satisfactory to WPT, that simultaneously with or prior to WPT’s delivery of the exercise price for the Optioned Securities, PokerTek has received or is receiving equity or debt
investments in PokerTek (the “Additional Investments”) that are equal, in the aggregate, to the exercise price being paid for the applicable Optioned Securities received by WPT multiplied by 2.333 (the “Pro Rata Evidence”). Once
WPT has received the Pro Rata Evidence, then WPT will pay PokerTek (a) the exercise price for the First Optioned Securities if the Option Exercise Notice is given for the exercise of the First Option; or (b) the exercise price for the Second
Optioned Securities if the Option Exercise Notice is given for the exercise of the Second Option. Nothing herein shall deemed to (i) require PokerTek to seek any Additional Investments; (ii) require any other Member of PokerTek to make any
Additional Investments; or (iii) impose any liability on PokerTek for the failure to obtain Additional Investments. Notwithstanding anything herein to the contrary, and except as may otherwise be required by law, if WPT decides to exercise either
the First Option and/or the Second Option, it may elect to contribute the exercise price therefore (payable in cash pursuant to Section 1.1 or 1.2, as applicable) either in the combination of debt and equity pursuant to which the investments subject
to the Pro Rata Evidence are being made or in such combination of debt and equity as the parties shall mutually agree. 
  
 1.4 License to Use Trademarks. In the event WPT elects to exercise the First Option, then WPT grants to PokerTek a royalty-free,
license to use the Licensed Property (as defined on Schedule 1 attached hereto and incorporated herein by reference) on the Table during the License Term (as defined below) in the Authorized Channels of Distribution (as defined below) in the License
Territory (as defined below) upon the following terms and conditions: 
  
 1.4.1 The use of the Licensed Property must at all times comply with the specifications set forth in the Style Guide attached hereto as Schedule 2 and incorporated herein by reference, as the same may be
modified by WPT from time to time. 
  
 1.4.2 No
Tables marked with or containing the Licensed Property, or materials advertising, marketing, promoting, displaying or describing any Tables marked with or containing the Licensed Property, shall be used, sold or distributed by PokerTek without
WPT’s prior written approval (which such approval shall not unreasonably be withheld). WPT shall approve or disapprove of any Table, or each piece of related artwork or marketing material in writing within thirty (30) days of receipt. After
samples of any Table marked with or containing the Licensed Property, related artwork or marketing material have been approved by WPT, PokerTek shall not change them without further written approval. Any such Table, related artwork or marketing
materials not so approved in writing shall be deemed unlicensed and shall not be manufactured, distributed, sold or used. If any changes or modifications are required to be made to any Table, related artwork or marketing materials submitted to WPT
for its approval, PokerTek agrees to make such changes or modifications. 
  

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 1.4.3 PokerTek warrants that it will provide a legally sufficient trademark notice by
causing the letters TM or the symbol ®, as
specified by WPT, to be imprinted, prominently, irremovably and legibly, directly after the trademark, each time each trademark identified in Schedule A is used on any Table and/or on any material advertising, marketing, promoting, displaying
or referencing the Tables including, without limitation, any packaging, wrapping and inserts bearing any reproduction of the Tables and/or the Licensed Property, together with the following statement: “World Poker Tour is a trademark of Word
Poker Tour, LLC used with permission. All rights reserved.” (The use of the letters TM or the symbol ® shall be as instructed in writing by Licensor). 
  
 1.4.4 PokerTek shall not use any trademark, service mark, trade name, logo, internet domain name or design which is the same or
substantially similar to the Licensed Property such as to constitute infringement of the Licensed Property under applicable law. PokerTek also agrees to notify WPT of any infringement or unauthorized use of the Licensed Property that comes to its
attention. 
  
 1.4.5 The license shall be
exclusive with respect to the use of the Licensed Property on tables featuring automated live poker games and live poker tournaments through the use of an electronic facsimile of chips and playing cards in the Licensed Territory during the License
Term, and WPT shall not, from and after the date hereof until the first to occur of the expiration of the First Option (if the First Option is not exercised by WPT) or the end of the License Term (if the First Option is exercised by WPT), grant any
other license in and to, or otherwise permit the use of, the Licensed Property on any tables featuring automated live poker games and live poker tournaments through the use an electronic facsimile of chips and playing cards other than
PokerTek’s Tables. Notwithstanding anything to the contrary contained in the Agreement, WPT specifically reserves the right to use itself, or to license third party(s) to use, the Licensed Property for any purpose including, but not limited to,
in connection with promotions, co-promotions, and commercial tie-ins for the World Poker Tour, Travel Channel (or other telecasting networks) and/or member casinos or event sponsors. 
  
 1.4.6 PokerTek shall not be entitled to sublicense any of its rights under this Agreement. In the event
PokerTek is not the manufacturer of the Tables, PokerTek shall, subject to the prior written approval of WPT, which approval shall not be unreasonably withheld, be entitled to use a third party manufacturer to manufacture the Tables, provided that
such manufacturer executes a letter in the form of Exhibit A attached hereto. 
  
 1.4.7 As used herein, “License Term” shall mean the period commencing on the date of exercise of the First Option and ending on
the 10th anniversary thereof. 
  

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 Notwithstanding the foregoing, WPT may terminate PokerTek’s license to use the Licensed Property at
any time if: 
  
 1.4.7.1 PokerTek breaches any
material term, representation, warranty, obligation or condition of this Agreement and fails to cure such breach within thirty (30) days after receipt of written notice of the same; 
  
 1.4.7.2 PokerTek fails to adhere with the Style Guide or to the Approval process herein and fails to cure
such breach within thirty (30) days after receipt of written notice of the same; or 
  
 1.4.7.3 PokerTek becomes the subject of: (i) a voluntary petition in bankruptcy or any voluntary proceeding relating to insolvency,
receivership, liquidation, or composition for the benefit of creditors; or (ii) an involuntary petition in bankruptcy or any involuntary proceeding relating to insolvency, receivership, liquidation, or composition for the benefit of creditors, and
such petition or proceeding is not dismissed within thirty (30) days of filing. 
  
 Upon the termination of its license to use the Licensed Property for any reason, PokerTek shall discontinue any use of the Licensed Property, and PokerTek shall not thereafter operate or conduct business under any
name or in any manner that would tend to give the impression to a reasonable observer that this Agreement is still in force, or that PokerTek has any right to use the Licensed Property. 
  
 1.4.8 As used herein, “Territory” shall mean the United States, its territories and possessions,
including military bases. During the Term, and from time to time, PokerTek may request, and WPT shall provide, an updated list of all jurisdictions in which WPT has received evidence of the registration of Licensor’s trademark interests in and
to the Licensed Property, and upon receipt of such list in writing from WPT, the Territory shall be expanded to include any identified jurisdictions not previously included in the Territory; provided that, WPT shall have no obligation to undertake
the registration of WPT’s trademark interests in any jurisdiction; provided that, WPT acknowledges that it is currently in the process of registering the Licensed Property in various classifications in various territories throughout the world
and that the intent is for the Territory to be expanded beyond the United States. PokerTek agrees to take all reasonable steps necessary to ensure that PokerTek’s customers do not redistribute the Tables outside of the Territory. 
  
 1.4.9 As used herein, “Authorized Channels of
Distribution” shall mean the lease, sale or distribution of the Tables to Casinos and other commercial poker/card rooms. In no event shall PokerTek lease, sell or distribute “in-home use” versions of the Table, or lease, sell or
distribute the Tables to the general public. 
  
 1.4.10 PokerTek agrees to obtain and maintain, at PokerTek’s sole cost and expense, errors and omissions insurance and a policy of insurance insuring against those risks customarily under comprehensive general liability
policies, including 

  

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without limitation, “product liability” and “completed operations” from a well-recognized insurance company applicable to any claims,
liabilities, damages, costs or expenses arising out of the production, publication, sale and/or dissemination of the Tables. The policies shall name WPT, its parents, subsidiaries, affiliates and divisions, and their respective directors, officers,
employees, agents and representatives (the “Licensor Entities”) as additional insureds. The insurance under such policy shall be primary without right of subrogation. Within thirty (30) days following the execution of this Agreement by
PokerTek, it shall provide certificates of insurance to WPT certifying that the Licensor Entities and any other entity specified by WPT have been added as additional insureds to each of the insurance policies set forth above. The policies shall
require that WPT receives at least thirty (30) days written notice of cancellation, amendment or endorsement thereof. Upon receipt of any such notice of cancellation, WPT shall have the right to purchase replacement insurance from an insurance
carrier of WPT’s choice and charge PokerTek for all costs thereof or terminate the Agreement unless PokerTek provides WPT with proof of having obtained replacement insurance within twenty-one (21) days from the date of such notification from
the insurance carrier. PokerTek agrees to pay all such costs immediately upon submission by WPT. Any claims covered by PokerTek’s insurance policies shall not be offset or reduced in any amount whatsoever by any other insurance which the
Licensor Entities may independently maintain. 
  
 1.4.11 PokerTek represents and warrants that it shall not during the License Term, design, manufacture, advertise, promote, distribute, sell or otherwise deal with any products or services identified with or related to companies in the
business of producing television programs covering poker or card gaming tournaments that are, in WPT’s opinion, competitive with World Poker Tour, which for the purposes of this Paragraph shall include, but not be limited to, the World Series
of Poker and Celebrity Poker. In the event PokerTek commences any dealing with such denominated products or services, whether directly or indirectly, or in the event that any substantial holder of the interest in any such companies in the business
of producing television programs covering poker or card gaming tournaments acquires or otherwise comes to hold any financial or equity interest in PokerTek, WPT shall have the right to terminate the license granted herein on not less than thirty
(30) days notice to PokerTek and PokerTek shall be deemed in default of this Agreement. 
  
 1.4.12 Except as expressly provided herein, WPT reserves all rights to the Licensed Property. Any and all use of the Licensed Property by
PokerTek shall inure to the benefit of WPT. PokerTek shall never challenge WPT’s ownership of or right to license, or the validity of, the Licensed Property or any application for registration thereof or any trademark registration thereof.
PokerTek shall never file any application for a registration for the Licensed Property, or any similar trademark or design mark, in any office or agency anywhere in the world. 
  

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 2. Preemptive Rights. 
  
 2.1 Issuance of Units. If PokerTek proposes to issue new Units (excluding any Units issuable
hereunder upon exercise or conversion of New Options, as defined below) to any Member of PokerTek or any other person or entity (a “Unit Buyer”), WPT (if then an accredited investor within the meaning of Rule 501(a) of Regulation D of the
Securities Act of 1933, as amended (the “Securities Act”)) shall have a preemptive right and option to make contributions (to the extent such contributions are required to be made in a form other than cash, such contributions shall be
valued at fair market value mutually agreed to between the parties) to PokerTek and obtain its pro rata share (as determined below) of the Units proposed to be sold on the same terms and conditions as offered to the Unit Buyer. 
  
 2.2 Issuance of New Options. If PokerTek proposes to
issue any other options or rights exercisable for or convertible into its Units (the “New Options”) to any Member of PokerTek or any other person or entity (a “New Option Buyer”), WPT (if then an accredited investor) shall have a
preemptive right and option to obtain its pro rata share (as determined below) of the New Options proposed to be sold on the same terms and conditions as offered to the New Option Buyer. 
  
 2.3 Determination of Pro Rata Share. The pro rata share of Units and/or New Options that WPT shall be
entitled to purchase hereunder shall be equal to a fraction, (i) the numerator of which is the number of Units then issuable upon exercise of all options then outstanding under this Agreement and (ii) the denominator of which is the number of Units
then outstanding plus the number of Units then issuable upon exercise of all options and rights to acquire Units (excluding the New Options). 
  
 2.4 Exercise of Preemptive Right. At least twenty (20) days prior to any issuance of Units or New Options by PokerTek to which the
preemptive rights in this Section 2 apply, PokerTek shall notify WPT of such proposed issuance and the number of Units and/or New Options which it may purchase pursuant to this Section 2 (the “Preemptive Rights Notice”). In order to
exercise its preemptive right, WPT must notify PokerTek in writing (within ten (10) days following WPT’s receipt of the Preemptive Rights Notice) of its exercise of such preemptive right. Such notice from WPT shall state the number of Units
and/or New Options which it elects to purchase (which number cannot exceed the number of Units and/or Options it is entitled to purchase under this Section 2) and shall be accompanied by the purchase price, payable on the same terms and conditions
as offered to the Unit Buyer, with such other consideration (if other than cash, to be valued at fair market value mutually agreed to between the parties) as the parties shall mutually agree, for such Units and/or New Options. 
  
 3. Representations and Warranties of PokerTek. PokerTek represents and
warrants to WPT on the date hereof as follows: 
  
 3.1 Title to the Table. PokerTek has good and marketable title to the Table and all intellectual property required to operate the Table in the manner contemplated, free and clear of any mortgages, liens, security interests, pledges
or rights of any other parties. 
  

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 3.2 PokerTek. PokerTek is a limited liability company duly organized and validly
existing and in good standing under the laws of the State of North Carolina. PokerTek has full power and authority under the North Carolina Limited Liability Company Act (the “Act”) and its Operating Agreement to convey the Options and to
consummate the transactions provided for by this Agreement, and this Agreement has been duly and validly executed and delivered by PokerTek and constitutes a valid and binding obligation of PokerTek enforceable against PokerTek in accordance with
its terms. 
  
 3.3 Use of Table. PokerTek
has the right and authority to use the Table in the manner presently conducted and as contemplated, and has not received notice that such use conflicts with, infringes upon or violates any rights of any other person, firm or corporation. 

 
 3.4 Litigation. There are no claims, actions,
suits, proceedings or investigations (whether or not purportedly on behalf or PokerTek) pending or threatened against or affecting PokerTek or the Table, at law or in equity or before or by any federal, state, municipal or other governmental
department, commission, board, agency or instrumentality, domestic or foreign, nor has any such action, suit, proceeding or investigation been pending during the 12-month period preceding the date hereof; and PokerTek is not operating under or
subject to, or in default with respect to, any order, writ, injunction or decree of any court or federal, state, municipal or other governmental department, commission, board, agency or instrumentality, domestic or foreign. 
  
 3.5 Compliance with Laws. PokerTek has complied with,
and PokerTek’s use of the Table complies with, all applicable laws, regulations and orders. The present uses by PokerTek of the Table do not violate any such laws, regulations and orders. 
  
 3.6 No Conflict. The execution of this Agreement and
the consummation of the transactions contemplated hereby do not and will not (a) constitute a breach or default under any agreement or instrument to which PokerTek is a party, or (b) violate any order, writ, injunction or decree of any court,
administrative agency or governmental body applicable to PokerTek, or (c) conflict with or result in the breach of the terms, conditions or provision of the Articles of Organization or Operating Agreement of PokerTek. PokerTek has no knowledge of
any infringement of any patents or copyrights caused by the manufacture or use of the Table and the intellectual property related thereto. 
  
 3.7 Brokers. No finder, broker, agent or other intermediary has acted for or on behalf of PokerTek in connection with the
negotiation or consummation of this Agreement or the transactions contemplated thereby. 
  
 4. Covenants of PokerTek. PokerTek covenants and agrees with WPT that PokerTek has reserved, and will reserve during the applicable Option Terms, a sufficient number of its Units to permit the exercise in full
of such Options. 
  
 5. Due Diligence Forms and Background
Checks. PokerTek, its officers and directors will cooperate with WPT and complete any reasonably required due diligence forms and use best efforts to resolve any issues arising therefrom. 
  

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 6. Indemnification. PokerTek agrees to indemnify and hold WPT harmless against any and all claims,
liabilities and obligations, including any reasonable expense incurred in defending such matters which may arise out of a breach by PokerTek of any of the representations or covenants set forth in this Agreement. WPT’s failure to notify
PokerTek of ay claim, liability or obligation which PokerTek may have pursuant to its indemnification obligations hereunder shall not relieve PokerTek from any liability which it may have to WPT unless, and only to the extent that, such failure
results in PokerTek’s forfeiture of substantive rights or defenses or otherwise materially prejudices PokerTek’s right to defend such action. 
  
 7. Procedure for Indemnification with Respect to Third-Party Claims. In the event WPT becomes involved in any legal, governmental or administrative
proceedings which may result in WPT making indemnification claims hereunder, WPT shall notify PokerTek in writing within ten (10) business days of WPT’s receiving notice of such proceeding and in full detail of the filing, and the nature of
such proceeding. PokerTek may, at its option, defend any such proceeding if the proceeding would give rise to an indemnification obligation hereunder. If PokerTek elects to defend in any such proceeding, it shall have full control over the conduct
of such proceeding, although WPT shall have the right to retain legal counsel at its own expense and shall have the right to approve any settlement of any dispute giving rise to such proceeding, such approval not to be unreasonably withheld.

  
 8. Condition to Exercise of Option. Upon the request of
WPT, prior to the exercise of any Option by WPT, the Manager of PokerTek shall provide WPT with a certificate, in a form reasonably satisfactory to WPT, that PokerTek’s representations and warranties contained in Section 2 hereof are true and
accurate in all material respects at the time of such option exercise. If WPT requests such certificate, WPT’s obligation to pay for any Option shall be contingent upon timely receipt of such certificate. 
  
 9. Further Assurances. PokerTek covenants and agrees to reasonably
cooperate with WPT whereby WPT may enjoy to the fullest extent the right, title and interest to be conveyed in the event WPT exercises the Options. 
  
 10. Transfer Restrictions. WPT acknowledges and agrees that it may not transfer this Option or the Units issuable upon exercise of the Option,
except in compliance with federal and state securities laws and PokerTek’s Operating Agreement. As a condition precedent to any such transfer, WPT may be required, at the option of PokerTek, to supply an opinion of counsel reasonably
satisfactory to PokerTek, that such transfer is exempt from the registration provisions of the Securities Act, and state securities laws, or has been registered for sale in compliance with such laws. Any transferee shall, as a condition precedent to
such transfer, agree in writing to enter into the Operating Agreement of PokerTek, as the same may be hereinafter amended, upon its exercise of the options provided for herein. 
  
 11. [intentionally omitted] 
  
 12. Notice Addresses. Except as may be otherwise provided herein, any notice or other communication or delivery required or permitted hereunder
shall (i) be in writing and shall be delivered personally, by certified mail (postage prepaid), by a nationally recognized overnight courier 

  

 8 

 
service, or by electronic mail or facsimile transmission; and (ii) and shall be deemed given when so delivered personally, if mailed, three (3) days after
the date of deposit in the United States mails, when delivered by overnight courier service, or, if transmitted electronically or by facsimile, when received by the intended recipient and acknowledged to the sender, as follows: 
  
 If to PokerTek: 
  
 PokerTek, LLC 
 c/o National Card Club Corporation 
 6207 Glynmoor Lakes Drive 
 Charlotte, North Carolina 28277 
 Attention: Gehrig White, President 
 email: 
  
 With a
copy to: 
  
 Womble Carlyle Sandridge & Rice,
PLLC 
 One Wachovia Center, Suite 3500 
 301 South College Street 
 Charlotte, North Carolina 28202 
 Attention: Todd C. Taylor, Esq. 
 email: ttaylor@wcsr.com 
  
 If to WPT: 
  
 World Poker Tour, LLC 
 1041 North Formosa Avenue 
 Formosa Building 
 Suite 99 
 West Hollywood, California 90046 
 email: tcope@lakesentertainment.com 
  
 With a copy to: 
  
 Maslon Edelman Borman & Brand 
 3300 Norwest Center 
 Minneapolis, MN 55402 
 Attention: Terri Krivosha 
 email: terri.krivosha@maslon.com 
  
 13. Miscellaneous. 
  
 13.1 The terms, covenants and provisions of this Agreement shall inure to the benefit of the parties, their successors and assigns, and
shall be binding on the parties and 

  

 9 

 
their respective successors and assigns. WPT may not assign its rights under this Agreement without written consent from PokerTek. PokerTek may not assign
its rights under this agreement without written consent from WPT. 
  
 13.2 This Agreement contains the entire understanding of the parties regarding its subject matter, and supersedes all prior negotiations, understandings and agreements of the parties with respect thereto. 

 
 13.3 The express terms of this Agreement shall control
and supersede any course of performance and/or customary practice inconsistent with such terms. Any agreement between the parties hereafter made shall not change or modify this Agreement unless in writing and signed by the party against whom
enforcement of such change or modification is sought. 
  
 13.4 The provisions of this Agreement are independent of and separable from each other, and no provisions shall be affected or rendered invalid or unenforceable by the invalidity or inability to enforce any other provisions. 
  
 13.5 No failure or delay by any party to this Agreement to
exercise any right, remedy, power or privilege under this Agreement shall be a waiver thereof; nor shall any single or partial exercise of the same or of any other right, remedy, power or privilege with respect to any occurrence be construed as a
wavier of any such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
  
 13.6 No provision of this Agreement shall be interpreted for
or against any party to this Agreement because that party or that party=s legal representative or counsel drafted such provisions. 
  
 13.7 Any disputes concerning this Agreement shall be resolved by agreement of the parties or by binding arbitration according to the rules
of the American Arbitration Association. In any dispute, the parties agree to hold any hearings relative thereto in Charlotte, North Carolina. Notwithstanding the foregoing, each of the parties reserves the right to file with a court of competent
jurisdiction a suit for equitable relief of any sort, including without limitation an application for temporary or preliminary injunctive relief, writ of attachment, writ of possession, temporary protective order, reformation, rescission, specific
performance and/or appointment of a receiver, on the grounds that the arbitration award to which the applicant may be entitled may be rendered ineffectual in the absence of such relief, or in the event that monetary damages are insufficient to make
the damaged party whole. 
  
 13.8 In any
litigation or arbitration arising out of this Agreement, the prevailing party to this Agreement shall be entitled to recover all costs incurred, including reasonable attorney’s fees. 
  

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 13.9 This agreement shall be governed by the laws of the State of Delaware without regard
to its conflicts of law principles. 
  
 13.10
This agreement may be executed in one or more counterparts, each of which shall be deemed an original. 
  
 [Signature page follows.] 
  

 11 

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

  

			
	PokerTek, LLC,
	
	a North Carolina limited liability company
		
	By:	 	National Card Club Corporation,
	 	 	its Manager
		
	By:	 	 /s/ Gehrig White

	Name:	 	Gehrig White
	Title:	 	President
	
	WORLD POKER TOUR, LLC
		
	By:	 	 /s/ Lyle Berman

	Name:	 	Lyle Berman
	Title:	 	CEO

  

 12AMENDMENT TO OPTION AGREEMENT

 Exhibit 10.2 
  
 AMENDMENT TO OPTION AGREEMENT 
  

This Amendment to Option Agreement is made as of this 10th day of June, 2004 by and between PokerTek, LLC, a North Carolina limited liability company
(“PokerTek”) and World Poker Tour, LLC, a Delaware limited liability company (“WPT”). 
  
 WHEREAS, the parties hereto entered into an Option Agreement dated as of April 7, 2004 (the “Option Agreement”) pursuant to which WPT was
granted two options to purchase an aggregate of 145,833.33 units of membership interest in PokerTek equal to fourteen percent (14%) of the outstanding interests of PokerTek. 
  
 WHEREAS, as a result of a change in business strategy, PokerTek has determined to offer WPT the option to exercise the First
Option and the Second Option as of the date hereof pursuant to the terms and conditions hereof; and 
  
 WHEREAS, WPT desires to exercise the First Option and the Second Option as of the date hereof pursuant to the terms and conditions hereof. 
  
 NOW THERFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledge, the parties hereby agree as follows: 
  

	 	1.	Capitalized Terms. Capitalized terms not defined herein shall have the meanings set forth in the Option Agreement. 

  

	 	2.	Options. Sections 1.1, 1.2 and 1.3 of the Option Agreement are deleted in there entirety and the following is hereby substituted in lieu thereof: 

  
 “1.1 Options. WPT shall be deemed to have exercised the First
Option and the Second Option by loaning to the Company (the “Loan”) an aggregate amount equal to $185,090 (the “Loan Proceeds”) pursuant to a promissory note (the “Promissory Note”) substantially in
the form attached hereto as Exhibit A. Without limiting the foregoing, WPT shall be deemed to have exercised the First Option and the Second Option as of the date of the Promissory Note for all purposes under Section 1.4 hereof and the
License Term shall commence on the date of the Promissory Note. In further consideration of the Loan by WPT, WPT is receiving 145,833.33 units of membership interest in the Company pursuant to a Securities Purchase Agreement in the form attached
hereto as Exhibit B. Upon payment of the Loan Proceeds there are no additional requirements of WPT to loan or invest additional money into PokerTek. 
  
 1.2 [intentionally left blank] 
  
 1.3 [intentionally left blank].” 
  

	 	3.	 Representation and Warranty Regarding Loans by Founders to Company. Lou White, James Crawford and Lee Lomax (collectively, the “Founders”)
have loaned the Company (or to National Card Club Corp. which were subsequently 

	 	 
transferred to the Company) an aggregate amount equal to $140,360.04 as set forth on the Company’s financial statements, dated April 30, 2004, attached
hereto as Exhibit C (the “April Financial Statements”). The Company is in the process of having an audit prepared by Henderson, Story and Company, PA or another reasonably acceptable certified public accounting firm(the
“Audit”) and such Audit will contain no material differences from the April Financial Statements including the aggregate amount loaned by the Founders to the Company as of such date. 

  

	 	4.	Counterparts. This amendment may be executed in one or more counterparts, each of which shall be deemed an original. 

  

	 	5.	No Other Changes. Except as otherwise set forth herein no other changes, amendments or modifications are made to the Option Agreement. 

  
 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the
date and year above written. 
  

					
	 POKERTEK, LLC

		
	 By:
	 	National Card Club Corporation
			
	 	 	By:	 	 /s/ Gehrig White

	 	 	Name:	 	Gehrig White
	 	 	Title:	 	President
	
	 WORLD POKER TOUR, LLC

		
	 By:
	 	 /s/ Lyle Berman

	 Name:
	 	Lyle Berman
	 Title:
	 	Chief Executive Officer

  

 2 

 EXHIBIT A TO OPTION AGREEMENT 
  
 FORM OF 
  
 PROMISSORY NOTE 
  

			
	$185,090	  	Minneapolis, MN
	 	  	June 10, 2004

  
 FOR VALUE
RECEIVED, PokerTek, LLC, a North Carolina limited liability company with its principal executive office located at 6207 Glynmoor Lakes Drive, Charlotte, North Carolina 28277 (“Maker”), hereby promises to pay to the order of
World Poker Tour, LLC, a Delaware limited liability company with its principal executive office located at 1041 North Formosa Avenue, Formosa Building, Suite 99, West Hollywood, California 90046 (“Holder”), in lawful money of the
United States of America, the principal sum of One Hundred Eighty-Five Thousand and Ninety Dollars ($185,090) (the “Principal Sum”) with interest thereon at a rate per annum equal to the lowest Applicable Federal Rate, compounded
annually, on the unpaid balance of the Principal Sum. Said principal and interest shall be due on the earlier to occur of the fifth anniversary of the date of this Note, or upon an Event of Default, as defined below. 
  
 This Note is the Note referenced in Section 1.1 of that certain Amendment to
Option Agreement dated as of the date hereof, to which Maker and Holder are parties (the “Amended Option Agreement”) and Article IB of that certain Securities Purchase Agreement dated as of the date hereof, to which Maker and Holder
are parties (the “Securities Purchase Agreement”). 
  
 Payment. This Note may be prepaid in whole or in part at any time without payment of any prepayment penalty or fee. All payments and prepayments shall, at the option of the Holder, be applied first to any costs of collection, second
to the payment of any interest then outstanding on the Note and third, to the payment of the principal balance of this Note. 
  
 Maker shall remain liable for the payment of this Note, including any charges payable hereunder, notwithstanding any extension or extensions of time for
payment or any indulgence of any kind that Holder may grant to Maker. 
  
 If any payment under this Note shall become due on a Saturday, Sunday, or public holiday under the laws of the State of Delaware, such payment shall be made on the next succeeding business day. 
  
 No act or omission or commission of Holder, including specifically any
failure to exercise any right, remedy or recourse, shall be deemed a waiver or release of same, such waiver or release to be effective only as set forth in a written document executed by Holder and then only to the extent specifically recited
therein. A waiver or release with reference to one event shall not be construed as continuing as a bar to or as a waiver or release of any subsequent right, remedy or recourse as to a subsequent event. 
  
 Maker hereby waives presentment for payment, notice of dishonor, protest and
notice of protest and, in the event of default hereunder, Maker agrees to be liable for and to pay all costs of collection, including reasonable attorneys’ fees. 
  

 3 

 The payments due to Holder hereunder shall not be subject to any right of setoff claimed by Maker or any
person assuming the obligations of Maker hereunder, which right of setoff is expressly waived. 
  
 Use of Proceeds. The Company covenants and agrees that it shall use the Principal Sum as follows: (i) until such time as the Company has received a bona fide purchase order for at least one of the
Company’s automatic poker tables (the “Table” and the period of time until receipt of such purchase order shall be referred to herein as “Phase I”), the proceeds shall be used for development and testing of the Table and
shall not be used to pay salaries or other amounts to any individual or entity (or any shareholder of such entity) who holds an equity interest in the Company (the “Insiders”); and (ii) except as otherwise set forth herein, after the
conclusion of Phase I, the proceeds may be used for any legitimate business purpose including payments to Insiders. To the extent the Company makes any payments of principal and interest on amounts owed by the Company to Insiders in connection with
obligations assumed by the Company from National Card Club Corporation (the “Assumed Debts”), the Company shall not make payments with respect to the Assumed Debts in excess of the cash amounts invested in or loaned to the Company after
the date hereof by persons other than Buyer, unless Buyer consents in writing to the making of such payments by the Company. 
  
 Events of Default. The occurrence of any of the following events will be deemed an “Event of Default” under this Note: (a) the
nonpayment, when due, of any principal, interest or other amount payable under this Note, or the failure of Maker to observe or perform any term hereof; or (b) Maker becomes insolvent or unable to pay debts as they mature, a petition for bankruptcy
is filed voluntarily or involuntarily against Maker or Maker makes an assignment for the benefit of creditors, or any proceeding is instituted by Maker or against Maker by a party unaffiliated with Holder alleging that Maker is insolvent or unable
to pay debts as they mature. 
  
 Upon the occurrence of an Event
of Default: (a) Holder shall have the right, at Holder’s option and without demand or notice, to declare all or any part of the Note immediately due and payable; provided, however, that upon the occurrence of an Event of Default
described in (b) above the Note shall automatically become due and payable immediately without demand of any kind; and (b) Maker agrees to be liable for and to pay all costs and expenses of Holder, including reasonable attorneys’ fees, in the
collection of any of the Note or the enforcement of any of the Holder’s rights. 
  
 Invalidity of Particular Provisions. Maker and Holder agree that the unenforceability or invalidity of any provision or provisions of this Note shall not render any other provision or provisions herein
contained unenforceable or invalid. 
  
 Successors or
Assigns. Maker and Holder agree that all of the terms of this Note shall be binding on their respective successors and assigns, and that the term “Maker” and the term “Holder” as used herein shall be deemed to include, for
all purposes, the respective successors and assigns, provided, however, that Maker may not assign or delegate its rights or obligations under this Note without the prior written consent of Holder. 
  

 4 

 Governing Law. The form and validity of this Note shall be governed by the laws of the State of
Delaware applicable to contracts made and to be performed wholly within Minnesota, without giving effect to conflicts of laws principles. 
  
 Captions. Captions in this Agreement are for convenience only and do not constitute a part of this Agreement. 
  
 IN WITNESS WHEREOF, Maker has caused this Note to be signed on the day
and year first above written. 
  

			
	MAKER:
	
	 POKERTEK, LLC

		
	 By:
	 	National Card Club Corporation
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 5 

 EXHIBIT B 
  

FORM OF SECURITIES PURCHASE AGREEMENT 
  
 THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of June 10, 2004, is entered into by and between PokerTek, LLC, a North Carolina
limited liability company with its principal executive office located at 6207 Glynmoor Lakes Drive, Charlotte, North Carolina 28277 (the “Company”), and World Poker Tour, LLC, a Delaware limited liability company with its principal
executive office located at 1041 North Formosa Avenue, Formosa Building, Suite 99, West Hollywood, California 90046 (“Buyer”). 
  
 INTRODUCTION 
  
 A. The Company has authorized the sale of units of the Company’ membership interests (the “Units”) to Buyer pursuant to a transaction,
which is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). 
  
 B. Buyer desires to purchase from the Company, and the Company desires to issue and sell to Buyer, the Units upon the terms and subject to the conditions
of this Agreement. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties hereto, intending to be legally bound, hereby agree as follows: 
  
 ARTICLE I 
 ISSUANCE OF SECURITIES 
  
 A. Transaction. In exchange for the consideration set forth below,
Buyer hereby purchases from the Company, and the Company hereby issues and sells to Buyer, in a transaction which is intended to be exempt from the registration and prospectus delivery requirements of the Securities Act, 145,833.33 Units.

  
 B. Promissory Note. In exchange for the Units, Buyer
has loaned to the Company, effective as of the date hereof, an amount equal to $185,090 (the “Loan Proceeds”) pursuant to a promissory note substantially in the form attached hereto as Exhibit A. 
  
 ARTICLE II 
 BUYER’S REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 Buyer represents and warrants to and covenants and agrees with the Company as follows: 
  
 A. Buyer is purchasing the Units for its own account, for investment purposes only, and not with a view towards or in
connection with the public sale or distribution thereof in violation of the Securities Act. 
  

 6 

 B. Buyer is (i) an “accredited investor” within the meaning of Rule 501 of Regulation D under
the Securities Act; (ii) experienced in making investments of the kind contemplated by this Agreement; (iii) capable, by reason of its business and financial experience, of evaluating the relative merits and risks of an investment in the Units, the
Options and the Units to be issued upon exercise of the Option (the “Securities”); and (iv) able to afford the loss of its investment in the Securities. Buyer represents that it is a company in which all the equity owners are accredited
investors within the meaning of Rule 501 of Regulation D under the Securities Act. 
  
 C. Buyer understands that the Securities are being offered and sold by the Company in reliance on an exemption from the registration requirements of the Securities Act and equivalent state securities and “blue
sky” laws, and that the Company is relying upon the accuracy of, and Buyer’s compliance with, Buyer’s representations, warranties and covenants set forth in this Agreement and the Option Agreement to determine the availability of such
exemption and the eligibility of Buyer to purchase the Securities. 
  
 D. Buyer understands that the Securities have not been approved or disapproved by the Securities and Exchange Commission (the “Commission”) or any state securities commission. 
  
 E. Buyer has received, carefully reviewed and is familiar with the financial
statements (attached hereto as Exhibit B), risk factor statement and other materials of the Company and any attachments, modifications or supplements thereto attached as Exhibit C hereto (the “Company Materials”). 

 
 F. Buyer has been given access to full and complete information regarding
the Company (including the opportunity to meet with Company officers and review all documents as the undersigned may have requested in writing); has utilized such access to Buyer’s satisfaction for the purpose of obtaining information in
addition to, or verifying information included in, the Company Materials and any attachments or supplements thereto; and has attended or been given reasonable opportunity to attend a meeting with representatives of the Company for the purpose of
asking questions of, and receiving answers from, such representatives concerning the terms and conditions of the purchase of the Securities and to obtain any additional information, to the extent reasonably available, necessary to verify the
accuracy of information provided in the Company Materials. 
  
 G.
Buyer realizes that a purchase of the Securities represents a speculative investment involving a high degree of risk including, but not limited to, the risks described in the Company Materials. Buyer acknowledges that the Company is a new venture
with no operations history and that there can be no guarantee of the Company’s success. 
  
 H. This Agreement has been duly and validly authorized, executed and delivered by Buyer, and is a valid and binding agreement enforceable against Buyer in accordance with its terms. 
  
 I. Buyer understands that there will be no market for the Securities, that
there are significant restrictions on the transferability of the Securities and that, for these and other reasons, Buyer may be required to hold the Securities for an indefinite period of time. 
  

 7 

 J. Buyer represents and agrees that if Buyer should later desire to dispose of or transfer any of the
Securities it shall not do so without first obtaining, if requested by the Company, (i) an opinion of counsel reasonably satisfactory to the Company that such proposed disposition or transfer may be made lawfully without the registration of such
Securities pursuant to the Securities Act and applicable state laws. 
  
 K. Buyer acknowledges and agrees that any equity ownership interest it acquires in the Company shall be subject to the Company’s Operating Agreement. 
  
 ARTICLE III 
 COMPANY’S REPRESENTATIONS AND WARRANTIES 
  
 The Company represents and warrants to Buyer that: 
  
 A. Capitalization. As of June 10, 2004, the Company’s authorized capital consists of 1,000,000 Units, of which 854,166.67 Units are issued and outstanding. All of the issued and outstanding Units (i) have been duly authorized
and validly issued and are fully paid and nonassessable, and (ii) have been issued in compliance with applicable law. National Card Club Corporation was the sole holder of all of the Company’s membership interests since its formation on March
19, 2004 until the issuance of 34,166.67 Units to Buyer in May, 2004 and other than Buyer no other person or entity owns any other equity interest or a right or option to purchase any equity interest in the Company. The Company has no obligation to
redeem any outstanding membership interests. 
  
 B.
Organization. The Company is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of North Carolina. 
  
 C. Authority; Validity and Enforceability. The Company has the requisite power and authority under the North Carolina
Limited Liability Company Act (the “Act”) and its Operating Agreement to enter into the Documents (as defined below). The Company’s execution, delivery and performance of the Documents, and the Company’s consummation of the
transactions contemplated thereby have been duly authorized by all necessary action under the Act and its Operating Agreement on the part of the Company. Each of the Documents has been duly and validly executed and delivered by the Company and each
Document constitutes a valid and binding obligation of the Company, enforceable against it in accordance with its terms. The Securities have been duly and validly authorized for issuance by the Company. For all purposes of this Agreement, the term
“Documents” means (i) this Agreement; and (ii) the Option Agreement. 
  
 D. Loans by Founders to Company. Lou White, James Crawford and Lee Lomax (collectively, the “Founders”) have loaned the Company (or to National Card Club Corp. which were subsequently
transferred to the Company) an aggregate amount equal to $140,360.04 as set forth on the Company’s financial statements, dated April 30, 2004, attached hereto as Exhibit D (the “April Financial Statements”). The Company
is in the process of having an audit prepared by Henderson, Story and Company, PA or another reasonably acceptable certified public accounting firm (the “Audit”) and such Audit will contain no material differences from the April
Financial Statements including the aggregate amount loaned by the Founders to the Company as of such date. 
  

 8 

 ARTICLE IV 
 REGISTRATION STATUS OF SECURITIES 
  
 A. Registration Status of Securities. The Securities have not been registered under the Securities Act or under applicable state securities acts on the grounds that the Securities are being issued in a
transaction (i) involving a limited group of knowledgeable investors fully familiar with the affairs and proposed operations of the Company; and (ii) not involving a public offering and that, consequently, such transaction is exempt from
registration under the Securities Act and the state securities acts. The Company is entitled to rely on Buyer’s representations herein as a basis for the exemption from registration. 
  
 B. Compliance with Transfer Requirements. The Securities may not be sold, transferred or otherwise disposed of except
pursuant to an effective registration statement or appropriate exemption from registration under applicable state law and, as a result, Buyer must comply with the transfer requirements set forth in Article II.I above and may be required to hold the
Securities for an indefinite period of time. 
  
 C. Operating
Agreement. In addition the transfer restrictions imposed on the Securities by the Securities Act and state securities laws, Buyer acknowledges and agrees that the Securities may be subject to transfer restrictions under the Company’s
Operating Agreement. 
  
 ARTICLE V 
 MISCELLANEOUS 
  
 A. This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so
executed and delivered shall be an original, but all which counterparts when so executed shall together constitute one and the same instrument. A facsimile or digital transmission of this signed Agreement shall be legal and binding on all parties
hereto. 
  
 B. The headings of this Agreement are for convenience
of reference and shall not form part of, or affect the interpretation of, this Agreement. 
  
 C. In the event any one or more of the provisions contained in any of the Documents should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining
provisions contained herein or therein shall not in any way be affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal, or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
  
 D. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Delaware, without regard to the conflicts-of-law
principles of such state. 
  

 9 

 E. Each party hereby waives to the fullest extent permitted by applicable law, any right it may have to a
trial by jury with respect to any litigation directly or indirectly arising out of, under or in connection with this Agreement or any transaction contemplated hereby. 
  
 F. The rights and remedies of any party based upon, arising out of or otherwise in respect of any inaccuracy in or breach of
any representation, warranty, covenant or agreement contained in this Agreement or the Documents are cumulative and are not exclusive of any rights or remedies that any party may have in law or in equity. 
  
 G. This Agreement and the other Documents constitute the entire agreement
among the parties pertaining to the subject matter hereof and supersede all prior agreements, understandings, negotiations, and discussions, whether oral or written, of the parties. No supplement, modification, or waiver of this Agreement shall be
binding unless executed in writing by all parties. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a
continuing waiver unless otherwise expressly provided in writing. 
  
 H. Except as may be otherwise provided herein, any notice or other communication or delivery required or permitted hereunder shall (i) be in writing and shall be delivered personally, by certified mail (postage prepaid), by a nationally
recognized overnight courier service, or by electronic mail or facsimile transmission; and (ii) and shall be deemed given when so delivered personally, if mailed, three (3) days after the date of deposit in the United States mails, when delivered by
overnight courier service, or, if transmitted electronically or by facsimile, when received by the intended recipient and acknowledged to the sender, as follows: 
  

			
	 If to the Company:
	  	To the address indicated in the preamble of this Agreement
		
	 If to Buyer:
	  	To the address indicated in the preamble of this Agreement
		
	 With a copy to:
	  	Maslon, Edelman, Borman & Brand, LLP
	 	  	3300 Wells Fargo Center
	 	  	90 South Seventh Street
	 	  	Minneapolis, Minnesota 55402
	 	  	Attention: Terri Krivosha, Esq.
	 	  	Telephone: (612) 672-8340
	 	  	Facsimile: (612) 642-8340

  
 The Company or Buyer
may change the foregoing address by notice given pursuant to this Article V.H. 
  
 I. Each of the Company and Buyer agrees to keep confidential and not to disclose to, or use for the benefit of, any third party the terms of this Agreement or any other information which at any time is communicated by
the other party as being confidential without the prior written approval of the other party. 
  

 10 

 J. This Agreement shall not be assignable by any of the parties hereto without the prior written consent
of the other party, and any attempted assignment contrary to the provisions hereby shall be null and void. 
  
 K. Each party shall bear its own fees and expenses in connection with the preparation, negotiation, execution and performance of this Agreement.

  
 [Remainder of page intentionally left blank] 

 

 11 

 IN WITNESS WHEREOF, the undersigned have set their hands to this Securities Purchase Agreement as of the
date first set forth above. 
  

					
	COMPANY:
	
	 POKERTEK, LLC:

		
	 By:
	 	National Card Club Corporation, Manager
			
	 	 	By:	 	  

	 	 	 	 	Gehrig White, President
	
	BUYER:
	
	 WORLD POKER TOUR, LLC

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 Signature Page
-Securities Purchase Agreement 
  
  

 12

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