Document:

WARRANT
                          REGISTRATION RIGHTS AGREEMENT

                              AUTOTOTE CORPORATION

          Warrants to Purchase 2,900,000 Shares of Class A Common Stock

                          Dated as of September 6, 2000

                          DONALDSON, LUFKIN & JENRETTE
                             SECURITIES CORPORATION

                                       and

                                 LB I GROUP INC.
<PAGE>

      This Warrant Registration Rights Agreement (this "Agreement") is made and
entered into as of September 6, 2000, among Autotote Corporation, a Delaware
corporation (the "Company"), and Donaldson, Lufkin & Jenrette Securities
Corporation and LB I Group Inc. (collectively, the "Initial Holders").

      FOR VALUE RECEIVED, the receipt and sufficiency of which is hereby
acknowledged, the Company has agreed to provide the registration rights set
forth in this Agreement.

      Capitalized terms used herein and not otherwise defined shall have the
meanings assigned to them in the Warrants.

      The parties hereby agree as follows:

1.    Definitions

      As used in this Agreement, the following capitalized terms shall have the
following meanings:

      Advice: As defined in Section 4(b) hereof.

      Black Out Notice: As defined in Section 4(b) hereof.

      Black Out Period: As defined in Section 3(a) hereof.

      Closing Date: The date hereof.

      Commission: The Securities and Exchange Commission.

      Holder: As defined in Section 2 hereof.

      NASD: National Association of Securities Dealers, Inc.

      Prospectus: The prospectus included in a Registration Statement at the
time such Registration Statement is declared effective, as amended or
supplemented by any prospectus supplement and by all other amendments thereto,
including post-effective amendments, and all material incorporated by reference
into such Prospectus.

      Registration Statement: Any registration statement of the Company relating
to the registration for resale of Transfer Restricted Securities that is filed
pursuant to the provisions of this Agreement and including the Prospectus
included therein, all amendments and supplements thereto (including
post-effective amendments) and all exhibits and material incorporated by
reference therein.

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      Rule 144: Rule 144 promulgated under the Act.

      Transfer Restricted Securities: Each Warrant and Warrant Security until
the earlier to occur of (i) the date on which such Warrant or Warrant Security
(other than any Warrant Security issued upon exercise of a Warrant in accordance
with a Registration Statement) has been disposed of in accordance with a
Registration Statement and (ii) the date on which such Warrant or Warrant
Security (or the related Warrant) is distributed to the public pursuant to Rule
144 under the Act.

      Warrants: Collectively, (i) the Warrant, of even date herewith, issued to
Donaldson, Lufkin & Jenrette Securities Corporation initially to acquire
2,320,000 shares of Class A Common Stock, (ii) the Warrant, of even date
herewith, issued to LB I Group Inc. initially to acquire 580,000 shares of Class
A Common Stock, and (iii) any additional warrants of the same series as the
foregoing which may be issued from time to time in accordance with the terms
hereof and thereof.

      Warrant Securities: Collectively, the shares of Class A Common Stock
issuable upon exercise or redemption of the Warrants, as adjusted pursuant to
the terms of the Warrants from time to time, and all other securities which
issuable upon exercise or redemption of the Warrants pursuant to their terms.

2.    Holders

      A person is deemed to be a holder of Transfer Restricted Securities (each,
a "Holder") whenever such person is the holder of record of Transfer Restricted
Securities.

3.    Shelf Registration

      (a) Shelf Registration. The Company shall prepare and cause to be filed
with the Commission on or before 90 days from the Closing Date pursuant to Rule
415 under the Act a Registration Statement on the appropriate form relating to
resales of Transfer Restricted Securities by the Holders thereof and the
issuance of Warrant Securities upon the exercise or redemption of the Warrants
sold pursuant to such Registration Statement. The Company shall use its
commercially reasonable efforts to cause the Registration Statement to be
declared effective by the Commission on or before 180 days after the Closing
Date.

      To the extent necessary to ensure that the Registration Statement is
available for sales of Transfer Restricted Securities by the Holders thereof
entitled to the benefit of this Section 3(a), the Company shall use its
commercially reasonable efforts to keep any Registration Statement required by
this Section 3(a) continuously effective, supplemented, amended and current as
required by and subject to the provisions of Section 4(a) hereof and in
conformity in all material respects with the requirements of this Agreement, the
Act and the policies, rules

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                                      -3-

and regulations of the Commission as announced from time to time, until the
second anniversary of the effective date of the Registration Statement;
provided, however, that such obligation shall expire before such date if the
Company delivered to each Holder a written opinion of counsel to the Company
(which opinion of counsel shall be reasonably satisfactory to the Initial
Holders) that all Holders (other than Affiliates of the Company) of Warrants and
Warrant Securities may resell the Warrants and the Warrant Securities without
registration under the Act and without restriction as to the manner, timing or
volume of any such sale; and provided, further, that notwithstanding the
foregoing, any Affiliate of the Company may, with notice to the Company, require
the Company to keep the Registration Statement continuously effective for
resales by such Affiliate for so long as such Affiliate holds Warrants or
Warrant Securities, including as a result of any market-making activities or
other trading activities of such Affiliate. Notwithstanding the foregoing, the
Company shall not be required to amend or supplement the Registration Statement,
any related prospectus or any document incorporated therein by reference, for a
period (a "Black Out Period") not to exceed, for so long as this Agreement is in
effect, an aggregate of 60 days in any calendar year, in the event that (i) an
event occurs and is continuing as a result of which the Registration Statement,
any related prospectus or any document incorporated therein by reference as then
amended or supplemented would, in the Company's good faith judgment, contain an
untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, and (ii)(A) the Company determines in its
good faith judgment that the disclosure of such event at such time would have a
material adverse effect on the business, operations or prospects of the Company
or (B) the disclosure otherwise relates to a material business transaction which
has not yet been publicly disclosed; provided, however, that such Black Out
Period shall be extended for any period, not to exceed an aggregate of 30 days
in any calendar year, during which the Commission is reviewing any proposed
amendment or supplement to the Registration Statement, any related prospectus or
any document incorporated therein by reference which has been filed by the
Company.

      (b) Provision by Holders of Certain Information in Connection with the
Registration Statement. No Holder of Transfer Restricted Securities may include
any of its Transfer Restricted Securities in any Registration Statement pursuant
to this Agreement unless and until such Holder furnishes to the Company in
writing, within 10 days after receipt of a request therefor, the information
specified in Item 507 or 508 of Regulation S-K, as applicable, or such other
information as the Company may reasonably request under the Act for use in
connection with any Registration Statement or Prospectus or preliminary
prospectus included therein or in any application to the NASD. Each Holder
agrees to promptly furnish additional information required to be disclosed in
order to make the information previously furnished to the Company by such Holder
not materially misleading.

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4.    Registration Procedures

      (a) In connection with the Registration Statement and any related
Prospectus required by this Agreement, the Company shall:

            (i) comply in all material respects with all the provisions of this
      Section 4(a) and use its commercially reasonable efforts to effect such
      registration to permit the sale of the Transfer Restricted Securities
      being sold in accordance with the intended method or methods of
      distribution thereof (as indicated in the information furnished to the
      Company pursuant to Section 3(b) hereof), and pursuant thereto the Company
      will prepare and cause to be filed with the Commission a Registration
      Statement relating to the registration on any appropriate form under the
      Act, which form shall be available for the sale of the Transfer Restricted
      Securities in accordance with the intended method or methods of
      distribution thereof within the time periods and otherwise in accordance
      with the provisions hereof;

            (ii) use its commercially reasonable efforts to keep such
      Registration Statement continuously effective and provide all requisite
      financial statements for the period specified in Section 3 of this
      Agreement. Upon the occurrence and during the continuance of any event
      that would cause any such Registration Statement or the Prospectus
      contained therein (A) to contain an untrue statement of material fact or
      omit to state any material fact necessary to make the statement therein,
      in the light of the circumstances under which they were made, not
      misleading or (B) not to be effective and usable for resale of Transfer
      Restricted Securities during the period required by this Agreement, the
      Company shall, subject to Section 3(a), file promptly an appropriate
      amendment to such Registration Statement or a supplement to the
      Prospectus, as applicable, curing such defect, and, in the case of an
      amendment, use its commercially reasonable efforts to cause such amendment
      to be declared effective as soon as practicable thereafter;

            (iii) prepare and file with the Commission such amendments and
      post-effective amendments to the applicable Registration Statement as may
      be necessary to keep such Registration Statement effective for the
      applicable period set forth in Section 3; use its commercially reasonable
      efforts to cause the Prospectus to be supplemented by any required
      Prospectus supplement, and as so supplemented to be filed pursuant to Rule
      424 under the Act, and to comply in all material respects with Rules 424,
      430A and 462, as applicable, under the Act in a timely manner; and comply
      in all material respects with the provisions of the Act with respect to
      the disposition of all securities covered by such Registration Statement
      during the applicable period in accordance with the intended method or
      methods of distribution by the sellers thereof set forth in such
      Registration Statement or supplement to the Prospectus;

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                                      -5-

            (iv) promptly advise each Holder whose Transfer Restricted
      Securities have been included in the Registration Statement (each, a
      "Relevant Holder") and the Initial Holders and, if reasonably requested in
      writing by such person, confirm such advice in writing, (A) when the
      Prospectus or any Prospectus supplement or post-effective amendment has
      been filed, and, with respect to any applicable Registration Statement or
      any post-effective amendment thereto, when the same has become effective,
      (B) of any request by the Commission for amendments to the Registration
      Statement or amendments or supplements to the Prospectus or for additional
      information relating thereto, (C) of the issuance by the Commission of any
      stop order suspending the effectiveness of the Registration Statement
      under the Act or of the suspension by any state securities commission of
      the qualification of the Transfer Restricted Securities for offering or
      sale in any jurisdiction, or the initiation of any proceeding for any of
      the preceding purposes, and (D) of the existence of any fact or the
      happening of any event that makes any statement of a material fact made in
      the Registration Statement, the Prospectus, any amendment or supplement
      thereto or any document incorporated by reference therein untrue, or that
      requires the making of any additions or changes in the Registration
      Statement in order to make the statements therein not misleading, or that
      requires the making of any additions to or changes in the Prospectus in
      order to make the statements therein, in the light of the circumstances
      under which they were made, not misleading. If at any time the Commission
      shall issue any stop order suspending the effectiveness of the
      Registration Statement, or any state securities commission or other
      regulatory authority shall issue an order suspending the qualification or
      exemption from qualification of the Transfer Restricted Securities under
      state securities or Blue Sky laws, the Company shall use its commercially
      reasonable efforts to obtain the withdrawal or lifting of such order at
      the earliest possible time;

            (v) subject to Section 4(a)(ii), if any fact or event contemplated
      by Section 4(a)(iv)(D) hereof shall exist or have occurred, prepare a
      supplement or post-effective amendment to the Registration Statement or
      related Prospectus or any document incorporated therein by reference or
      file any other required document so that, as thereafter delivered to the
      purchasers of Transfer Restricted Securities, the Prospectus will not
      contain an untrue statement of a material fact or omit to state any
      material fact necessary to make the statements therein, in the light of
      the circumstances under which they were made, not misleading;

            (vi) furnish to each Relevant Holder and the Initial Holder, before
      filing with the Commission, copies of any Registration Statement or any
      Prospectus included therein or any amendments or supplements to any such
      Registration Statement or Prospectus (including, upon reasonable request,
      all documents incorporated by reference after the initial filing of such
      Registration Statement), which documents will be subject to the review and
      comment of such persons in connection with such sale, if any, for a period
      of

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                                      -6-

            at least five Business Days, and the Company will not file any such
      Registration Statement or Prospectus or any amendment or supplement to any
      such Registration Statement or Prospectus (including all such documents
      incorporated by reference) to which such person shall reasonably object in
      writing to the Company within five Business Days after the receipt
      thereof. Such person shall be deemed to have reasonably objected to such
      filing if such Registration Statement, amendment, Prospectus or
      supplement, as applicable, as proposed to be filed, contains an untrue
      statement of a material fact or omits to state any material fact necessary
      to make the statements therein, in the light of the circumstances under
      which they were made, not misleading or fails to comply with the
      applicable requirements of the Act;

            (vii) promptly prior to the filing of any document that is to be
      incorporated by reference into a Registration Statement or Prospectus,
      provide copies of such document to each Relevant Holder and the Initial
      Holder, make the Company's representatives available for discussion of
      such document and other customary due diligence matters, upon reasonable
      notice, and, to the extent reasonably practicable, include such
      information in such document prior to the filing thereof as such persons
      may reasonably request;

            (viii) make available, at reasonable times and upon reasonable
      notice, for inspection by each Relevant Holder and the Initial Holders and
      any attorney or accountant retained by such persons, all financial and
      other records and pertinent corporate documents of the Company and cause
      the Company's officers, directors and employees to supply all information
      reasonably requested in writing by any such person, attorney or accountant
      in connection with such Registration Statement or any post-effective
      amendment thereto subsequent to the filing thereof and prior to its
      effectiveness; provided, however, that any information that is reasonably
      and in good faith designated by the Company in writing as confidential at
      the time of delivery of such information shall be kept confidential by
      such persons, unless (i) disclosure of such information is required by
      court or administrative order or is necessary to respond to inquiries of
      regulatory authorities, (ii) disclosure of such information is required by
      law (including any disclosure requirements pursuant to federal securities
      laws in connection with the filing of such Registration Statement or the
      use of any Prospectus, except if the Company obtains "confidential
      treatment" for any document or information in accordance with the rules of
      the Commission), (iii) such information becomes generally available to the
      public other than as a result of a disclosure or failure to safeguard such
      information by such person or (iv) such information becomes available to
      such person from a source other than the Company and its subsidiaries and
      such source is not known, after due inquiry, by such person to be bound by
      a confidentiality agreement;

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            (ix) if reasonably requested by any Relevant Holder or by the
      Initial Holders, promptly include in any Registration Statement or
      Prospectus, pursuant to a supplement or post-effective amendment if
      necessary, such information as any such person reasonably requests to have
      included therein, including, without limitation, information relating to
      the "Plan of Distribution" of the Transfer Restricted Securities; and make
      all required filings of such Prospectus supplement or post-effective
      amendment as soon as practicable after the Company is notified of the
      matters to be included in such Prospectus supplement or post-effective
      amendment;

            (x) furnish to the Initial Holders and each Relevant Holder upon
      reasonable request, without charge, at least one copy of the Registration
      Statement, as first filed with the Commission, and of each amendment
      thereto, including, upon the reasonable request of such Person, all
      documents incorporated by reference therein and all exhibits (including,
      if so requested, exhibits incorporated therein by reference);

            (xi) deliver to the Initial Holders and each Relevant Holder,
      without charge, as many copies of the Prospectus (including each
      preliminary prospectus) and any amendment or supplement thereto as such
      persons reasonably may request; the Company hereby consents to the use (in
      accordance with law) of the Prospectus and any amendment or supplement
      thereto by each Initial Holder and each Relevant Holder in connection with
      the offering and the sale of the Transfer Restricted Securities covered by
      the Prospectus or any amendment or supplement thereto and all
      market-making activities of the Initial Holders, as the case may be;

            (xii) upon the request of any Relevant Holder or the Initial
      Holders, enter into such customary agreements (including underwriting
      agreements) as are customary in comparable offerings and make such
      customary representations and warranties and take all such other
      reasonable actions in connection therewith in order to expedite or
      facilitate the disposition of the Transfer Restricted Securities pursuant
      to any applicable Registration Statement contemplated by this Agreement as
      may be reasonably requested in writing by any Relevant Holder in
      connection with any sale or resale pursuant to any applicable Registration
      Statement. In such connection, the Company shall:

                  (A) upon the reasonable request of any Relevant Holder,
            furnish (or in the case of paragraphs (2) and (3), use its
            commercially reasonable efforts to cause to be furnished) to each
            such Holder, upon the effectiveness of the Registration Statement:

                        (1) a certificate, signed on behalf of the Company by
                  (x) the President or any Vice President and (y) a principal
                  financial or account-

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                                      -8-

                  ing officer of the Company, confirming the matters such person
                  may reasonably request;

                        (2) an opinion, dated the date of effectiveness of the
                  Registration Statement, of counsel for the Company covering
                  such matters as such person may reasonably request, and in any
                  event including a statement to the effect that such counsel
                  has participated in conferences with officers and other
                  representatives of the Company and representatives of the
                  independent public accountants for the Company and has
                  considered the matters required to be stated therein and the
                  statements contained therein, although such counsel has not
                  independently verified the accuracy, completeness or fairness
                  of such statements; and that such counsel advises that, on the
                  basis of the foregoing, no facts came to such counsel's
                  attention that caused such counsel to believe that the
                  applicable Registration Statement, at the time such
                  Registration Statement or any post-effective amendment thereto
                  became effective, contained an untrue statement of a material
                  fact or omitted to state a material fact required to be stated
                  therein or necessary to make the statements therein not
                  misleading, or that the Prospectus contained in such
                  Registration Statement as of its date contained an untrue
                  statement of a material fact or omitted to state a material
                  fact necessary in order to make the statements therein, in the
                  light of the circumstances under which they were made, not
                  misleading. Without limiting the foregoing, such counsel may
                  state further that such counsel assumes no responsibility for,
                  and has not independently verified, the accuracy, completeness
                  or fairness of the financial statements, notes and schedules
                  and other financial data included in any Registration
                  Statement contemplated by this Agreement or the related
                  Prospectus; and

                        (3) a customary comfort letter, dated the date of
                  effectiveness of the Registration Statement, from the
                  Company's independent accountants, in the customary form and
                  covering matters of the type customarily covered in comfort
                  letters to underwriters in connection with underwritten
                  offerings; and

                  (B) deliver such other documents and certificates as may be
            reasonably requested in writing by such Holders to evidence
            compliance with the matters covered in clause (A) above and with any
            customary conditions contained in the underwriting agreement or
            other such agreements entered into by the Company pursuant to this
            clause;

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            (xiii) prior to any public offering of Transfer Restricted
      Securities, cooperate with the selling Holders and their counsel in
      connection with the registration and qualification of the Transfer
      Restricted Securities under the securities or Blue Sky laws of such
      jurisdictions as the selling Holders may reasonably request and do any and
      all other acts or things necessary or advisable to enable the disposition
      in such jurisdictions of the Transfer Restricted Securities covered by the
      applicable Registration Statement; provided, however, that the Company
      shall not be required to register or qualify as a foreign corporation
      where it is not now so qualified or to take any action that would subject
      it to the service of process in suits or to taxation, other than as to
      matters and transactions relating to the Registration Statement, in any
      jurisdiction where it is not so subject;

            (xiv) in connection with any sale of Transfer Restricted Securities
      that will result in such securities no longer being Transfer Restricted
      Securities, cooperate with the selling Holders to facilitate the timely
      preparation and delivery of certificates representing Transfer Restricted
      Securities to be sold and not bearing any restrictive legends; and to
      register such Transfer Registered Securities in such denominations and
      such names as the selling Holders may request at least two Business Days
      prior to such sale of Transfer Restricted Securities;

            (xv) use its commercially reasonable efforts to cause the
      disposition of the Transfer Restricted Securities covered by the
      Registration Statement to be registered with or approved by such other
      governmental agencies or authorities as may be necessary to enable the
      seller or sellers thereof to consummate the disposition of such Transfer
      Restricted Securities, subject to the proviso contained in clause (xiii)
      above;

            (xvi) provide a CUSIP number for all Transfer Restricted Securities
      not later than the effective date of a Registration Statement covering
      such Transfer Restricted Securities and provide the Relevant Holder or its
      designee with printed certificates for the Transfer Restricted Securities
      which are in a form eligible for deposit with The Depository Trust
      Company;

            (xvii) otherwise use its commercially reasonable efforts to comply
      in all material respects with all applicable rules and regulations of the
      Commission so long as any provision of this Agreement shall be applicable,
      and make generally available to its security holders with regard to any
      applicable Registration Statement, as soon as practicable, a consolidated
      earnings statement meeting the requirements of Rule 158 (which need not be
      audited) covering a twelve-month period beginning after the effective date
      of the Registration Statement (as such term is defined in Rule 158(c)
      under the Act); and

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                                      -10-

            (xviii) provide promptly to each Relevant Holder and the Initial
      Holders, upon reasonable request, each document filed after the date of
      this Agreement with the Commission pursuant to the requirements of Section
      13 or Section 15(d) of the Exchange Act.

      (b) Restrictions on Holders. Each Holder agrees by acquisition of a
Transfer Restricted Security and the Initial Holders agree that, upon receipt of
the notice from the Company of the commencement of a Black Out Period (in each
case, a "Black Out Notice"), such Holder will forthwith discontinue disposition
of Transfer Restricted Securities pursuant to the applicable Registration
Statement until (i) such Holder has received copies of the supplemented or
amended Prospectus referred to in Section 4(a)(v) hereof, or (ii) such Holder is
advised in writing by the Company that the use of the Prospectus may be resumed,
and has received copies of any additional or supplemental filings that are
incorporated by reference in the Prospectus (the "Advice"). Each Holder
receiving a Black Out Notice hereby agrees that it will either (i) destroy any
Prospectuses, other than permanent file copies, then in such Holder's possession
which have been replaced by the Company with more recently dated Prospectuses or
(ii) deliver to the Company (at the Company's expense) all copies, other than
permanent file copies, then in such Holder's possession of the Prospectus
covering such Transfer Restricted Securities that was current at the time of
receipt of the Black Out Notice. The time period regarding the effectiveness of
such Registration Statement set forth in Section 3 hereof shall be extended by a
number of days equal to the number of days in the period from and including the
date of delivery of the Black Out Notice to and including the date when each
Holder that received a Black Out Notice shall have received the copies of the
supplemented or amended Prospectus contemplated by Section 4(a)(v) hereof or
shall have received the Advice.

5.    Registration Expenses

      All expenses incident to the Company's performance of or compliance with
this Agreement will be borne by the Company, regardless of whether a
Registration Statement becomes effective, including, without limitation: (i) all
registration and filing fees; (ii) all reasonable fees and expenses of
compliance with federal securities and state Blue Sky or securities laws; (iii)
all reasonable expenses of printing (including printing Prospectuses), messenger
and delivery services and telephone; (iv) all reasonable fees and disbursements
of counsel for the Company; (v) all applications and filing fees in connection
with listing the Warrant Securities on a national securities exchange or
automated quotation system pursuant to the requirements hereof; and (vi) all
reasonable fees and disbursements of independent certified public accountants of
the Company (including the expenses of any special audit and comfort letters
required by or incident to such performance). Notwithstanding anything in this
Section 5 to the contrary, the Company shall not be required to pay any
underwriting discounts, commissions or transfer taxes, if any, relating to the
sale of disposition of any Holder's Transfer Restricted Securities.

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      The Company will, in any event, bear its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expenses of any annual audit and the
fees and expenses of any person, including special experts, retained by the
Company.

6.    Indemnification

      (a) The Company agrees to indemnify and hold harmless each Holder, its
directors, officers, partners, employees, representatives and agents and each
person, if any, who controls such Holder (within the meaning of Section 15 of
the Act or Section 20 of the Exchange Act), from and against any and all losses,
claims, damages, liabilities, judgments (including, without limitation, any
legal or other expenses incurred in connection with investigating or defending
any matter, including any action that could give rise to any such losses,
claims, damages, liabilities or judgments) directly or indirectly caused by,
related to, based upon, arising out of or in connection to any untrue statement
or alleged untrue statement of a material fact contained in any Registration
Statement, preliminary prospectus or Prospectus (or any amendment or supplement
thereto) provided by the Company to any Holder or any prospective purchaser of
Transfer Restricted Securities, or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, except insofar as such losses, claims,
damages, liabilities or judgments are caused by an untrue statement or omission
or alleged untrue statement or omission that is made in reliance upon and in
conformity with information relating to any Holder furnished in writing to the
Company by any such Holder.

      (b) Each Holder of Transfer Restricted Securities agrees, severally and
not jointly, to indemnify and hold harmless the Company, its directors and
officers, and each person, if any, who controls (within the meaning of Section
15 of the Act or Section 20 of the Exchange Act) the Company, to the same extent
as the foregoing indemnity from the Company set forth in Section 6(a) hereof,
but only with reference to information relating to such Holder furnished in
writing to the Company by such Holder expressly for use in any Registration
Statement. In case any action or proceeding shall be brought against the Company
or its directors or officers or any such controlling person in respect of which
indemnity may be sought against a Holder of Transfer Restricted Securities, such
Holder shall have the rights and duties given the Company, and the Company, such
directors or officers or such controlling person shall have the rights and
duties given to each Holder by the preceding paragraph. In no event shall any
Holder, its directors, officers or any person who controls such Holder be liable
or responsible for any amount in excess of the amount by which the total amount
received by such Holder with respect to its sale of Transfer Restricted
Securities pursuant to a Registration Statement exceeds (i) the amount paid by
such Holder for such Transfer Restricted Securities and (ii) the amount of any
damages that such Holder, its directors, officers or any person who controls
such

<PAGE>
                                      -12-

Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.

      (c) In case any action shall be commenced involving any person in respect
of which indemnity may be sought pursuant to Section 6(a) or 6(b) (the
"indemnified party"), the indemnified party shall promptly notify the person
against whom such indemnity may be sought (the "indemnifying party") in writing,
and the indemnifying party shall assume the defense of such action, including
the employment of counsel reasonably satisfactory to the indemnified party and
the payment of all fees and expenses of such counsel, as incurred (except that,
in the case of any action in respect of which indemnity may be sought pursuant
to both Sections 6(a) and 6(b), a Holder shall not be required to assume the
defense of such action pursuant to this Section 6(c), but may employ separate
counsel and participate in the defense thereof, but the fees and expenses of
such counsel, except as provided below, shall be at the expense of the Holder).
Any indemnified party shall have the right to employ separate counsel in any
such action and participate in the defense thereof, but the fees and expenses of
such counsel shall be at the expense of the indemnified party, unless (i) the
employment of such counsel shall have been specifically authorized in writing by
the indemnifying party, (ii) the indemnifying party shall have failed to assume
the defense of such action or employ counsel reasonably satisfactory to the
indemnified party or (iii) the named parties to any such action (including any
impleaded parties) include both the indemnified party and the indemnifying
party, and the indemnified party shall have been advised by such counsel that
there may be one or more legal defenses available to it which are different from
or additional to those available to the indemnifying party (in which case the
indemnifying party shall not have the right to assume the defense of such action
on behalf of the indemnified party). In any such case, the indemnifying party
shall not, in connection with any one action or separate but substantially
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the fees and expenses of
more than one separate firm of attorneys (in addition to any local counsel) for
all indemnified parties and all such fees and expenses shall be reimbursed as
they are incurred. Such firm shall be designated in writing by a majority of the
Holders, in the case of the parties indemnified pursuant to Section 6(a), and by
the Company, in the case of parties indemnified pursuant to Section 6(b). The
indemnifying party shall indemnify and hold harmless the indemnified party from
and against any and all losses, claims, damages, liabilities and judgments by
reason of any settlement of any action (i) effected with its written consent or
(ii) effected without the indemnifying party's written consent if the settlement
is entered into more than 60 days after the indemnifying party shall have
received a request from the indemnified party for reimbursement for the fees and
expenses of counsel (in any case where such fees and expenses are at the expense
of the indemnifying party) and, prior to the date of such settlement, the
indemnifying party shall have failed to comply with such reimbursement request.
Except as provided in the preceding sentence, no indemnifying party shall be
liable for any settlement effected without its consent. The indemnifying party
shall not, without the prior written consent of the indemnified party, effect
any settlement or compromise of, or consent to the entry of judgment

<PAGE>
                                      -13-

with respect to, any pending or threatened action in respect of which the
indemnified party is or could have been a party and indemnity or contribution
may be or could have been sought hereunder by the indemnified party, unless such
settlement, compromise or judgment (i) includes an unconditional release of the
indemnified party from all liability on claims that are or could have been the
subject matter of such action and (ii) does not include a statement as to or an
admission of fault, culpability or a failure to act, by or on behalf of the
indemnified party.

      (d) To the extent that the indemnification provided for in this Section 6
is unavailable to an indemnified party under Section 6(a) or Section 6(b) hereof
(other than by reason of exceptions provided in those sections) in respect of
any losses, claims, damages, liabilities, expenses or judgments referred to
therein, then each indemnifying party, in lieu of indemnifying such indemnified
party, shall contribute to the amount paid or payable by such indemnified party
as a result of such losses, claims, damages, liabilities, expenses or judgments
in such proportion as is appropriate to reflect the relative fault of the
Company, on the one hand, and of the Holders, on the other hand, in connection
with the statements or omissions which resulted in such losses, claims, damages,
liabilities, expenses or judgments, as well as any other relevant equitable
considerations. The relative fault of the Company, on the one hand, and of the
Holders, on the other hand, shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company, on the one hand, or by the Holders, on the other hand,
and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The amount paid or
payable by a party as a result of the losses, claims, damages, liabilities,
expenses and judgments referred to above shall be deemed to include, subject to
the limitations set forth in Section 6(a), any legal or other fees or expenses
reasonably incurred by such party in connection with investigating or defending
any action or claim.

      The Company and each Holder agree that it would not be just and equitable
if contribution pursuant to this Section 6(d) were determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or
by any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an indemnified party as a result of the losses, claims,
damages, liabilities, expenses or judgments referred to above shall be deemed to
include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any matter, including any action that could have given rise to such
losses, claims, damages, liabilities, expenses or judgments. Notwithstanding the
provisions of this Section 6, no Holder, its directors, its officers or any
person, if any, who controls such Holder shall be required to contribute, in the
aggregate, any amount in excess of the amount by which the total received by
such Holder with respect to the sale of Transfer Restricted Securities pursuant
to a Registration Statement exceeds the sum of (i) the amount paid by such
Holder for such Transfer Restricted

<PAGE>
                                      -14-

Securities plus (ii) the amount of any damages which such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Holders' obligations to contribute pursuant to this
Section 6(d) are several in proportion to the respective principal amount of
Transfer Restricted Securities held by each Holder hereunder and not joint.

      (e) The Company agrees that the indemnity and contribution provisions of
this Section 6 shall apply to the Initial Holders to the same extent, on the
same conditions, as it applies to Holders.

7.    Rule 144

      The Company agrees with each Holder, for so long as any Transfer
Restricted Securities remain outstanding and during any period in which the
Company (i) is not subject to Section 13 or 15(d) of the Exchange Act, to make
available, upon request of any Holder, to such Holder or beneficial owner of
Transfer Restricted Securities in connection with any sale thereof and any
prospective purchaser of such Transfer Restricted Securities designated by such
Holder or beneficial owner, the information required by Rule 144A(d)(4) under
the Act in order to permit resales of such Transfer Restricted Securities
pursuant to Rule 144A, and (ii) is subject to Section 13 or 15(d) of the
Exchange Act, to make all filings required thereby in a timely manner in order
to permit resales of such Transfer Restricted Securities pursuant to Rule 144.

8.    Miscellaneous

      (a) Remedies. The Company acknowledges and agrees that any failure by the
Company to comply in all material respects with its obligations under Section 3
hereof may result in material irreparable injury to the Initial Holders or the
Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Initial Holders or any Holder may obtain such relief as
may be required under applicable law to specifically enforce the Company's
obligations under Section 3 hereof.

      (b) No Inconsistent Agreements. The Company will not, on or after the date
of this Agreement, enter into any agreement with respect to its securities that
is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Company's securities under any
agreement in effect on the date hereof.

<PAGE>
                                      -15-

      (c) Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to or departures from
the provisions hereof may not be given, unless (i) in the case of this Section
8(c)(i), the Company has obtained the written consent of Holders of all
outstanding Transfer Restricted Securities, and (ii) in the case of all other
provisions hereof, the Company has obtained the written consent of Holders of a
majority of the outstanding principal amount of Transfer Restricted Securities
(excluding Transfer Restricted Securities held by the Company or its
Affiliates).

      (d) Third Party Beneficiary. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Initial Holders, on the other hand, and shall have the right to
enforce such agreements directly to the extent they may deem such enforcement
necessary or advisable to protect its rights or the rights of Holders hereunder.

      (e) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail
(registered, return receipt requested), telex, telecopier, or air courier
guaranteeing overnight delivery:

            (i) if to a Holder, at the address set forth on the records of the
      Company; and

            (ii) if to the Company:

                        Autotote Corporation
                        750 Lexington Avenue, 25th Floor
                        New York, New York 10022
                        Facsimile No.: (212) 754-2372
                        Attention: General Counsel

                        With a copy to:

                        Kramer Levin Naftalis & Frankel LLP
                        919 Third Avenue
                        New York, New York 10022
                        Facsimile No.: (212) 715-8000
                        Attention: Peter Smith, Esq.

      All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business
Days after being deposited in the mail, postage prepaid, if mailed; when receipt
acknowledged, if telecopied; and on the next Business Day, if timely delivered
to an air courier guaranteeing overnight delivery.

<PAGE>
                                      -16-

      The address or person or entity to whose attention any notice or
communication shall be given may be changed in accordance with the provisions of
this Section 8(e).

      Upon the date of filing a Registration Statement, notice shall be
delivered to the Initial Holders (in the form attached hereto as Exhibit A) and
shall be addressed to: Donaldson, Lufkin & Jenrette Securities Corporation,
Attention: Louise Guarneri (Compliance Department), 277 Park Avenue, New York,
New York 10172.

      (f) Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties,
including, without limitation, and without the need for an express assignment,
subsequent Holders; provided, however, that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Transfer Restricted
Securities in violation of the terms hereof or of the Warrants. If any
transferee of any Holder shall acquire Transfer Restricted Securities in any
manner, whether by operation of law or otherwise, such Transfer Restricted
Securities shall be held subject to all of the terms of this Agreement, and by
taking and holding such Transfer Restricted Securities such person shall be
conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement, including the restrictions on resale set
forth in this Agreement and such person shall be entitled to receive the
benefits hereof.

      (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

      (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

      (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE
CONFLICT OF LAW RULES THEREOF.

      (j) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

      (k) Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or

<PAGE>
                                      -17-

referred to herein with respect to the registration rights granted with respect
to the Transfer Restricted Securities. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject
matter.

                            SIGNATURE PAGE TO FOLLOW
<PAGE>

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

                                          AUTOTOTE CORPORATION

                                          By:________________________________
                                             Name:
                                             Title:

DONALDSON, LUFKIN & JENRETTE
  SECURITIES CORPORATION

By:_________________________________
   Name:
   Title:

LEHMAN BROTHERS INC.

By:_________________________________
   Name:
   Title:
<PAGE>

                                                                       EXHIBIT A

                               NOTICE OF FILING OF
                         WARRANT REGISTRATION STATEMENT

To:         Donaldson, Lufkin & Jenrette Securities Corporation
            277 Park Avenue
            New York, New York 10172
            Attention: Louise Guarneri (Compliance Department)
            Fax: (212) 892-7272

From:       Autotote Corporation
            Warrants to Purchase Shares of Class A Common Stock

Date:

      For your information only (NO ACTION REQUIRED):

      Today, __________, we filed a Shelf Registration Statement with the
Securities and Exchange Commission. We currently expect this registration
statement to be declared effective within ___ business days of the date hereof.EMPLOYMENT AND SEVERANCE BENEFITS AGREEMENT

      This Agreement is made and entered into as of ___ day of _____________,
2000, by and between SCIENTIFIC GAMES INC., a Delaware corporation (hereinafter
called the "Company"), and ____________________________ (hereinafter called
"Executive").

                              W I T N E S S E T H:

      WHEREAS, contemporaneously with the effectiveness of this Agreement, the
Company will have been acquired (the "Acquisition") by a wholly-owned indirect
subsidiary of Autotote Corporation ("Autotote"); and

      WHEREAS, the Company desires to retain, and Autotote, in connection with
the Acquisition, desires the Company to retain the services of the Executive,
and the Executive desires to provide such services to the Company;

      NOW, THEREFORE, in consideration of the mutual covenants and obligations
hereinafter set forth, the parties hereto, intending to be legally bound, hereby
agree as follows:

      1. EMPLOYMENT; TERM. The Company employs Executive and Executive accepts
employment with the Company in the position of ______ for the Company and its
subsidiaries upon the terms and conditions hereinafter set forth. The term of
Executive's employment is subject to termination by the Company at any time
without cause upon sixty (60) days' written notice, subject to Executive's right
to receive the applicable severance benefits described herein. Except as
otherwise provided herein (including Section 8 hereof), Executive may terminate
his employment with the Company upon sixty (60) days' prior written notice or
such shorter period as the Company may allow. Except as otherwise provided
herein, no severance benefits shall be due in the event of Executive's voluntary
termination of employment hereunder. The term of this Agreement shall be for
three (3) years from the date first written above; provided, however, that the
term of this Agreement shall automatically extend for an additional year on each
anniversary date of this Agreement unless the Company or Executive shall give
notice to the other party of their decision not to extend the term of this
Agreement by giving at least thirty (30) days' written notice prior to such
anniversary, in which event this Agreement shall have a remaining term equal to
the longer of two hundred seventy (270) days or the then remaining term of this
Agreement.

      2. DUTIES. During the term of his employment under this Agreement, the
Executive will serve as _____________________ of the Company, and as an officer
of such subsidiaries and affiliates of the Company as the Board of Directors of
the Company (the "Board") shall determine. In such capacities, the Executive
shall perform such duties and shall have such responsibilities as are normally
associated with such positions and as otherwise may be assigned to the Executive
from time to time by or upon the authority of the Board. Subject to Section
8(a), Executive's functions, duties and responsibilities are subject to
reasonable changes as the Company may in good faith determine. The Executive
hereby agrees to accept such employment
<PAGE>

and to serve the Company to the best of his ability in such capacities, devoting
substantially all of his business time to such employment.

      3. COMPENSATION.

            (a) As compensation to the Executive for performance of the services
      required hereunder and as consideration for his execution and delivery of
      this Agreement, the Company shall pay or provide, as applicable, to him or
      cause Autotote to pay or provide, as applicable, to him, and the Executive
      agrees to accept, the following salary and other compensation and
      benefits:

                  (i) an initial base salary, payable in equal installments not
            less frequently than monthly, at the rate of $___________ per annum
            (such annual salary, as adjusted pursuant to Section 3(b) is
            hereinafter referred to as "Base Salary");

                  (ii) an annual cash bonus in an amount commensurate with, and
            based upon substantially the same criteria as, annual cash bonuses
            awarded to the Executive Officers of Autotote ("Executive Officer"
            as used herein has the meaning ascribed to such term in Section 3b-7
            of the Exchange Act);

                  (iii) an annual grant of stock options entitling the Executive
            to purchase shares of Autotote common stock commensurate with, and
            awarded on the basis of substantially the same criteria as, options
            grants awarded to Executive Officers of Autotote; and

                  (iv) such other and additional benefits as may from time to
            time be determined by the Board to be applicable to the Executive,
            which shall be commensurate with benefits accorded other executives
            of the Company and Autotote by virtue of their executive positions
            or salary level. For purposes of determining the Executive's
            entitlement to such other and additional benefits, the Company shall
            consider the length of time the Executive has been employed by the
            Company.

            (b) The Executive's Base Salary shall be increased each year by an
      amount equal to percentage increases in base salary generally provided to
      the Executive Officers of Autotote.

            (c) The Executive shall be offered and shall be permitted to
      participate in disability, medical, hospitalization, health, life and
      accident insurance plans upon terms and conditions and at coverage levels
      substantially equivalent, taken as a whole, to those currently available
      to the Executive through the Company.

            (d) The Executive shall be entitled during the term of his
      employment under this Agreement and thereafter to participate in any
      retirement, savings or other plans of

                                      -2-
<PAGE>

      Autotote as and to the same extent as is generally available to the
      Executive Officers or other employees of Autotote.

            (e) The Executive shall be entitled to a transportation allowance.
      The Company shall furnish a transportation allowance of [$8,000 for
      non-senior members of the executive team] and [$16,000 for senior members
      of the executive team] per year for the benefit of Executive. Such
      transportation allowance shall include the cost of providing the motor
      vehicle, gas, maintenance and repairs thereon and insurance therefor
      (which may be the allocable cost of group insurance for the Company's
      owned motor vehicles). The Executive's annual transportation allowance
      shall be increased each year by an amount equal to the product of the
      previous year's transportation allowance and a fraction, the numerator of
      which shall be the excess of the Index for December of such first
      mentioned year over the Index for December of the immediately preceding
      year and the denominator of which shall be the Index for December of the
      year immediately preceding, the date of this Agreement. "Index" shall mean
      the consumer price index for all urban consumers, all item as published by
      the Bureau of Labor Statistics of the United States Department of Labor.
      The transportation allowance shall be utilized by the Company to purchase
      or lease a motor vehicle selected by Executive and suitable for
      Executive's position. The Company also shall pay on behalf of Executive or
      reimburse Executive in the form of an additional transportation allowance
      for all parking expenses and for any other motor vehicle related expenses
      incurred by Executive for which the Company generally pays or reimburses
      pays or reimburses its senior executives, as of the date of this
      Agreement.

      4. INDEMNITY, PROFESSIONAL AND OFFICERS LIABILITY INSURANCE.

            (a) Indemnity. The Company agrees to indemnify and save harmless
      Executive from all liability and costs incurred (including reasonable
      attorney's fees and disbursements) as a consequence of claims by third
      parties, whether or not derivatively on behalf of the Company resulting
      from or growing out of Executive's status as or as a result of his having
      been an officer or director of (or counsel to) the Company or any
      affiliate thereof, to the full extent permitted by law. In no event shall
      the terms, provisions and conditions of the indemnity provided for
      hereunder be less than the same as those presently provided for under the
      Articles of Incorporation and By-Laws of the Company. Said terms,
      provisions and conditions of indemnity shall remain an independent,
      contractual obligation of the Company to Executive from and after the date
      hereof regardless of how the Company might hereafter amend or change its
      Articles of Incorporation or By-Laws to provide for different terms,
      conditions and provisions of indemnity for other officers and directors of
      the Company. In the event the Company should amend its articles of
      Incorporation or Bylaws to provide for different terms, conditions and
      provisions of indemnity after the effective date hereof, Executive shall
      be notified in writing of the change. Executive shall thereafter have
      thirty (30) days to elect in writing to accept the changed conditions of
      indemnity as a modification to the Company's contractual obligation
      hereunder or to continue under the terms of indemnity as provided for
      herein. The Company's agreement to provide indemnity hereunder shall

                                      -3-
<PAGE>

      survive the termination of this contract regardless of the cause of
      termination. The Company shall advance promptly as incurred reasonable
      fees and disbursements of counsel for Executive in defending Executive
      against any claims for which the Company would be so required to indemnify
      Executive provided (i) Executive shall otherwise comply with such
      mandatory requirements of Delaware law as may be required for such
      indemnification and (ii) Executive shall cause his counsel to cooperate
      fully in good faith with such requests as the Company or its counsel may
      reasonably make in order to endeavor to keep such legal fees at a minimum
      level consistent with an adequate defense of Executive.

            (b) Officers and Directors' Liability Insurance. The Company agrees
      to provide, at no expense to the Executive, insurance insuring Executive
      in his capacity as an officer and/or director of the Company and its
      affiliates (including Autotote) in such form and amount substantially
      equal to that presently maintained by the Company for or covering its
      executive officers and directors or in such other form and amount as
      Executive and Company may, from time to time, in good faith agree are
      reasonable and appropriate for executive officers and directors of
      corporations substantially similar in size to the Company or Autotote.

      5. TERMINATION OF EMPLOYMENT BY COMPANY FOR CAUSE. The Company may
terminate Executive's employment at any time for "Just and Substantial Cause"
but only after written Notice of Termination (as defined below) as approved by
the Chief Executive Officer of the Company and the Chief Executive Officer of
Autotote specifying the cause of such action shall be rendered to Executive.
"Just and Substantial Cause" shall mean: conviction of a felony; commission of
an act or acts of dishonesty on the part of Executive when such acts are
intended to result, directly or indirectly, in substantial wrongful gain or
substantial wrongful personal enrichment of Executive at the expense of the
Company; or the engaging by Executive in willful misconduct materially injurious
to the Company with respect to which (x) Executive knew or reasonably should
have known that such conduct would result in material financial injury to the
Company, (y) such conduct actually results in material financial injury to the
Company, and (z) such damage is not cured (if the same is reasonably susceptible
to cure) within a reasonable time following receipt by Executive of written
notice thereof from the Company referring to this Agreement. Notwithstanding the
foregoing, Executive shall not be deemed to have been terminated for Just and
Substantial Cause unless and until there shall have been delivered to Executive
written notice (a) setting forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Executive's
employment (the "Statement of Just and Substantial Cause"), and (b) stating that
as a result, Executive is being terminated for Just and Substantial Cause and
the specific termination provision in this Agreement being relied upon
(collectively with the Statement of Just and Substantial Cause, a "Notice of
Termination"). For purposes of this Agreement, no such purported termination
shall be effective without Notice of Termination. In the event Executive shall
be terminated for Just and Substantial Cause, Executive shall be entitled to all
salary actually earned prior to termination, all stock options vested prior to
or vesting upon termination, all bonuses vested prior to or vesting upon
termination, and all restricted shares vested prior to or vesting upon
termination. No severance pay would be owing in the event of termination
pursuant to this Section 5 for Just and Substantial Cause.

                                      -4-
<PAGE>

      6. TERMINATION OF EMPLOYMENT IN THE EVENT OF EXECUTIVE'S DISABILITY.
Executive and the Company agree that Executive may not reasonably be expected to
be able to perform his duties and the essential functions of his office if
Executive shall have been permanently disabled (as defined below) or absent from
his duties with the Company, or not otherwise be performing the duties of his
office due to physical or mental illness, in each case, on a full-time basis for
one hundred eighty (180) business days in the time periods specified below.
Accordingly, if, in the reasonable, good faith opinion of the Board, as a result
of Executive's incapacity due to physical or mental illness, (i) Executive shall
have been permanently disabled, within the meaning of the disability policy then
maintained for the benefit of employees of the Company (and the insurance
company shall not have disputed such determination), or (ii) if no such
disability policy shall be in force and effect covering Executive, Executive
shall have been absent from his duties with the Company on a full time basis for
one hundred eighty (180) consecutive business days or for shorter periods
aggregating one hundred eighty (180) business days during any 52-week period,
and within thirty (30) days after written notice of intent to terminate is given
by the Company, Executive shall not have returned to the full time performance
of his duties, Executive's employment shall be terminated for "Disability", in
which event Executive shall not be entitled to receive severance benefits under
this Agreement and Executive shall be compensated pursuant to the provisions of
this Section 6 as follows: Executive's Base Salary shall continue at the level
as provided in Section 3(a) for a period of twelve (12) months from the date of
the Notice of Termination. All disability, life and medical insurance provided
by the Company prior to termination shall continue for a period of twelve (12)
months after such termination. In such event, Executive shall be entitled to all
stock options vested prior to or vesting upon termination, all bonuses vested
prior to or vesting upon termination, together with that portion of any bonus
(whether or not vested) for the then-current fiscal year prorated to date of
termination (based upon performance against target through the applicable
measurement date), all restricted stock vested prior to or vesting upon
termination and all other benefits vested prior to or vesting upon termination.
Payments of Base Salary under this Section 6 shall be reduced by any disability
payments provided Executive as a result of any Company-sponsored disability plan
providing benefits to Executive, if the payments to Executive hereunder and
thereunder would exceed one hundred percent (100%) of Executive's Base Salary.
Executive's employment shall not be terminable under this Section 6 if Executive
is absent from his duties upon a bona fide leave of absence granted by the
Company other than pursuant to physical or mental illness.

      7. TERMINATION OF EMPLOYMENT IN THE EVENT OF DEATH DURING EMPLOYMENT. If
Executive dies during the term of this Agreement, the Company shall pay to the
last beneficiary designated by the Executive by written notice to the Company
or, failing such designation, to Executive's estate, compensation which would
otherwise be payable to Executive pursuant to this Agreement up to end of the
month in which his death occurs, plus a lump sum death benefit equal to six (6)
months of Executive's Base Salary. The compensation payable under this Section 7
shall include all stock options vested prior to or vesting upon termination, all
unpaid bonuses which are vested prior to or vesting upon termination, all
restricted stock and all other benefits vested prior to or vesting upon
termination, including, in each case, all benefits which vest by their terms
upon Executive's death. In the event there are any bonuses with respect to a
calendar year which has not ended prior to Executive's death, such bonuses
(whether or not

                                      -5-
<PAGE>

vested) shall be paid on a pro rata basis based upon performance against target
through the period to the date of death.

      The Executive shall have the right to name, from time to time, any one
person as beneficiary hereunder or, with the consent of the Board, he may make
other forms of designation of beneficiary or beneficiaries. The Executive's
designated beneficiary or personal representative, as the case may be, shall
accept the payments provided for in this Section 7 in full discharge and release
of the Company of and from any further obligations under this Agreement (other
than to pay compensation or benefits which accrued prior to the date of such
termination).

      8. TERMINATION OF EMPLOYMENT WITHOUT CAUSE OR IN CONNECTION WITH
CONSTRUCTIVE TERMINATION.

            (a) Should the Company (i) change the location of Executive's office
      or of the Company's principal executive offices from the existing location
      in Alpharetta, Georgia to a place not within forty (40) miles of the
      existing location in Alpharetta, Georgia, or change the location of
      Executive's office to a location other than the location of the Company's
      principal executive office, (ii) fail to appoint or reappoint Executive to
      the office and position Executive holds by virtue of this Agreement or
      such other position held immediately prior to any Notice of Termination
      (or to a higher or equivalent office and position to which Executive
      agrees in writing, such agreement not to be unreasonably withheld)
      (provided, a notice not to extend under Section 1 hereof shall not be
      deemed such a failure), (iii) make any reduction in Executive's salary,
      (iv) adversely change the methodology pursuant to which Executive's bonus
      is determined or make any other material adverse change in any of
      Executive's employee benefits (other than any such benefit which is
      immaterial or inconsequential or any change which is required by law), (v)
      make such change or changes as would, taken as a whole, result in a
      material diminution in the functions, duties and responsibilities of
      Executive's position in the Company as of the date hereof or materially
      reduce the seniority of the person or persons within the Company to whom
      Executive reports as of the date hereof (recognizing, however, that no
      such changes shall be deemed to have occurred solely as a result of the
      change in the status of the Company to that of a wholly-owned subsidiary
      of Autotote by virtue of the Merger, including, without limitation, the
      reconstitution of the Board in a customary or appropriate manner for a
      subsidiary corporation or the elimination or diminution of those
      functions, duties or responsibilities associated with various positions at
      a public company or at a parent company in a consolidated group of
      companies); (vi) fail to obtain the express written assumption of this
      Agreement by any successor of the Company or any assignee of all or
      substantially all of its assets at or prior to such succession or
      assignment (such succession or assignment not relieving the Company or
      Autotote of any liability hereunder), (vii) breach this Agreement in any
      material respect which is not cured within fifteen (15) days after written
      notice from Executive to the Company, Executive shall be entitled to
      terminate his employment, effective immediately, and receive severance
      benefits under this Agreement as set forth in the remainder of this
      Section 8 upon the giving of written notice of termination from Executive
      to the Company (unless in any case referred to in the preceding clauses
      (i) through (vii), the Company shall at such time have grounds

                                      -6-
<PAGE>

      to terminate Executive for Just and Substantial Cause and shall have
      delivered to Executive a copy of the Statement of Just and Substantial
      Cause contemplated by Section 5 hereof, except that such written notice is
      not accompanied by a Notice of Termination.)

            (b) The Company shall pay to Executive as severance benefits under
      this Section 8:

                  (i) a lump sum on the thirtieth (30th) day following the Date
            of Termination, in an amount equal to the sum of (a) Executive's
            full Base Salary through the Date of Termination to the extent such
            Base Salary has not previously been paid through such date, at the
            rate in effect at the time written notice of termination is given
            and (b) any bonus or awards theretofore made to Executive which have
            not yet been paid to Executive.

                  (ii) no later than ninety (90) days following the end of the
            fiscal year in which the Date of Termination occurs, that pro rata
            portion of any bonus or award which would have been payable to
            Executive had Executive remained in employment with the Company
            during the entire year in which the Date of Termination occurred
            (Pro rata calculations under Section 6, Section 7 and Section 8 of
            this Agreement shall be determined by multiplying a fraction, the
            numerator of which is the number of whole months in such year prior
            to the Date of Termination and the denominator of which is twelve,
            times the bonus or award which would have been payable to Executive
            had the performance of the Company for the entire year continued on
            a basis annualized from the period of months during such year ended
            on the last day of the month preceding the Date of Termination); and

                  (iii) if such termination without cause or constructive
            termination occurs after the date of this Agreement, but on or
            before the date of the first (1st) anniversary thereof, a sum each
            month for a period of three (3) years after the Date of Termination,
            equal to one twelfth of the highest annual rate of Base Salary plus
            bonus paid to Executive during the twenty-four (24) month period
            immediately preceding the Date of Termination.

                  (iv) if such termination without cause or constructive
            termination occurs after the date of the first (1st) anniversary of
            this Agreement but on or before the date of the second (2nd)
            anniversary thereof, a sum each month for a period of two (2) years
            after the Date of Termination, equal to one twelfth of the highest
            annual rate of Base Salary plus bonus paid to Executive during the
            twenty-four (24) month period immediately preceding the Date of
            Termination.

                  (v) if such termination without cause or constructive
            termination occurs after the date of the second (2nd) anniversary of
            the date of this Agreement, a sum each month for a period of one (1)
            year after the Date of Termination, equal to one twelfth of the
            highest annual rate of Base Salary plus

                                      -7-
<PAGE>

            bonus paid to Executive during the twenty-four (24) month period
            immediately preceding the Date of Termination.

            (c) As a further severance benefit, the Company, at its expense,
      shall maintain in full force and effect, for Executive's continued benefit
      until the earliest of (i) during the applicable period in which severance
      is being paid under Section 8(b)(iii) (the "Severance Payment Period"),
      (ii) eighteen months after Executive's Date of Termination if at such time
      Executive is uninsurable under the Company's life, accident, medical and
      dental insurance plans, or (iii) the date Executive becomes entitled to
      participate in similar plans, programs or arrangements provided by
      Executive's subsequent employer: all life, accident, medical and dental
      insurance benefit plans and programs or arrangements in which Executive
      was entitled to participate immediately prior to the Date of Termination
      provided that Executive's continued participation is possible under the
      general terms and provisions of such plans and programs. In the event that
      Executive's participation in such plan or program is legally or
      contractually barred, the Company shall arrange to provide Executive for a
      period of not less than the Severance Period (eighteen (18) months if the
      reason Executive's participation is barred is that Executive is
      uninsurable) following Executive's Date of Termination, with benefits
      substantially similar to those which Executive would have been entitled to
      receive under such plans and programs or, if the Company is barred from
      doing so, it will pay to Executive in a lump sum an amount of cash equal
      on an after-tax basis to the cost to Executive of obtaining the benefits
      to be provided to Executive under this Section 8(c) (but which the Company
      is unable to provide or cause to be provided) for the period specified.
      The cost of such benefits shall be based on the cost to Executive of
      obtaining such benefits from one or more fiscally sound providers whose
      reputation and stature are substantially similar to the Company's
      applicable benefit providers immediately prior to Executive's Date of
      Termination. At the end of the period of coverage, Executive shall have
      the option to have assigned to Executive at no cost to Executive and with
      no apportionment of prepaid premiums (but without the necessity of the
      incurrence by the Company of any additional out-of-pocket transfer cost
      which Executive declines to reimburse), any assignable insurance policy
      owned by the Company and relating specifically to Executive.

            (d) As a severance benefit, if at any time it is required that
      Executive must include a portion or all of the severance benefits provided
      pursuant to this Section 8 in Executive's gross income for federal income
      tax purposes prior to the time Executive receives payment of such
      benefits, then the Company agrees to pay Executive, as soon as
      administratively feasible, an amount of cash sufficient to enable
      Executive to pay the full federal and state tax liability attributable to
      the inclusion of the severance benefits, or a portion thereof, in
      Executive's gross income. Any cash so paid to Executive shall directly
      reduce the amount of future installments, pro rata, of severance benefits
      payable to Executive as provided hereunder.

            (e) As a further benefit, the Company, at its expense, shall cause
      to be vested in Executive, free and clear title to the motor vehicle then
      being furnished to Executive by the Company at or prior to Executive's
      Date of Termination.

                                      -8-
<PAGE>

      9. LEGAL FEES, MITIGATION OF DAMAGES. The Company shall reimburse such
costs, legal fees and expenses as may be reasonably incurred by Executive in
contesting or disputing any such termination, or in seeking to obtain or enforce
any right or benefit provided by this Agreement if Executive is successful in
any material respect in connection with enforcing any of Executive's rights or
the Company's obligations under this Agreement in such dispute. Executive shall
not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise, nor shall the amount of any
payment provided for in this Agreement be reduced by any compensation earned by
Executive as the result of employment by another employer after the Date of
Termination, or otherwise. The Company and its subsidiaries and affiliates shall
have no right to set off payments owed to Executive under this Agreement against
amounts owed or claimed to be owed by the Executive to any of such persons under
this Agreement or otherwise.

      10. SUCCESSORS; BINDING AGREEMENT.

            (a) The Company will require any successor (whether direct or
      indirect, by purchaser, merger, consolidation or otherwise) to the
      business and/or assets of the Company to expressly assume and agree to
      perform this Agreement in the same manner and to the same extent that the
      Company would be required to perform it if no such succession had taken
      place. Failure of the Company to obtain such agreement shall constitute a
      material breach of this Agreement and shall entitle Executive to
      compensation from the Company in the same amount and on the same terms as
      Executive would be entitled hereunder if such succession had not occurred,
      except that for purposes of implementing the foregoing, the date of which
      any such succession becomes effective shall be deemed the Date of
      Termination, As used in this Agreement, "Company" shall mean the Company
      as hereinbefore defined and any successor to its business and/or assets as
      aforesaid which executes and delivers the agreement provided for in this
      Section 10 or which otherwise becomes bound by all the terms and
      provisions of this Agreement by operation of law.

            (b) This Agreement shall inure to the benefit of and be enforceable
      by Executive's personal or legal representatives, executors,
      administrators, successors, heirs, distributees, devisees and legatees. If
      Executive should die while any amounts are still payable to Executive
      hereunder, all such amounts, unless otherwise provided herein, shall be
      paid in accordance with the terms of this Agreement to Executive's
      devisee, legatee, or other designee of, if there be no such designee, to
      Executive's estate.

      11. NOTICE. All notices and other communications to be given or to
otherwise be made to any party to this Agreement shall be deemed to be
sufficient if contained in a written instrument delivered in person or duly sent
by certified mail or by a recognized national courier service, postage or
charges prepaid, (a) to the Company at 1500 Bluegrass Lakes Parkway, Alpharetta,
Georgia 30004, (b) to the Executive, at the address set forth on the last page
of this Agreement, or (c) to such other replacement address as may be designated
in writing by the addressee to the addressor.

                                      -9-
<PAGE>

      12. MISCELLANEOUS. To the extent that any applicable state or federal law,
rule or regulation confers upon Executive any greater benefit or right than that
set forth in this Agreement, such law, rule or regulation shall control in lieu
of the provisions hereof relating to such benefit or right.

      13. VALIDITY; SEVERABILITY. The invalidity or unenforceability of any
provision of this Agreement shall not effect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect. If any provision of this Agreement is held to be illegal, invalid, or
unenforceable under present or future laws effective, such provision shall be
fully severable and this Agreement shall be construed and enforced as if such
illegal, invalid, or unenforceable provision had never comprised a part hereof;
and the remaining provisions hereof shall remain in full force and effect and
shall not be affected by the illegal, invalid, or unenforceable provision or by
its severance herefrom. Furthermore, in lieu of such illegal, invalid, or
unenforceable provision, there shall be added automatically as a part of this
Agreement a provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible and still be legal, valid or
enforceable. It is acknowledged that any payment which may be made by the
Company to Executive under this Agreement is in the nature of employment and/or
severance and not a penalty payment. Should the obligation to make any payment
hereunder be held to be void or voidable as a penalty by a final non-appealable
judgment, this Agreement shall be deemed to provide an obligation on the part of
the Executive to render such consulting services as the Company may reasonably
request during the period of and in exchange for such payments as would
otherwise have been made by the Company as severance benefits and the parties
agree such payments shall constitute reasonable compensation for the value of
Executive's services during such period.

      14. CONFIDENTIALITY. During the term of his employment under this
Agreement, and thereafter during the Severance Payment Period (but in no event
longer than two (2) years after the term of this Agreement), the Executive will
not use or disclose, furnish or make accessible to anyone any Confidential
Information (as such term is hereinafter defined):

            (a) as used in this Agreement, the term "Confidential Information"
      shall mean trade secrets, confidential or proprietary information, and all
      other knowledge, know-how, information, documents or materials, owned,
      developed or possessed by Company, whether in tangible or intangible form,
      pertaining to the business of the Company, the confidentiality of which
      the Company takes reasonable measures to protect, including, but not
      limited to, the Company's research and development operations, products
      (including prices, costs, sales or content), processes, techniques,
      machinery, contracts, financial information or measures, business methods,
      future business plans, data bases, computer programs, designs, models,
      operating procedures, knowledge of the organization, and other information
      owned, developed or possessed by the Company; provided, however, that
      Confidential Information shall not include information that is or shall
      become generally known to the public or the trade without violation of
      this Section 14.

                                      -10-
<PAGE>

            (b) Notwithstanding anything to the contrary contained in this
      Section 14, in the event that the Executive is required to disclose any
      Confidential Information by court order or decree or in compliance with
      the rules and regulations of a governmental agency or in compliance with
      law, the Executive will provide the Company with prompt notice of such
      required disclosure so that the Company may seek an appropriate protective
      order and/or waive the Executive's compliance with the provisions of this
      Section 14. If, in the absence of a protective order or the receipt of a
      waiver hereunder, the Executive is advised by his counsel that such
      disclosure is necessary to comply with such court order, decree, rule,
      regulation or law, he may disclose such information without liability
      hereunder.

      15. DEDUCTIONS AND WITHHOLDING. The Executive agrees that the Company
and/or its subsidiaries or affiliated companies shall withhold from any and all
compensation required to be paid to the Executive pursuant to this Agreement all
Federal, state, local and/or other taxes which the Company determines are
required to be withheld in accordance with applicable statutes and/or
regulations from time to time in effect.

      16. ENTIRE AGREEMENT; GOVERNING LAW; AMENDMENT; WAIVER. This Agreement
sets forth the entire understanding of the parties and supersedes all prior
agreements or understandings, whether written or oral, with respect to the
subject matter hereof, including any prior severance benefit agreement. No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not set forth expressly in this Agreement. The validity, interpretation
construction and performance of this Agreement shall be governed by the laws of
the State of Georgia without giving effect to the conflict of laws principals
thereof, and any applicable federal laws of the United States of America. No
terms, conditions, warranties, other than those contained herein, and no
amendments or modifications hereto shall be binding unless made in writing and
signed by the parties hereto. No provisions of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing signed by Executive and the Chief Executive Officer of the Company or
such employee of the Company as may be specifically designated by the Board of
Directors of the Company. No waiver by either party hereto at any time of any
breach by the other part hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time.

      17. BINDING EFFECT. This Agreement shall extend to and be binding upon and
inure to the benefit of the parties hereto, their respective successors and
assigns; provided, however, that neither party shall have the right to assign,
transfer or convey this Agreement.

      18. TITLES. Titles of the headings herein are used solely for convenience
and shall not be used for interpretation or construing any work, section clause,
paragraph, or provision of this Agreement.

      19. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, and by different parties hereto in separate counterparts, each of
which shall be

                                      -11-
<PAGE>

deemed to be an original and all of which taken together shall constitute one
and the same Agreement. Delivery of an executed counterpart of a signature page
to this Agreement by telecopier shall be effective as delivery of a manually
executed counterpart of this Agreement.

      20. ENFORCEMENT. The provisions of this Agreement may be enforced by all
legal and equitable remedies available to the parties including specific
performance and injunction. Nothing herein shall be construed as prohibiting
either party from pursuing any other remedies available to it, including
recovery of damages.

      21. CONSTRUCTION. Each of the parties has agreed to the use of the
particular language of the provisions of this Agreement and all attached
exhibits, and any questions of doubtful interpretation shall not be resolved
solely by any rule or interpretation against the draftsman but rather in
accordance with the fair meaning thereof.

                 ***** SIGNATURES BEGIN ON FOLLOWING PAGE *****

                                      -12-
<PAGE>

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

                                    SCIENTIFIC GAMES INC.

                                    By: ______________________________________
                                    Its: President and Chief Executive Officer

                                    ATTEST:

                                    By:_______________________________________
                                    Its: _____________________________________

                                    EXECUTIVE

                                    __________________________________________

                                    __________________________________________
                                                  (PRINT NAME)

                                    __________________________________________
                                              (ADDRESS FOR NOTICE)

                                      -13-

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