Document:

Exhibit 10.1

 

AMENDMENT
ONE TO SOFTWARE SUPPLY AND SUPPORT

AGREEMENT

 

THIS
AMENDMENT TO SOFTWARE SUPPLY AND SUPPORT AGREEMENT (the “Amending
Agreement”) is made as of the 1st   day of February, 2008 (the “Effective
Date”), by and among:

 

(1)           CRYPTOLOGIC INC., an Ontario, Canada corporation whose office is
at 3rd Floor, 55 St. Clair Avenue West, Toronto;

 

(2)           WAGERLOGIC LIMITED, a Cyprus corporation and wholly-owned
subsidiary of  CryptoLogic, whose office
is at Nimeli Court 41 - 49 Agiou Nicolaou Street, Block A 3rd Floor Engomi,
2408 Nicosia, Cyprus (“WagerLogic”);

 

(3)           WPT ENTERPRISES MALTA LIMITED, a corporation to be incorporated
under the laws of Malta (“the Casino Licensee”);

 

(4)           WPT MALTA GROUP LIMITED, a corporation incorporated under the
laws of Malta (the “Poker Licensee”)
(the Casino Licensee and Poker Licensee also collectively referred to as the
“Licensees” or each a “Licensee”);

 

(5)           WPT. ENTERPRISES INC., a corporation whose office is at
5700 Wilshire Boulevard, Suite 350, Los Angeles, CA 90036.

 

RECITALS

 

(A)          WHEREAS, the parties hereto are parties to Software
Supply and Support Agreement dated the 24th day of August, 2007 (the
“Agreement”);

 

(B)           WHEREAS, the Licensee wishes WagerLogic to develop and
WagerLogic agrees to develop a virtual casino and two Additional Language Poker
Rooms for the Licensee on the terms and conditions set out in the Agreement and
herein;

 

NOW THEREFORE, in consideration of the mutual
promises and agreements set forth in this Amending Agreement, the parties
hereto agree as set forth below.

 

General

 

1.1              The Agreeement is hereby amended as may be necessary
to give effect to the provisions hereof. In
all other respects, the terms and conditions of the Agreement are adopted and
confirmed.

 

1.2              Any undefined capitalized term herein shall have the
same meaning as set out in the Agreement.

 

1.3              Each of the parties to this Amending Agreement shall
pay its own costs (including legal costs) and expenses (including taxation)
incurred in 

 

1

 

connection with the
negotiation, preparation and performance of this Amending Agreement.

 

1.4              This Amending Agreement may be signed in two or more
counterparts (which may be facsimile copies), each of which shall be deemed an
original, but all of which together shall constitute the same instrument.

 

WPT Casino

 

1.5              Pursuant
to Section 3.4.2 of the Agreement, the Casino Licensee has chosen to
exercise its option to have WagerLogic develop for the Casino Licensee the Full
Casino Option.

 

1.6              The
WPT Casino shall be delivered in English by WagerLogic to the Casino Licensee
within three (3) months of receipt by WagerLogic of the mutually agreeable
detailed functionality and specifications for the WPT Casino
(“Specifications”).  The estimated
delivery date is currently June 30, 2008 
(the “Casino Delivery Date”).  A
firm Casino Delivery Date shall be provided by WagerLogic to the Casino License
upon receipt by WagerLogic of  the
Specifications.

 

1.7              Upon
delivery of the WPT Casino, the WPT Casino shall replace the Casino in Poker in
the WPT Poker Room as the casino property accessible by End Users of the
WPT Poker Room.

 

1.8              Section 5.3 of the Agreement is hereby amended by:

 

1.8.1              deleting reference to “USD
$2,500,000” and substituting therefor “USD$750,000.00”;

 

1.8.2              deleting reference to “USD
$625,000” and substituting therefor “USD$187,500.00”. and

 

1.8.3              adding to the end 5.3(d) the sentence
“Notwithstanding the foregoing, it is expressly agreed that, the Licensee shall
have the option (the “WPT Casino Termination Option”), exercisable in the
thirty day period immediately following the twelve month anniversary date of
the go-live date of the WPT Casino, and further exercisable in the thirty day
period immedaitely following each subsequent twelve month anniversary date of
the go-live date of the WPT Casino, to advise WagerLogic  that the Licensee no longer wishes to use the
WPT Casino, in which case, Wagerlogic shall decomission the WPT Casino in
accordance with the reasonable 
instructions of the Licensee, and from and after the date of
decommisioning of the WPT Casino, the 
Licensee shall no longer be obligated to pay such portion of the Annual
WPT Casino Minimum as relates to the the period from and after the date of
decommissioning.  Notwithstanding the
foregoing, upon presentation of invoice by WagerLogic to Licensee, Licesee
shall be responsible for actual costs related to WagerLogic’s decomissioning of
the WPT Casino provided that such costs do not exceed Five Thousand Dollars
($5,000).  In such 

 

2

 

event, should the
Licensee maintain the Casino in Poker, which shall be at Licensee’s sole
discretion, it shall once again become liable to pay the Annual Casino in Poker
Minimum from and after the date of decommissioning of the WPT Casino.  Licensee shall be entitled, at any time
following the launch of the WPT Casino, to cancel the Casino in Poker, without
futher obligation to pay such portion of the Annual Casino in Poker Minimum by
the provision of Thirty (30) days written notice to WagerLogic.

 

Addition Language Poker Rooms

 

1.9              Pursuant to Section 3.5 of the Agreement, the
Poker Licensee has chosen to exercise its option to have WagerLogic develop two
Additional Language Poker Rooms with one being in Spanish and the other in
German.

 

1.10            The
Poker Licensee agrees to pay WagerLogic one hundred ($100,000) dollars for the
development of the two foregoing Additional Language Poker Rooms (“ALPR
Development Fee”).

 

1.11            The
Poker Licensee agrees to pay to WagerLogic fifty (50%) of the ADLR Development
Fee within ten (10) days after execution of this Amending Agreement and
the balance of the ADLR Development Fee within thirty (30) days of the ALPR
Delivery Date (as defined below).

 

1.12            The estimated delivery date for the two foregoing
Additional Language Poker Rooms is currently April 30, 2008 (the “ALPR
Delivery Date”). A firm ADLR Delivery Date shall be provided by WagerLogic to
the Casino License upon receipt by WagerLogic of  the Specifications.

 

1.13            Notwithstanding
Section 5.4(b) of the Agreement, the parties agree and confirm that
no Minimum Language Fee shall be payable by the Poker Licensee with respect to
the Spanish and German Additional Language Poker Rooms delivered by  WagerLogic pursuant to this Amending
Agreement.

 

1.14            Section 5.4(b)(ii) of
the Agreement is hereby deleted in its entirety and the following substituted
therefore:

 

“From and after January 1, 2009, there
will be no development fees or Minimum Language Fee payable for the development
of Additional Language Poker Rooms by WagerLogic for the Poker Licensee;
provided that delivery of any Additional Language Poker Rooms by WagerLogic to
the Poker Licensee shall be subject to the consent of WagerLogic to develop
such Additional Language Poker Room, having regard to WagerLogic’s expectation
that a reasonable economic benefit will accrue to WagerLogic from the
development of such Additional Language Poker Room. Notwithstanding the
foregoing, WagerLogic acknowledges and agrees that the languages of Chinese,
French and Italian shall be automatically deemed to be of economic benefit and
a 

 

3

 

Additional Language Poker Room in respect
of each such langauge shall be developed upon the request of Poker Licensee.”

 

Acquisition
Marketing Activities

 

1.15            In the twelve (12) month
period from the Casino Delivery Date hereof, the Licensee hereby agrees that it will expend at least five million
($5,000,000.00) United States Dollars on marketing initiatives and/or hard and
soft dollar promotions focused on the acquisition of new End User. Licensee
shall, upon the request of WagerLogic, provide WagerLogic with satisfactory
written evidence confirming the foregoing expenditure.

 

[The rest of this page intentionally left blank. Signatures on
next page.]

 

4

 

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

 

	
  CRYPTOLOGIC INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Brian Hadfield

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: Brian Hadfield

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: President and CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WAGERLOGIC LIMITED

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Anthony Demetriades

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: Anthony Demetriades

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: Managing Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WPT MALTA GROUP LIMITED

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Adam Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: Adam Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: General Counsel

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WPT ENTERPRISES MALTA LIMITED

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Adam Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: Adam J. Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WPT ENTERPRISES INC.

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Adam Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: Adam J. Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  General Counsel and Secretary to the Board of Directors.

  	
   

  
				

 

5Exhibit 10.2

 

TERM SHEET AND AMENDMENT TWO TO SOFTWARE SUPPLY AND

SUPPORT AGREEMENT

 

THIS TERM
SHEET
is made as of the 5th Day of March, 2008 (the “Effective Date”), and
the AMENDMENT TWO TO SOFTWARE SUPPLY AND SUPPORT
AGREEMENT shall be effective, when and if such conditions are met as
set forth in this Term Sheet.

 

WHEREAS CryptoLogic, Inc. (“CryptoLogic”), WagerLogic Limited (“WagerLogic”),
Coasis N.V. (carrying on business as “Classic Poker”), Andrew Song and Henrik
Witt entered into a Software Supply and Support Agreement dated January 1,
2007 (the “Supply Agreement”) which conveys certain of significant value to
WagerLogic;

 

WHEREAS CryptoLogic, WagerLogic, WPT Enterprises Inc., WPT Enterprises
Malta Limited, and WPT Malta Group Limited (the latter three companies to be
known as “WPT”) are parties to a Software Supply and Support Agreement dated August 24,
2007 (the “WPT Supply Agreement’);

 

AND WHEREAS WPT is desirous of purchasing the assets Classic Poker (the
“Assets’) and hiring the principal, Henrik Witt, to become an employee of their
online gaming department;

 

AND WHEREAS CyptoLogic asserts that certain of the terms and conditions
of the Supply Agreement grant to WagerLogic rights which might impede the
acquisition of the Assets and the employment of Mr. Witt by WPT (the “WagerLogic
Rights”);

 

AND WHEREAS WagerLogic is willing to waive such Wagerlogic Rights to
the extent necessary in order to allow the purchase of Classic Poker by and
employment of Henrik Witt by WPT in exchange for certain consideration to be
provided by WPT as set out herein;

 

NOW THEREFORE, in consideration of good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties covenant
and agree as follows:

 

1.               It is the intention
of the parties hereto to enter into a definitive agreement relating to the
subject matter of this Term Sheet and Amendment Two, which definitive agreement
shall contain all of the terms and conditions hereof and all such other terms
and conditions as are usual and customary in respect of a transaction of this
nature; provided that until such definitive agreement is executed by the
parties, this Term Sheet And Amendment Two shall represent binding obligations
of the parties hereto.

 

 

2.               The Supply
Agreement includes the following provision relating to the Prop Player program
being operated by WagerLogic, WPT and WagerLogic hereby agree that,
contemporaneous with the completion of the acquisition of Classic Poker by WPT,
the WPT Supply Agreement shall include a similar provision in relation to the
room related to Classic Poker, amended mutatis mutandis:

 

“Prop Player Program.  It is expressly acknowledged that, through
arrangements between WagerLogic and the operator of the Existing Poker Room,
WagerLogic presently operates a Prop Player program through the Existing Poker Room (the
“Prop Program”).  It is hereby agreed
that, WagerLogic may, in its sole discretion, choose to operate the Prop
Program through the Licensee Poker Room. 
The end users playing Poker in the Licensee Poker Room through the
Prop Program (the “Prop Players”) shall be deemed not to be End Users for the
purposes of this Agreement, and no revenues generated by the said Prop Players
shall be included in the calculation of Net Revenues hereunder.  The Licensee shall allow WagerLogic to set
the economic parameters associated with the play of the Prop Players in the
Licensee Poker Room, such as the eligibility for, and quantum of, rake back and
Promotion Deposits, and shall allow WagerLogic to alter such economic
parameters at any time, in its sole and exclusive discretion.  Each week (Monday through Sunday) during the
Term, WagerLogic shall determine whether the Prop Players have generated, based
only on revenues and expenses attributed directly to them, positive or negative
revenue for the subject week (the “Prop Player Revenue”).  It is expressly acknowledged and agreed that
all financial transactions associated with the Prop Players shall be processed
through ECash System.  In the event that,
in respect of any week, the Prop Player Revenue is negative, WagerLogic shall
be responsible for funding the amount of such negative Prop Player
Revenue.  In the event that, in respect
of any week, the Prop Player Revenue is positive, WagerLogic shall pay to the
Licensee an amount equal to the said positive Prop Player Revenue.  Notwithstanding anything herein contained,
all Data associated with the Prop Players shall be deemed to be the property of
WagerLogic.”

 

For purpose of clarity, the
forgoing Prop Player clause shall only relate to the use of the room used as
Classic Poker and shall not be construed to apply to the WPT room.

 

3.               WPT and WagerLogic
agree that, forthwith upon the execution of this Agreement, the WPT Supply Agreement
shall be amended by extending the term of the WPT Supply Agreement by a period
of one (1) year under the same terms and conditions as set out in the WPT
Supply Agreement, save and except that as Sections 5.2.2 (ii), (iii) and
)iv) of the WPT Supply Agreement shall be amended as set forth in Section 5
hereof.

 

 

4.               WagerLogic agrees
to do the following, as requested by WPTE and subject to the Agreement of
Classic Poker, in regard to the transition of the properties: open up access to
Classic Poker data (D6 property), providing the ability to do combined
reporting of D6 and DJ properties, the ability to run D6 and DJ promotions and
specific tournaments, both as individual properties or combined.  WagerLogic shall provide separate account
reconciliations for the properties as well as a combined reconciliation, the
parties understanding that from and after the completion of the purchase of
Classic Poker by WPT, all rates and guarantees work off of the combined.

 

5.               The parties hereto
agree that, effective February 1, 2008 (i.e., applicable to revenues
generated as of February 1, 2008) the WPT Supply Agreement shall be
amended by replacing the existing Paragraph 5.2.2 with the following:

 

WagerLogic Net
Revenues.  In respect of the Net Revenue
generated during each Month of the Term, WagerLogic shall be entitled to
receive the following portion of the Net Revenue as consideration for the
granting of the license of use its Software (collectively  referred to as “WagerLogic Net Revenues”):

 

i.                                          Zero
(0%) percent of the first $37,500 of Net Poker Revenue generated during the
Month;

 

ii.                                       Twenty-one (21%) percent of the Net
Revenue between $37,500 and $500,000, generated during the Month; and

 

iii.                                    Twenty (20%) percent of the Net
Revenue in excess of $500,000 generated during the Month.

 

6.               Each of the parties agrees to keep confidential
any and all information with respect to the other party which it has received
or may in the future receive in connection with this Term Sheet which is not
otherwise available to the general public without restriction, as well as the
existence or terms of this Term Sheet (the “Confidential
Information”). 
Notwithstanding the foregoing, each party may disclose the Confidential
Information (i) to the extent required by a court of competent
jurisdiction or other governmental authority or otherwise as required by law;
provided, however that the party required to so disclose the Confidential
Information of the other party shall use commercially reasonable efforts to
minimize such disclosure and shall provide written notice of such disclosure
and consult with and assist the other party in obtaining a protective order
prior to such disclosure or (ii) on a “need-to-know” basis under an
obligation of confidentiality to its legal counsel, accountants, banks and
other financing sources and their advisors.

 

 

	
  Dated this 5th day of March, 2008.

  	
   

  
	
   

  	
   

  
	
  CRYPTOLOGIC INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Michael Starzynski

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:  Michael Starzynski

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 
      CTO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WAGERLOGIC LIMITED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/Anthony
  Demetriades

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:Anthony
  Demetriades

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:  Managing Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WPT MALTA GROUP LIMITED

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Adam Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:  Adam Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 
      Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WPT ENTERPRISES MALTA LIMITED

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/   Adam Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:  Adam J. Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WPT ENTERPRISES INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/   Adam Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: Adam J. Pliska

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:  

  	
  General Counsel and Secretary to the Board of Directors.

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