Document:

Employment Agreement - Clifton Lind

 Exhibit 10.16 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 This Executive Employment Agreement (“Agreement”) is made effective as of September 9, 2004
(“Agreement Date”), by and between Multimedia Games, Inc., a Texas corporation (“Company”), and Clifton E. Lind (“Executive”) (either party individually, a
“Party”; collectively, the “Parties”). 
  
 WHEREAS, the Company desires to retain the services of Executive as President (“President”) and Chief Executive Officer (“CEO”); 
  
 WHEREAS, the Parties desire to enter into this Agreement to set forth the
terms and conditions of Executive’s employment by the Company and to address certain matters related to Executive’s employment with the Company; 
  
 NOW, THEREFORE, in consideration of the foregoing and the mutual provisions contained herein, and for other good and valuable consideration, the Parties
hereto agree as follows: 
  
 1. Employment. Company hereby
employs Executive, and Executive hereby accepts such employment, upon the terms and conditions set forth herein. 
  
 2. Duties. 
  
 2.1 Position. Executive is employed as President and CEO and shall generally have the duties and responsibilities consistent with that position and
assigned to him by the Board of Directors of the Company (the “Board”). Executive shall perform faithfully and diligently all duties assigned to Executive as are consistent with the position of CEO and President and will
report directly to the Board. 
  
 2.2 Standard of
Conduct/Full-time. During the term of this Agreement, Executive will act loyally and in good faith to discharge the duties of President and CEO, and will abide by all lawful policies and decisions made by the Board, as well as all applicable
federal, state and local laws, regulations or ordinances. In this capacity as CEO and President, Executive will act solely on behalf of Company. Executive shall devote substantially all of Executive’s full business time and efforts to the
performance of Executive’s assigned duties for Company, unless Executive notifies the Board in advance of Executive’s intent to engage in other paid work and receives the Board’s express written consent to do so. Such consent will not
be withheld unreasonably. Moreover, Executive may receive compensation for services in connection with passive investments. 
  
 2.3 No Conflict of Interest. Executive will not, at any time while serving as CEO of Company, accept any engagement for work, paid or unpaid, that
at the time such engagement is undertaken creates a conflict of interest with Company in the reasonable judgment of the Board. 
  
 2.4 Work Location. Executive’s principal place of work shall be located in Austin, Texas, or such other location as the Parties may agree upon
from time to time. 
  

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 3. Term. 
  

3.1 Initial Term. The initial term will commence on the Agreement Date (the “Effective Date”). Unless sooner terminated
in accordance with the terms of this Agreement, the employment relationship pursuant to this Agreement shall be for an initial term commencing on the Effective Date set forth above and continuing for three (3) years from the Effective Date (the
“Initial Term”). 
  
 3.2 Renewal.
On completion of the Initial Term specified in Section 3.1 above, this Agreement will automatically renew for subsequent one-year terms unless either Party provides ninety (90) days’ advance written notice to the other that such Party does not
wish to renew the Agreement for a subsequent one-year term. In the event either Party gives notice of nonrenewal pursuant to this Section 3.2, this Agreement will expire at the end of the then-current term. 
  
 4. Compensation. 
  
 4.1 Base Salary. As compensation for Executive’s performance of
Executive’s duties hereunder, Company shall pay to Executive a salary of $450,000 per year, payable in equal monthly installments and in accordance with the normal payroll practices of Company, less required deductions for state and federal
withholding tax, social security and all other employment taxes and authorized payroll deductions. 
  
 4.2 Stock Options. Subject to approval by the Board, Company may from time to time grant to Executive options to purchase shares of Company’s
common stock (“Future Options”). Future Options will be subject to the terms and conditions of one of the Company’s Stock Option Plans as designated by the Board (the “Plan”). Future Options will
also be subject to the terms and conditions contained in the special form of option agreement previously adopted by the Board for senior executives, a form of which is attached hereto as Exhibit A (the “Form Option
Agreement”) and shall vest over a period determined at the time of grant in accordance with the terms of the Form Option Agreement and the Plan. 
  
 4.3 Incentive Compensation. Executive shall be entitled to receive incentive compensation on an annual basis determined by the Compensation
Committee of the Board of Directors, following a performance review conducted by the Compensation Committee pursuant to guidelines the Compensation Committee establishes in advance and communicates to Executive in writing. 
  
 4.4 Performance and Salary Review. The Board will periodically review
Executive’s performance on no less than an annual basis. Adjustments to salary or other compensation, if any, will be made by the Board in its sole and absolute discretion. Executive’s salary may not be reduced during any period of
employment under this Agreement without the written consent of Executive. 
  
 5. Customary Fringe Benefits and Facilities. Executive will be eligible for all customary and usual fringe benefits generally available to executives of Company subject to the terms and conditions of
Company’s benefit plan documents. Company reserves the right to change or eliminate the fringe benefits on a prospective basis, at any time, effective upon notice to Executive; provided, however, that during any period of employment
under this Agreement, Executive (and his spouse and eligible dependents) shall be entitled to receive all benefits of employment generally available to other members of Company’s management and 

  

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those benefits for which key executives are or shall become eligible, when and as Executive becomes eligible therefor, including, without limitation, group
health, life and disability insurance benefits and participation in Company’s 401(k) plan. Company further agrees to furnish Executive with such assistance and accommodations (i.e., an office in the size, type and quality as provided to
Executive prior to the Effective Date) as shall be suitable to the character of Executive’s position with Company and adequate for the performance of Executive’s duties hereunder. 
  
 6. Business Expenses. Executive will be reimbursed for all reasonable,
out-of-pocket business expenses incurred in the performance of Executive’s duties on behalf of Company. To obtain reimbursement, expenses must be submitted promptly with appropriate supporting documentation in accordance with Company’s
policies. 
  
 7. Termination of Executive’s
Employment. 
  
 7.1 Termination for Cause by Company.
Company may terminate Executive’s employment immediately at any time for Cause. For purposes of this Agreement, “Cause” is defined as: (a) theft, material dishonesty, or intentional falsification of any employment or
Company records; (b) improper and intentional disclosure of the Company’s confidential or proprietary information that materially harms the Company; (c) any action which has a materially detrimental effect on Company’s reputation or
business; (d) Executive’s failure or inability to perform his duties (other than for reasons of physical or mental incapacity), after written notice from Company and a reasonable opportunity to cure, in accordance with the policies and
decisions of the Board; (e) Executive’s conviction (including any plea of guilty or nolo contendere) for any criminal act that materially impairs his ability to perform his duties for the Company; or (f) a material breach of this agreement by
Executive which is not cured within thirty (30) days of receipt by Executive of reasonably detailed written notice from Company. 
  
 (a) Consequences of Termination for Cause. In the event Executive’s employment is terminated for Cause, Executive shall be entitled to
receive only unpaid Base Salary then in effect, prorated to the date of termination, together with any amounts to which Executive is entitled pursuant to Sections 5 and 6 of this Agreement. Vesting under any and all stock options held by Executive
will cease on the effective date of Executive’s termination with Cause. All other Company obligations to Executive pursuant to this Agreement will become automatically terminated and completely extinguished. Executive will not be entitled to
receive the Severance Payments described in Section 7.2, below. 
  
 7.2 Termination Without Cause by Company. Company may terminate Executive’s employment under this Agreement without Cause at any time on thirty (30) days’ advance written notice to Executive. 
  
 (a) Consequences of Termination Without Cause. In the event
Executive’s employment is terminated without Cause, Executive will receive: (1) unpaid Base Salary then in effect, prorated to the date of termination, together with any amounts to which Executive is entitled pursuant to Sections 5 and 6 of
this Agreement; (2) ratably, in equal monthly installments in accordance with the Company’s standard payroll practice, his Base Salary for eighteen (18) months from the termination date plus one year’s expected incentive compensation
prorated for the percentage of the year that has elapsed as of the date of such termination (assuming for purposes of calculating the incentive compensation amount, satisfaction of all performance based milestones by both Company and the Executive);
and (3) full acceleration of the vesting of any unexercisable or unvested portion of all outstanding 

  

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options then held by Executive (Sections 7.2(a)(2) and 7.2(a)(3) collectively referred to as the “Severance Payments”); provided that
Executive: (a) complies with all surviving provisions of this Agreement, including without limitation those provisions specified in Section 8, below; (b) executes a full general release, releasing all claims, known or unknown, that Executive may
have against Company arising out of or any way related to Executive’s employment or termination of employment with Company, in substantially the form attached hereto as Exhibit B, or in another form that is acceptable to Company and
Executive, provided that such release shall exclude amounts due or to become due to Executive as contemplated by this Agreement. All other Company obligations to Executive will be automatically terminated and completely extinguished upon
termination of employment. 
  
 7.3 Termination by Executive for
Good Reason. Executive may terminate his employment with the Company for “Good Reason” at any time on five (5) days’ advance written notice to Company. For purposes of this Agreement, “Good Reason” shall
mean one or more of the following circumstances: (a) a material breach of this Agreement, following written notice delivered to the Company and a reasonable opportunity, not to exceed fourteen (14) days, for the Company to cure; (b) any substantial
diminution of Executive’s authority, duties, or responsibility; (c) a Change of Control (as that term is defined below); or (d) a change in Executive’s employment duties with Company such that Executive is required to relocate outside of
the Austin, Texas metropolitan area in connection with his employment with Company (any of (b), (c) or (d) shall not be considered Good Reason unless undertaken without Executive’s express written consent). 
  
 (a) Consequences of Termination by Executive. In the event
Executive’s employment with the Company is terminated by Executive for Good Reason, Executive will be entitled to receive unpaid Base Salary then in effect, prorated to the date of termination, together with any amounts to which Executive is
entitled pursuant to Sections 5 and 6 of this Agreement, as well as the Severance Payments described in Section 7.2, above, provided that Executive complies with the conditions to receiving the Severance Payments. All other Company
obligations to Executive will be automatically terminated and completely extinguished upon termination of employment. 
  
 7.4 Voluntary Resignation by Executive. Executive may voluntarily resign from his position with Company for any reason, at any time after the
Effective Date, on five (5) days’ advance written notice to the Company. 
  
 (a) Consequences of Voluntary Resignation of Executive. In the event of Executive’s resignation for other than Good Reason, Executive will be entitled to receive only the unpaid Base Salary then in effect,
prorated through the date of termination, together with any amounts to which Executive is entitled pursuant to Sections 5 and 6 (including any that have accrued through the five-day notice period). In addition, Executive will receive an additional
amount (to be paid ratably in equal monthly installments) equal to Executive’s Base Salary for eighteen (18) months, provided that Executive executes a full general release, releasing all claims, known or unknown, that Executive may have
against Company arising out of or any way related to Executive’s employment or termination of employment with Company, in substantially the form attached hereto as Exhibit B, or in another form that is acceptable to Company and
Executive, provided that such release shall exclude amounts due or to become due to Executive as contemplated by this Agreement. All other Company obligations to Executive pursuant to this Agreement will become automatically terminated and
completely extinguished upon termination of employment. 
  

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 7.5 Termination Upon A Change of Control. 
  
 (a) Payments Upon Termination. If Executive’s employment is
terminated by Company or Executive for any reason, within twelve (12) months after a Change of Control (as that term is defined below), Executive shall be entitled to receive the unpaid Base Salary then in effect, prorated through the date of
termination, together with any amounts to which Executive is entitled pursuant to Sections 5 and 6. In addition, Executive will receive the Severance Payments described in Section 7.2, above, provided that Executive complies with the conditions to
receiving the Severance Payments. 
  
 (b) Change of
Control. A “Change of Control” is defined as any one of the following occurrences: 
  
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), other than a trustee or other fiduciary holding securities of Company under an employee benefit plan of Company, becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of the securities of Company representing 50% or more of (A) the outstanding shares of common stock of Company or (B) the combined voting power of the Company’s then-outstanding securities; or 
  
 (ii) the sale or disposition of all or substantially all of Company’s
assets (or any transaction having similar effect is consummated); or 
  
 (iii) Company is party to a merger or consolidation that results in the holders of voting securities of Company outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least 50% of the combined voting power of the voting securities of Company or such surviving entity outstanding immediately after such merger or consolidation; or 
  
 (iv) a liquidation or dissolution of the Company. 
  
 7.6 Termination of Employment Upon Nonrenewal. In the event either
Party decides not to renew this Agreement for a subsequent one-year term in accordance with Section 3.2 above, the Agreement will expire and Executive’s employment with Company will terminate. Such termination shall be deemed a termination
without Cause by the Company pursuant to Section 7.2, if the Company is unwilling to renew this Agreement, or a voluntary resignation by Executive without Good Reason pursuant to Section 7.4, if Executive is unwilling to renew this Agreement.

  

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 8. Non-Competition. 
  
 8.1 Consideration For Promise To Refrain From Competing. Executive agrees that Executive’s services are special
and unique, that Company’s disclosure of confidential, proprietary information and specialized training and knowledge to Executive, and that Executive’s level of compensation and benefits, including the amount of the Severance Payments,
are partly in consideration of and conditioned upon Executive not competing with Company following the termination of his employment. Executive acknowledges that such consideration is adequate for Executive’s promises contained within this
Section 8. 
  
 8.2 Promise To Refrain From Competing.
Executive understands Company’s need for Executive’s promise not to compete with Company is based on the following: (a) Company has expended, and will continue to expend, substantial time, money and effort in developing its proprietary
information; (b) Executive will in the course of Executive’s employment develop, be personally entrusted with and exposed to Company’s proprietary information; (c) Company is engaged in the highly insular and competitive gaming technology
industry; (d) Company provides products and services nationally and internationally; and (e) Company will suffer great loss and irreparable harm if Executive were to enter into competition with Company. Therefore, in exchange for the consideration
described in Section 8.1 above, Executive agrees that during Executive’s employment with Company, and for eighteen (18) months following the effective date of the termination of Executive’s employment with the Company for any reason,
including without limitation termination following a Change of Control (the “Covenant Period”), Executive will not either directly or indirectly, whether as an owner, director, officer, manager, consultant, agent or employee:
(i) work for or provide services or assistance to a competitor of Company, which is defined to include those entities or persons in the business of developing, marketing, selling and supporting technology to or for gaming businesses in which the
Company engages or proposes to engage or in which the Company has an actual intention, as evidenced by the Company’s written business plans to engage, in any country in which Company does business (the “Restricted
Business”); or (ii) make or hold any investment in any Restricted Business, whether such investment be by way of loan, purchase of stock or otherwise, provided that there shall be excluded from the foregoing the ownership of not more
than 1% of the listed or traded stock of any publicly held corporation. For purposes of this Section 8, the term “Company” shall mean and include Company, any subsidiary or affiliate of Company, and any successor to the
business of Company (by merger, consolidation, sale of assets or stock or otherwise). 
  
 8.3 Reasonableness of Restrictions. Executive represents and agrees that the restrictions on competition, as to time, geographic area, and scope of activity, required by this Section 8 are reasonable, do not
impose a greater restraint than is necessary to protect the goodwill and business interests of Company, and are not unduly burdensome to Executive. Executive expressly acknowledges that Company competes on an international basis and that the
geographical scope of these limitations is reasonable and necessary for the protection of Company’s trade secrets and other confidential and proprietary information. Executive further agrees that these restrictions allow Executive an adequate
number and variety of employment alternatives, based on Executive’s varied skills and abilities. Executive represents that Executive is willing and able to compete in other employment not prohibited by this Agreement. 
  
 8.4 Reformation if Necessary. In the event a court of competent
jurisdiction determines that the geographic area, duration, or scope of activity of any restriction under this Section 8 and its subsections is unenforceable, the restrictions under this section and its 

  

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subsections shall not be terminated but shall be reformed and modified to the extent required to render them valid and enforceable. 
  
  
 9. Confidentiality and Proprietary Rights. Executive agrees to read, sign and abide by Company’s Employee Innovations and Proprietary Rights Assignment Agreement, which was previously executed by Executive and incorporated
herein by reference. 
  
 10. Nonsolicitation. 

 
 10.1 Nonsolicitation of Customers or Prospects. Executive
acknowledges that information about Company’s customers is confidential and constitutes trade secrets. Accordingly, Executive agrees that during Executive’s employment with Company, and for twelve (12) months from the date of
Executive’s termination, Executive will not, either directly or indirectly, separately or in association with others, interfere with, impair, disrupt or damage Company’s relationship with any of its customers or customer prospects by
soliciting or encouraging others to solicit any of them for the purpose of diverting or taking away business from Company. 
  
 10.2 Nonsolicitation of Company’s Employees. Executive agrees that during Executive’s employment with Company, and for eighteen (18)
months from the date of Executive’s termination, Executive will not, either directly or indirectly, solicit or encourage any of Company’s employees or cause others to solicit or encourage any of Company’s employees to discontinue
their employment with Company. 
  
 11. Injunctive Relief.
Executive acknowledges that Executive’s breach of the covenants contained in Sections 8-10 (collectively “Covenants”) would cause irreparable injury to Company and agrees that in the event of any such breach, Company
shall be entitled to seek temporary, preliminary and permanent injunctive relief. 
  
 12. Agreement to Arbitrate. To the fullest extent permitted by law, and pursuant to the American Arbitration Association’s Rules for the Resolution of Employment Disputes, Executive and Company agree to
arbitrate any controversy, claim or dispute between them arising out of or in any way related to this Agreement, the employment relationship between Company and Executive and any disputes upon termination of employment, including but not limited to
breach of contract, tort, discrimination, harassment, wrongful termination, demotion, discipline, failure to accommodate, family and medical leave, compensation or benefits claims, constitutional claims; and any claims for violation of any local,
state or federal law, statute, regulation or ordinance or common law. Claims for breach of Company’s Employee Innovations and Proprietary Rights Agreement, claims relating to physical torts, the right to workers’ compensation, and
unemployment insurance benefits and Company’s right to obtain injunctive relief pursuant to Section 11, above are excluded, and claims for enforcement of the Parties’ rights under the Covenants, are excluded. For the purpose of this
agreement to arbitrate, references to “Company” include all parent, subsidiary or related entities and their employees, supervisors, officers, directors, agents, pension or benefit plans, pension or benefit plan sponsors, fiduciaries,
administrators, affiliates and all successors and assigns of any of them, and this Agreement shall apply to them to the extent Executive’s claims arise out of or relate to their actions on behalf of Company. 
  

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 13. General Provisions. 
  
 13.1 Successors and Assigns. The rights and obligations of Company under this Agreement shall inure to the benefit of
and shall be binding upon the successors and assigns of Company. Executive shall not be entitled to assign any of Executive’s rights or obligations under this Agreement other than vested rights to receive payments hereunder. 
  
 13.2 Waiver. Either Party’s failure to enforce any provision of
this Agreement shall not, unless confirmed in writing by the Party against whom waiver is urged, in any way be construed as a waiver of any such provision in ay other circumstance, or prevent that Party thereafter from enforcing each and every other
provision of this Agreement. 
  
 13.3 Severability. In the
event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being
intended that the Parties shall receive the benefit contemplated herein to the fullest extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed
deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby. 
  
 13.4 Interpretation; Construction. The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this
Agreement. This Agreement has been drafted by legal counsel representing Company, but Executive has participated in the negotiation of its terms. Furthermore, Executive acknowledges that Executive has had an opportunity to review and revise the
Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting Party shall not be employed in the interpretation of this
Agreement. 
  
 13.5 Governing Law. This Agreement will be
governed by and construed in accordance with the laws of the United States and the State of Texas. Each Party consents to the jurisdiction and venue of the state or federal courts in Travis County, Texas, if applicable, in any action, suit, or
proceeding arising out of or relating to this Agreement. 
  
 13.6
Notices. Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated: (a) by personal delivery when delivered personally; (b) by overnight courier upon written
verification of receipt; (c) by telecopy or facsimile transmission upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt. Notice shall be sent to the
addresses set forth below, or such other address as either Party may specify in writing. 
  
 13.7 Survival. Executive’s right to receive payments contemplated by this Agreement to continue beyond his employment, shall survive except to the extent expressly provided otherwise. To the extent
expressly contemplated hereunder or reasonably contemplated to continue beyond the termination of Executive’s employment, the following provisions shall also survive: Section 8 (“Non-Competition”), 9 (“Confidentiality and
Proprietary Rights”), 10 (“Nonsolicitation”), 11 (“Injunctive Relief”), 12 (“Agreement to Arbitrate”), 13 (“General Provisions”) and 14 (“Entire Agreement”). 
  

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 14. Entire Agreement. This Agreement, including the Company Employee Innovations and Proprietary
Rights Assignment Agreement and the Form Option Agreement, constitutes the entire agreement between the Parties relating to this subject matter and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements,
whether written or oral. This Agreement may be amended or modified only with the written consent of Executive and Company. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. 
  
 [The remainder of this page is intentionally left blank.] 

 

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 THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED
HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW. 
  

									
	 	 	 	 	EXECUTIVE
				
	Dated:	 	 September 9, 2004
	 	 	 	/s/ Clifton E. Lind
	`	 	 	 	 	 	Clifton E. Lind
				
	 	 	 	 	 	 	 ADDRESS

				
	 	 	 	 	 	 	 
			
	 	 	 	 	COMPANY
				
	Dated:	 	 September 9, 2004
	 	By:	 	/s/ Thomas Sarnoff
	`	 	 	 	 	 	Thomas Sarnoff
				
	 	 	 	 	 	 	 ADDRESS

  

 Signature Page to Lind Employment Agreement 

 EXHIBIT A 
  
 Form of Option Agreement 
  
 See attached. 

 EXHIBIT B 
  
 Release of Claims 
  
 Executive for himself and on behalf of his attorneys, heirs, assigns, successors, executors, and administrators IRREVOCABLY AND UNCONDITIONALLY RELEASES,
ACQUITS AND FOREVER DISCHARGES Company and any current and former parent, subsidiary, affiliated and related corporations, firms, associations, partnerships, and entities, and their successors and assigns, of and from all claims and causes of action
whatsoever, whether known or unknown or whether connected with Employee’s employment by Company or not, which may have arisen, or which may arise, prior to, or at the time of, the execution of this Agreement, including, but not limited to, any
claim or cause of action arising under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Texas Commission on Human Rights Act, the Age Discrimination in Employment Act, the Texas Labor Code, the Texas Payday Act, or
any other municipal, local, state, or federal law, common or statutory. Notwithstanding the foregoing, Executive reserves all rights (A) to indemnification that he may currently or hereafter possess as an officer, director or agent or former
officer, director or agent of Company (or its affiliates) under applicable corporate statutes or the organic corporate documents of Company (and the scope of any indemnification existing as of this date shall not be reduced as to Executive by future
action of Company); (B) under any employee insurance policies or benefit programs that by their terms continue to apply to Executive; and (C) under any other provision of this Agreement. Company hereby represents that, without investigation or
undertaking any duty of inquiry, its Board of Directors and executive officers are unaware of any claims Company may have against Executive as of the date of this Agreement.Indemnification Agreement

 Exhibit 10.17 
  
 MULTIMEDIA GAMES, INC. 
  
 Indemnification Agreement 
  
 THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made between Multimedia Games, Inc., a Texas corporation (the “Company”), and the
“Indemnitee” named on the signature page hereto. Unless otherwise indicated, all references to Sections are to Sections in this Agreement. This Agreement is effective the date the Indemnitee first became (or becomes) an officer or
director of the Company (“Effective Date”). 
  

	1.	BACKGROUND. 

  

	1.1	The Indemnitee is (or is about to become) a director or officer of the Company. The Company regards it as essential to continue to attract and retain, as directors and officers, the
most capable persons available.  

  

	1.2	The Company and the Indemnitee recognize the increased risk of litigation and other claims being asserted against directors and officers. Depending on the nature of the litigation
or other claim in question, the Company’s directors’ and officers’ liability insurance coverage might not provide as much protection as could be desirable in a given situation. 

  

	1.3	The Company regards it as crucial to secure the continued service of competent and experienced people in senior corporate positions and to assure that they will be able to exercise
judgment without fear of personal liability so long as they fulfill the basic duties of honesty, care and good faith. Accordingly, the Company wishes to provide in this Agreement (a) for the indemnification of, and the advancing of
expenses to, the Indemnitee to the fullest extent, whether partial or complete, permitted by law and as set forth in this Agreement, and (b) to the extent insurance is maintained, for the continued coverage of Indemnitee under the
Company’s directors’ and officers’ liability insurance policies. 

  

	2.	DEFINITIONS. For purposes of this Agreement, the following terms have the meanings set forth below. 

  

	2.1	Acquiring Person means a Person referred to in Section 4.4. 

  

	2.2	Acquisition Report means a report filed by or on behalf of a stockholder or group of stockholders on Schedule 13D or Schedule 14D-1 or any successor schedule, form or report
under the Exchange Act. 

  

	2.3	Approved Law Firm means any law firm that (a) is located in Houston, Texas, (b) is rated “AV” by the Martindale-Hubbell Law Directory, and (c)
has not, for a five-year period prior to the Indemnifiable Event in question, been engaged by the Company, by a Person filing an Acquisition Report, or by the Indemnitee. 

  

	2.4	Article 2.02-1 means Article 2.02-1 of the TBCA. 

  

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	2.5	Articles and Bylaws means the articles of incorporation of the Company and/or the bylaws of the Company, in either case as now in effect or as hereafter amended and/or
restated (including any substitute articles of incorporation and/or bylaws). 

  

	2.6	Beneficial Owner means a Person who is a beneficial owner (as defined in Rule 13d-3 or any successor rule or regulation promulgated under the Exchange Act), directly or
indirectly, of Voting Stock, of rights to acquire Voting Stock, or of securities convertible into Voting Stock, as applicable. If a Person owns rights to acquire Voting Stock, that Person’s beneficial ownership shall be determined pursuant to
paragraph (d) of Rule 13d-3 or any successor rule or regulation promulgated under the Exchange Act. 

  

	2.7	Board means the Board of Directors of the Company. 

  

	2.8	Change in Control of the Company shall be deemed to have occurred if any of the following events occurs after the Effective Date:

  

	 	(a)	An Acquisition Report is filed with the Commission disclosing that any Person is the Beneficial Owner of 20 percent or more of the outstanding Voting Stock. The previous sentence
shall not apply if such Person is the Company, one of its subsidiaries or any employee benefit plan sponsored by either. 

  

	 	(b)	Any Person purchases securities pursuant to a tender offer or exchange offer to acquire any Voting Stock (or any securities convertible into Voting Stock) and, immediately after
consummation of that purchase, that Person is the Beneficial Owner of 20 percent or more of the outstanding Voting Stock. The previous sentence shall not apply if such Person is the Company, one of its subsidiaries, or any employee benefit plan
sponsored by either. 

  

	 	(c)	The consummation of a Merger Transaction if (a) the Company is not the surviving entity or (b) as a result of the Merger Transaction, 50 percent or less of the combined voting power
of the then-outstanding securities of the other party to the Merger Transaction, immediately after the Change of Control Date, are held in the aggregate by the holders of Voting Stock immediately prior to the Change of Control Date.

  

	 	(d)	The consummation of a Sale Transaction if as a result of the Sale Transaction, 50 percent or less of the combined voting power of the then-outstanding securities of the other party
to the Sale Transaction, immediately after the Change of Control Date, are held in the aggregate by the holders of Voting Stock immediately prior to the Change of Control Date. 

  

	 	(e)	The consummation of a transaction, immediately after which any Person would be the Beneficial Owner, directly or indirectly, of more than 50 percent of the outstanding Voting Stock.

  

	 	(f)	The stockholders of the Company approve the dissolution of the Company. 

  

	 	(g)	During any period of 12 consecutive months, the individuals who at the beginning of that period constituted the Board of Directors shall cease to constitute a majority of the Board
of Directors. The previous sentence will not apply if the election, or the nomination for 

  

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 election by the Company’s stockholders, of each director of the Company first elected during such
period was approved by a vote of at least two-thirds of the directors of the Company then still in office who were directors of the Company at the beginning of any such period. 
  

	2.9	Change of Control Date means the date of an event constituting a Change of Control. In the case of a Merger Transaction or a Sale Transaction constituting a Change of
Control, the Change of Control Date shall be the effective date of such transaction. 

  

	2.10	Claim means (a) any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise; (b) any
appeal in such an action, suit, or proceeding; and (c) any inquiry or investigation, whether conducted by the Company or some other party (either private or governmental), that the Indemnitee reasonably believes could lead to the institution
of any such action, suit or proceeding. 

  

	2.11	Commission means the Securities and Exchange Commission or any successor agency. 

  

	2.12	Exchange Act means the Securities Exchange Act of 1934, as amended from time to time, or any successor statute. 

  

	2.13	Expense Advance – see Section 5. 

  

	2.14	Expenses shall include (a) attorneys’ fees and all other costs, expenses and obligations paid or incurred in connection with (1) investigating, defending,
prosecuting, being a witness in or participating in any Indemnifiable Claim, or (2) preparing to conduct any of the activities listed in clause (1), together with (b) interest, computed at the Company’s average cost of funds for
short-term borrowings, accrued from the date of incurrence of the items listed in subparagraph (a) to that date the Indemnitee receives reimbursement therefor. 

  

	2.15	Final Judgment means a final judgment or other final adjudication, by a court of competent jurisdiction, from which no further appeal is taken or possible.

  

	2.16	including (in lower case), unless otherwise specified, means including but not limited to. 

  

	2.17	Indemnifiable Claim means (a) a Claim, made by a person or entity other than the Indemnitee, arising out of (in whole or in part) or relating to an Indemnifiable
Event, or (b) a Claim made by the Indemnitee pursuant to Section 4.3. 

  

	2.18	Indemnifiable Event means any event or occurrence related to: 

  

	 	(a)	the fact that the Indemnitee is or was a director, officer, employee, agent or fiduciary of the Company; or  

  

	 	(b)	the fact that the Indemnitee is or was serving at the request of the Company as a director, officer, employee, trustee, agent or fiduciary of another corporation of any type or
kind, foreign or domestic, partnership, joint venture, limited liability company, trust, employee benefit plan or other enterprise. Without limiting any indemnification provided hereunder, if the Indemnitee serves, in any capacity, either (i)
another corporation, partnership, joint 

  

 3 

 venture, limited liability company, trust, or other enterprise of which 20% or more of the voting power
or residual economic interest is held, directly or indirectly, by the Company or (ii) any employee benefit plan of the Company or any entity referred to in clause (i) above, such service shall be deemed to be at the request of the Company; or
 
  

	 	(c)	anything done or not done by the Indemnitee in any capacity described in subparagraphs (a) and (b).  

  

	2.19	Indemnity Obligations means the Company’s obligations to indemnify the Indemnitee under this Agreement or any other agreement or any provision of the Articles and Bylaws
relating to Indemnifiable Claims. 

  

	2.20	Merger Transaction means a merger, consolidation or reorganization of the Company with or into any other person or entity. 

  

	2.21	Person means a person within the meaning of Section 13(d) or Section 14(d)(2) or any successor rule or regulation promulgated under the Exchange Act.

  

	2.22	Reviewing Party means: 

  

	 	(a)	the Board acting by quorum consisting of directors who are not parties to the particular Claim with respect to which the Indemnitee is seeking indemnification, or 

  

	 	(b)	if such a quorum is not obtainable (or, even if such a quorum is obtainable, if a quorum of disinterested directors so directs): 

  

	 	(1)	the Board upon the opinion in writing of independent legal counsel that indemnification is proper in the circumstances because the applicable standard of conduct set forth in
Section 3 of this Agreement and/or in Article 2.02-1 of the TBCA has been met by the Indemnitee, or 

  

	 	(2)	the shareholders upon a finding that the Indemnitee has met the applicable standard of conduct referred to in clause (b)(1) of this definition. 

  

	2.23	Sale Transaction means a sale, lease, exchange or other transfer of all or substantially all the assets of the Company and its consolidated subsidiaries to any other
person. 

  

	2.24	TBCA means the Texas Business Corporation Act or any successor statute. A reference to a specific article of the TBCA shall encompass any corresponding renumbered or amended
article or any corresponding article of any successor statute. 

  

	2.25	Voting Stock means shares of capital stock of the Company the holders of which are entitled to vote for the election of directors, but excluding shares entitled to so vote
only upon the occurrence of a contingency unless that contingency shall have occurred. 

  

	3.	RIGHT TO INDEMNIFICATION.  

  

	3.1	If (a) the Indemnitee was, is, becomes at any time, or is threatened to be made, (i) a party to, or (ii) a witness in, or (iii) otherwise a participant
in, an Indemnifiable Claim, then (b) subject to a 

  

 4 

 determination in accordance with Section 4 that the Indemnitee is entitled to indemnification, the
Company shall indemnify the Indemnitee, to the maximum extent permitted by law, against any and all Expenses, judgments, fines (including excise taxes assessed on an Indemnitee with respect to an employee benefit plan), penalties, and amounts paid
in settlement (including all interest, assessments and other charges paid or payable in connection with, or in respect of, such Expenses, judgments, fines, penalties or amounts paid in settlement) in respect of such Claim.  
  

	3.2	The Indemnitee shall not be entitled to indemnification pursuant to Section 3.1 if a Final Judgment, adverse to the Indemnitee, establishes that (a) the Indemnitee’s
acts were committed in bad faith or were the result of active and deliberate dishonesty and in either case, were material to the cause of action adjudicated in the Final Judgment, or (b) the Indemnitee personally and improperly gained a
material financial profit or other material benefit to which the Indemnitee was not entitled, or (c) the Indemnitee did no reasonably believe that his conduct as an officer of director was in the best interests of the Company and such conduct
was material to the cause of action adjudicated in the Final Judgment. 

  

	3.3	Prior to a Change of Control, the Indemnitee shall not be entitled to indemnification pursuant to Section 3.1 in connection with any Claim initiated by the Indemnitee against the
Company or any director or officer of the Company unless (a) the Company has joined in or consented to the initiation of such Claim, or (b) such Claim is initiated pursuant to Section 3.4. 

  

	3.4	If (a) the Indemnitee asserts a claim or brings an action for (i) indemnification or advance payment of Expenses by the Company under its Indemnity Obligations, or
(ii) a determination or challenge pursuant to Section 4.3, or (iii) recovery under any directors’ and officers’ liability insurance policies maintained by the Company, then (b) the Company shall indemnify the
Indemnitee against any and all expenses (including attorneys’ fees) that are incurred by the Indemnitee in connection with such claim or action, and such claim or action shall be an Indemnifiable Claim for all purposes of this Agreement.

  

	3.5	If (a) the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the Expenses, judgments, fines, penalties
and amounts paid in settlement of a Claim but not, however, for all of the total amount thereof, then (b) the Company shall nevertheless indemnify the Indemnitee for the portion of such total amount to which the Indemnitee is entitled.

  

	3.6	Without limiting Section 3.5, if (a) one or more Indemnifiable Claims is made or occurs in respect of multiple Indemnifiable Events, and (b) as to a particular
Indemnifiable Event, the Indemnitee has been successful on the merits or otherwise in defense of any or all Indemnifiable Claims relating in whole or in part to such Indemnifiable Event, or in defense of any issue or matter related thereto,
including dismissal without prejudice, then (c) the Company shall indemnify the Indemnitee, to the maximum extent permitted by law, against all Expenses incurred in connection with such defense. 

  

	3.7	The Company’s indemnification obligations in this Section 3 shall in no event be deemed to preclude or limit any right to indemnification to which the Indemnitee may be
entitled under Article 2.02-1, the Articles and Bylaws, or any other applicable statutory, regulatory, or contractual provision. 

  

 5 

	4.	DETERMINATIONS OF ENTITLEMENT TO INDEMNITY 

  

	4.1	The Company’s Indemnity Obligations shall be subject to the condition that the Reviewing Party shall have authorized such indemnification in the specific case by having
determined that the Indemnitee is permitted to be indemnified under the applicable standard of conduct set forth in this Agreement and/or applicable law. The Company shall promptly call a meeting of the Board concerning such Claim and use its best
efforts to facilitate a prompt determination by the Reviewing Party with respect to such Claim. The Indemnitee shall be afforded the opportunity to make submissions to the Reviewing Party with respect to such Claim. 

  

	4.2	To the extent that the Reviewing Party determines that the Indemnitee substantively is permitted to be indemnified (in whole or in part), such determination shall be conclusive and
binding to that extent on both the Company and the Indemnitee. 

  

	4.3	If (a) there has been no determination by the Reviewing Party pursuant to Section 4.1, or (b) the Reviewing Party determines pursuant to Section 4.1 that the
Indemnitee would not be permitted to be indemnified in whole or in part, then (c) the Indemnitee shall have the right to commence litigation in any court in the State of Texas having subject matter jurisdiction thereof and in which venue is
proper, seeking an initial determination by the court or challenging any such determination by the Reviewing Party or any aspect thereof. The Company hereby consents to service of process and agrees to appear in any such litigation. Such litigation
shall be an Indemnifiable Claim for all purposes of this Agreement. 

  

	4.4	In the event of a Change of Control of the Company (other than a Change of Control which has been approved by a majority of the Board who were directors immediately prior to such
Change of Control), then all determinations pursuant to Section 4.1 and Article 2.02-1 shall be made pursuant to subparagraph (F)(1), (F)(2), or (F)(3) of Article 2.02-1. With respect to all matters relating to such determinations, or concerning the
rights of the Indemnitee to indemnity payments and Expense Advances under the Indemnity Obligations (including any opinion to be rendered pursuant to Article 2.02-1), the following provisions shall apply: 

  

	 	(a)	The Company (including the Board) shall seek legal advice from, and only from (and if special legal counsel is selected under subparagraph (F)(3) of Article 2.02-1, the Board shall
select only), special, independent legal counsel selected by the Indemnitee and approved by the Company, which approval shall not be unreasonably withheld. 

  

	 	(b)	Such counsel shall not have otherwise performed services for (A) the Company or any subsidiary of the Company, (B) the Acquiring Person or any affiliate or associate of such
Acquiring Person within the last five years (other than in connection with such matters) or (C) the Indemnitee. As used in this Section 4.4, the terms “affiliate” and “associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act and in effect on the date of this Agreement. 

  

	 	(c)	Unless the Indemnitee has theretofore selected counsel pursuant to this Section 4.4 and such counsel has been approved by the Company, any Approved Law Firm shall be deemed to
satisfy the requirements set forth above. 

  

 6 

	 	(d)	Such counsel, among other things, shall render its written opinion to the Company, the Board and the Indemnitee as to whether and to what extent the Indemnitee would be permitted to
be indemnified under applicable law and/or this Agreement. 

  

	 	(e)	The Company agrees to pay the reasonable fees of such counsel and to fully indemnify such counsel against any and all expenses (including attorneys’ fees), claims, liabilities
and damages arising out of or relating to this Agreement or its engagement pursuant hereto. 

  

	5.	EXPENSE ADVANCES.  

  

	5.1	If so requested by the Indemnitee from time to time, the Company shall advance within ten business days of such request any and all Expenses to the Indemnitee (an “Expense
Advance”). 

  

	5.2	If, when and to the extent that the Reviewing Party determines pursuant to Section 4 that the Indemnitee is not entitled to be indemnified against the Claim in question, then:

  

	 	(a)	the Company shall be entitled to be reimbursed by the Indemnitee for all Expense Advances previously paid; 

  

	 	(b)	upon request by the Indemnitee, the Company may continue to make Expense Advances to the Indemnity for up to 30 days pending the commencement of legal proceedings under Section 4.3;
and 

  

	 	(c)	the Indemnitee hereby agrees and undertakes to reimburse the Company for Expense Advances to the full extent required by Section K of Article 2.02-1. 

  

	5.3	If the Indemnitee commences legal proceedings in a court of competent jurisdiction to secure a determination that the Indemnitee should be indemnified, then:

  

	 	(a)	any determination under Section 4 shall not be binding, and 

  

	 	(b)	the Company shall continue to make Expense Advances as provided in Section 5.1, and the Indemnitee shall not be required to reimburse the Company for any Expense Advance, until the
occurrence of a Final Judgment that makes a determination adverse to the Indemnitee concerning such indemnification. 

  

	6.	TIMING. The Company shall carry out its Indemnity Obligations as soon as practicable, but in any event no later than 30 days after written demand is presented to the
Company.  

  

	7.	NO PRESUMPTION. For purposes of this Agreement, the termination of any claim, action, suit or proceeding, whether civil or criminal, by judgment, order, settlement
(whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, shall not create a presumption that the Indemnitee did not meet any particular standard of conduct or have any particular belief or that a
court has determined that indemnification is not permitted by applicable law. 

  

 7 

	8.	NONEXCLUSIVITY, ETC. The rights of the Indemnitee hereunder shall be in addition to any other rights the Indemnitee may have under the Company’s Articles and
Bylaws, the TBCA, or otherwise. To the extent that a change in the TBCA (whether by statute or judicial decision) permits greater indemnification by agreement than would be afforded currently under the Articles and Bylaws and this Agreement, it is
the intent of the parties hereto that the Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. 

  

	9.	INSURANCE. To the extent the Company maintains an insurance policy or policies providing directors’ and officers’ liability insurance, the Indemnitee shall
be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any director or officer of the Company. 

  

	10.	LIMITATION PERIOD. No legal action shall be brought and no cause of action shall be asserted by or on behalf of the Company or any affiliate of the Company against the
Indemnitee, the Indemnitee’s spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action. Any claim or cause of action of the Company or its affiliate shall be
extinguished and deemed released unless asserted by the timely filing of a legal action within such two year period. If any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern.

  

	11.	SUBROGATION. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the
Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.

  

	12.	NO DUPLICATION OF PAYMENTS. The Company shall not be liable under this Agreement to make any payment in connection with any claim made against the Indemnitee to the
extent the Indemnitee has otherwise actually received payment (under any insurance policy, under the Articles and Bylaws, otherwise) of the amounts otherwise indemnifiable hereunder. 

  

	13.	SPECIFIC PERFORMANCE. The parties recognize that if any provision of this Agreement is violated by the Company, the Indemnitee may be without an adequate remedy at
law. Accordingly, in the event of any such violation, the Indemnitee shall be entitled, if the Indemnitee so elects, to institute proceedings, either in law or at equity, to obtain damages, to enforce specific performance, to enjoin such violation
or to obtain any relief or any combination of the foregoing as the Indemnitee may elect to pursue. 

  

	14.	OTHER PROVISIONS.  

  

	14.1	This Agreement shall inure to the benefit of and be binding upon (i) the Company and its successors and assigns, including any direct or indirect successor by purchase,
merger, consolidation or 

  

 8 

 otherwise to all or substantially all of the business and/or assets of the Company, and (ii) the
Indemnitee and the Indemnitee’s spouse, heirs, and personal and legal representatives.  
  

	14.2	All notices and statements with respect to this Agreement must be in writing and shall be delivered by certified mail return receipt requested; hand delivery with written
acknowledgment of receipt; FAX transmission with machine-printed confirmation of delivery; or overnight courier with delivery-tracking capability. Notices to the Company shall be addressed to the Company’s general counsel at the Company’s
then-current principal operating office. Notices to the Indemnitee may be delivered to the Indemnitee in person or to the Indemnitee’s then-current home address as indicated on the Indemnitee’s pay stubs or, if no address is so indicated,
as set forth in the Company’s payroll records.  

  

	14.3	This Agreement sets forth the entire agreement of the parties concerning the subjects covered herein; there are no promises, understandings, representations, or warranties of any
kind concerning those subjects except as expressly set forth in this Agreement.  

  

	14.4	Any modification of this Agreement must be in writing and signed by all parties; any attempt to modify this Agreement, orally or in writing, not executed by all parties will be
void. 

  

	14.5	If any provision of this Agreement, or its application to anyone or under any circumstances, is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability will not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application and will not invalidate or render unenforceable such provision or
application in any other jurisdiction.  

  

	14.6	This Agreement will be governed and interpreted under the laws of the United States of America and of the State of Texas law as applied to contracts made and carried out in entirely
Texas by residents of that State. 

  

	14.7	No failure on the part of any party to enforce any provisions of this Agreement will act as a waiver of the right to enforce that provision. No waiver of any of the provisions of
this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 

  

	14.8	This Agreement shall continue in effect regardless of whether the Indemnitee continues to serve as an officer, director, or employee of the Company (or at the Company’s
request, of any other enterprise). 

  

	14.9	Section headings are for convenience only and shall not define or limit the provisions of this Agreement.  

  

	14.10	This Agreement may be executed in several counterparts, each of which is an original. It shall not be necessary in making proof of this Agreement or any counterpart hereof to
produce or account for any of the other counterparts. A copy of this Agreement manually signed by one party and transmitted to the other party by FAX or in image form via email shall be deemed to have been executed and delivered by the signing party
as though an original. A photocopy of this Agreement shall be effective as an original for all purposes. 

  

 9 

	14.11	In accordance with Article 2.01-1M. of the TBCA, a provision of this Agreement to indemnify or to advance expenses to the Indemnitee upon his being named or threatened to be named a
defendant or respondent in a proceeding is valid only to the extent it is consistent with Article 2.01-1. 

  
 By signing this Agreement, the Indemnitee acknowledges that the Indemnitee (1) has read and understood the entire Agreement; (2) has received a copy of it
(3) has had the opportunity to ask questions and consult counsel or other advisors about its terms; and (4) agrees to be bound by it. 
  

									
	MULTIMEDIA GAMES, INC.	 	 	 	 	 	INDEMNITEE
					
	By:	 	 	 	 	 	 	 	 
	 	 	 Craig S. Nouis, Vice President and CFO
	 	 	 	 	 	 [Name and Title of Indemnitee]

  

 10

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