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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): October 20, 2021

 

GAMING TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

Delaware 333-249998 35-2675083

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification Number)

 

Two Summerlin

Las Vegas, NV 89135, USA

(Address of principal executive offices, and zip code)

 

+1-347-983-1227

(Registrant's telephone number, including area code)

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
N/A N/A N/A

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

     

 

 

Item 1.01 Entry Into a Material Definitive Agreement

 

Big Bola Amendment

 

On October 20, 2021, the Board of Directors (the “Board”) of Gaming Technologies, Inc. (the “Company,” “we,” “us,” “our”) approved and ratified an amendment (“Amendment No. 3”), effective August 31, 2021, to the Company’s Agreement for the Provision of Online Gaming Management and Consulting Services (as subsequently amended), dated November 13, 2020, with Comercial de Juegos de la Frontera, S.A. de C.V., a Mexican company doing business as Big Bola, pursuant to which the Company provides to Big Bola consulting and management services related to their interactive online betting and gaming business in Mexico via the web site www.vale.mx, a regulated online casino and sports betting site. This Amendment No.3 increases our share of gross gaming revenue generated from the platform from 60% to 75%, subject to certain minimum guaranteed monthly amounts of Big Bola’s participation in the remaining gross gaming revenues.

 

The above brief description of the material terms of Amendment No. 3 is qualified by reference to the text of the agreement which is filed herewith as Exhibit 10.1 and is incorporated herein by reference.

 

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

 

In connection with a proposed offering of securities described in or Registration Statement on Form S-1, File No. 333-260381, filed with the Securities and Exchange Commission on October 20, 2021 (the “Form S-1”), with the approval of our Board we applied to list our common stock and certain warrants we may issue described in the Form S-1 on the Nasdaq Capital Market (“Nasdaq”) under the symbols “GMGT” and “GMGTW,” respectively. The consummation of the offering described in the Form S-1 and receipt of the proceeds thereof will be necessary for us to qualify to list our securities on Nasdaq. If our listing application is approved, we expect to list our common stock and those warrants on Nasdaq upon consummation of that offering, at which point our common stock will cease to be traded on the OTCQB tier of OTC Markets Group, Inc. No assurance can be given that such offering will be consummated, which will depend upon prevailing market conditions, our financial information, market valuations of other companies that we and the underwriters believe to be comparable to us, estimates of our business potential, the present state of our development and other factors, or that our listing application will be approved. Prior to approval of our listing application, we may need to take other necessary steps to meet Nasdaq listing requirements, which include, among other things, a stock price threshold. As a result, we may have to effect a reverse split of our outstanding common stock (as further described in Item 8.01 below).

 

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

Appointment of Steven M. Plumb as CFO

 

On October 20, 2021, the Board appointed Steven M. Plumb, CPA, as its chief financial officer through a contract (the “Clear Agreement”)  with Mr. Plumb’s entity, Clear Financial Solutions (“Clear”), pursuant to which Clear is paid $5,000 per month for Mr. Plumb’s service. In addition, Mr. Plumb and Clear’s other staff provide accounting and bookkeeping services to the Company, in consideration for which Clear is paid $2,000 per month, plus hourly fees for annual and quarterly report preparation. The contract expires on August 16, 2022, and unless canceled by either party by written notice 60 days prior to expiration, will automatically renew for successive twelve-month periods. Moreover, Mr. Plumb was awarded a stock grant for 30,000 shares of the Company’s common stock, vesting six months from date of grant The shares of common stock will be issued pursuant to a restricted stock award agreement under the Company’s 2021 Equity Incentive Plan. Mr. Plumb will replace Jason Drummond as the Company's current Chief Financial Officer. Mr. Drummond will remain as the Company's Chief Executive Officer, President, Secretary and member of the Board.

 

The above brief description of the material terms of the Clear Agreement is qualified by reference to the text of the agreement which is filed herewith as Exhibit 10.2 and is incorporated herein by reference.

 

 

 

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Steven M. Plumb, CPA, is an seasoned senior executive and financial manager experienced in operations, finance and marketing. He has Big 4 CPA experience, a background in IT, biotech, oil and gas, real estate, medical and utility companies. Mr. Plumb was the chief financial officer of Artella Solutions, Inc., a private medical device company, since December 2018 through May 2021. He has served as the chief financial officer of DirectView Holdings, Inc. (DIRV.PK) since January 2020. From May 2013 through February 2019, Mr. Plumb was the Chief Financial Officer of ProBility Media Corp. (PBYA.PK). From 2011 to 2013, Mr. Plumb was the Chief Financial Officer of Bering Exploration, Inc., (BERX) an oil and gas exploration and production company. In April 2013, Mr. Plumb was appointed to the additional position of President of Bering. From 2012 to 2014, Mr. Plumb served as the chief financial officer of Complexa, Inc., a venture capital backed biotechnology company. From September 2009 to April 2012, Mr. Plumb served as the Chief Financial Officer of ADB International Group, Inc. (ADBI.PK) and from June 2010 to April 2012, he also served on the board of directors of ADBI. From September 2010 to June 2011, Mr. Plumb served as the Chief Financial Officer of Galaxy Media & Marketing Corp (Galaxy) and from January 2011 to June 2011 he also served as a member of the board of directors and chair of the board of directors of Galaxy. Since 2001, he has served as the owner and president of Clear Financial Solutions, Inc., a consulting firm that provides interim CFO services to small public companies. In this capacity he has prepared SEC filings, managed investor relations, raised capital, conducted mergers and acquisition activities, developed successful offering memorandum, registration statements and investor presentations. Mr. Plumb is a former auditor with PriceWaterhouseCoopers and KPMG. Mr. Plumb has a Bachelor of Business Administration degree from the University of Texas at Austin, Austin, Texas.

 

Other than the Clear Agreement, there are no arrangements or understandings between Mr. Plumb and any other person pursuant to which he was appointed to serve as Chief Financial Officer of the Company. There are also no family relationships between Mr. Plumb and any director or executive officer of the Company, and except as disclosed above, he does not have a direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

 

Item 8.01 Other Events

 

On October 20, 2021, our Board approved resolutions (i) authorizing a reverse stock split of the outstanding shares of our common stock in the range from 1-for-2 to 1-for-8, and providing authority to our Board to determine whether to effect a reverse stock split and, if so to select the ratio of the reverse stock split in their discretion, and (ii) to increase the number of our authorized shares of common stock from 45,000,000 to 400,000,000. The Company plans to submit these resolutions to its stockholders for approval by written consent. The consent of stockholders holding a majority of the Company’s outstanding voting shares will be required for approval. The Company anticipates filing a certificate of amendment to affect a reverse stock split, if any, and the authorized share increase with the Secretary of State of Delaware prior to the listing of its common stock and warrants on the Nasdaq Capital Market and such actions being effective on, or just before, the date the common stock is listed to the Nasdaq Capital Market.

 

Item 9.01 Financial Statements and Exhibits.

 

Exhibit No.   Description
10.1   Amendment No. 3 to the Agreement for the Provision of Online Gaming Management and Consulting Services
10.2   Agreement between the Company and Borosh Consulting, LLC dba Clear Financial Solutions to provide (inter alia) contract CFO services
10.3   Form of Restricted Stock Agreement for Employees and Consultants
104   Cover Page Interactive Data File (formatted in iXBRL)

 

 

 

 

 

 

 

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  GAMING TECHNOLOGIES, INC.
     
Dated: October 26, 2021 By: /s/ Jason Drummond
  Name: Jason Drummond
  Title: CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Exhibit 10.1

THIRD AMENDMENT This third amendment to the Agreement for the Provision of Online Gaming Management and Consulting Services (“ Third Amendment ”) is dated on August 31 , 2021 (the “ Effective Date ”) and is made between : (1) COMERCIAL DE JUEGOS DE LA FRONTERA, S . A . DE C . V . , a company organized and existing under the laws of Mexico, with registered office at 9800 Boulevard Bernardo Quintana Roo, fourth floor, colonia Centro Sur, Queretaro, Queretaro, Mexico, 76090 (hereafter, “ Permit Holder ”) . (2) GAMING TECHNOLOGIES INC, TERCER CONVENIO MODIFICATORIO Este tercer convenio modificatorio al Contrato de Prestación de Servicios de Administración y Consultoría para Juego en Línea se celebra en fecha 31 de agosto de 2021 (la " Fecha de Inicio de Vigencia "), entre : (1) COMERCIAL DE JUEGOS DE LA FRONTERA, S . A . DE C . V . , empresa constituida y existente bajo las leyes de México, con domicilio social en 9800 Boulevard Bernardo Quintana Roo, cuarto piso, colonia Centro Sur, Querétaro, Querétaro, México, 76090 (en adelante, " Permisionaria" ) . (2) GAMING TECHNOLOGIES INC . , FORMERLY DITO INC., a United States of ANTES DITO INC., una empresa de los America company organized and existing Estados Unidos de América organizada y under the laws of the State of Delaware, with registered office at 413 West 14th existente bajo las leyes del Estado de Delaware, con domicilio social en 413 West Street, New York, New York, 10014, 14th Street, Nueva York, Nueva York, (hereafter, “ Manager ”). 10014 (en adelante, " Administradora "). (3) OPERADORA DE ENTRETENIMIENTO DEL BAJÍO, S.A. DE C.V., a company (3) OPERADORA DE ENTRETENIMIENTO DEL BAJÍO, S.A. DE C.V., empresa organized and existing under the laws of constituida y existente bajo las leyes de Mexico, with registered office at 9800 México, con domicilio social en 9800 Boulevard Bernardo Quintana Roo, fourth floor, colonia Centro Sur, Queretaro, Boulevard Bernardo Quintana Roo, cuarto piso, colonia Centro Sur, Querétaro, Queretaro, Mexico, 76090 (hereafter, Querétaro, México, 76090 (en adelante, “ Gaming Operator ”). " Operadora ”). Permit Holder, Manager and Gaming Operator hereafter as the “ Parties ” and individually as the “ Party ” . WHEREAS (A) Permit Holder and Manager entered into an Agreement for the Provision of Online Gaming Management and Consulting Services, dated November 13 , 2020 , under which Manager agreed to provide Permit La Permisionaria, Administradora y Operadora en lo sucesivo como las " Partes " e individualmente como la " Parte " . CONSIDERANDO (A) La Permisionaria y la Administradora firmaron un Contrato para la Prestación de Servicios de Administración y Consultoría de Juegos en Línea, de fecha 13 de noviembre de 2020 , en virtud del cual la Page 1 of 8

 
 

Holder with limited rights to use the Manager Domain Name, Manager Marks and certain betting and gaming software, as well as the provision of certain technical assistance services pursuant to the Platform designed for online gaming purposes, identified as www . vale . mx , www . simba . mx , or any other that the said parties agree (hereinafter the “ Management Agreement ”) . Administradora acordó proporcionar a la Permisionaria, derechos limitados para usar el Nombre de Dominio de la Administradora, la Marca y ciertos programas de apuestas y juegos, así como la prestación de ciertos servicios de asistencia técnica de conformidad con la Plataforma diseñada para fines de juego en línea, identificado como www . vale . mx , www . simba . mx , o cualquier otro pactado por dichas partes (en adelante, el " Contrato de Administración ") . (B) Permit Holder and Manager entered into a first Agreement Modifying the Management Agreement, on January 7 , 2021 , to modify clause 3 . 3 in the terms specified therein (hereinafter the “ First Amendment ”) . (B) La Permisionaria y la Administradora celebraron un primer Convenio Modificatorio al Contrato de Administración, en fecha 7 de enero de 2021 , para modificar la cláusula 3 . 3 en los términos ahí precisados (en adelante, el " Primer Convenio Modificatorio ") . (C) Permit Holder, Manager and Gaming Operator entered into an Accession Agreement dated August 12 , 2021 , whereby Gaming Operator became a party to the Management Agreement, as more elaborated therein (the “ Second Amendment ”) (C) La Permisionaria, la Administradora y la Operadora celebraron en fecha doce de agosto de 2021 un Contrato de Adhesión, en virtud del cual Operadora se volvió parte del Contrato de Administración, según se detalla en dicho acuerdo (el “ Segundo Convenio Modificatorio ”) (D) Permit Holder, Manager and Gaming Operator now wish to enter into a third amendment to the Management Agreement in the terms provided herein (D) La Permisionaria, la Administradora desean ahora celebrar un tercer convenio modificatorio al Contrato de Administración en los términos aquí provistos . IT IS HEREBY AGREED AS FOLLOWS SE ACUERDA LO SIGUIENTE 1. Interpretation . 1. Interpretación . 1 . 1 . All terms defined in the Accession Agreement shall, unless expressly stated to the contrary or if the context otherwise requires, bear the same meaning used in the Management Agreement . 1 . 1 . Todos los términos definidos en el Contrato de Adhesión tendrán, salvo que se indique expresamente lo contrario o si el contexto exige otra cosa, el mismo significado utilizado en el Contrato de Administración . 1.2. In the event of any conflict between the terms of the Management Agreement, the First and 1.2. En caso de conflicto entre los términos del Contrato de Administración, el Primer y Segundo Page 2 of 8

 
 

Second Amendments, and the terms of this Third Amendment, the terms of this Third Amendment shall, to the extent of this inconsistency, prevail and be applied . 1 . 4 When reference is made in this Third Amendment to the Management Agreement, it shall be understood that it includes all its amendments . 2. Amendment to Articles 10.1 and 10.2 of the Management Agreement. 2.1 The Parties agree to amend Articles 10.1 and 10.2 of the Management Agreement as follows: 10 . 1 . In consideration of the Manager's ongoing due and proper performance of its obligations and contributions under this Agreement, Manager shall be entitled to receive 75 % (seventy - five percent) of the monthly Gross Gaming Revenue throughout the Term (the “Manager’s Consideration”) . Manager may unilaterally assign its right its right to the Manager’s Consideration to a third party under its Control and shall only give Permit Holder ten calendar day notice of such assignment . 10 . 2 . The remaining percentage ; that is, 25 % (twenty - five percent) of the Gross Gaming Revenue shall correspond to the Permit Holder (the “Permit Holder’s Participation”), to be retained by the Permit Holder from the Online Bank Account pursuant to the following terms : (a) 25% percent for the first three months as of Go - Live. (b) 25 % percent from months four to six as of Go - Live, with a guaranteed participation of USD $ 10 , 000 per month . If in any month within this 3 - month period, the 25 % of Gross Gaming Revenue turns out to be lower than the Convenios Modificatorios, y los términos de este Tercer Convenio Modificatorio, prevalecerán y se aplicarán los términos establecidos en este Tercer Convenio Modificatorio . 1 . 3 . Cuando en este Tercer Convenio Modificatorio se haga referencia al Contrato de Administración, se entenderá que este incluye todas sus modificaciones . 2. Modificación a los Artículos 10.1 y 10.2 del Contrato de Administración. 2.1 Las Partes acuerdan modificar los Artículos 10.1 y 10.2 del Contrato de Administración para quedar redactados en los siguientes términos: 10 . 1 . En contraprestación del debido cumplimiento por parte de la Administradora de sus obligaciones y aportes en virtud de este Contrato de Prestación de Servicios, la Administradora recibirá un 75 % (setenta y cinco por ciento) de los Ingresos Brutos de Juego mensuales durante la Vigencia (la “Contraprestación de la Administradora”) . La Administradora podrá ceder su derecho a la Contraprestación de la Administradora a una tercera persona bajo su Control, bastando la notificación por escrito a la Permisionaria con al menos diez días de anticipación a dicha cesión . 10 . 2 . El porcentaje restante ; es decir, un 25 % (veinticinco por ciento) de la Ganancia Bruta de Juego, corresponderá a la Permisionaria (la “Participación de la Permisionaria”), a ser retenido mensualmente de la Cuenta Bancaria Online conforme a los siguientes términos : (a) 25% por ciento durante los primeros tres meses a partir a la Fecha de Lanzamiento. (b) 25 % por ciento durante los meses cuatro a seis a partir de la Fecha de Lanzamiento, con una participación mensual garantizada de USD $ 10 , 000 . Si en cualquier mes dentro de este periodo de tres meses, el 25 % de la Ganancia guaranteed participation effectively received or Bruta de Juego resulta menor que la Page 3 of 8

 
 

Page 4 of 8 retained by Permit Holder under this Article 10 . 2 (b), then Manager shall be entitled to deduct in the future, from any amount corresponding to Permit Holder, the difference between the guaranteed participation effectively received or retained and the 25 % of Gross Gaming Revenue . participación garantizada efectivamente recibida o retenida por la Permisionaria conforme a este Artículo 10 . 2 (b), entonces la Administradora podrá reducir en el futuro, de cualquier monto que corresponda a la Permisionaria, la diferencia entre la participación garantizada efectivamente recibida o retenida, y el 25 % de la Ganancia Bruta de Juego . (c) 25 % percent from months seven to twelve as of Go - Live, with a guaranteed participation of USD $ 25 , 000 per month . If in any month within this 6 - month period, the 25 % of Gross Gaming Revenue turns out to be lower than the guaranteed participation effectively received or retained by Permit Holder under this Article 10 . 2 (c), then Manager shall be entitled to deduct in the future, from any amount corresponding to Permit Holder, the difference between the guaranteed participation effectively paid and the 25 % of Gross Gaming Revenue . (c) 25 % por ciento durante los meses siete a doce a partir de la Fecha de Lanzamiento, con una participación mensual garantizada de USD $ 25 , 000 . Si en cualquier mes dentro de este periodo de seis meses, el 25 % de la Ganancia Bruta de Juego resulta menor que la participación garantizada efectivamente recibida o retenida por la Permisionaria conforme a este Artículo 10 . 2 (c), entonces la Administradora podrá reducir en el futuro, de cualquier monto que corresponda a la Permisionaria, la diferencia entre la participación garantizada efectivamente recibida o retenida, y el 25 % de la Ganancia Bruta de Juego . (d) 25 % as of month thirteen of Go - Live and for the rest of the Term, with a guaranteed participation of USD $ 40 , 000 per month . If in any month within this period, the 25 % of Gross Gaming Revenue turns out to be lower than the guaranteed participation effectively received or retained by Permit Holder under this Article 10 . 2 (d), then Manager shall be entitled to deduct in the future, from any amount corresponding to Permit Holder, the difference between the guaranteed participation effectively paid and the 25 % of Gross Gaming Revenue . (d) 25 % del mes trece en adelante a partir de la Fecha de Lanzamiento y por el resto de la Vigencia, con una participación mensual garantizada de USD $ 40 , 000 . Si en cualquier mes dentro de este periodo, el 25 % de la Ganancia Bruta de Juego resulta menor que la participación garantizada efectivamente recibida o retenida por la Permisionaria conforme a este Artículo 10 . 2 (d), entonces la Administradora podrá reducir en el futuro, de cualquier monto que corresponda a la Permisionaria, la diferencia entre la participación garantizada efectivamente recibida o retenida, y el 25 % de la Ganancia Bruta de Juego . 2 . 2 The Parties hereby acknowledge and agree that any amounts corresponding to Manager’s Consideration paid to Manager under the Management Agreement prior to the Effective Date, shall not be affected by this Third 2 . 2 . Las Partes reconocen y acuerdan que cualesquier cantidades correspondientes a la Contraprestación de la Administradora que hayan sido pagadas a la Administradora conforme al Contrato de Administración previo a la Fecha de

 
 

Amendment and thus Manager may not demand that prior payments are increased to be in accordance with this Third Amendment . 3.1. The Parties agree to add the following Article to the Management Agreement: 17. Contingency Fund. 17 . 1 Considering that, under this Agreement, Manager is responsible of certain tasks, including paying the Prizes and in general of managing the Player Funds, the Parties have recognized the importance of setting a mechanism to guarantee payment of the Player Funds and in general to have an operational/contingency fund for the Website, for which Manager has shall deposit in the Online Bank Account USD 50 , 000 (“ Contingency Fund ”) . The Contingency Fund will be revisited every three months to evaluate its sufficiency in proportion to the Website’s transactions . 17 . 2 . The Parties acknowledge that an additional guarantee is required for events for which the Contingency Fund renders insufficient . Thus, Manager shall issue a corporate guarantee (“ Corporate Guarantee ”) . Manager will propose to Permit Holder the form which Corporate Guarantee will adopt and it shall guarantee an amount at least equal to five times the Contingency Fund . To the extent that the Contingency Fund is modified, so will be the Corporate Guarantee . The following events will trigger the disbursement of the Contingency Fund (or a portion thereof, as applicable) and/or the execution of the Corporate Guarantee, as applicable : a. In the event that Manager breaches its obligations under the Agreement regarding Inicio de vigencia, no se verán afectadas por este Tercer Convenio Modificatorio y por lo tanto la Administradora no podrá reclamar que pagos previos sean incrementados para estar acordes con este Tercer Convenio Modificatorio . 3. Addition of Article 17: Contingency Fund and 3. Adición de un Artículo 17: Fondo de Corporate Guarantee. Contingencia y Garantía Corporativa. 3.1 Las Partes acuerdan agregar el siguiente Artículo al Contrato de Administración: 17. Fondo de Contingencia. 17 . 1 . Considerando que, en términos del Contrato, la Administradora es responsable de ciertas tareas, incluyendo el pago de Premios y en general de la administración de los Fondos de Jugador, las Partes reconocen la importancia de establecer un mecanismo para garantizar el pago de los Fondos de Jugador y en general para tener un fondo operacional/de contingencia para el Sitio Web, para lo cual la Administradora depositará en la Cuenta Bancaria Online, la cantidad de 50 , 000 dólares (el “ Fondo de Contingencia ”) . El Fondo de Contingencia será revisado cada tres meses para evaluar su suficiencia en proporción a las transacciones del Sitio Web . 17 . 2 . Las Partes reconocen que una garantía adicional es requerida para eventos para los cuales el Fondo de Contingencia resulte insuficiente . De este modo, la Administradora emitirá una garantía corporativa (“ Garantía Corporativa ”) . La Administradora propondrá a la Permisionaria la forma que adoptará la Garantía Corporativa, la cual deberá garantizar una cantidad al menos equivalente a cinco veces el Fondo de Contingencia . En la medida en que el Fondo de Contingencia sea modificado, también lo será la Garantía Corporativa . Los siguientes eventos activarán el desembolso del Fondo de Contingencia (o una porción del mismo, según corresponda) y/o la ejecución de la Garantía Corporativa, según corresponda : a. En caso de que la Administradora incumpla con sus obligaciones conforme al Contrato Page 5 of 8

 
 

Page 6 of 8 payment of Player Funds, but only to the extent that such breach constitutes an aggregate amount of US $10,000. relacionadas con el pago de Fondos de Jugador, pero solo en la medida que dicho incumplimiento constituya un monto total de US 10 , 000 . b . In the event of a Website malfunction or error which results in Prizes that Manager is incapable to pay within 36 hours following the Player’s cash - out . b . En caso de un mal funcionamiento o error en el Sitio Web que resulte en Premios que la Administradora sea incapaz de pagar dentro de las 36 horas siguientes al retiro hecho por el Jugador de que se trate . c . In the event that, for any reason (i . e . , negative media involving Manager or the Website), a substantial amount of Players request to cash out their Player Funds and Manager is incapable to attend and complete such requests within a reasonable time . c . En caso de que, por cualquier motivo (ejemplo, notas periodísticas negativas que involucren a la Administradora o el Sitio Web), un número sustancial de Jugadores soliciten el retiro de sus Fondos de Jugador y la Administradora sea incapaz de atender y completar dichas solicitudes dentro de un plazo razonable . d . In the event that Manager breaches its obligations under this Agreement and such breach or breaches result in the imposition to Permit Holder/Gaming Operator of a fine or sanction by SEGOB or any other Mexican Authority, to the extent of the amount of the fine or the amount required by Permit Holder/Gaming Operator to face the relevant sanction without incurring in Losses . d . En caso de que la Administradora incumpla con sus obligaciones conforme al Contrato y dicho incumplimiento resulte en la imposición de una mula o sanción hacia la Permisionaria/Operadora por parte de SEGOB o cualquier otra Autoridad mexicana, limitándose al monto de la multa o el monto que sea necesario para que la Permisionaria/Operadora enfrenten la sanción de que se trate sin incurrir en Pérdidas . e . In the event that Manager breaches its obligations under any contract to which either Permit Holder or Gaming Operator has appeared as principal signatory, and the affected party in that contract initiates a claim against Permit Holder/Gaming Operator, and provided that such claim is not addressed and satisfied by Manager first . e . En caso de que la Administradora incumpla sus obligaciones conforme a cualquier contrato en el que la Permisionaria o la Operadora aparezcan como obligados principales, y la parte contratante afectada inicie una recla m ació n contr a l a Permisionaria/Operadora, siempre que dicha reclamación o haya sido previamente atendida y satisfecha por la Administradora . f . In the event of Losses suffered by Permit Holder/Gaming Operator as a consequence of a breach to Article 9 of the Agreement . f . En caso de Pérdidas sufridas por la Per m isionaria/ A d m inistrador a co m o consecuencia de un incumplimiento al Artículo 9 del Contrato . 4. Continuing Force and Effect. 4. Alcance y Efectos.

 
 

Page 7 of 8 The Parties agree that, through this Third Amendment, changes and additions are made to the Management Agreement, as reflected herein . The Parties acknowledge and agree that the rest of the Management Agreement is not modified or altered, thus remaining fully enforceable in each and every one of its terms . This Third Amendment is not a novation of the Management Agreement . Las Partes acuerdan que, a través de este Tercer Convenio Modificatorio, se realizan cambios y adiciones al Contrato de Administración, según se reflejan aquí . Las Partes reconocen y aceptan que el resto del Contrato de Administración no se modifica ni altera, quedando así totalmente ejecutable en todos sus términos . Este Tercer Convenio Modificatorio no constituye una novación del Contrato de Administración . 5. Severability. 5. Divisibilidad. If any section of this Third Amendment is found by a court of competent jurisdiction to be invalid, unlawful or unenforceable, then such section shall be severed from the remainder of the Third Amendment, which shall continue to be valid and enforceable to the fullest extent permitted by law . Si un tribunal de jurisdicción competente determina que alguna parte de este Tercer Convenio Modificatorio fes inválida, ilegal o inaplicable, dicha parte se separará del resto del Tercer Convenio Modificatorio, el cual seguirá siendo válido y aplicable en la máxima medida permitida por la ley . 6. Governing Law and Jurisdiction. 6. Ley Aplicable y Jurisdicción. This Third Amendment and any extra - contractual obligation arising from or in connection with it will be governed and interpreted in accordance with the established in the Management Agreement . El presente Tercer Convenio Modificatorio y cualquier obligación extracontractual que surja de o esté en conexión con él, se regirán e interpretarán de conformidad a las leyes y a la jurisdicción establecida en el Contrato de Administración . 7. Counterparts. 7. Contrapartes. This Third Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument . Este Tercer Convenio Modificatorio podrá firmarse en múltiples tantos, cada uno de los cuales se considerará como un original y todos en su conjunto se considerarán como un único e igual instrumento This Third Amendment has been written in the English language . It may be translated for convenience, into other languages . However, in case of error or disagreement, the executed English language version shall prevail . Este Tercer Convenio Modificatorio ha sido redactado en lengua inglesa ; sin embargo, puede ser traducido por conveniencia a otros idiomas . En caso de error o desacuerdo, prevalecerá la versión en inglés firmada . IN WITNESS WHEREOF , this Third Amendment has been signed by the Parties hereto: EN TESTIMONIO DE LO CUAL , las Partes han firmado este Tercer Convenio Modificatorio:

 
 

“MANAGER” GAMING TECHNOLOGIES INC “ADMINISTRADORA” GAMING TECHNOLOGIES INC By: Name: Jason Drummond Position: CEO Por: Nombre: Jason Drummond Cargo: CEO “PERMIT HOLDER” COMERCIAL DE JUEGOS DE LA FRONTERA, S.A. DE C.V. “PERMISIONARIA” COMERCIAL DE JUEGOS DE LA FRONTERA, S.A. DE C.V. By: Name: Emilio Fernando Quiros Moreno Position: Chief Executive Officer Por: Nombre: Emilio Fernando Quiros Moreno Cargo: Gerente de Operaciones “GAMING OPERATOR” OPERADORA DE ENTRETENIMIENTO DEL BAJIO, S.A. DE C.V. “OPERADORA” OPERADORA DE ENTRETENIMIENTO DEL BAJIO, S.A. DE C.V. By: Name: Position: Por: Nombre: Cargo: Page 8 of 8

 

Exhibit 10.2

 

Borosh Consulting, LLC dba Clear Financial Solutions

Helping You Do More of What You Do Well!

 

515 N. Post Oak Road, Suite 515 Phone 713 780 0806  
Houston, TX 77024 Fax 800 861 1175  
www.clearfinancials.com E mail steven@clearfinancials.com  

 

August 16, 2021

 

 

Jason Drummond

Chief Executive Officer

Gaming Technologies, Inc.

Two Summerlin

Las Vegas, NV 89135

 

Dear Jason:

 

This agreement supersedes and amends the existing agreement dated October 26, 2020 (the Existing Agreement).

 

It is our understanding that Gaming Technologies, Inc. (the “Client” or “GameTech”) would like Borosh Consulting, LLC dba Clear Financial Solutions (the “Firm”) to provide the additional service of Contract CFO Services (“CFO”) in conjunction with the existing SEC Preparation (“SEC Prep”) and Bookkeeping Services, as defined in the Existing Agreement. We have prepared this proposal (hereinafter referred to as the “Agreement”) based upon our understanding of your needs. If this Agreement meets with your approval, you will need to sign in the space below demonstrating your acceptance of the terms stated herein.

 

Standard Billing Rates

 

You have requested that we perform Contract CFO and SEC Preparation Services for your company. We anticipate that these services will be performed by Steven M. Plumb, CPA, and the Firm’s staff. The standard billing rates for our partners and staff are as follows:

 

  Partner Level $350 per hour
  Manager Level $275 per hour
  Senior Level $175 per hour
  Staff Level $125 per hour
  Bookkeeper $75 per hour

 

Expedited Services Premium

 

If you require services for a project or report that we determine, in our sole discretion, is urgent and requires expedited service, we will charge a premium of 50% over our standard rates for such project or report. Any project or report in which we deem to have received the majority of the relevant data (in our sole opinion) within 20 days of the original deadline for the completion of such report (including extensions) will be subject to such premium assessment.

 

 

     

 

 

Page 2

October 22, 2020

 

CFO Services

 

We will participate in the management of the Company and prepare financial statements, Forms 8-K, Sec. 16 reports and projections, marketing materials, other services upon request. A member of the firm will sign SEC filings as the CFO.

 

Bookkeeping Services

 

We will also maintain the original books of entry and general ledgers for the US company. We will reconcile general ledger accounts on a monthly basis.

 

SEC Prep Services

 

We will prepare Forms 10-Q and 10-K.

 

Client responsibilities

 

Client is responsible for the following:

· Recordkeeping, including maintaining the original books of entry and general ledgers for the UK company
· Reconciling all balance sheet accounts, including cash for UK companu
  · Providing general ledger reports, bank reconciliations, trial balances, supporting sub leger reports for the UK company
· Maintaining complete and accurate board minutes
· Maintaining copies of material contracts and agreements

 

The Firm will report to Client’s Chief Executive Officer and to the Audit Committee of the Board of Directors. If an Audit Committee is not in place then the Firm will report to the Board of Directors. The Firm has the responsibility, authority and freedom to report to the Audit Committee independent of management.

 

Please be aware that none of the services provided by the Firm can be relied upon to detect errors, irregularities, or illegal acts that may exist. We will, however, inform the appropriate level of management of any errors, irregularities or illegal acts that come to our attention.

 

Compensation for Services

 

We will perform these services as follows:

CFO Services $5,000 per month
SEC Prep Services Hourly rates, estimated to be $13,000 per 10-Q and $21,000 per 10-K
Bookkeeping $2,000 per month per entity

 

The annual cost of these services, assuming bookkeeping services are provided to one company, is $144,000, or $12,000 per month. This fee reflects the additional level of effort required to perform CFO Services and the increased level of effort to continue to perform SEC Prep and Bookkeeping Services as GameTech has grown and become more complex.

 

 

 

     

 

 

Page 3

October 22, 2020

 

This fee takes into account the increased level of operations of GameTech and the additional duties incumbent upon adding the CFO role.

 

Firm will also be eligible to receive equity compensation under a mutually agreed upon arrangement.

 

Client agrees that the initial fee estimate will be evaluated every three months and adjusted by a mutually agreed upon amount based upon the amount of time and effort required to meet Client’s needs. We agree to begin performing services effective August 16, 2021. The amount due upon execution of this agreement is $6,000, the prorate portion of the monthly fee.

 

Valuation services and tax return preparation fees are not included in this agreement. Time is billed in one half-hour increments.

 

In addition, Client will reimburse Firm for reasonable expenses such as travel, mileage, photocopies, long distance, Edgarizing, postage and supplies.

 

From time to time the Firm may bring business opportunities involving technology or other transactions involving third parties to the attention of the Client. If a transaction occurs as a result of these efforts, the Firm will be paid a fee equal to 7% of the value of the technology or transaction.

 

Monthly invoices are due on the first of the month and are due via wire transfer. Wire transfer instructions are as follows:

 

Bank: Frost National Bank
  100 Houston St.
  San Antonio, Texas 78205
  Phone 210-220-4011
ABA: 114000093
A/C #: 130038210

 

Account name: Borosh Consulting Group, LLC

 

You may also pay via credit card by completing a credit card authorization form.

 

If Client fails to pay an invoice within 15 days of the invoice date, Client agrees to pay Firm a late fee of five cents for each dollar past due (not to exceed $125.00) for the purpose of defraying Firm’s expenses incident to handling such delinquency and delinquent payment. In addition, all outstanding balances 31 days and older, will accrue interest at a rate equal to the lesser of 6% per annum, or the maximum lawful rate which may be contracted for, charged, taken, received or reserved in accordance with applicable state and federal law.

 

(Notwithstanding any other provision of this Agreement, the collection of interest in excess of the maximum amount permitted by federal or state usury laws is not permitted under this Agreement and in the event any such excess interest is contracted for, charged or received under this Agreement, then (a) the provisions of this paragraph shall govern and control, (b) neither Client nor any other person shall be obligated to pay the amount of such interest, (c) any such excess which may have been collected shall be either applied as a credit against the then unpaid amount owing hereunder or refunded to Client, at the Firm’s option; and (d) the effective rate of interest shall be automatically reduced to the maximum lawful rate of interest allowed under the usury laws as now or hereafter in effect and construed by the courts having jurisdiction thereof.)

 

 

 

     

 

 

Page 4

October 22, 2020

 

Confidentiality

 

As stated above, from time to time the Firm may bring business opportunities involving technology or transactions with third parties to the attention of Client. This information must be treated as confidential by Client and Client may not disclose such information to any other person or entity for a period of three years without the express written consent of the Firm. In addition, Client agrees that any communication by Client regarding the aforementioned technology or transactions must be made solely with the Firm unless the Firm gives Client express written consent to communicate with another.

 

Each party agrees to keep confidential the proprietary information of the other party that may be learned during the course of providing or receiving services under this Agreement. Firm agrees it will not disclose any proprietary or confidential information disclosed by Client under this Agreement, including Client’s trade secrets, except as necessary to perform Firm’s obligations under this Agreement or as required by law or legal compulsion. The parties’ confidentiality obligations under this paragraph shall survive the termination of this Agreement.

 

Other

 

The Firm has not been engaged to provide, nor will it provide, any attestation services, such as auditing, review or compilation services under this Agreement except that Steven M. Plumb has agreed, as CFO of the Company, to execute the Certifications required by Forms 10-K and 10-Q, pursuant to the requirements of the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002, if applicable.

 

During the term of this Agreement and for a period of two years thereafter, Client and its subsidiaries and affiliates agree not to solicit for employment or outside contracting any employee or contractor of the Firm. For purposes of this paragraph, a Firm employee or contractor includes persons or entities who were employed or engaged by Firm within six (6) months of being solicited, hired or engaged by Client. If a Firm employee or contractor solicits Client for employment, Client must request permission from the Firm before discussing any possible employment opportunities with such Firm employee or contractor. By executing this Agreement below, Client agrees and acknowledges that it would be difficult, if not impossible, to determine the precise amount of damages that Firm will suffer in the event Client or a subsidiary or affiliate of Client solicits or hires an employee or contractor of the Firm. Therefore, Client agrees as follows: a) If Client solicits an employee or contractor of the Firm, but does not hire said employee or contractor, Client will pay the Firm, as liquidated damages, a fee equal to three months of the compensation that was payable by Firm to said employee or contractor, at the rate in effect at the time of solicitation, if employee or contract was then employed or engaged by Firm, and if not, at the rate in effect at the time such employee or contractor left Firm’s employ or engagement, calculated on a full time basis, without regard to whether Firm actually paid or was obligated to pay said employee or contractor full time compensation for a period of three months; b) if Client solicits and hires an employee or contractor of the Firm, or if Client hires an employee or contractor of the Firm without first seeking the Firm’s permission to speak to such contractor or employee, Client will pay the Firm, as liquidated damages, a fee equal to twelve months of the compensation that was payable by Firm to said employee or contractor, at the rate in effect at the time such employee or contractor left Firm’s employ or engagement, calculated on a full time basis, without regard to whether Firm actually paid or was obligated to pay said employee or contractor full time compensation for a period of twelve months; and c) if Client seeks permission to speak to a Firm employee or contractor prior to initiating conversations with said employee or contractor, and Client subsequently hires the Firm employee or contractor, Client will pay Firm, as liquidated damages, a fee equal to nine months of the compensation that was payable by Firm to said employee or contractor at the rate in effect at the time such employee or contractor left Firm’s employ or engagement, calculated on a full time basis, and without regard to whether Firm actually paid or was obligated to pay said employee or contractor full time compensation for a period of nine months.. The parties acknowledge that the amount established in this paragraph as liquidated damages to Firm is reasonable under the circumstances existing at the time of the execution of this Agreement. Any fees due under this clause are payable prior to the first day of employment or engagement of the Firm employee or contractor by Client.

 

 

 

     

 

 

Page 5

October 22, 2020

 

The term of this Agreement shall begin on the date of acceptance below and continue for a period of one year. Unless canceled by either party by written notice sixty (60) days prior to the end of any term of the Agreement, the Agreement will automatically renew for successive twelve (12) month periods based upon Firm’s standard fees schedule at the time of renewal. The retainer paid by Client shall be carried forward through any renewal and applied to the Firm’s final month’s billing. Upon renewal, Firm may require additional amounts to be held as retainer to reflect any increase in Firm’s fees. As used herein, the “term” of this Agreement includes the initial and all renewal terms unless the context requires otherwise.

 

If the Client cancels the Agreement or fails to perform for any reason, then Client shall pay the Firm damages equal to the balance that it would have paid had the Agreement been fully performed.

 

If the Firm is unable to perform due to circumstances beyond its control, then the Firm is released from this Agreement and the Firm has no liability under this Agreement. Firm may also terminate this Agreement (i) immediately and without prior notice if Client fails to pay any invoice within 15 days of the due date; (ii) upon 10 days prior written notice of any other breach of this Agreement that remains uncured upon the expiration of such 10 day notice period; and/or (iii) upon 30 days prior written notice, without or without cause.

 

Guarantee

 

Firm represents and warrants to Company that all services, work and deliverables to be performed hereunder shall be performed in a professional and workmanlike manner to the highest industry standards. Firm makes no guarantees or representations regarding any particular result or outcome based on services provided.

 

Other Matters

 

Client agrees to allow Firm to announce Client as a new client in the Firm’s newsletter.

 

Based upon the terms and conditions contained in this Agreement, Client is engaging Firm to perform business and management consulting services at such places and times as may be reasonably agreed to by Firm. It is expressly understood and agreed that no provisions of this Agreement, nor any act of the parties, shall be interpreted to create any relationship between Firm and Client other than that of independent contractor.

 

If the SEC or other government agency makes an investigation of Client or its principals or personnel, or otherwise makes any other inquiry to Firm regarding Client, whether or not Firm's services for Client are the subject matter, in whole or part, of the investigation or inquiry, Client agrees to pay all attorney fees and other expenses incurred by the Firm in connection with such investigation or inquiry. Firm may choose its own attorney(s), and, at Firm's request, Client will pay such attorney(s)' invoices and/or fees directly to such attorney(s).

 

In the case of a dispute between the parties to this Agreement, such representative as the Client may designate will discuss the disputed items with Firm and attempt to resolve the dispute. If the parties are unable to successfully negotiate a resolution of the disputed matter between themselves, they will submit the matter to mediation prior to commencing any legal action; provided however, that Firm will have no obligation to negotiate or mediate a claim for non-payment prior to bringing suit to collect past due amounts.

 

If it becomes necessary for Firm to make demand, and/or bring a lawsuit or other action or proceeding, to enforce Client’s obligations under this Agreement, Firm is entitled to recover its reasonable attorney fees and other expenses of enforcement from Client.

 

 

 

     

 

 

Page 6

October 22, 2020

 

Client understands, acknowledges and agrees to the following limitation on damages it may recover from Firm: Client’s maximum recovery from Firm for any loss or damage arising out of, or related, directly or indirectly, to the performance of this Agreement will be limited to the return of the prior one month’s fees paid to Firm. In no event will Firm be liable to Client for any consequential, indirect, exemplary, punitive, or special damages (including without limitation, loss of revenue or anticipated profits) even if Firm has been advised of the possibility of such damages.

 

The parties agree that this Agreement constitutes the entire Agreement between the Client and the Firm and that it supersedes any and all prior or contemporaneous Agreements between the parties, either written or oral, with respect to the transactions contemplated within this Agreement. This Agreement may be modified or amended only by an instrument in writing and signed by all the parties to this Agreement. Any waiver of the terms and conditions of this Agreement must be in writing and signed by all the parties to this Agreement and any such waiver will not be construed as a waiver of any other terms and conditions of this Agreement. A waiver by either party as to any particular breach will not constitute or be considered as a waiver of any similar or other breach or default thereafter.

 

The Client expressly understands and agrees that the Firm, or any of its employees, will not be prevented or barred from rendering services of the same nature as or a similar nature to those described in this

 

Agreement, or of any nature whatsoever, for or on behalf of any person, firm, corporation or entity other than the Client regardless of the nature of the business of the other person.. Client agrees that Firm, in its discretion, may employ or retain such others to assist in the rendition of the services to Client as Firm deems advisable, if any.

 

This Agreement may not be assigned by either party, provided however, that the merger or consolidation of the Firm into or with any other entity shall not be considered an assignment by Firm and shall not terminate this Agreement.

 

This Agreement is governed exclusively by Texas substantive law without reference to Texas choice of law rules. The parties agree that all disputes arising out of or related to this Agreement must be litigated in the state courts of Harris County, Texas, which the parties agree shall be the exclusive forum for any and all litigation between them. The Client expressly agrees that it is subject to personal jurisdiction in Texas for any and all disputes between the parties. The Client further agrees that subject matter jurisdiction for any and all disputes between the parties lies exclusively in the Texas state courts.

 

The parties agree that if any provision of this Agreement, or any portion thereof, is held to be invalid and unenforceable, then the remainder of this Agreement shall nevertheless remain in full force and effect.

 

Any written notice required or permitted by this Agreement will be deemed given (i) upon the date the notice is received if personally delivered or delivered by receipted overnight mail or delivery service; or (ii) five business days after the date of mailing, if deposited in the United States mail, postage prepaid, by certified mail, return receipt requested; and addressed, if to Firm, to the attention of Steven M. Plumb, C.P.A., at the address appearing in the letterhead above, and if to Client, to the attention of the undersigned, at the address appearing above.

 

The parties agree that facsimile signatures of this Agreement shall be as effective as if originals.

 

Please indicate your acceptance of the above terms and conditions of our agreement by signing below. A copy is enclosed for your records. If your needs change during the year, the nature of our services can be adjusted appropriately. Likewise, if you have special projects with which we can assist, please let us know. We look forward to a long-term and mutually-beneficial relationship with Dito, Inc..

 

Sincerely,

 

Clear Financial Solutions, Inc.

 

By:

Steven M. Plumb, CPA

 

Reviewed and accepted:

 

Gaming Technologies, Inc.

 

Jason Drummond

Chief Executive Officer

 

     

Exhibit 10.3

 

Restricted Stock Award Agreement

 

This Restricted Stock Award Agreement (this "Agreement") is made and entered into as of [DATE] (the "Grant Date") by and between Gaming Technologies, Inc., a Delaware corporation (the "Company") and [EMPLOYEE NAME] (the "Grantee").

 

WHEREAS, the Company has adopted the 2021 Equity Incentive Plan (the "Plan") pursuant to which awards of Restricted Stock may be granted; and

 

WHEREAS, the Committee has determined that it is in the best interests of the Company and its shareholders to grant the award of Restricted Stock provided for herein.

 

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

 

1.             Grant of Restricted Stock. Pursuant to Section 8 of the Plan, the Company hereby issues to the Grantee on the Grant Date a Restricted Stock Award consisting of, in the aggregate, [NUMBER] shares of Common Stock of the Company (the "Restricted Stock"), on the terms and conditions and subject to the restrictions set forth in this Agreement and the Plan. Capitalized terms that are used but not defined herein have the meaning ascribed to them in the Plan.

 

2.             Consideration. The grant of the Restricted Stock is made in consideration of the services to be rendered by the Grantee to the Company.

 

3.             Restricted Period; Vesting.

 

3.1                Except as otherwise provided herein, provided that the Grantee remains in Continuous Service through the applicable vesting date, the Restricted Stock will vest in accordance with the following schedule:

 

Vesting Date Shares of Common Stock
[VESTING DATE] [NUMBER OR PERCENTAGE OF SHARES THAT VEST ON THE VESTING DATE]
[VESTING DATE] [NUMBER OR PERCENTAGE OF SHARES THAT VEST ON THE VESTING DATE]

 

The period over which the Restricted Stock vests is referred to as the "Restricted Period".

 

3.2                The foregoing vesting schedule notwithstanding, if the Grantee's Continuous Service terminates for any reason at any time before all of his or her Restricted Stock has vested, the Grantee's unvested Restricted Stock shall be automatically forfeited upon such termination of Continuous Service and neither the Company nor any Affiliate shall have any further obligations to the Grantee under this Agreement.

 

3.3                The foregoing vesting schedule notwithstanding, upon the occurrence of a Change in Control, 100% of the unvested Restricted Stock shall vest as of the date of the Change in Control.

 

 

 

  1  
 

 

4.             Restrictions. Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period, the Restricted Stock or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber the Restricted Stock or the rights relating thereto during the Restricted Period shall be wholly ineffective and, if any such attempt is made, the Restricted Stock will be forfeited by the Grantee and all of the Grantee's rights to such shares shall immediately terminate without any payment or consideration by the Company.

 

5.             Rights as Shareholder; Dividends.

 

5.1                The Grantee shall be the record owner of the Restricted Stock until the shares of Common Stock are sold or otherwise disposed of, and shall be entitled to all of the rights of a shareholder of the Company including, without limitation, the right to vote such shares and receive all dividends or other distributions paid with respect to such shares. Notwithstanding the foregoing, any dividends or other distributions shall be subject to the same restrictions on transferability as the shares of Restricted Stock with respect to which they were paid.

 

5.2                The Company may issue stock certificates or evidence the Grantee's interest by using a restricted book entry account with the Company's transfer agent. Physical possession or custody of any stock certificates that are issued shall be retained by the Company until such time as the Restricted Stock vests.

 

5.3                If the Grantee forfeits any rights he or she has under this Agreement in accordance with Section 3, the Grantee shall, on the date of such forfeiture, no longer have any rights as a shareholder with respect to the Restricted Stock and shall no longer be entitled to vote or receive dividends on such shares.

 

6.             No Right to Continued Service. Neither the Plan nor this Agreement shall confer upon the Grantee any right to be retained in any position, as an Employee, Consultant or Director of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Grantee's Continuous Service at any time, with or without Cause.

 

7.             Adjustments. If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the shares of Common Stock shall be adjusted or terminated in any manner as contemplated by Section 14 of the Plan.

 

8.             Tax Liability and Withholding.

 

8.1                The Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the Grantee pursuant to the Plan, the amount of any required withholding taxes in respect of the Restricted Stock and to take all such other action as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Committee may permit the Grantee to satisfy any federal, state or local tax withholding obligation by any of the following means, or by a combination of such means:

 

(a)                 tendering a cash payment.

 

(b)                authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable or deliverable to the Grantee as a result of the vesting of the Restricted Stock; provided, however, that no shares of Common Stock shall be withheld with a value exceeding the maximum amount of tax required to be withheld by law.

 

(c)                 delivering to the Company previously owned and unencumbered shares of Common Stock.

 

 

 

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8.2                Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding ("Tax-Related Items"), the ultimate liability for all Tax-Related Items is and remains the Grantee's responsibility and the Company (a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant or vesting of the Restricted Stock or the subsequent sale of any shares; and (b) does not commit to structure the Restricted Stock to reduce or eliminate the Grantee's liability for Tax-Related Items.

 

9.             Non-competition and Non-solicitation.

 

9.1                In consideration of the Restricted Stock, the Grantee agrees and covenants not to:

 

(a)                 contribute his or her knowledge, directly or indirectly, in whole or in part, as an employee, officer, owner, manager, advisor, consultant, agent, partner, director, shareholder, volunteer, intern or in any other similar capacity to an entity engaged in the same or similar business as the Company and its Affiliates, including those engaged in the business of mobile games developer, publisher and operator for a period of twelve (12) months following the Grantee's termination of Continuous Service;

 

(b)                directly or indirectly, solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee of the Company or its Affiliates for twelve (12) months following the Grantee's termination of Continuous Service; or

 

(c)                 directly or indirectly, solicit, contact (including, but not limited to, e-mail, regular mail, express mail, telephone, and instant message), attempt to contact or meet with the current[, former or prospective] customers of the Company or any of its Affiliates for purposes of offering or accepting goods or services similar to or competitive with those offered by the Company or any of its Affiliates for a period of twelve (12) months following the Grantee's termination of Continuous Service.

 

9.2                If the Grantee breaches any of the covenants set forth in Section 9.1:

 

(a)                 all unvested Restricted Stock shall be immediately forfeited; and

 

(b)                the Grantee hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief.

 

10.         Compliance with Law. The issuance and transfer of shares of Common Stock shall be subject to compliance by the Company and the Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company's shares of Common Stock may be listed. No shares of Common Stock shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Grantee understands that the Company is under no obligation to register the shares of Common Stock with the Securities and Exchange Commission, any state securities commission or any stock exchange to effect such compliance.

 

 

 

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11.         Legends. A legend may be placed on any certificate(s) or other document(s) delivered to the Grantee indicating restrictions on transferability of the shares of Restricted Stock pursuant to this Agreement or any other restrictions that the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any applicable federal or state securities laws or any stock exchange on which the shares of Common Stock are then listed or quoted.

 

12.         Notices. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Secretary of the Company at the Company's principal corporate offices. Any notice required to be delivered to the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee's address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

 

13.         Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of New York without regard to conflict of law principles.

 

14.         Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the Company to the Committee for review. The resolution of such dispute by the Committee shall be final and binding on the Grantee and the Company.

 

15.         Restricted Stock Subject to Plan. This Agreement is subject to the Plan as approved by the Company's shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

 

16.         Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Grantee and the Grantee's beneficiaries, executors, administrators and the person(s) to whom the Restricted Stock may be transferred by will or the laws of descent or distribution.

 

17.         Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

 

18.         Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion. The grant of the Restricted Stock in this Agreement does not create any contractual right or other right to receive any Restricted Stock or other Awards in the future. Future Awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee's employment with the Company.

 

19.         Amendment. The Committee has the right to amend, alter, suspend, discontinue or cancel the Restricted Stock, prospectively or retroactively; provided, that, no such amendment shall adversely affect the Grantee's material rights under this Agreement without the Grantee's consent.

 

 

 

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20.         No Impact on Other Benefits. The value of the Grantee's Restricted Stock is not part of his or her normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.

 

21.         Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

 

22.         Acceptance. The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement. The Grantee has read and understands the terms and provisions thereof, and accepts the Restricted Stock subject to all of the terms and conditions of the Plan and this Agreement. The Grantee acknowledges that there may be adverse tax consequences upon the grant or vesting of the Restricted Stock or disposition of the underlying shares and that the Grantee has been advised to consult a tax advisor prior to such grant, vesting or disposition.

 

[signature page follows]

 

 

 

 

 

 

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

 

  Gaming Technologies, Inc.
   
 

By: _____________________

Name:

Title:

 

 

 

[EMPLOYEE NAME]

   
 

By: _____________________

Name:

 

 

 

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SCHEDULE I