ex1034.htm


    PATENT
SECURITY AGREEMENT

     

    This
Patent Security Agreement (this “Agreement”), is dated
as of May 22, 2009, by LAS
VEGAS GAMING, INC., a Nevada corporation (the “Grantor”), in favor
of IGT, a Nevada
corporation (the “Lender”).

     

    W I T N E S S E T
H

     

    WHEREAS,
the Grantor is party to a certain IGT-LVGI Binding Term Sheet dated on or about
February 13, 2009 (as it may be amended, restated, supplemented or
otherwise modified from time to time, the “Advance Term Sheet”)
between the Grantor and the Lender, pursuant to which the Lender advanced
certain sums to Grantor, and the Grantor granted the Lender a security interest
in all of the Grantor’s present and future assets.  Under the Advance
Term Sheet, the Grantor is required to execute and deliver this
Agreement;

     

    NOW,
THEREFORE, in consideration of the premises and in connection with the Advance
Term Sheet, the Grantor hereby agrees with the Lender as follows:

     

    SECTION
1. Grant of Security Interest
in Patent Collateral.  The Grantor hereby pledges and grants to
the Lender for the benefit of the Lender and any affiliate of the Lender, a
continuing lien on and continuing security interest in and to all of the
Grantor’s right, title and interest in, to and under all the following
collateral of such Grantor:

     

    (a) patents
of Grantor listed on Schedule I
attached hereto;

     

    (b) all
goodwill associated with such patents; and

     

    (c) all
proceeds of any and all of the foregoing.

     

    SECTION
2. Security
Agreement.  The security interest granted pursuant to this
Agreement is granted in conjunction with the security interest granted to the
Lender pursuant to the Advance Term Sheet and that certain Security Agreement
dated the date of this Agreement between the Grantor and the Lender, the terms
and provisions of which are incorporated by reference herein as if fully set
forth herein.

     

    SECTION
3. Termination.  Upon
the release of the Lender’s security interest in any patents, the Lender shall
execute, acknowledge, and deliver to the Grantor an instrument in writing in
recordable form releasing the collateral pledge, grant, assignment, lien and
security interest in such patents under this Agreement.

     

    SECTION
4. Counterparts.  This
Agreement may be executed in any number of counterparts, all of which shall
constitute one and the same instrument, and any party hereto may execute this
Agreement by signing and delivering one or more
counterparts.  Delivery of an executed counterpart by facsimile or
other electronic means shall be effective as delivery of a manually executed
counterpart of this Agreement.

     

     

    [signature page
follows]


    
      
         


      

      
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    IN
WITNESS WHEREOF, Grantor has caused this Agreement to be executed and delivered
by its duly authorized officer as of the date first set forth
above.

     

     

    LAS
VEGAS GAMING, INC.

     

    By:  
/s/  Bruce
Shepard                        


    Name:   
Bruce Shepard

    Title:     
Chief Financial Officer

     

    ACCEPTED
AND AGREED:

     

     

    IGT

     

    By: /s/  Ken
Creighton                                        


    Name:  
Ken Creighton

    Title:    
Assistant Secretary and

                  V.P.
Corporate Legal

     


    
      
         


      

      
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    SCHEDULE I TO PATENT
SECURITY AGREEMENT

     

    i.           Patents

     

     

    1.           U.S.
Patents

     

    
      	 
      	
              PATENT
      NUMBER

            	
              DATE OF
      PATENT

            	
              TITLE

            
	
              1)

            	
              6,059,659

            	
              MAY 9,
      2000

            	
              ROULETTE TABLE HAVING
      PROGRESSIVE JACKPOTS

            
	
              2)

            	
              7,335,106
      B2

            	
              FEBRUARY 26,
      2008

            	
              CLOSED-LOOP SYSTEM FOR
      DISPLAYING PROMOTIONAL EVENTS AND GRANTING AWARDS FOR ELECTRONIC VIDEO
      GAMES

            
	
              3)

            	
              7,258,608
      B2

            	
              AUGUST 21,
      2007

            	
              KENO GAME WITH EXTRA
      CHANCES

            
	
              4)

            	
              6,722,978
      B2

            	
              APRIL 20,
      2004

            	
              METHOD OF PLAYING A LINKED
      NUMERICAL GAME OF CHANCE WITH A BONUS AND PARLAY WAGERING
      OPTION

            


    

     

    2.           U.S. Patent
Applications

     

    
      	 
      	
              PATENT APPLICATION
      NUMBER

            	
              TITLE

            
	
              1)

            	
              11/469,108

            	
              METHODS AND APPARATUS FOR
      INTERACTING WITH PLAYERS OF VIDEO MACHINES

            
	
              2)

            	
              11/468,946

            	
              CLOSED-LOOP SYSTEM FOR
      PROVIDING ADDITIONAL EVENT PARTICIPATION TO ELECTRONIC VIDEO GAME
      CUSTOMERS

            
	
              3)

            	
              11/686,755

            	
              AUTOMATIC FUNDING OF
      PARAGAMES ON ELECTRONIC GAMING PLATFORM

            
	
              4)

            	
              11/968,633

            	
              ENHANCED VIDEO GAMING
      MACHINE

            
	
              5)

            	
              11/897,533

            	
              Method and system for
      paragame activity at electronic gaming machine

            
	
              6)

            	
              11/897,532

            	
              Method and apparatus for
      providing secondary gaming machine functionality

            
	
              7)

            	
              11/847,062

            	
              SYSTEM TO DECODE VIDEO SIGNAL
      FROM ELECTRONIC GAMING DEVICE AND TO DETERMINE PLAY
      INFORMATION

            


    

     

     

    
      
        
        

      

      
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    3.           International
Patents/Applications

     

    
      	 
      	
              COUNTRY PATENT/APPLICATION
      NUMBER

            	
              TITLE

            
	
              1)

            	
              WO
      1997/046293

            	
              ROULETTE TABLE HAVING
      PROGRESSIVE JACKPOTS

            
	
              2)

            	
              WO
      2005/043285

            	
              CLOSED-LOOP SYSTEM FOR
      DISPLAYING PROMOTIONAL EVENTS AND GRANTING AWARDS FOR ELECTRONIC VIDEO
      GAMES

            
	
              3)

            	
              WO
      2007/035388

            	
              METHODS AND APPARATUS FOR
      INTERACTING WITH PLAYERS OF VIDEO MACHINES

            
	
              4)

            	
              WO
      2008/027062

            	
              CLOSED-LOOP SYSTEM FOR
      PROVIDING ADDITIONAL EVENT PARTICIPATION TO ELECTRONIC VIDEO GAME
      CUSTOMERS

            
	
              5)

            	
              WO
      2008/027443

            	
              METHOD AND SYSTEM FOR
      PARAGAME ACTIVITY AT ELECTRONIC GAMING MACHINE

            
	
              6)

            	
              WO
      2008/027444

            	
              METHOD AND APPARATUS FOR
      PROVIDING SECONDARY GAMING MACHINE FUNCTIONALITY

            
	
              7)

            	
              WO
      2009/029101

            	
              SYSTEM TO DECODE VIDEO SIGNAL
      FROM ELECTRONIC GAMING DEVICE AND TO DETERMINE PLAY
      INFORMATION

            


    

    



    
      
         


      

      
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