Document:

ex1012.htm

    Exhibit
10.12

     

    ***Text
Omitted and Filed Separately

    with
the Securities and Exchange Commission.

    Confidential
Treatment Requested

    Under
17 C.F.R. Sections 200.80(b)(4)

    and
240.24b-2.

    

     

    LICENSE
AND APPLICATION SUPPORT AGREEMENT

     

    This
License and Application Support Agreement (the “LASA”) is
made and entered into as of this September 30, 2008 (the “Effective
Date”), by and
between Las Vegas Gaming, Inc., (LVGI), a
Nevada corporation, with a primary business address of 4000 West Ali Baba Lane,
Las Vegas, Nevada 89118, and IGT (IGT), a
Nevada corporation with a primary business address of 9295 Prototype Drive,
Reno, NV 89521 (each a “Party” and
collectively the “Parties”).

     

    WITNESSETH

     

    WHEREAS, IGT owns rights to
various proprietary application programming interfaces (APIs) and protocols,
trademarks, and copyrights related to Gambling (defined below) and Electronic
Gaming Machines (defined below);

     

    WHEREAS, LVGI desires to
license selected ones of IGT’s trademarks and copyrights related to Electronic
Gaming Machines and selected ones of IGT’s proprietary APIs and protocols for
the purpose of designing, developing, and
implementing software applications for delivery through PlayerVision
Devices (defined below) and IGT sb Systems; and

     

    WHEREAS, LVGI desires support
from IGT with regard to the selected ones of IGT’s proprietary APIs and
protocols in the design, development and implementation of such software
applications.

     

    NOW, THEREFORE, in
consideration of the premises and the mutual promises and covenants contained
herein, the Parties agree as follows:

     

    ARTICLE
1 

    Definitions

     

    The
following terms with initial capital letters shall have the following
meanings:

     

    “Application
Support Services” means technical support and assistance for the purpose
of assisting LVGI establish compatibility between software applications
developed by LVGI for delivery on IGT sb Systems (defined below).

     

    “Competitor”
– means any manufacturer, supplier, or distributor of Gambling Products with
which IGT reasonably considers itself to compete for business.

     

    
      
         

      

      
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    “Earned Revenue”
means revenues earned by LVGI, less the
actual cost of jackpot insurance (such as for the top award of Nevada Numbers),
if applicable.

     

    “Electronic Gaming
Machine” or “EGM” means
the entire electronic or electro-mechanical device including the peripheral
components housed in its enclosure that is primarily designed and used for
Gambling, and that has all of the following characteristics: (a) is used by the
player to input the wager amount and otherwise initiate game play; (b) displays
the amount wagered, the outcome of the wager, and the credit amount available to
the player; (c) displays the outcome of the Gambling event to the player within
five minutes of initiating the wager; and (d) is provided to the player by the
EGM operator.  The definition of an EGM is limited to the device in
close proximity to the player and does not include supporting software and
servers remote from the device.  For the avoidance of doubt, and by
way of example, personal computers, televisions, personal digital assistants
(PDAs), and cellular and other mobile telephones are not primarily designed for
Gambling and are not EGMs for the purposes of this defined term.

     

    “End User”
means the licensed operator (e.g. the casino operator) of an Electronic Gaming
Machine.

     

    “Gambling”
means playing or exposing for play any activity or event involving a wager or a
placing at risk a sum of money or other representative of value, whether or not
redeemable for cash, on an occurrence the outcome of which is uncertain,
including events that include some element of skill (e.g., sports, card games,
and racing).  The award corresponding to the outcome of such event or
activity can be cash or any other prize.

     

    “IGT sb
System” or “ISBS”
means IGT’s server-based network systems, which utilize the following IGT user
interfaces: sbNexGenTM, Service WindowTM, and other interfaces to IGT systems as
may be necessary, subject to final approval by IGT.  For the sake of
clarity, this excludes the non-sb NexGen, Advantage Systems, and TITO
systems.

     

    “IGT
Systems” means all IGT sb Systems, Advantage® systems, including, but not
limited to, TITO systems, and any other computer system and/or operational
network licensed, sold, or Placed by IGT or its distributors and related to or
associated with Gambling.

     

    “Intellectual
Property” means all intellectual property rights including all past,
present and future rights in patents, industrial property rights, copyrights,
trademarks, and trade secrets.

     

    “Licensed APIs and
Protocols” means (1) Slot Accounting System (SASTM) protocol, including
Ticket In, Ticket Out protocols (TITO);  (2) NetPlex protocol; (3)
Casino Terminal Network (CTN) Kiosk protocol; and (4) subject to the written
approval of IGT, Media Manager protocols and Media Manager APIs.

     

    “LVGI Developed
Applications” means software applications that are all of the following:
1) developed by LVGI; 2) utilize the Licensed APIs and Protocols under this
Agreement or the IGT Licensed IP pursuant to the Retrofit License Agreement; and
3) are deployed on the casino floor through an IGT sb System or PlayerVision
Device (defined below).

     

    
      
         

      

      
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    “Place,”
“Placed” or
“Placement”
shall mean the sale, lease, or any other supplying of Products (defined below)
including on a participation basis or any
other revenue generating basis.

     

    “PlayerVision
Device(s)” or “PVD(s)”
means the hardware, software, firmware, connections, enclosures, and housings
that are all of the following: i) made and placed by LVGI; ii) installed within
an EGM; iii) only capable of providing PlayerVision® functionality to an EGM;
and iv) that is substantially similar in functionality to the hardware, being
provided by PlayerVision® as of July 17, 2008.

     

    “Product(s)”
means any product or service.

     

    ARTICLE
2 

    License

     

    2.1 License
Grant.  IGT hereby grants LVGI a limited, non-exclusive,
non-transferable, non-assignable (except as
provided in Section 13.9), non-sub-licensable, world-wide license to use the
Licensed APIs and Protocols in association with the IGT Systems for the limited
purpose of facilitating design,
development and implementation of LVGI
Developed Applications but only to the extent that any of the individual APIs
and protocols of the Licensed APIs and Protocols are applicable and necessary to
the LVGI Developed Application and provided that such LVGI Developed
Applications are designed and developed for delivery only through PlayerVision®
Devices or IGT sb Systems.  The “implementation” aspect of this
license grant includes the right for LVGI to provide End Users with “use rights”
(i.e. the right to use LVGI Developed Applications) in connection with the
rights granted hereunder.  For the avoidance of doubt, this license
does not include any rights to IGT Licensed API’s or Protocols for use through
any third party server based media manager delivery system that is designed for
the management or delivery of media content to the main game
screen.  For the avoidance of doubt, the rights provided under this
Agreement do not include any license or covenant not to sue with respect to any
IGT patents or any patents to which IGT may have rights .

     

    2.2 Exclusions and
Restrictions.  The license to the Licensed APIs and Protocols
does not include the right to sub-license the Licensed APIs and Protocols, except as permitted to End Users pursuant to Section
2.1. However, LVGI may install LVGI Developed Applications onto any
non-IGT EGM which is already licensed to operate with respect to the Licensed
APIs and Protocols within an IGT sb System and/or use the Licensed APIs and
Protocols either through a license between the EGM manufacturer and IGT or the
operator of the EGM and IGT.  LVGI agrees to verify in advance with
IGT that proper licensing of any required APIs or protocols of the Licensed APIs
and Protocols is in place for any installation of LVGI Developed Applications on
non-IGT EGMs.

     

    ARTICLE
3 

    Consideration/Royalty

     

    3.1 Royalty.  In
consideration for the license and Application Support Services provided for in
this LASA, LVGI shall pay a royalty to IGT equal to [...***...] of the Earned
Revenues for any LVGI Developed Application
that is delivered through or connected to any IGT Systems. 

     

    ***Confidential
Treatment Requested

     

    
      
         

      

      
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    3.2 Royalty
Payments.  LVGI shall furnish to IGT, within 45 days of the end
of each calendar quarter (even if there were no applicable Earned Revenues in
such quarter), a detailed royalty statement showing the Earned Revenues
allocable to the LVGI Developed Applications for the immediately preceding
quarter, separated into Earned Revenue for each country in which sales, or
leases, or profit participations occur; and, where the revenues are earned in a
currency other than U.S. dollars, showing the amount to be expressed in U.S.
dollars to be computed by applying the average exchange rate between the dollar
and that currency by using, to compute the average, the exchange rate quoted in
the U.S. edition of the Wall Street Journal on the last business day of each
month of that calendar quarter.  LVGI may, on prior notice to IGT,
employ another method to handle currency conversion that is consistent or more
compatible with its own internal accounting systems provided that such method is
not to the detriment of IGT.  The royalty payment shall accompany the
royalty statement.  Royalties on U.S. Earned Revenues shall be made
without any tax withholding.

     

    3.3 Failure to
Pay.  Any amounts not paid when due will accrue interest at the
rate of 1.5% per month. For the avoidance of doubt, any failure to pay is an
event of default and is subject to the notice, cure, and termination provision
explained at the end of Section 11.5. 

     

    ARTICLE
4 

    Records
and Audits

     

    4.1 Records.  LVGI
shall maintain at its principal office for the term of this LASA and for 7 years
thereafter accurate books and records in sufficient detail to enable IGT to
verify the basis for and the accuracy of the royalty statements required to be
submitted to IGT pursuant to Section 3.2 and LVGI’s compliance with each and
every term and condition of this LASA.

     

    4.2 Audit and
Inspection Rights.  IGT shall have the right, exercisable not
more than once in any calendar year during the period outlined in Section 4.1,
to audit, through its own financial employees or through independent accountants
(together the “Auditor”), the books and records (both electronic and hard copy)
contemplated at Section 4.1.  IGT shall provide LVGI with no less than
2 weeks written notice of its intent to audit LVGI’s books and records as
provided under this LASA and LVGI shall be ready for such audit – meaning that
LVGI shall have all records required hereunder ready for inspection upon the
arrival of the Auditor and LVGI shall also promptly provide additional
documentation as may be required.  Such notice shall indicate the
period to be audited, the identity of the auditor and the scope of the
audit.  LVGI shall immediately pay any shortfall together with
interest as provided in the next sentence.  Should an audit reveal a
discrepancy of royalty payment in relation to royalty actually earned greater
than 5% during any given year, LVGI shall pay any shortfall together with
interest on any outstanding balance at the lesser of 1.5% monthly or the maximum
amount permitted by law, and shall reimburse IGT for the reasonable cost of the
audit.  If audits of LVGI reveal a shortfall in royalty payment of
greater than 5% in any fiscal year, and the findings support that the
withholding of such royalty payments was done intentionally or in bad faith, IGT
shall have the right to terminate this LASA.  In all events, IGT’s
right to terminate shall be subject to the provisions of Article
11.

     

    
      
         

      

      
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    ARTICLE
5 

    Support

     

    5.1 Support
Services.  IGT will provide a total of [...***...] hours of
Application Support Services to assist LVGI in utilizing the Licensed APIs and
Protocols to establish compatibility with the LVGI Developed Applications that
are deployed on IGT sb Systems.  IGT will have no obligation to modify
any of its products, services, any of the Licensed APIs and Protocols, or any
other IGT System to assist LVGI in attaining such compatibility.  No
license to any Intellectual Property that is owned or controlled by IGT is
granted or implied by virtue of IGT’s provision of any support services under
this Agreement.

     

    5.2 Excess Support
Services.  The costs of the initial [...***...] hours of
Application Support Services are included in the contemplated royalty payments
made by LVGI.  Any Application Support Services provided in excess of
these [...***...] hours will be provided to LVGI by IGT at IGT’s then-published
engineering rates less [...***...].

     

    5.3 Bonus Support
Services.  Each calendar year that the royalty payments made by
LVGI to IGT under Section 3.1 exceed a total of [...***...], IGT will credit LVGI
with a bonus of [...***...] hours of Application Support Services (Bonus
Support Services) for use in the following calendar year.  Any Bonus
Support Service hours that have not been used by the end of the calendar year
during which the Bonus Support Service hours are available will lapse and will
not be carried over in any form to the next calendar year.

     

    5.4 Support Material
and Equipment.  To the extent that such non-confidential material and
equipment exists and are available for IGT to provide, IGT will provide the
following material and equipment to LVGI in order for LVGI to create LVGI
Developed Applications for deployment on IGT sb Systems:

     

    [...***...].

     

    [...***...].

     

    [...***...].

     

    IGT will
grant LVGI access to IGT’s interoperability lab in Reno, Nevada, at IGT’s
then-published standard rates and as can be accommodated in the ordinary course
of business by the interoperability lab.

     

    5.5 Material- and
Equipment-Related Services.  (a) The Parties will work together
to build a productive development environment for LVGI, which may potentially
include a system simulator and a virtual private network (VPN).  (b)
IGT will also provide access necessary to make LVGI Developed Applications
demonstrable at trade shows.  (c) Any support services provided by IGT
to LVGI in relation to subsections 5.4 and 5.5 will be subtracted from the
Application Support Service hours allotted with regard to subsections 5.1, 5.2,
and 5.3.

     

    ***Confidential
Treatment Requested

     

    
      
         

      

      
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    5.6 Application
Support Service Limitations.  It is acknowledged that the
support services described in 5.1, 5.2, and 5.3 are specifically for helping
LVGI to create Products that are compatible with Licensed APIs and Protocols and
delivered through IGT sb Systems.  IGT shall not be required to
provide support services for any LVGI Developed Applications that are designed
to replace functionality embodied in Products being engineered or deployed by
IGT at the time of the request for such support services.  To the
extent that IGT has a reasonable basis to believe that certain LVGI Developed
Applications infringe on IGT Intellectual Property and LVGI and IGT are unable
to come to terms for licensing such, then IGT support obligations with respect
to such applications shall be terminated.

     

    ARTICLE
6 

    Distribution

     

    6.1 Distribution
Opportunity.  At IGT’s election, LVGI will grant to IGT
distribution rights to the LVGI Developed Applications at a distribution fee
rate of [...***...] of the Earned Revenue for such LVGI Developed
Applications, based upon the pricing of
such LVGI Developed Application as set by LVGI.  IGT will, in good faith, conduct a trial
using such products and evaluate the product using its own business judgment.
Should IGT elect to accept distribution rights, the terms and conditions of such
a possible distributor’s agreement will be negotiated by the Parties as
necessary, with respect to IGT’s distribution efforts the agreement will be that
IGT shall use commercially reasonable efforts.

     

    6.2 Maintaining
Minimum Requirements for Exclusive Rights.  If IGT elects and
negotiates to take exclusive distribution rights, IGT will be required to meet
minimum placement requirements in order to maintain such exclusive
rights.  These minimum placement requirements will be negotiated and
memorialized in each specific agreement for such exclusive rights.  If
IGT fails to meet these stated minimum placement requirements, IGT will have the
right to advance any shortfalls, else IGT’s distribution rights will revert to
non-exclusive distribution rights.

     

    6.3 Nevada
Numbers.  LVGI will, in good faith, offer IGT the opportunity
to finance the NevadaNumbers game.  This financing opportunity will
allow IGT to gain approximately [...***...] per ticket in revenue on every
NevadaNumbers ticket sold.

     

    6.4 Additional.  LVGI
will, in good faith, offer IGT the opportunity to bankroll their The Million Dollar Ticket® games.  These banking opportunities
will allow IGT to earn a [...***...] mark-up on the true odds for each ticket
sold.

     

    ARTICLE
7 

    LVGI
Obligations

     

    7.1 Software
Development. LVGI will undertake commercially reasonable efforts to
design, develop, and build LVGI Developed Applications for delivery on IGT sb
Systems.

     

    

     

    ***Confidential
Treatment Requested

     

    
      
         

      

      
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    7.2 Compatibility
Commitment. LVGI will undertake
commercially reasonable efforts to make any LVGI Developed Applications
available to the IGT sb Systems and any EGMs compatible with the IGT sb Systems
first before such LVGI Developed Applications are available to non-IGT sb
Systems or non-IGT-compatible EGMs.

     

    7.3 For
purposes of this Section 7, the standard of “commercially reasonable efforts” is
only intended to refer to the level of efforts necessary to create the interface
with the IGT sb Systems, or to the EGMs compatible with the IGT sb Systems, as
applicable – such that if it is commercially reasonable to create said
interface, then LVGI will continue with the further obligations of Sections 7.1
and 7.2.

     

    ARTICLE
8 

    Representations
and Warranties

     

    8.1 General
Representations and Warranties.  Each Party represents and
warrants to the other as follows: (a) it is a valid and existing corporation and
in good standing under the laws of the state of its incorporation; (b) it has
the power and authority required to carry on its activities as they are now
conducted; (c) it has the has full legal right and corporate power, without the
consent of any other person to execute, deliver and to perform its obligations
under this LASA; (d) all corporate and other actions required to be taken by it
to authorize the execution, delivery and performance of this LASA and all
transactions contemplated hereby have been duly and properly taken; (e) no
consent, approval, authorization or filing of any certificate, notice
application, report or other document with any governmental authority is
required on the part of such Party in connection with the valid execution and
delivery of this LASA or the performance by such Party of any of its obligations
hereunder; (f) the execution, delivery and performance of this LASA do not
violate or conflict with any law applicable to it, any provision of its charter
or bylaws, any order or judgment of any court or other agency of government
applicable to it or any of its assets, or any contractual restriction binding on
or affecting it or any of its assets; and (g) the execution, delivery and
performance of this LASA has been duly and validly authorized by each Party, and
upon execution and delivery, this LASA constitutes the valid and binding
agreement of each Party enforceable against it in accordance with its
terms.

     

    8.2 No Third Party
Assistance.  LVGI represents and warrants that it will not
assist any third party to design, develop, or implement
any software applications that utilize the Licensed APIs and Protocols
under this Agreement or the IGT Licensed IP pursuant to the Retrofit License
Agreement that are deployed on a casino floor through an IGT sb System or
PlayerVision Device.  For sake of
clarity, this provision shall not preclude LVGI from utilizing subcontractors to
assist LVGI in designing,
developing or implementing any LVGI Developed Applications in
accordance with LVGI’s exercise of the rights granted it under this
LASA.  This provision also does not prohibit an End User from using
its own technical personnel to assist LVGI in designing, developing or
implementing any LVGI Developed Applications in accordance with LVGI’s exercise
of the rights granted it under this LASA.

     

    
      
         

      

      
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    ARTICLE
9 

    Confidentiality

     

    9.1 Confidentiality
Obligation.  Each Party will, and will cause each of its
Representatives to (a) hold all information relating to the business of the
other Party disclosed to it by reason of this LASA confidential; (b) not use any
such information except as necessary to perform its obligations and exercise its
rights under this LASA; and (c) not disclose any of such information to any
third party unless required by law or otherwise legally compelled to disclose
such information; provided, however, that to the extent that either Party may
become so legally compelled, such Party may disclose such information only if it
will first have used reasonable efforts to obtain, and, if practicable, will
have afforded the other Party the opportunity to obtain, an appropriate
protective order or other satisfactory assurance of confidential treatment for
the information required to be so disclosed.

     

    9.2 Exceptions to
Confidentiality.  The Party who received such confidential
information will not be required to keep confidential any information that (a)
was, at the time of disclosure to it, in the public domain; (b) after disclosure
to it, is published or otherwise becomes part of the public domain through no
fault of the receiving Party; (c) was received after disclosure to it from a
third Party who had a lawful right to disclose such information or materials to
it; (d) was required by law to be disclosed to any regulatory body having
jurisdiction over the receiving Party or any of its respective affiliates,
customers; (e) that disclosure is necessary by reason of applicable legal,
accounting or regulatory requirements beyond the reasonable control of the
receiving Party; or (f) is subsequently developed by the receiving Party
independently of the information received from the disclosing Party, as
evidenced by written documentation.

     

    9.3 Certain
Disclosures.  In the case of any disclosure pursuant to Section
9.2(d) or (e), to the extent practical, the receiving Party will notify the
disclosing Party in advance of the required disclosure and will use commercially
reasonable efforts to assist the disclosing Party in obtaining a protective
order, if available, covering such disclosure.  If such a protective
order is obtained, such information and materials will continue to be deemed to
be confidential information.  In no event shall the information
disclosed pursuant to Section 9.2(d) or (e) of this LASA exceed that which is
required by such legal, accounting or regulatory requirement, as
applicable.

     

    9.4 Terms of
Agreement.  LVGI agrees that this LASA and its provisions will
remain confidential, protected as confidential information as per the above
provisions of this Article 9, and will only be distributed to those persons
within LVGI that have a need to know, subject to any disclosure required by law
or regulation to the Securities and Exchange Commission (“SEC”), Department of
Justice or any court or tribunal of competent
jurisdiction.  Notwithstanding the foregoing, LVGI will have the right
to disclose the terms of this LASA to its attorneys, accountants, actual and
potential sources of financing, and potential acquirers, under appropriate
non-disclosure agreements or duties.

     

    
      
         

      

      
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    ARTICLE
10 

    Indemnification

     

    10.1 Indemnification
Obligations.  Each Party (the “Indemnifying Party”) will
indemnify, defend and hold the other Party and its officers, directors,
employees and agents (the “Indemnified Party”) harmless from any and all
damages, costs and expenses arising from any third party claims, threats,
proceedings or suits (“Third Party Claims”) to the extent such Third Party
Claims arise from or relate to the Indemnifying Party’s breach of any
representation, warranty or covenant hereunder.

     

    10.2 Indemnification
Procedures. Upon receiving notice of any Third Party Claim covered by
Section 10.1, the Indemnified Party will notify the Indemnifying Party promptly;
provided, however, that the right of indemnification hereunder will not be
adversely affected by a failure to give such notice, unless and only to the
extent that the Indemnifying Party is materially prejudiced
thereby.  The Indemnifying Party may assume control of the defense of
any such claim, if (a) the Indemnifying Party acknowledges its obligation to
indemnify the Indemnified Party for any losses resulting from such claim, and
(b) the claim does not seek to impose any liability on the Indemnified Party
other than money damages; provided, however, that the Indemnified Party may, at
its own cost and expense, participate through its attorneys or otherwise, in
such investigation, trial and defense of such claim and any appeal arising
therefrom.  The Indemnifying Party will not settle any such claim
without the Indemnified Party’s prior written consent (which consent will not be
unreasonably withheld or delayed), unless such settlement is solely for monetary
damages for which the Indemnified Party is fully indemnified under this
Agreement.  If the Indemnifying Party does not assume full control
over the defense of a claim pursuant to this Section 10.2, then the Indemnifying
Party may participate in such investigation, defense or trial, solely at its
cost and expense, and the Indemnified Party will have the right to defend or
settle such claim in such manner as the Indemnified Party deems appropriate,
solely at the cost and expense of the Indemnifying Party.

     

    10.3 Indemnification
of IGT against Claims Arising from LVGI Installations.  LVGI
will defend, indemnify and hold harmless IGT and its officers, directors,
employees and agents from any and all damages, costs, and expenses arising from
any claim relating to or arising from any uses or installations of the LVGI
Developed Applications.

     

    ARTICLE
11 

    Term
and Termination

     

    11.1 Term.  The
term of this LASA will commence on the Effective Date and will continue in force
until terminated by mutual written consent of all parties to this LASA unless
terminated earlier as set forth in this Article 11. However, the support
obligations of Section 5 shall conclude at the earlier of eight (8) years from
the Effective Date or the date on which this Agreement is terminated per its
terms.

     

    
      
         

      

      
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    11.2 Termination for
Regulatory Compliance.  Each Party and its affiliates conduct
business in a highly regulated industry under privileged licenses issued by
gaming regulatory authorities both domestic and international.  Each
Party maintains a compliance program that has been established to protect and
preserve the name, reputation, integrity, and good will of such Party and its
affiliates and to monitor compliance with the requirements established by gaming
regulatory authorities in various jurisdictions around the
world.  Each Party agrees to cooperate with requests, inquiries, or
investigations of gaming regulatory authorities or law enforcement agencies in
connection with the performance of this LASA.  Each Party agrees to
fully cooperate with the other Party in the completion of any necessary due
diligence background investigation.  If either Party receives a
written or oral opinion, recommendation or indication from a gaming regulatory
authority (including a representative thereof) or if either Party determines,
based upon facts and evidence that would reasonably be accepted by gaming
regulatory authorities or other licensed gaming entities, that continuation of
this LASA would jeopardize the gaming licenses, permits or status of such Party
or any of its affiliates with any gaming regulatory authority or similar law
enforcement authority (“Regulatory Trigger”), then: (a) such Party will give
notice to the other Party of the Regulatory Trigger, including details of the
opinion, recommendation, indication or asserted facts (to the extent known by
the receiving Party), and provided such Party is given a time period to address
the basis for said Regulatory Trigger, that Party will provide the other Party a
reasonable time frame within such Party's reasonably allotted time period to
comment upon and take action to remove such basis; and (b) if such Regulatory
Trigger is not cured to that Party's reasonable satisfaction, such that a
reasonable risk remains that jeopardizes the status of such Party with any
gaming regulatory authority, that Party may terminate such portion of this LASA
which would cure the Regulatory Trigger (leaving the remainder of this LASA in
force and effect), and if such cannot be effected, such Party may terminate this
entire LASA immediately.

     

    11.3 Consequences of
Termination.  In the event that this LASA or any portion hereof
is terminated pursuant to Section 11.1, any payments made or payment obligations
that exist pursuant to this LASA at the time of such termination shall be
non-refundable or remain due and payable (as the case may be); provided that
such Regulatory Trigger does not mandate otherwise.  In addition, the
rights intended to be unaffected according to the express provisions of this
LASA and Articles 4, 8-11, and 13 will survive any such
termination.  All other provisions of this LASA will be
terminated.

     

    11.4 Dispute
Resolution.  Prior to any termination of this LASA for breach,
or the commencement of any litigation by one Party (the first Party) against the
other arising out of an alleged breach of this LASA, the matter must first be
referred to a senior executive of each Party by the first Party sending to the
other Party a written notice that sets out the particulars of the dispute and
the alleged breach of this LASA.  The senior executives of each Party
will then arrange to meet at the next most convenient time, but no later than 30
days from receipt of the dispute notice, and will use commercially reasonable
efforts to resolve the dispute in good faith.  Should the senior
executives fail to resolve the dispute within seven days of the date of their
meeting, then either Party may initiate non-binding mediation to resolve such
dispute, with costs to be shared equally by the Parties.  If such
mediation fails to resolve such dispute within 10 days of the mediation, each
Party is free to seek any remedies available to it to resolve such dispute,
including litigation.

     

    
      
         

      

      
        - 10
-

        
          

        

      

      
         

      

    

    

     

    11.5 Termination for
Failure to Pay.  Notwithstanding
Section 11.4 above, any failure to pay monies due under this Agreement when due,
including any royalties due under Article 3, shall constitute a material breach,
and the non-breaching party may immediately terminate this Agreement for
non-payment when the defaulting party fails to cure such non-payment within 30
days of written notice specifying such non-payment.

     

    ARTICLE
12 

    Certified
Application Developer

     

    12.1 Certified
Application Developer.  IGT will grant LVGI status as a
Certified Application Developer (to be further defined) for the IGT sb
System.  The granting of this status will require that LVGI
demonstrate, to IGT’s satisfaction, the ability to meet specifications and
customer expectations, as to be determined.

     

    ARTICLE
13 

    Miscellaneous

     

    13.1 Notices.  Whenever
this LASA provides that any notice, demand, request, consent, approval,
declaration, or other communication be given to or served upon any of the
parties by another, such notice, demand, request, consent, approval,
declaration, or other communication shall be in writing and shall be deemed to
have been validly served, given, or delivered (and “the date of such notice” or
words of similar effect will mean the date) five days after deposit in the
United States mails, certified mail, return receipt requested, with proper
postage prepaid, or upon confirmed receipt thereof (whether by noncertified
mail, telecopy, express delivery, or otherwise), whichever is earlier, and
addressed to the party to be notified as follows:

     

    
      
         

      

      
        - 11
-

        
          

        

      

      
         

      

    

    

     

    
      	
              If
      to IGT, at:

            	
              IGT

              9295
      Prototype Drive

              Reno,
      Nevada  89521

               

              Attention:           Richard
      Pennington

              Fax:                      775.448.1488

            
	 
      	 
      
	
              with
      copies to:

            	
              Fulbright
      & Jaworski L.L.P.

              2200
      Ross Avenue

              Suite
      2800

              Dallas,
      Texas 75201

               

              Attention:           Glen
      J. Hettinger

              Fax:                      214.855.8200

            
	 
      	 
      
	
              If
      to LVGI, at:

            	
              LVGI

              4000
      West Ali Baba Lane

              Las
      Vegas, Nevada 89118

               

              Attn:     
      Jon Berkley

              Fax:       
      702.733.4907

              With copies to
    Legal@LVGI.com

            
	 
      	 
      
	
              with
      copies to:

            	
              Weide & Miller, Ltd.

              7251 W. Lake Mead Blvd., Suite
      530

              Las Vegas, NV 89128

               

              Attention:  R. Scott
      Weide

              Fax:            702-382-4805

            

    

     

    or to
such other address as each party may designate for itself by like
notice.  No notice, demand, request, consent, approval, declaration,
or other communication shall be deemed to have been given or received unless and
until it sets forth all items of information required to be set forth therein
pursuant to the terms of this LASA.

     

    13.2 Choice of
Law.  This LASA will be governed by and construed in accordance
with the laws of the State of Nevada, without regard to any conflicts of
laws.  IN THE EVENT OF A DISPUTE BETWEEN THE PARTIES RELATING TO THIS
LASA, EACH OF THE PARTIES HERETO SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEVADA COUNTY OF WASHOE AND DOES HEREBY WAIVE ANY CLAIM
THAT SUCH FORUM IS INCONVENIENT.

     

    
      
         

      

      
        - 12
-

        
          

        

      

      
         

      

    

    

     

    13.3 Integration
Amendments; Waivers.  This LASA constitutes the entire
agreement among the Parties with respect to the subject matter hereof and
supersedes all previous written, and all previous or contemporaneous oral,
negotiations, understandings, arrangements, understandings, or
agreements.  This LASA may not be amended, modified, or supplemented,
or any provision of this LASA waived, except by a writing signed by all the
parties to this LASA.  No custom, practice, course of dealing, or
similar conduct will be deemed to amend, modify, or supplement any term of this
LASA.  The failure of any Party to enforce any right or remedy under
this LASA, or to enforce any such right or remedy promptly, will not constitute
a waiver thereof, nor give rise to any estoppel against such Party, nor excuse
any other Party from its obligations under this LASA.  Any waiver of
any such right or remedy by any Party must be in writing and signed by the Party
against which such waiver is sought to be enforced.  No waiver will be
deemed a continuing waiver or a waiver of any right beyond the specific right
waived in such waiver.

     

    13.4 Further
Assurances.  Each Party to this LASA shall, without the
necessity of any further consideration, execute and deliver any and all such
further documents and take any and all such other actions as may be reasonably
necessary or appropriate to carry out the intent and purposes of this LASA and
to consummate the transactions contemplated hereby.

     

    13.5 Force
Majeure.  No Party will be deemed in default if delayed or
prevented from performing its obligations under this LASA, in whole or in part,
due to an act of God, fire, flood, explosion, civil disorder, strike, lockout or
other labor trouble, material shortages of utilities, equipment, materials or
facilities, delay in transportation, breakdown or accident, riot, war, terrorist
attack or other cause beyond its reasonable control (a “Force Majeure Event”);
provided that such party will resume full performance of this Agreement as soon
as practicable following the conclusion of the Force Majeure Event; and provided
further, that any adverse event resulting directly or indirectly from conditions
generally affecting any industry or industry sector in which a Party operates or
competes which does not have a materially disproportionate impact on the Party
relative to other industry participants shall not be considered a Force Majeure
Event under this LASA.

     

    13.6 Headings.  The
headings in this LASA are for convenience of reference only and are not part of
the substance of this LASA.

     

    13.7 Severability.  It
is not the intention of the Parties to this LASA expressly to violate any public
policy, statutory or common law rules, regulations, or decisions of any
governmental or regulatory body.  If any provision of this LASA are
interpreted or construed as being in violation of any such policy, rule,
regulation, or decision, the provision, section, sentence, word, clause, or
combination thereof causing such violation shall be rendered inoperative to the
minimum extent necessary in order to not be violative as set forth above (and in
lieu thereof the Parties jointly request the court to insert such provision,
sentence, word, clause, or combination thereof that is as favorable as possible
to the Party the rights of which were made inoperative as may be valid and
consistent with the intent of the parties under this LASA) and the remainder of
this LASA, as amended, shall remain binding upon the Parties to this LASA,
unless the inoperative provision would cause enforcement of the remainder of
this LASA to be inequitable under the circumstances.

     

    
      
         

      

      
        - 13
-

        
          

        

      

      
         

      

    

    

     

    13.8 Time.  Time
shall be of the essence with respect to this LASA.

     

    13.9 Assignment.
Neither this LASA nor any rights hereunder may be transferred
or assigned, nor any duties under this LASA delegated, by operation of law or
otherwise, without the written consent of all parties to this LASA, except that
IGT may assign this LASA and all rights hereunder and delegate all of its obligations hereunder to an affiliate of IGT and except that
LVGI may assign this LASA and all
rights hereunder and delegate all of its
obligations hereunder to a person or entity
that is a non-Competitor of IGT that acquires all or substantially all of the
assets of LVGI in a single transaction or series or related transactions. For
the purposes of the foregoing, a Change of Control of LVGI will be
deemed an attempted assignment of this LASA
and the rights hereunder and a delegation of all duties hereunder. Any attempted assignment, transfer or
delegation that is that is not in conformance with this agreement is
void.

     

    “Change of
Control” means the occurrence of any of the following
events:

     

    
      	
              a  

            	
              LVGI
      becomes aware of the acquisition by any “person” or group (within the
      meaning of Section 13(d)(3) or Section 14(d)(2) of the
      Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any
      successor provision), including any group acting for the purpose of
      acquiring, holding or disposing of securities (within the meaning of Rule
      13d-5(b)(1) under the Exchange Act) in a single transaction or in a
      related series of transactions, by way of merger, consolidation or other
      business combination or purchase of “beneficial ownership” (within the
      meaning of Rule 13d-3 under the Exchange Act, or any successor provision)
      of 20% or more of the total voting power of the Voting Stock of
      LVGI;

            

    

     

    
      	
              b  

            	
              (i) there
      shall be consummated any share exchange, consolidation or merger of LVGI
      pursuant to which LVGI’s common stock would be converted into cash,
      securities or other property, other than pursuant to a share exchange,
      consolidation or merger of LVGI in which the holders of LVGI’s common
      stock immediately prior to the share exchange, consolidation or merger
      have, directly or indirectly, at least a majority of the total voting
      power of the voting stock of the continuing or surviving corporation
      immediately after the share exchange, consolidation or merger, or
      (ii) LVGI sells, assigns, conveys, transfers, leases or otherwise
      disposes of all or substantially all of the assets of LVGI and its
      Restricted Subsidiaries to another Person and any “person” (as defined in
      clause (a) above) is or becomes the “beneficial owner” (as defined in
      clause (a) above), directly or indirectly, of 20% or more of the
      total voting power of the voting stock of the transferee entity in such
      disposition of assets;

            

    

     

    
      	
              c  

            	
              during
      any period of two consecutive years, individuals who at the beginning of
      such period constituted the Board of Directors (together with any new
      directors whose election by such Board of Directors or whose nomination
      for election by the stockholders of LVGI was approved by a vote of a
      majority of the directors of LVGI then still in office who were either
      directors at the beginning of such period or whose
      election or nomination for election was previously so approved) cease for
      any reason to constitute a majority of the Board of Directors then in
      office;

            

    

     

    
      
         

      

      
        - 14
-

        
          

        

      

      
         

      

    

    

     

    
      	
              d  

            	
              the
      adoption of a plan relating to the liquidation or dissolution of LVGI;
      or

            

    

     

    
      	
              e  

            	
              the
      occurrence of any other event that would constitute a change in control of
      LVGI within the meaning of Item 5.01 (or successor item) of Forms 8-K (or
      successor form) under the Exchange
Act.

            

    

     

    13.10 No
Partnership.  This LASA forms a contractual arrangement only
and does not constitute the parties as a partnership or affiliated
party.

     

    13.11 Business
Day.  Should the terms of this LASA require the performance of
any obligation or the fulfillment of any condition on a day other than a
business day, such obligation or fulfillment may be delayed until midnight on
the next day that is a business day for the party to perform.

     

    13.12 Counterparts.  This
LASA may be executed in any number of counterparts, by means of facsimile or
portable document format (pdf), which shall individually and collectively
constitute one agreement.

     

    13.13 Publicity.  Neither
Party shall issue any press release or make any other public announcement with
respect to this LASA or the transactions contemplated hereby without obtaining
the prior written approval of the other Party (which will not be unreasonably
withheld or delayed).  Where disclosure of information regarding this
LASA or the transactions contemplated hereby may be required by law or the
regulations of any securities exchange, the Party complying with applicable law
or regulations shall provide sufficient time for the other Party to comment on
those portions of such disclosures that pertain to this LASA before such
disclosures are made.

     

     

    EXECUTION

     

    Each
party has caused this LASA to be executed by a duly authorized officer and
delivered as of the Effective Date, whereupon it enters into full force and
effect in accordance with its terms.

     

    [Signature
Page Follows]

     

    
      
         

      

      
        - 15
-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties have caused this LASA to be executed and delivered as of the date first
above written.

     

    

     

     

    LVGI

    

     

     

    By:  /s/ Jon D.
Berkley                                        

    Name:  Jon D.
Berkley                                         

    Title:  President &
CEO                                      

     

     

    IGT

     

     

    By:  /s/ Richard
Pennington                               

    Name:  Richard
Pennington                                

    Title:  Exec. VP
– Corporate
Strategy                

     

    

    
      
         

      

      
        - 16
-ex1013.htm

    Exhibit
10.13

     

    ***Text
Omitted and Filed Separately

    with
the Securities and Exchange Commission.

    Confidential
Treatment Requested

    Under
17 C.F.R. Sections 200.80(b)(4)

    and
240.24b-2

     

    RETROFIT
LICENSE AGREEMENT

     

    This
Retrofit License Agreement (the “Agreement”)
is made and entered into as of this September 30, 2008 (the “Effective
Date”), by and
between Las Vegas Gaming, Inc., (LVGI), a
Nevada corporation, with a primary business address of 4000 West Ali Baba Lane,
Las Vegas, Nevada 89118, and IGT (IGT), a
Nevada corporation with a primary business address of 9295 Prototype Drive,
Reno, NV 89521 (each a “Party” and
collectively the “Parties”).

     

     

    WITNESSETH

     

    WHEREAS, IGT owns a number of
design patents, trademarks, and copyrights in addition to trade dress related to
Gambling (defined below) and Electronic Gaming Machines (defined
below);

     

    WHEREAS, IGT has asserted
that LVGI has infringed certain of IGT’s trademarks and copyrights through
retrofitting and/or modifying Electronic Gaming Machines manufactured by IGT to
provide users access to LVGI’s PlayerVision® system;

     

    WHEREAS, the Parties wish to
amicably resolve all claims that have been asserted or could be asserted by and
between IGT and LVGI; and

     

    WHEREAS, in order to resolve
the claims, LVGI desires to license certain of IGT’s design patents, trademarks,
copyrights, and trade dress related to Electronic Gaming Machines for the
purpose of retrofitting or modifying existing Electronic Gaming
Machines;

     

    NOW, THEREFORE, in
consideration of the premises and the mutual promises and covenants contained
herein, the Parties agree as follows:

     

    ARTICLE
1 

    Definitions

     

    The
following terms with initial capital letters shall have the following
meanings:

     

     “Competitor”
means any manufacturer, supplier, or distributor of Gambling Products with which
IGT reasonably considers itself to compete for business.

     

    “Electronic Gaming
Machine” or “EGM” means
electronic or electro-mechanical device including the peripheral components
housed in its enclosure that is primarily designed and used for Gambling, and
that has all of the following characteristics: (a) is used by the player to
input

     

    
      
         

      

      
        - 1
-

        
          

        

      

      
         

      

    

    the wager
amount and otherwise initiate game play; (b) displays the amount wagered, the
outcome of the wager, and the credit amount available to the player; (c)
displays the outcome of the Gambling event to the player within five minutes of
initiating the wager; and (d) is provided to the player by the EGM
operator.  The definition of an EGM is limited to the device in close
proximity to the player and does not include supporting software and servers
remote from the device.  For the avoidance of doubt, and by way of
example, personal computers, televisions, personal digital assistants (PDAs),
and cellular and other mobile telephones are not primarily designed for Gambling
and are not EGMs for the purposes of this defined term.

     

    “End User”
means the licensed operator (e.g., the casino operator) of an Electronic Gaming
Machine.

     

    “Functionality” means the PVD hardware which is substantially similar
to the functionality being provided as of July 17th, 2008.

     

    “Gambling”
means playing or exposing for play any activity or event involving a wager or a
placing at risk a sum of money or other representative of value, whether or not
redeemable for cash, on an occurrence the outcome of which is uncertain,
including events that include some element of skill (e.g., sports, card games,
and racing).  The award corresponding to the outcome of such event or
activity can be cash or any other prize.

     

     “IGT Licensed
IP” means those IGT-owned copyrights, trademarks, trade dress, and design
patents, but only to the extent that such are necessary for modifying an IGT
Machine (defined below) with a PVD (defined below).  For the sake of
clarity, IGT Licensed IP does not include any utility patents owned by IGT or
any non-IGT intellectual property to which IGT has an interest.

     

    “IGT
Machine” means an EGM manufactured by IGT which is placed in the market
for sale, lease, rental, or placement under a trade name owned or controlled by
IGT.  The definition of IGT Machine excludes IGT’s recurring revenue
or participation devices – which include the IGT megajackpot
systems.

     

    “IGT sb
System” or “ISBS”
means IGT’s server-based network systems which utilize the following IGT user
interfaces: sbNexGenTM, Service WindowTM, and other interfaces to IGT systems as
may be necessary, subject to final approval by IGT.  For the sake of
clarity, this excludes the non-sb NexGen, Advantage Systems, and TITO
systems.  

     

    “IGT
Systems” means all IGT sb Systems, Advantage® systems, including, but not
limited to, TITO systems, and any other computer system and/or operational
network licensed, sold, or placed by IGT or its distributors and related to
Gambling.

     

    “Intellectual
Property” means all intellectual property rights including all past,
present and future rights in patents, industrial property rights, copyrights,
trademarks, and trade secrets.

     

    “Place,”
“Placed” or
“Placement”
shall mean the sale, lease, or any other provision of Products (defined below)
including, without limitation, on a participation or any other revenue
generating basis.

     

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

    “PlayerVision
Device(s)” or “PVD(s)”
means the hardware, software, firmware connections, enclosures, and housings
that are only capable of providing the Functionality.

     

    “Product”
means any product or service.

     

    “Retrofit”
(or “Retrofitting”) means putting a PVD into an IGT Machine. 

     

    “Retrofitted IGT
Machine(s)” means an IGT Machine that has had a PVD installed into
it..

     

    ARTICLE
2 

    License

     

    2.1 License Grant.
Subject to the terms and conditions of this section and of this
Agreement, IGT hereby grants LVGI a limited, non-exclusive,
non-transferable (except as provided in Section
10.9), non-sub-licensable, world-wide license to
the IGT Licensed IP for the sole purpose of Retrofitting.  This grant does not provide any license to trademarks,
trade dress, and design patents for use outside the IGT
Machine.  Also, this grant does not provide any license to incorporate
IGT Licensed IP into LVGI content.  However, with respect to the
copyrights, the license is limited to the display of the content on the EGM
video screen so long as it does not utilize alpha compositing or digital
compositing technology.  Any Retrofitting shall be made with an
End User license restriction for the IGT Licensed IP to be used in the same IGT
Machine and in the same casino property as initially installed.  For
example, and without expanding the scope of the grant above, an End User that
purchases a PVD to Retrofit a specific IGT Machine may properly use the IGT
Licensed IP along with that Retrofitted IGT Machine but only for as long as that
PVD remains in the same IGT Machine and in the same casino.  In the
event that an End User moves the PVD to a new EGM or moves the Retrofitted IGT
Machine to a different casino, the existing license to use the IGT Licensed IP
associated with that PVD on that Retrofitted IGT Machine will be
void.  For the avoidance of doubt, the rights provided under this
Agreement do not include any license or covenant not to sue with respect to any
IGT utility patents or any utility patents to which IGT may have
rights.

     

    2.2 License
Limitations Under [...***...] or Before [...***...].  The license to
the IGT Licensed IP granted in Section 2.1 is limited to a maximum of [...***...]
IGT Machines that are Placed into operation worldwide as of [...***...], and for
which the Retrofitting is performed by that date.  These Placements
shall be licensed at no cost to LVGI for the life of those Placements, so long
as:

     

    
      	
              1.  

            	
              such
      Retrofitted IGT Machines remain in the same casino property as they were
      originally placed prior to [...***...];

            

    

    
      	
              2.  

            	
              such
      PVD has not been changed to add any new Functionality to that which was originally
      installed prior to [...***...]; and

            

    

    
      	
              3.  

            	
              any
      hardware or firmware installed as a part of the PVD remains in the same
      IGT Machine as it was originally Retrofitted or modified prior to
      [...***...].

            

    

     

    It is further agreed that the repair or replacement of
an existing Placement of a PVD shall not comprise a new Placement, to the extent
such repair or replacement does not change existing functionality in a way that
can be perceived by the player.

    ***Confidential
Treatment Requested

     

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

    

     

    2.3 License
Limitations Over [...***...] or After [...***...].  After the earlier
of the Placement of the [...***...] Retrofitted IGT Machine or [...***...], and
subject to the limitations and restrictions of Section 2, IGT will further
license LVGI to use the IGT Licensed IP for the purpose of Retrofitting up to a
maximum of [...***...] of the floor of IGT Machines in any individual gaming
facility or casino that is operating an IGT ISBS.  For example, after
[...***...], if a single casino property has a total floor of [...***...] EGMs with
[...***...] of the [...***...] total EGMs being IGT Machines, LVGI will be licensed
to Retrofit [...***...] IGT Machines in this single casino property, but only if the
single casino property also operates an IGT ISBS.  The royalty rate
for these [...***...] Retrofitted IGT Machines (i.e., [...***...] of the total floor of
IGT Machines [...***...]) in the casino property is calculated as provided in
Section 3.2.  After the earlier of the Placement of the
[...***...] Retrofitted IGT Machine or [...***...], LVGI shall not, without the
express written consent of IGT, modify any IGT Machines in locations that are
not operating an IGT sb System.

     

    ARTICLE
3 

    Consideration/Royalty

     

    3.1 Royalty-Free
Placements.  Retrofitted IGT Machines that are licensed
pursuant to Section 2.2, and which continue in conformance with the requirements
of Section 2.2, will be licensed for use of the IGT Licensed IP to LVGI without
a license fee for the life of those Placements at their original
locations.

     

    3.2 Royalty-Bearing
Placements.  After the earlier of the Placement of the [...***...]
Retrofitted IGT Machine or [...***...], LVGI will pay a royalty to IGT of [...***...]
per Retrofitted IGT Machine for each additionally Placed, moved, or modified
Retrofitted IGT Machine placed up to a maximum of [...***...] of the floor of IGT
Machines in any individual gaming facility or casino that is operating an IGT
ISBS.  After [...***...], the royalty shall increase to [...***...] per
Retrofitted IGT Machine for those Retrofitted IGT Machines Placed up to a
maximum of [...***...] of the floor of IGT Machines in any individual gaming
facility or casino that is operating an IGT ISBS.

     

    3.3 Royalty
Payments.  LVGI shall furnish to IGT, within 45 days of the end
of each calendar quarter in which LVGI has installed a PVD into an IGT Machine
that has been Placed, a detailed royalty statement showing the number of IGT
Machines modified with a PVD and Placed into operation during the immediately
preceding quarter, separated into Placements for each country in which sales, or
leases, or profit participations occur.  The royalty payment shall
accompany the royalty statement.  Royalties on Placed Retrofitted IGT
Machines shall be made without any tax withholding.

     

    3.4 Failure to
Pay.  Any amounts not paid when due will accrue interest at the
rate of 1.5% per month.  For the
avoidance of doubt, any failure to pay is an event of default and is subject to
the notice, cure, and termination provision as provided in Section
10.5.

     

    ***Confidential
Treatment Requested

     

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

    

     

    ARTICLE
4 

    Records
and Audits

     

    4.1 Records.  LVGI
shall maintain at its principal office for the term of this Agreement and for 7
years thereafter accurate books and records in sufficient detail to enable IGT
to verify the basis for and the accuracy of the royalty statements required to
be submitted to IGT pursuant to Section 3.3 and LVGI’s compliance with each and
every term and condition of this Agreement.

     

    4.2 Audit and
Inspection Rights.  IGT shall have the right, exercisable not
more than once in any calendar year during the period outlined in Section 4.1,
to audit, through its own financial employees or through independent accountants
(together the “Auditor”), the books and records (both electronic and hard copy)
contemplated at Section 4.1.  IGT shall provide LVGI with no less than
2 weeks written notice of its intent to audit LVGI’s books and records as
provided under this Agreement and LVGI shall be ready for such audit – meaning
that LVGI shall have all records required hereunder ready for inspection upon
the arrival of the Auditor and LVGI shall also promptly provide additional
documentation as may be required.  Such notice shall indicate the
period to be audited, the identity of the auditor and the scope of the
audit.  LVGI shall immediately pay any shortfall together with
interest as provided in the next sentence.  Should an audit reveal a
discrepancy of royalty payment in relation to royalty actually earned greater
than 5% annually, LVGI shall pay any shortfall together with interest on any
outstanding balance at the lesser of 1.5% monthly or the maximum amount
permitted by law, and shall reimburse IGT for the reasonable cost of the
audit.  If audits of LVGI reveal a shortfall in royalty payment of
greater than 5% in any fiscal year, and the findings support that the
withholding of such royalty payments was done intentionally or in bad faith, IGT
shall have the right to terminate this Agreement.  In all events,
IGT’s right to terminate shall be subject to the provisions of Article
10.

     

    ARTICLE
5 

    LVGI
Obligations

     

    5.1 Technical
Specifications.  As
a condition precedent to the execution and closing of this Agreement, LVGI must
attach hereto as Appendix A, all detailed technical specifications for the PVD
currently pending before the Nevada Gaming Control Board (NGCB) and/or Game
Labs, Inc. (GLI), as of July 17th,
2008.

     

    5.2 Dismissal of the
Lawsuit Between the Parties.  The Parties are currently engaged
in a lawsuit in the United States District Court for the District of
Nevada,  which is captioned IGT vs. Las Vegas Gaming, Inc., Case No.
3:07-cv-415-BES(VPC) (“the Pending Lawsuit”).  In the Pending Lawsuit,
IGT has alleged that LVGI has infringed certain copyrights, trademarks and trade
dress owned by IGT.  Both Parties agree to instruct their litigation
counsel handling the Pending Lawsuit to present to the court in the Pending
Lawsuit the “Order Granting Stipulated Motion for Dismissal” as contained in
attached Appendix B and the “Stipulated Motion for Dismissal” as contained in
attached Appendix C.  The Parties hereby stipulate to entry of a final
judgment with prejudice in the Pending Litigation in the form of the “Order
Granting Stipulated Motion for Dismissal” as contained in attached Appendix
B.

     

    5.3 IGT Release of
LVGI.  IGT does hereby fully and forever release LVGI and its
subsidiary Imagineering Gaming, Inc., and their officers, directors,
shareholders, employees and attorneys and customers from any and all claims,
known and unknown, that arise out of the subject matter of the Pending
Litigation or, with the exception of any claims based on utility patents, that
were or could have been asserted in the Pending Litigation or relating to any
financial obligations of LVGI or its subsidiary Imagineering Gaming, Inc. to IGT
as of September 11, 2008.  For the sake of clarity such released
financial obligations do not include any financial obligations of LVGI or its
subsidiary Imagineering Gaming, Inc. to IGT arising from or relating to this
Agreement, the License and Application Support Agreement, the Intellectual
Property Access Agreement, and/or the LVGI Investment Agreement.

     

    5.4 LVGI Release of
IGT.  LVGI does hereby fully and forever release IGT and its
officers, directors, shareholders, employees and attorneys  and
customers from any and all claims, known and unknown, that arise out of the
subject matter of the Pending Lawsuit or, with the exception of any claims based
on utility patents, that were or could have been asserted in the Pending Lawsuit
or relating to any financial obligations that IGT may be liable to LVGI as of
September 11, 2008.  For the sake of clarity such released financial
obligations do not include any financial obligations of IGT to LVGI arising from
or relating to this Agreement, the License and Application Support Agreement,
the Intellectual Property Access Agreement, and/or the LVGI Investment
Agreement.

    
 

    
      
        
           

        

        
          - 5
-

          
            

          

        

        
           

        

      

    

    

    
       

      ARTICLE
6 

      Representations
and Warranties

       

      6.1 General
Representations and Warranties.  Each Party represents and
warrants to the other as follows: (a) it is a valid and existing corporation and
in good standing under the laws of the state of its incorporation; (b) it has
the power and authority required to carry on its activities as they are now
conducted; (c) it has the has full legal right and corporate power, without the
consent of any other person to execute, deliver and to perform its obligations
under this Agreement; (d) all corporate and other actions required to be taken
by it to authorize the execution, delivery and performance of this Agreement and
all transactions contemplated hereby have been duly and properly taken; (e) no
consent, approval, authorization or filing of any certificate, notice
application, report or other document with any governmental authority is
required on the part of such Party in connection with the valid execution and
delivery of this Agreement or the performance by such Party of any of its
obligations hereunder; (f) the execution, delivery and performance of this
Agreement do not violate or conflict with any law applicable to it, any
provision of its charter or bylaws, any order or judgment of any court or other
agency of government applicable to it or any of its assets, or any contractual
restriction binding on or affecting it or any of its assets; and (g) the
execution, delivery and performance of this Agreement has been duly and validly
authorized by each Party, and upon execution and delivery, this Agreement
constitutes the valid and binding agreement of each Party enforceable against it
in accordance with its terms.

       

    

    6.2 No Third Party
Assistance.  LVGI represents and warrants that it will not
assist any third party to modify any IGT Machine in any manner. For sake of clarity, this provision shall not preclude
LVGI from utilizing subcontractors to assist LVGI in modifying an IGT machine in
accordance with LVGI’s exercise of the rights granted it under this
Agreement.  This provision also does not prohibit an End User from
using its own technicians to assist LVGI in modifying an IGT machine in
accordance with LVGI’s exercise of the rights granted it under this
Agreement. LVGI further agrees
not to assist in development or license any third parties for development or deployment of any technology for EGMs or for Functionalities that may be
similar to subject matter described by the LVGI PVT Patents, but LVGI may use distributors of its choice for
distribution of its own Products, subject to IGT’s rights under the IPAA.  For sake of clarity, this provision shall
not preclude LVGI from utilizing sub-contractors to assist LVGI in Developing or
deploying LVGI’s technology.

     

    6.3 Authorized
Modifications Only.  LVGI represents and warrants that it will
not modify any IGT Machine in any manner other than as expressly licensed herein
or in any manner that is inconsistent with the rights licensed
herein.

     

    6.4 No Intention for
Suit. IGT represents and warrants that it is not IGT’s current intention
to bring a patent infringement law suit against LVGI.  LVGI
acknowledges that this representation and warranty may not be construed to be a
license or a covenant not to sue with respect to any IGT patents.  In
the event that either Party contemplates a potential law suit against the other
Party with respect to Intellectual Property rights, the Parties will exercise
the procedure as specified in section 2.06 (Mechanism for Resolving Potential
Patent Infringement Between the Parties) or section 2.07 (Mechanism for
Resolving Potential Non-Patent Infringement Between the Parties) of the
Intellectual Property Access Agreement between the Parties.

     

    6.5 Quality.  LVGI
agrees that its use of the IGT owned trademarks shall be at all times of a high
quality and conform to high standards consistent with IGT’s products and
services and LVGI shall provide to IGT, pursuant to IGT’s reasonable request,
the right to inspect Retrofits and LVGI shall otherwise reasonably cooperate
with IGT to facilitate IGT’s quality control.

     

    6.6 Ownership.
LVGI acknowledges and agrees that IGT is the owner of all right, title
and interest in and to the IGT owned trademarks, including all associated
registrations, pending applications and statutory and common law
rights.  LVGI agrees that all use of the IGT owned trademarks shall
inure to the benefit of IGT and LVGI shall not acquire any rights by virtue of
any use of the IGT owned trademarks.

     

    6.7 Use.  LVGI
shall not use the IGT owned trademarks other than as licensed in this Agreement
and in connection with sale, offering for sale or Placement of Retrofitted IGT
Machines.

     

    6.8 Goodwill.  LVGI
recognizes the high value of the goodwill associated with the IGT owned
trademarks and acknowledges that all rights therein and the goodwill pertaining
thereto belong exclusively to IGT and LVGI assigns any existing or potential
interest or rights it may have therein to IGT.

     

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

    

     

     

    ARTICLE
7 

    Confidentiality

     

    7.1 Confidentiality
Obligation.  Each Party will, and will cause each of its
Representatives to (a) hold all information relating to the business of the
other Party disclosed to it by reason of this Agreement confidential; (b) not
use any such information except as necessary to perform its obligations and
exercise its rights under this Agreement; and (c) not disclose any of such
information to any third party unless required by law or otherwise legally
compelled to disclose such information; provided, however, that to the extent
that either Party may become so legally compelled, such Party may disclose such
information only if it will first have used reasonable efforts to obtain, and,
if practicable, will have afforded the other Party the opportunity to obtain, an
appropriate protective order or other satisfactory assurance of confidential
treatment for the information required to be so disclosed.

     

    7.2 Exceptions to
Confidentiality.  The Party who received such confidential
information will not be required to keep confidential any information that (a)
was, at the time of disclosure to it, in the public domain; (b) after disclosure
to it, is published or otherwise becomes part of the public domain through no
fault of the receiving Party; (c) was received after disclosure to it from a
third Party who had a lawful right to disclose such information or materials to
it; (d) was required by law to be disclosed to any regulatory body having
jurisdiction over the receiving Party or any of its respective affiliates,
customers; (e) that disclosure is necessary by reason of applicable legal,
accounting or regulatory requirements beyond the reasonable control of the
receiving Party; or (f) is subsequently developed by the receiving Party
independently of the information received from the disclosing Party, as
evidenced by written documentation.

     

    7.3 Certain
Disclosures.  In the case of any disclosure pursuant to Section
7.2(d) or (e), to the extent practical, the receiving Party will notify the
disclosing Party in advance of the required disclosure and will use commercially
reasonable efforts to assist the disclosing Party in obtaining a protective
order, if available, covering such disclosure.  If such a protective
order is obtained, such information and materials will continue to be deemed to
be confidential information.  In no event shall the information
disclosed pursuant to Section 7.2(d) or (e) of this Agreement exceed that which
is required by such legal, accounting or regulatory requirement, as
applicable.

     

    7.4 Terms of
Agreement.  LVGI agrees that this Agreement and its provisions
will remain confidential, protected as confidential information as per the above
provisions of this Article 7, and will only be distributed to those persons
within LVGI that have a need to know, subject to any disclosure required by law
or regulation to the Securities and Exchange Commission (“SEC”), Department of
Justice or any court or tribunal of competent
jurisdiction.  Notwithstanding the foregoing, LVGI will have the right
to disclose the terms of this Agreement to its attorneys, accountants, actual
and potential sources of financing, and potential acquirers, under appropriate
non-disclosure agreements or duties.

     

    
      
         

      

      
        - 7
-

        
          

        

      

      
         

      

    

     

     

    ARTICLE
8 

    Indemnification

     

    8.1 Indemnification
Obligations.  Each Party (the “Indemnifying
Party”) will indemnify, defend and hold the other Party and its officers,
directors, employees and agents (the “Indemnified
Party”) harmless from any and all damages, costs and expenses arising
from any third party claims, threats, proceedings or suits (“Third Party
Claims”) to the extent such Third Party Claims arise from or relate to
the Indemnifying Party’s breach of any representation, warranty or covenant
hereunder.

     

    8.2 Indemnification
Procedures. Upon receiving notice of any Third Party Claim covered by
Section 8.1, the Indemnified Party will notify the Indemnifying Party promptly;
provided, however, that the right of indemnification hereunder will not be
adversely affected by a failure to give such notice, unless and only to the
extent that the Indemnifying Party is materially prejudiced
thereby.  The Indemnifying Party may assume control of the defense of
any such claim, if (a) the Indemnifying Party acknowledges its obligation to
indemnify the Indemnified Party for any losses resulting from such claim, and
(b) the claim does not seek to impose any liability on the Indemnified Party
other than money damages; provided, however, that the Indemnified Party may, at
its own cost and expense, participate through its attorneys or otherwise, in
such investigation, trial and defense of such claim and any appeal arising
therefrom.  The Indemnifying Party will not settle any such claim
without the Indemnified Party’s prior written consent (which consent will not be
unreasonably withheld or delayed), unless such settlement is solely for monetary
damages for which the Indemnified Party is fully indemnified under this
Agreement.  If the Indemnifying Party does not assume full control
over the defense of a claim pursuant to this Section 8.2, then the Indemnifying
Party may participate in such investigation, defense or trial, solely at its
cost and expense, and the Indemnified Party will have the right to defend or
settle such claim in such manner as the Indemnified Party deems appropriate,
solely at the cost and expense of the Indemnifying Party.

     

    8.3 Indemnification
of IGT Against Claims Arising from LVGI PVDs.  LVGI will
defend, indemnify and hold harmless IGT and its officers, directors, employees
and agents from any and all damages, costs, and expenses arising from any claim
relating to or arising from any uses or installations of the PVDs, regardless of
whether the PVDs was installed in an IGT Machine or a non-IGT
EGM.

     

    ARTICLE
9 

    Term
and Termination

     

    9.1 Term.  The
term of this Agreement will commence on the Effective Date and will continue in
force until terminated by mutual written consent of all parties to this
Agreement unless terminated earlier as set forth in this Article 9.

     

    
      
         

      

      
        - 8
-

        
          

        

      

      
         

      

    

    

     

    9.2 Termination for
Regulatory Compliance.  Each Party and its affiliates conduct
business in a highly regulated industry under privileged licenses issued by
gaming regulatory authorities both domestic and international.  Each
Party maintains a compliance program that has been established to protect and
preserve the name, reputation, integrity, and good will of such Party and its
affiliates and to monitor compliance with the requirements established by gaming
regulatory authorities in various jurisdictions around the
world.  Each Party agrees to cooperate with requests, inquiries, or
investigations of gaming regulatory authorities or law enforcement agencies in
connection with the performance of this Agreement.  Each Party agrees
to fully cooperate with the other Party in the completion of any necessary due
diligence background investigation.  If either Party receives a
written or oral opinion, recommendation or indication from a gaming regulatory
authority (including a representative thereof) or if either Party determines,
based upon facts and evidence that would reasonably be accepted by gaming
regulatory authorities or other licensed gaming entities, that continuation of
this Agreement would jeopardize the gaming licenses, permits or status of such
Party or any of its affiliates with any gaming regulatory authority or similar
law enforcement authority (“Regulatory
Trigger”), then: (a) such Party will give notice to the other Party of
the Regulatory Trigger, including details of the opinion, recommendation,
indication or asserted facts (to the extent known by the receiving Party), and
provided such Party is given a time period to address the basis for said
Regulatory Trigger, that Party will provide the other Party a reasonable time
frame within such Party's reasonably allotted time period to comment upon and
take action to remove such basis; and (b) if such Regulatory Trigger is not
cured to that Party's reasonable satisfaction, such that a reasonable risk
remains that jeopardizes the status of such Party with any gaming regulatory
authority, that Party may terminate such portion of this Agreement which would
cure the Regulatory Trigger (leaving the remainder of this Agreement in force
and effect), and if such cannot be effected, such Party may terminate this
entire Agreement immediately.

     

    9.3 Consequences of
Termination.  In the event that this Agreement or any portion
hereof is terminated pursuant to Article 9, any payments made or payment
obligations that exist pursuant to this Agreement at the time of such
termination shall be non-refundable or remain due and payable (as the case may
be); provided that such Regulatory Trigger does not mandate
otherwise.  In addition, the rights intended to be unaffected
according to the express provisions of this Agreement and Articles 4 and 7-10
will survive any such termination.  All other provisions of this
Agreement will be terminated.

     

    9.4 Dispute
Resolution.  Prior to any termination of this Agreement for
breach, or the commencement of any litigation by one Party (the first Party)
against the other arising out of an alleged breach of this Agreement, the matter
must first be referred to a senior executive of each Party by the first Party
sending to the other Party a written notice that sets out the particulars of the
dispute and the alleged breach of this Agreement.  The senior
executives of each Party will then arrange to meet at the next most convenient
time, but no later than 30 days from receipt of the dispute notice, and will use
commercially reasonable efforts to resolve the dispute in good
faith.  Should the senior executives fail to resolve the dispute
within seven days of the date of their meeting, then either Party may initiate
non-binding mediation to resolve such dispute, with costs to be shared equally
by the Parties.  If such mediation fails to resolve such dispute
within 10 days of the mediation, each Party is free to seek any remedies
available to it to resolve such dispute, including litigation.

     

    
      9.5 Termination for
Failure to Pay. Notwithstanding Section
9.4
above, any failure to pay monies due under this Agreement when due, including
any royalties due under Article 3, shall constitute a material breach, and the
non-breaching party may immediately terminate this Agreement for non-payment
when the defaulting party fails to cure such non-payment within 30 days of
written notice specifying such non-payment.

       

    

    
      
         

      

      
        - 9
-

        
          

        

      

      
         

      

    

    ARTICLE
10 

    Miscellaneous

     

    10.1 Notices.  Whenever
this Agreement provides that any notice, demand, request, consent, approval,
declaration, or other communication be given to or served upon any of the
parties by another, such notice, demand, request, consent, approval,
declaration, or other communication shall be in writing and shall be deemed to
have been validly served, given, or delivered (and “the date of such notice” or
words of similar effect will mean the date) five days after deposit in the
United States mails, certified mail, return receipt requested, with proper
postage prepaid, or upon confirmed receipt thereof (whether by noncertified
mail, telecopy, express delivery, or otherwise), whichever is earlier, and
addressed to the party to be notified as follows:

     

    
      	
              If
      to IGT, at:

            	
              IGT

              9295
      Prototype Drive

              Reno,
      Nevada  89521

               

              Attention:           Richard
      Pennington

              Fax:                      775.448.1488

            
	 
      	 
      
	
              with
      copies to:

            	
              Fulbright
      & Jaworski L.L.P.

              2200
      Ross Avenue

              Suite
      2800

              Dallas,
      Texas 75201

               

              Attention:          
      Glen J. Hettinger

              Fax:                      214.855.8200

            
	 
      	 
      
	
              If
      to LVGI, at:

            	
              LVGI

              4000
      West Ali Baba Lane

              Las
      Vegas, Nevada 89118

               

              Attn:    
      Jon Berkley

              Fax:      
      702.733.4907

              with copies to:
    Legal@LVGI.com

            
	 
      	 
      
	
              with
      copies to:

            	
              Weide & Miller, Ltd.

              7251 W. Lake
      Mead Blvd., Suite 530

              Las Vegas, NV 89128

              Attention:  R. Scott
      Weide

              Fax:            702-382-4805

            

    

    

     

    
      
         

      

      
        - 10
-

        
          

        

      

      
         

      

    

    or to
such other address as each party may designate for itself by like
notice.  No notice, demand, request, consent, approval, declaration,
or other communication shall be deemed to have been given or received unless and
until it sets forth all items of information required to be set forth therein
pursuant to the terms of this Agreement.

     

    10.2 Choice of
Law.  This Agreement will be governed by and construed in
accordance with the laws of the State of Nevada, without regard to any conflicts
of laws.  IN THE
EVENT OF A DISPUTE BETWEEN THE PARTIES RELATING TO THIS AGREEMENT, EACH OF THE PARTIES HERETO SUBMITS
TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEVADA COUNTY OF
WASHOE AND DOES HEREBY WAIVE ANY CLAIM THAT SUCH FORUM IS
INCONVENIENT.

     

    10.3 Integration;
Amendments; Waivers.  This Agreement constitutes the entire
agreement among the Parties with respect to the subject matter hereof and
supersedes all previous written, and all previous or contemporaneous oral,
negotiations, understandings, arrangements, understandings, or
agreements.  This Agreement may not be amended, modified, or
supplemented, or any provision of this Agreement waived, except by a writing
signed by all the parties to this Agreement.  No custom, practice,
course of dealing, or similar conduct will be deemed to amend, modify, or
supplement any term of this Agreement.  The failure of any Party to
enforce any right or remedy under this Agreement, or to enforce any such right
or remedy promptly, will not constitute a waiver thereof, nor give rise to any
estoppel against such Party, nor excuse any other Party from its obligations
under this Agreement.  Any waiver of any such right or remedy by any
Party must be in writing and signed by the Party against which such waiver is
sought to be enforced.  No waiver will be deemed a continuing waiver
or a waiver of any right beyond the specific right waived in such
waiver.

     

    10.4 Further
Assurances.  Each Party to this Agreement shall, without the
necessity of any further consideration, execute and deliver any and all such
further documents and take any and all such other actions as may be reasonably
necessary or appropriate to carry out the intent and purposes of this Agreement
and to consummate the transactions contemplated hereby.

     

    10.5 Force
Majeure.  No Party will be deemed in default if delayed or
prevented from performing its obligations under this Agreement, in whole or in
part, due to an act of God, fire, flood, explosion, civil disorder, strike,
lockout or other labor trouble, material shortages of utilities, equipment,
materials or facilities, delay in transportation, breakdown or accident, riot,
war, terrorist attack or other cause beyond its reasonable control (a “Force Majeure
Event”); provided that such party will resume full performance of this
Agreement as soon as practicable following the conclusion of the Force Majeure
Event; and provided further, that any adverse event resulting directly or
indirectly from conditions generally affecting any industry or industry sector
in which a Party operates or competes which does not have a materially
disproportionate impact on the Party relative to other industry participants
shall not be considered a Force Majeure Event under this Agreement.

     

    10.6 Headings.  The
headings in this Agreement are for convenience of reference only and are not
part of the substance of this Agreement.

     

    
      
         

      

      
        - 11
-

        
          

        

      

      
         

      

    

    

     

    10.7 Severability.  It
is not the intention of the Parties to this Agreement expressly to violate any
public policy, statutory or common law rules, regulations, or decisions of any
governmental or regulatory body.  If any provision of this Agreement
are interpreted or construed as being in violation of any such policy, rule,
regulation, or decision, the provision, section, sentence, word, clause, or
combination thereof causing such violation shall be rendered inoperative to the
minimum extent necessary in order to not be violative as set forth above (and in
lieu thereof the Parties jointly request the court to insert such provision,
sentence, word, clause, or combination thereof that is as favorable as possible
to the Party the rights of which were made inoperative as may be valid and
consistent with the intent of the parties under this Agreement) and the
remainder of this Agreement, as amended, shall remain binding upon the Parties
to this Agreement, unless the inoperative provision would cause enforcement of
the remainder of this Agreement to be inequitable under the
circumstances.

     

    10.8 Time.  Time
shall be of the essence with respect to this Agreement.

     

    10.9 Assignment.  Neither this Agreement nor any rights hereunder
may be transferred or assigned, nor any duties under this Agreement delegated,
by operation of law or otherwise, without the written consent of all parties to
this Agreement, except that IGT may assign this
Agreement and all rights hereunder and
delegate all of its obligations hereunder
to an affiliate of IGT and except
that LVGI may assign this Agreement and all
rights hereunder and delegate all of its
obligations hereunder to a person or entity
that is a non-Competitor of IGT that acquires all or substantially all of the
assets of LVGI in a single transaction or series or related transactions. For
the purposes of the foregoing, a Change of Control of LVGI will be
deemed an attempted assignment of this Agreement and the rights hereunder and a
delegation of all duties hereunder.  Any attempted assignment, transfer or
delegation that is that is not in conformance with this agreement is
void.

     

    “Change of
Control” means the occurrence of any of the following
events:

     

    
      	
              (a)  

            	
              LVGI
      becomes aware of the acquisition by any “person” or group (within the
      meaning of Section 13(d)(3) or Section 14(d)(2) of the
      Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any
      successor provision), including any group acting for the purpose of
      acquiring, holding or disposing of securities (within the meaning of Rule
      13d-5(b)(1) under the Exchange Act) in a single transaction or in a
      related series of transactions, by way of merger, consolidation or other
      business combination or purchase of “beneficial ownership” (within the
      meaning of Rule 13d-3 under the Exchange Act, or any successor provision)
      of 20% or more of the total voting power of the Voting Stock of
      LVGI;

            

    

     

    
      	
              (b)  

            	
              (i) there
      shall be consummated any share exchange, consolidation or merger of LVGI
      pursuant to which LVGI’s common stock would be converted into cash,
      securities or other property, other than pursuant to a share exchange,
      consolidation or merger of LVGI in which the holders of LVGI’s common
      stock immediately prior to the share exchange, consolidation or merger
      have, directly or indirectly, at least a majority of the total voting
      power of the voting stock of the continuing or surviving
      corporation

            

    

     

    
      
         

      

      
        - 12
-

        
          

        

      

      
         

      

    

    immediately
after the share exchange, consolidation or merger, or (ii) LVGI sells,
assigns, conveys, transfers, leases or otherwise disposes of all or
substantially all of the assets of LVGI and its Restricted Subsidiaries to
another Person and any “person” (as defined in clause (a) above) is or
becomes the “beneficial owner” (as defined in clause (a) above), directly
or indirectly, of 20% or more of the total voting power of the voting stock of
the transferee entity in such disposition of assets;

     

    
      	
              (c)  

            	
              during
      any period of two consecutive years, individuals who at the beginning of
      such period constituted the Board of Directors (together with any new
      directors whose election by such Board of Directors or whose nomination
      for election by the stockholders of LVGI was approved by a vote of a
      majority of the directors of LVGI then still in office who were either
      directors at the beginning of such period or whose
      election or nomination for election was previously so approved) cease for
      any reason to constitute a majority of the Board of Directors then in
      office;

            

    

     

    
      	
              (d)  

            	
              the
      adoption of a plan relating to the liquidation or dissolution of LVGI;
      or

            

    

     

    
      	
              (e)  

            	
              the
      occurrence of any other event that would constitute a change in control of
      LVGI within the meaning of Item 5.01 (or successor item) of Forms 8-K (or
      successor form) under the Exchange
Act.

            

    

     

    10.10 No
Partnership.  This Agreement forms a contractual arrangement
only and does not constitute the parties as a partnership.

     

    10.11 Business Day.
Should the terms of this Agreement require the performance of any
obligation or the fulfillment of any condition on a day other than a business
day, such obligation or fulfillment may be delayed until midnight on the next
day that is a business day for the party to perform.

     

    10.12 Counterparts.  This
Agreement may be executed in any number of counterparts, by means of facsimile
or portable document format (pdf), which shall individually and collectively
constitute one agreement.

     

    10.13 Publicity.  Neither
Party shall issue any press release or make any other public announcement with
respect to this Agreement or the transactions contemplated hereby without
obtaining the prior written approval of the other Party (which will not be
unreasonably withheld or delayed).  Where disclosure of information
regarding this Agreement or the transactions contemplated hereby may be required
by law or the regulations of any securities exchange, the Party complying with
applicable law or regulations shall provide sufficient time for the other Party
to comment on those portions of such disclosures that pertain to this Agreement
before such disclosures are made.

     

    EXECUTION

     

    Each
party has caused this Agreement to be executed by a duly authorized officer and
delivered as of the Effective Date, whereupon it enters into full force and
effect in accordance with its terms.

     

    [Signature
Page Follows]

     

    
      
         

      

      
        - 13
-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed and delivered as of the date
first above written.

     

    

     

     

    LVGI

     

     

    By:  /s/ Jon D.
Berkley                                        

    Name:  Jon D.
Berkley                                         

    Title:    President
&
CEO                                     

     

     

    IGT

     

     

    By:  /s/ Richard
Pennington                                

    Name:  Richard
Pennington                                 

    Title:    Exec. VP
– Corporate
Strategy               

     

    

    
      
         

      

      
        - 14
-

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