Document:

exhibit.htm

    
 

    
 

    Exhibit
10.1

    IGT/WMS
PATENT CROSS-LICENSE AGREEMENT

    

               This
Agreement, effective February 14, 2008, (“Effective Date”), is entered into by
WMS Gaming Inc., a corporation of Delaware, having its principal place of
business at 800 South Northpoint Blvd., Waukegan,
IL  60085  and International Game Technology, a corporation
of Nevada, having its principal place of business at 9295 Prototype Drive, Reno,
NV  89511   Each of  IGT and WMS is sometimes
referred to herein as a “Party” and together they are sometimes referred to
herein as the “Parties”.

    

    
      	
              1.  

            	
              DEFINITIONS

            

    

    

    
      	
              1.1.  

            	
              “Affiliate”
      means, as to a particular Party, any corporation or other business entity
      that directly or indirectly Controls, is Controlled by, or is under common
      Control with a Party.  “Control” means direct or indirect
      ownership of or other beneficial interest in fifty percent (50%) or more
      of the voting stock, other ownership interest, or income of a corporation
      or other business entity.

            

    

    

    
      	
              1.2.  

            	
              “Agreement
      Field of Use” (“Agreement FOU”) means
[*].

            

    

    

    
      	
              1.3.  

            	
              “Alcorn
      Patents” means the following US Patents and their foreign counterparts
      insofar as they claim authentication technology:  [*].

            

    

    

    
      	
                
      1.4.  

            	
               “Application”
      means functionality (including but not limited to hardware, software,
      firmware) related to Gambling.

            

    

    

    
      	
              1.5.  

            	
              “Business
      Day” means any weekday, Monday through Friday, when banking institutions
      are open for business.

            

    

    

    
      	
              1.6.  

            	
              “Competitor”
      means an entity selling or buying goods or services related to Gambling
      and licensed in a major Gambling
jurisdiction.

            

    

    

    
      	
              1.7.  

            	
              “Computing
      Field of Use” (“Computing FOU”) means the following Applications:
      [*].

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    

    
      
        
           

        

        
          1

          
          

        

        
           

        

      

    

    

    

    
      	
              1.8.  

            	
              “Dollars”
      or “$” means United States dollars.

            

    

    

    
      	
              1.9.  

            	
              [*].

            

    

    

    

    
      	
              1.10.  

            	
              “[*]
      Applications” means any one or more of the following Applications:
      [*];  (m) personal computers, televisions, personal digital
      assistants (PDA’s), cellular devices, other mobile telephones, and like
      devices [*]; (n) supporting systems to the extent that they support
      devices identified in clause (m);  and (o) any and all subject
      matter claimed in the following U.S. Patents
  [*].

            

    

    

    
      	
              1.11.  

            	
              “Gambling”
      means an activity in a jurisdiction where it has not been prohibited
      whereby something of value is placed at risk upon an uncertain outcome
      predominately determined by chance.

            

    

    

    
      	
              1.12.  

            	
              “Gambling
      Machine” means an 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 a player to input the wager amount and otherwise initiate
      and direct game play, (b) displays the amount wagered, the outcome of the
      wager, and the credit amount available to the player, (c) provides 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
      operator.  The definition of a Gambling Machine is limited to
      the device in close proximity to the player and does not include
      supporting software and servers remote from that device.  For
      avoidance of doubt, and by way of example, personal computers,
      televisions, personal digital assistants (PDA’s), and cellular and other
      mobile telephones that are not adapted to be primarily used for Gambling
      are not Gambling Machines.

            

    

    

    
      	
              1.13.  

            	
              “IGT”
      means International Game Technology a corporation of Nevada, having its
      principal place of business at 9295 Prototype Drive, Reno NV and its
      Affiliates.

            

    

    

    
      	
              1.14.  

            	
              “Licensed
      IGT Patents” means any claims of any and all Patents owned or controlled
      by IGT to the extent such claims are within the Agreement FOU.
      [*]

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    

    
      
        
           

        

        
          2

          
          

        

        
           

          
            

          

        

      

    

    

    [*]

    

    
      	
              1.15.  

            	
              “Licensed
      IGT Products” shall mean any IGT product or method practiced by such IGT
      product that, in the absence of this Agreement, would infringe one or more
      unexpired claims of any Licensed WMS
Patent.

            

    

    

    
      	
              1.16.  

            	
              “Licensed
      WMS Patents” means any claims of any and all Patents owned or controlled
      by WMS to the extent such claims are within the Agreement
      FOU.  [*]

            

    

    

    
      	
              1.17.  

            	
              “Licensed
      WMS Products” shall mean any WMS product or method practiced by such WMS
      product that, in the absence of this Agreement, would infringe one or more
      unexpired claims of any Licensed IGT
Patent.

            

    

    

    
      	
              1.18.  

            	
              “Licensed
      Product” means the WMS Licensed Products and/or the IGT Licensed Products,
      as applicable.

            

    

    

    
      	
              1.19.  

            	
              “Major
      Supplier” means a manufacturer or supplier with net revenues attributable
      to electronic Gambling systems and/or devices during the most recently
      completed fiscal or calendar year in excess of
  [*].

            

    

    

    
      	
              1.20.  

            	
              “Patent”
      means an existing or future issued patent or patent
      application.

            

    

    

    
      	
              1.21.  

            	
              “Permitted
      Applications” means only Applications which provide the following
      infrastructure functionality as used in an SBGS:
  [*]

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    

    
      
        
           

        

        
          3

          
          

        

        
           

          
            

          

        

      

    

    

    [*].

    

    
      	
              1.22.  

            	
              “[*]”
      means [*] which is an independent [*] for [*] and which provides necessary
      infrastructure, directly or indirectly, for all other [*] that act as [*]
      for all other [*] or equivalent [*].  For avoidance of doubt,
      the following shall not be considered
[*].

            

    

    

    
      	
              1.23.  

            	
              “Place”,
      “Placed”, “Placement” (or any form of the word “Place”) means the
      provision directly or indirectly of a product to a customer by sale,
      lease, participation or recurring revenue, or otherwise, where such
      products are bona- fide branded under a WMS or IGT brand or the brands of
      their respective Affiliates.

            

    

    

    
      	
              1.24.  

            	
              “Royalty-Bearing
      Product” means a Licensed WMS Product [*]. Notwithstanding the foregoing
      and except as provided

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    

    
      
        
           

        

        
          4

          
          

        

        
           

          
            

          

        

      

    

    

    for in
Section 3.3, any Royalty-Bearing Product for which a royalty has not been paid
shall not be considered a Licensed WMS Product, and the use of such product for
which a royalty has not been paid, and the methods practiced by such products,
shall be considered an unlicensed use.

    

    
      	
              1.25.  

            	
              “Server
      Based Gambling Field of Use” (“SBG FOU”) means Permitted
      Applications.

            

    

    

    
      	
              1.26.  

            	
              “Server
      Based Gambling System” (“SBGS”) means
[*].

            

    

    

    
      	
              1.27.  

            	
              “[*]
      Device” means [*].

            

    

    

    
      	
              1.28.  

            	
              “WMS”
      means WMS Gaming Inc., a corporation of Delaware, having its principal
      place of business at 800 South Northpoint Boulevard, Waukegan, Illinois
      and its Affiliates.

            

    

    

    
      	
              2.  

            	
              LICENSE
      GRANTS AND RELEASE

            

    

    

    
      	
              2.1.  

            	
              GRANT OF LICENSE TO
      WMS.  Subject to the terms and conditions of this
      Agreement, IGT hereby grants to WMS a non-exclusive, worldwide,
      royalty-bearing license, within the Agreement FOU, under the Licensed IGT
      Patents to make, have made, use, import, Place, offer to Place, and have
      Placed Licensed WMS Products.  To be clear, the license granted
      under this Section does not extend to any proprietary IGT features outside
      of the Agreement FOU.  Notwithstanding anything in this
      Agreement to the contrary, this Agreement does not provide either Party
      with a license to the [*].  For avoidance of doubt, neither this
      Agreement nor negotiations that led to this Agreement provide an implied
      license to connected products, connected systems, services, and methods,
      other than the license expressly granted
above.

            

    

    

    
      	
              2.2.  

            	
              GRANT OF LICENSE TO
      IGT.  Subject to the terms and conditions of this
      Agreement, WMS hereby grants to IGT a non-exclusive, worldwide license,
      within the Agreement FOU, under the Licensed WMS Patents to make, have
      made, use, import, Place, offer to Place, and have
      Placed  Licensed IGT Products. To be clear, the license granted
      under this Section does not extend to any proprietary WMS features outside
      of the Agreement FOU. Notwithstanding anything in this Agreement to the
      contrary, this Agreement does not provide either Party with a license to
      the [*]

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    

    
      
        
           

        

        
          5

          
          

        

        
           

          
            

          

        

      

    

    

    [*]. 
For avoidance of doubt, neither this Agreement nor negotiations that led to this
Agreement provide an implied license to connected products, connected systems,
services, and methods, other than the license expressly granted
above.

    

    
      	
              2.3.  

            	
              Restriction on
      [*].  Notwithstanding the foregoing, the license rights
      granted pursuant to Section 2.1 to offer to Place, Place, and have Placed
      products that take the form of [*].

            

    

    

    
      	
              2.4.  

            	
              Other
      Restriction.  [*].  

            

    

    

    
      	
              2.5.  

            	
              Customer
      Acknowledgement.  Parties agree that prior to deploying
      licensed systems that connect to third party [*] Devices, they shall
      notify the customer that a license may be required for applicable [*]
      Devices and that any use of such system with unlicensed [*] Devices is an
      unlicensed use.

            

    

    

    
      	
              2.6.  

            	
              Patent Families
      Cross-License.  Separate from the licenses set forth
      above in Sections 2.1 and 2.2 of this Agreement, the Parties hereby agree
      to the following cross-license:

            

    

    

    
      	
              2.6.1.  

            	
              IGT
      hereby grants to WMS a perpetual worldwide, royalty-free, non-exclusive
      license to make, have made, use, import, Place, offer to Place, and have
      Placed products and methods under U.S. Patent No. [*] and its related
      Patent Family (the “Licensed IGT [*] Patent
  Family”).

            

    

    

    
      	
              2.6.2.  

            	
              WMS
      hereby grants to IGT a perpetual worldwide, royalty-free, non-exclusive
      license to make, have made, use, import, Place, offer to Place, and have
      Placed products and methods under U.S. Patent Nos. [*] entitled “[*]” and
      its related Patent Family (the “Licensed WMS [*] Patent
      Family”).  In the event that U.S. Patent Publication No. [*]
      entitled “[*]” is allowed, then WMS will notify IGT and IGT shall have 30
      days from such notice to elect to swap the license granted under this
      paragraph for a license to U.S. Patent Publication No. [*]
      entitled

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    
      
        
           

        

        
          6

          
          

        

        
           

          
            

          

        

      

    

    

    “[*]” and
its related Patent Family (the “Licensed WMS [*] Patent Family”) and if such
election is made then the license to the Licensed WMS [*] Patent Family shall be
void prospectively.

    

    
      	
              2.6.3.  

            	
              The
      respective [*] Patent Families and Licensed WMS [*] Patent Family include
      all Patents that are counterparts of, or are directly or indirectly
      related by a claim of priority to, at least one of the identified
      applicable Patents, including, without limitation, all parents,
      provisionals, continuations, continuations-in-part, divisionals, reissues,
      reexaminations, and foreign counterparts of such Patents, whether related
      to such identified Patents directly or through one or more intervening
      U.S. or foreign Patents.

            

    

    

    
      	
              2.7.  

            	
              Mutual
      Release.  Each Party releases, for itself, its
      Affiliates, predecessors, successors and assigns, and their respective
      officers, owners, directors, shareholders, attorneys, insurers, agents and
      employees (collectively the “Releasing Parties”), the other Party and any
      and all of its Affiliates, predecessors, successors and assigns,
      suppliers, distributors, resellers, customers, end-users and their
      respective officers, directors, agents, servants, owners, employees,
      attorneys, licensors and insurers (collectively the “Released Parties”),
      from any and all rights, claims, demands, causes of action, obligations,
      damages, penalties, fees, costs (including reasonable attorneys’ fees and
      costs), expenses, and liabilities of any nature whatsoever which the
      Releasing Parties have, had or may have had against the Released Parties,
      for infringement of any Patents licensed hereunder by any and all products
      Placed by WMS and IGT (excluding all Affiliates other than Affiliates as
      of the Effective Date) prior to the Effective Date of this
      Agreement.

            

    

    

    
      	
              2.8.  

            	
              Rights of
      Affiliates.  Except as set forth in Section 2.7, for
      purposes of all rights granted herein, the respective rights shall accrue
      to all present and future Affiliates of the Parties, until such time as
      the Affiliate ceases to be an
Affiliate.

            

    

    

    
      	
              2.9.  

            	
              Sublicensing.  Except
      as provided for in Section 2.8, neither Party shall have the right to
      sublicense the license rights granted to it herein except to the extent
      necessary to have Licensed Products made for the Party by third party
      contractors, to have Licensed Products Placed through third parties, to
      permit third parties to perform support services in connection with
      Licensed Products, and to permit customers to use and dispose of Licensed
      Products.

            

    

    

    
      	
              3.  

            	
              ROYALTIES

            

    

    

    
      	
              3.1.  

            	
              [*]  As
      of the Effective Date, [*].

            

    

    

    
      	
              3.2.  

            	
              Royalties.  For
      each Royalty Bearing Product initially Placed by WMS,
  WMS

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    
      
        
           

        

        
          7

          
          

        

        
           

          
            

          

        

      

    

    

    shall pay
a [*] royalty to IGT of [*].  If WMS does not pay the royalty [*] as
specified in this Agreement, then [*] shall not be subject to any grant of
license by IGT to WMS as set forth in Section 2.1 and [*] shall be treated as a
Failure to Pay Royalties according to Section 3.4.  [*]

    

    
      	
              3.3.  

            	
              [*]

            

    

    

    
      	
              3.4.  

            	
              Effect of Failure to
      Pay Royalty.  Except as set forth in Section 3.3, and
      notwithstanding anything to the contrary elsewhere herein, if WMS does not
      pay the royalty for a Royalty Bearing Product, such Royalty Bearing
      Product shall be deemed to be unlicensed under the license grant in
      Section 2.1 and therefore shall not be entitled to any of the rights,
      benefits, or protections provided to Licensed WMS Products under this
      Agreement including but not limited to WMS’ right to use this Agreement to
      establish a reasonable royalty.  [*]However, to be clear, IGT
      shall be permitted to bring any action for infringement and seek any
      available remedy [*]

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    
      
        
           

        

        
          8

          
          

        

        
           

          
            

          

        

      

    

    

    [*] against
WMS for WMS' unlicensed making, having made, using, selling, offering to sell,
importing, leasing, Placing, offering to Place and having Placed any Gaming
Machine or other device.

    

    
      	
              3.5.  

            	
              [*]

            

    

    

    
      	
              3.6.  

            	
               [*]

               

            

    

    
      	
              4.  

            	
              ROYALTY
      REPORTS AND RECORD KEEPING

            

    

    

    
      	
              4.1.  

            	
              Reports.  Within
      forty-five (45) days following the end of each calendar quarter when
      royalties are due, WMS shall provide to IGT a written report detailing all
      Placements of Royalty-Bearing Products for the prior calendar quarter for
      which  a royalty is being paid, and WMS shall pay to IGT all
      royalty amounts due to IGT for such quarter.  If WMS pays no
      royalties during a calendar quarter, WMS shall furnish a written report to
      IGT so stating.

            

    

    

    
      	
              4.2.  

            	
              Trials.  The
      Parties acknowledge that it is customary in the gaming industry for [*]
      Devices to be Placed on a trial basis, meaning that the customer has, for
      a limited time period, the right to return the machines and unwind the
      transaction (“Trial Period”).  For any [*] Devices Placed on
      such trial basis and for which WMS has not received any remuneration for
      such Placement, the royalty thereon shall be deemed to accrue upon
      Placement of such [*] Device.

            

    

    

    
      	
              4.3.  

            	
              Record
      Keeping.  WMS agrees to keep true and accurate records
      for the purpose of making the reports described in Section 4.1 of the
      Agreement.  WMS shall keep at WMS’ principal office for the term
      of five (5) years from the date created, full and accurate books of
      account and copies of all documents and other materials relating to this
      Agreement, including, but not limited to all Placement agreements and all
      sales and revenue records of [*]
      Devices.  Notwithstanding the foregoing, any documents and other
      materials that are the subject of an audit pursuant to Section 4.4 shall
      be retained until such audit is
completed.

            

    

    

    
      	
              4.4.  

            	
              Audit.  IGT
      shall have the right, not exercisable more than once per year, to nominate
      an independent certified public accountant (“auditor”) acceptable to
      and

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    
      
        
           

        

        
          9

          
          

        

        
           

          
            

          

        

      

    

    

    approved
by WMS, which approval shall not be unreasonably withheld, who shall have access
to the records of WMS during regular business hours for the purpose of verifying
compliance with the reporting obligations set forth in Section 4.1 as well as
such other books and records as are reasonably required to verify WMS’
compliance with all of  its financial obligations under this
Agreement.  IGT shall provide WMS with no less than sixty (60) days
written notice of its intent to audit WMS’ books and records as provided under
this Agreement, and WMS shall be ready for such audit.  Such notice
shall indicate the period to be audited, the identity of the auditor and the
proposed scope for the audit.  The auditor shall only disclose to IGT
information necessary to determine WMS’ compliance with its reporting and
financial obligations under this Agreement. If any audit or examination of WMS’
books and records reveals that WMS has failed to perform its financial
obligations, any underpaid amount will bear interest until paid at a rate per
annum equal to [*] percent ([*]). If the underpaid amount exceeds the total
amount reported under the reporting obligations set forth in Section 4.1 by [*]
or more in any given year under the Agreement, WMS will reimburse IGT for all
reasonable audit costs, audit fees, and audit expenses incurred in conducting
such audit or examination with respect to such year audited, in addition to
paying IGT such past due royalties and any accrued interest.  IGT
shall reimburse WMS for any overpaid royalties revealed by the
audit.

    

    
      	
              4.5.  

            	
              Period for
      Examination.  WMS’ books and records pertaining to any
      particular royalty report may be examined as aforesaid only within [*]
      years after the date rendered and WMS shall have no obligation to permit
      IGT to so examine such books and records relating to any particular
      royalty report more than once for any one report, unless in connection
      with a civil action filed by IGT against
WMS.

            

    

    

    
      	
              5.  

            	
              [*]

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    

    
      
        
           

        

        
          10

          
          

        

        
           

          
            

          

        

      

    

    

    [*]

    

    
      	
              6.  

            	
              INTEROPERABILITY
      AND SUPPORT SERVICES

            

    

    

    
      	
              6.1.  

            	
              The
      Parties agree to work in good faith toward an Open-Architecture with
      respect to their [*].  “Open-Architecture” shall mean that the Party
      providing the [*] will provide the other Party, upon the other Party’s
      request, with access to application interfaces (API), specifications, and
      protocols, as may be necessary for the requesting Party to interface with
      the Party’s [*].  Where commercially reasonable, these systems will
      use industry standard protocols, and interfaces. Except as provided for in
      this Agreement or any other agreement the Parties may execute, this
      requirement shall expressly exclude access to intellectual property. 
      Technical expertise shall be limited to a reasonable explanation of
      material provided.

            

    

    

    
      	
              6.2.  

            	
              In
      some cases, the Party providing the [*] may be required to make
      modifications to its [*].  To the extent that such accommodations can
      be made without placing a material undue burden on the resources of the
      Party, the Parties agree to make such reasonable
      accommodations.

            

    

    
 

    
      	
              7.  

            	
              TERM
      AND TERMINATION

            

    

    

    
      	
              7.1.  

            	
              Term and
      Renewal.  Unless earlier terminated in accordance with
      the provisions hereof, this Agreement shall commence on the Effective Date
      and continue for a term of ten (10) years after the Effective
      Date.  Unless earlier terminated in accordance with the
      provisions hereof, the Parties agree to negotiate in good faith for an
      extension(s) of this Agreement.

            

    

    

    
      	
              7.2.  

            	
              Termination for
      Material Breach.  Either Party may terminate this
      Agreement upon sixty (60) days written notice if the other Party (i) does
      not cure any material breach of this Agreement within ninety (90) days of
      such breaching Party’s receipt of written notice from the other Party
      describing such breach and requesting cure.  For a material
      breach that cannot be, or after
reasonable

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    
      
        
           

        

        
          11

          
          

        

        
           

          
            

          

        

      

    

    

    diligence
has not been, cured within ninety (90) days, additional periods of sixty (60)
days may be granted in which to cure such material breach, so long as the
breaching Party is diligently pursuing resolution or cure of the material
breach.

    

    
      	
              7.3.  

            	
              Bankruptcy. The
      license granted herein shall be deemed a license of “intellectual
      property” for purposes of the United States Code, Title 11, Section
      365(n).  In the event of the bankruptcy of a party and a
      subsequent rejection or disclaimer of this Agreement by a bankruptcy
      trustee or by a party as a debtor-in-possession, or in the event of a
      similar action under applicable law, the other party may elect to retain
      its license right, subject to and in accordance with the provisions of the
      United States Code, Title 11, section 365(n) or other applicable
      law.

            

    

    

    
      	
              7.4.  

            	
              Effect of
      Termination. In the event that a Party terminates this Agreement in
      accordance with any terms permitting such termination, the other Party may
      continue to manufacture and Place Licensed Products in the same manner
      licensed under this Agreement for one (1) year after the Effective Date of
      such termination.  Such termination shall have no effect
      whatsoever upon: (a) any Licensed Product Placed prior to such termination
      or Placed during the above-mentioned one (1) year period, even if title to
      the Licensed Product has not passed to a third party; (b) the mutual
      release granted and set forth in Section 2.7 of this Agreement; and (c)
      the patent licenses set forth in Sections 2.1, 2.2 and 2.6 of this
      Agreement with respect to any Licensed Products for which any applicable
      royalty was paid.  WMS shall continue to pay the royalties as
      provided in Section 3.2 for any such post-termination Placements for which
      WMS elects to claim a license under Section
2.1.

            

    

    

    
      	
              8.  

            	
              REPRESENTATIONS
      AND WARRANTIES

            

    

    

    
      	
              8.1.  

            	
              Mutual Representations
      and Warranties.  Each Party represents, warrants and
      covenants to the other Party throughout the term of this Agreement as
      follows:

            

    

    

    
      	
              8.1.1.  

            	
              This
      Agreement constitutes the legal, valid and binding obligation of such
      Party, enforceable against it in accordance with its terms, except as such
      enforceability may be limited by bankruptcy laws and other similar laws
      affecting creditors’ rights generally and by general principles of
      equity.

            

    

    

    
      	
              8.1.2.  

            	
              The
      execution, delivery and performance of this Agreement by such Party does
      not and will not (a) conflict with, or constitute a breach or default
      under, its charter documents or any agreement, contract, commitment or
      instrument to which it is a party, or (b) require the consent, approval or
      authorization of, or notice, declaration, filing or registration with, any
      third party or any governmental or regulatory authority other than the
      licenses and certifications required by applicable Gaming
      Authorities.

            

    

    

    
      	
              8.1.3.  

            	
              Such
      Party has the full and unencumbered right, power and authority to enter
      into this Agreement, to grant, assign and transfer the rights
      and

            

    

    

    

    
      
        
           

        

        
          12

          
          

        

        
           

          
            

          

        

      

    

    

    licenses
granted under this Agreement, and to otherwise carry out its obligations
hereunder.

    

    
      	
              8.1.4.  

            	
              There
      is no action or proceeding pending or, in so far as such Party knows or
      should know, threatened against such Party or any of its Affiliates before
      any court, administrative agency or other tribunal that could impact upon
      such Party’s right, power and authority to enter into this Agreement, to
      grant the rights and licenses granted hereunder, or to otherwise carry out
      its obligations hereunder.

            

    

    

    
      	
              8.1.5.  

            	
              It
      will perform its obligations hereunder in compliance with applicable laws,
      rules and regulations.

            

    

    

    
      	
              8.2.  

            	
              [*]
      Representation.  [*]

            

    

    

    
      	
              8.3.  

            	
              Disclaimer of
      Additional Warranties.  EXCEPT FOR THE EXPRESS WARRANTIES
      CONTAINED IN THIS AGREEMENT AND ITS APPENDICES, NEITHER PARTY MAKES ANY
      WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED
      WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
      PURPOSE.  ALL SUCH OTHER WARRANTIES ARE HEREBY
      DISCLAIMED.

            

    

    

    
      	
              9.  

            	
              REGULATORY
      COMPLIANCE

            

    

    

    
      	
              9.1.  

            	
              The
      Parties will cooperate in good faith and use their best efforts to comply
      with the requirements of all applicable gaming laws and gaming authorities
      having jurisdiction over the Parties and the exploitation of their
      Products (each a “Gaming Authority”).  Upon request by either Party
      (“Requesting Party”),  the other Party shall promptly provide all
      information reasonably requested with respect to its financial condition,
      litigation, indictments, criminal proceedings, and the like in which the
      other Party or its officers, directors, and controlling shareholders are
      or may have been involved, if any, in order for the Vice President of
      Compliance or Compliance Committee to determine that no such information
      would disclose any fact which would jeopardize, in any manner, any gaming
      licenses or permits held by the Requesting Party and/or its Affiliates
      with any Gaming Authority.

            

    

    

    
      	
              9.2.  

            	
              In
      the event that the other Party shall fail to so provide all such requested
      information, or if such information with respect to the other Party as
      provided by the other Party or as obtained as a result of the Vice
      President of Compliance or Compliance Committee’s own investigation,
      discloses facts concerning the other Party which could, in the sole
      opinion of the Vice President of Compliance or Compliance Committee,
      jeopardize the obtaining of such gaming licenses
  or

            

    

    

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    
      
        
           

        

        
          13

          
          

        

        
           

          
            

          

        

      

    

    

    permits
or the maintaining of such gaming licenses or permits with any Gaming Authority,
or if at any time a Gaming Authority disapproves of the relationship with the
other Party under this Agreement or  prohibits or restricts the taking of
any action, including the payment of monies, which prohibition or restriction
frustrates the purpose of this Agreement, the Parties will in good faith attempt
to modify or amend this Agreement, or take other appropriate action, to obtain
the approval of such Gaming Authority to permit payment by WMS of royalties
payable hereunder.  If WMS is prevented from paying IGT any royalties by a
Gaming Authority, WMS shall retain its license for Royalty-Bearing Products that
WMS elects to claim a license under Section 2.1 so long as WMS deposits such
royalties into an escrow account established with a mutually agreeable escrow
agent for the benefit of IGT until payment is authorized by such Gaming
Authority or otherwise distributed pursuant to an order of a court of competent
jurisdiction.  The funds deposited into the escrow account shall be
invested as directed by IGT, and be at IGT’s risk.

    

    
      	
              10.  

            	
              MISCELLANEOUS

            

    

    

    
      	
              10.1.  

            	
              Dispute
      Resolution.

            

    

    

    
      	
              10.1.1.  

            	
              The
      Parties agree that this Section 10.1 shall be used to resolve any disputes
      between the Parties under this Agreement arising on or after the Effective
      Date.

            

    

    

    
      	
              10.1.2.  

            	
              Cooling Off
      Period.

            

    

    

    (a) A
Party shall not institute, file or aid in filing (including being named as a
plaintiff or being voluntarily joined in an action brought by a licensee of such
Party or by any other person) of any claim, demand or cause of action against
the other Party without first bringing its contention to the attention of the
other Party by means of a Notification Letter and engaging in a 90-day
negotiation period with such other Party.  In the event such claim,
demand, or cause of action pertains to patent infringement, such Notification
Letter shall include (i) an identification of the claims of the patent or other
intellectual property rights allegedly infringed and (ii) an identification of
the accused device or method.

    

    (b)
During said 90-day negotiation period, the Parties shall negotiate in good faith
toward a resolution of the dispute.  All negotiations, statements, and
materials of the Parties during such 90-day negotiation period shall be treated
as Confidential Information under Section 10.6.  In addition, all such
statements and negotiations shall be deemed offers to compromise a claim under
Federal Rules of Evidence Section 408 and shall be inadmissible in arbitration,
litigation, or any other future proceedings between the Parties.

    

    
      
        
           

        

        
          14

          
          

        

        
           

          
            

          

        

      

    

    

    

    (c) If
the Parties are unable to amicably resolve the dispute within the 90-day
negotiation period, then the Party that sent the Notification Letter (“Objecting
Party”) may initiate an Arbitration regarding the dispute per Section 10.1.3
below, but in no event shall the Objecting Party pursue an Arbitration prior to
the expiration of the 90-day negotiation period. The 90-day negotiation period
shall not be detrimental to the Objecting Party in terms of laches, estoppel,
waiver, damage limitations, statute of limitations, or any other defenses based
on the passage of time.  Rather, the Arbitration shall be treated as
if it were filed when the Notification Letter was sent to the other
Party.  The other Party (i.e., the Party to whom the Notification
Letter was sent), however, may not initiate an Arbitration until a minimum of 30
days after the end of the 90-day negotiation period.

    

    
      	
              10.1.3.  

            	
              Arbitration.

            

    

    

    (a) AAA.  The
commercial rules of the American Arbitration Association (“AAA”) shall apply to
the arbitration, except to the extent the provisions of this Agreement provide
otherwise.

    

    (b) Panel.  The
arbitration shall be heard and determined by a panel of three arbitrators, who
are not required to be members of the AAA but all of which must be approved by
the Parties.  In the event the Parties cannot agree on the three
arbitrators, then each Party shall designate one arbitrator and those two
arbitrators shall designate a third arbitrator.  In the event such
claim, demand, or cause of action pertains to patent infringement, such
arbitrators shall be patent attorneys registered to practice before the U.S.
Patent and Trademark Office and experienced in evaluating patent infringement
and validity.

    

    (c) Schedule.  The
Parties and the arbitrators shall use their best efforts to complete any such
arbitration within one year after the appointment of the arbitrators, unless a
Party can demonstrate to the arbitrators that the complexity of the issues or
other reasons warrant the extension of the timetable.  In such case,
the arbitrators may extend such timetable as reasonably required.

    

    (d) Discovery.  The
Parties shall be entitled to discovery of all document and information
reasonably necessary for a full understanding of the allegations and any
defenses raised by the other Party.  The Parties may use all methods
of discovery available under the United States Federal Rules of Civil Procedure,
including depositions, requests for admission and requests for production of
documents.  The time periods applicable to such discovery methods
shall be set by the panel so as to permit compliance with the above
schedule.

    

    (e) Binding
Decisions.  The arbitrators shall issue a decision with
written

    

    
      
        
           

        

        
          15

          
          

        

        
           

          
            

          

        

      

    

    

    findings
and the bases therefore, and such decision shall be final, binding and
enforceable in any court of competent jurisdiction.  Nothing in this
Agreement shall prohibit either Party from seeking injunctive relief or specific
performance in a court of law subsequent to the decision of the
arbitrators.

    

    (f) Fees and
Expenses.  The Parties shall share equally fees and expenses of
the AAA and the arbitrators, including any administrative fees.  Each
Party shall bear the cost of its own attorneys’ fees and expert
fees.

    

    (g) Arbitration
Venue.  The proceeding before the panel shall be held in Las
Vegas, Nevada, or as otherwise agreed upon by the Parties.

    

    
      	
              10.2.  

            	
              Independent
      Contractors.  This Agreement does not constitute and
      shall not be construed as constituting a partnership or joint venture
      between the Parties, and each Party shall have no right to obligate or
      bind the other Party in any manner whatsoever, and nothing herein
      contained shall give or is intended to give any rights of any kind to any
      third parties.

            

    

    

    
      	
              10.3.  

            	
              Force
      Majeure.  Neither Party shall lose any rights hereunder,
      be held responsible for any delays, or be liable to the other Party for
      damages or losses on account of failure of performance by the defaulting
      Party if the failure is occasioned by war, terrorism, civil unrest, fire,
      Act of God, earthquake, flood, embargo, governmental acts or orders or
      restrictions, failure of suppliers, or any other reason where failure to
      perform is beyond the reasonable control and not caused by the negligence,
      intentional conduct or misconduct of the nonperforming Party and the
      nonperforming Party has exerted all reasonable efforts to avoid or remedy
      any force majeure.

            

    

    

    
      	
              10.4.  

            	
              Notice.  Any
      notice, consent, approval, request, waiver or statement to be given, made
      or provided for under this Agreement shall be in writing and deemed to
      have been duly given when personally delivered, or mailed by prepaid
      certified or express mail service of the United States postal service, by
      Federal Express or similar overnight delivery service, with acknowledgment
      of receipt, fees prepaid, or if sent by facsimile or e-mail, with an
      original sent within twenty four (24) hours by either first class United
      States mail, postage prepaid, or by an overnight delivery service with
      next day delivery to the Parties as identified in this Agreement, with
      copies directed to:

            

    

    

    
      	
              TO
      WMS:

            	
              TO
      IGT:

            
	 
      	 
      
	
              Orrin
      J. Edidin

            	
              Richard
      Pennington

            
	
              WMS
      Gaming Inc.

            	
              IGT

            
	
              800
      South Northpoint Blvd.

            	
              9295
      Prototype Drive

            
	
              Waukegan,
      IL  60085

            	
              Reno,
      Nevada  89521

            

    

    

    

    
      
        
           

        

        
          16

          
          

        

        
           

          
            

          

        

      

    

    

    

    
      	
              With
      copies to:

            	
              With
      copies to:

            
	 
      	 
      
	
              WMS
      Gaming Inc.

            	
              IGT

            
	
              Attn:  General
      Counsel

            	
              Attn:  General
      Counsel

               

            
	
              800
      South Northpoint Blvd

            	
              9295
      Prototype Drive

            
	
              Waukegan,
      IL  60085

            	
              Reno,
      Nevada 89521

            
	 
      	 
      
	
              WMS
      Gaming Inc.

            	 
      
	
              Attn:  Vice
      President, Patents

            	 
      
	
              3401
      N. California Ave.

            	 
      
	
              Chicago,
      IL  60618

            	 
      

    

    

    
      	
              10.5.  

            	
              Transfer.  This
      Agreement shall be mandatorily binding upon and shall inure to the benefit
      of the Parties hereto and their respective heirs, legal representatives,
      and successors and assigns.  The Parties shall have the right to
      assign their rights and obligations under this Agreement to any Affiliate
      or any Affiliate or successor to all or substantially all of its gaming
      business or assets without the prior written consent of the other Party,
      provided such successor assumes in writing the obligations of the Party
      under this Agreement.

            

    

    

    
      	
              10.6.  

            	
              Confidential
      Information.

            

    

    

    
      	
              10.6.1.  

            	
              Confidential
      Information.  “Confidential Information” means any
      information disclosed by one party (“Disclosing Party”) to the other party
      (“Receiving Party”) in connection with this Agreement that is reasonably
      understood to be confidential based on the nature of the
      information.  In any event, the terms and conditions of this
      Agreement shall be deemed the Confidential Information of the other Party
      with respect to the non-disclosure obligations of this Section
      10.6.

            

    

    

    
      	
              10.6.2.  

            	
              Exceptions.  Confidential
      Information does not include any information that (a) is, or becomes,
      publicly known through no wrongful act on the Receiving Party’s part; (b)
      is already known to the Receiving Party, or becomes known to the Receiving
      Party without restriction on disclosure; (c) is independently developed by
      the Receiving Party without use of or access to the Confidential
      Information of the Disclosing Party, which independent development the
      Receiving Party will have the burden of proving; or (d) is furnished to
      the Receiving Party by a third party without an obligation of
      confidentiality.

            

    

    

    
      	
              10.6.3.  

            	
              Non-Use.  The
      Receiving Party shall maintain the Confidential Information of the
      Disclosing Party in confidence and shall not, without the prior written
      consent of the other party, use the Disclosing Party’s Confidential
      Information for its own benefit or the benefit of any third party except
      for purposes expressly provided for in this Agreement or as
    

            

    

    

    
      
        
           

        

        
          17

          
          

        

        
           

          
            

          

        

      

    

    

    necessary
to enforce such Party’s rights under this Agreement.

    

    
      	
              10.6.4.  

            	
              Non-Disclosure.  The
      Receiving Party shall not disclose, confirm or otherwise discuss any
      Confidential Information of the Disclosing Party to or with any third
      party, except as may be necessary to the Receiving Party’s Affiliates,
      legal counsel, accountants, tax advisors, insurance carriers and bankers
      under written confidentiality agreements prohibiting further use or
      disclosure of such Confidential Information.  The Receiving
      Party further agrees to use the same degree of care, but no less than a
      reasonable degree of care, with respect to the confidentiality of the
      Disclosing Party’s Confidential Information as it would with its own
      confidential information.

            

    

    

    
      	
              10.6.5.  

            	
              Legally Required
      Disclosures.  The Receiving Party may disclose
      Confidential Information as required by a court or under operation of law
      or order provided that the Receiving Party notifies the Disclosing Party
      of such requirement prior to disclosure, that the Receiving Party
      discloses only that information required, and that the Receiving Party
      allows the Disclosing Party the opportunity to object to such court or
      other legal body requiring such
disclosure.

            

    

    

    
      	
              10.6.6.  

            	
              Agreement Terms and
      Conditions.  Notwithstanding Section 10.6.4, the Parties
      agree that each Party may file summaries or copies of this Agreement as it
      in good faith deems appropriate with regulatory agencies having
      jurisdiction over such Party, including, without limitation, the U.S.
      Securities and Exchange Commission, provided that such filing Party takes
      reasonable steps to ensure confidential treatment of such filings to the
      extent legally permitted.

            

    

    

    
      	
              10.6.7.  

            	
              Existing
      NDA.  The Mutual Nondisclosure Agreement entered into by
      the Parties on [*] shall remain in
effect.

            

    

    

    
      	
              10.7.  

            	
              Governing
      Law.  This Agreement shall be deemed to have been entered
      into in the State of Nevada, and shall be interpreted and construed in
      accordance with the laws of the State of Nevada without regard to conflict
      of laws principles, except that questions affecting the construction and
      effect of any patent shall be determined by the law of the country in
      which the patent shall have been
granted.

            

    

    
      	
              10.8.  

            	
              Severability.  If
      any provision of this Agreement is or becomes or is deemed invalid,
      illegal or unenforceable under the laws or regulations of any applicable
      jurisdiction, either such provision will be deemed amended to conform to
      such laws or regulations without materially altering the intention of the
      Parties or it shall be stricken and the remainder of this Agreement shall
      remain in full force and effect.

            

    

     

    *
Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

    

    
      
        
           

        

        
          18

          
          

        

        
           

          
            

          

        

      

    

    

    

    
      	
              10.9.  

            	
              Waiver of
      Default.  The failure of either Party to insist upon the
      strict performance of any of the provisions of this Agreement, or the
      failure of either Party to exercise any right, option or remedy hereby
      reserved, shall not be construed as a waiver for the future of any such
      provision, right, option or remedy, or as a waiver of any subsequent
      breach thereof.

            

    

    

    
      	
              10.10.  

            	
              Survival.  The
      expiration or termination of this Agreement shall not affect those
      provisions that by the nature thereof are intended to survive any such
      expiration or termination.

            

    

    

    
      	
              10.11.  

            	
              Counterparts.  This
      Agreement may be executed in two or more counterparts, each of which shall
      be deemed an original and all of which, taken together, shall constitute
      one and the same instrument.  Any such counterpart may be
      executed by facsimile signature, and when so executed and delivered, shall
      be deemed an original and such counterpart(s) together shall constitute
      only one original.

            

    

    

    
      	
              10.12.  

            	
              Signature.  This
      Agreement shall not be deemed effective, final, or binding upon the
      Parties until signed by each of them.  After signed by both
      Parties, this Agreement shall be binding upon and shall inure to the
      benefit of both Parties and their respective successors and
      assigns.

            

    

    

    
      	
              10.13.  

            	
              Entire Agreement and
      Amendment.  This Agreement constitutes the full
      understanding between the Parties, and no statements, or agreements, oral
      or written, made prior to or at the signing hereof, shall vary or modify
      the written terms hereof.  No amendment, modification, or
      release from any provision hereof shall be effective unless in writing and
      signed by duly authorized representatives of both Parties specifically
      stating it to be an amendment, modification, or release to this
      Agreement.  Except for each Party’s Affiliates, there are no
      third party beneficiaries of this
Agreement.

            

    

    

    

    IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
duly authorized officers or representatives.

    

    
      	
              WMS:

            	
              IGT:

            
	
              By:_______________________

            	
              By:______________________

            
	
              Name:_____________________

            	
              Name:____________________

            
	
              Title:______________________

            	
              Title:_____________________

            
	
              Date:______________________

            	
              Date:_____________________

            

    

    

     

    
      
        
        

      

      
        19Exhibit 10(o)(v)

                         DIRECTORS' ANNUAL RETAINER PLAN

1. This Plan shall govern the annual  retainer  payable for services as a member
of the Board of Directors of Albany  International  Corp. ("the Company") during
the period from the Annual Meeting of  Stockholders of the Company in 2006 until
it is amended or  terminated  by the Board of  Directors;  provided,  that in no
event  shall any shares be paid under  this plan after May 10,  2015.  This Plan
shall  affect  only the  portion of the annual  retainer to be paid in shares of
Class A Common Stock of the Company.

2. A portion of the annual retainer payable for service as a member of the Board
of  Directors  each year shall be paid in shares of Class A Common  Stock of the
Company.  The  number of shares to be paid  each  year  shall be  determined  by
dividing  $50,000 by the per share closing price of a share of such stock on the
day of the  Annual  Meeting at which the  election  of  directors  for such year
occurs  ("the  Valuation  Price"),  as such  Valuation  Price  is  shown  on the
composite  index for such day in the Wall Street  Journal,  rounded  down to the
nearest  whole  number.  Any  director  may  elect to have any  withholding  tax
obligation  arising  from the  distribution  of  shares  under  this  Plan to be
satisfied by directing the Company to withhold shares with a value equal to such
obligation  from the shares that would otherwise be issuable.  In addition,  any
director who has met or exceeded any share ownership  guidelines or requirements
adopted by the Board of Directors  and then in effect,  may elect to receive all
or any  portion of the shares that would  otherwise  be  distributed  under this
paragraph in cash.  Any  election  pursuant to this  paragraph  shall be made no
later than 10 business days prior to the date on which shares would otherwise be
delivered.

3. The  shares of Class A Common  Stock  payable  to a  director  as part of the
annual  retainer  shall be delivered to the director as promptly as  practicable
after each Annual Meeting.  Upon delivery to the director,  such shares shall be
fully paid, non-assessable and not subject to forfeiture.

4. The  portion  of the  annual  retainer  not paid in  shares  -- that is,  the
aggregate  dollar amount of the annual retainer for the year, as determined from
time to time by the Board of Directors,  less (i) the Valuation Price times (ii)
the number of whole  shares  payable to a director for the year -- shall be paid
to the  directors  in cash at such time or times during the year as the Board of
Directors shall from time to time determine.

5. This Plan may be terminated or amended by the Board of Directors at any time,
subject  to  any  applicable   rules  or  regulations   requiring   approval  by
stockholders of the Company.

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