Document:

ex1025.htm

    Exhibit
10.25

     

    ***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

    

    IGT-LVGI
BINDING TERM SHEET

    

    This
binding term sheet (“Term Sheet”) sets forth the agreement of the parties with
regard to a second proposed investment transaction (“Second Investment
Transaction”) between IGT (“IGT”) and Las Vegas Gaming,
Inc.  (“LVGI”).

    

    1.           Initial
Payment

    

    On the same business day as the
execution of this Term Sheet, IGT shall provide to LVGI an advance of $1.5
million U.S. dollars (“The Advance”).  If the parties do not reach a
signed Second Investment Agreement on or before August 15, 2009, IGT will have
the option of: (1) converting its $1.5 million advance into LVGI’s Series K
Convertible Preferred Stock offering (presently under way with [...***...]) at a
price per share of $3.25 if such offering is not completed, and at the offering
price if it is completed; or (2) at the completion of the [...***...] round and upon
IGT’s written request, have the $1.5 million dollars paid back to
IGT.  If IGT elects to convert into Series K Convertible Preferred
Stock, the advance shall be converted to such shares of stock, which are
equivalent to IGT’s advance when considering the closing price of that stock
offering.

    

    If LVGI
is unable to complete its Series K Convertible Preferred Stock offering, as
described above, prior to August 15th 2009
The Advance shall become immediately due and payable and LVGI does hereby grant
a security interest in all of its present and future assets as security for such
obligation.  LVGI will take all necessary actions to perfect all such
security interests as soon a practicable..

    

    2.           Second
Investment Agreement

    

    IGT and LVGI shall endeavor to enter
into a Second Investment Agreement, which provides for IGT’s investment of a
total of $3.0 million U.S. dollars (“Investment Funds”) in LVGI, inclusive of
the advance identified in Section 1.   In exchange for the
Investment Funds, LVGI will issue to IGT a single share of Series J
Convertible Preferred Stock, cash dividend mandatory at 5% payable on January 1
of each calendar year, convertible into Common Stock Series A at the price that
LVGI’s Series K Convertible Preferred Stock offering closes (presently under way
with [...***...]) at the offering price at which such transaction closes, and, if it
does not close at the per share price of $3.25.  The annual dividend
will be personally guaranteed by both Russ Roth, Chairman of the Board, and
Bruce Shepard, Chief Financial Officer, of LVGI.  LVGI shall solely
use the Investment Funds for the development of IGT sb software applications and
PlayerVision® software applications.

     

    

     

    ***Confidential
Treatment Requested

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

     

    3.           Addendums
to Prior Agreements

    

    IGT and LVGI previously entered into an
Investment Agreement, a License and Application Support Agreement (LASA), a
Retrofit Agreement and an Intellectual Property Access Agreement
(IPAA).  IGT and LVGI shall incorporate the following terms, in
principle, into those agreements by modification or addendum thereto, as
follows:

    

    a.           (LASA – 7.2) Article 7.2 of the
existing License and Application Support Agreement shall be amended to require
that LVGI use its best efforts to utilize IGT’s sb Media Manager as the default
infrastructure for delivery of LVGI’s PlayerVision® applications, where such is
applicable and technically feasible.

    

    b.           (LASA – 5.7) The License and
Application Support Agreement shall have a new Section 5.7,
which shall require LVGI to provide development support for IGTsb applications
requested by IGT (“IGT Requested Applications”).  LVGI’s required
support for IGT Requested Applications will be capped at [...***...] of LVGI’s then
available development resources.   All IGT Requested Applications
developed by LVGI shall remain the property of LVGI.  The development
time dedicated to IGT Requested Applications shall be billed at LVGI’s published
engineering development rate, less a [...***...] discount.

    

    c.           (LASA – 6.1) Article 6.1 of the
License and Application Support Agreement shall be amended so that the
distribution fee identified increases from [...***...] to [...***...].  Of the
[...***...] distribution fee, IGT agrees that a minimum of [...***...] and up to [...***...]
(i.e. no less than [...***...] and up to [...***...], of the [...***...]) shall become paid
as commissions or bonuses to its sales employees.

    

    d.           (LASA – 6.5) The existing License and
Application Support Agreement shall have a new Section 6.5
whereby LVGI grants to IGT a “most favored distributor” status such that IGT is
granted the most favorable terms available on all LVGI’s software distributor
rates for LVGI’s server-based applications.

    

    e.           (IPAA – 3.03) The existing
Intellectual Property Access Agreement shall have a new Section 3.03
whereby LVGI agrees that IGT shall have the right to have-initiated, coordinate,
finance and assist in the prosecution, defense and enforcement of all LVGI owned
Intellectual Property to which IGT has a right of first refusal.

    

    f.           (LASA – 7.4) The existing License and
Application Support Agreement shall include a new Section 7.4 whereby LVGI shall
be required to escrow the source code for applications that connect to IGT
systems.  IGT shall have the right to access the escrowed source code
only in the event LVGI becomes insolvent.  IGT’s rights to utilize such
software shall be (if released) unlimited.

    

    4.           Timing

    

    The
signing of the Second Investment Agreement and the addendums to the Prior
Agreements and the final funding is expected to occur by February 27,
2009.

     

    ***Confidential Treatment
Requested

    
 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

     

    5.           Global
Terms

    

    a.           Confidentiality
of any information regarding the proposed Second Investment Transaction
including the existence and provision of this Term Sheet, the proposed terms and
all transaction-related discussions shall be governed by the Mutual Confidential
Disclosure Agreement between the parties effective on May 20, 2008.

    

    b.           LVGI
and IGT shall each bear their own fees and expenses in connection with this Term
Sheet and the Second Investment Transaction.

    

    In witness whereof, each of the undersigned
has set his hand this 13th day of February 2009.

    
      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      IGT

                                    	
                                      LVGI

                                    
	 
      	 
      
	 	 
	
                                      Signed: 
      /s/  Richard
      Pennington                                          
      

                                    	
                                      Signed: 
      /s/ Jon D.
      Berkley                                                 
      

                                    
	 
      	 
      
	
                                      Printed
      name:  Richard
      Pennington                                      
      

                                    	
                                      Printed
      name:  Jon
      D.
      Berkley                                           
      

                                    
	 
      	 
      
	
                                      Title: 
      Executive Vice President -
      Corporate
      Strategy        

                                    	
                                      Title:  President and Chief
      Executive
      Officer                  
      

                                    
	 
      	 
      
	 
      	 
      
	 
      	
                                      LVGI and
      Individually:

                                    
	 
      	 
      
	 
      	
                                      Signed: /s/  Russell
      R. Roth                                              
      

                                    
	 
      	 
      
	 
      	
                                      Printed
      Name:  Russell R.
      Roth                                        
      

                                    
	 
      	 
      
	 
      	
                                      Title: 
      Chairman of the
      Board                                           
      

                                    
	 
      	 
      
	 
      	 
      
	 
      	
                                      LVGI and
      Individually:

                                    
	 
      	 
      
	 
      	
                                      Signed: 
      /s/ Bruce
      Shepard                                              
      

                                    
	 
      	 
      
	 
      	
                                      Printed
      Name:  Bruce
      Shepard                                        
      

                                    
	 
      	 
      
	 
      	
                                      Title: 
      Chief Financial
      Officer                                          
      

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

    

    

    

    
      
         

      

      
        3CC Filed by Filing Services Canada Inc. 403-717-3898

__________________________________________

                           A GROSSO GROUP MEMBER COMPANY

April 9, 2008

The following set forth an agreement (the “Agreement”) between JVM Management Ltd., hereinafter referred to as “JVM” and IMA Exploration Inc., hereinafter referred as the “Company”.  The Company hereby engages JVM as an advisor effective as of January 1, 2008.

JVM will assist the Company as an advisor in connection with potential transactions involving the Company.  For the purpose hereof, a “Transaction” shall mean an acquisition and/or similar transaction.

In connection with the engagement hereunder, JVM shall:

a)

review the business and operations of the Company and its historical and projected financial condition;

b)

identify potential parties to a Transaction and, if requested by the Company, contact such parties and/or their representatives and assist the Company in negotiations relating to a Transaction;

c)

evaluate and recommend financial and strategic alternatives with respect to a Transaction;

d)

advise the Company as to the timing, structure and pricing of a Transaction; and

e)

provide such other advisory services as are customary for similar transactions and as may be mutually agreed upon between the Company and JMV.

Fee.  JVM shall receive a non-refundable advisory fee of $10,000 plus Goods and Services Taxes per month commencing January 1, 2008.  JVM shall be reimbursed for its reasonable out of pocket expenses, including but not limited to travel and other expenses, incurred during the term of this Agreement.

JVM shall invoice the Company for fees on the first day of each month and expenses will be invoiced monthly with all invoices becoming due upon receipt.

JVM may also receive an additional discretionary bonus (the “Discretionary Bonus”) to be approved by the compensation committee and/or the board of directors of the Company on the successful conclusion of a Transaction.  This Discretionary Bonus shall be offset by 50% of the monthly fee earned i.e., $5,000 per month.

Duration and Term.  This Agreement shall commence on January 1, 2008 and may be terminated on the earlier of (i) five days written notice to the company, in the event that JVM becomes aware of (i) any change in business or operations of the Company which JVM reasonably believes may adversely affect JVM’s ability to render the services contemplated hereunder, (ii) any material misrepresentation by the Company with respect to the business operations, assets, condition (financial or otherwise), results of operations or prospects of the Company, or (iii) any material breach by the Company of its obligations under this Agreement.  Any unpaid fees as a result of termination of this Agreement shall become due and payable to JVM immediately.

The Company may terminate this agreement by giving JVM thirty days written notice.  In the event that Company terminates this agreement JVM will be entitled to receive the Discretionary Bonus for Transactions completed or entered into with the intention of completion within twelve moths of the date of termination for which JVM has provided advisory services.  Any Discretionary Bonus earned after termination shall be offset by 50% of the monthly fee earned during the calendar year in which JVM was served notice.

Indemnification.  The Company agrees to indemnity and hold harmless JVM and their respective officers, directors and employees (collectively the “Indemnified Parties”) from and against any losses, claims, damages and liabilities, joint or several, related to or arising I any manner out of any transaction, proposal or any other matter (collectively, the “Matters”) contemplated by the Agreement hereunder, and will promptly reimburse the Indemnified Parties for all expenses (including reasonable fees and expenses of legal counsel) as incurred in connection with the investigation of, preparation for, or defence of any pending or threatened claim related to or arising in any manner out of any Matter contemplated by this Agreement, or any action or proceeding arising the from (the “Proceedings”) whether or not such Indemnified Party is a formal party to such Proceedings.  The Company further agrees that it will not, without the prior written consent of JVM, settle compromise or consent to the entry of any judgment in any pending or threatened Proceedings in respect of which indemnification may be sought hereunder, unless such settlement, compromise or consent includes an unconditional release of JVM and each other Indemnified Party hereunder from all liability arising out of such Proceedings.

Relationship of the Parties.  It is understood that JVM is acting as an advisor only, and shall nave no authority to enter into any agreements, contracts or commitments on the Company’s behalf, or to negotiate the terms of financing, or to hold any funds or securities in connection with financing.

Assignment.  The Company may not assign this Agreement without the prior written consent of JVM which consent shall not unreasonably be withheld.

Limitation of Liability.  The liability of JVM pursuant to this Agreement shall be limited to the aggregate fees received by JVM hereunder, which shall not include any liability.

Notice.  Notice to any party to this Agreement shall be in writing and may be delivered by mail or facsimile sent to the following addresses:

IMA Exploration Inc.

709-837 West Hastings Street

Vancouver, B.C., V6C 3N6

Facsimile:  (604) 687-1858

JVM Management Ltd.

200 – 551 Howe Street

Vancouver, B.C., V6C 2C2

Facsimile:  (604) 683-4499

Governing Law.  This Agreement is and shall be deemed accepted in British Columbia and interpreted and enforced in accordance with the laws of British Columbia.

JVM Management Ltd.

IMA Exploration Inc.

Per:

Per:

“Jerry A. Minni”, President

“Arthur Lang”, CFO

Terminal City Club Tower, Suite709-837 West Hastings Street, Vancouver, BC, Canada V6C 3N6

Tel: 604.687.1828   ·   Fax:  604.687.1858 · Toll Free: 1.800.901.0058

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