WMS INDUSTRIES INC /DE/
2ND AMENDMENT TO LICENSE & DEVELOPEMENT AGREEMENT
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<TYPE>EX-10.3
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<FILENAME>c82839exv10w3.htm
<DESCRIPTION>2ND AMENDMENT TO LICENSE & DEVELOPEMENT AGREEMENT
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<P align="right"><FONT size="2"><B>Exhibit&nbsp;10.3</B></FONT>

<P align="center"><FONT size="2"><B>SECOND AMENDMENT TO LICENSE &#038; DEVELOPMENT AGREEMENT</B>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment, dated July&nbsp;15, 2003, (&#147;Second Amendment&#148;) is the Second
Amendment to that certain License and Development Agreement dated April&nbsp;24,
2002 (&#147;Agreement&#148;) between SIERRA DESIGN GROUP, a Nevada corporation with
offices at 300 Sierra Manor Drive, Reno, NV 89511 (&#147;LICENSOR&#148;) and WMS Gaming
Inc., a Delaware corporations with offices at 800 S. Northpoint Boulevard,
Waukegan, IL 60085 (&#147;LICENSEE&#148;), and as amended on June&nbsp;12, 2003 (&#147;First
Amendment&#148;).
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the parties desire to amend the Agreement;
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THEREFORE, in consideration of the terms and conditions and the covenants
set forth in this Amendment, the sufficiency and receipt of which is hereby
acknowledged, LICENSOR and LICENSEE agree as follows:
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    <TD width="1%" align="left" nowrap><FONT size="2">1.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">The following is inserted in its entirety to the end of Section&nbsp;4d within
this section of the Agreement, as amended: &#147;LICENSOR and LICENSEE agree
that the development and QA process will require LICENSOR&#146;s access to
LICENSEE&#146;s confidential <I>Bluebird</I>&#153; cabinet design (&#147;Bluebird&#148;). As such,
during the development and QA process, LICENSOR agrees that LICENSOR shall
not make any modifications or corrections to Bluebird hardware without (i)
prior notification to an authorized employee of LICENSEE, and (ii)&nbsp;an
authorized employee of LICENSEE present who shall be available within four
business hours from SDG&#146;s request thereof. LICENSEE shall also seal such
confidential areas of Bluebird in a manner which shall prevent LICENSOR
from learning of the confidential nature of Bluebird. LICENSEE shall
provide access to Bluebird only to those LICENSOR employees who are
reasonably required to have such access in connection with this Agreement
and only to the extent necessary to perform the development and QA process
hereunder. Notwithstanding the foregoing, LICENSOR further agrees that,
in the event LICENSOR learns of the confidential nature of Bluebird,
LICENSOR agrees to maintain the confidentiality of such information on the
terms set forth in Section&nbsp;11 herein.&#148;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD width="1%" align="left" nowrap><FONT size="2">2.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Except as specifically modified or amended by the Second Amendment, all
of the terms and conditions of the Agreement and First Amendment are
unmodified and shall remain in full force and effect. In the event a
discrepancy arises between the terms and conditions of the Agreement,
First Amendment and the Second Amendment, this Second Amendment shall
prevail.</FONT></TD>
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<P align="left"><FONT size="2">IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the day
and year first above written.
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<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="2%">&nbsp;</TD>
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    <TD width="35%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
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    <TD colspan="3" valign="top" align="left"><FONT size="2">SIERRA DESIGN GROUP</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">WMS GAMING INC.</FONT></TD>
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<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
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<TR valign="bottom">
    <TD valign="top"><FONT size="2">By:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
&nbsp;/s/ Robert A. Luciano, Jr.
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">By:
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;/s/ Brian R. Gamache</FONT></TD>
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    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
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    <TD align="left" valign="top"><FONT size="2">
<HR size="1" noshade>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><HR size="1" noshade></TD>
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<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><FONT size="2">Title: President</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">Title: President and CEO</FONT></TD>
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<P align="center"><FONT size="2">1</FONT>
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