Unless i'm reading it wrong. I think SGI has the option to renew, not EGMI. Thus at most we are locked out for 10 years in US, Canada, Mexico and Italy. We get paid 500k annually for that option after the 3rd year. I think that's why EGMI in previous conference calls say they only attribute a minimum of the license fee for SGI. The EGC management got shafted and they knew it. We don't have access to the agreement, but this was the most detailed description in their 5/15/07 filed 10Q.
NOTE 8 SUBSEQUENT EVENT
(Continued
SGI may extend its exclusive rights with respect to “Public Lotteries” in the U.S., Canada, Mexico and Italy during the term of the License Agreement on a yearly basis beyond the first three years of the License Agreement. To effect such an extension of exclusivity, SGI must pay to EGC in cash, , the sum of at least $500,000 in license fees for the year preceding the extension (including any topping off payment by SGI if license fees paid to EGC for such year otherwise would be less than $500,000).
