CBS SECURITY AGREEMENT
This CBS Security Agreement (the “Security Agreement”) is entered into on June 22, 2010 (the “Effective Date”)
by and between Computerized Bookmaking Systems, Inc. (the “Grantor”), a Nevada corporation, and Alpine
Advisors LLC (the “Lender” or the “Secured Party”), a Nevada limited liability company (individually, Grantor
and Secured Party may be referred to as a “party” or collectively as the “parties”).
WHEREAS, Grantor is a wholly owned subsidiary of American Wagering, Inc. (“Borrower”), which
entered into a Loan Agreement dated as of June 22, 2010 (as amended, supplemented, restated or otherwise
modified and in effect from time to time, the “ Loan Agreement ”; capitalized terms used herein without
definition are used as defined or used in the Loan Agreement), with Secured Party, pursuant to which, among
other things, Secured Party has agreed, in its sole discretion, to make loans to Borrower upon the terms and
subject to the conditions specified in the Loan Agreement;
WHEREAS, in order to secure all Obligations, Grantor has agreed to execute and deliver to Secured
Party a security agreement in substantially the form hereof;
NOW, THEREFORE, in consideration of the promises and for other good and valuable consideration
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Grant of Security Interest .
a) To secure the payment or performance, as the case may be, in full of the Obligations, whether at stated
maturity, by acceleration or otherwise, Grantor hereby grants to Secured Party a first priority and exclusive Lien
upon the collateral described in paragraph c) below (the “Collateral”). As used herein, the term Lien” shall mean
any security interest, mortgage, lien, encumbrance or adverse claim, and any financing statement or similar
document filed in respect of same.