NOVATION
 
LOTO INC.
 
FOUNDERS’ AGREEMENT

This Novation to the Founders’ Agreement (this “Novation”) is made as of April
19, 2010, by and between Loto Inc. (the “Company”), Mhalka Capital Investments
Ltd. (“Mhalka”), A Few Brilliant Minds Inc. (the “Inventor”) and 2238646 Ontario
Inc. (the “Ontario Company” and together with the Company, Mhalka, and the
Inventor, the “Parties”).

WHEREAS, on May 13, 2009, the Company, the Inventor and Mhalka entered into a
Founders’ Agreement (the “Founders’ Agreement”), pursuant to which the Inventor
and Mhalka entered into certain agreements regarding the funding, development
and management of the Company;

WHEREAS, simultaneously herewith, Mhalka and Ontario Company are entering into
an agreement pursuant to which Mhalka shall sell to Ontario Company all of the
shares of the Company’s common stock owned by Mhalka; and

WHEREAS, the Parties have now determined that it is advisable that Ontario
Company replace Mhalka as a party to the Founders’ Agreement;

NOW, THEREFORE, the Parties hereby covenant and agree that:

1.           Ontario Company shall fully and completely assume all rights,
obligations and liabilities under the Founders’ Agreement, to the full extent
set forth therein.

2.           Mhalka is released from any and all obligations and liabilities
under the Founders’ Agreement, and shall have no further duty thereunder.

3.           Mhalka hereby transfers any and all rights under Founders’
Agreement to Ontario Company, including but not limited to continuing rights
regarding the governance of the Company and the appointment of its Board of
Directors.

4.           The Inventor hereby irrevocably waives any and all rights set forth
in Sections 4, 5 and 6 of the Founders’ Agreement concerning Mhalka’s sale to
Ontario Company, including any and all Rights of First Refusal, Tag-Along Rights
or similar rights.

5.           All other terms and conditions of the Founders’ Agreement shall be
and remain in full force and effect as therein written, including those
provisions waived hereby.

6.           This Novation may be executed in multiple counterparts, each of
which shall constitute an original, but all of which together shall constitute
but one instrument.

7.           In the event of any conflict or inconsistency between the
provisions of this Novation and the provisions of the Founders’ Agreement, the
provisions of this Novation shall govern and control to the extent of such
conflict or inconsistency.

 
 

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Novation- Loto Inc. -Founders’ Agreement

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IN WITNESS WHEREOF, the Parties have caused this Novation to be duly executed by
the authorized officer set forth below as of the date first above stated.

LOTO INC.

By:
/s/ Stephen Knight
   
Name:
Stephen Knight
   
Title:
Chief Financial Officer
         
MHALKA CAPITAL INVESTMENTS LTD.
         
By:
/s/ Perpetum Finance Inc.
   
Name:
Perpetum Finance Inc.
   
Title:
Director
                 
A FEW BRILLIANT MINDS INC.
         
By:
/s/ Gino Porco
   
Name:
Gino Porco
   
Title:
President
         
2238646 ONTARIO INC.
         
By:
/s/ Jason Randall Barrs
   
Name:
Jason Randall Barrs
   
Title:
   

 
 

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