|   | Re: | Commitment      Amount in connection with USD$1,000,000 Convertible Working Capital Line      of Credit |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | 1. | Initial      Disbursement; Equity Fee. In connection with      the transactions contemplated by the Term Sheet, the Company and the      Investor have agreed that the Investor will disburse the Commitment Amount      on or prior to July 20, 2009 (“Initial Disbursement      Date”); provided the Company agrees to pay the Equity Fee as set      forth herein.  As a material inducement for the Investor to      enter into this Letter Agreement, the Company shall, within thirty (30)      days from the date set forth above, issue Two Million (2,000,000) shares      (the “Trafalgar      Shares”)of the Company’s preferred stock (the “Preferred      Stock”) with a par value of $1.00.  The Company      acknowledges and agrees that the Trafalgar Shares shall entitle holders to      the following rights: |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Ranking.  The      Trafalgar Shares shall, with respect to rights upon liquidation, winding      up and dissolution, rank senior to all classes of the Company’s common      stock (the “Common Stock”)      and to each other series of Preferred Stock or class of capital stock of      the Company. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b. | Conversion      Rights. All or any part of the Trafalgar Shares shall be      convertible, at any time and from time to time, at the option of the      holder thereof into shares (the “Conversion      Shares”) of the Company’s Common Stock at the price per share (the      “Conversion      Price”) equal to the lower of (a) $0.05 (the “Fixed Conversion      Price”), and (b) a fifteen percent (15%) discount to the lowest      daily closing Volume Weighted Average Price of the Common Stock as      reported by Bloomberg, LP during the five (5) trading days after the      Conversion Date (as defined below).  No fraction of shares or      scrip representing fractions of shares will be issued on conversion, but      the number of shares issuable shall be rounded to the nearest whole      share.  To convert the Trafalgar Shares, the holder of such      Trafalgar Shares shall deliver written notice thereof, substantially in      the form of Exhibit B to this      Letter Agreement, with appropriate insertions (the “Conversion      Notice”), to the Company at its address as set forth      above.  The date upon which the conversion shall be effective      (the “Conversion      Date”) shall be deemed to be the date set forth in the Conversion      Notice. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Voting      Rights.  The holders of Trafalgar Shares shall have the      right to receive notice of any meeting of holders of Common Stock or      Preferred Stock and to vote upon any matter submitted to a vote of the      holders of Common Stock or holders of Preferred Stock.  The      holders of the Trafalgar Shares shall vote on each matter submitted to      them with the holders of all other classes and series of capital stock of      the Company entitled to vote on such matter, taken together as a single      class.  In any case in which the holders of the Trafalgar Shares      shall be entitled to vote pursuant to this Letter Agreement or pursuant to      Colorado law, each holder of Trafalgar Shares entitled to vote with      respect to such matter shall be entitled to vote, with respect to each      Trafalgar Share, the number of votes that equals the number of shares of      Common Stock into which such Trafalgar Share is then convertible if      converted at the Fixed ConversionPrice. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | Dividends.  Holders      of Trafalgar Shares will be entitled to receive dividends in an amount      equal to the amount of dividends such holders would have received if each      Trafalgar Share had been converted into the Company’s Common Stock at the      Fixed Conversion Price. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Representations      and Warranties of the Company.  In order to      induce the Investor to enter into this Letter Agreement, the Company      represents and warrants to the Investor as of the Effective Date (defined      below) that: |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Organization,      Authority, Good      Standing.  The Company is a corporation, duly      incorporated and in good standing under the laws of the State of      Delaware.  The execution, delivery and performance of this      Letter Agreement have been duly authorized by all necessary action on the      part of the Company; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | No      Conflict.  The execution, delivery and performance by the      Company of this Letter Agreement and the consummation of the transactions      contemplated hereby do not and will not (i) violate any provision of      the organizational documents of the Company or any order, judgment or      decree of any court or other government authority binding on the Company,      (ii) conflict with, result in a breach of or constitute (with due      notice or lapse of time or both) a default under any contractual      obligation of the Company; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | c. | Capitalization.  The      authorized capital stock of the Company consists solely of 150,000,000      shares of its Common Stock, par value $0.001 per share, of which      22,242,143 shares are issued      and outstanding, and 5,000,000 shares of its preferred stock (the “Preferred      Stock”), of which no shares are issued and      outstanding.  The Company has duly reserved for issuance a      sufficient number of shares of Common Stock for issuance upon conversion      of the Trafalgar Shares at the Fixed Conversion Price.  Upon      conversion of the Trafalgar Shares, the Conversion Shares shall have been      duly authorized, validly issued, fully paid and nonassessable and will be      free of preemptive rights; and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | No Broker or Finder      Fees.  No broker’s or finder’s fee or commission or any      other fees will be payable by the Company with respect to this Letter      Agreement, and the Company hereby indemnifies the Investor against, and      agrees that it will hold the Investor harmless from, any claim, demand or      liability for any such broker’s or finder’s fees alleged to have been      incurred in connection herewith or therewith and any expenses (including      reasonable fees, expenses and disbursements of counsel) arising in      connection with any such claim, demand or  liability. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Representations      and Warranties of the Investor.  In order to      induce the Company to enter into this Agreement, the Investor represents      and warrants to the Company as of the Effective Date (defined below)      that: |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Good Standing,      Authorization.  The Investor is a corporation in good      standing under the laws of the State of Colorado.  The      execution, delivery and performance of this Letter Agreement has been duly      authorized by all necessary action on the part of the      Investor; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | No      Conflict.  The execution, delivery and performance by the      Investor of this Letter Agreement and the consummation of the transactions      contemplated by this Letter Agreement do not and will not (i) violate      any provision of the organizational documents of the Investor or any      order, judgment or decree of any court or other government authority      binding on the Investor, or (ii) conflict with, result in a breach of      or constitute (with due notice or lapse of time or both) a default under      any agreement by which the Investor is bound;  and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | No Broker or Finder      Fees.  No broker’s or finder’s fee or commission or any      other fees will be payable by the Investor with respect to this Letter      Agreement, and the Investor hereby indemnifies the Company against, and      agrees that it will hold the Company harmless from, any claim, demand or      liability for any such broker’s or finder’s fees alleged to have been      incurred in connection herewith or therewith and any expenses (including      reasonable fees, expenses and disbursements of counsel) arising in      connection with any such claim, demand or  liability. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 4. | Binding      Term Sheet.  Notwithstanding any      non-binding reference in the Term Sheet, the Company and the Investor      acknowledge and agree that, except as expressly set forth herein and      except with respect to the condition on page 4 of the Term Sheet relating      to the amendment of all original loan notes, within [ten 10] days of the      Effective Date, the Parties shall execute definitive agreements reflecting      the terms set forth in the Term Sheet (the “Definitive      Agreements”).  The Definitive      Agreements shall set forth the Parties’ respective rights and be in a form      appropriate and customary for the transactions described in the Term Sheet      and in this Letter Agreement between sophisticated parties with customary      representations, warranties and  indemnifications. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Release.  In      consideration of the mutual promises and covenants made herein, and other      good and valuable consideration, the receipt and sufficiency of which is      hereby acknowledged, and intending to be legally bound hereby, the Company      hereby agrees to fully, finally and forever mutually release and forever      discharge and covenant not to sue the Investor, and/or and its parent      companies, subsidiaries, affiliates, divisions, and their respective      attorneys, officers, directors, agents, shareholders, members, employees,      predecessors, successors, assigns, personal representatives, partners,      heirs and executors from any and all debts, fees, attorneys’ fees, liens,      costs, expenses, damages, sums of money, accounts, bonds, bills,      covenants, promises, judgments, charges, demands, claims, causes of      action, suits, liabilities, expenses, obligations or contracts of any kind      whatsoever, whether in law or in equity, whether asserted or unasserted,      whether known or unknown, fixed or contingent, under statute or otherwise,      from the beginning of time through the Effective Date, including,      without  limiting the generality of the foregoing, any and all claims      relating to or arising out of any financing transactions, credit      facilities, debentures, security agreements, and other agreements entered      into by  the Company with the Investor and any and all claims that      the Company  does not know or suspect to exist, whether through      ignorance, oversight, error, negligence, or otherwise, and which, if      known, would materially affect their decision to enter into this Letter      Agreement or the related DefinitiveAgreements. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | Venue.  Venue for any suit      arising out of or in any way related to this Letter Agreement shall lie in      the state or federal courts situated in Miami-Dade County,      Florida. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | Counterparts      and Facsimile Signatures.  This Letter Agreement      may be executed in counterparts, each of which shall be considered an      original, but all of which together shall constitute the same instrument.      A confirmed facsimile transmission of an executed signature page shall be      effective as an original. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8. | Waiver.   The waiver by      either Party of any instance of the other Party’s non-compliance with any      obligation and/or responsibility herein shall not be deemed a waiver of      the waiving Party’s remedies for such non-compliance in the future or for      other obligations or responsibilities under this Letter      Agreement. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | Attorneys’      Fees.  In      the event of a dispute between the Parties arising out of or in connection      with this Letter Agreement, the prevailing Party shall be entitled to      recover all reasonable attorneys’ fees, costs and expenses (including      appellate fees, costs and expenses) from the non-prevailing      Party. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 10.    | Independent      Advice from Counsel.   Each of the      Parties has received independent legal advice from legal counsel of its      choice with respect to the advisability of entering into this Letter      Agreement and its terms or has knowingly and voluntarily waived its right      to do so.  The terms of this Letter Agreement are the result of      mutual negotiations between the Parties, and the provisions of this Letter      Agreement shall be interpreted and construed in accordance with their fair      meanings, and not strictly for or against either Party, regardless of      which Party may have drafted this Letter Agreement or any specific      provision. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | 11.    | Assignment      and Modification.  This Letter Agreement      is not assignable.  Any attempted assignment will be null and      void and of no effect.  This Letter Agreement cannot be modified      except by an instrument in writing signed by both of the      Parties.                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | 12.    | WAIVER      OF JURY TRIAL.  EACH OF THE PARTIES      HERETO KNOWINGLY, IRREVOCABLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY      RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION,      PROCEEDING OR COUNTERCLAIM BASED ON THIS LETTER AGREEMENT, OR ARISING OUT      OF, UNDER OR IN CONNECTION WITH THIS LETTER AGREEMENT OR ANY DOCUMENT      EXECUTED IN CONNECTION HEREWITH OR RELATED HERETO, OR ANY COURSE OF      CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR      ACTIONS OF ANY PARTY HERETO.  THIS PROVISION IS A MATERIAL      INDUCEMENT FOR PARTIES TO ENTER INTO THE SUBJECT      TRANSACTION.                                         |

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|   | TRAFALGAR      CAPITAL SPECIALIZEDINVESTMENT FUND, FIS |                        |
|--------|--------------------------------------------------------|-----------------------------|
|   |                                                   |                        |   |
|   | By:                                                    | Trafalgar      Capital Sarl |   |
|   | Its:                                         | General      Partner        |   |
|   |                                                   |                        |   |
|   |                                                   |                        |   |
|   | By:                                                    |                        |   |
|   | Name:                                                  |                        |   |
|   | Title:                                                 |                        |   |
|   |                                                   |                        |   |
|   |                                                   |                        |   |
|   | NEW      MEDIA LOTTERY SERVICES, INC.                  |                        |
|   |                                                   |                        |   |
|   | By:                                                    |                        |   |
|   | Name:                                                  |                        |   |
|   | Title:                                                 |                        |   |

----

----

| TO: |   |
|-----|--------|

| Conversion      Date:                                                                                 |   |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                  |   |   |
| Applicable      Conversion Price:                                                                     |   |   |
|                                                                                                  |   |   |
| Signature:                                                                                            |   |   |
|                                                                                                  |   |   |
| Name:                                                                                                 |   |   |
|                                                                                                  |   |   |
| Address:                                                                                              |   |   |
|                                                                                                  |   |   |
| Amount      to be converted:                                                                          |   |   |
|                                                                                                  |   |   |
| Amount      of Trafalgar Shares unconverted:                                                          |   |   |
|                                                                                                  |   |   |
| Conversion      Price per share:                                                                      |   |   |
|                                                                                                  |   |   |
| Number      of shares of Common Stock to be issued:                                                   |   |   |
|                                                                                                  |   |   |
| Please      issue the shares of Common Stock in the following name and to the      following address: |   |   |
|                                                                                                  |   |   |
| Issue      to:                                                                                        |   |   |
|                                                                                                  |   |   |
| Authorized      Signature:                                                                            |   |   |
|                                                                                                  |   |   |
| Name:                                                                                                 |   |   |
|                                                                                                  |   |   |
| Title:                                                                                                |   |   |
|                                                                                                  |   |   |
| Phone      Number:                                                                                    |   |   |
|                                                                                                  |   |   |
| Broker      DTC Participant Code:                                                                     |   |   |
|                                                                                                  |   |   |
| Account      Number:                                                                                  |   |   |

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