Document:

Unassociated Document

    EXECUTIVE
      COPY

     

    WINWIN
      GAMING, INC.

     

    SECURED
      CONVERTIBLE NOTE AND WARRANT PURCHASE AGREEMENT

     

    This
      Secured Convertible Note and Warrant Purchase Agreement, dated as of April
      21,
      2006 (this “Agreement”),
      is
      entered into by and among WINWIN GAMING, INC., a Delaware corporation (the
      “Company”),
      and
      each of the undersigned purchasers (collectively, the “Purchasers”
and
      individually, a “Purchaser”)
      listed
      on the Schedule of Purchasers attached hereto as Exhibit A.
      

     

    RECITAL

     

    On
      the
      terms and subject to the conditions set forth herein, the Purchasers are willing
      to purchase from the Company, and the Company is willing to sell to the
      Purchasers, up to an aggregate principal amount of Two Million Dollars
      ($2,000,000) in Secured Convertible Promissory Notes (collectively, the
“Notes”)
      and
      warrants (collectively, the “Warrants”)
      to
      purchase common stock, par value of $0.01 per share, of the Company
      (“Common
      Stock”)
      at the
      Closing (as hereinafter defined). The Notes and Warrants shall be issued by
      the
      Company in the amounts set forth opposite each Purchaser’s name on the Schedule
      of Purchasers.

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the foregoing, and the representations,
      warranties and conditions set forth below, the parties hereto, intending to
      be
      legally bound, hereby agree as follows:

     

    1. The
      Notes.

     

    1.1 Issuance
      of Notes.
      In
      reliance upon and subject to the representations, warranties and covenants
      of
      the parties set forth herein, at the Closing, the Company shall issue, sell
      and
      deliver to each Purchaser, and each such Purchaser severally shall purchase
      from
      the Company, a Note in the principal amount set forth opposite such Purchaser’s
      name on the Schedule of Purchasers. Each of the Notes shall be secured by the
      assets of the Company as described in that certain Security Agreement of even
      date herewith between the Company and the Purchasers, in substantially the
      form
      attached hereto as Exhibit
      D
      (the
“Security
      Agreement”).
      The
      purchase price for each of the Notes shall be the original principal amount
      under such Note and shall be payable in immediately available funds within
      three
      (3) Business Days of the date hereof. “Business
      Day”
means
      any day except a Saturday, Sunday or other day on which commercial banks in
      New
      York, New York and Las Vegas, Nevada are authorized by law to
      close.

     

    1.2 Terms
      and Conditions of the Notes.
      The
      terms and conditions of the Notes (including the terms of the conversion
      thereof) are set forth in the form of Note attached as Exhibit B
      hereto.
      Capitalized terms not otherwise defined herein shall have the meaning set forth
      in Exhibit B
      attached
      hereto.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      EXECUTIVE
        COPY

       

      1.3 Priority.

    

    
      

        (a) Payment
          Priority.
          At any
          time that obligations represented by the Notes are presently due and payable,
          such obligations shall rank senior to all other indebtedness of the Company,
          except that the notes or other obligations set forth on Schedule
          1.3
          shall
          rank senior to the Notes. Any indebtedness of the Company other than as
          set
          forth in Schedule
          1.3
          may not
          be paid if payments under the Notes are due and owing to the Holders thereof.
          Any debt incurred by the Company after the execution of this Agreement
          shall be
          subordinate to the obligations represented by the Notes in right to payment
          unless and to the extent that the Purchaser specifically consents in writing
          to
          subordination of the Notes to such future indebtedness.

         

        (b) Liquidation
          Preference.
          Upon
          the liquidation of the Company, the holder or holders of the Notes shall
          have
          the right to receive payment, in full, prior and in preference to any payment
          to
          any other person having a claim to the assets of the Company, other than
          repayment of the indebtedness set forth on Schedule
          1.3,
          which
          shall rank senior to the Notes with respect to any liquidation payment.
          

         

        2. Warrants.

         

        2.1 Issuance
          of Warrants.
          In
          reliance upon and subject to the representations, warranties and covenants
          of
          the parties set forth herein, at the Closing, the Company shall issue and
          deliver to each Purchaser, and each such Purchaser shall severally acquire,
          a
          Warrant in the form attached hereto as Exhibit
          C
          entitling such Purchaser to purchase shares of Common Stock as determined
          in the
          form of Warrant attached hereto as Exhibit
          C.
          

         

        2.2 Terms
          of Warrant.
          The
          other terms and conditions of the Warrants are set forth in the form of
          Warrant
          attached hereto as Exhibit C
          hereto.

         

        3. Closing;
          Delivery.

         

        3.1 Closing.
          The
          closing of the purchase and sale of Notes and Warrants hereunder shall
          take
          place at the offices of Reed Smith LLP, counsel to the Purchasers, at 599
          Lexington Avenue, 29th
          floor,
          New York, New York 10022 on April ___, 2006 or at such time and place as
          the
          Company and the Purchasers shall mutually determine (the “Closing”).

         

        3.2 Delivery.
          Subject
          to the terms of this Agreement, (a) at the Closing, the Company will
          deliver to each Purchaser (i) a Note in such Purchaser’s name representing
          the Note acquired by such Purchaser at the Closing, (ii)  a Warrant in such
          Purchaser’s name representing the Warrant being issued to such Purchaser at the
          Closing, (iii) an executed copy of the Security Agreement, and (iv) an
          executed
          copy of the Investor Rights Agreement (defined below), and (b) at the
          Closing, each Purchaser will deliver to the Company payment, by check or
          wire
          transfer in immediately available funds, for the Note and Warrant being
          acquired
          by such Purchaser at the Closing in an amount equal to the total purchase
          price
          set forth opposite Purchaser’s name on the Schedule of Purchasers.

         

        4. Representations
          and Warranties of the Company.
          The
          Company hereby represents and warrants to the Purchasers that the statements
          contained in the following paragraphs of this Section 4 are all true and
          correct as of the date hereof.

         

        
          
            
            

          

          
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    EXECUTIVE
      COPY

     

    
      4.1 Corporate
        Organization and Authority.
        The
        Company:

       

    

    

      (a) is
        a
        corporation duly organized, validly existing, authorized to exercise all
        its
        corporate powers, rights and privileges, and in good standing in the State
        of
        Delaware;

       

      (b) has
        all
        requisite corporate power and corporate authority to own, lease and operate
        its
        properties and to carry on its business as now conducted and as proposed
        to be
        conducted and possesses all business licenses, franchises, rights and privileges
        material to the conduct of its business; and

       

      (c) is
        qualified to do business and is in good standing in each jurisdiction in
        which
        the failure to so qualify would have a Material Adverse Effect. As used in
        this
        Agreement, “Material
        Adverse Effect”
means
        a
        material adverse effect on, or a material adverse change in, or a group of
        such
        effects on or changes in, the business, operations, financial condition,
        results
        of operations, assets or liabilities of the Company.

       

      4.2 Capitalization.
        The
        authorized capital of the Company consists of:

       

      (a) Preferred
        Stock.
        Ten
        Million (10,000,000) shares of preferred stock, $0.01 par value per share,
        of
        the Company, none of which shares are issued and outstanding.

       

      (b) Common
        Stock.
        Three
        Hundred Million (300,000,000) shares of Common Stock, of which Sixty-Two
        Million
        Four Hundred Forty Thousand Eight Hundred Forty-Six (62,440,846) shares are
        issued and outstanding. All issued and outstanding shares of Common Stock
        have
        been duly and validly issued (including, without limitation, issued in
        compliance with applicable federal and state securities laws), and are
        fully-paid, non-assessable.

       

      (c) The
        Company has reserved (a) Twenty Million (20,000,000) shares of Common Stock
        for
        issuance to the Company’s employees, officers, directors or outside consultants
        or contractors pursuant to the 2003 Stock Plan of the Company and (b) Eight
        Million Six Hundred Ninety-One Thousand One Hundred Eighty-One (8,691,181)
        shares of Common Stock for issuance upon exercise of outstanding warrants.
        The
        Company has Six Million Three Hundred Ten Thousand Two Hundred Eighty-Three
        (6,310,283) shares of Common Stock available for future grant under the 2003
        Stock Plan. Except as set forth in Schedule
        4.2,
        there
        are no outstanding, authorized or legally mandated preemptive rights, options,
        warrants, purchase rights, calls, subscription rights, conversion rights,
        exchange rights, or other contracts or commitments that could require the
        Company to issue, sell, or otherwise cause to become outstanding any of its
        capital stock. There are no outstanding or authorized stock appreciation,
        phantom stock, profit participation, restricted stock units or similar rights
        with respect to the Company or any shares of its capital stock. Except as
        set
        forth in Schedule
        4.2,
        there
        are no voting trusts, stockholder agreements, proxies or other agreements
        or
        understandings in effect with respect to the voting or transfer of any of
        the
        shares of capital stock of the Company.

       

      4.3 Subsidiaries.
        Except
        as set forth in Schedule
        4.3,
        the
        Company does not presently own, have any investment in, or control, directly
        or
        indirectly, any corporation, limited liability company, limited partnership
        or
        other business entity. Except as set forth in Schedule
        4.3,
        the
        Company is not a participant in any joint venture or general
        partnership.

       

      4.4 Authorization.
        All
        corporate action on the part of the Company, its directors and stockholders
        necessary for the authorization, execution, delivery and performance of all
        obligations under this Agreement, the Security Agreement, the Investor Rights
        Agreement (as defined below), and any other agreement or document to be
        delivered in connection herewith or therewith, and for the issuance and delivery
        of the Notes and the Warrants and the shares of Common Stock issuable upon
        conversion of the Notes and exercise of the Warrants has been taken, and
        this
        Agreement constitutes, and the Notes and Warrants, when issued in accordance
        with the terms hereof will constitute, valid and legally binding obligations
        of
        the Company enforceable in accordance with their respective terms, except
        as
        limited by applicable bankruptcy, insolvency, reorganization, moratorium
        or
        other laws of general application relating to or affecting enforcement of
        creditors’ rights and rules of law concerning equitable remedies.

       

    

    
      
        
        

      

      
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    4.5 Brokers
      and Finders.
      The
      Company has not retained any investment banker, broker, or finder in connection
      with the transactions contemplated by this Agreement.

     

    4.6 Litigation.
      Except
      as set forth in Schedule
      4.6,
      there
      is no action, suit, proceeding or, to the Company’s knowledge, investigation
      pending or threatened against the Company that challenges the validity of this
      Agreement or any other agreement or document to be delivered in connection
      herewith or the right of the Company to enter into this Agreement or that might
      result, either individually or in the aggregate, in any material adverse changes
      in the assets, condition or affairs of the Company, nor is the Company aware
      of
      any basis for the foregoing.

     

    4.7 Financial
      Information.
      All
      financial information, tax returns, and other documents and information
      delivered or shown to Purchasers and listed in Schedule
      4.7
      are
      accurate and complete and the information therein accurately reflects the
      operations and results of the business of the Company for the applicable periods
      shown. The Company has no material liabilities, contingent or otherwise, other
      than (i) liabilities incurred in the ordinary course of business subsequent
      to
      December 31, 2005 (ii) obligations under contracts and commitments incurred
      in
      the ordinary course of business and not required under generally accepted
      accounting principles to be reflected in the financial statements, which, in
      both cases, individually or in the aggregate are not material to the financial
      condition or operating results of the Company.

     

    4.8 Taxes.
      All
      known business, income, sales, use, withholding, social security, state
      disability, unemployment insurance or similar tax liabilities of the Company
      and
      the business of the Company have been fully satisfied or provided for, and
      there
      are no audits pending by, or disputes with, any tax authority with respect
      to
      such items.

     

    4.9 Intellectual
      Property.
      The
      Company owns, or has rights to use, all patents, patent applications,
      trademarks, trademark applications, services marks, trade names, copyrights,
      licenses and rights which are necessary or material for use in connection with
      its business, and which the failure to so have would have a Material Adverse
      Effect (collectively, the “Intellectual
      Property Rights”).
      Except as set forth in Schedule
      4.9,
      all
      such Intellectual Property Rights are enforceable and, to the Company’s
      knowledge, there is no existing infringement by another person or entity of
      any
      of the Intellectual Property Rights.

     

    4.10 Offering.
      Assuming the accuracy of the representations and warranties of the Purchasers
      in
      Section 5 below, the offer, issuance and sale of the Notes and Warrants are
      and
      will be, and the issuance of Common Stock upon conversion of the Notes and
      exercise of the Warrants will be, exempt from the registration and prospectus
      delivery requirements of the Securities Act of 1933, as amended (the
“Securities
      Act”)
      and
      have been registered or qualified (or are exempt from registration and
      qualification) under the registration, permit, or qualification requirements
      of
      all applicable state securities laws. 

     

     

    
      
        
        

      

      
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    4.11 Guaranties.
      The
      Company has not assumed, guaranteed, endorsed or otherwise become directly
      or
      contingently liable on (including, without limitation, liability by way of
      agreement, contingent or otherwise, to purchase, to provide funds for payment,
      to supply funds to or otherwise invest in the debtor or otherwise to assure
      the
      creditor against loss) any indebtedness of any other Person. “Person”
means
      an individual, corporation, partnership, limited liability company, joint
      venture, trust, or unincorporated organization, or a government or any agency
      or
      political subdivision thereof.

     

    4.12 Preemptive
      Rights.
      Except
      as set forth in Schedule
      4.12,
      no
      investor in the Company, existing as of the date of this Agreement has, or
      is
      expected to have, any preemptive right as to any future issuance of securities
      of any kind by the Company. 

     

    4.13 Accuracy
      of Representations.
      None of
      the representations made by the Company herein, and in any of the documents
      to
      be delivered in connection herewith, shall contain any untrue statement of
      a
      material fact or omit or, as of the Closing, will omit to state a material
      fact
      necessary to make the statements contained herein or therein not
      misleading.

     

    5. Representations
      and Warranties by the Purchasers.
      Each
      Purchaser represents and warrants to the Company as of the time of issuance
      of
      the Notes and Warrants as follows:

     

    5.1 Investment
      Intent
      The
      Notes, Warrants and the securities issuable upon conversion of the Notes and
      exercise of the Warrants (collectively, the “Underlying
      Securities;
      the
      Underlying Securities, the Notes and the Warrants are collectively referred
      to
      herein as the “Securities”)
      will
      be acquired for each Purchaser’s own account, for investment and not with a view
      to, or for resale in connection with, any distribution or public offering
      thereof within the meaning of the Securities Act, or any applicable state
      securities laws.

     

    5.2 Securities
      Not Registered.
      Each
      Purchaser understands that none of the Securities has been registered under
      the
      Securities Act by reason of their issuance in a transaction exempt from the
      registration and prospectus delivery requirements of the Securities Act pursuant
      to Section 4(2) thereof, that the Company has no present intention of
      registering any of the Securities, that the Securities must be held by such
      Purchaser indefinitely, and that such Purchaser must therefore bear the economic
      risk of such investment indefinitely, unless a subsequent disposition thereof
      is
      registered under the Securities Act or is exempt from registration. Each
      Purchaser further understands that the Securities have not been qualified under
      applicable state securities laws by reason of their issuance in a transaction
      exempt from the qualification requirements of applicable state securities laws,
      which exemption depends upon, among other things, the bona fide nature of such
      Purchaser’s investment intent expressed above. 

     

    5.3 Full
      Disclosure.
      Each
      Purchaser and its representatives has been given all such information as has
      been requested in order to evaluate the merits and risks of the prospective
      investment contemplated herein. Notwithstanding the foregoing, such due
      diligence investigation shall not limit the representations and warranties
      made
      by the Company in Section 4 hereof.

     

    
      
        
        

      

      
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    5.4 Accredited
      Investor.
      Each
      Purchaser: (i) is an “Accredited
      Investor”
as
      that
      term is defined in Rule 501 of Regulation D promulgated under the
      Securities Act or has such knowledge and experience in financial and business
      matters as to be capable of evaluating the merits and risks of such Purchaser’s
      prospective investment in the Securities; (ii) has the ability to bear the
      economic risks of such Purchaser’s prospective investment, including a complete
      loss of such Purchaser’s investment in the Securities; and (iii) has not
      been offered the Securities by any form of advertisement, article, notice or
      other communication published in any newspaper, magazine, or similar media
      or
      broadcast over television or radio, or any seminar or meeting whose attendees
      have been invited by any such media.

     

    5.5 Authority.
      Each
      Purchaser has the full right, power and authority to enter into and perform
      such
      Purchaser’s obligations under this Agreement, and this Agreement constitutes a
      valid and binding obligation of such Purchaser enforceable in accordance with
      its terms except as limited by applicable bankruptcy, insolvency,
      reorganization, fraudulent conveyance, moratorium, usury or other laws of
      general application relating to or affecting enforcement of creditors rights
      and
      rules or laws concerning equitable remedies. No consent, approval or
      authorization of or designation, declaration or filing with any governmental
      authority on the part of such Purchaser is required in connection with the
      valid
      execution and delivery of this Agreement.

     

    5.6 No
      Transfer.
      Each
      Purchaser understands that if the Company does not (i) register its Common
      Stock with the Securities and Exchange Commission pursuant to Section 12 of
      the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”),
      (ii) become subject to Section 15(d) of the Exchange Act,
      (iii) supply information pursuant to Rule 15c2-11 thereunder, or
      (iv) have a registration statement covering the Securities (or a filing
      pursuant to the exemption from registration under Regulation A of the Securities
      Act covering the Securities) under the Securities Act in effect when such
      Purchaser desires to sell the Securities, such Purchaser may be required to
      hold
      the Securities for an indeterminate period. Each Purchaser also understands
      that
      any sale of the Securities that might be made by such Purchaser in reliance
      upon
      Rule 144 under the Securities Act may be made only in limited amounts in
      accordance with the terms and conditions of that rule.

     

    6. Covenants
      of the Company.
      

     

    6.1 Affirmative
      Covenants of the Company.
      So long
      as any principal amount or accrued interest under the Notes is outstanding,
      the
      Company shall deliver to each of the Purchasers: (a) audited annual financial
      statements within ninety (90) days after the end of each fiscal year, beginning
      with the 2006 fiscal year; and (ii) unaudited quarterly financial statements
      within forty five (45) days of the end of each fiscal quarter. 

     

    6.2 Negative
      Covenants of the Company.
      Without
      limiting any other covenants and provisions hereof, the Company covenants and
      agrees that, as long as any of the Notes are outstanding, it will comply with
      and observe the following covenants and provisions, and will not, without the
      prior written consent of the Holders constituting a majority of the outstanding
      principal amount of the Notes:

     

    
      
        
        

      

      
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    (a) Indebtedness.
      Authorize, create, incur, assume or suffer to exist any indebtedness, except
      for:

     

    
      	 	
              (i)

            	
              the
                Notes;

            

    

     

    
      	 	
              (ii)

            	
              indebtedness
                set forth in Section
                1.3;
                and

            

    

     

    
      	 	
              (iii)

            	
              indebtedness
                that is subordinate to the Notes.

            

    

     

    (b) Mergers,
      Sale of Assets, etc.
      Merge
      or consolidate with, or sell, assign or otherwise dispose of or part with the
      control of (whether in one transaction or in a series of transactions)
      substantially all of its assets (whether now owned or hereafter acquired) to,
      any Person, except for currently existing arrangements with Pay By Touch and
      arrangements with Pay By Touch that are contemplated by existing agreements
      with
      Pay By Touch and except that the Company may merge any Person into it or
      otherwise acquire such Person as long as the Company is the surviving entity,
      such merger or acquisition does not result in the violation of any of the
      provisions of this Agreement and no such violation exists at the time of such
      merger or acquisition or immediately thereafter, and provided that such merger
      or acquisition does not result in the transfer of fifty percent (50%) or more
      of
      the outstanding securities of the Company.

     

    (c) Repurchase;
      Redemption.
      Effect
      any repurchase or redemption of any equity securities of the Company; except
      pursuant to currently existing arrangements with Pay By Touch and arrangements
      with Pay By Touch that are contemplated by existing agreements with Pay By
      Touch
      set forth in Schedule
      6.2(c).
      

     

    7. Redemption
      by the Company.
      At any
      time prior to the Maturity Date (as defined in the Notes), the Company may
      choose to redeem the Notes by payment of the Disposition Payment (as defined
      below), provided, however, that the Company shall give ten (10) days prior
      written notice to each Purchaser of such intention to redeem the Notes; and
      further provided that during such 10-day period, in lieu of such redemption,
      each Purchaser may elect to convert all principal and interest then outstanding
      under the Notes into Common Stock or any other equity securities of the Company,
      in accordance with the conversion provisions set forth in the Notes.
 The
      “Disposition
      Payment”
shall
      be equal to the outstanding principal balance of each Note and all accrued
      but
      unpaid interest. 

     

    8. Investor
      Rights Agreement.
      The
      Company shall grant the holder(s) of the Notes and Warrants all the rights
      of a
“Holder”
under
      the Investor Rights Agreement of even date herewith by and among the Company
      and
      the Purchasers, in substantially the form attached hereto as Exhibit
      E
      (the
“Investor
      Rights Agreement”),
      including, without limitation, the registration rights contained
      therein.

     

    9. Miscellaneous.

     

     

    
      
        
        

      

      
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    9.1 Legal
      Expenses.
      Each
      party will bear its own legal and other fees and expenses in connection with
      the
      transactions contemplated in this Agreement; except that the Company shall
      pay
      up to $50,000 of the legal fees incurred by counsel to the
      Purchasers.

     

    9.2 Waivers
      and Amendments.
      Any
      provision of this Agreement and the Notes may be amended, waived or modified
      upon the written consent of the Company and the Purchasers holding a majority
      in
      interest of the then-outstanding principal amount of the Notes.

     

    9.3 Governing
      Law.
      This
      Agreement and all actions arising out of or in connection with this Agreement
      shall be governed by and construed in accordance with the laws of the State
      of
      New York, without regard to the conflicts of law provisions of the State of
      New
      York or of any other state.

     

    9.4 Choice
      of Venue; Waiver of Right to Jury.
      

     

    (a) THIS
      AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
      DEEMED MADE, EXECUTED, PERFORMED AND CONSTRUED
      IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY
      LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER DOCUMENT
      MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES
      FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE
      COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH
      PARTY
      HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY
      AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS.
      EACH PARTY HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS
      LACK
      PERSONAL JURISDICTION OVER SUCH PARTY, AND AGREES NOT TO PLEAD OR CLAIM IN
      ANY
      LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER DOCUMENT
      BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS PERSONAL
      JURISDICTION OVER SUCH PARTY. EACH PARTY FURTHER IRREVOCABLY CONSENTS TO THE
      SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION
      OR
      PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL,
      POSTAGE PREPAID, TO ANY SUCH PARTY AT ITS ADDRESS FOR NOTICES AS PROVIDED IN
      SECTION 9.6 HEREOF, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.
      EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS
      AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION
      OR
      PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER DOCUMENT THAT SUCH SERVICE
      OF
      PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT
      THE
      RIGHT OF THE PARTY UNDER THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER
      PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
      ANY PARTY IN ANY OTHER JURISDICTION.

     

     

    
      
        
        

      

      
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      (b) EACH
        PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
        HAVE
        TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING
        OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER DOCUMENT BROUGHT
        IN THE
        COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES
        AND
        AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR
        PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
        FORUM.

       

      (c) EACH
        OF
        THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL
        BY
        JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING
        TO
        THIS AGREEMENT, THE OTHER DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY
        OR
        THEREBY.

       

      9.5 Entire
        Agreement.
        This
        Agreement together with the Notes, the Warrants, the Security Agreement,
        and the
        Investor Rights Agreement, in substantially the forms attached hereto as
        Exhibit B, Exhibit
        C, Exhibit
        D,
        and
Exhibit E,
        respectively, constitute the full and entire understanding and agreement
        between
        the parties with regard to the subjects hereof and thereof.

       

      9.6 Notices,
        etc.
        All
        notices and other communications required or permitted hereunder shall be
        in
        writing and shall be sent via facsimile, overnight courier service or mailed
        by
        certified or registered mail, postage prepaid, return receipt requested,
        addressed or sent (a) if to a Purchaser, at the address or facsimile number
        of the Purchaser set forth on such Purchaser’s signature page to this Agreement,
        or at such other address or number as the Purchaser shall have furnished
        to the
        Company in writing, or (b) if to the Company, at 8687 West Sahara, Suite
        201, Las Vegas, Nevada 89117, or at such other address or number as the Company
        shall have furnished to the Purchaser in writing.

       

      9.7 Validity.
        If any
        provision of this Agreement, the Notes or the Warrants shall be judicially
        determined to be invalid, illegal or unenforceable, the validity, legality
        and
        enforceability of the remaining provisions shall not in any way be affected
        or
        impaired thereby.

       

      9.8 Counterparts.
        This
        Agreement may be executed in any number of counterparts, each of which shall
        be
        an original, but all of which together shall be deemed to constitute one
        instrument.

    

    

      [Signature
        page follows]

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

    
      EXECUTIVE
        COPY

      
 

      IN
        WITNESS WHEREOF, the parties have caused this Secured Convertible Note and
        Warrant Purchase Agreement to be duly executed and delivered by their proper
        and
        duly authorized officers as of the date and year first written
        above.

      
        	 	 	 
	 	
                COMPANY:

                WINWIN
                  GAMING, INC.

              
	 	
                a
                  Delaware corporation

              
	 
 	 
 	 
 
	 	By:  	/s/
                Patrick Rogers
	 	
                
Name:
                Patrick Rogers
	 	
                Title:
                  President & Chief Executive
                  Officer

              

      

       

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    EXECUTIVE
      COPY

    
 

    [SIGNATURE
      PAGE TO SECURED CONVERTIBLE NOTE 

    AND
      WARRANT PURCHASE AGREEMENT]

     

     

    
      	 	PURCHASERS: 
	 	 	 
	 	By:  	/s/
              Michael Clofine
	 	 	
              
 
	 	Print
              Name:	Calico Capital Group
	 	 	
              
 
	 	Address:	
              280
                Park Avenue 

              5th
                Floor Bast.

              New
                York, NY 10017

            
	 	 	
              
 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXECUTIVE
      COPY

    
 

    [SIGNATURE
      PAGE TO SECURED CONVERTIBLE NOTE 

    AND
      WARRANT PURCHASE AGREEMENT]

     

    
      
        	 	PURCHASERS: 
	 	 	 
	 	By:  	/s/
                Trevor Colby
	 	 	
                
 
	 	Print
                Name:	Trevor Colby
	 	 	
                
 
	 	Address:	
                1512
                  Montana Avenue

                Santa
                  Monica, CA 90403

              
	 	
                
 

      

       

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXECUTIVE
      COPY

    
 

    [SIGNATURE
      PAGE TO SECURED CONVERTIBLE NOTE 

    AND
      WARRANT PURCHASE AGREEMENT]

     

    
      
        	 	PURCHASERS: 
	 	 	 
	 	By:  	/s/
                Stephen Rasch
	 	 	
                
 
	 	Print
                Name:	Patriot
                Capital Limited
	 	 	
                
 
	 	Address:	
                12/E
                  Novel Industrial Building

                850-870
                  Lai Chi Kok Road

                Cheung
                  Sha Wan, Kowloon

                Hong
                  Kong

              
	 	
                
 

      

       

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      EXECUTIVE
        COPY

      

        [SIGNATURE
          PAGE TO SECURED CONVERTIBLE NOTE 

        AND
          WARRANT PURCHASE AGREEMENT]

         

      

      
        
          	 	PURCHASERS: 
	 	 	 
	 	By:  	/s/
                  Mark Tunnery
	 	 	
                  
 
	 	Print
                  Name:	MLA
                  Capital, Inc.
	 	 	
                  
 
	 	Address:	
                  11111
                    Santa Monica Blvd.

                  Suite 1122

                  Los Angeles, CA 90025

                
	 	
                  
 

        

         

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      EXECUTIVE
        COPY

      
 

      
        
          [SIGNATURE
            PAGE TO SECURED CONVERTIBLE NOTE 

          AND
            WARRANT PURCHASE AGREEMENT]

           

        

      

      
        
          	 	PURCHASERS: 
	 	 	 
	 	By:  	/s/
                  N.J. Fiore
	 	 	
                  
 
	 	Print
                  Name:	Ridgewood
                  Ltd.
	 	 	
                  
 
	 	Address:	
                  763
                    Oppen Road

                  Ridgewood, NJ 07450

                
	 	
                  
 

        

         

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    EXECUTIVE
      COPY

    
 

    Schedule
      1.3

    

    Schedule
      of Senior Debt

    

    

    
      	Name	 	Amount
	Pay By Touch	 	$2,500,000EXECUTIVE
      COPY

     

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED. SUCH SECURITIES AND ANY SECURITIES OR SHARES ISSUED
      HEREUNDER MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
      OR
      AN EXEMPTION THEREFROM UNDER SAID ACT. COPIES OF THE AGREEMENT COVERING THE
      PURCHASE OF THESE SECURITIES AND RESTRICTING THEIR TRANSFER OR SALE MAY BE
      OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD HEREOF
      TO
      THE SECRETARY OF THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICES.

     

    THE
      OBLIGATIONS REPRESENTED BY THIS NOTE ARE SUBJECT TO A SUBORDINATION
      AGREEMENT AMONG THE COMPANY, THE HOLDER, AND ONE OR MORE LENDERS OF THE
      COMPANY; A COPY OF SUCH AGREEMENT MAY BE OBTAINED FROM THE COMPANY UPON
      WRITTEN REQUEST.

    

     

    WINWIN
      GAMING, INC.

     

    SECURED
      CONVERTIBLE PROMISSORY NOTE

     

    
      	$____________	 	April __,
              2006

    

     

    WINWIN
      GAMING, INC.,
      a
      Delaware corporation (the “Company”),
      for
      value received, promises to pay to ________________,
      or its
      assigns (the “Holder”),
      the
      principal sum of ____________ Dollars ($_______), plus simple interest thereon
      at the rate of seven and a half percent (7.5%) per annum (the “Base
      Rate”),
      and
      such interest to be payable monthly in arrears, the first such payment to be
      due
      and payable on the first day of the first full month following the date hereof,
      until the entire principal amount outstanding remaining unpaid shall become
      due
      and payable, provided that, upon an Event of Default (as defined below), the
      interest rate shall increase to twelve percent (12%) per annum (the
“Default
      Rate”),
      and
      continuing through the date on which such Event of Default is cured to Holder’s
      satisfaction, after which the interest rate shall return to the Base Rate,
      provided further that, such interest payments may be deferred to the Maturity
      Date with the Holder’s prior written consent. Interest on this Note shall be
      computed on the basis of a 360-day year consisting of twelve 30-day months.
      

     

    This
      Note
      will automatically mature and the entire outstanding principal amount, together
      with accrued, but unpaid, interest, shall become due and payable upon written
      demand by the Holder, which demand may be made at any time after the earlier
      of
      (i) one hundred eighty (180) days following the date hereof, (ii) an Event
      of
      Default, or (iii) the closing of any equity or equity-related financing (an
      “Equity
      Financing”)
      by the
      Company in which the gross proceeds to the Company (not taking into account
      broker’s fees, commission and/or expenses relating thereto) are at least Two
      Million Five Hundred Thousand Dollars ($2,500,000), it being understood and
      agreed that the conversion of the Company’s currently outstanding senior debt
      into shares of the Company’s equity securities shall not be deemed an equity or
      equity-related financing for this purpose (the “Maturity
      Date”),
      unless, prior to such time, this Note shall have been converted into shares
      of
      the Company’s capital stock pursuant to Section 1
      hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Payments
      of both principal and interest are to be made at the address of the Holder
      set
      forth in Section 8(d) below or at such other place in the United States as
      the Holder shall designate to the Company in writing in lawful currency of
      the
      United States of America. 

     

    This
      Note
      is one of a series of notes issued pursuant to that certain Secured Convertible
      Note and Warrant Purchase Agreement (the “Agreement”),
      dated
      as of even date herewith, by and among the Company, the initial Holder and
      the
      other Purchasers as parties thereto, which is incorporated herein by reference
      as though fully set forth herein. This Note shall be referred to herein as
      the
“Note”
and
      all
      Notes issued under the Agreement shall be referred to as the “Notes”).
      The
      following is a statement of the additional rights of the Holder and the
      additional conditions to which this Note is subject, and to which the Holder,
      by
      the acceptance of this Note, further agrees:

     

    1.  Conversion.

     

    (a)  Optional
      Conversion.
      At any
      time prior to the Maturity Date, the outstanding principal balance and accrued
      and unpaid interest of this Note may be converted in whole or in part, at the
      option of the Holder, into (i) shares of common stock, $0.01 par value per
      share, of the Company (“Common
      Stock”)
      at a
      conversion price of fifty cents ($0.50) per share (the “Conversion
      Price”)
      or
      (ii) securities of the type issued by the Company in any Equity Financing at
      a
      conversion price equal to the issuance price at which such securities are sold
      in such Equity Financing; provided however, that the Conversion Price shall
      be
      adjusted in accordance with Section
      1(b), (c), (d), (e) and (f)
      hereof,
      and the Company shall deliver notice of such adjustment to the Holder in
      accordance with Section
      1(g)
      of this
      Note. The Company shall effectuate the conversion of the Note within ten (10)
      Business Days (as defined in the Agreement) of receipt of a notice of conversion
      from the Holder.

     

    (b)  Adjustments
      to Conversion Price.
      In the
      event the Company shall at any time after the Closing (as defined in the
      Agreement) issue Additional Shares of Common Stock (defined herein), without
      consideration or for a consideration per share less than the applicable
      Conversion Price in effect immediately prior to such issue (“Dilutive
      Issuance”),
      then
      the Conversion Price shall be adjusted to a price determined by multiplying
      the
      Conversion Price in effect immediately prior to the Dilutive Issuance by a
      fraction:

     

    (1)  the
      numerator of which shall be (A) the number of shares of Common Stock issued
      or
      issuable upon the exercise of all outstanding options, warrants and convertible
      securities outstanding immediately
      prior to the Dilutive Issuance, plus (B) the number of shares of Common Stock
      that the aggregate consideration, if any, received by the Company in connection
      with the Dilutive Issuance would purchase at the then applicable Conversion
      Price, and

     

    (2)  the
      denominator of which shall be (A) the number of shares of Common Stock issued
      or
      issuable on exercise of all outstanding options, warrants and convertible
      securities outstanding immediately prior to the Dilutive Issuance, plus (B)
      the
      number of shares of Common Stock issued or deemed issued in the Dilutive
      Issuance;

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    provided
      that
      if such
      issuance or deemed issuance was without consideration, then the Company shall
      be
      deemed to have received an aggregate of one tenth of one cent ($.001) of
      consideration for all such Additional Shares of Common Stock issued or deemed
      to
      be issued. For
      purposes of the foregoing paragraph, “Additional
      Shares of Common Stock”
shall
      mean any issuances of equity securities (or securities convertible into equity
      securities) of the Company, other than the following:

     

    	a.  	
            shares
              of Common Stock issued or issuable by reason of a dividend, stock split,
              split-up or other distribution of shares of Common Stock as described
              in
              Section 1(c), (d) or (e) hereof;

          

     

    	b.  	
            up
              to Thirteen Million Six Hundred Eighty-Nine Thousand Seven Hundred
              Seventeen (13,689,717) shares of Common Stock actually issued upon
              the
              exercise of stock options; 

          

     

    	c.  	
            shares
              of Common Stock actually issued upon the exercise, exchange or conversion
              of options, warrants, convertible and other securities outstanding
              as of
              the date hereof and as set forth on Schedule
              4.2
              of
              the Agreement, in each case provided such issuance is pursuant to the
              terms of such option or convertible security;

          

     

    	d.  	
            shares
              of Common Stock issuable upon conversion of the Notes and upon exercise
              of
              the Warrants; and

          

     

    	e.  	
            securities
              in connection with a transaction where all of the Holders have indicated
              in writing that the transaction should be exempt from the anti-dilution
              adjustment provisions hereof.

          

     

    (c)  Adjustment
      for Stock Splits and Combinations.
      If the
      Company, at any time before the Maturity Date shall split, subdivide or combine
      the outstanding shares of Common Stock into a different number of shares of
      Common Stock, then (i) in the case of a split or subdivision, the Conversion
      Price for such securities shall be proportionately decreased and the shares
      of
      Common Stock issuable upon conversion of this Note shall be proportionately
      increased, and (ii) in the case of a combination, the Conversion Price shall
      be
      proportionately increased and the securities issuable upon conversion of this
      Note shall be proportionately decreased.

     

    (d)  Adjustments
      for Dividends in Stock or Other Securities or Property.
      If,
      while this Note or any portion hereof remains outstanding and unexpired, the
      holders of Common Stock, as applicable, shall have received, or, on or after
      the
      record date fixed for the determination of eligible stockholders, shall have
      become entitled to receive, without payment therefor, additional shares of
      Common Stock, as applicable, by way of dividend, then and in each case, this
      Note shall represent the right to convert into, in addition to the number of
      shares of the security receivable upon exercise of this Note, and without
      payment of any additional consideration therefor, the amount of such additional
      shares of Common Stock, as applicable, that such holder would hold on the date
      of such conversion had it been the holder of record of that number of shares
      of
      Common Stock, as applicable, receivable upon exercise of this Note on the date
      hereof and had thereafter, during the period from the date hereof to and
      including the date of such exercise, retained such shares and/or all other
      additional stock available by it as aforesaid during such period, giving effect
      to all adjustments called for during such period by the provisions of this
      Section
      1.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    (e)  Reclassification,
      etc.
      If the
      Company, at any time while this Note or any portion thereof remains outstanding
      and unexpired, by reclassification of securities or otherwise, shall change
      any
      of the securities as to which conversion rights under this Note exist into
      the
      same or a different number of securities of any other class or classes, this
      Note shall thereafter represent the right to acquire such number and kind of
      securities as would have been issuable as the result of such change with respect
      to the securities that were subject to the purchase rights under this Note
      immediately prior to such reclassification or other change and the Conversion
      Price therefor shall be appropriately adjusted, all subject to further
      adjustment as provided in this Section
      1.

     

    (f)  Registration
      Statement.
      Pursuant to Section
      2.4(b)
      of the
      Investor Rights Agreement, in the event that the registration statement required
      to be filed by the Company thereunder is not declared effective within one
      hundred eighty (180) days following the Closing, the Conversion Price shall
      be
      reduced by $0.025 per share for each thirty (30) day period that the
      effectiveness of the registration statement is delayed, but in no event shall
      this provision cause the Conversion Price to be reduced below $0.40 per
      share.

     

    (g)  Notices.
      Whenever the Conversion Price or number of shares purchasable hereunder shall
      be
      adjusted pursuant to subsection
      1(b), (c), (d), (e) or (f)
      hereof,
      the Company shall promptly issue a certificate to the Holder, signed by the
      Chief Financial Officer of the Company, setting forth, in reasonable detail,
      the
      event requiring the adjustment, the amount of the adjustment, the method by
      which the adjustment was calculated and the Conversion Price and number of
      shares issuable hereunder after giving effect to such adjustment.

     

    2.  Mechanics
      of Conversion.

     

    (a)  Fractional
      Shares.
      No
      fractional shares of Common Stock shall be issued upon conversion of this Note.
      In lieu of any fractional shares to which the Holder would otherwise be
      entitled, the Company shall pay cash equal to such fraction multiplied by the
      Conversion Price.

     

    (b)  Stock
      Certificates.
      The
      Company shall, as soon as practicable thereafter, issue and deliver to the
      holder of this Note, or to its nominee or nominees, a certificate or
      certificates for the number of shares of Common Stock to which it shall be
      entitled as aforesaid. Such conversion shall be deemed to have been made, as
      applicable, immediately prior to the close of business on the date of the
      closing of the transaction which causes the automatic conversion set forth
      above
      in Section 1.
      The
      person or persons entitled to receive the shares of Common Stock issuable upon
      such conversion shall be treated for all purposes as the record holders of
      such
      shares of Common Stock on such date.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    3.  Security.
      This
      Note is secured under that certain Security Agreement of even date herewith
      by
      and among the Company, the initial Holder and the other Purchasers party thereto
      (the “Security
      Agreement”).
      Reference is hereby made to the Security Agreement for a description of the
      nature and extent of the security for this Note and the rights with respect
      to
      such security of the Holder of this Note.

     

    4.  Default
      and Remedies.

     

    (a)  Event
      of Default.
      An
“Event
      of Default”
shall
      exist under this Note upon the happening of any of the following events or
      conditions, without demand or notice from the Holder:

     

    (i)  failure
      to make any payments required hereunder within three (3) Business Days (as
      defined in the Agreement) of (A) such payment becoming due, or (B) following
      notice given in accordance with the terms of this Note;

     

    (ii)  breach
      or
      failure to observe or perform any of the agreements, warranties, representations
      or covenants in this Note, the Agreement, the Security Agreement, or the
      Investor Rights Agreement, which breach or failure is not cured within thirty
      (30) days after the receipt of written notice thereof by the Holder or the
      holder of any of the Notes;

     

    (iii)  any
      petition in bankruptcy being filed by or against Company or any proceedings
      in
      bankruptcy, insolvency or under any other laws relating to the relief of
      debtors, being commenced for the relief or readjustment of any indebtedness
      of
      Company, either through reorganization, composition, extension or otherwise,
      and
      which, in the case of any involuntary proceedings shall be acquiesced to by
      Company or shall continue for a period of ninety (90) days undismissed,
      undischarged or unbonded;

     

    (iv)  the
      making by Company of an assignment for the benefit of creditors, which
      assignment results in a material adverse effect upon Company and is not cured
      within thirty (30) days after the receipt of written notice thereof by the
      Holder or the holder of any of the Notes; 

     

    (v)  the
      appointment of a receiver of any property of Company which shall not be vacated
      or removed within ninety (90) days after appointment; or

     

    (vi)  upon
      the
      date thirty (30) days following the occurrence of any event of default under
      the
      terms of any of the Company’s indebtedness or the acceleration of any
      indebtedness of the Company, which occurrence or acceleration results in a
      material adverse effect upon Company.

     

    (b)  Remedies.
      Upon
      the occurrence of an Event of Default under Section 4(a) hereof, at the option
      and upon the declaration of the Holder of the Note, the entire unpaid principal
      and accrued and unpaid interest on this Note shall, without presentment, demand,
      protest, or notice of any kind, all of which are hereby expressly waived, be
      forthwith due and payable, and Holder may immediately and without expiration
      of
      any period of grace, enforce payment of all amounts due and owing under this
      Note and exercise any and all other remedies granted to it at law, in equity
      or
      otherwise. 

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    5.  Charges,
      Taxes and Expenses.
      Issuance of a certificate for shares of Common Stock upon the conversion of
      this
      Note shall be made without charge to the Holder for any issue or transfer tax
      or
      other incidental expense in respect of the issuance of such certificate, all
      of
      which taxes and expenses shall be paid by the Company, and such certificate
      shall be issued in the name of the Holder, or such certificates shall be issued
      in such name or names as may be directed by the Holder; provided,
      however,
      that in
      the event certificates for shares of Common Stock (or replacement Notes) are
      to
      be issued in a name other than the name of the Holder, this Note when
      surrendered for exercise or transfer shall be accompanied by the Assignment
      Form
      attached hereto duly executed by the Holder; and provided further,
      that
      upon any transfer involved in the issuance or delivery of any certificates
      for
      shares of Common Stock or replacement Notes, the Company may require, as a
      condition thereto, the payment of a sum sufficient to reimburse it for any
      transfer tax incidental thereto. Any transfer shall be subject to (i) the
      transferee’s agreement in writing to be subject to the applicable terms of this
      Note and (ii) compliance with all applicable state and federal securities
      laws (including the delivery of investment representation letters, legal
      opinions and market stand-off agreements reasonably satisfactory to the Company,
      if such are requested by the Company). The Holder agrees that Holder shall
      execute such documents, and perform such acts, which are reasonably required
      to
      assure that the conversion hereof is consummated in compliance with all
      applicable laws.

     

    6.  No
      Rights as Stockholder.
      This
      Note does not entitle the Holder to any voting rights or other rights as a
      stockholder of the Company prior to the conversion hereof.

     

    7.  Loss,
      Theft or Destruction of Note.
      Upon
      receipt by the Company of evidence reasonably satisfactory to it of the loss,
      theft or destruction of this Note and of indemnity or security reasonably
      satisfactory to it, the Company will make and deliver a new Note which shall
      carry the same rights to interest (unpaid and to accrue) carried by this Note,
      stating that such Note is issued in replacement of this Note, making reference
      to the original date of issuance of this Note (and any successors hereto) and
      dated as of such cancellation.

     

    8.  Miscellaneous.

     

    (a)  Issue
      Date; Governing Law.
      The
      provisions of this Note shall be construed and shall be given effect in all
      respect as if it had been issued and delivered by the Company on the earlier
      of
      the date hereof or the date of issuance of any Note for which this Note is
      issued in replacement. This Note shall be binding upon any successors or assigns
      of the Company. This Note shall constitute a contract under the laws of the
      State of New York and for all purposes shall be construed in accordance with
      and
      governed by the laws of the State of New York.

     

    (b)  Restrictions.
      The
      Holder acknowledges that the shares of capital stock acquired upon the
      conversion of this Note will be subject to restrictions upon its resale imposed
      by state and federal securities laws and the provisions of the Company’s
      certificate of incorporation, as it may have been, or be amended from time
      to
      time in accordance with its terms.

     

    (c)  Assignment.
      Neither
      this Note nor any of the rights, interests or obligations hereunder may be
      assigned, by operation of law or otherwise, in whole or in part by the Holder
      to
      any person or entity without the prior written consent of the Company except
      (assuming compliance with applicable state and federal securities laws) in
      connection with an assignment in whole to an affiliate of the Holder or to
      a
      successor corporation to the Holder resulting from a merger or consolidation
      of
      the Holder with or into another corporation or the sale of all or substantially
      all of the Holder’s properties and assets. Effective upon any such assignment,
      the person or entity to whom such rights, interests and obligations were
      assigned shall have and exercise all of the Holder’s rights, interest and
      obligations hereunder as if such person or entity were the original Holder
      of
      this Note.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    (d)  Notices.
      Any
      notice, request or other communications required or permitted hereunder shall
      be
      given upon personal delivery or upon the seventh day following mailing by
      registered airmail (or certified first class mail if both the addresser and
      addressee are located in the United States), postage prepaid and addressed
      to
      the parties as follows:

     

    
      	To the Company:	 	
              WINWIN GAMING, INC.

              
                8687
                  West Sahara, Suite 201

                Las
                  Vegas, Nevada 89117

                Tel:
                  (702) 212-4530

                FAX:
                  (702) 212-4553

                Attn:
                  Patrick Rogers

              

            
	 	 	 
	To Holder:	 	At the address listed on such Holder’s
              signature page to the Agreement

    

     

    or
      to
      such other single place as any single addressee shall designate by written
      notice to the other addressees.

     

    	(e)  	
            Choice
              of Venue; Waiver of Right to Jury Trial.
              

          

     

    (i)  THIS
      NOTE
      AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE DEEMED MADE,
      EXECUTED, PERFORMED AND CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE
      LAW
      OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
      NOTE OR ANY OTHER DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW
      YORK
      OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE
      WHICH ARE LOCATED IN THE COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY
      OF
      THIS NOTE, EACH PARTY HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT
      OF
      ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION
      OF
      THE AFORESAID COURTS. EACH PARTY HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM
      THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH PARTY, AND AGREES
      NOT
      TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS NOTE
      OR
      ANY OTHER DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT
      LACKS PERSONAL JURISDICTION OVER SUCH PARTY. EACH PARTY FURTHER IRREVOCABLY
      CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS
      IN
      ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED
      OR
      CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH PARTY AT ITS ADDRESS FOR NOTICES
      AS
      PROVIDED HEREIN, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.
      EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS
      AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION
      OR
      PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER DOCUMENT THAT SUCH SERVICE
      OF
      PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT
      THE
      RIGHT OF THE PARTY UNDER THIS NOTE TO SERVE PROCESS IN ANY OTHER MANNER
      PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
      ANY PARTY IN ANY OTHER JURISDICTION.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    (ii)  EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
      HAVE
      TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING
      OUT OF OR IN CONNECTION WITH THIS NOTE OR ANY OTHER DOCUMENT BROUGHT IN THE
      COURTS REFERRED TO IN CLAUSE (i) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES
      AND
      AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR
      PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
      FORUM.

     

    (iii)  EACH
      OF
      THE PARTIES TO THIS NOTE HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY
      JURY
      IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
      NOTE, THE OTHER DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
      THEREBY.

     

    (f)  Enforcement.
      The
      Company shall pay all reasonable fees and expenses incurred by the Holder in
      the
      enforcement in any of the Company’s obligations hereunder not performed when
      due. In the event of a dispute with regard to the interpretation of this Note,
      the prevailing party shall be entitled to collect the cost of attorney’s fees,
      litigation expenses or such other expenses as may be incurred in the enforcement
      of the prevailing party’s rights hereunder.

     

    (g)  Amendment
      or Waiver.
      This
      Note shall only be amended upon the prior written consent of the Holder and
      the
      Company. 

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
 

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

     

    IN
      WITNESS WHEREOF, the undersigned has caused this Secured Convertible Promissory
      Note to be executed by its officer thereunto duly authorized.

     

    
      	 	 	 
	 	COMPANY:
	 	 
	 	WINWIN GAMING, INC.
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              
Name:
	 	Title:

    

     

     

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    EXECUTIVE
      COPY

     

    NOTICE
      OF CONVERSION

     

    (To
      convert the foregoing Note into shares of Common Stock or 

    any
      equity securities of the Company, execute this form and supply required
      information.)

     

    To: WINWIN
      GAMING, INC.

     

    (1) The
      undersigned hereby elects to convert the attached Secured Convertible Promissory
      Note (the “Note”) into:

     

    
      	 	__________ 	 	
              __________
                shares of Common Stock of WINWIN GAMING, INC. pursuant to Section
                1(a) and
                the other applicable terms of the attached Note;
                or

            

    

     

    
      	 	__________ 	 	
              __________
                shares of ___________ of WINWIN GAMING, INC. pursuant to Section
                1(a) and
                the other applicable terms of such
                Note.

            

    

     

    (2) In
      converting this Note, the undersigned hereby confirms and acknowledges that
      the
      securities being issued hereby are being acquired solely for the account of
      the
      undersigned and not as a nominee for any other party, or for investment, and
      that the undersigned will not offer, sell or otherwise dispose of any such
      securities, except under circumstances that will not result in a violation
      of
      the Securities Act of 1933, as amended, or any applicable state securities
      laws.

     

    (3) Please
      issue a certificate or certificates representing said securities in the name
      of
      the undersigned:

     

    
      	 	 	 
	 	
              
                
                                                         (Name)

            

    

     

    (4) Capitalized
      terms used herein shall have the meanings ascribed to them in the
      Note.

     

    
      	 	 	 
	
              (Date)

            	 	
              (Signature)

            
	 	 	 
	 	 	 
	 	 	
              (Print
                Name)

            

    

     

        

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXECUTIVE
      COPY

     

    ASSIGNMENT
      FORM

     

    

    (To
      be
      signed only upon assignment of the Note)

    

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto the assignee
      named below all of the rights of the undersigned represented by the attached
      Note with respect to the amount of principal covered by the Note set forth
      below:

    

    (Name
      and
      Address of Assignee Must Be Printed or Typewritten)

     

     

    
      	
              Name
                of Assignee

            	 	
              Social
                Security No. 

              or
                Tax I.D. No.

            	 	
              Address

            	 	
              Principal
                Amount

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

     

    and
      does
      hereby irrevocably constitute and appoint  
      Attorney
      to transfer said Note on the books of the Company, with full power of
      substitution in the premises.

    

    Dated:
      ________

    

    ________________________________________________

    Signature
      of Registered Holder

    

    Note: The
      signature on this assignment must correspond with the names as it appears upon
      the face of the Note in every particular, without alteration or enlargement
      or
      any change whatever.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]