Document:

Unassociated Document

     

    WINWIN
      GAMING, INC.

     

     

    INVESTOR
      RIGHTS AGREEMENT

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

    
      
        
          	 	 	
                  Page

                
	
                  Section
                    1 

                	
                  DEFINITIONS

                	
                  1

                
	
                  1.1

                	
                  Certain
                    Definitions

                	
                  1

                
	Section
                  2	
                  REGISTRATION
                    RIGHTS; RESTRICTIONS ON TRANSFERABILITY

                	
                  2

                
	
                  2.1

                	
                  Restrictions

                	
                  2

                
	
                  2.2

                	
                  Restrictive
                    Legend

                	
                  2

                
	
                  2.3

                	
                  Notice
                    of Proposed Transfers

                	
                  3

                
	
                  2.4

                	
                  Required
                    Registration

                	
                  3

                
	
                  2.5

                	
                  Company
                    Registration

                	
                  4

                
	
                  2.6

                	
                  Expenses
                    of Registration

                	
                  5

                
	
                  2.7

                	
                  Registration
                    Procedures

                	
                  5

                
	
                  2.8

                	
                  Indemnification

                	
                  7

                
	
                  2.9

                	
                  Information
                    by Holder

                	
                  8

                
	
                  2.10

                	
                  Rule
                    144 Reporting

                	
                  9

                
	
                  2.11

                	
                  Termination
                    of Rights

                	
                  9

                
	
                  Section
                    3 

                	
                  RIGHT
                    OF PARTICIPATION

                	9
	
                  3.1

                	
                  Right
                    of Participation

                	
                  9

                
	
                  3.2

                	
                  Definition
                    of New Securities

                	
                  9

                
	
                  3.3

                	
                  Notice
                    of Right

                	
                  10

                
	
                  3.4

                	
                  Exercise
                    of Right

                	
                  10

                
	
                  3.5

                	
                  Transfer
                    of Right of Participation

                	
                  10

                
	
                  3.6

                	
                  Rights
                    of Affiliated Holders

                	
                  10

                
	
                  3.7

                	
                  Termination
                    of Right of Participation

                	
                  11

                
	
                  3.8

                	
                  Right
                    of Participation Subject to Solidus Right

                	
                  11

                
	
                  Section
                    4 

                	
                  AFFIRMATIVE
                    COVENANTS OF THE COMPANY

                	11
	
                  4.1

                	
                  Inspection

                	
                  11

                
	
                  4.2

                	
                  Confidentiality

                	
                  11

                
	
                  Section
                    5 

                	
                  MISCELLANEOUS

                	
                  12

                
	
                  5.1

                	
                  Successors
                    and Assigns

                	
                  12

                
	
                  5.2

                	
                  Third
                    Parties

                	
                  12

                
	
                  5.3

                	
                  Governing
                    Law

                	
                  12

                
	
                  5.4

                	
                  Choice
                    of Venue; Waiver of Right to Jury Trial

                	
                  12

                
	
                  5.5

                	
                  Counterparts

                	
                  13

                
	
                  5.6

                	
                  Notices

                	
                  13

                
	
                  5.7

                	
                  Severability

                	
                  13

                
	
                  5.8

                	
                  Amendment
                    and Waiver

                	
                  14

                
	
                  5.9

                	
                  Rights
                    of Holders

                	
                  14

                
	
                  5.10

                	
                  Delays
                    or Omissions

                	
                  14

                
	
                  5.11

                	
                  Attorneys’
                    Fees

                	
                  14

                
	
                  5.12

                	
                  Headings

                	
                  14

                
	
                  5.13

                	
                  Entire
                    Agreement

                	
                  14

                
	
                  5.14

                	
                  Further
                    Assurances

                	
                  15

                
	
                  5.15

                	
                  Transfers
                    of Stock

                	
                  15

                

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXECUTIVE
      COPY

    
 

    INVESTOR
      RIGHTS AGREEMENT

     

    THIS
      INVESTOR RIGHTS AGREEMENT (the “Agreement”)
      is
      entered into as of April 21, 2006 by WinWin Gaming, Inc., a Delaware
      corporation (the “Company”)
      and
      the “Investors”
set
      forth on the signature page hereto.

     

    RECITALS

     

    WHEREAS,
      Investors hold warrants (the “Warrants”)
      to
      purchase shares of common stock, par value $0.01 per share, of the Company
      (the
“Common
      Stock”)
      pursuant to that certain Secured Convertible Note and Warrant Purchase Agreement
      dated as of even date herewith (the “Purchase
      Agreement”)
      and a
      right to convert certain secured convertible promissory notes that shall be
      executed pursuant to the Purchase Agreement into shares of Common Stock and/or
      equity securities of the Company (the “Convertible
      Notes”).

     

    WHEREAS,
      in connection with the Warrants and Convertible Notes, the Company and Investors
      agree to enter into this Agreement as set forth herein.

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the mutual promises and covenants hereinafter
      set
      forth, the parties agree as follows:

     

    SECTION
      1

     

    DEFINITIONS

     

    1.1  Certain
      Definitions.
      As used
      in this Agreement, the following terms shall have the following respective
      meanings:

     

    “Affiliate”
shall
      mean with respect to any Person, any Person which directly or indirectly through
      one or more intermediaries, controls, is controlled by or is under common
      control with such Person.

     

    “Commission”
shall
      mean the Securities and Exchange Commission or any other federal agency at
      the
      time administering the Securities Act.

     

    “Conversion
      Shares”
shall
      mean the Common Stock and/or equity securities of the Company issued or issuable
      upon conversion of the Convertible Notes (or Common Stock issuable upon
      conversion thereof).

     

    “Holder”
shall
      mean any person owning or having the right to acquire Registrable Securities
      or
      any assignee thereof.  

     

    “Person”
shall
      mean an individual, a corporation, a partnership, a trust or unincorporated
      organization or any other entity or organization.

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    The
      terms
“register,”
      “registered”
and
      “registration”
refer
      to a registration effected by preparing and filing a registration statement
      in
      compliance with the Securities Act, and the declaration or ordering of the
      effectiveness of such registration statement.

     

    “Registrable
      Securities”
means
      (a) the Conversion Shares, (b) all shares of Common Stock owned by the
      Investors (assuming full exercise of the Warrants) and (c) any Common Stock
      issued (or issuable upon the conversion or exercise of any warrant, right or
      other security that is issued as) a dividend or other distribution with respect
      to, or in exchange for, or in replacement of, the Common Stock described in
      clauses (a) or (b) hereof.

     

    “Registration
      Expenses”
shall
      mean all reasonable expenses incurred by the Company in complying with
Sections 2.4
      and 2.5
      hereof,
      including, without limitation, all registration, qualification and filing fees,
      printing expenses, escrow fees, fees and disbursements of counsel for the
      Company, blue sky fees and expenses, the expense of any special audits incident
      to or required by any such registration (but excluding the compensation of
      regular employees of the Company which shall be paid in any event by the
      Company) and all reasonable fees and disbursements of one special counsel for
      all of the Holders who elect to include their Registrable Securities in any
      such
      registration.

     

    “Restricted
      Securities”
shall
      mean the securities of the Company required to bear the legend set forth in
      Section 2.2
      hereof.

     

    “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended, or any similar or successor federal
      statute and the rules and regulations of the Commission thereunder, all as
      the
      same shall be in effect at the time.

     

    “Selling
      Expenses”
shall
      mean all underwriting discounts, selling commissions and stock transfer taxes
      applicable to the securities registered by the Holders.

     

    “Shares”
shall
      mean shares of Common Stock of the Company.

     

    SECTION
      2

     

    REGISTRATION
      RIGHTS;

     

    RESTRICTIONS
      ON TRANSFERABILITY

     

    2.1  Restrictions.
      The
      Shares and the Conversion Shares shall not be sold, assigned, transferred or
      pledged except upon the conditions specified in this Agreement, which conditions
      are intended to ensure compliance with the provisions of the Securities Act.
      The
      Investors will cause any proposed purchaser, assignee, transferee or pledgee
      of
      the Shares and the Conversion Shares to agree to take and hold such securities
      subject to the provisions and upon the conditions specified in this
      Agreement.

     

    2.2  Restrictive
      Legend.
      Each
      certificate representing (a) the Shares, (b) the Conversion Shares,
      and (c) any other securities issued in respect of the securities referenced
      in clauses (a) and (b) upon any stock split, stock dividend,
      recapitalization, merger, consolidation or similar event, shall (unless
      otherwise permitted by the provisions of Section 2.3
      below)
      be stamped or otherwise imprinted with a legend in substantially the following
      form (in addition to any legend required under applicable state securities
      laws):

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THE SHARES MAY NOT
      BE
      SOLD, TRANSFERRED OR PLEDGED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
      THEREFROM UNDER SAID ACT.”

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE
      WITH THE TERMS OF AGREEMENTS BETWEEN THE COMPANY AND THE ORIGINAL STOCKHOLDER,
      COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE COMPANY.”

     

    Each
      Holder consents to the Company making a notation on its records and giving
      instructions to any transfer agent of the Restricted Securities in order to
      implement the restrictions on transfer established in this Section 2.

     

    2.3  Notice
      of Proposed Transfers.
      The
      holder of each certificate representing Restricted Securities, by acceptance
      thereof, agrees to comply in all respects with the provisions of this
Section 2.
      Prior
      to any proposed sale, assignment, transfer or pledge of any Restricted
      Securities, unless there is in effect a registration statement under the
      Securities Act covering the proposed transfer, the holder thereof shall give
      written notice to the Company of such holder’s intention to effect such
      transfer, sale, assignment or pledge. Each such notice shall describe the manner
      and circumstances of the proposed transfer, sale, assignment or pledge in
      sufficient detail, whereupon the holder of such Restricted Securities shall
      be
      entitled to transfer such Restricted Securities in accordance with the terms
      of
      the notice delivered by the holder to the Company. Each certificate evidencing
      the Restricted Securities transferred as above provided shall bear, except
      if
      such transfer is made pursuant to Rule 144, the appropriate restrictive legends
      set forth in this Section 2,
      except
      that such certificate shall not bear such restrictive legend if, in the opinion
      of counsel for such holder and the Company, such legend is not required in
      order
      to establish compliance with any provisions of the Securities Act or this
      Agreement.

     

    2.4  Required
      Registration.

     

    (a)  Within
      forty-five (45) days following the Closing (as defined in the Purchase
      Agreement), the Company shall file a registration statement covering the Shares
      underlying the Warrants and the Conversion Shares, and use its commercially
      reasonable best efforts to effect such registration, qualification or compliance
      (including, without limitation, the execution of an undertaking to file
      post-effective amendments, appropriate qualification under applicable blue
      sky
      or other state securities laws and appropriate compliance with applicable
      regulations issued under the Securities Act and any other governmental
      requirements or regulations) and cause such registration statement to be
      declared effective within one hundred twenty (120) days thereafter.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    (b)  In
      the
      event that such registration statement is not declared effective within one
      hundred eighty (180) days following the Closing, the Warrants’ Exercise Price
      (as defined therein) and the Convertible Notes’ Conversion Price (as defined
      therein) 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 Exercise Price to be reduced below $0.40 per
      share.

     

    2.5  Company
      Registration.

     

    (a)  Notice
      of Registration.
      If at
      any time or from time to time, the Company shall determine to register any
      of
      its securities, either for its own account or the account of a security holder
      or holders exercising their respective demand registration rights other than
      (i)
      a registration relating solely to employee benefit plans, or (ii) a registration
      relating solely to a merger, acquisition or exchange, or (iii) a registration
      relating to convertible debt transaction, the Company will:

     

    (i)  promptly
      give to each Holder written notice thereof; and

     

    (ii)  include
      in such registration (and any related qualification under blue sky laws or
      other
      compliance), and in any underwriting involved therein, all the Registrable
      Securities specified in a written request or requests made within twenty (20)
      days after receipt of such written notice from the Company by any Holder, but
      only to the extent that such inclusion will not diminish the number of
      securities included by the Company or by Holders of the Company’s securities who
      have demanded such registration and further subject to the underwriter’s right
      to limit the number of securities included in the registration as set forth
      in
Section 2.5(b) below.

     

    (b)  Underwriting.
      If the
      registration of which the Company gives notice is for a registered public
      offering involving an underwriting, the Company shall so advise the Holders
      as a
      part of the written notice given pursuant to Section 2.5(a)(i).
      In such
      event, the right of any Holder to registration pursuant to this Section 2.5
      shall be
      conditioned upon such Holder’s participation in such underwriting and the
      inclusion of Registrable Securities in the underwriting to the extent provided
      herein. All Holders proposing to distribute their securities through such
      underwriting shall (together with the Company and the other Holders distributing
      their securities through such underwriting) enter into an underwriting agreement
      in customary form with the managing underwriter selected for such underwriting
      by the Company (or by the Holders who have demanded such registration, as the
      case may be). Notwithstanding any other provision of this Section 2.5,
      if the
      managing underwriter determines in its sole discretion that marketing factors
      require a limitation of the number of shares to be underwritten, the managing
      underwriter may limit the number of Registrable Securities to be included in
      the
      registration and underwriting, provided that the managing underwriter shall
      first limit the number of shares underwritten of all stockholders other than
      Holders participating in such registration on a pro rata basis based on the
      total number of securities entitled to be included in such registration, and
      second limit the shares of any participating Holders. Alternatively, the
      managing underwriter may determine that all or certain Registrable Securities
      requesting registration must be excluded or limited in order not to impair
      the
      pricing of the registration and underwriting. Such exclusion or limitation
      shall
      be in the sole discretion of the managing underwriter and shall be applied
      pro
      rata to all holders of Registrable Securities requesting registration. To
      facilitate the allocation of shares in accordance with the above provisions,
      the
      Company or the underwriters may round the number of shares allocated to any
      Holder or other holder to the nearest one hundred (100) shares. If any Holder
      or
      other holder disapproves of the terms of any such underwriting, he or she may
      elect to withdraw therefrom by written notice to the Company and the managing
      underwriter. Any securities excluded or withdrawn from such underwriting shall
      be withdrawn from such registration, and shall not be transferred in a public
      distribution prior to ninety (90) days after the date of the final prospectus
      included in the registration statement relating thereto. Notwithstanding the
      foregoing, the Holder’s right to include Registrable Securities in an
      underwritten offering shall be subject to the provisions of a registration
      rights agreement that is to be entered into between the Company and Solidus
      Networks, Inc., in the form attached to that certain Amended and Restated Joint
      Venture Agreement, dated as of April 14, 2006 (the “Joint Venture Agreement”),
      between Company and Solidus Networks, Inc. 

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (c)  Right
      to Terminate Registration.
      The
      Company shall have the right to terminate or withdraw any registration initiated
      by it under this Section 2.5
      prior to
      the effectiveness of such registration, whether or not any Holder has elected
      to
      include securities in such registration. 

     

    2.6  Expenses
      of Registration.
      All
      Registration Expenses incurred in connection with registrations pursuant to
      Sections 2.4
      and 2.5
      shall be
      borne by the Company. Unless otherwise stated, all Selling Expenses relating
      to
      securities registered on behalf of the Holders shall be borne by the Holders
      of
      the registered securities included in such registration pro rata on the basis
      of
      the number of shares so registered.

     

    2.7  Registration
      Procedures.
      In the
      case of each registration, qualification or compliance effected by the Company
      pursuant to this Section 2,
      the
      Company will keep each Holder advised in writing as to the initiation of each
      registration, qualification and compliance and as to the completion thereof.
      The
      Company will:

     

    (a)  Prepare
      and file with the Commission a registration statement with respect to the
      Registrable Securities and use its commercially reasonable efforts to cause
      such
      registration statement to become and remain effective for at least one hundred
      twenty (120) days or until the distribution described in the registration
      statement has been completed; provided, however, that such one hundred twenty
      (120) day period shall be extended for a period of time equal to the period
      that
      the Holder refrains from selling any securities included in such registration
      at
      the request of the Company or an underwriter of the Common Stock (or any other
      securities) of the Company, provided that Rule 415, or any successor rule under
      the Securities Act, permits an offering on a continuous or delayed basis, and
      provided further that applicable rules under the Securities Act governing the
      obligation to file a post-effective amendment permit, in lieu of filing a
      post-effective amendment which includes (A) any prospectus required by
      Section 10(a)(3) of the Securities Act or (B) reflects facts or events
      representing a material or fundamental change in the information set forth
      in
      the registration statement, the incorporation by reference of information
      required to be included in (a) and (b) above to be contained in
      periodic reports filed pursuant to Section 13 or 15(d) of the
      Securities Exchange Act of 1934, as amended (the “Exchange
      Act”)
      in the
      registration statement;

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    (b)  Furnish
      to the Holders participating in such registration and to the underwriters of
      the
      securities being registered such reasonable number of copies of the registration
      statement and amendments and supplements thereto, preliminary prospectus, final
      prospectus and such other documents as such underwriters may reasonably request
      in order to facilitate the public offering of such securities;

     

    (c)  Cause
      all
      such Registrable Securities registered hereunder to be listed on each securities
      exchange on which similar securities issued by the Company are then
      listed;

     

    (d)  Notify
      each Holder of Registrable Securities covered by such registration statement
      at
      any time when a prospectus relating thereto is required to be delivered under
      the Securities Act of the happening of any event as a result of which the
      prospectus included in such registration statement, as then in effect, includes
      an untrue statement of material fact or omits to state a material fact required
      to be stated therein or necessary to make the statements therein not misleading
      in light of the circumstances then existing;

     

    (e)  Provide
      transfer agent and registrar for all Registrable Securities registered pursuant
      to such registration statement and a CUSIP number for all such Registrable
      Securities, in each case not later than effective date of such registration;
      

     

    (f)  Prepare
      and file amendments of or supplements to the registration statement or
      prospectus necessary to comply with the Securities Act with respect to
      disposition of the Registrable Securities covered by such registration
      statement;

     

    (g)  Use
      all
      commercially reasonable efforts to register and qualify the securities covered
      by such registration statement under such other securities or Blue Sky laws
      of
      such jurisdictions as shall be reasonably requested by the Holders, provided
      that the
      Company shall not be required in connection therewith or as a condition thereto
      to qualify to do business or to file a general consent to service of process
      in
      any such states or jurisdictions unless the Company is already qualified to
      do
      business or subject to service of process in that jurisdiction;

     

    (h)  Use
      its
      best efforts to furnish, at the request of any Holder requesting registration
      of
      Registrable Securities pursuant to this Section
      2.7,
      on the
      date that such Registrable Securities are delivered to the underwriters for
      sale
      in connection with a registration pursuant to this Section 2.7,
      if such
      securities are being sold through underwriters, (i) an opinion, dated such
      date, of the counsel representing the Company for the purposes of such
      registration, in form and substance as is customarily given to underwriters
      in
      an underwritten public offering, addressed to the underwriters and (ii) a
      letter dated such date, from the independent certified public accountants of
      the
      Company, in form and substance as is customarily given by independent certified
      public accountants to underwriters in an underwritten public offering, addressed
      to the underwriters; 

     

    (i)  Make
      generally available to its security holders, and to deliver to each Holder
      participating in the registration statement, an earnings statement of the
      Company that will satisfy the provisions of Section 11(a) of the Securities
      Act
      covering a period of 12 months beginning after the effective date of such
      registration statement as soon as reasonably practicable after the termination
      of such 12-month period; and

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    (j)  In
      the
      event of any underwritten public offering, enter into and perform its
      obligations under an underwriting agreement, in usual and customary form, with
      the managing underwriter of such offering. Each Holder and other security holder
      participating in such underwriting shall also enter into and perform its
      obligations under such an agreement.

     

    2.8  Indemnification.

     

    (a)  The
      Company will indemnify each Holder, each of its officers and directors and
      partners, and each person controlling such Holder within the meaning of
      Section 15 of the Securities Act, with respect to which registration,
      qualification or compliance has been effected pursuant to this Section 2,
      and
      each underwriter, if any, and each person who controls any underwriter within
      the meaning of Section 15 of the Securities Act, against all expenses,
      claims, losses, damages or liabilities (or actions in respect thereof),
      including any of the foregoing incurred in settlement of any litigation,
      commenced or threatened, arising out of or based on any untrue statement (or
      alleged untrue statement) of a material fact contained in any registration
      statement, prospectus, offering circular or other document, or any amendment
      or
      supplement thereto, incident to any such registration, qualification or
      compliance, or based on any omission (or alleged omission) to state therein
      a
      material fact required to be stated therein or necessary to make the statements
      therein, in light of the circumstances in which they were made, not misleading,
      or any violation by the Company of any rule or regulation promulgated under
      the
      Securities Act, the Exchange Act or any state securities laws applicable to
      the
      Company in connection with any such registration, qualification or compliance,
      and the Company will reimburse each such Holder, each of its officers and
      directors, and each person controlling such Holder, each such underwriter and
      each person who controls any such underwriter, for any legal and any other
      expenses reasonably incurred in connection with investigating, preparing or
      defending any such claim, loss, damage, liability or action, as such expenses
      are incurred, provided that the Company will not be liable in any such case
      to
      the extent that any such claim, loss, damage, liability or expense arises out
      of
      or is based on any untrue statement or omission or alleged untrue statement
      or
      omission, made in reliance upon and in conformity with written information
      furnished to the Company by an instrument duly executed by such Holder,
      controlling person or underwriter and stated to be specifically for use
      therein.

     

    (b)  Each
      Holder will, if Registrable Securities held by such Holder are included in
      the
      securities as to which such registration, qualification or compliance is being
      effected, indemnify the Company, each of its directors and officers, each
      underwriter, if any, of the Company’s securities covered by such a registration
      statement, each person who controls the Company or such underwriter within
      the
      meaning of Section 15 of the Securities Act, and each other such Holder,
      each of its officers and directors and each person controlling such Holder
      within the meaning of Section 15 of the Securities Act, against all claims,
      losses, damages and liabilities (or actions in respect thereof) arising out
      of
      or based on any untrue statement (or alleged untrue statement) of a material
      fact contained in any such registration statement, prospectus, offering circular
      or other document, or any omission (or alleged omission) to state therein a
      material fact required to be stated therein or necessary to make the statements
      therein, in light of the circumstances in which they were made, not misleading,
      and will reimburse the Company, such Holders, such directors, officers, persons,
      underwriters or control persons for any legal or any other expenses reasonably
      incurred in connection with investigating or defending any such claim, loss,
      damage, liability or action, as such expenses are incurred, in each case to
      the
      extent, but only to the extent, that such untrue statement (or alleged untrue
      statement) or omission (or alleged omission) is made in such registration
      statement, prospectus, offering circular or other document in reliance upon
      and
      in conformity with written information furnished to the Company by an instrument
      duly executed by such Holder and stated to be specifically for use therein;
      provided however that in no event shall any indemnity under this Section 2.8(b) exceed
      the net proceeds from the offering received by such Holder.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    (c)  If
      the
      indemnification provided for in this Section 2.8
      is held
      by a court of competent jurisdiction to be unavailable to a party entitled
      to
      indemnification under this Section 2.8
      (the
“Indemnified
      Party”)
      with
      respect to any loss, liability, claim, damage or expense referred to herein,
      then the party required to provide indemnification (the “Indemnifying
      Party”),
      in
      lieu of indemnifying such Indemnified Party hereunder, instead shall contribute
      to the amount paid or payable by such Indemnified Party as a result of such
      loss, liability, claim, damage or expense in such proportion as is appropriate
      to reflect the relative fault of the Indemnifying Party on the one hand and
      of
      the Indemnified Party on the other in connection with the statements or
      omissions that resulted in such loss, liability, claim, damage or expense,
      as
      well as any other relevant equitable considerations. The relative fault of
      the
      Indemnifying Party and of the Indemnified Party shall be determined by reference
      to, among other things, whether the untrue or alleged untrue statement of a
      material fact or the omission to state a material fact relates to information
      supplied by the Indemnifying Party or by the Indemnified Party and the parties’
relative intent, knowledge, access to information, and opportunity to correct
      or
      prevent such statement or omission.

     

    (d)  Each
      Indemnified Party shall give notice to the Indemnifying Party promptly after
      such Indemnified Party has actual knowledge of any claim as to which indemnity
      may be sought, and shall permit the Indemnifying Party to assume the defense
      of
      any such claim or any litigation resulting therefrom, provided that counsel
      for
      the Indemnifying Party, who shall conduct the defense of such claim or
      litigation, shall be approved by the Indemnified Party (whose approval shall
      not
      unreasonably be withheld), and the Indemnified Party may participate in such
      defense at such party’s expense; provided, however, that an Indemnified Party
      (together with all other Indemnified Parties which may be represented without
      conflict by one counsel) shall have the right to retain its own separate counsel
      with the reasonable fees and expenses to be paid by the Indemnifying Party
      if
      the Indemnified Party reasonably determines that representation of such
      Indemnified Party would be appropriate due to actual or potential differing
      interests between such Indemnified Party and any other party represented by
      such
      counsel in such proceeding. The failure of any Indemnified Party to give notice
      as provided herein shall not relieve the Indemnifying Party of its obligations
      under this Section 2
      unless
      the failure to give such notice is materially prejudicial to an Indemnifying
      Party’s ability to defend such action. No Indemnifying Party, in the defense of
      any such claim or litigation, shall, except with the consent of each Indemnified
      Party, consent to entry of any judgment or enter into any settlement which
      does
      not include as an unconditional term thereof the giving by the claimant or
      plaintiff to such Indemnified Party of a release from all liability in respect
      of such claim or litigation.

     

    2.9  Information
      by Holder.
      The
      Holder or Holders of Registrable Securities included in any registration shall
      furnish to the Company such information regarding such Holder or Holders, the
      Registrable Securities held by them and the distribution proposed by such Holder
      or Holders as the Company may reasonably request in writing and as shall be
      required in connection with any registration, qualification or compliance
      referred to in this Section 2.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    2.10  Rule
      144 Reporting.
      With a
      view to making available the benefits of certain rules and regulations of the
      Commission which may at any time permit the sale of the Restricted Securities
      to
      the public without registration, after such time as a public market exists
      for
      the Common Stock of the Company, the Company agrees to use its commercially
      reasonable best efforts to:

     

    (a)  Make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144 under the Securities Act, at all times after the effective date that
      the Company becomes subject to the reporting requirements of the Exchange
      Act;

     

    (b)  File
      with
      the Commission in a timely manner all reports and other documents required
      of
      the Company under the Securities Act and the Exchange Act (at any time after
      it
      has become subject to such reporting requirements); and

     

    (c)  So
      long
      as Investors owns any Restricted Securities, to furnish to the Investors
      forthwith upon request a written statement by the Company as to its compliance
      with the reporting requirements of said Rule 144 (at any time after ninety
      (90)
      days after the effective date of the first registration statement filed by
      the
      Company for an offering of its securities to the general public) and of the
      Securities Act and the Exchange Act (at any time after it has become subject
      to
      such reporting requirements), a copy of the most recent annual or quarterly
      report of the Company, and such other reports and documents of the Company
      and
      other information in the possession of or reasonably obtainable by the Company
      as an Investors may reasonably request in availing itself of any rule or
      regulation of the Commission allowing an Investors to sell any such securities
      without registration.

     

    2.11  Termination
      of Rights.
      The
      rights of any particular Holder to cause the Company to register securities
      under Sections 2.4
      and 2.5
      shall
      terminate with respect to such Holder on the date when such Holder can sell
      all
      of its Registrable Securities in a single transaction pursuant to Rule 144
      of
      the Securities Act.

     

    SECTION
      3  

     

    RIGHT
      OF PARTICIPATION

     

    3.1  Right
      of Participation.
      Subject
      to the terms and conditions contained in this Section 3,
      the
      Company hereby grants to each Investor the right of participation (the
“Right
      of Participation”)
      to
      purchase its Participation Amount (as defined below) of any New Securities
      (as
      defined in Section 3.2)
      which
      the Company may, from time to time, propose to sell and issue. Investor’s
“Participation
      Amount”
for
      purposes of this Section 3
      is equal
      to (x) the face value of the Convertible Notes originally purchased by such
      Investor, divided by (y) the price per share paid or proposed to be paid for
      the
      New Securities. 

     

    3.2  Definition
      of New Securities.
      Except
      as set forth below, “New
      Securities”
shall
      mean any equity or equity-linked securities of the Company, including Common
      Stock, whether authorized or not, and rights, options or warrants to purchase
      said shares of Common Stock, and securities of any type whatsoever that are,
      or
      may become, convertible into said shares of Common Stock. Notwithstanding the
      foregoing, “New Securities” does not include:

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    (a)  the
      Conversion Shares,

     

    (b)  all
      shares of Common Stock issued or deemed issued to officers, directors,
      consultants, advisors or employees of this Company, pursuant to a stock option
      plan approved by the Board of Directors of the Company,

     

    (c)  stock
      issued in connection with any stock split, stock dividend or recapitalization
      by
      the Company, 

     

    (d)  stock
      issued upon any Investor’s exercise of the Warrants,

     

    (e)  equity
      or
      equity-linked securities issued in connection with a strategic transaction
      approved by the Board of Directors of the Company;

     

    (f)  equity
      or
      equity-linked securities issued pursuant to a loan arrangement or debt financing
      from a bank, equipment lessor or similar financial institution approved by
      the
      Board of Directors of the Company; 

     

    (g)  upon
      the
      written consent of all of the holders of outstanding shares of Registrable
      Securities that expressly states that the right of right of participation in
      this Section 3 shall not apply to such New Securities; 

     

    (h)  upon
      the
      exercise, exchange or conversion of any options or other convertible securities
      outstanding as of the date hereof; and

     

    (i)  pursuant
      to the terms of, or contemplated by, the Joint Venture Agreement or any exhibit
      or schedule thereto.

     

    3.3  Notice
      of Right.
      In the
      event the Company proposes to undertake an issuance of New Securities, it shall
      give each Investor written notice of its intention, describing the type of
      New
      Securities and the price and terms upon which the Company proposes to issue
      the
      same. The Investors shall have thirty (30) days from the date of receipt of
      any
      such notice to agree to purchase shares of such New Securities (up to the amount
      referred to in Section
      3.1),
      for
      the price and upon the terms specified in the notice, by giving written notice
      to the Company and stating therein the quantity of New Securities to be
      purchased. 

     

    3.4  Exercise
      of Right.
      If any
      Investor exercises its Right of Participation hereunder, the closing of the
      purchase of the New Securities with respect to which such right has been
      exercised shall take place as soon as practicable after the Investor gives
      notice of such interest.

     

    3.5  Transfer
      of Right of Participation.
      The
      Right of Participation granted under Section 3
      of this
      Agreement may not be assigned or transferred.

     

    3.6  Rights
      of Affiliated Holders.
      For
      purposes of this Section 3,
      Holders
      who are Affiliates of one or more other Holders shall, at the election of a
      Holder and one or more such Affiliates, be treated as a group (a “Holder
      Group”).
      Members of a Holder Group shall have the right to reallocate the rights granted
      by this Section 3
      among
      themselves as they determine.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    3.7  Termination
      of Right of Participation.
      The
      Right of Participation granted under this Section 3
      of this
      Agreement shall terminate on and be of no further force or effect upon the
      first
      anniversary of the date hereof. 

     

    3.8  Right
      of Participation Subject to Solidus Right

     

    .
      The
      right of participation granted hereunder is subject to the right of first offer
      that will be granted to Solidus Networks, Inc. upon the execution of the
      proposed registration rights agreement, a form of which is attached to the
      Joint
      Venture Agreement. 

     

    SECTION
      4 

     

    AFFIRMATIVE
      COVENANTS OF THE COMPANY

     

    The
      Company hereby covenants and agrees as follows:

     

    4.1  Inspection.
      The
      Company shall permit each Holder, at such Holder’s expense, to visit and inspect
      the Company’s properties, to examine its books of account and records and to
      discuss the Company’s affairs, finances and accounts with its officers, all at
      such reasonable times as may be requested by the Holder. 

     

    4.2  Confidentiality.
      Each
      Holder agrees and will cause any representative of such Holder to hold in
      confidence and trust and not use or disclose any information provided to or
      learned by it in connection with its rights under this Section
      4
      that is
      identified in writing as confidential (the “Confidential
      Information”),
      except that such Holder may disclose such information to any partner, member,
      subsidiary or parent of such Holder for the purpose of evaluating its investment
      in the Company as long as (a) such partner, member, subsidiary or parent is
      advised of the confidentiality provisions of this Section
      4.2
      and (b)
      such Holder uses its commercially reasonable best efforts to ensure that such
      partner, member, subsidiary or parent holds such information in confidence
      and
      trust and will not use or disclose any information provided to or learned by
      it
      except as required by law. Notwithstanding the above, this Section
      4.2
      shall
      not apply to any information which any such Holder can prove:

     

    (a)
      was in
      the public domain at the time it was disclosed or has entered the public domain
      through no fault of such Holder;

     

    (b)
      was
      known
      to such Holder, without restriction, at the time of disclosure, as demonstrated
      by files in existence at the time of disclosure;

     

    (c)
      is
      disclosed with the prior written approval of the Company;

     

    (d)
      was
      independently developed by such Holder without any use of the Confidential
      Information and by employees of such Holder who have not had access to the
      Confidential Information, as demonstrated by files created at the time of such
      independent development;

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    (e)
      becomes
      known to such Holder, without restriction, from a source other than the Company
      without breach of this Section
      4.2
      by such
      Holder and otherwise not in violation of the Company’s rights;

     

    (f)
      is
      disclosed generally to third parties by the Company without restrictions similar
      to those contained in this Section
      4.2;
      or

     

    (g)
      is
      disclosed pursuant to the order or requirement of a court, administrative
      agency, or other governmental body; provided, however, that such Holder shall
      provide prompt notice of such court order or requirement to the Company to
      enable the Company to seek a protective order or otherwise prevent or restrict
      such disclosure.

     

    SECTION
      5  

     

    MISCELLANEOUS

     

    5.1  Successors
      and Assigns.
      Except
      as otherwise provided herein, the terms and conditions of this Agreement shall
      inure to the benefit of and be binding upon the respective successors, assigns,
      heirs, executors and administrators and permitted transferees of the parties
      hereto.

     

    5.2  Third
      Parties.
      Nothing
      in this Agreement, express or implied, is intended to confer upon any party,
      other than the parties hereto, and their respective successors and assigns,
      any
      rights, remedies, obligations or liabilities under or by reason of this
      Agreement, except as expressly provided herein.

     

    5.3  Governing
      Law.
      This
      Agreement shall be governed by and construed under the laws of the State of
      New
      York as
      applied to agreements entered into and performed in the State of New York solely
      by residents thereof without reference to principles of conflicts of laws or
      choice of laws.

     

    5.4  Choice
      of Venue; Waiver of Right to Jury Trial.
      

     

    (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
      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 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.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    (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.

     

    5.5  Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    5.6  Notices.
      Any
      notice required or permitted by this Agreement shall be in writing and shall
      be
      deemed effectively given the earlier of (i) when received, (ii) when delivered
      personally, (iii) one (1) business day after being delivered by facsimile (with
      receipt of appropriate confirmation), (iv) one (1) business day after being
      deposited with an overnight courier service or (v) four (4) days after being
      deposited in the U.S. mail, First Class with postage prepaid, and addressed
      to
      the parties at the addresses provided to the Company (which the Company agrees
      to disclose to the other parties upon request) or such other address as a party
      may request by notifying the other in writing.

     

    5.7  Severability.
      If one
      or more provisions of this Agreement are held to be unenforceable under
      applicable law, portions of such provisions, or such provisions in their
      entirety, to the extent necessary, shall be severed from this Agreement, and
      the
      balance of this Agreement shall be enforceable in accordance with its
      terms.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    5.8  Amendment
      and Waiver.
      Any
      provision of this Agreement may be amended with the written consent of the
      Company and the Holders of a majority of the outstanding shares of the
      Registrable Securities. Any amendment or waiver effected in accordance with
      this
      paragraph shall be binding upon each Holder of Registrable Securities and
      the Company but in no event shall any amendment or waiver materially alter
      the
      obligations or rights of any Holder, except upon the written consent of such
      Holder. In the event that an underwriting agreement is entered into between
      the
      Company and any Holder, and such underwriting agreement contains terms differing
      from this Agreement, as to any such Holder the terms of such underwriting
      agreement shall govern. 

     

    5.9  Rights
      of Holders.
      Each
      Holder of Registrable Securities shall have the right to exercise or refrain
      from exercising any right or rights that such Holder may have by reason of
      this
      Agreement, including, without limitation, the right to consent to the waiver
      or
      modification of any obligation under this Agreement, and such Holder shall
      not
      incur any liability to any other holder of any securities of the Company as
      a
      result of exercising or refraining from exercising any such right or
      rights.

     

    5.10  Delays
      or Omissions.
      No
      delay or omission to exercise any right, power or remedy accruing to any party
      to this Agreement, upon any breach or default of the other party, shall impair
      any such right, power or remedy of such non-breaching party nor shall it be
      construed to be a waiver of any such breach or default, or an acquiescence
      therein, or of or in any similar breach or default thereafter occurring; nor
      shall any waiver of any single breach or default be deemed a waiver of any
      other
      breach or default theretofore or thereafter occurring. Any waiver, permit,
      consent or approval of any kind or character on the part of any party of any
      breach or default under this Agreement, or any waiver on the part of any party
      of any provisions or conditions of this Agreement, must be made in writing
      and
      shall be effective only to the extent specifically set forth in such
      writing.

     

    5.11  Attorneys’
      Fees.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and necessary disbursements in addition to any other relief to
      which
      such party may be entitled.

     

    5.12  Headings.
      The
      headings and captions used in this Agreement are used for convenience only
      and
      are not to be considered in construing or interpreting this Agreement. All
      references in this Agreement to sections, paragraphs, exhibits and schedules
      shall, unless otherwise provided, refer to sections and paragraphs hereof
      and exhibits and schedules attached hereto, all of which are incorporated herein
      by this reference.

     

    5.13  Entire
      Agreement.
      This
      Agreement constitutes the entire understanding and agreement of the parties
      with
      respect to the subject matter hereof and supersedes all prior negotiations,
      correspondence, agreements, understandings, duties or obligations among the
      parties with respect to the subject matter hereof.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    5.14  Further
      Assurances.
      From
      and after the date of this Agreement, upon the request of a party, the other
      parties shall execute and deliver such instruments, documents or other writings
      as may be reasonably necessary or desirable to confirm and carry out and to
      effectuate fully the intent and purposes of this Agreement.

     

    5.15  Transfers
      of Stock.
      Investor may transfer any or all of its Common Stock, provided that such
      transferee or transferees are (i) “accredited investors” as defined in
Section
      1.11(a)(ii)
      hereof,
      (ii) are financial institutions or have a similar level of experience as
      Investor in investing in private debt and equity securities, subject to
      compliance with applicable securities laws, and (iii) such transfer is effected
      in compliance with all applicable state and federal securities
      laws.

     

    THE
      REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the date first
      above written.

     

    
      	 	 	 
	 	
              COMPANY:

            
	 	 
	 	WINWIN GAMING, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Patrick
              Rogers
	 	
              
Name:
              Patrick Rogers
	 	Title:
              President & CEO

    

     

    
      
        
        

      

      
        [SIGNATURE
          PAGE OF INVESTOR RIGHTS AGREEMENT]

        
          

        

      

      
        
        

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the date first
      above written.

    
       

      INVESTORS:

    

    
      	 	 	 	 	 
	By:	/s/
              Michael Clofine	Address: 	 	
              280
                Park Avenue

              5th
                Floor Bast.

              New
                York, NY 10017

            
	 	
              

            	 	 	
              

            
	Print Name:	Calico
              Capital Group	 	 	 
	 	
              
 	 	 	 

    

    
 

    
      
        
        

      

      
        
          [SIGNATURE
            PAGE OF INVESTOR RIGHTS AGREEMENT]

        

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the date first
      above written.

     

    INVESTORS:

    
      
        	 	 	 	 	 
	By:	/s/
                Trevor Colby	Address: 	 	
                1512
                  Montana Avenue

                Santa Monica, CA 90403

              
	 	
                

              	 	 	
                

              
	Print Name:	Trevor Colby	 	 	 
	 	
                
 	 	 	 

      

      
 

      
        
          
          

        

        
          
            [SIGNATURE
              PAGE OF INVESTOR RIGHTS AGREEMENT]

          

          
            

          

        

        
          
          

        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the date first
      above written.

     

    
      INVESTORS:

      
        
          	 	 	 	 	 
	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

                
	 	
                  
 	 	 	
                  
 

        

        

        
          
            
            

          

          
            
              [SIGNATURE
                PAGE OF INVESTOR RIGHTS AGREEMENT]

            

            
              

            

          

          
            
            

          

        

      

    

     

    
       

       

      IN
        WITNESS WHEREOF, the parties have executed this Agreement as of the date
        first
        above written.

       

      INVESTORS:

      
        
          	 	 	 	 	 
	By:	/s/
                  Mark Tunnery	Address: 	 	
                  11111
                    Santa Monica Blvd.

                  Suite 1122

                  Los Angeles, CA 90025

                
	 	
                  

                	 	 	
                  

                
	Print Name:	MLA Capital, Inc.	 	 	 
	 	
                  
 	 	 	 

        

        
 

        
          
            
            

          

          
            
              [SIGNATURE
                PAGE OF INVESTOR RIGHTS AGREEMENT]

            

            
              

            

          

          
            
            

          

        

      

    

     

    
       

       

      IN
        WITNESS WHEREOF, the parties have executed this Agreement as of the date
        first
        above written.

       

      INVESTORS:

      
        
          	 	 	 	 	 
	By:	/s/
                  N.J. Fiore	Address: 	 	
                  763 Oppen Road

                  Ridgewood, NJ 07450

                
	 	
                  

                	 	 	
                  

                
	Print Name:	Ridgewood Ltd.	 	 	 
	 	
                  
 	 	 	 

        

        
 

        
          
            
            

          

          
            
              [SIGNATURE
                PAGE OF INVESTOR RIGHTS AGREEMENT]Unassociated Document

    INTERCREDITOR
      AND SUBORDINATION AGREEMENT

     

    This
      Subordination Agreement (“Agreement”)
      dated
      as of April 21, 2006, is entered into by and among the holders of secured
      convertible notes of the Company listed on Schedule
      A
      hereto
      (collectively, “Subordinated
      Creditors”),
      WinWin
      Gaming, Inc.,
      a
      Delaware corporation (the “Company”),
      and
Solidus
      Networks, Inc.,
      a
      Delaware corporation (“Senior
      Creditor”).

     

    Recitals

     

    A. Company
      and Senior Creditor have entered into that certain Amended and Restated Secured
      Promissory Note dated as of January 17, 2006,
      as
      amended
      on April
      ___, 2006 (the “Senior
      Note”)
      pursuant
      to which Senior Creditor has agreed to extend and make available to Company
      certain advances of money upon the terms and conditions set forth in the Senior
      Note and the other loan documents related to the Senior Note.
      In
      addition, Company has issued to Senior Creditor that certain Security Agreement
      (the “Senior Security
      Agreement”)
      dated
      as of September 30, 2005, as amended on April ___, 2006 under the Senior Note,
      (the Senior Note, the Senior Security Agreement, all
      as
      amended, modified or supplemented from time to time,
      including amendments, modifications, supplements and restatements thereof giving
      effect to increases, renewals, extensions, refundings, deferrals,
      restructurings, replacements or refinancings of, or additions to, the
      arrangements provided in such agreements or instruments (whether provided by
      the
      original Senior Creditor under such agreements, by successors or assigns or
      by
      Refinancing Senior Lenders (as defined in Section
      15
      hereof)),
      together with all instruments and documents executed in connection therewith,
      are referred to herein as the “Senior
      Creditor Documents”).

     

    B. Company
      has issued to Subordinated Creditors a Secured Convertible Promissory Note
      dated
      April __, 2006 in the aggregate principal amount of up to $2,000,000, a copy
      of
      which is attached hereto as Exhibit
      A
      (the
“Subordinated
      Note”)
      and as
      purchased by the Subordinated Creditors as set forth on Schedule
      A
      hereto,
      evidencing a certain loan made by Subordinated Creditors to Company. The
      Subordinated Note is secured by a Security Agreement (the “Subordinated
      Security Agreement”)
      among
      Subordinated Creditors and Company (Subordinated Note, Subordinated Security
      Agreement, all
      as
      amended, modified or supplemented from time to time,
      including amendments, modifications, supplements and restatements thereof giving
      effect to increases, renewals, extensions, refundings, deferrals,
      restructurings, replacements or refinancings of, or additions to, the
      arrangements provided in such agreements or instruments,
      together with all instruments and documents executed in connection therewith,
      are referred to herein as the “Subordinated
      Creditors Documents”).

     

    C. Senior
      Creditor requires that Subordinated Creditors subordinate, and Subordinated
      Creditors has agreed to subordinate, the repayment of the Subordinated Debt
      (as
      defined below) and Subordinated Creditors’s rights and remedies relating thereto
      under the Subordinated Creditors Documents to the payment and performance in
      full of the Senior Debt (as defined below) and Senior Creditor’s rights and
      remedies relating thereto under the Senior Creditor Documents.

     

    D. Senior
      Creditor requires that Subordinated Creditors subordinate, and Subordinated
      Creditors has agreed to subordinate, the security interest and lien of
      Subordinated Creditors in and to the Collateral (as defined in the Subordinated
      Security Agreement and referred to herein as “Collateral”)
      to the
      security interest and lien of Senior Creditor in the Collateral, and to Senior
      Creditor’s rights and remedies as a secured party related thereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    E. Senior
      Creditor and Subordinated Creditors desire to set forth their respective rights
      with respect to the obligations, liabilities and indebtedness now or hereafter
      owing to each of them by Company.

     

    Agreement

     

    Now,
      Therefore,
      for
      good
      and valuable consideration, receipt of which is hereby acknowledged, and
      intending to be legally bound, each of Company, Senior Creditor and Subordinated
      Creditors hereby agree as follows:

     

    1.  Definitions.
      Unless
      otherwise defined herein, the following terms shall have the following meanings
      (such meanings being equally applicable to both the singular and plural forms
      of
      the terms defined):

     

    “Bankruptcy
      Code”
means
      the Bankruptcy Code of 1978, as amended, as codified under the Title 11 of
      the
      United States Code, and the Bankruptcy Rules promulgated thereunder, as the
      same
      may be in effect from time to time.

     

    “Senior
      Debt”
means
      (i) all indebtedness and other obligations of Company in favor of Senior
      Creditor under the Senior Creditor Documents, including without limitation,
      the
      principal amount of all indebtedness outstanding from time to time under the
      Senior Creditor Documents, provided that, for all purposes of this Agreement,
      the aggregate principal amount of all indebtedness outstanding from time to
      time
      under the Senior Creditor Documents shall be deemed not to exceed the aggregate
      principal amount of such indebtedness outstanding on the date of this Agreement
      , and (ii) all amounts due or to become due relating to the foregoing,
      including, without limitation, all interest, facility, commitment, prepayment
      and other fees, commissions, fees and costs of enforcement, amounts reimbursable
      and other liabilities (including interest, fees, professional fees and costs
      which would become due but for the operation of the Bankruptcy Code).

     

    “Subordinated
      Debt”
means
      (i) all indebtedness and other obligations of Company in favor of Subordinated
      Creditors under the Subordinated Creditors Documents and (ii) all amounts
      due or to become due relating to the foregoing, including, without limitation,
      all interest, facility, commitment, prepayment and other fees, commissions,
      fees
      and costs of enforcement, amounts reimbursable and other liabilities (including
      interest, fees, professional fees and costs which would become due but for
      the
      operation of the Bankruptcy Code). 

     

    2.  Subordination;
      Subrogation.

     

    (a)  Payment
      Subordination.
      On the
      terms and conditions set forth below, the payment and performance of the
      Subordinated Debt, and Subordinated Creditors’s right to receipt thereof, is and
      shall be expressly subordinate and junior in time and right of payment to the
      prior indefeasible payment and performance in full of the Senior Debt. Each
      reference in this Agreement to “payment and performance in full,” “paid and
      performed in full” or words to similar effect shall not be deemed to have
      occurred until (i) the termination of all commitments to extend credit that
      would constitute Senior Debt, (ii) the payment and performance in full in cash
      or by other means acceptable to the Senior Creditor of all Senior Debt,
      including without limitation principal, interest, fees, costs (including without
      limitation post-petition interest, fees and costs even if such interest, fees
      and costs are not an allowed claim enforceable against Company in a bankruptcy
      case under applicable law, but excluding unasserted contingent obligations)
      and
      premium, (if any) and (iii) more than 90 days shall have expired after all
      payments described in the foregoing clause (ii) shall have been made. Subject
      to
      and except as set forth in Sections 3,
      4
      and
      6
      below,
      Subordinated Creditors will not ask, demand, sue for, take or receive from
      Company, by setoff, banker’s lien or in any other manner, the whole or any part
      of any monies which may now or hereafter be owing by Company, or any successor
      or assign of Company, including, without limitation, any receiver or trustee
      (the term “Company”
for
      all
      purposes herein shall include any such successor or assign of Company) to
      Subordinated Creditors on account of the Subordinated Debt, unless and until
      all
      Senior Debt, existing or hereafter arising, shall have been paid and performed
      in full. 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (b)  Subrogation.
      If cash
      or other property otherwise payable or deliverable to Subordinated Creditors
      shall have been applied pursuant to this Agreement to the payment of the Senior
      Debt, and if the Senior Debt shall have been paid and performed in full, then
      and in such case, Subordinated Creditors shall be subrogated to any rights
      of
      Senior Creditor to receive further payments or distributions applicable to
      the
      Senior Debt until the Subordinated Debt shall have been paid in full. No such
      payments or distributions received by Subordinated Creditors by reason of such
      subrogation, of cash or other property which would otherwise be paid or
      distributed to Senior Creditor, shall, as between Company and its creditors
      other than Senior Creditor, on the one hand, and Subordinated Creditors on
      the
      other hand, be deemed to be a payment by Company on account of the Subordinated
      Debt.

     

    (c)  Lien
      Subordination.
      The
      security interest and liens granted to Senior Creditor by Company for the
      purpose of securing the Senior Debt, including without limitation, the
      Collateral, whether or not perfected, or any other lien now or hereafter held
      by
      Senior Creditor for the purpose of securing the Senior Debt are and shall remain
      senior to any security interest now or hereafter granted to Subordinated
      Creditors by Company for the purpose of securing the Subordinated Debt and
      any
      other lien now or hereafter held by Subordinated Creditors, including a judgment
      lien, for the purpose of securing the Subordinated Debt. The foregoing
      allocation of priorities shall govern the relationship of the parties with
      respect to such security interest and liens irrespective of the time or order
      of
      attachment or perfection of any of such security interest and liens, the time
      or
      order of filing of financing statements, the acquisition of purchase money
      or
      other liens, the time of giving or failure to give notice of the acquisition
      or
      expected acquisition of purchase money or other liens, the rules for determining
      priority under any law or rule governing relative priorities of the parties
      hereto, the fact that any such liens in favor of Senior Creditor with respect
      to
      any collateral are (i) subordinated to any lien securing any obligation of
      Company other than the Subordinated Debt or (ii) otherwise subordinated, voided,
      avoided, invalidated or lapsed, or any other circumstances whatsoever. For
      the
      purposes of the foregoing allocation of priorities, any claim of a right of
      set-off shall be treated in all respects as a security interest, and no claimed
      right of set-off shall be asserted by Subordinated Creditors to defeat or
      diminish the rights or priorities of the lien of Senior Creditor provided for
      herein. 

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    3.  Permitted
      Payments; Payment Blockage.

     

    (a)  All
      principal amounts owed under the Senior Creditor Documents shall remain senior
      in all respects and be paid in full prior to any payments being made under
      the
      Junior Creditor Documents. Notwithstanding anything to the contrary contained in
Section
      2,
      above,
      but subject expressly to Section
      3(b),
      below,
      Company shall be permitted to make, and Subordinated Creditors shall be
      permitted to accept or receive all regularly scheduled payments (interest and
      principal) which shall become due and owing under the Subordinated Creditors
      Notes when and as such amounts shall become due and payable in accordance with
      the terms thereof. The payments permitted to be made by Company under this
      Section 3(a)
      shall
      herein be collectively referred to as the “Permitted
      Payments.”

     

    (b)  Notwithstanding
      anything to the contrary contained in this Section 3
      or
      elsewhere in this Agreement, Subordinated Creditors shall not, after delivery
      to
      Subordinated Creditors of written notice from Senior Creditor stating that
      an
      event of default (“Event
      of Default”)
      (or an
      event which with notice or lapse of time or both would become an Event of
      Default) under the Senior Creditor Documents has occurred and is continuing
      (a
“Default
      Notice”),
      accept or receive any payment of any kind, including any Permitted Payment,
      of
      or on account of the Subordinated Debt, except for Reorganization Subordinated
      Securities in connection with any Insolvency or Liquidation Proceeding, unless
      and until all amounts payable which gave rise to any Event of Default (or an
      event which with notice or lapse of time or both would become an Event of
      Default) arising from a failure to pay shall have been fully and finally paid
      in
      cash, or any other Event of Default (or an event which with notice or lapse
      of
      time or both would become an Event of Default) shall have been timely cured
      or
      waived. After expiration of the period described in the preceding sentence,
      Subordinated Creditors shall be entitled to receive all Permitted Payments
      not
      previously paid. 

     

    4.  Enforcement
      Rights and Standstill. Notwithstanding
      anything herein or in the Subordinated Creditors Documents to the contrary,
      Subordinated Creditors may not accelerate the maturity of any Subordinated
      Debt
      or initiate or pursue any other remedies otherwise available to them, other
      than
      as permitted in Section
      3,
      including, without limitation, any enforcement remedy against any security
      for
      the Subordinated Debt, until the earlier of: (x) the date on which the Senior
      Debt shall have been fully
      and
      finally paid or satisfied or (y) the passage of one hundred and eighty (180)
      days following delivery of notice of an Event of Default under the Senior
      Creditor Documents to Subordinated Creditors (such 180-day period being called
      the “Standstill
      Period”),
      provided,
      however
      that:

     

    (a)  the
      Standstill Period will not apply to Subordinated Creditors for more than an
      aggregate of 180 days within any period of 360 consecutive days;

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (b)  no
      such
      Event of Default existing on the date any notice is given pursuant to this
      Section 4 shall, unless the same shall have ceased to exist for a period of
      at
      least 90 consecutive days, be used as a basis for any subsequent such
      notice;

     

    (c)  no
      more
      than one (1) such notice may be given in any 360 day period; and

     

    (d)  the
      Subordinated Debt shall continue to accrue interest, it being agreed that
      accrual of interest shall at all times be permitted under this
      Agreement
      (but
      nothing herein constitutes an agreement or assurance by Senior Creditor for
      the
      benefit or reliance by Subordinated Creditors that such interest accrual will
      be
      permitted or enforceable under applicable law).

     

    (e)  The
      Standstill Period will end on the earliest of: 

     

    (i) the
      expiration of the 180-day period described above; 

     

    (ii) the
      date
      of any acceleration of any Senior Debt, provided, however, that if any such
      acceleration of the Senior Debt is rescinded, the applicable Standstill Period
      shall be deemed reinstated solely for the remaining portion of the original
      Standstill Period and any related acceleration of the Subordinated Debt shall
      be
      similarly rescinded;

     

    (iii) the
      commencement of any Insolvency or Liquidation Proceeding; 

     

    (iv) the
      date
      of any initiation of any judicial proceeding or action against Company by Senior
      Creditor to collect any portion of the Senior Debt;

     

    (v) the
      institution of any foreclosure proceeding with respect to the Collateral, or
      the
      date that a substantial portion of the assets of Company are offered for sale,
      sold or otherwise disposed of outside of the ordinary course of business by
      or
      at the direction of Senior Creditor;

     

    (vi) the
      date
      of any realization by Senior Creditor on a substantial portion of the Collateral
      pursuant to or in lieu of its exercise of rights under the Senior Credit
      Documents; and

     

    (vii) the
      date
      on which any holder of any other indebtedness which is contractually
      subordinated to the Senior Debt is permitted to exercise remedies either
      pursuant to the terms of such contractual subordination or by virtue of any
      waiver or consent granted by Senior Creditor.

     

    5.  Payment
      in Trust for Senior Creditor; Specific Performance; Prohibition Against
      Contesting Liens.

     

    (a)  Any
      payments or distribution of assets of Company of any kind or character, whether
      in cash or property, received by Subordinated Creditors on account of the
      Subordinated Debt or any proceeds of the Collateral (whether or not
      identifiable) or proceeds of proceeds thereof, other than as permitted in
Section
      3,
      shall
      be held by Subordinated Creditors in
      trust
      for the
      benefit of Senior Creditor, and shall be delivered to Senior Creditor in kind,
      immediately upon receipt by Subordinated Creditors, for application to the
      Senior Debt until all such Senior Debt is paid and performed in full.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    (b)  If
      Subordinated Creditors, in violation of this Agreement, commence or participate
      in any enforcement action against Company or the Collateral without the prior
      written consent of Senior Creditor, Senior Creditor may interpose as a defense
      or dilatory plea the making of this Agreement and may intervene and interpose
      such defense or plea in its name or in the name of Company. Should Subordinated
      Creditors, in violation of this Agreement, in any way take, or attempt to or
      threaten to take any action with respect to any Collateral in violation of
      this
      Agreement (including, without limitation, any attempt to realize upon or enforce
      any remedy with respect to the Subordinated Creditors Documents in violation
      of
      this Agreement), or fail to take any action required by this Agreement, Senior
      Creditor (in its own name or in the name of Company) may obtain relief against
      Subordinated Creditors by injunction, specific performance and/or other
      appropriate equitable relief, it being understood and agreed by Subordinated
      Creditors that (i) Senior Creditor’s damages from its actions may at that time
      be difficult to ascertain and may be irreparable, and (ii) Subordinated
      Creditors waives any defense that Company or Senior Creditor cannot demonstrate
      damage and/or be made whole by the awarding of damages.

     

    (c)  Subordinated
      Creditors agrees that they shall not, and hereby waives any right to, contest,
      or support
      any
      other person in contesting, in any proceeding (including, without limitation,
      any Insolvency or Liquidation Proceeding), the priority, validity or
      enforceability of any
      lien
      securing the Senior Debt. 

     

    6.  Dissolution,
      Liquidation or Reorganization of Company. 

     

    (a)  The
      following terms shall have the following meanings for all purposes of this
      Agreement:

     

    “Insolvency
      or Liquidation Proceeding”
means
      (a) any
      voluntary or involuntary case or proceeding under the Bankruptcy Code with
      respect to Company as debtor, (b) any other voluntary or involuntary insolvency,
      reorganization or bankruptcy case or proceeding, or any receivership,
      liquidation, reorganization or other similar case or proceeding with respect
      to
      Company as debtor or with respect to any substantial part of its assets, (c)
      any
      liquidation, dissolution, reorganization or winding up of Company whether
      voluntary or involuntary and whether or not involving insolvency or bankruptcy
      or (d) any assignment for the benefit of creditors or any other marshalling
      of
      assets and liabilities of Company. 

     

    “Bankruptcy
      Code”
means
      Title 11 of the United States Code entitled “Bankruptcy”, as now and hereafter
      in effect, or any successor statute.

     

    “Reorganization
      Subordinated Securities”
means
      (i) equity securities or (ii) any notes or other securities issued in
      substitution of all or any portion of the Subordinated Debt that are
      subordinated in right of payment and lien priority to the Senior Debt (or any
      notes or other securities issued in substitution of all or any portion of the
      Senior Debt) at least to the same extent that the Subordinated Debt is
      subordinated to the Senior Debt pursuant to the terms of this Agreement, and
      which securities have maturities and other terms no less advantageous to Company
      and Senior Creditor than the terms contained in the Subordinated Debt
      Documents.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    (b)  Upon
      the
      distribution of any of Company’s assets, whether by reason of sale,
      reorganization, liquidation, dissolution, arrangement, bankruptcy, receivership,
      assignment for the benefit of creditors, foreclosure or otherwise, Senior
      Creditor shall be entitled to receive payment and performance in full of the
      Senior Debt prior to the payment of all or any part of the Subordinated
      Debt.

     

    (c)  In
      connection with any Insolvency or Liquidation Proceeding, until the Senior
      Debt
      has been paid (or otherwise satisfied) and performed in full, Subordinated
      Creditors agree that (a) if Senior Creditor shall desire to permit the use
      of
      cash collateral, Subordinated Creditors will not raise any objection to and
      will
      not contest (or support any person in objecting to or contesting) such use
      of
      cash collateral, (b) Subordinated Creditors will not raise any objection to
      and
      will not contest (or support any person in objecting to or contesting) (u)
      any
      sale or disposition of any assets of Company that is supported by Senior
      Creditor, and Subordinated Creditors will be deemed to have consented under
      Section 363 of the Bankruptcy Code (and otherwise) to any sale supported by
      Senior Creditor and to have released its liens, if any, in such assets upon
      the
      consummation of such sale, (v) any debtor in possession financing approved
      by
      Senior Creditor, (w) any request by Senior Creditor for adequate protection,
      (x)
      any objection by Senior Creditor to any motion, relief, action or proceeding
      based on Senior Creditor claiming a lack of adequate protection, (y) the payment
      of interest, fees, expenses or other amounts to Senior Creditor under Section
      506(b) or 506(c) of the Bankruptcy Code or otherwise, and (z) to any “carve-out”
for professional and United States Trustee fees agreed to by Senior Creditor,
provided,
      however,
      that
      the foregoing shall not prohibit Subordinated Creditors from seeking adequate
      protection as provided in Section
      6(d),
      below,
      and (c) Subordinated Creditors shall not seek to provide any debtor in
      possession financing without the prior written consent of Senior Creditor.
      Until
      the Senior Debt has been paid (or otherwise satisfied) and performed in full,
      each Subordinated Creditor agrees that it shall not seek relief from the
      automatic stay or any other stay in any Insolvency or Liquidation Proceeding
      in
      respect of the Collateral, without the prior written consent of Senior
      Creditor.

     

    (d)  Notwithstanding
      anything to the contrary in the foregoing, in any Insolvency or Liquidation
      Proceeding, (x)
      Subordinated Creditors may seek, support, accept or retain adequate protection
      (A) only if Senior Creditor is granted adequate protection that includes
      replacement liens on additional collateral and superpriority claims and (B)(1)
      solely in the form of a replacement lien on such additional collateral,
      subordinated to the liens in favor of Senior Creditor on the same basis as
      the
      other liens in favor of Subordinated Creditors are so subordinated to the liens
      securing the Senior Debt under this Agreement and (2) solely to the extent
      that
      the Collateral pledged or secured by the Subordinated Creditors Documents has
      been diminished in connection with such Insolvency or Liquidation Proceeding,
      superpriority claims subordinated to the Senior Debt and all claims granted
      to
      Senior Creditor in the manner and on the terms set forth herein, and (y) in
      the
      event Subordinated Creditors receives adequate protection, including in the
      form
      of additional collateral, then Subordinated Creditors agrees that any lien
      on
      any additional collateral securing the Subordinated Debt shall be subordinated
      to the liens on such collateral securing the Senior Debt and any debtor in
      possession financing provided by Senior Creditor and any other liens granted
      to
      Senior Creditor as adequate protection, with such subordination to be on the
      same terms that the other liens securing the Subordinated Debt are subordinated
      to the Senior Debt under this Agreement. Subject
      to the foregoing, Senior Creditor agrees that it shall not object, contest
      or
      support any other person objecting to or contesting, in each case, unless it
      has
      not received adequate protection in respect of the Senior Debt, (i) any request
      by Subordinated Creditors for adequate protection permitted by this Agreement
      or
      (ii) any objection by Subordinated Creditors which Subordinated Creditors is
      not
      prohibited from making under this Agreement to any motion, relief, action or
      proceeding based on a claim or a lack of adequate protection or (iii) the
      payment of interest, fees, expenses or other amounts to Subordinated Creditors
      under Section 506(b) or 506(c) of the Bankruptcy Code or otherwise.  

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    (e)  Notwithstanding
      anything to the contrary in this Section
      6,
      in any
      Insolvency or Liquidation Proceeding, Subordinated Creditors may (a) file any
      necessary responsive or defensive pleadings in opposition to any motion, claim,
      adversary proceeding or other pleading made by any person objecting to or
      otherwise seeking the disallowance of the claims of Subordinated Creditors,
      including any claims secured by the Collateral, if any, in each case in
      accordance with the terms of this Agreement (it being agreed nothing in the
      foregoing permits Subordinated Creditors to file any pleadings adverse to Senior
      Creditor), (b) file any proof of claim, make other filings and make any
      arguments and motions that are, in each case, in accordance with the terms
      of
      this Agreement, with respect to the Subordinated Debt and the Collateral, or
      propose debtor in possession financing if debtor in possession financing is
      not
      then being proposed by Senior Creditor, and (c) cash bid at any Section 363
      hearing or with respect to any other Collateral disposition. Notwithstanding
      clause (b) above, in the event Subordinated Creditors has not filed a proof
      of
      claim prior to the tenth (10th)
      business day prior to the date claims may last be filed in any such Insolvency
      or Liquidation Proceeding, Senior Creditor may file such proof of claim on
      behalf of Subordinated Creditors and is hereby authorized to do so.

     

    (f)  Subordinated
      Creditors acknowledges and agrees that (a) the grants of liens pursuant to
      the
      Senior Creditor Documents and the Subordinated Creditors Documents constitute
      two separate and distinct grants of liens and (b) because of, among other
      things, their differing rights in the Collateral, the claims of Subordinated
      Creditors are fundamentally different from the claims of Senior Creditor and
      must be separately classified in any plan of reorganization proposed or adopted
      in an Insolvency or Liquidation Proceeding. To further effectuate the intent
      of
      the parties as provided in the immediately preceding sentence, if it is held
      that the claims of Senior Creditor and Subordinated Creditors in respect of
      the
      Collateral constitute only one secured claim (rather than separate classes
      of
      senior and junior secured claims), then Subordinated Creditors hereby
      acknowledge and agree that all distributions shall be made as if there were
      separate classes of senior and junior secured claims against Company in respect
      of the Collateral with the effect being that, to the extent that the aggregate
      value of the Collateral is sufficient (for this purpose ignoring all claims
      held
      by Subordinated Creditors), Senior Creditor shall be entitled to receive, in
      addition to amounts distributed to it in respect of principal, pre-petition
      interest and other claims, all amounts owing in respect of post-petition
      interest before any distribution is made in respect of the claims held by
      Subordinated Creditors, with each Subordinated Creditor hereby acknowledging
      and
      agreeing to turn over to Senior Creditor amounts otherwise received or
      receivable by it to the extent necessary to effectuate the intent of this
      sentence, even if such turnover has the effect of reducing the claim or recovery
      of such Subordinated Creditor.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    (g)  Except
      as
      contemplated in Section
      6(d)
      above
      with respect to Subordinated Creditors seeking adequate protection, nothing
      contained herein shall prohibit or in any way limit Senior Creditor from
      objecting in any Insolvency or Liquidation Proceeding or otherwise to any action
      taken by Subordinated Creditors.

     

    (h)  To
      the
      extent that Subordinated Creditors has or acquires rights under Section 363
      or
      Section 364 of the Bankruptcy Code with respect to any of the Collateral,
      Subordinated Creditors agrees not to assert any of such rights without the
      prior
      written consent of Senior Creditor; provided
      that if
      requested by Senior Creditor, Subordinated Creditors shall timely exercise
      such
      rights in the manner requested by Senior Creditor, including any rights to
      payments in respect of such rights.

     

    (i)  This
      Agreement, which the parties hereto expressly acknowledge is a “subordination
      agreement” under Section 510(a) of the Bankruptcy Code, shall be effective
      before and after the commencement of an Insolvency or Liquidation Proceeding.
      All references in this Agreement to Company shall include Company as a debtor
      in
      possession and any receiver or trustee for Company in any Insolvency or
      Liquidation Proceeding.

     

    7.  Negative
      Covenants of Subordinated Creditors.
      Except
      as expressly permitted by Section
      4
      above,
      Subordinated Creditors covenants and agrees that it shall not, until the Senior
      Debt shall have been paid and performed in full, directly or indirectly:

     

    (a)  take
      any
      action with respect to the Collateral, whether by judicial or non-judicial
      foreclosure, notification to Company’s account debtors, setoff or
      otherwise;

     

    (b)  exercise
      or enforce any right of acceleration, demand or set off against Company or
      the
      assets or property of Company;

     

    (c)  make
      any
      claim or commence or initiate any action, lawsuit, case or proceedings against
      Company or join together with any creditor in any action, lawsuit, case or
      proceeding against Company;

     

    (d)  ask
      for,
      demand, take, accept, receive or take any action to obtain, any security
      interest or lien on the assets or property of Company or exercise any right
      of
      foreclosure or any right or remedy with respect to Company or the assets or
      property of Company;

     

    (e)  contact
      any account debtors of Company or otherwise seek payment from any obligor on
      any
      Collateral;

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    (f)  direct
      Senior Creditor to exercise any right, remedy or power with respect to any
      Collateral or pursuant to the Senior Creditor Documents; or

     

    (g)  object
      to, impede, interfere with or attempt to restrict or restrain any foreclosure
      or
      other exercise by Senior Creditor of any right, remedy or power with respect
      to
      any Collateral or pursuant to the Senior Creditor Documents or to the timing
      or
      manner in which any such right is exercised or not exercised (or, to the extent
      it may have any such right, whether as a junior lien creditor or otherwise,
      Subordinated Creditors hereby irrevocably waives such right). 

     

    8.  Amendment
      of Senior Debt.
      

     

    (a)  Each
      Subordinated Creditor hereby waives any rights it may have to claim that the
      enforceability of this Agreement may be affected by any subsequent modification,
      release, extension, or other change, material or otherwise, in the Senior Debt,
      other than (i) an increase in the interest rate of the Senior Debt to an amount
      greater than the interest rate payable pursuant to the Subordinated Note and
      (ii) an increase in the principal amount or the Senior Debt. 

     

    (b)  Senior
      Creditor may at any time, in Senior Creditor’s discretion and without notice to
      or the consent of Subordinated Creditors, renew or extend the time of payment
      of
      any portion of the Senior Debt, amend or modify the Senior Creditor Documents,
      or waive or release any collateral which may be held therefor, and Senior
      Creditor may otherwise enter into such agreements with Company as Senior
      Creditor may deem desirable without notice to or further assent from
      Subordinated Creditors and without in any way affecting Senior Creditor’s rights
      hereunder. In no event shall the Senior Creditor amend the Senior Creditor
      Documents to (i) increase the interest rate of the Senior Debt to an amount
      greater than the interest rate payable pursuant to the Subordinated Note or
      (ii)
      increase the principal amount of the Senior Debt.

     

    9.  Representations,
      Warranties and Affirmative Covenants of Subordinated Creditors.
Each
      Subordinated Creditor, severally and not jointly, represents, covenants and
      agrees that it:

     

    (a)  is
      the
      sole owner and holder of the Subordinated Debt listed opposite its name on
      Schedule
      A
      hereto
      and that it has not sold or assigned any interest therein;

     

    (b)  has
      not
      granted any prior subordinations with respect to the Subordinated
      Debt;

     

    (c)  does
      not
      have a security interest or lien on any property or assets of Company other
      than
      as set forth in the Subordinated Creditor Documents, other than any indirect
      security interest or lien arising solely from such Subordinated Creditor’s
      ownership of equity securities of Senior Creditor ;

     

    (d)  will
      not,
      at any time while this Agreement is in effect, sell, transfer, pledge, assign,
      hypothecate or otherwise dispose of any or all of the Subordinated Debt to
      any
      entity other than one that has agreed in a writing to become bound to this
      Agreement and to succeed to the rights and to be bound by all of the obligations
      of Subordinated Creditors hereunder;

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    (e)  will
      allow the Company to place a legend on the Subordinated Creditor Documents
      to
      state that the Subordinated Debt is subordinate to the Senior Debt and is
      subject to the terms and conditions of this Agreement;

     

    (f)  will
      give
      Senior Creditor prompt (and in no event later than 10 days after Subordinated
      Creditors shall become aware thereof) notice of any written notice of any event
      of default delivered to Company under the Subordinated Creditors
      Documents;

     

    (g)  will
      not
      modify, amend, alter, change, substitute or extend any of the terms or
      provisions of the Subordinated Debt or any of the Subordinated Creditors
      Documents without the prior written consent of Senior Creditor; 

     

    (h)  will,
      at
      the request of Senior Creditor, release any lien and security interest it has
      on
      any of the Collateral to the extent necessary to facilitate a transfer or sale
      of the Collateral pursuant to the Senior Creditor’s exercise of remedies after
      an Event of Default under the Senior Creditor Documents, so long as the proceeds
      thereof are applied against the Senior Debt and any excess is paid to
      Subordinated Creditors to be applied against the Subordinated Debt;

     

    (i)  will
      execute and deliver such additional instruments and documents and take such
      additional actions as Senior Creditor may reasonably request in order to carry
      out and evidence the terms of this Agreement;

     

    (j)  will
      not
      take or cause to be taken any action, the purpose or effect of which is to
      make
      any lien in respect of any of the Collateral pari
      passu
      with or
      senior to, or to give Subordinated Creditors any preference or priority relative
      to, the liens in favor of Senior Creditor with respect to the Collateral;
      and

     

    (k)  will
      not,
      except with the written approval of Senior Creditor, acquire or hold any lien
      on
      any assets of Company securing the Subordinated Debt except to the extent Senior
      Creditor has been granted and holds a perfected security interest in such assets
      with priority in right of time of perfection and subject to the subordination
      and other terms provided in this Agreement.

     

    10.  Waiver
      of Marshaling.
      Subordinated Creditors irrevocably waives any right to compel Senior Creditor
      to
      marshal assets of Company, whether such rights arise under California Civil
      Code
§§2899 and 3433 or otherwise.

     

    11.  Term.
      The
      subordinations and agreements set forth herein shall remain in full force and
      effect until Senior Creditor advises Subordinated Creditors that Company has
      paid and performed, or satisfied in full, the Senior Debt and Senior Creditor
      has terminated its security interests in and to the Collateral. The rights
      and
      obligations of Subordinated Creditors and Senior Creditor hereunder shall not
      be
      affected by any act or failure to act by Company (regardless of any knowledge
      Senior Creditor may have thereof) or the bankruptcy or insolvency of Company
      and
      shall be effective regardless of whether either Senior Creditor or Subordinated
      Creditors in the future seeks to rescind, amend, terminate or reform by
      litigation or otherwise their respective agreements with Company.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    12.  Preference
      and Reinstatement.
      If
      Company makes a payment to Senior Creditor and if Senior Creditor is required
      in
      any Insolvency or Liquidation Proceeding or otherwise to turn over or otherwise
      pay to the estate of Company any amount of such payment as a preference (a
      “Recovery”),
      then
      the claims of Senior Creditor shall be revived to the extent of such Recovery
      and continue in full force and effect as Senor Debt entitled to the benefits
      of
      this Agreement, as if such payment had not been received by Senior Creditor.
      If
      this Agreement shall have been terminated prior to such Recovery, this Agreement
      shall be reinstated in full force and effect, and such prior termination shall
      not diminish, release, discharge, impair or otherwise affect the obligations
      of
      the parties hereto from such date of reinstatement.

     

    13.  The
      Collateral.
      

     

    (a)  Subject
      to applicable law, except as otherwise expressly provided for herein, until
      the
      Senior Debt is paid and performed in full, Senior Creditor shall be entitled
      to
      deal with the Collateral in accordance with the terms of the Senior Creditor
      Documents as if the liens of Subordinated Creditors did not exist. The rights
      of
      Subordinated Creditors with respect to the Collateral shall at all times be
      subject to the terms of this Agreement.

     

    (b)  Senior
      Creditor shall have no obligation whatsoever to Subordinated Creditors to assure
      that the Collateral is genuine or owned by Company or to preserve the rights
      or
      benefits of any person or entity. Senior Creditor shall not be under any
      obligation to Subordinated Creditors to ascertain or to inquire as to the
      observance or performance of any of the agreements contained in, or conditions
      of, the Senior Creditor Documents or the Subordinated Creditors Documents,
      or to
      inspect the properties, books or records of Company or any of its
      subsidiaries.

     

    (c)  Senior
      Creditor shall not have any fiduciary relationship in respect of Subordinated
      Creditors. Subordinated Creditors shall not have a fiduciary relationship in
      respect of Senior Creditor. Senior Creditor makes no representations as to
      the
      value or condition of the Collateral or any part thereof, as to the title of
      Company to the Collateral, as to the security afforded by this Agreement or
      any
      other document relating to the Collateral or, as to the validity, execution,
      enforceability, legality or sufficiency of this Agreement or any other document
      relating to the Collateral, and Senior Creditor shall incur no liability or
      responsibility in respect of any such matters.  Senior Creditor shall not
      be responsible for insuring the Collateral, for the payment of taxes, charges,
      assessments or liens upon the Collateral or otherwise as to the maintenance
      of
      the Collateral.  Senior Creditor shall have no duty to Company or to the
      holders of any of the Subordinated Debt, as to any Collateral in its possession
      or control or in the possession or control of any agent or nominee of Senior
      Creditor or any income thereon or as to the preservation of rights against
      prior
      parties or any other rights pertaining thereto.

     

    (d)  Upon
      the
      payment and performance in full of the Senior Debt, Senior Creditor shall
      deliver to Subordinated Creditors the Collateral held or received by it,
      together with any necessary endorsement and any other proceeds of Collateral
      held by it. Senior Creditor further agrees, upon payment and performance in
      full
      of the Senior Debt, to take all other action reasonably requested by
      Subordinated Creditors in connection with Subordinated Creditors obtaining
      a
      first priority perfected security interest in the Collateral or as a court
      of
      competent jurisdiction may otherwise direct.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    (e)  Senior
      Creditor and Subordinated Creditors shall each be entitled to rely upon any
      certificate, notice, consent or other instrument in writing (including any
      facsimile transmission) believed by such person to be genuine and correct and
      to
      have been signed or sent or made by or on behalf of a proper person and
      shall
      be entitled to advice of counsel concerning all matters pertaining to this
      Agreement.

     

    (f)  Notwithstanding
      any provision to the contrary elsewhere in this Agreement and the other
      documents relating to the Collateral, Senior Creditor shall not have any duties
      or responsibilities, except those expressly set forth in this Agreement, and
      no
      implied covenants, functions or responsibilities fiduciary or otherwise shall
      be
      read into this Agreement or otherwise exist against the Senior
      Creditor.

     

    14.  Attorneys’
      Fees.
      In any
      dispute between Senior Creditor and any Subordinated Creditor regarding this
      Agreement, the non-prevailing party shall pay the prevailing party its
      reasonable attorneys fees and expenses incurred in connection with such dispute.
      It shall be presumed (subject to rebuttal only by the introduction of competent
      evidence to the contrary) that the amount recoverable is the amount billed
      to
      the prevailing party by its counsel and that such amount will be reasonable
      if
      based on counsel customary billing rates charged to the prevailing party by
      its
      counsel in similar matters. For the purposes of Section 1717 of the California
      Civil Code, a party shall be the “prevailing party” if it recovers any funds
      whatsoever from the other party, whether by settlement, judgment or
      otherwise.

     

    15.  Refinancing
      of Senior Debt.
      In the
      event that any person(s) (“Refinancing
      Senior Lenders”)
      at any
      time hereafter extends credit to Company and the proceeds of such extension
      of
      credit are applied to the payment and performance in full of all of the Senior
      Debt, then all indebtedness and liabilities of Company to the Refinancing Senior
      Lenders shall be entitled to the benefits of this Agreement to the same extent
      as the Senior Debt and Senior Creditor, provided such Refinancing Senior Lenders
      agree in writing to be bound hereby, and Subordinated Creditors and Company
      shall promptly execute and deliver any agreement which the Refinancing Senior
      Lenders shall reasonably request with respect thereto confirming the terms
      and
      conditions of this Agreement in favor of the Refinancing Senior Lenders. Any
      reference contained in this Agreement to “Senior
      Creditor”
shall
      be deemed to include any holder of Senior Debt at any time, including, without
      limitation, any Refinancing Senior Lender.

     

    16.  Conflicts.
      Senior
      Creditor acknowledges and agrees that to the extent the terms and provisions
      of
      this Agreement are inconsistent with the terms and provisions of the Senior
      Creditor Documents or any other agreements relating to or evidencing the Senior
      Debt, the terms and provisions of this Agreement shall be controlling.
      Subordinated Creditors acknowledges and agrees that, to the extent the terms
      and
      provisions of this Agreement are inconsistent with the terms and provisions
      of
      the Subordinated Creditors Documents or any other agreements relating to or
      evidencing the Subordinated Debt, the terms and provisions of this Agreement
      shall be controlling. The provisions of this Section
      16 are
      for
      the purpose of defining the relative rights of Senior Creditor, on the one
      hand,
      and Subordinated Creditors, on the other hand, and nothing herein shall impair,
      as between Company and Subordinated Creditors, the obligation of Company, which
      is unconditional and absolute, to pay to Subordinated Creditors the Subordinated
      Debt in accordance with its terms and the provisions of the Subordinated
      Creditors Documents. All understandings, agreements, representations and
      warranties contained herein are solely for the benefit of the parties hereto
      and
      there are no other parties (including, without limitation, Company) who are
      intended to be benefited in any way by this Agreement.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    17.  Governing
      Law; Jurisdiction; Jury Waiver; Judicial Reference.
      

     

    (a)  This
      Agreement, and each and every term and provision hereof, shall be governed
      by
      and construed in accordance with the internal law of the State of California.
      

     

    (b)  The
      undersigned hereby submit to the exclusive jurisdiction of the state and federal
      courts located in the County of San Francisco, State of California. Any
      arbitration pertaining to the this Agreement or the transactions described
      herein shall be held in San Francisco, California. 

     

    (c)  THE
      UNDERSIGNED ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL
      ONE
      BUT THAT IT MAY BE WAIVED UNDER CERTAIN CIRCUMSTANCES. TO THE EXTENT PERMITTED
      BY LAW, EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT)
      WITH COUNSEL OF ITS CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL
      BENEFIT OF ALL PARTIES, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF
      LITIGATION ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OTHER DOCUMENT,
      INSTRUMENT OR AGREEMENT BETWEEN THE UNDERSIGNED PARTIES.

     

    Senior
      Creditor Initials ______  Subordinated
      Creditors Initials ______  Company
      Initials ______

     

    (d)  In
      the
      event the jury trial waiver set forth above is not enforceable, the parties
      elect to proceed under this Judicial Reference Provision.

     

    (i) With
      the
      exception of the items specified in clause (ii), below, any controversy, dispute
      or claim (each, a “Claim”)
      between the parties arising out of or relating to this Agreement or any other
      document, instrument or agreement between the undersigned parties (collectively
      in this Section, the “Documents”),
      will
      be resolved by a reference proceeding in California in accordance with the
      provisions of Sections 638 et seq. of the California Code of Civil Procedure
      (“CCP”),
      or
      their successor sections, which shall constitute the exclusive remedy for the
      resolution of any Claim, including whether the Claim is subject to the reference
      proceeding. Except as otherwise provided in the Documents, venue for the
      reference proceeding will be in the state or federal court in the county or
      district where the real property involved in the action, if any, is located
      or
      in the state or federal court in the county or district where venue is otherwise
      appropriate under applicable law (the “Court”).

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    (ii) The
      matters that shall not be subject to a reference are the following: (A)
      nonjudicial foreclosure of any security interests in real or personal property,
      (B) exercise of self-help remedies (including, without limitation, set-off),
      (C)
      appointment of a receiver and (D) temporary, provisional or ancillary remedies
      (including, without limitation, writs of attachment, writs of possession,
      temporary restraining orders or preliminary injunctions). This reference
      provision does not limit the right of any party to exercise or oppose any of
      the
      rights and remedies described in clauses (A) and (B) or to seek or oppose from
      a
      court of competent jurisdiction any of the items described in clauses (C) and
      (D). The exercise of, or opposition to, any of those items does not waive the
      right of any party to a reference pursuant to this reference provision as
      provided herein.

     

    (iii) The
      referee shall be a retired judge or justice selected by mutual written agreement
      of the parties. If the parties do not agree within ten (10) days of a written
      request to do so by any party, then, upon request of any party, the referee
      shall be selected by the Presiding Judge of the Court (or his or her
      representative). A request for appointment of a referee may be heard on an
      ex
      parte or expedited basis, and the parties agree that irreparable harm would
      result if ex parte relief is not granted. Pursuant to CCP § 170.6, each party
      shall have one peremptory challenge to the referee selected by the Presiding
      Judge of the Court (or his or her representative).

     

    (iv) The
      parties agree that time is of the essence in conducting the reference
      proceedings. Accordingly, the referee shall be requested, subject to change
      in
      the time periods specified herein for good cause shown, to (i) set the matter
      for a status and trial-setting conference within fifteen (15) days after the
      date of selection of the referee, (ii) if practicable, try all issues of law
      or
      fact within one hundred twenty (120) days after the date of the conference
      and
      (iii) report a statement of decision within twenty (20) days after the matter
      has been submitted for decision.

     

    (v) The
      referee will have power to expand or limit the amount and duration of discovery.
      The referee may set or extend discovery deadlines or cutoffs for good cause,
      including a party’s failure to provide requested discovery for any reason
      whatsoever. Unless otherwise ordered based upon good cause shown, no party
      shall
      be entitled to “priority” in conducting discovery, depositions may be taken by
      either party upon seven (7) days written notice, and all other discovery shall
      be responded to within fifteen (15) days after service. All disputes relating
      to
      discovery which cannot be resolved by the parties shall be submitted to the
      referee whose decision shall be final and binding.

     

    (vi) Except
      as
      expressly set forth herein, the referee shall determine the manner in which
      the
      reference proceeding is conducted including the time and place of hearings,
      the
      order of presentation of evidence, and all other questions that arise with
      respect to the course of the reference proceeding. All proceedings and hearings
      conducted before the referee, except for trial, shall be conducted without
      a
      court reporter, except that when any party so requests, a court reporter will
      be
      used at any hearing conducted before the referee, and the referee will be
      provided a courtesy copy of the transcript. The party making such a request
      shall have the obligation to arrange for and pay the court reporter. Subject
      to
      the referee’s power to award costs to the prevailing party, the parties will
      equally share the cost of the referee and the court reporter at
      trial.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    (vii) The
      referee shall be required to determine all issues in accordance with existing
      case law and the statutory laws of the State of California. The rules of
      evidence applicable to proceedings at law in the State of California will be
      applicable to the reference proceeding. The referee shall be empowered to enter
      equitable as well as legal relief, enter equitable orders that will be binding
      on the parties and rule on any motion which would be authorized in a court
      proceeding, including without limitation motions for summary judgment or summary
      adjudication. The referee shall issue a decision at the close of the reference
      proceeding which disposes of all claims of the parties that are the subject
      of
      the reference. Pursuant to CCP § 644, such decision shall be entered by the
      Court as a judgment or an order in the same manner as if the action had been
      tried by the Court and any such decision will be final, binding and conclusive.
      The parties reserve the right to appeal from the final judgment or order or
      from
      any appealable decision or order entered by the referee. The parties reserve
      the
      right to findings of fact, conclusions of laws, a written statement of decision,
      and the right to move for a new trial or a different judgment, which new trial,
      if granted, is also to be a reference proceeding under this
      provision.

     

    (viii) If
      the
      enabling legislation which provides for appointment of a referee is repealed
      (and no successor statute is enacted), any dispute between the parties that
      would otherwise be determined by reference procedure will be resolved and
      determined by arbitration. The arbitration will be conducted by a retired judge
      or justice, in accordance with the California Arbitration Act §1280 through
§1294.2 of the CCP as amended from time to time. The limitations with respect
      to
      discovery set forth above shall apply to any such arbitration
      proceeding.

     

    (ix) THE
      PARTIES RECOGNIZE AND AGREE THAT ALL CONTROVERSIES, DISPUTES AND CLAIMS RESOLVED
      UNDER THIS REFERENCE PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY.
      AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF
      ITS
      OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT
      OF
      ALL PARTIES, AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY CONTROVERSY,
      DISPUTE OR CLAIM BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED
      TO,
      THIS AGREEMENT OR
      THE
      OTHER DOCUMENTS EXCEPT AS PROVIDED IN CLAUSE (II) ABOVE.

     

    18.  Miscellaneous.
      

     

    (a)  This
      Agreement shall be binding upon, and inure to the benefit of, the successors
      and
      assigns of the parties hereto. For the avoidance of doubt, Senior Creditor
      may
      at any time assign all of its rights and obligations hereunder to any
      Refinancing Senior Lender.

     

    (b)  In
      case
      any provision hereof shall be determined to be unenforceable, the remaining
      provisions hereof shall remain valid and enforceable. 

     

    (c)  This
      Agreement constitutes the final and complete agreement of the parties thereto
      and shall not be amended or modified except in writing signed by Senior Creditor
      and Subordinated Creditors.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    (d)  No
      failure or delay on the part of any party hereto in the exercise of any power,
      right, remedy or privilege under this Agreement shall impair such power, right,
      remedy or privilege or shall operate as a waiver thereof; nor shall any single
      or partial exercise of any such power, right or privilege preclude any other
      or
      further exercise of any other power, right or privilege. The waiver of any
      such
      right, power, remedy or privilege with respect to particular facts and
      circumstances shall not be deemed to be a waiver with respect to other facts
      and
      circumstances.

     

    (e)  Each
      notice hereunder shall be in writing and may be personally served or sent by
      telefacsimile or United States mail or courier service and shall be deemed
      to
      have been given when delivered in person or by courier service and signed for
      against receipt thereof, upon receipt of telefacsimile, or three Business Days
      after depositing it in the United States mail with postage prepaid and properly
      addressed. Unless otherwise specified in a notice mailed or delivered in
      accordance with the foregoing provisions of this Section
      18(d),
      notices, demands, instructions and other communications in writing shall be
      given to or made upon the respective parties hereto at their respective
      addresses indicated on the signature pages hereof.

     

    (f)  This
      Agreement and any amendments, waivers, consents or supplements hereto or in
      connection herewith may be executed in any number of counterparts and by
      different parties hereto or thereto in separate counterparts, each of which
      when
      so executed and delivered shall be deemed an original, but all such counterparts
      together shall constitute but one and the same instrument; signature pages
      may
      be detached from multiple separate counterparts and attached to a single
      counterpart so that all signature pages are physically attached to the same
      document. This Agreement shall become effective upon the execution of a
      counterpart hereof by each of the parties hereto.

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    [Senior
      Creditor Signature Page]

     

    

     

    IN
      WITNESS WHEREOF,
      the
      Senior Creditor has caused this Agreement to be duly executed and delivered
      by
      its officer thereunto duly authorized as of the date first above
      written.

     

    Solidus
      Networks, Inc.,
      as
      Senior Creditor 

    
      	 	 	 	 	 
	By: 	/s/
              Brian Miller	 	 	 
	 	
              

            	 	 	
            
	Title:	Executive
              Vice President	 	 	 
	 	
              
 	 	 	 

    

     

     

    Address
      for Notice:

     

    Solidus
      Networks, Inc.

    101
      Second Street, Suite 1500

    San
      Francisco, CA 94105

    

     

    with
      a
      copy, not constituting notice, to:

     

    Cooley
      Godward, LLP

    c/o
      Kenneth L. Guernsey

    101
      California St., 5th
      Floor

    San
      Francisco, CA 94111

    
 

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    [Subordinated
      Creditors Signature Page]

     

    

     

    IN
      WITNESS WHEREOF,
      the
      Subordinated Creditors has caused this Agreement to be duly executed and
      delivered by itself or by its officer thereunto duly authorized, as applicable,
      as of the date first above written.

     

    

    

    For
      Individuals:

    

    

    
      
Print
      Name Above

    

    
      
Sign
      Name
      Above

    

    

    For
      Entities:

    

    Calico
      Capital Group

    
      
Print
      Name Above

    

     

    
      
        	 	 	 	 	 
	By: 	/s/
                Michael Clofine	 	 	 
	 	
                
Name:
                Michael Clofine
                Title:
                  Partner

              	 	 	
              
	 	
                 

              

    

    [Subordinated
      Creditor should also initial Section 17(c)]

    

 

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

     

    
      [Subordinated
        Creditors Signature Page]

       

      

       

      IN
        WITNESS WHEREOF,
        the
        Subordinated Creditors has caused this Agreement to be duly executed and
        delivered by itself or by its officer thereunto duly authorized, as applicable,
        as of the date first above written.

       

      

      

      For
        Individuals:

      

      Trevor
        Colby

      
        
Print
        Name Above

       

       

      /s/
        Trevor Colby

      
        
Sign
        Name
        Above

      

      

      For
        Entities:

      

       

      
        
Print
        Name Above

      

       

      
        
          	 	 	 	 	 
	By: 	 	 	 	 
	 	
                  
Name:
                  
                  Title:
                    

                	 	 	
                
	 	
                   

                

      

      [Subordinated
        Creditor should also initial Section 17(c)]

       

      
        
           

        

        
          -20-

          
            

          

        

        
           

        

      

    

     

     

    
      [Subordinated
        Creditors Signature Page]

       

      

       

      IN
        WITNESS WHEREOF,
        the
        Subordinated Creditors has caused this Agreement to be duly executed and
        delivered by itself or by its officer thereunto duly authorized, as applicable,
        as of the date first above written.

       

      

      

      For
        Individuals:

      

      

      
        
Print
        Name Above

      

      
        
Sign
        Name
        Above

      

      

      For
        Entities:

      

      Patriot
        Capital Limited

      
        
Print
        Name Above

      

       

      
        
          	 	 	 	 	 
	By: 	/s/
                  Stephen Rasch	 	 	 
	 	
                  
Name:
                  Stephen Rasch
                  Title:
                    President

                	 	 	
                
	 	
                   

                

      

      [Subordinated
        Creditor should also initial Section 17(c)]

       

      
        
           

        

        
          -21-

          
            

          

        

        
           

        

      

    

     

     

    
      [Subordinated
        Creditors Signature Page]

       

      

       

      IN
        WITNESS WHEREOF,
        the
        Subordinated Creditors has caused this Agreement to be duly executed and
        delivered by itself or by its officer thereunto duly authorized, as applicable,
        as of the date first above written.

       

      

      

      For
        Individuals:

      

      

      
        
Print
        Name Above

      

      
        
Sign
        Name
        Above

      

      

      For
        Entities:

      

      MLA
        Capital, Inc.

      
        
Print
        Name Above

      

       

      
        
          	 	 	 	 	 
	By: 	/s/
                  Mark Tunnery	 	 	 
	 	
                  
Name:
                  Mark Tunnery
                  Title:
                    President

                	 	 	
                
	 	
                   

                

      

      [Subordinated
        Creditor should also initial Section 17(c)]

       

      
        
           

        

        
          -22-

          
            

          

        

        
           

        

      

    

     

     

    
      [Subordinated
        Creditors Signature Page]

       

      

       

      IN
        WITNESS WHEREOF,
        the
        Subordinated Creditors has caused this Agreement to be duly executed and
        delivered by itself or by its officer thereunto duly authorized, as applicable,
        as of the date first above written.

       

      

      

      For
        Individuals:

      

      

      
        
Print
        Name Above

      

      
        
Sign
        Name
        Above

      

      

      For
        Entities:

      

      Ridgewood
        Ltd.

      
        
Print
        Name Above

      

       

      
        
          	 	 	 	 	 
	By: 	/s/
                  N.J. Fiore	 	 	 
	 	
                  
Name:
                  N.J. Fiore
                  Title:
                    President

                	 	 	
                
	 	
                   

                

      

      [Subordinated
        Creditor should also initial Section 17(c)]

       

      
        
           

        

        
          -23-

          
            

          

        

        
           

        

      

    

     

    COMPANY
      ACKNOWLEDGMENT AND AGREEMENT

     

    Company
      does hereby accept and acknowledge receipt of a copy of the foregoing Agreement,
      and agree that (a) it will not pay any of the Subordinated Debt except as the
      foregoing Agreement provides; (b) it will be bound by all provisions of the
      foregoing Agreement; (c) it will place a legend on the Subordinated Creditor
      Documents to state that the Subordinated Debt is subordinate to the Senior
      Debt
      and is subject to the terms and conditions of the foregoing Agreement; and
      (d)
      it will have no rights, remedies or priorities either directly or as a third
      party beneficiary by virtue of the foregoing Agreement except as expressly
      set
      forth herein.

     

    Company
      agrees not to take any action that would be contrary to the provisions of the
      foregoing Agreement and agrees that no party shall have any liability to Company
      for acting in accordance with the provisions of the foregoing Agreement and,
      except as otherwise provided therein, the Senior Creditor Documents and the
      Subordinated Creditors Documents. 

     

    IN
      WITNESS WHEREOF,
      the
      undersigned has caused this Acknowledgment and Agreement to be duly executed
      under seal as of the day and year first above written.

     

    WinWin
      Gaming,
      Inc., a
      Delaware corporation

    
       

      
        
          	 	 	 	 	 
	By: 	/s/
                  Patrick Rogers	 	 	 
	 	
                  

                	 	 	
                
	Name:	Patrick
                  Rogers	 	 	 
	 	
                  
 	 	 	 
	 	 	 	 	 
	Title:	President
&
                  Chief Executive Officer	 	 	 
	 	
                  
                    
 

                

        

      

    

         

    
      
        
        

      

      
        -24-

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"}]]