Document:

Stock Purchase Agreement

 Exhibit 10.1 
  
 EXECUTION COPY 
  
 STOCK PURCHASE AGREEMENT 
  
 The Sands Regent 
 345 North Arlington Avenue

 Reno, Nevada 89501 
  
 The undersigned (the “Investor”), hereby confirms its agreement with you as follows: 
  
 1. This Stock Purchase Agreement (the “Agreement”) is made as of the date set forth below among The Sands Regent, a
Nevada corporation (the “Company”), and the Investor. 
  
 2.
The Company has authorized the sale and issuance of up to 500,000 shares (the “Shares”) of common stock of the Company, $.10 par value per share (the “Common Stock”), to a certain investor in a private placement
(the “Offering”). In consideration for the aforementioned Shares, the Investor will receive a Warrant giving the Investor the right to purchase 100,000 shares of Common Stock of the Company (the “Warrant”).

  
 3. The Company and the Investor agree that the Investor will purchase
from the Company and the Company will issue and sell to the Investor 500,000 Shares at a purchase price of $5.22 per Share, or an aggregate purchase price of $2,610,000, pursuant to the Terms and Conditions for Purchase of Securities attached hereto
as Annex I and incorporated herein by this reference as if fully set forth herein. Unless otherwise requested by the Investor in Exhibit A, certificates representing the Shares purchased by the Investor will be registered in the Investor’s name
and address as set forth below. 
  
 4. The Investor represents that, except
as set forth below, (a) it has had no position, office or other material relationship within the past three years with the Company, its Subsidiaries or its affiliates, (b) neither it, nor any group of which it is a member or to which it is related,
beneficially owns (including the right to acquire or vote) any securities of the Company or its Subsidiaries and (c) it has no direct or indirect affiliation or association with any National Association of Securities Dealers, Inc.
(“NASD”) member. Exceptions: 
  

 (If no exceptions, write “none.” If left blank, response will be deemed to be “none.”) 

 Please confirm that the foregoing correctly sets forth the agreement between us by signing in the space provided below
for that purpose. 
  

	
	 Dated as of: March 25, 2004

	
	

	 “INVESTOR”

	
	 By:  /s/    DAVID R. BELDING

	
	 Print Name:  David R. Belding

	
	 Title:

	
	 Address:  Gold Strike Hotel
                 c/o Bruce Hampton
                 P.O. Box 19278
                 Jean, NV 89019

  

	
	 AGREED AND ACCEPTED:

	 The Sands Regent

	
	 By:  /s/    FERENC B. SZONY

	 Title:  President and Chief Executive Officer

  

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 ANNEX I 
  
 TERMS AND CONDITIONS FOR PURCHASE
OF SECURITIES 
  
 1.
Agreement to Sell and Purchase the Securities; Subscription Date. 
  
 1.1 Purchase and Sale. At the Closing (as defined in Section 2), the Company will sell to the Investor, and the Investor will purchase from the Company, upon the terms and conditions hereinafter set forth, the number of Shares set
forth in paragraph 3 of the Stock Purchase Agreement to which these Terms and Conditions for Purchase of Shares are attached as Annex I and at the purchase price set forth in such paragraph. 
  
 1.2 Warrants. In consideration of the purchase of the Shares by the
Investor, upon the Closing the Company will issue a Warrant to the Investor, giving the Investor the right to acquire one hundred thousand (100,000) shares of Common Stock. 
  
 2. Delivery of the Shares at Closing. The completion of the purchase and sale of the Shares (the
“Closing”) and the issuance of the Warrant shall occur at a place and time, no later than March 25, 2004 (the “Closing Date”), to be specified by the Company, and of which the Investor will be notified in advance by
the Company. At the Closing, the Company shall deliver to the Investor (i) one or more stock certificates representing the number of Shares set forth in paragraph 3 of the Stock Purchase Agreement, each such certificate to be registered in the name
of the Investor and (ii) the Warrant in an amount determined in accordance with Section 1.2 hereof. In exchange for the delivery of the stock certificates representing such Shares and the Warrant, on or prior to the Closing, the Investor shall
deliver the purchase price for such Shares to the Company by certified bank check or wire transfer of immediately available funds pursuant to the Company’s written instructions. 
  
 The Company’s obligation to issue and sell the Shares to the Investor shall be subject to the following conditions, any
of which may be waived by the Company: (a) prior receipt by the Company of an executed copy of the Stock Purchase Agreement; and (b) the accuracy of the representations and warranties made by the Investors and the fulfillment of those undertakings
of the Investors to be fulfilled prior to the Closing. 
  
 The
Investor’s obligation to purchase the Shares shall be subject to the following conditions, any one or more of which may be waived by the Investor: (a) the Company’s agreement to issue and sell, and the Investors’ agreement to
purchase, on the Closing Date, 500,000 shares of Common Stock; (b) the representations and warranties of the Company contained in Section 3 being true and correct in all material respects on and as of such Closing with the same effect as though such
representations and warranties had been made on and as of the date of such Closing; (c) the absence of any order, writ, injunction, judgment or decree that questions the validity of the Agreement or the right of the Company to enter into such
Agreement or to consummate the transactions contemplated hereby and thereby; and (d) the delivery to the Investor by the Secretary or Assistant Secretary of the Company of a certificate stating that the condition specified in part (a) and (b) of
this paragraph has been fulfilled. In the event the Closing does not occur on or before the Closing Date on account of the Company’s failure to satisfy any of the conditions set forth above (and such condition has not been waived by the
Investor), the Company shall return any and all funds paid hereunder to the Investor no later than one business day following the Outside Date and the Investors shall have no further obligations hereunder. 
  
 3. Representations, Warranties and Covenants of the Company. Except as
otherwise described in the Company’s Annual Report on Form 10-K for the year ended June 30, 2003 (and any 
  

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 amendments thereto filed prior to the date hereof), the Company’s Proxy Statement for its 2003 Annual Meeting of
Shareholders, or the Company’s Quarterly Report on Form 10-Q for the quarters ended September 30, 2003 and December 31, 2003 (and any amendments thereto filed prior to the date hereof) or any of the Company’s Current Reports on Form 8-K
filed since June 30, 2003 (collectively, the “SEC Reports”), the Company hereby represents and warrants to, and covenants with, the Investor as of the date hereof and the Closing Date, as follows: 
  
 3.1 Organization. Each of the Company and its Subsidiaries (as
defined in Rule 405 under the Securities Act of 1933, as amended (the “Securities Act”)) is duly incorporated and validly existing and in good standing under the laws of the jurisdiction of its organization. Each of the Company and
its Subsidiaries has full power and authority to own, operate and occupy its properties and to conduct its business as presently conducted and is registered or qualified to do business and in good standing in each jurisdiction in which it owns or
leases property or transacts business and where the failure to be so qualified would have a material adverse effect upon the Company and its subsidiaries taken as a whole, or the business, financial condition, properties, operations or assets of the
Company and its Subsidiaries, taken as a whole, or the Company’s ability to perform its obligations under the Agreements (“Material Adverse Effect”), and no proceeding has been instituted in any such jurisdiction revoking,
limiting or curtailing, or seeking to revoke, limit or curtail, such power and authority or qualification. 
  
 3.2 Due Authorization. The Company has all requisite power and authority to execute, deliver and perform its obligations under the Agreement and
the Warrant Agreement, and the Agreement and the Warrant Agreement have been duly authorized and validly executed and delivered by the Company and constitute legal, valid and binding agreements of the Company enforceable against the Company in
accordance with their terms, except as rights to indemnity and contribution may be limited by state or federal securities laws or the public policy underlying such laws, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law) or Nevada Revised Statute 463.643 and Regulation 16 of the Regulations of the Nevada Gaming Commission and State Gaming Control Board. 
  
 3.3 Non-Contravention. The execution and delivery of the Agreement and the Warrant Agreement, the issuance and sale
of the Shares to be sold by the Company under the Agreement, the issuance of the Shares of Common Stock issuable upon the exercise of the Warrant (the “Warrant Shares”), the fulfillment of the terms of the Agreement and the
consummation of the transactions contemplated thereby will not (A) result in conflict with or constitute a violation of, or default (with the passage of time or otherwise) under, (i) any bond, debenture, note or other evidence of indebtedness, or
any lease, contract, indenture, mortgage, deed of trust, loan agreement, joint venture or other agreement or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries or its properties
are bound, where such conflict, violation or default is reasonably expected to result in a Material Adverse Effect, (ii) the Articles of Incorporation, by-laws or other organizational documents of the Company or any of its Subsidiaries, as amended,
or (iii) any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority binding upon the Company, its Subsidiaries or its properties, where such conflict, violation or default is likely to
result in (A) a Material Adverse Effect or (B) result in the creation or imposition of any lien, encumbrance, claim, security interest or restriction whatsoever upon any of the material properties or assets of the Company or any of its Subsidiaries
or an acceleration of indebtedness pursuant to any obligation, agreement or condition contained in any material bond, debenture, note or any other evidence of indebtedness or any material indenture, mortgage, deed of trust or any other agreement or
instrument to which the Company or any of its Subsidiaries is a party or by which it is bound or to which any of the property or assets of the Company or any of its Subsidiaries is subject. No consent, approval, 
  

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 authorization or other order of, or registration, qualification or filing with, any regulatory body, administrative
agency, or other governmental body in the United States is required for the execution and delivery of the Agreements by the Company and the valid issuance or sale of the Shares by the Company pursuant to the Agreements, other than such as have been
made or obtained, and except for any filings required to be made under federal or state securities laws. 
  
 3.4 Capitalization. The outstanding capital stock of the Company as of February 13, 2004 is as described in the Company’s Quarterly Report on
Form 10-Q for the quarter ended December 31, 2003. The Company has not issued any capital stock since February 13, 2004 other than pursuant to the exercise of outstanding warrants or employee stock options under the stock option plans disclosed in
the SEC Reports. The Shares to be sold pursuant to the Agreement have been duly authorized, and when issued and paid for in accordance with the terms of the Agreement, will be duly and validly issued, fully paid and nonassessable. The outstanding
shares of capital stock of the Company have been duly and validly issued and are fully paid and nonassessable, have been issued in compliance with the registration requirements of federal and state securities laws, and were not issued in violation
of any preemptive rights or similar rights to subscribe for or purchase securities. No preemptive right, co-sale right, registration right, right of first refusal or other similar right exists with respect to the issuance and sale of the Shares,
except as provided in the Agreements. There are no shareholders agreements, voting agreements or other similar agreements with respect to the Common Stock to which the Company is a party. The Company owns the entire equity interest in its
Subsidiaries, free and clear of any pledge, lien, security interest, encumbrance, claim or equitable interest. 
  
 3.5 Reservation of Shares. The Company will at all times have authorized, and reserved for the purpose of issuance, a sufficient number of shares
of Common Stock to provide for the full exercise of the Warrant and the issuance of the Warrant Shares in connection therewith (based upon the warrant purchase price (as defined in the Warrant) of the Warrant in effect from time to time). Prior to
the expiration thereof, the Company will not reduce the number of shares of Common Stock reserved for issuance upon exercise of the Warrant without the consent of the Investor. If at any time the number of shares of Common Stock authorized and
reserved for issuance is below the number of Warrant Shares issuable upon exercise of the Warrant (based on the warrant purchase price of the Warrant then in effect), the Company will promptly take all corporate action necessary to authorize and
reserve a sufficient number of shares, including, without limitation, calling a special meeting of shareholders to authorize additional shares to meet the Company’s obligations under this Section, in the case of an insufficient number of
authorized shares, and using its reasonable best efforts to obtain shareholder approval of an increase in such authorized number of shares. 
  
 3.6 Legal Proceedings. There is no material legal or governmental proceeding pending, or to the knowledge of the Company, threatened, to which the
Company or any of its Subsidiaries is a party or of which the business or property of the Company or any of its Subsidiaries is subject that is required to be disclosed and that is not so disclosed in the SEC Reports. The Company is not a party to
the provisions of any injunction, judgment, decree or order of any court, regulatory body, administrative agency or other government body which is material to the business or operation of the Company and its Subsidiaries, taken as a whole.

  
 3.7 No Violations. The Company nor any of its
Subsidiaries is in violation of its Articles of Incorporation, bylaws or other organizational documents, as amended, or in violation of any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or
authority applicable to the Company or any of its Subsidiaries, which violation, individually or in the aggregate, is reasonably likely to have a Material Adverse Effect, and the Company or any of its Subsidiaries is not in default (and there exists
no condition which, with the passage of time or otherwise, would constitute a default) in the performance of any bond, debenture, note or any other evidence of 
  

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 indebtedness or any indenture, mortgage, deed of trust or any other material agreement or instrument to which the Company
or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound or by which the property of the Company is bound, which default is reasonably likely to have a Material Adverse Effect. 
  
 3.8 Governmental Permits, Etc. The Company and its Subsidiaries has
all necessary franchises, licenses, certificates and other authorizations from any foreign, federal, state or local government or governmental agency, department or body (including any applicable gaming agency, department or body) that are currently
necessary for the operation of the business of the Company and its Subsidiaries as currently conducted, except where the failure to currently possess such franchises, licenses, certificates and other authorizations is not reasonably be expected to
have a Material Adverse Effect. 
  
 3.9 Financial Statements.
The financial statements of the Company and the related notes contained in the SEC Reports present fairly and accurately in all material respects, in accordance with generally accepted accounting principles, the financial position of the Company
and its Subsidiaries as of the dates indicated, and the results of its operations, cash flows and the changes in shareholders’ equity for the periods therein specified, subject, in the case of unaudited financial statements for interim periods,
to normal year-end audit adjustments. Such financial statements (including the related notes) have been prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods therein specified,
except that unaudited financial statements may not contain all footnotes required by generally accepted accounting principles. 
  
 3.10 No Material Adverse Change. Except as disclosed in the SEC Reports since September 30, 2003, there has not been (i) a change that has had or
is reasonably likely to have a Material Adverse Effect, (ii) any obligation, direct or contingent, that is material to the Company or any of its Subsidiaries considered as one enterprise, incurred by the Company or any of its Subsidiaries, except
obligations incurred in the ordinary course of business, (iii) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company or any of its Subsidiaries, or (iv) any loss or damage (whether or not insured) to the
physical property of the Company or any of its Subsidiaries which has been sustained which has a Material Adverse Effect. 
  
 3.11 Nasdaq Compliance. The Company’s Common Stock is registered pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), and is listed on the Nasdaq SmallCap Market (the “Nasdaq SmallCap Market”), and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the Nasdaq SmallCap Market. The issuance of the Shares and the Warrant Shares does not require shareholder approval, including, without
limitation, pursuant to the Nasdaq Marketplace Rule 4350(i). 
  
 3.12 Reporting Status. The Company has timely made all filings required under the Exchange Act during the 12 months preceding the date of this Agreement, and all of those documents complied in all material respects with the
SEC’s requirements as of their respective filing dates, and the information contained therein as of the respective dates thereof did not contain an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein in light of the circumstances under which they were made not misleading. The Company is currently eligible to register the resale of Common Stock in a secondary offering on a registration statement
on Form S-3 under the Securities Act. 
  
 3.13 Contracts.
Except for matters which are not reasonably likely to have a Material Adverse Effect and those contracts that are substantially or fully performed or expired by their terms, the 
  

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 contracts listed as exhibits to the SEC Reports that are material to the Company and all amendments thereto, are in full
force and effect on the date hereof, and none of the Company, its Subsidiaries nor, to the Company’s knowledge, any other party to such contracts is in breach of or default under any of such contracts. 
  
 3.14 Listing. The Company will use its best efforts to maintain the
listing and trading of its Common Stock (including the Common Shares and the Warrant Shares) on the Nasdaq SmallCap Market and will comply with all requirements of the NASD and the Nasdaq SmallCap Market. 
  
 4. Representations, Warranties and Covenants of the Investor.

  
 4.1 Investor Knowledge and Status. The Investor
represents and warrants to, and covenants with, the Company that: (i) the Investor is an “accredited investor” as defined in Regulation D under the Securities Act, is knowledgeable, sophisticated and experienced in making, and is qualified
to make decisions with respect to, investments in securities presenting an investment decision like that involved in the purchase of the Shares, and has requested, received, reviewed and considered all information it deemed relevant in making an
informed decision to purchase the Shares; (ii) the Investor understands that the Shares are “restricted securities” and have not been registered under the Securities Act and is acquiring the number of Shares set forth in paragraph 3 of the
Stock Purchase Agreement in the ordinary course of its business and for its own account for investment only, has no present intention of distributing any of such Shares and has no arrangement or understanding with any other persons regarding the
distribution of such Shares (this representation and warranty not limiting the Investor’s right to sell Shares pursuant to the Registration Statement or otherwise, or other than with respect to any claim arising out of a breach of this
representation and warranty, the Investor’s right to indemnification under Section 6.3); (iii) the Investor will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or
otherwise acquire or take a pledge of) any of the Shares or the Warrant Shares except in compliance with the Securities Act, applicable state securities laws and the respective rules and regulations promulgated thereunder; (iv) the Investor has
answered all questions in paragraph 3 of the Stock Purchase Agreement and the Investor Questionnaire attached hereto as Exhibit B for use in preparation of the Registration Statement and the answers thereto are true and correct as of the date hereof
and will be true and correct as of the Closing Date; (v) the Investor will notify the Company promptly of any change in any of such information until such time as the Investor has sold all of its Shares or until the Company is no longer required to
keep the Registration Statement effective; and (vi) the Investor has, in connection with its decision to purchase the number of Shares set forth in paragraph 3 of the Stock Purchase Agreement, relied only upon the representations and warranties of
the Company contained herein. Investor understands that the issuance of the Shares, the Warrants and, upon exercise, the Warrant Shares to the Investor have not been registered under the Securities Act, or registered or qualified under any state
securities law in reliance on specific exemptions therefrom, which exemptions may depend upon, among other things, the bona fide nature of the Investor’s investment intent as expressed herein and the information provided in the Investor
Questionnaire. No person is authorized to provide any representation which is inconsistent or in addition to those in the SEC Reports. The Investor acknowledges that it has not received or relied on any such representations. 
  
 4.2 Registration Required. The Investor hereby covenants with the
Company not to make any sale of the Shares or the Warrant Shares without complying with the provisions of this Agreement, including Section 6.2 hereof, and without effectively causing the prospectus delivery requirement under the Securities Act to
be satisfied (unless the Investor is selling such Shares or Warrant Shares in a transaction not subject to the prospectus delivery requirement), and the Investor acknowledges that the certificates evidencing the Shares and/or Warrant Shares will be
imprinted with a legend that prohibits their transfer except in accordance therewith. The Investor acknowledges that as set forth in, and subject to the provisions of, Section 6.2, there may occasionally be times when the Company, based 

 

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 on the advice of its counsel, determines that it must suspend the use of the Prospectus forming a part of the
Registration Statement until such time as an amendment to the Registration Statement has been filed by the Company and declared effective by the SEC or until the Company has amended or supplemented such Prospectus. 
  
 4.3 Power and Authority. The Investor further represents and warrants
to, and covenants with, the Company that (i) the Investor has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the
execution, delivery and performance of this Agreement, and (ii) this Agreement constitutes a valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law) and except as the indemnification agreements of the Investors herein may be legally unenforceable. 
  
 4.4 No Investment, Tax or Legal Advice. The Investor understands that nothing in the SEC Reports, this Agreement, or
any other materials presented to the Investor in connection with the purchase and sale of the Shares constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has
deemed necessary or appropriate in connection with its purchase of Shares. 
  
 4.5 Confidential Information. The Investor covenants that from the date hereof it will maintain in confidence all material non-public information regarding the Company received by the Investor from the Company,
including the receipt and content of any Suspension Notice (as defined in Section 6.2(c)) until such information (a) becomes generally publicly available other than through a violation of this provision by the Investor or its agents or (b) is
required to be disclosed in legal proceedings (such as by deposition, interrogatory, request for documents, subpoena, civil investigation demand, filing with any governmental authority or similar process); provided, however, that before making any
disclosure in reliance on this Section 4.7, the Investor will give the Company at least 15 days prior written notice (or such shorter period as required by law) specifying the circumstances giving rise thereto and will furnish only that portion of
the non-public information which is legally required and will exercise its best efforts to obtain reliable assurance that confidential treatment will be accorded any non-public information so furnished. 
  
 4.6 Additional Acknowledgement. The Investor acknowledges that it has
independently evaluated the merits of the transactions contemplated by this Agreement, that it has independently determined to enter into the transactions contemplated hereby, that it is not relying on any advice from or evaluation by any other
Investor, and that it is not acting in concert with any other Investor in making its purchase of the Shares hereunder. The Investor has not taken any actions that would deem such Investor to be a member of a “group” for purposes of Section
13(d) of the Exchange Act. 
  

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 5. Survival of Representations, Warranties and Agreements. Notwithstanding any investigation made
by any party to this Agreement, all covenants, agreements, representations and warranties made by the Company and the Investor herein shall survive the execution of this Agreement, the delivery to the Investor of the Shares being purchased and the
payment therefor. 
  
 6. Registration of the Shares; Compliance
with the Securities Act. 
  
 6.1 Registration Procedures
and Expenses. The Company shall: 
  
 (a) subject to
receipt of necessary information from the Investor, use commercially reasonable efforts to prepare and file with the SEC, within ten (10) business days after the Closing Date, a registration statement on Form S-3 (the “Registration
Statement”) to enable the resale of the Shares, the Warrant Shares and the shares of Common Stock that may be issued upon conversion of that certain Secured Convertible Note, by and among the Company, Last Chance, Inc., a Nevada
corporation, and the Investor, from time to time through the automated quotation system of the Nasdaq SmallCap Market or in privately-negotiated transactions; 
  

(b) use its best efforts, subject to receipt of necessary information from the Investors, to cause the Registration Statement to become
effective as soon as practicable, but in no event later than sixty (60) days after the Registration Statement is filed by the Company. If the Registration Statement has not been declared effective by the SEC on or before the date that is 15 business
days after the Closing Date (the “Required Effective Date”), the Company shall, on the following day and for a period of 59 days thereafter, make a payment to the Investor as compensation for such delay (the “Late Registration
Payments”) equal to $500 per day. If the Registration Statement has not been declared effective by the SEC on or before the date that is 75 days after the Closing Date, the Company shall, on the 76th day and thereafter, until the Registration Statement is declared effective by the SEC, make a payment to the Investor as compensation for such delay (the
“Additional Late Registration Payments”) equal to $1,000 per day. The Late Registration Payments and the Additional Late Registration Payments will be paid to the Investor by wire transfer or check within five (5) business days
after each calendar month during which any such payments become due and payable to the Investor; 
  
 (c) use its best efforts to prepare and file with the SEC such amendments and supplements to the Registration Statement and the Prospectus used in
connection therewith as may be necessary to keep the Registration Statement current and effective for a period not exceeding, with respect to each Investor’s Shares purchased hereunder, the earlier of (i) the second anniversary of the Closing
Date, (ii) the date on which the Investor may sell all Shares then held by the Investor without restriction by the volume limitations of Rule 144(e) of the Securities Act or (iii) such time as all Shares purchased by such Investor in this Offering
have been sold pursuant to a registration statement, and to notify each Investor promptly upon the Registration Statement and each post-effective amendment thereto, being declared effective by the SEC; 
  
 (d) furnish to the Investor with respect to the Shares registered
under the Registration Statement such number of copies of the Registration Statement, Prospectuses (including supplemental prospectuses) and preliminary versions of the Prospectus filed with the Securities Exchange Commission (“Preliminary
Prospectuses”) in conformity with the requirements of the Securities Act and such other documents as the Investor may reasonably request, in order to facilitate the public sale or other disposition of all or any of the Shares by the
Investor; provided, however, that unless waived by the Company in writing, the obligation of the Company to deliver copies of Prospectuses or Preliminary Prospectuses to the Investor shall be subject to the receipt by the Company of reasonable
assurances from the Investor that the Investor will comply with the applicable provisions of the Securities Act and of such other securities or blue sky laws as may be applicable in connection with any use of such Prospectuses or Preliminary
Prospectuses; 
  

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 (e) file documents required of the Company for normal blue sky clearance in states specified in
writing by the Investor; provided, however, that the Company shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so qualified or has not so consented; 
  
 (f) bear all expenses (other than underwriting discounts and
commissions, if any) in connection with the procedures in paragraph (a) through (e) of this Section 6.1 and the registration of the Shares pursuant to the Registration Statement; and 
  
 (g) advise the Investors, promptly after it shall receive notice or obtain knowledge of the issuance of any stop
order by the SEC delaying or suspending the effectiveness of the Registration Statement or of the initiation of any proceeding for that purpose; and it will promptly use its commercially reasonable efforts to prevent the issuance of any stop order
or to obtain its withdrawal at the earliest possible moment if such stop order should be issued. 
  
 (h) With a view to making available to the Investor the benefits of Rule 144 (or its successor rule) and any other rule or regulation of the SEC
that may at any time permit the Investor to sell Shares to the public without registration, the Company covenants and agrees to use its commercially reasonable efforts to: (i) make and keep public information available, as those terms are understood
and defined in Rule 144, until the earlier of (A) such date as all of the Investor’s Shares and the Warrant Shares may be resold pursuant to Rule 144(k) or any other rule of similar effect or (B) such date as all of the Investor’s Shares
and/or the Warrant Shares shall have been resold; (ii) file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and under the Exchange Act; and (iii) furnish to the Investor upon written
request, as long as the Investor owns any Shares, (A) a written statement by the Company that it has complied with the reporting requirements of the Securities Act and the Exchange Act, (B) a copy of the Company’s most recent Annual Report on
Form 10-K or Quarterly Report on Form 10-Q, and (C) such other information as may be reasonably requested in order to avail the Investor of any rule or regulation of the SEC that permits the selling of any such Shares without registration.

  
 It shall be a condition precedent to the obligations of the
Company to take any action pursuant to this Section 6.1 that the Investor shall furnish to the Company such information regarding itself, the Shares and/or the Warrant Shares to be sold by Investor, and the intended method of disposition of such
securities as shall be required to effect the registration of the Shares and/or the Warrant Shares. 
  
 The Company understands that the Investor disclaims being an underwriter, but the Investor being deemed an underwriter by the SEC shall not relieve the
Company of any obligations it has hereunder. 
  
 6.2 Transfer
of Shares After Registration; Suspension. 
  
 (a) The
Investor agrees that it will not effect any Disposition of the Shares, the Warrant Shares or its right to purchase the Warrant Shares that would constitute a sale within the meaning of the Securities Act other than transactions exempt from the
registration requirements of the Securities Act, except as contemplated in the Registration Statement referred to in Section 6.1 and as described below, and that it will promptly notify the Company of any material changes in the information set
forth in the Registration Statement regarding the Investor or its plan of distribution. 
  

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 (b) Except in the event that paragraph (c) below applies, the Company shall: (i) if deemed
necessary by the Company, prepare and file from time to time with the SEC a post-effective amendment to the Registration Statement or a supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by
reference or file any other required document so that such Registration Statement will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading, and so that, as thereafter delivered to purchasers of the Shares being sold thereunder, such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading; (ii) provide the Investor copies of any documents filed pursuant to Section 6.2(b)(i); and (iii) upon request, inform each Investor who so
requests that the Company has complied with its obligations in Section 6.2(b)(i) (or that, if the Company has filed a post-effective amendment to the Registration Statement which has not yet been declared effective, the Company will notify the
Investor to that effect, will use its best efforts to secure the effectiveness of such post-effective amendment as promptly as possible and will promptly notify the Investor pursuant to Section 6.2(b)(i) hereof when the amendment has become
effective). 
  
 (c) Subject to paragraph (d) below, in the
event: (i) of any request by the SEC or any other federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to the Registration Statement or related Prospectus or for
additional information; (ii) of the issuance by the SEC or any other federal or state governmental authority of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; (iii) of
the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Shares and/or the Warrant Shares for sale in any jurisdiction or the initiation of any proceeding for
such purpose; or (iv) of any event or circumstance which necessitates the making of any changes in the Registration Statement or Prospectus, or any document incorporated or deemed to be incorporated therein by reference, so that, in the case of the
Registration Statement, it will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the Prospectus, it
will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; then
the Company shall promptly deliver a certificate in writing to the Investor (the “Suspension Notice”) to the effect of the foregoing and, upon receipt of such Suspension Notice, the Investor will refrain from selling any Shares
pursuant to the Registration Statement (a “Suspension”) until the Investors are advised in writing by the Company that the current Prospectus may be used, and has received copies of any additional or supplemental filings that are
incorporated or deemed incorporated by reference in any such Prospectus. In the event of any Suspension, the Company will use its reasonable best efforts to cause the use of the Prospectus so suspended to be resumed as soon as reasonably practicable
after delivery of a Suspension Notice to the Investors. In addition to and without limiting any other remedies (including, without limitation, at law or at equity) available to the Investor, the Investor shall be entitled to specific performance in
the event that the Company fails to comply with the provisions of this Section 6.2(c). 
  
 (d) Notwithstanding the foregoing paragraphs of this Section 6.2, the Company shall use its best efforts to ensure that the Investor shall not be prohibited from selling Shares and/or the Warrant Shares under
the Registration Statement as a result of Suspensions on more than two occasions of not more than 30 days in any twelve month period, and any such Suspension must be separated by a period of at least 30 days from a prior Suspension. 
  

 9 

 (e) If a Suspension is not then in effect, the Investor may sell Shares and/or the Warrant
Shares under the Registration Statement, provided that it arranges for delivery of a current Prospectus to the transferee of such Shares and/or the Warrant Shares. Upon receipt of a request therefor, the Company will provide an adequate number of
current Prospectuses to the Investor and to any other parties requiring such Prospectuses. 
  
 (f) In the event of a sale of Shares and/or the Warrant Shares by the Investor, unless such requirement is waived by the Company in writing, the Investor must also deliver to the Company’s transfer agent,
with a copy to the Company, a Certificate of Subsequent Sale substantially in the form attached hereto as Exhibit C, so that the shares may be properly transferred. 
  
 In the event of any sale of the Shares and/or the Warrant Shares in accordance with this Agreement, the restrictive legend
shall be removed and the Company shall issue a certificate without such legend to the purchaser of any such Shares and/or the Warrant Shares, if (a) the sale of such Shares and/or the Warrant Shares is registered under the Registration Statement
(including registration pursuant to Rule 415 under the Securities Act); (b) the holder has provided the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that
a public sale or transfer of such Shares may be made without registration under the Securities Act; or (c) such Shares are sold in compliance with Rule 144 under the Securities Act. 
  
 6.3 Indemnification. For the purpose of this Section 6.3: 
  
 (a) the term “Registration Statement” shall include
any final Prospectus, exhibit, supplement or amendment included in or relating to, and any document incorporated by reference in, the Registration Statement (or deemed to be a part thereof) referred to in Section 6.1; and 
  
 (b) the term “untrue statement” shall include any
untrue statement or alleged untrue statement, or any omission or alleged omission to state in the Registration Statement a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading. 
  
 (c) (i)
The Company agrees to indemnify and hold harmless Investor from and against any losses, claims, damages or liabilities to which Investor may become subject (under the Securities Act or otherwise) insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon (i) any untrue statement of a material fact contained in the Registration Statement, (ii) any inaccuracy in the representations and warranties of the Company
contained in the Agreement or the failure of the Company to perform its obligations hereunder or (iii) any failure by the Company to fulfill any undertaking included in the Registration Statement, and the Company will reimburse Investor for any
reasonable legal expense or other actual accountable out of pocket expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim; provided, however, that the Company shall not be liable in any
such case to the extent that such loss, claim, damage or liability arises out of, or is based upon, an untrue statement made in such Registration Statement in reliance upon and in conformity with written information furnished to the Company by or on
behalf of Investor specifically for use in preparation of the Registration Statement, or any inaccuracy in representations made by Investor in the Investor Questionnaire or the failure of Investor to comply with its covenants and agreements
contained in Sections 4.1, 4.2 or 6.2 hereof or any statement or omission in any Prospectus that is corrected in any subsequent Prospectus that was delivered to Investor prior to the pertinent sale or sales by Investor. 
  
 (ii) The Investor agrees to indemnify and hold harmless the Company
(and each person, if any, who controls the Company within the meaning of Section 15 of the 
  

 10 

 Securities Act, each officer of the Company who signs the Registration Statement and each director of the Company) from
and against any losses, claims, damages or liabilities to which the Company (or any such officer, director or controlling person) may become subject (under the Securities Act or otherwise), insofar as such losses, claims, damages or liabilities (or
actions or proceedings in respect thereof) arise out of, or are based upon, (i) any failure to comply with the covenants and agreements contained in Section 4.1, 4.2 or 6.2 hereof, or (ii) any untrue statement of a material fact contained in the
Registration Statement if such untrue statement was made in reliance upon and in conformity with written information furnished by or on behalf of the Investor specifically for use in preparation of the Registration Statement, and the Investor will
reimburse the Company (or such officer, director or controlling person), as the case may be, for any reasonable legal expense or other actual accountable out-of-pocket expenses reasonably incurred in investigating, defending or preparing to defend
any such action, proceeding or claim. The obligation to indemnify shall be limited to the net amount of the proceeds received by the Investor from the sale of the Shares pursuant to the Registration Statement. 
  
 (iii) Promptly after receipt by any indemnified person of a notice of
a claim or the beginning of any action in respect of which indemnity is to be sought against an indemnifying person pursuant to this Section 6.3, such indemnified person shall notify the indemnifying person in writing of such claim or of the
commencement of such action, but the omission to so notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party under this Section 6.3 (except to the extent that such omission materially and
adversely affects the indemnifying party’s ability to defend such action) or from any liability otherwise than under this Section 6.3. Subject to the provisions hereinafter stated, in case any such action shall be brought against an indemnified
person, the indemnifying person shall be entitled to participate therein, and, to the extent that it shall elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, shall be
entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such indemnified person of its election to assume the defense thereof (unless it has failed to
assume the defense thereof and appoint counsel reasonably satisfactory to the indemnified party), such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in
connection with the defense thereof; provided, however, that if there exists or shall exist a conflict of interest that would make it inappropriate, in the reasonable opinion of counsel to the indemnified person, for the same counsel to represent
both the indemnified person and such indemnifying person or any affiliate or associate thereof, the indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided, however, that no indemnifying
person shall be responsible for the fees and expenses of more than one separate counsel (together with appropriate local counsel) for all indemnified parties. In no event shall any indemnifying person be liable in respect of any amounts paid in
settlement of any action unless the indemnifying person shall have approved the terms of such settlement; provided that such consent shall not be unreasonably withheld. No indemnifying person shall, without the prior written consent of the
indemnified person, effect any settlement of any pending or threatened proceeding in respect of which any indemnified person is or could reasonably have been a party and indemnification could have been sought hereunder by such indemnified person,
unless such settlement includes an unconditional release of such indemnified person from all liability on claims that are the subject matter of such proceeding. 
  

(iv) If the indemnification provided for in this Section 6.3 is unavailable to or insufficient to hold harmless an indemnified party under
subsection (d)(i) or (d)(ii) above in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and the Investor on the other in
connection with the statements or omissions or other matters which resulted in 
  

 11 

 such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among other things, in the case of an untrue statement, whether the untrue statement relates to information supplied by the Company on the one hand or the Investor on the other
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement. The Company and the Investor agree that it would not be just and equitable if contribution pursuant to this
subsection (d) were determined by pro rata allocation (even if the Investors were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to above in this
subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (d), the Investor shall not be required to contribute any amount in
excess of the amount by which the gross amount received by the Investor from the sale of the Shares to which such loss relates exceeds the amount of any damages which the Investor has otherwise been required to pay by reason of such untrue
statement, except in the case of fraudulent or willful misconduct. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation. The Investors’ obligations in this subsection to contribute are several in proportion to their sales of Shares to which such loss relates and not joint. 
  
 The parties to this Agreement hereby acknowledge that they are sophisticated
business persons who were represented by counsel during the negotiations regarding the provisions hereof including, without limitation, the provisions of this Section 6.3, and are fully informed regarding said provisions. They further acknowledge
that the provisions of this Section 6.3 fairly allocate the risks in light of the ability of the parties to investigate the Company and its business in order to assure that adequate disclosure is made in the Registration Statement as required by the
Securities Act and the Exchange Act. 
  
 6.4 Termination of
Conditions and Obligations. The conditions precedent imposed by Section 4 or this Section 6 upon the transferability of the Shares shall cease and terminate as to any particular number of the Shares and/or the Warrant Shares when such Shares
and/or the Warrant Shares shall have been effectively registered under the Securities Act and sold or otherwise disposed of in accordance with the intended method of disposition set forth in the Registration Statement covering such Shares and/or the
Warrant Shares or at such time as an opinion of counsel satisfactory to the Company shall have been rendered to the effect that such conditions are not necessary in order to comply with the Securities Act. 
  
 6.5 Information Available. So long as the Registration Statement is
effective covering the resale of Shares and the Warrant Shares owned by the Investor, the Company will furnish (or, to the extent such information is available electronically through the Company’s filings with the SEC, the Company will make
available) to the Investor: 
  
 (a) as soon as
practicable after it is available, one copy of (i) its Annual Report to Shareholders (which Annual Report shall contain financial statements audited in accordance with generally accepted accounting principles by a national firm of certified public
accountants) and (ii) if not included in substance in the Annual Report to Shareholders, its Annual Report on Form 10-K (the foregoing, in each case, excluding exhibits); 
  

 12 

 (b) upon the reasonable request of the Investor, all exhibits excluded by the
parenthetical to subparagraph (a)(ii) of this Section 6.5 as filed with the SEC and all other information that is made available to shareholders; and 
  
 (c) upon the reasonable request of the Investor, an adequate number of copies of the Prospectuses to supply to any other party requiring such
Prospectuses; and the Company, upon the reasonable request of the Investor, will meet with the Investor or a representative thereof at the Company’s headquarters during the Company’s normal business hours to discuss all information
relevant for disclosure in the Registration Statement covering the Shares and the Warrant Shares and will otherwise reasonably cooperate with the Investor conducting an investigation for the purpose of reducing or eliminating the Investor’s
exposure to liability under the Securities Act, including the reasonable production of information at the Company’s headquarters; provided, that the Company shall not be required to disclose any confidential information to or meet at its
headquarters with the Investor until and unless the Investor shall have entered into a confidentiality agreement in form and substance reasonably satisfactory to the Company with the Company with respect thereto. 
  
 6.6 Public Statements. The Company agrees to disclose on a Current
Report on Form 8-K the existence of the Offering and the material terms, thereof, including pricing, within five (5) business day after the Closing. Such Current Report on Form 8-K shall include a form of this Agreement as an exhibit thereto. The
Company will not issue any public statement, press release or any other public disclosure listing Investor as one of the purchasers of the Shares or the Warrant Shares without Investor’s prior written consent, except as may be required by
applicable law or rules of any exchange on which the Company’s securities are listed. 
  
 6.7 Limits on Share Repurchases. In the event that the Company elects to repurchase any outstanding shares of Common Stock, the Company shall offer to repurchase a portion of the Investor’s Shares at the
then prevailing market price in an amount equal to Investor’s pro rata share of the aggregate shares being repurchased by the Company to ensure that Investor shall have the opportunity to maintain an ownership interest in the Company at less
than 10% of the outstanding shares of Common Stock. The Company’s obligation under this Section 6.7 shall immediately terminate in the event that Investor acquires any additional shares of Common Stock (including, without limitation, Warrant
Shares and shares upon conversion of outstanding indebtedness owed to Investor) and, as a result of any such acquisition, Investor owns 10% or more of the outstanding shares of Common Stock. 
  

 13 

 7. Notices. All notices, requests, consents and other communications hereunder shall be in
writing, shall be mailed (A) if within domestic United States, by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile, or (B) if delivered from outside the United States,
by International Federal Express (or comparable service) or facsimile, and shall be deemed given (i) if delivered by first-class registered or certified mail domestic, three business days after so mailed, (ii) if delivered by nationally recognized
overnight carrier, one (1) business day after so mailed, (iii) if delivered by International Federal Express (or comparable service), two (2) business days after so mailed, (iv) if delivered by facsimile, upon electric confirmation of receipt and
shall be delivered as addressed as follows, or at such other address or addresses as may have been furnished in writing by a party to another party pursuant to this paragraph: 
  
 (a) if to the Company, to: 
  

The Sands Regent 
 345 North Arlington Avenue 
 Reno, Nevada 89501 
 Attention: Rob Medeiros 
 Telephone: (775) 348-2200 
 Telecopy: (775) 348-6241 
  
 with a copy mailed to: 
  
 Patrick T. Seaver, Esq. 
 Latham & Watkins LLP 
 650 Town Center Drive, 20th Floor 
 Costa Mesa, California 92626 
 Telephone: (714) 540-1235 
 Telecopy: (714) 755-8290 
  
 (b) if to the Investor, at its address on the signature page to the
Stock Purchase Agreement, with a copy mailed to: Timothy J. Henderson, Henderson & Morgan, LLC, 164-B Hubbard Way, Reno, Nevada 89502, telephone number (775) 825-7000, facsimile number (775) 825-7738. 
  
 8. Changes. This Agreement may not be modified or amended except
pursuant to an instrument in writing signed by the Company and the Investor. 
  
 9. Headings. The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to be part of this Agreement. 
  
 10. Severability. If any provision contained in this Agreement is
determined to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 
  
 11. Governing Law. This Agreement shall be governed by, and construed
in accordance with, the internal laws of the State of Nevada, without giving effect to the principles of conflicts of law. 
  
 12. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. 
  

 14 

 EXHIBIT A 
  
 The Sands Regent 
  
 STOCK CERTIFICATE QUESTIONNAIRE 
  
 Pursuant to Section 4 of the Agreement, please provide us with the following information: 
  

					
	1.	  	The exact name in which your Shares are to be registered (this is the name that will appear on your stock certificate(s)). You may use a nominee name if appropriate:	 	

			
	2.	  	The relationship between the Investor and the registered holder listed in response to item 1 above:	 	

			
	3.	  	The mailing address of the registered holder listed in response to item 1 above:	 	

			
	4.	  	The Social Security Number or Tax Identification Number of the registered holder listed in the response to item 1 above:	 	

  

 1 

 EXHIBIT B 
  
 The Sands Regent 
  
 INVESTOR QUESTIONNAIRE 
  
 (all information will be treated confidentially) 
  
 To: The Sands Regent, 
  
 This Investor Questionnaire (“Questionnaire”) must be completed by each potential investor in connection with the offer and sale of the
shares of the common stock, par value $.10 per share (the “Shares”) and the related issuance of warrants (the “Warrants”), of The Sands Regent (the “Company”). The Shares are being offered and sold
(including those underlying the Warrants being issued) by the Company without registration under the Securities Act of 1933, as amended (the “Securities Act”), and the securities laws of certain states, in reliance on the exemptions
contained in Section 4 of the Securities Act and on Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws. The Company must determine that a potential investor meets certain suitability requirements
before offering or selling Shares to such investor. The purpose of this Questionnaire is to assure the Company that each investor will meet the applicable suitability requirements. The information supplied by you will be used in determining whether
you meet such criteria, and reliance upon the private offering exemption from registration is based in part on the information herein supplied. 
  
 This Questionnaire does not constitute an offer to sell or a solicitation of an offer to buy any security. Your answers will be kept strictly
confidential. However, by signing this Questionnaire you will be authorizing the Company to provide a completed copy of this Questionnaire to such parties as the Company deems appropriate in order to ensure that the offer and sale of the Shares will
not result in a violation of the Securities Act or the securities laws of any state and that you otherwise satisfy the suitability standards applicable to purchasers of the Shares. All potential investors must answer all applicable questions and
complete, date and sign this Questionnaire. Please print or type your responses and attach additional sheets of paper if necessary to complete your answers to any item. 
  
 A. BACKGROUND INFORMATION 
  
  

					
	 Name:  David R. Belding

	
	 Business Address:  P.O. Box 19278

	 	  	(Number and Street)	  	 
			
	Jean	  	NV	  	89019
	

	(City)	  	(State)	  	(Zip Code)
	
	 Telephone Number: (702)    632-6742

	
	 Residence Address:  

	 	  	(Number and Street)	  	 
			
	Las Vegas	  	NV	  	89113
	

	(City)	  	(State)	  	(Zip Code)
	
	 Telephone Number: (702)    528-8811

	
	If an individual:
			
	 Age:    58

	  	 Citizenship:    U.S.

	  	 Where registered to vote:  Las Vegas

	
	If a corporation, partnership, limited liability company, trust or other entity:
	
	 Type of entity:  N/A

			
	 State of formation:  N/A

	  	 	  	 Date of formation:  N/A

	
	 Social Security or Taxpayer Identification No.  

		
	 Send all correspondence to (check one):             Residence Address
	  	    X     Business Address

  

 1 

 B. STATUS AS ACCREDITED INVESTOR 
  
 The undersigned is an “accredited investor” as such term is defined in Regulation
D under the Securities Act, because at the time of the sale of the Shares the undersigned falls within one or more of the following categories (Please initial one or more, as applicable): 
  
              (1) a bank
as defined in Section 3(a)(2) of the Securities Act, or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity; a broker or dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance company as defined in Section 2(13) of the Securities Act; an investment company registered under the Investment Company Act of 1940 or a business development company as
defined in Section 2(a)(48) of that act; a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; a plan established and maintained by a state,
its political subdivisions, or any agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000; an employee benefit plan within the meaning of the
Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment
adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with the investment decisions made solely by persons that are accredited investors;1 
  
              (2) a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940; 
  
              (3) an
organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the Shares offered, with total assets in excess
of $5,000,000; 
  
     X     (4) a
natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of such person’s purchase of the Shares exceeds $1,000,000; 
  
     X     (5) a natural person who had an individual income in excess of $200,000 in each of
the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; 
  
              (6) a trust,
with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D; and 
  
              (7) an entity
in which all of the equity owners are accredited investors (as defined above). 

	1	As used in this Questionnaire, the term “net worth” means the excess of total assets over total liabilities. In computing net worth for the purpose of
subsection (4), the principal residence of the investor must be valued at cost, including cost of improvements, or at recently appraised value by a professional appraiser. In determining income, the investor should add to the investor’s
adjusted gross income any amounts attributable to tax exempt income received, losses claimed as a limited partner in any limited partnership, deductions claimed for depreciation, contributions to an IRA or KEOGH retirement plan, alimony payments,
and any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income. 

  

 B-2 

 C. REPRESENTATIONS 
  
 The undersigned hereby represents and warrants to the Company as follows: 
  
 1. Any purchase of the Shares would be solely for the account of the undersigned and not for the account of any other
person or with a view to any resale, fractionalization, division, or distribution thereof. 
  
 2. The information contained herein is complete and accurate and may be relied upon by the Company, and the undersigned will notify the Company immediately of any material change in any of such information
occurring prior to the closing, if any, with respect to the purchase of Shares by the undersigned or any co-purchaser. 
  
 3. There are no suits, pending litigation, or claims against the undersigned that could materially affect the net worth of the undersigned as
reported in this Questionnaire. 
  
 4. The undersigned
acknowledges that there may occasionally be times when the Company, based on the advice of its counsel, determines that it must suspend the use of the Prospectus forming a part of the Registration Statement (as such terms are defined in the Stock
Purchase Agreement to which this Questionnaire is attached) until such time as an amendment to the Registration Statement has been filed by the Company and declared effective by the Securities and Exchange Commission or until the Company has amended
or supplemented such Prospectus. The undersigned is aware that, in such event, the Shares will not be subject to ready liquidation, and that any Shares purchased by the undersigned would have to be held during such suspension. The overall commitment
of the undersigned to investments which are not readily marketable is not excessive in view of the undersigned’s net worth and financial circumstances, and any purchase of the Shares will not cause such commitment to become excessive. The
undersigned is able to bear the economic risk of an investment in the Shares. 
  
 5. The undersigned has carefully considered the potential risks relating to the Company and a purchase of the Shares and fully understands that the Shares are speculative investments which involve a high degree
of risk of loss of the undersigned’s entire investment. Among others, the undersigned has carefully considered each of the risks described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2002. 
  
 6. The following is a list of all states and other jurisdictions in
which blue sky or similar clearance will be required in connection with the undersigned’s purchase of the Shares:         Nevada        . 

 
 The undersigned agrees to notify the Company in writing of any additional states or other
jurisdictions in which blue sky or similar clearance will be required in connection with the undersigned’s purchase of the Shares. 
  

 B-3 

 IN WITNESS WHEREOF, the undersigned has executed this Questionnaire this 25th day of March, 2004, and declares under oath
that it is truthful and correct. 
  

			
	 Print Name

		
	 By:
	 	   /s/    DAVID R. BELDING

	 Signature

		
	 Title:
	 	   N/A

	 	 	 (required for any purchaser that is a corporation,
 partnership, trust or other entity)

  

 B-4 

 EXHIBIT C 
  
 The Sands Regent 
 CERTIFICATE OF SUBSEQUENT SALE 
  
 U.S. Stock Transfer Corporation

 1745 Gardena Avenue 
 Glendale, California 91204-2991

 Attention: Neil Rosso 
  

	 	RE:	Sale of Shares of Common Stock of The Sands Regent (the “Company”) pursuant to the Company’s Prospectus dated March 25, 2004 (the “Prospectus”)

  
 Dear Sir/Madam: 
  
 The undersigned hereby certifies, in connection with the sale of shares of
Common Stock of the Company included in the table of Selling Shareholders in the Prospectus, that the undersigned has sold the Shares pursuant to the Prospectus and in a manner described under the caption “Plan of Distribution” in the
Prospectus and that such sale complies with all applicable securities laws, including, without limitation, the Prospectus delivery requirements of the Securities Act of 1933, as amended. 
  
 Selling Stockholder (the beneficial owner): 

	 	

  
 Record Holder (e.g., if held in name of nominee): 

	 	

  
 Restricted Stock Certificate No.(s): 

	 	

  
 Number of Shares Sold: 

	 	

  
 Date of Sale: 

	 	

  
 In the event that you receive a stock certificate(s) representing more shares of Common Stock than have been sold by the undersigned, then you should return to the undersigned a newly issued certificate for such
excess shares in the name of the Record Holder and BEARING A RESTRICTIVE LEGEND. Further, you should place a stop transfer on your records with regard to such certificate. 
  

							
	 Dated:

	 	 	 	 	 	 Very truly yours,

				
	 	 	 	 	 	 	 By:

	 	 	 	 	 	 	 Print Name:

	 	 	 	 	 	 	 Title:

  

 1Second Convertible Note

 Exhibit 10.2 
  
 EXECUTION COPY 
  
 THE SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY
JURISDICTION OF THE UNITED STATES. THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND UNDER THE APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN OPINION OF COUNSEL TO THE COMPANY OR
OTHER COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, IF REQUESTED BY THE COMPANY, THAT THERE IS AN APPLICABLE EXEMPTION FROM THE REGISTRATION. 
  
 SECURED CONVERTIBLE NOTE 
  

			
	 $1,604,000
	  	March 25, 2004

  
 Subject to the terms
and conditions of this Convertible Note (the “Note”), for good and valuable consideration received, THE SANDS REGENT, a Nevada corporation (the “Company”), promises to pay to the order of DAVID R. BELDING (the
“Holder”), or his registered assigns, the principal amount of One Million Six Hundred Four Thousand Dollars ($1,604,000), together with an annual simple interest of seven and one-half percent (7.5%) (the “Note Rate”), accrued on
unpaid principal from the date of this Note until paid. Interest on this Note shall be calculated on the basis of a 365-day year and charged on the basis of actual days elapsed. 
  
 The following is a statement of the rights of the Holder of this Note and the terms and conditions to which this Note is
subject, and to which the Holder hereof, by the acceptance of this Note, agrees: 
  
 1 Payment. 
  
 1.1 Interest
on unpaid principal shall be due and payable in arrears within five (5) days after the end of each calendar month, provided that, if such day falls on a Saturday, Sunday or banking holiday in Nevada, such interest shall be due instead on the next
business day until the entire principal is paid. 
  
 1.2 The
entire balance of principal shall be due and payable in full on March 25, 2007; provided, however, that, upon at least 180 calendar days advance written notice to the Company, Holder may in its sole discretion extend the maturity date of this Note
to March 25, 2009 (the “Maturity Date”). 
  
 1.3 Except
as set forth in this Section 1.3, the Company may not prepay all or any amount due under this Note without the prior written consent of the Holder. In the event that the closing price of the common stock, par value $0.10 per share, of the Company
(“Common Stock”) on any trading day (as quoted on Nasdaq or such other stock exchange or quotation system as the Common Stock is then traded) is equal to or greater than $8.15, thereafter, upon 30 days advance written notice (the
“Notice”) to Holder, the Company may, to the extent permitted under the Subordination Agreement to be executed between Holder and the Administrative Agent (as defined below), prepay this Note in whole (or any outstanding balance thereof)
or in part (provided, that, any partial prepayment of this Note shall be in an amount equal to or greater 

 than $250,000 (with amounts exceeding such amount being in increments of $50,000)), without premium or penalty; provided,
however, that, during such 30 day period, the Holder may convert this Note as set forth in Section 2 below in an amount equal to the amount to be prepaid by the Company pursuant to the Notice. 
  
 1.4 Except with respect to Holder’s rights for Conversion as set forth
in Section 2 below, all payments on this Note shall be made in lawful money of the United States of America at the office of the Holder at Gold Strike Hotel, c/o Bruce Hampton, P.O. Box 19278, Jean, Nevada 89019, or at such other place as the Holder
may designate in writing from time to time. 
  
 2
Conversion. 
  
 The principal amount of this Note and all
accrued but unpaid interest due hereunder will convert into shares of Common Stock, if at all, as follows: 
  
 2.1 The Holder of this Note has the right, at the Holder’s option, at any time prior to payment in full of the principal balance of this Note, to
convert this Note and any accrued but unpaid interest thereon, in accordance with the provisions of Section 2.2 hereof, in whole or in part (provided, that, any partial conversion of this Note shall be in an amount equal to or greater than $250,000
(with amounts exceeding such amount being in increments of $50,000)), into fully paid and nonassessable shares of Common Stock. The number of shares of Common Stock into which this Note may be converted (the “Conversion Shares”) shall be
determined by dividing the aggregate outstanding principal amount of this Note and any accrued but unpaid interest thereon by the Note Conversion Price (as defined below). The initial “Note Conversion Price” hereof shall be equal to $6.52.

  
 2.2 Before the Holder shall be entitled to convert this Note
into shares of Common Stock, it shall surrender this Note at the office of the Company or such other place as previously directed by the Company in writing to the Holder, and shall deliver together therewith a fully executed Notice of Conversion, in
the form attached as Exhibit A, postage prepaid, to the Company, and shall state therein the name or names in which the certificate or certificates for shares of Common Stock are to be issued. Such conversion shall be deemed to have been made
immediately prior to the close of business on the date of such surrender of this Note together with the Notice of Conversion, and the person or persons entitled to receive the shares of Common Stock issuable upon such conversion shall be treated for
all purposes as the record holder or holders of such shares of Common Stock as of such date. 
  
 2.3 The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock solely for the purpose of effecting the conversion of this Note such number of its shares of
Common Stock as shall from time to time be sufficient to effect the conversion of this Note. 
  
 2.4 Each certificate representing shares of Common Stock issued upon conversion of this Note shall bear the following legend: 
  

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS 
  

 2 

 AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY JURISDICTION OF THE UNITED STATES.
THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND UNDER THE APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN OPINION OF COUNSEL TO THE COMPANY OR OTHER COUNSEL REASONABLY SATISFACTORY
TO THE COMPANY, IF REQUESTED BY THE COMPANY, THAT THERE IS AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS. 
  
 2.5 After the conversion of this Note in conformity with the provisions of this Section 2 and upon the surrender of this Note at the office of the Company
or such other place as designated, the Company shall issue and deliver to the Holder of this Note a certificate or certificates for the number of full shares of Common Stock issuable upon such conversion. 
  
 2.6 No fractional shares of Common Stock shall be issued upon conversion of
this Note. In lieu of the Company issuing any fractional shares to the Holder upon the conversion of this Note, the Holder shall be entitled to receive a cash payment into the amount equal the remaining balance of this Note following such
conversion. Upon delivery of certificates representing the shares of Common Stock and any payment in lieu of fractional shares, the Company shall be forever released from all its obligations and liabilities under this Note. 
  
 2.7 Notwithstanding anything in this Note to the contrary, the Holder may not
convert this Note into shares of Common Stock, if after giving effect to the conversion, the Holder would beneficially own greater than 9.9% of the outstanding shares of Common Stock or any other series of capital stock of the Company. 

 
 3 Events of Default. 
  
 3.1 The following shall constitute “Events of Default.” 

 
 (a) The Company’s default in the payment of any part of the
principal or interest of the Note when due and payable and such default is not cured by the Company within five (5) business days after the Holder has given the Company written notice of such default. 
  
 (b) Upon the occurrence of an “Event of Default” by the Company
under that certain Credit Agreement to be executed by an among the Company, Last Chance, Inc., a Nevada corporation (“Last Chance”), and Zante, Inc., a Nevada corporation, each of the financial institutions from time to time listed in
Schedule I thereto and Wells Fargo Bank, National Association, a national banking association (the “Administrative Agent”) (as the term Event of Default is defined therein). 
  
 (c) Upon the occurrence of an “Event of Default” by the Company under the Security Agreement (as the term Event
of Default is defined therein). 
  
 (d) The Company, pursuant to
or within the meaning of any Bankruptcy Law, (i) files a voluntary petition in bankruptcy or a petition or answer seeking reorganization, to effect a plan or other arrangement with creditors or any other relief; (ii) consents to the entry of an
order for relief against it in an involuntary case or proceeding; (iii) consents to the appointment of a Custodian of it or for all or substantially all of its assets; or (iv) makes a general assignment for the benefit of its creditors; and

  

 3 

 (e) A court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for
relief against the Company in an involuntary case; (ii) appoints a Custodian of the Company for all, or substantially all its property; or (iii) orders the liquidation of the company, and in any such case the order or decree remains in effect for
ninety (90) days. 
  
 For purposes of this Section 3,
“Bankruptcy Law” shall mean Title 11, U.S. Code or any similar Federal or state law for the relief of debtors, and “Custodian” means any receiver, trustee, assignee, liquidator, sequestrator or similar official under any
Bankruptcy Law. 
  
 3.2 Upon the occurrence of an Event of Default
as set forth in Section 3.1, the outstanding balance of the Note, together with interest accrued thereon but unpaid, shall commence to bear interest at a rate equal to the Note Rate plus five percent per annum (the “Default Rate”) for the
period of time that such Event of Default remains uncured. At the time such Event of Default is cured, the outstanding balance of the Note, together with interest accrued thereon but unpaid, shall again bear interest at a rate equal to the Note
Rate. 
  
 3.3 If an Event of Default (other than an Event of
Default specified in Section 3.1 (d) or (e )) occurs and is continuing, the Holder may, by written notice to the Company (provided that such notice may not be made during the five (5) day cure period provided for in Section 3.1(a)), declare to be
immediately due and payable all principal of and accrued interest on this Note. Such amount shall become immediately due and payable without presentment, demand, protest and notice of any kind or of dishonor, all of which are hereby expressly
waived. If an Event of Default specified in Section 3.1 (d) or (e) occurs, such amount shall become and be immediately due and payable without any declaration or other act on the part of the Holder. Upon payment of such principal amount and
interest, all of the Company’s obligations under this Note shall terminate, and this Note shall be canceled and delivered by Holder to the Company. 
  

3.4 Upon the occurrence of an Event of Default, the Company agrees to pay to Holder all reasonable out-of-pocket costs and expenses (including, without
limitation, reasonable attorneys’ fees and disbursements) incurred by Holder in the enforcement or attempted enforcement of this Agreement, whether or not an action is filed in connection therewith, and in connection with any waiver or
amendment of any term or provision hereof for the benefit of the Borrowers. In the event legal action is commenced for the collection of any sums owing hereunder, the Company agrees that any judgment issued as a consequence of such action against
the Company shall bear an interest rate equal to that of the Default Rate until fully paid.  
  
 3.5 The Holder may waive an existing Default or Event of Default and its consequences by stating so in writing. None of the provisions hereof and none of
the Holder’s rights or remedies on account of any past or future defaults shall be deemed to have been waived by the Holder’s acceptance of any past due payment or by an indulgence granted by the Holder to the Company. The Company waives
presentment, demand, protest and notice of every kind. It is agreed that time is of the essence of this Note. 
  

 4 

 4 Security. 
  
 This Note is secured under that certain Security Agreement (the “Security Agreement”), dated as of March
25, 2004, by and among the Company, Last Chance and Holder. Reference is hereby made to the Security Agreement for a description of the nature and extent of the security for this Note and the rights with respect to such security of the Holder.

  
 5 Subordination. 
  
 The obligations evidenced by this Note and the rights and remedies of the
Holder under this Note shall be subordinated as set forth in the Subordination Agreement to be executed by and between the Holder and the Administrative Agent. 
  

6 Assignment. 
  
 Neither this Note or any rights or obligations hereunder may be assigned by Holder without the prior written consent of the Company. The rights and
obligations of the Company and the Holder will be binding upon and inure to the benefit of the successors, assigns, heirs, administrators and transferees of the parties. 
  
 7 Waiver and Amendment. 
  
 Any provision of this Note may be amended, waived or modified upon the written consent of both the Company and the Holder. 
  
 8 Notices. 
  
 Any notice, request or other communication required or permitted hereunder
will be in writing and shall be deemed to have been duly given if personally delivered or if telegraphed or mailed by registered or certified mail, postage prepaid, at the respective addresses of the parties as set forth herein. Any party hereto may
by notice so given change its address for future notice hereunder. Notice will conclusively be deemed to have been given when personally delivered or when deposited in the mail or telegraphed in the manner set forth above and will be deemed to have
been received when delivered. 
  
 9 Governing Law.

  
 This Agreement shall be governed by and construed in
accordance with the laws of the State of Nevada, excluding that body of law relating to conflict of laws. 
  
 10 Severability. If any one or more of the provisions contained in this Note shall be invalid, illegal or unenforceable in any respect under any
applicable law, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired 
  

 5 

 11 Headings; References. 
  
 All headings used herein are used for convenience only and will not be used to construe or interpret this Note. Except where
otherwise indicated, all references herein to Sections refer to Sections hereof. 
  
 IN WITNESS WHEREOF, the parties have caused this Note to be issued on March 25, 2004. 
  

			
	COMPANY:
	
	 THE SANDS REGENT,
 a Nevada corporation

		
	 By:
	 	 /s/    FERENC B. SZONY

	 	 	 Ferenc B. Szony

	 	 	 President and Chief Executive Officer

  

 6 

 EXHIBIT A 
  

NOTICE OF CONVERSION 
 (TO BE SIGNED ONLY UPON CONVERSION OF NOTE) 
  
 THE SANDS REGENT 
  
 The undersigned, the Holder of the foregoing Note, hereby surrenders such Note for conversion into shares of Common Stock of The Sands Regent, a Nevada
corporation, to the extent of $             unpaid principal amount of such Note and any accrued but unpaid interest thereon, and requests that the certificates for such shares be
issued in the name of, and delivered to                     , whose address is
                    . 
  
  

			
	Dated:	 	  

		
	Holder:	 	 

  

 (Signature must conform in all respects to name of Holder as specified on the face of the Note) 
  

	
	

	 (Address)

  

 7

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