Document:

Between
      THE
      UNICORPORATED AUTONOMOUS LOTTERY SERVICE OF ARAGUA,
      created
      by Decree No. 225, published in the Special Official Gazette of the State of
      Aragua No. 190 of October 1, 1993, later reformed according to Decree 910,
      published in the Special Official Gazette of the State of Aragua No. 570 of
      August 28, 1997, represented in this act by the citizen ALFONSO
      RAMON VIERA GARCIA,
      a
      Venezuelan of legal age, holder of identity card No
      V-953.607,
      of this
      place of residence, in his role as General Manager according to Decree No.
      634,
      published in the Special Official Gazette of the State of Aragua No. 385 on
      May
      24, 1996, according to that established in Letter C of Article 6 of Decree
      No.
      225, published in the Special Official Gazette of the State of Aragua No. 190
      of
      October 1, 1993, hereinafter to be referred to, and for the effect of this
      service contract, as the LOTTERY, Party of the first part, and the party of
      the
      second part, the trading company CELL
      PHONE SYSTEMS 2005 C.A.,
      with
      headquarters in Caracas and registered before the Trade Registry of the Judicial
      District of the Capital District on the date of October 21, 2005 under the
      No
56, Volume 258-A and following, represented in this act by RAMÓN
      JIMÉNEZ
      and
JOSÉ
      RIVAS
      in their
      roles as General Managers, Venezuelan citizens, of legal age, holders of the
      identification No
      No7.025.914 and No5.595.591
      respectively, enabled by right and properly authorized to sign the present
      document, as shown in the statutes of the trading company, which will be
      hereinafter referred to as “THE
      OPERATOR,”
have
      agreed to sign this Contract of Commercialization, and Sale of games, which
      shall be guided by the following clauses:

    

    CHAPTER
      I

     

    DEFINITIONS

    

    FIRST
      CLAUSE:
      For all
      purposes of this contract, the terms and definitions that are indicated below
      shall have the meaning that the parties ascribe to them in this document,
      whether they are used in singular or plural; 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    
      	
              1)

            	
              CENTRAL
                BET PROCESSING SYSTEM:
                Refers to the group of computers and servers that contain the programs
                and
                applications for the administration, security, control and operation
                of
                the games marketed by THE
                OPERATOR,
                hereinafter “The System.” 

            

    

    

    
      	
              2)

            	
              ACCESS
                DEVICES OR MARKETING UNITS:
                Refers to those technological means used by the players to carry
                out their
                bets, which allow the players to display the purchase and/or sale
                of the
                different products and lottery games offered graphically by THE
                OPERATOR.
                Each player must fulfill the formalities of players' registration
                established or created for this purpose in order to gain access to
                the
                different modalities of games; otherwise, it would not be possible
                to
                carry out any operation of ticket sales. These means are; (a)
                Cellular Telephones with any of the current types of technologies
                or those
                that are developed in the future, by which the user makes bets by
                interacting with The System, through his telephone, (b)
                Interactive Voice Response System, hereinafter “IVR” where the user
                carries out his bets through a telephone call made through any kind
                of
                telephone, interacting this way with an automatic voice system, which
                interacts, in turn, with The System, c)
                Computerized Instant Lottery Terminals (TCLI).
                Defined as high-resolution computerized dispenser equipment of instant
                high resolution Lottery games located at Points
                of Sale,
                allowing the Players to see and acquire different types instant
                high-resolution lottery games, and (d)
                Any other means of access to the Internet; for example, personal
                computers, Blackberries, fixed terminals,
                etc.

            

    

    

    
      	
              3)

            	
              POINTS
                OF SALE:
                This means the locations where TCLI
                are
                placed, which are connected to the Central System, through which
                gaming
                instruments can be marketed. 

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      	
              4)

            	
              BET:
                Refers to the choosing of the possible result, in a random contract,
                between the player and THE
                OPERATOR
                of
                the properly authorized Games in adherence with and according to
                the rules
                of the game, the aim of which is the expectation of winning or losing,
                depending on the coinciding or not with the occurrence of a future
                and
                uncertain fact.

            

    

    

    
      	
              5)

            	
              GAMING
                INSTRUMENT, TICKET, COUPONS OR VOUCHERS:
                Refers to the virtual instrument, produced by The System, which is
                acquired by the player and assigned to his account record, where
                the bets
                carried out by him are shown. This ticket or virtual ticket shall
                contain
                all required control and security measures, as if it were a physical
                lottery ticket. This ticket or virtual gaming ticket becomes visible
                in
                the access device when the sale takes place. This ticket or virtual
                ticket
                is the evidence of the play and it proves the existence of a valid
                and
                registered bet in the System which includes the name, the logo, or
                distinctive symbol of THE
                LOTTERY
                and responsible OPERATOR,
                possesses
                a bar code, the date(s) of the drawing(s) for which the play has
                been
                made, expiration probability of winning, and game warning. The virtual
                ticket shall be the document title that the System will use for the
                payment of prizes, if or when there are
                any.

            

    

    

    
      	
              6)

            	
              PLAYER
                OR BETTOR:
                This means the person who pays to participate in the games to be
                marketed
                through THE
                OPERATOR'S
                Systems, offering in exchange a prize in cash or in kind, who will
                win
                only if the results of the game match and who previously has fulfilled
                the
                formalities of players' registration established by THE
                OPERATOR.
                

            

    

    

    
      	
              7)

            	
              PLAYERS’
                REGISTRATION:
                Refers to the legal requirement by means of which the players formalize
                their registration in THE
                OPERATOR’s
                player database, which will allow them to have access to the games
                and
                products. This will allow individualizing each one of the game accounts
                created to process each and every one of the gaming transactions
                made by
                the players.

            

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	
              8)

            	
              CELPAGO
                - VIRTUAL BANKING SYSTEM:
                This is the system for the collection of bets and the payment of
                prizes
                that the OPERATOR
                shall implement exclusively thanks to the contractual agreement of
                technological integration and bank support, necessary for the marketing
                of
                the different lottery game Products during the validity of the contract.
                This will be the Automated Banking System for “CELPAGO” commercial
                transactions. This system of “PREPAID
                and RECHARGEABLE CARDS,”
                allows the users to carry out their bets and to discount them directly
                from their bank accounts or from their “PREPAID
                and RECHARGEABLE CARD.”
                Similarly, and in the event of winning a prize, the CELPAGO
                system shall directly deposit the money won, should this be the case,
                up
                to amounts no greater than ONE
                MILLION BOLIVARS (Bs. 1,000,000.00),
                to
                the users’ “PREPAID
                and RECHARGEABLE CARD,”
                notifying the winner automatically and through the different access
                devices, using the most suitable technology, such as SMS,
                E-mail,
                return call through the IVR
                system, etc. Amounts larger than ONE
                MILLION BOLIVARS (Bs. 1,000,000.00) or
                prizes in kind,
                will be paid directly at THE
                OPERATOR'S
                offices, upon verification of the winning BETTOR.
                Likewise, THE
                OPERATOR shall
                set forth required agreements with the respective financial or banking
                institutions; therefore it may include any other payment method or
                modality as an additional tool required for effecting the prize payment
                or
                the collection of the bet values. Payment methods include bank deposits,
                credit cards, electronic transfers (payment to third parties) and/
                or bank
                debit orders, which are valid instruments or means used by different
                financial institutions within the country to perform commercial
                operations. 

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      

      
        	
                9)

              	
                
                  GAME
                    ACCOUNTS:
                    Refers to the accounts records that are in the players' names,
                    through
                    which THE
                    OPERATOR
                    debits the amounts corresponding to the bets carried out by the
                    players or
                    credits the amounts corresponding to the payment of prizes. In
                    this record
                    are stored individually all the transactions carried out by the
                    players,
                    which include the types or modalities of bets, the dates, the
                    prize
                    awarded if or when there are any, etc. This is possible thanks
                    to the
                    services and technological applications provided by THE
                    OPERATOR.

                

              

      

    

    
       

      
        
          	
                  10)

                	
                  INTEGRATED
                    SECURITY SYSTEM:
                    Refers to the security mechanisms applied to all operations derived
                    from
                    the commercialization and sale of electronic games marketed by
                    THE
                    OPERATOR
                    that allow control and security for all the incidents in all
                    the different
                    operations of the games, guaranteeing in this way the total integrity
                    of
                    the transactions. It additionally provides the necessary security
                    for each
                    operation carried out by the players when buying a ticket through
                    the
                    different access devices, offering in a secure and individualized
                    way the
                    verification and recording of their bets as well as of their
                    prizes, in
                    the event of owning a winning ticket.

                

        

        
          

          
            	
                    11)

                  	
                    
                      BACK
                        UP EQUIPMENT:
                        Refers to the components that allow the continuation and
                        benefit of the
                        service in emergencies. 

                    

                  

          

          
            

            
              	
                      12)

                    	
                      
                        NET
                          SALES:
                          Refers to the result of the gross ticket sales, less the
                          amount of the
                          prizes. 

                      

                    

            

            
              

              
                	
                        13)

                      	
                        DISTRIBUTION
                          OF PRIZES:
                          Refers to the percentage of the tickets issued for a certain
                          category of
                          game marketed, assigned to the payment of prizes, which
                          shall include the
                          applicable taxes on fortuitous earnings established in
                          Income Tax Law.
                          

                      

              

            

          

        

      

    

     

    
      	
              14)

            	
              SOFTWARE:
                Refers to THE
                OPERATOR'S
                computer software or of anyone THE
                OPERATOR
                hires for the effective execution of the object of this contract.
                

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    
      	
              15)

            	
              GAMES
                OF LUCK AND CHANCE and HIGH RESOLUTION ON-LINE AND REAL TIME INSTANT
                LOTTERY GAMES:
                Refers to all those games in which the adverse or favorable result
                does
                not depend mainly on the player's talent or ability, such as; games
                with
                numbers or symbols of one, two, three, or four digits; lotto games
                of five
                or six numbers within a universe or specific matrix; Instant games
                where
                the result is known immediately; and Internet games. The games are
                carried
                out through Software integrated to the System and interconnected
                on-line
                and in real time by means of the access devices. This modality of
                games
                allows the Player to interact with these interconnection mechanisms,
                to
                choose from a variety of previously established computerized on-line
                designs and to acquire the game instruments by means of the payment
                of a
                predetermined amount through a technological Banking
                application.

            

    

    

    
      	
              16)

            	
               LOTTO
                GAME MATRIX:
                Refers to the modality of the game, mechanics of the bet and possible
                combinations that can take place according to the number of elements
                to
                select from the total possible elements in each combination, which
                as a
                result will give a number of possible combinations given the universe
                of
                numbers. 

            

    

    
      

      
        	
                17)

              	
                LOTTO
                  GAMES:
                  Refers to the games of Lotto to be marketed by THE
                  OPERATOR.
                  In the modality of 6 matches, the universe shall be made up of
                  from forty
                  (40) to forty nine (49) numbers and for the modality of 5 matches,
                  the
                  universe shall be made up of from twenty five (25) to thirty five
                  (35)
                  numbers. In both cases, THE
                  OPERATOR, with
                  prior approval of THE
                  LOTTERY,
                  may change them according to market needs. The prizes shall be
                  fixed in
                  cash or in any other form of payment that the terms of the game
                  Regulations allow. 

              

      

       

    

    
      	
              18)

            	
               GAMES
                OF NUMBERS or SYMBOLS:
                Refers to the games of numbers or symbols to be marketed by THE
                OPERATOR.
                In the modality of a number or symbol, the universe will consist
                of from
                ten (10) to thirty six (36) numbers or symbols; in the modality of
                two
                numbers or symbols the universe shall consist of one hundred (100)
                numbers
                or symbols; in the modality of three numbers or symbols the universe
                shall
                be made up of one thousand (1,000) numbers or symbols and in the
                modality
                of four numbers or symbols the universe shall consist of ten thousand
                (10,000) numbers or symbols. The prizes will be fixed in cash or
                in any
                other form of payment, as allowed in the terms of the game Regulations.
                

            

    

    
    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              19)

            	
              INSTANT
                or SCRATCH-OFF GAMES:
                Refers to the instant or scratch-off games to be marketed by THE
                OPERATOR.
                This game modality is that in which the player knows immediately
                if
                his/her ticket is or not a winner, and if it is, the prize for which
                he/she is credited. The game areas in the virtual Instant tickets
                are
                covered with a security film. The player, through the game’s access
                devices, shall emulate the “Scratch off or detachment” of this film and
                uncover the contents of it in order to determine whether he/she is
                or is
                not a winner. The prizes shall be fixed in cash or in any other form
                of
                payment, as allowed in the terms of the game Regulations. By the
                nature of
                the game and its life cycle, the instant games must be changed
                periodically. 

            

    

    
      

      
        	
                20)

              	
                GAMES
                  THROUGH INTERNET:
                  Refers to the Internet games to be marketed by THE
                  OPERATOR.
                  These games include but are not limited to Card games, Dice, Roulette,
                  Keno, Fan Tan, Twenty-one, Blackjack, Craps, Chuck a Luck (dai
                  shu), Wheel
                  of fortune, Chemin de Fer, Baccarat, Pai Gow, Panguini, Poker,
                  and Horse
                  Racing among others. 

              

      

    

    

    
      	
              21)

            	
               SPORTING
                GAMES: Refers
                to lottery games to be commercialized by the OPERATOR.
                These are games in which the adverse or favorable result depends
                primarily
                on talent, strength, skill, or ability of the participants, such
                as
                football, baseball, and boxing.

            

    

    
      

      
        	
                22)

              	
                ON-LINE
                  and REAL TIME:
                  Means that each transaction is registered and stored in the System
                  in the
                  same moment in which it is done. The player will receive a confirmation
                  that his bet has been registered in the System, through the same
                  access
                  device that he/she used to carry out his/her bet, displaying the
                  serial
                  number of his/her transaction/bet. If this number is not received
                  by the
                  access device, it means that the transaction was not registered;
                  therefore, there shall be no charge at
                  all.

              

      

      
         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

           

        

        
          	
                  23)

                	
                  MARKETING:
                    Refers to each and every one of the activities carried out by
THE
                    OPERATOR
                    and directed to the placement, marketing and administration of
                    its high
                    resolution electronic lottery products and games, including the
                    sale of
                    the game instruments, collection of the revenues and proceeds,
                    payment of
                    prizes in the established terms for the games, costs and investment
                    expenses, production, administration, sale and advertising, payment
                    of
                    national, state, district or municipal taxes derived from the
                    marketing
                    and sale of the games and products, as well as the payment to
THE
                    LOTTERY
                    of
                    the agreed percentage on the net sales of the games and products
                    of
                    THE
                    OPERATOR.
                    

                

        

      

    

    

    
      	
              24)

            	
               TERRITORY:
                Refers to the areas of the Territory of the Bolivarian Republic of
                Venezuela in which “THE
                LOTTERY”
                can legally operate the on-line instant and real time lottery Games
                sponsored by THE
                LOTTERY.
                

            

    

    
      

      
        	
                25)

              	
                ADVERTISING:
                  Refers to all the promotion mechanisms, publicity and sales used
                  by
                  THE
                  OPERATOR
                  for advertising the gaming and electronic high-resolution lottery
                  products. 

              

      

      
        

        
          	
                  26)

                	
                  VALIDATION:
                    Refers to the act of verifying whether a play is winning or not,
                    and the
                    authorization issued by the System for the payment of the corresponding
                    prize, which shall be automatically credited to the account of
                    each
                    winner.

                

        

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

      

    

     

    CHAPTER
      II

     

    OBJECT
      OF THE CONTRACT

    

    SECOND
      CLAUSE:
      “THE
      OPERATOR”
is
      obliged, under its own and exclusive responsibility at its own expense and
      risk
      to design, assemble, install and implement, operate, commercialize, market
      and
      sell in the whole national TERRITORY
      through
      its System, the Games and High Resolution On-Line and Real Time Instant Lottery
      Products of its exclusive property, hereinafter THE
      GAMES,
      sponsored by THE
      LOTTERY.
      The
      sale of THE
      GAMES
      shall
      begin with a minimum of five (5)
      games,
      ten (10)
      active
      games being authorized with the signature of this contract, and with respect
      to
      the games under the modality of games or sporting events marketable through
      the
      sales units or access mechanisms defined above, whether these events are
      national or international, Five (5)
      are
      authorized, which must be presented to THE
      LOTTERY before
      their launch and implementation, when THE
      OPERATOR wishes
      to
      market them, indicating for that purpose the dates of said events, their
      frequency, development and the software design for sale of the game, and their
      respective regulation. For any other marketing of game modalities within those
      defined or cited in Chapter I
      of
      this
      contract, THE
      OPERATOR
      must
      present them for the consideration of THE
      LOTTERY
      for its
      analysis and approval. THE
      OPERATOR
      is
      obliged to begin Operations within a period not exceeding ninety (90)
      days and
      a maximum period that shall not exceed ONE
      HUNDRED EIGHTY (180) DAYS,
      subsequent to the signature of this contract. In order to provide exact
      performance of the object of this contract, “THE
      OPERATOR”
obliges
      itself to use and employ the highest technology and to keep up-to-date the
      equipment of THE
      GAME’s
      generating System, and to offer a service of the highest and most reliable
      quality for the marketing of the games inside the TERRITORY
      during
      the validity of this contract, always in function of the profitability,
      conditions and demands of the market, for which purpose THE
      OPERATOR
      shall
      periodically carry out the necessary market studies to evaluate the conduct
      and
      the positioning of the games. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    UNIQUE
      PARAGRAPH :
      The
      parties agree that with regard to the modalities initially authorized of the
      instant high-resolution lottery games in real time, object of this contract,
      sponsored by THE
      LOTTERY,
      and
      which shall be marketed by THE
      OPERATOR comply
      with all the stipulations provided for in the
      NATIONAL LOTTERY LAW.

    

    THIRD
      CLAUSE:
      “THE
      OPERATOR”
shall
      be solely and absolutely responsible for the operation of the System, the
      marketing and advertising of THE
      GAMES,
      with
      people technically qualified to do so. In order to validate the administration
      of the play in general and as a part of the previous requirements at the
      beginning of operations, THE
      OPERATOR
      is
      expressly obligated to install and to maintain in state of perfect operation
      a
      computer or terminal in the headquarters of THE
      LOTTERY,
      which
      shall be connected directly to the System for the constant monitoring of the
      play movement. The computer or terminal shall be connected through a modem
      or
      any other means available for interconnection, which shall be provided by
THE
      OPERATOR,
      without
      any cost to THE
      LOTTERY.
      The
      System shall be installed in the place that THE
      OPERATOR
      considers necessary and appropriate to guarantee its security and its
      uninterrupted operation, as well as the backup systems necessary in case of
      any
      eventual flaws. THE
      OPERATOR
      agrees
      to install an office in the metropolitan area of Caracas before the beginning
      of
      the established operations in this contract; this office shall serve as link
      for
      the implementation and development of the games.

    

    FOURTH
      CLAUSE:
      The
      structure of prizes, handouts, norms, instructions, prices or value of the
      bets,
      places of prize payments, frequency and other specifications inherent to the
      games that THE
      OPERATOR
      markets
      and commercializes, shall be contained in the Regulations for such ends and
      with
      the authorization and approval of THE
      LOTTERY
      created
      by THE
      OPERATOR;
      the
      entire text of these Regulations must be published in a newspaper of national
      circulation and an extract of it placed on a Web page that THE
      OPERATOR
      develops
      for the purpose of general information for the players. THE
      OPERATOR
      agrees
      to give THE
      LOTTERY
      the
      Rules of the first five (05)
      games
      that begin in its marketing out of the ten (10) that have been authorized,
      in a
      Term of THIRTY (30)
      days
      subsequently to the signing of this contract. The new games to Market shall
      be
      proposed to “THE
      LOTTERY”
with
      Fifteen (15)
      days
      prior to the date foreseen for the beginning of the sales of this game. All
      the
      new games shall be within the framework of the definition of high
      resolution and real time Instant Lottery Games and products.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    FIFTH
      CLAUSE:
      By
      means of express and reasonable notification to THE
      LOTTERY,
      and by
      previous approval in writing on its behalf, THE
      OPERATOR
      shall be
      able to modify, to suspend or to eliminate some of the modalities of the games
      that are being marketed and advertised at that moment, provided it keeps
      operative at least two (2)
      games.

    

    SIXTH
      CLAUSE:
      The
      execution of this contract shall be the responsibility of the OPERATOR
      with
      its
      own means and resources, so that THE
      LOTTERY shall
      assume no responsibility, whether civil, commercial, labor, penal, or
      administrative, in relation to actions performed by any person related directly
      or indirectly in an employment capacity, or in any way to THE
      OPERATOR.

    

    CHAPTER
      III

     

    MARKETING
      AND PUBLICITY

     

    SEVENTH
      CLAUSE:
      The
      parties agree that THE
      OPERATOR
      shall be
      exclusively responsible for all the expenses that it incurs to install the
      whole
      System. 

    

    EIGHTH
      CLAUSE:
      THE
      OPERATOR
      assumes
      towards THE
      LOTTERY
      the
      responsibility of paying the prizes. Nevertheless, it shall be able to make
      contractual agreements with third parties in order to facilitate and to regulate
      the responsibility that derives from the marketing, collection and payment
      of
      prizes; by no means shall THE
      OPERATOR
      be able
      to avoid its responsibility of assuming the economic load of the prizes.
THE
      LOTTERY
      by no
      means, shall be responsible for THE
      OPERATOR'S
      non-fulfillment in the payment of the referred prizes.

    

    NINTH
      CLAUSE:
      THE
      LOTTERY
      agrees
      to allow the use of its name, logo, emblem, distinguishing characteristics
      or
      any other characteristic that identifies it, in the instruments THE
      OPERATOR
      generally carries out in function of the object of this contract, doing so
      through the most suitable media for the optimization of the marketing of its
      games and products, by no means committing THE
      LOTTERY
      in any
      way. In the same way THE
      OPERATOR
      shall
      proceed through the same means to enhance the institutional image of
THE
      LOTTERY
      as
      generator of social benefits and of charity.

    

    TENTH
      CLAUSE:
      The
      workers in service of each of the parties are of the exclusive responsibility
      of
      each one of them, therefore the other party is excluded from any payment or
      compensation related to the aforementioned workers.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    ELEVENTH
      CLAUSE:
      The
      parties concur that THE
      OPERATOR
      shall be
      responsible for the entire marketing process, sales and marketing of the Games,
      by means of incorporation of the technology and the computerized electronic
      equipment required for their marketing; THE OPERATOR shall incur each and every
      one of the expenses that this marketing, sale and advertising causes, including
      the payment of national, district or municipal taxes in conformity with the
      established legal tax regulatory system as regards lottery games and betting
      sales.

    

    CHAPTER
      IV

     

    THE
      ECONOMIC BALANCE

    

    TWELFTH
      CLAUSE:
      The
      parties agree that if within the valid term of this contract or of any of its
      extensions if any, the corresponding legal dispositions fiscally regulating
      the
      activities of lottery games and betting sales should be modified through the
      competent legislative entity, the parties agree to evaluate the incidents and
      economic impacts they could generate in the normal development of this contract,
      since it was assumed under the knowledge of clear and specific regulations,
      primarily on the tax aspects derived from the activities. In the case that
      circumstances should be presented constituting a rupture of the equation or
      contractual balance, with economic imbalance occurring, measures shall be
      adopted tending to its re-establishment for the continuity of the contract.
      In
      the case that effectively the parties agree not to continue it, they agree
      to
      execute and sign the corresponding settlement documents without this
      circumstance committing either of the parties to the payment of any indemnity
      whatsoever.

    

    THIRTEENTH
      CLAUSE:
      THE
      OPERATOR
      shall
      periodically evaluate the conduct of the Games that it markets, sells and
      commercializes, in order to obtain information regarding their positioning
      in
      the market and their results and in deciding whether to continue them or
      replaces them for other games that are more suitable.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    CHAPTER
      V

     

    PRICE
      AND PAYMENT

    

    FOURTEENTH
      CLAUSE:
      For the
      marketing, sale and advertising of the Games that THE
      OPERATOR
      carries
      out in the Territory during the first (1o)
      year of
      commercial operations of this contract,
      THE LOTTERY
      shall
      receive a share percentage of five (5%)
      percent
      of the resulting Net sales. For the second (2o)
      year of
      commercial operations, THE
      LOTTERY
      will
      receive a share percentage of six (6%)
      per cent
      on Net sales; and for the fourth (4o)
      and
      final year of operations during the validity of this contract, THE
      LOTTERY
      will
      receive a share percentage of (6%)
      percent
      on net sales, sales obtained by subtracting the gross sales of tickets, minus
      payment of prizes. THE
      OPERATOR
      shall
      carry out a daily business closing, and this closing shall be taken as legal
      support of revenues.

    

    FIFTEENTH
      CLAUSE:
      The
      parties agree that with reference to the financial share percentages established
      in the above-cited Clause, in favor of THE
      LOTTERY,
      these
      shall become valid in conformity with the following considerations. The
OPERATOR,
      during
      the first twelve months (12)
      following the launch and placement within the national sales market of the
      instant lottery games object of this contract shall perform the corresponding
      investments to position the product within the country’s national market for
      games, through the various national communications media, whether, printed,
      audiovisual and/or by radio, in schedules and conditions permitted by law.
      In
      this sense, THE
      OPERATOR agrees
      during this period considered as placement of the product, to the compensation
      identified in the above Clause, but under the following parameters. A)
THE
      OPERATOR
      agrees
      to pay at the offices of THE
      LOTTERY
      a fixed
      monthly sum equivalent to TEN
      MILLION BOLIVARS (Bs. 10,000,000.00) during
      the first (1) year of operations of the contract; that is, the twelve (12)
      months following the launch and establishment of the instant lottery games
      authorized through this contract and marketed by THE OPERATOR
      within
      the national market, when the total amount of Net
      Sales,
      generated by marketing of these games, does not generate an economic share
      benefiting THE
      LOTTERY
      greater
      than the established monthly amount of TEN
      MILLION BOLIVARS (Bs. 10,000,000.00),
      in
      which case, the economic share agreed to in Clause Fourteen would be applied
      to
      this income (sales), thus reflecting the amount corresponding to THE
      LOTTERY in
      that
      month. 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    B)
      For the
      second (2) year of operations is established as a set minimum monthly income
      benefiting THE
      LOTTERY, the
      fixed
      monthly amount of TWENTY
      MILLION BOLIVARS (Bs. 20,000,000.00). In
      the
      case that in one of the months corresponding to the second (2) year of
      operations of the games marketed by THE
      OPERATOR,
      Net
      Sales should generate sufficient economic benefits in favor of THE
      LOTTERY,
      greater
      than the abovementioned fixed monthly amount of TWENTY
      MILLION BOLIVARS (Bs. 20,000,000.00), it
      shall
      apply to the income the percentage of economic share of Six (6) percent
      indicated in the Fourteenth Clause, reflecting in this sense the amount
      corresponding to THE
      LOTTERY
      for that
      month. C) For the third (3) year of operations, the minimum monthly income
      amount established in favor of THE
      LOTTERY is
      THIRTY
      MILLION BOLIVARS (Bs. 30,000,000.00) In
      the
      case that in one of the months corresponding to the third (3) year of operations
      of the games marketed by THE
      OPERATOR,
      Net
      Sales should generate sufficient economic benefits in favor of THE
      LOTTERY,
      greater
      than the abovementioned fixed monthly amount of THIRTY
      MILLION BOLIVARS (Bs. 30,000,000.00), it
      shall
      apply to the income the percentage of economic share of Six (6) percent
      indicated in the Fourteenth Clause, reflecting in this sense the amount
      corresponding to THE
      LOTTERY
      for that
      month. D) For the fourth (4) year of operations the minimum monthly income
      amount established in favor of THE
      LOTTERY is
      FORTY
      MILLION BOLIVARS (Bs. 40,000,000.00) In
      the
      case that in one of the months corresponding to the third (3) year of operations
      of the games marketed by THE
      OPERATOR,
      Net
      Sales should generate sufficient economic benefits in favor of THE
      LOTTERY,
      greater
      than the abovementioned fixed monthly amount of FORTY
      MILLION BOLIVARS (Bs. 40,000,000.00), it
      shall
      apply to the income the percentage of economic share of Six (6) percent
      indicated in the Fourteenth Clause, reflecting in this sense the amount
      corresponding to THE
      LOTTERY
      for that
      month. In the case that there exists a prorate, the parties shall meet to
      establish the corresponding percentages for the lapses or periods of the
      respective prorate, a percentage that shall never be less than that of the
      last
      year of effect of this contract or under the minimum income established by
      the
      parties in this period.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    SIXTEENTH
      CLAUSE:
      The
      percentage share corresponding to THE
      LOTTERY
      shall be
      paid by THE
      OPERATOR
      to the
LOTTERY,
      weekly
      on the third (3o) work day following the end of the week in which it is paid;
      the contributions of the economic shares shall be paid with the respective
      check
      at the offices of the LOTTERY
      with
      explanatory documentation.

    

    SEVENTEENTH
      CLAUSE:
      THE
      OPERATOR
      agrees
      to install both in the offices of THE
      LOTTERY
      and in
      the administrative premises of SENIAT,
      terminals or monitors to allow the checking and auditing of the on-line
      commercial transactions and in real time, one (1) for each agency, which shall
      allow permanent checking of the transactions performed by THE
      OPERATOR and
      to
      carry out any appropriate monitoring on behalf of the authorities on such
      activities.

    

    EIGHTEENTH
      CLAUSE:
      THE
      OPERATOR
      agrees
      to keep detailed computerized and physical bookkeeping of all the transactions
      that it carries out on the occasion of the marketing, sales and marketing of
      the
      Games to such an end, THE
      OPERATOR
      shall
      keep the books relative to the gross sales; amounts of the paid prizes; tax
      withdrawals on chance earnings; national, district or municipal taxes generated
      by the sales of lottery game bets, reserve fund for the payment of prizes and
      to
      guarantee the share percentage that corresponds to THE
      LOTTERY.
      In
      particular THE
      OPERATOR
      must:

    

    1.-
      Perform withholding and report the tax on chance earnings, regarding the prizes
      that it pays and to give the clients the corresponding vouchers and to collect
      the amount of the applicable state, district or municipal taxes, in each one
      of
      the operations of sale of the games

    

    2.-
      Give
THE
      LOTTERY
      the
      amount of the relationship of the withholding with the vouchers for payment
      of
      the tax and/or taxes generated by the marketing or sale of the games and payment
      of prizes and the corresponding vouchers. 

    

    3.-
      THE LOTTERY
      is fully
      authorized to perform the inspection of all documents relative to the
      aforementioned accounts and THE
      OPERATOR
      agrees
      to give access to its files, book-keeping entries and any necessary documents
      so
      that THE
      LOTTERY
      performs
      the audits that it estimates necessary in its position and charge. THE
      LOTTERY
      shall
      notify THE
      OPERATOR of
      its
      intention of carrying out the inspection at least two (02) business days in
      advance of the date planned for the inspection. Likewise, THE OPERATOR shall
      provide THE LOTTERY a copy of the accounting records for the year, audited
      by a
      highly experienced external auditor.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    

    NINETEENTH
      CLAUSE:
      In the
      event of non-fulfillment of the formal tax duties to which THE
      OPERATOR
      is under
      obligation by means of this document and which shall cause the application
      of
      any pecuniary sanction for THE
      LOTTERY OF ARAGUA,
      THE
      OPERATOR
      must pay
      to THE
      LOTTERY,
      within
      the ten (10) following business days to date in which the administrative action
      was definitively established, a quantity equivalent to double the amount of
      the
      imposed sanction, without prejudice the contract’s cancellation. 

    

    CHAPTER
      VI

     

    LENGTH
      OF THE CONTRACT AND ITS EXTENSIONS

    

    TWENTIETH
      CLAUSE:
      The
      duration of this contract shall be ten (10)
      years,
      counted starting from the date of its authentication, without prejudice to
      its
      extension by the will of the parties, unless one of the parties notifies the
      other in writing of its decision to not extend it, by written notice at least
      six (6) months in advance of the expiration of the initial duration or of any
      of
      its extensions, if any.

    

    CHAPTER
      VII

     

    CAUSES
      OF TERMINATION OF THE CONTRACT

    

    TWENTY-FIRST
      CLAUSE:
      Notwithstanding any other causes, the termination of this contract may result
      from the following: a)
      If
THE
      OPERATOR
      fails to
      pay the properly validated offered prizes according to that foreseen in this
      contract and in the regulation of the corresponding game; b)
      If
THE
      OPERATOR
      suspends
      the marketing or sales of any of the games without the prior written approval
      of
THE
      LOTTERY,
      without
THE
      LOTTERY
      having
      exceeded the deadline for response to the application of suspension on behalf
      of
THE
      OPERATOR
      for a
      certain game in conformance with the provisions of the Sixth Clause of this
      document. c)
      If
THE
      OPERATOR
      is in a
      permanent state of non-liquidity that would not allow it to fully complete
      the
      object of this contract; d)
      If
THE
      OPERATOR
      is found
      in state of arrears or bankruptcy in conformity with that provided for in the
      code of commerce; e)
      If
THE
      OPERATOR
      stops
      paying THE
      LOTTERY
      in the
      established time the quantities of money owed in accordance with that stipulated
      in THE
      FIFTEENTH CLAUSE;
      

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    f)
      If
THE
      OPERATOR
      does not
      comply with the formal duty to withhold and to turn over to the treasury within
      the legal deadline the amounts of money on behalf of THE
      LOTTERY
      the
      taxes on chance earnings; g)
      If
THE
      OPERATOR
      totally
      or partially transfers this contract; h)
      Failure
      to comply with the formal duty of paying the national, state, district or
      municipal taxes that corresponded to THE
      LOTTERY
      and/or
THE
      OPERATOR
      due to
      the marketing or sale of the games and Products object of this contract;
i)
      If
THE
      OPERATOR
      does not
      make the arranged deposits, within the period provided for in the twenty-seventh
      clause; j)
      If
      THE
      OPERATOR
      fails to
      comply with the obligations under its responsibility established by the National
      Lottery Law.

    

    

    CHAPTER
      VIII

     

    REGARDING
      THE MODIFICATIONS AND TRANSFER OF THE CONTRACT

    

    

    TWENTY-SECOND
      CLAUSE;
      The
      contracting parties may not cede or transfer this contract entirely or in part.
      No alteration, change, modification or addition to this document shall have
      any
      validity whatsoever, unless previously approved in writing and granted through
      an authenticated document by the parties forming part of this
      contract.

    

    TWENTY-THIRD
      CLAUSE:
      The
      parties contracting hereto are not responsible for delays or noncompliance
      of
      the obligations assumed hereunder or damages that may derive from them if they
      are a consequence of force
      majeure.
      For the
      purposes of this contract, causes of force
      majeure
      are
      considered when activities of THE
      OPERATOR are
      paralyzed by
      strikes by employees or laborers; disturbances; civil unrest; rebellions;
      insurrections; wars; natural disasters; fires; actions agreed to legitimately
      or
      illegitimately by judicial, civil or individual authorities.

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    CHAPTER
      IX

    

    CONFIDENTIALITY

    

    TWENTY-FOURTH
      CLAUSE:
      The
      parties are under reciprocal obligation not to use, duplicate or disclose to
      third parties, any received information during the validity of this contract,
      safeguarding the right to use and to disclose information that belongs to each
      one of them. In this sense, THE
      LOTTERY
      is
      expressly obliged not to disclose technical, commercial or financial information
      in which THE
      OPERATOR,
      its
      branches, contractors and related parties have direct interest and which have
      close links with its technology, products and equipment (including, but not
      limited to, computer Software), services, markets, strategies and business
      plans
      related with the Games. It shall not be considered sensitive confidential
      information that which belongs to the public domain because of the normal
      dynamics of the games. The non-fulfillment of this clause shall give right
      to
      the injured party to request the termination of this contract.

    

    TWENTY-FIFTH
      CLAUSE:
      The
      parties expressly accept that all information that is classified or marked
      as
      confidential under their ownership must be given to them immediately after
      the
      ending of this contract or before, if requested.

    

    TWENTY-SIXTH
      CLAUSE:
      If the
      information referred to in the twenty-fourth Clause, should be required by
      a
      Jurisdictional organ,
      THE OPERATOR and/or THE LOTTERY,
      shall
      provide it, expressly requesting from these entities, the confidentiality to
      protect the technology in agreement with the current industrial or intellectual
      property laws.

    

    CHAPTER
      X

    

    DEPOSITS

    

    TWENTY-SEVENTH
      CLAUSE:
      In
      order to guarantee the obligations that THE
      OPERATOR
      assumes
      with regard to THE
      LOTTERY
      by
      virtue of this contract, THE
      OPERATOR
      is
      obliged and agrees to constitute by means of an insurance company, national
      or
      international with local representation, trading company fund or financial
      institution, to full satisfaction of THE
      LOTTERY,
      the
      following deposits (i) a deposit for the quantity of ONE
      HUNDRED MILLION (BS. 100,000,000) BOLIVARS,
      to
      guarantee the operations generated in the marketing of the Games; and a deposit
      for the quantity of ONE
      HUNDRED TWENTY MILLION (Bs.
      120,000,000), BOLIVARS
      to
      guarantee the payment of the percentage contribution that corresponds to the
      participation of THE
      LOTTERY
      (on the
      Net sales). The aforementioned deposits shall be considered an integral part
      of
      this contract and must be paid within the following fifteen (15) days to the
      signing of this document. 

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    TWENTY-EIGHTH
      CLAUSE:
      The
      parties agree to revise and adjust the amounts of the deposits when any of
      the
      following circumstances take place: Increase in the price of the bets or game
      instruments; Changes in the structure of prizes; and increase of twenty
(20%)
      percent
      or more in the average sales during the last six (6)
      months
      after the first year of operation. 

    

    CHAPTER
      XI

    

    ADDRESSES
      AND NOTIFICATIONS

    

    TWENTY-NINTH
      CLAUSE:
      All
      notifications, communications, requirements and information that should be
      given
      in agreement with this contract shall be made in writing and they shall be
      considered as received by any of the following means: 1.
      -
      Personal
      notice directed to the respective addresses during office hours, with
      acknowledgement of receipt; 2.
      -
      by
      certified mail; and 3.
      - By
      facsimile equipment (fax, telex, etc.) with receipt confirmation, to the
      following addresses: For THE
      OPERATOR;
      Avenida
      Libertador c/c calle Pantin, edificio Galerías Pantin piso 2 oficina 9, Chacao
      Estado Miranda, Gran Aragua. For THE
      LOTTERY;
      [Esquina de Mijares, Edificio Banco Lara, piso 5, parroquia Altagracia,
      Municipio Libertador del Distrito Capital.] All the notifications that are
      carried out in relation to this contract shall be effective on the date of
      the
      acknowledgement of receipt, if delivered personally, or on the second (2a)
      business day following their shipment, if sent by certified mail or facsimile.
      They shall also be valid notifications those that are carried out following
      the
      procedure of judicial notifications foreseen in the Venezuelan Code of Civil
      Procedure. Any of the parties, by means of notification given in writing to
      the
      other, shall be able to designate a new address to which the corresponding
      notifications must be sent. Two (2) copies of the same kind and same effect
      are
      made of this contract, in the city of Aragua on the date of their
      authentication.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    CHAPTER
      XII

    

    APLICABLE
      LAW

    

    THIRTIETH
      CLAUSE:
      This
      contract shall be interpreted and executed according to that stipulated in
      the
      laws of the Bolivarian Republic of Venezuela. In the event of controversies
      arising among the parties as to their interpretation and execution, which cannot
      be solved by means of reconciliation, they agree that they shall be solved
      by
      the competent courts. 

    

    THIRTY-FIRST
      CLAUSE:
      For the
      purpose of this contract, its results and consequences, the parties choose
      as
      their abode, especially and excluding any other than the city of Caracas,
      Capital District, declaring submission to the courts of the jurisdiction.

    

    FOR
      THE LOTTERY:

    

    ALFONSO
      RAMON VIERA GARCIA

    GENERAL
      MANAGER OF THE 

    INDEPENDENT
      SERVICE OF THE LOTTERY OF ARAGUA

    

    FOR
      THE OPERATOR: CELL PHONE SYSTEMS 2005, C.A.

    

    

    
      	 	DR. RAMON JIMENEZ	 	JOSE RIVAS 	 
	 	 	 	 	 
	 	I.D. V - 7.025.914	 	I.D. V-5.595.591	 

    

     

    
      
        
        

      

      
        20EXHIBIT
      4.1

     

    

     

    Amendment
      to Certificate of Designation of

    Series
      A
      Convertible Preferred Stock

     

     

    Section
      (f)(iii) of the Certificate of Designation of Series A Convertible Preferred
      Stock is hereby restated in its entirety to read as follows: 

     

    (iii)Conversion
      Price.
      The
      number of shares into which one share of Series A Preferred Stock shall be
      convertible shall be determined by dividing the Series A Purchase Price by
      the
      then existing Conversion Price (as set forth below)
      (the
"Conversion
      Ratio").
      The
      "Conversion
      Price"
      per
      share for the Series A Preferred Stock shall be equal
      to
      $0.75 (subject to appropriate adjustment for stock splits, stock dividends,
      combinations, recapitalizations or other recapitalization affecting the Series
      A
      Preferred Stock and as otherwise set forth herein).
      The
      Conversion Price shall
      be
      further adjusted upon the occurrence of any event in
      paragraph (f)(iv)-(vi)
      or
      (ix).

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