Document:

EXHIBIT 10.3

REGISTRATION RIGHTS AGREEMENT

This Registration
Rights Agreement (this “Agreement”) is made and entered into as of
January 24, 2007, among Southwest Casino Corporation, a Nevada corporation (the
“Company”), and the several purchasers signatory hereto (each such
purchaser, a “Purchaser” and collectively, the “Purchasers”).

This Agreement is
made pursuant to the Securities Purchase Agreement, dated as of the date
hereof, between the Company and each Purchaser (the “Purchase Agreement”).

The Company and each
Purchaser hereby agrees as follows:

1.                                       Definitions.  Capitalized terms used and not otherwise
defined herein that are defined in the Purchase Agreement shall have the
meanings given such terms in the Purchase Agreement.  As used in this Agreement, the following
terms shall have the following meanings:

“Advice” shall have the meaning set forth in
Section 6(d).

“Effectiveness Date” means, with respect to the
initial Registration Statement required to be filed hereunder, the 120th calendar day following the date hereof (or, in
the event of a “full review” by the Commission, the 150th calendar day following the date hereof) and,
with respect to any additional Registration Statements which may be required
pursuant to Section 3(c), the 90th calendar day following the latest possible
Filing Date; provided, however, that in the event the Company is
notified by the Commission that one of the above Registration Statements will
not be reviewed or is no longer subject to further review and comments, the
Effectiveness Date as to such Registration Statement shall be the fifth Trading
Day following the date on which the Company is so notified if such date
precedes the dates required above.

“Effectiveness Period” shall have the meaning
set forth in Section 2(a).

“Event” shall have the meaning set forth in
Section 2(b).

“Event Date” shall have the meaning set forth
in Section 2(b).

“Filing Date”
means, with respect to the initial Registration Statement required hereunder,
the 30th calendar day following the date hereof and,
with respect to any additional Registration Statements which may be required
pursuant to Section 3(c), the 100th calendar day following the date on which the
Company first knows, or reasonably should have known that such additional
Registration Statement is required hereunder, but in no event shall a Filing
Date with respect to an additional Registration Statement be sooner that the
100th calendar day after the Effectiveness Date of a preceding Registration
Statement.

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“Holder” or “Holders” means the holder
or holders, as the case may be, from time to time of Registrable Securities.

“Indemnified Party” shall have the meaning set
forth in Section 5(c).

“Indemnifying Party” shall have the meaning set
forth in Section 5(c).

“Losses” shall have the meaning set forth in
Section 5(a).

“Plan of Distribution” shall have the meaning
set forth in Section 2(a).

 “Prospectus”
means the prospectus included in a Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from
a prospectus filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by a Registration
Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by
reference or deemed to be incorporated by reference in such Prospectus.

“Registrable Securities” means all of (i) the
Shares, (ii) the Warrant Shares and (iii) any shares of Common Stock issued or
issuable upon any stock split, dividend or other distribution, recapitalization
or similar event with respect to the foregoing; provided, however,
that, commencing on the day following the effectiveness of the initial
Registration Statement filed by the Company pursuant to Section 2(a) of this
Agreement, the definition of Registrable Securities herein shall include the
Placement Agent Shares.

“Registration Statement” means the registration
statements required to be filed hereunder and any additional registration
statements contemplated by Section 3(c), including (in each case) the
Prospectus, amendments and supplements to such registration statement or
Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by
reference in such registration statement.

“Rule 415” means Rule 415 promulgated by the
Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same purpose and effect as such Rule.

“Rule 424” means Rule 424 promulgated by the
Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same purpose and effect as such Rule.

“Selling Shareholder Questionnaire” shall have
the meaning set forth in Section 3(a).

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2.                                       Shelf
Registration.

(a)                                  On
or prior to each Filing Date, the Company shall prepare and file with the
Commission a “Shelf” Registration Statement covering the resale of 100% of the
Registrable Securities on such Filing Date for an offering to be made on a
continuous basis pursuant to Rule 415, provided that if 100% of the Registrable
Securities not previously registered hereunder shall equal or exceed 49% of the
issued and outstanding shares of Common Stock on the actual filing date of a
Registration Statement (such amount, the “Registration Cap”), such
Registration Statement shall register a number of shares of Common Stock which
is equal to the Registration Cap, and the remaining unregistered Registrable
Securities shall be subject to Section 3(c) until all Registrable Securities
are registered; provided, however, that, as a reasonable response
to comments on Rule 415 from the Commission and upon 10 days’ prior written
notice to each Holder, the Company may reduce the Registration Cap to any
percentage of the issued and outstanding shares of Common Stock between 33.0%
and 48.9%; provided, further, that, upon the written request of
Holders of at least 50.1% in interest of the then unregistered Registrable
Securities, the Company shall use best efforts to register an amount of
Registrable Securities in excess of the then Registration Cap in any
Registration Statement, as indicated in such request.  In the event that less than 100% of the
Registrable Securities are included on a Registration Statement, the number of
Registrable Securities to be registered for each Holder shall be reduced
pro-rata among all Holders and each Holder shall have the right to designate
which of its Registrable Securities shall be omitted from the initial
Registration Statement.  The Registration
Statement shall be on Form SB-2 (except if the Company is not then eligible to
register for resale the Registrable Securities on Form SB-2, in which case such
registration shall be on another appropriate form in accordance herewith) and
shall contain (unless otherwise directed by at least an 85% majority in
interest of the Holders) substantially the “Plan of Distribution”
attached hereto as Annex A.  Subject
to the terms of this Agreement, the Company shall use its good faith
commercially reasonable efforts to cause a Registration Statement to be
declared effective under the Securities Act as promptly as possible after the
filing thereof, but in any event prior to the applicable Effectiveness Date,
and shall use its good faith commercially reasonable efforts to keep such
Registration Statement continuously effective under the Securities Act until
all Registrable Securities covered by such Registration Statement have been
sold, or may be sold without volume restrictions pursuant to Rule 144(k), as
determined by the counsel to the Company pursuant to a written opinion letter
to such effect, addressed and acceptable to the Company’s transfer agent and
the affected Holders (the “Effectiveness Period”).  The Company shall telephonically request
effectiveness of a Registration Statement as of 5:00 p.m. (New York City time)
on a Trading Day.  The Company shall
immediately notify the Holders via facsimile or electronic mail of the
effectiveness of a Registration Statement on the same Trading Day that the
Company telephonically confirms effectiveness with the Commission, which shall
be the date requested for effectiveness of a Registration Statement.  The Company shall, by 9:30 a.m. (New York
City time) on the Trading Day after the Effective Date (as defined in the
Purchase Agreement), file a final Prospectus with the Commission as required by
Rule 424.  Failure to so notify the Holder
within 1 Trading Day of such notification or effectiveness or failure to file a
final Prospectus as aforesaid shall be deemed an Event under Section 2(b).

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(b)                                 If
(i) a Registration Statement is not filed on or prior to its Filing Date (if
the Company files a Registration Statement without affording the Holders the
opportunity to review and comment on the same as required by Section 3(a)
herein, the Company shall be deemed to have not satisfied this clause (i)), or
(ii) the Company fails to file with the Commission a request for acceleration
in accordance with Rule 461 promulgated under the Securities Act, within five
Trading Days of the date that the Company is notified (orally or in writing,
whichever is earlier) by the Commission that a Registration Statement will not
be “reviewed,” or not subject to further review, or (iii) prior to its
Effectiveness Date, the Company fails to file a pre-effective amendment and
otherwise respond in writing to comments made by the Commission in respect of
such Registration Statement within 10 Trading Days after the receipt of
comments by or notice from the Commission that such amendment is required in
order for a Registration Statement to be declared effective, or (iv) a
Registration Statement filed or required to be filed hereunder is not declared
effective by the Commission by its Effectiveness Date, or (v) after the
Effectiveness Date, a Registration Statement ceases for any reason to remain
continuously effective as to all Registrable Securities for which it is
required to be effective, or the Holders are otherwise not permitted to utilize
the Prospectus therein to resell such Registrable Securities, for more than 20
consecutive calendar days or more than an aggregate of 30 calendar days during
any 12-month period (which need not be consecutive calendar days) (any such
failure or breach being referred to as an “Event”, and for purposes of clause (i) or (iv) the date
on which such Event occurs, or for purposes of clause (ii) the date on which
such five Trading Day period is exceeded, or for purposes of clause (iii) the
date which such 10 Trading Day period is exceeded, or for purposes of clause
(v) the date on which such 20 or 30 calendar day period, as applicable, is
exceeded being referred to as “Event
Date”), then, in addition to any other rights the Holders may have
hereunder or under applicable law, on each such Event Date and on each monthly
anniversary of each such Event Date (if the applicable Event shall not have
been cured by such date) until the applicable Event is cured, the Company shall
pay to each Holder an amount in cash, as partial liquidated damages and not as
a penalty, equal to 1% of the aggregate purchase price paid by such Holder
pursuant to the Purchase Agreement for any Registrable Securities then held by
such Holder (calculated as if all convertible securities had been fully
converted).  The parties agree that (1)
the Company shall not be liable for liquidated damages under this Agreement
with respect to any Warrants or Warrant Shares, (2) in no event shall the
Company be liable for liquidated damages under this Agreement in excess of 1%
of the aggregate Subscription Amount of the Holders in any 30-day period and
(3) the maximum aggregate liquidated damages payable to a Holder under this
Agreement shall be five percent (5%) of the aggregate Subscription Amount paid
by such Holder pursuant to the Purchase Agreement. If the Company fails to pay
any partial liquidated damages pursuant to this Section in full within seven
days after the date payable, the Company will pay interest thereon at a rate of
18% per annum (or such lesser maximum amount that is permitted to be paid by
applicable law) to the Holder, accruing daily from the date such partial
liquidated damages are due until such amounts, plus all such interest thereon,
are paid in full. The partial liquidated damages pursuant to the terms hereof
shall apply on a daily pro-rata basis for any portion of a month prior to the
cure of an Event.

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3.                                       Registration
Procedures

In connection with
the Company’s registration obligations hereunder, the Company shall:

(a)                                  Not
less than five Trading Days prior to the filing of each Registration Statement
and not less than 1 Trading Day prior to the filing of any related Prospectus
or any amendment or supplement thereto (including any document that would be
incorporated or deemed to be incorporated therein by reference), the Company
shall, (i) furnish to each Holder copies of all such documents proposed to be
filed, which documents (other than those incorporated or deemed to be
incorporated by reference) will be subject to the review of such Holders,
provided that as to any Prospectus supplement or post-effective amendment to a
Registration Statement, the Company shall only be required to provide the
Holders with copies of such documents prior to the filing thereof to the extent
that such Prospectus supplement or post-effective amendment contains changes to
the Seller Stockholder or Plan of Distribution sections, and (ii) cause its
officers and directors, counsel and independent certified public accountants to
respond to such inquiries as shall be necessary, in the reasonable opinion of
respective counsel to each Holder, to conduct a reasonable investigation within
the meaning of the Securities Act. The Company shall not file a Registration
Statement or any such Prospectus or any amendments or supplements thereto to
which the Holders of a majority of the Registrable Securities shall reasonably
object in good faith, provided that, the Company is notified of such objection
in writing no later than 5 Trading Days after the Holders have been so
furnished copies of a Registration Statement or 1 Trading Day after the Holders
have been so furnished copies of any related Prospectus or amendments or
supplements thereto. Each Holder agrees to furnish to the Company a completed
questionnaire in the form attached to this Agreement as Annex B (a “Selling
Shareholder Questionnaire”) not less than three Trading Days prior to the
Filing Date or by the end of the third Trading Day following the date on which
such Holder receives draft materials in accordance with this Section.

(b)                                 (i)
Prepare and file with the Commission such amendments, including post-effective
amendments, to a Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep a Registration Statement continuously
effective as to the applicable Registrable Securities for the Effectiveness
Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the
Registrable Securities; (ii) cause the related Prospectus to be amended or
supplemented by any required Prospectus supplement (subject to the terms of
this Agreement), and as so supplemented or amended to be filed pursuant to Rule
424; (iii) respond as promptly as reasonably possible to any comments received
from the Commission with respect to a Registration Statement or any amendment
thereto and provide as promptly as reasonably possible to the Holders true and
complete copies of all correspondence from and to the Commission relating to a
Registration Statement (provided that the Company may excise any information
contained therein which would constitute material non-public information as to
any Holder which has not executed a confidentiality agreement with the
Company); and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange

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Act with respect to the disposition of all
Registrable Securities covered by a Registration Statement during the
applicable period in accordance (subject to the terms of this Agreement) with
the intended methods of disposition by the Holders thereof set forth in such
Registration Statement as so amended or in such Prospectus as so supplemented.

(c)                                  In
the event that the Company is unable to register 100% of the Registrable
Securities on a Registration Statement, as contemplated by the proviso
regarding Registrable Securities in Section 2(a) above, the Company shall file,
as soon as reasonably practicable but in no event later than the applicable
Filing Date, an additional Registration Statement covering the resale by the
Holders of an amount equal to the Registration Cap, as may be adjusted
according to the proviso in Section 2(a). 
If, following such subsequent Registration Statement, there are
additional unregistered Registrable Securities, the Company shall file
subsequent Registration Statements pursuant to the terms of this Section 3(c)
until all Registrable Securities are registered.

(d)                                 Notify
the Holders of Registrable Securities to be sold (which notice shall, pursuant
to clauses (iii) through (vi) hereof, be accompanied by an instruction to
suspend the use of the Prospectus until the requisite changes have been made)
as promptly as reasonably possible (and, in the case of (i)(A) below, not less
than 1 Trading Day prior to such filing) and (if requested by any such Person)
confirm such notice in writing no later than one Trading Day following the day
(i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment
to a Registration Statement is proposed to be filed; (B) when the Commission
notifies the Company whether there will be a “review” of such Registration
Statement and whenever the Commission comments in writing on such Registration
Statement; and (C) with respect to a Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other Federal or state governmental authority
for amendments or supplements to a Registration Statement or Prospectus or for
additional information; (iii) of the issuance by the Commission or any other
federal or state governmental authority of any stop order suspending the
effectiveness of a Registration Statement covering any or all of the
Registrable Securities or the initiation of any Proceedings for that purpose;
(iv) 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
Registrable Securities for sale in any jurisdiction, or the initiation or
threatening of any Proceeding for such purpose; (v) of the occurrence of any
event or passage of time that makes the financial statements included in a
Registration Statement ineligible for inclusion therein or any statement made
in a Registration Statement or Prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect
or that requires any revisions to a Registration Statement, Prospectus or other
documents so that, in the case of a Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue statement of a material fact
or omit to state any 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; and (vi) the occurrence or existence of any pending
corporate development with respect to the Company that the Company believes may
be material and that, in the determination of the Company, makes it not in the
best interest of the Company to allow continued availability of a Registration
Statement or Prospectus, provided that any and all of such information shall
remain confidential to

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each Holder until such information otherwise
becomes public, unless disclosure by a Holder is required by law; provided,
further, that notwithstanding each Holder’s agreement to keep such
information confidential, the Holders make no acknowledgement that any such
information is material, non-public information.

(e)                                  Use
its good faith commercially reasonable efforts to avoid the issuance of, or, if
issued, obtain the withdrawal of (i) any order suspending the effectiveness of
a Registration Statement, or (ii) any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in
any jurisdiction, at the earliest practicable moment.

(f)                                    Furnish
to each Holder, without charge, at least one conformed copy of each such
Registration Statement and each amendment thereto, including financial
statements and schedules, all documents incorporated or deemed to be
incorporated therein by reference to the extent requested by such Person, and
all exhibits to the extent requested by such Person (including those previously
furnished or incorporated by reference) promptly after the filing of such
documents with the Commission.

(g)                                 Subject
to the terms of this Agreement, the Company hereby consents to the use of such
Prospectus and each amendment or supplement thereto by each of the selling
Holders in connection with the offering and sale of the Registrable Securities
covered by such Prospectus and any amendment or supplement thereto, except
after the giving of any notice pursuant to Section 3(d).

(h)                                 The
Company shall effect a filing with respect to the public offering contemplated
by the Registration Statement (an “Issuer Filing”) with the National
Association of Securities Dealers, Inc. (“NASD”) Corporate Financing
Department pursuant to NASD Rule 2710(b)(10)(A)(i) within one Trading Day of
the date that the Registration Statement is first filed with the Commission and
pay the filing fee required by such Issuer Filing.  The Company shall use commercially reasonable
efforts to pursue the Issuer Filing until the NASD issues a letter confirming
that it does not object to the terms of the offering contemplated by the
Registration Statement.  A copy of the
Issuer Filing and all related correspondence with respect thereto shall be
provided to FWS.

(i)                                     Prior
to any resale of Registrable Securities by a Holder, use its commercially
reasonable efforts to register or qualify or cooperate with the selling Holders
in connection with the registration or qualification (or exemption from the
Registration or qualification) of such Registrable Securities for the resale by
the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each
registration or qualification (or exemption therefrom) effective during the Effectiveness
Period and to do any and all other acts or things reasonably necessary to
enable the disposition in such jurisdictions of the Registrable Securities
covered by each Registration Statement; provided, that the Company shall not be
required to qualify generally to do business in any jurisdiction where it is
not then so qualified, subject the Company to any material tax in any such
jurisdiction where it is not then so subject or file a general consent to
service of process in any such jurisdiction.

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(j)                                     If
requested by the Holders, cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be delivered to a transferee pursuant to a Registration Statement, which
certificates shall be free, to the extent permitted by the Purchase Agreement,
of all restrictive legends, and to enable such Registrable Securities to be in
such denominations and registered in such names as any such Holders may
request.

(k)                                  Upon
the occurrence of any event contemplated by this Section 3, as promptly as
reasonably possible under the circumstances taking into account the Company’s
good faith assessment of any adverse consequences to the Company and its
stockholders of the premature disclosure of such event, prepare a supplement or
amendment, including a post-effective amendment, to a Registration Statement or
a supplement to the related Prospectus or any document incorporated or deemed
to be incorporated therein by reference, and file any other required document
so that, as thereafter delivered, neither a Registration Statement nor such
Prospectus will 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.  If the Company notifies
the Holders in accordance with clauses (iii) through (vi) of Section 3(d) above
to suspend the use of any Prospectus until the requisite changes to such
Prospectus have been made, then the Holders shall suspend use of such
Prospectus.  The Company will use its
good faith commercially reasonable efforts to ensure that the use of the
Prospectus may be resumed as promptly as is practicable.  The Company shall be entitled to exercise its
right under this Section 3(k) to suspend the availability of a Registration
Statement and Prospectus, subject to the payment of partial liquidated damages
pursuant to Section 2(b), for a period not to exceed 60 calendar days (which need
not be consecutive days) in any 12 month period.

(l)                                     Comply
with all applicable rules and regulations of the Commission.

(m)                               The
Company may require each selling Holder to furnish to the Company a certified
statement as to the number of shares of Common Stock beneficially owned by such
Holder and, if required by the Commission, the natural persons thereof that
have voting and dispositive control over the Shares. During any periods that
the Company is unable to meet its obligations hereunder with respect to the
registration of the Registrable Securities solely because any Holder fails to
furnish such information within three Trading Days of the Company’s request,
any liquidated damages that are accruing at such time as to such Holder only
shall be tolled and any Event that may otherwise occur solely because of such
delay shall be suspended as to such Holder only, until such information is
delivered to the Company.

4.                                       Registration
Expenses.  All fees and expenses
incident to the performance of or compliance with this Agreement by the Company
shall be borne by the Company whether or not any Registrable Securities are
sold pursuant to a Registration Statement. 
The fees and expenses referred to in the foregoing sentence shall
include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses) (A) with respect to filings required to
be made with any Trading Market on which the Common Stock is then listed for
trading, (B)

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in compliance with applicable state securities or Blue
Sky laws reasonably agreed to by the Company in writing (including, without
limitation, fees and disbursements of counsel for the Company in connection
with Blue Sky qualifications or exemptions of the Registrable Securities) and
(C) if not previously paid by the Company in connection with an Issuer Filing,
with respect to any filing that may be required to be made by any broker
through which a Holder intends to make sales of Registrable Securities with
NASD Regulation, Inc. pursuant to the NASD Rule 2710, so long as the broker is
receiving no more than a customary brokerage commission in connection with such
sale, (ii) printing expenses (including, without limitation, expenses of
printing certificates for Registrable Securities), (iii) messenger, telephone
and delivery expenses, (iv) fees and disbursements of counsel for the Company,
(v) Securities Act liability insurance, if the Company so desires such
insurance, and (vi) fees and expenses of all other Persons retained by the
Company in connection with the consummation of the transactions contemplated by
this Agreement.  In addition, the Company
shall be responsible for all of its internal expenses incurred in connection
with the consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit and the
fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder. In no event shall
the Company be responsible for any broker or similar commissions of any Holder
or, except to the extent provided for in the Transaction Documents, any legal
fees or other costs of the Holders.

5.                                       Indemnification.

(a)                                  Indemnification
by the Company.  The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, members, partners, agents, brokers
(including brokers who offer and sell Registrable Securities as principal as a
result of a pledge or any failure to perform under a margin call of Common
Stock), investment advisors and employees (and any other Persons with a
functionally equivalent role of a Person holding such titles, notwithstanding a
lack of such title or any other title) of each of them, each Person who
controls any such Holder (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) and the officers, directors, members,
shareholders, partners, agents and employees (and any other Persons with a
functionally equivalent role of a Person holding such titles, notwithstanding a
lack of such title or any other title)of each such controlling Person, to the
fullest extent permitted by applicable law, from and against any and all
losses, claims, damages, liabilities, costs (including, without limitation,
reasonable attorneys’ fees) and expenses (collectively, “Losses”), as
incurred, arising out of or relating to (1) any untrue or alleged untrue
statement of a material fact contained in a Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or form
of prospectus or supplement thereto, in light of the circumstances under which
they were made) not misleading, or (2) any violation or alleged violation by
the Company of the Securities Act, Exchange Act or any state securities law, or
any rule or regulation thereunder, in connection with the performance of its
obligations under this Agreement, except to the extent, but only to the extent,
that (i) such untrue statements or omissions

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are based solely upon information regarding
such Holder furnished in writing to the Company by such Holder expressly for
use therein, or to the extent that such information relates to such Holder or
such Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
a Registration Statement, such Prospectus or such form of Prospectus or in any
amendment or supplement thereto (it being understood that the Holder has
approved Annex A hereto for this purpose), (ii) in the case of an occurrence of
an event of the type specified in Section 3(d)(iii)-(vi), the use by such
Holder of an outdated or defective Prospectus after the Company has notified
such Holder in writing that the Prospectus is outdated or defective and prior
to the receipt by such Holder of the Advice contemplated in Section 6(d) or
(iii) such Holder engaged in willful misconduct.  The Company shall notify the Holders promptly
of the institution, threat or assertion of any Proceeding arising from or in
connection with the transactions contemplated by this Agreement of which the
Company is aware.

(b)                                 Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and
hold harmless the Company, its directors, officers, agents and employees, each
Person who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors,
officers, agents or employees of such controlling Persons, to the fullest
extent permitted by applicable law, from and against all Losses, as incurred,
to the extent arising out of or based solely upon: (x) such Holder’s failure to
comply with the prospectus delivery requirements of the Securities Act or (y)
any untrue or alleged untrue statement of a material fact contained in any
Registration Statement, any Prospectus, or any form of prospectus, or in any
amendment or supplement thereto or in any preliminary prospectus, or arising
out of or relating to any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein not
misleading (i) to the extent, but only to the extent, that such untrue statement
or omission is contained in any information so furnished in writing by such
Holder to the Company specifically for inclusion in such Registration Statement
or such Prospectus or (ii) to the extent that such information relates to such
Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
a Registration Statement (it being understood that the Holder has approved Annex
A hereto for this purpose), such Prospectus or such form of Prospectus or
in any amendment or supplement thereto or (iii) in the case of an occurrence of
an event of the type specified in Section 3(d)(iii)-(vi), the use by such
Holder of an outdated or defective Prospectus after the Company has notified
such Holder in writing that the Prospectus is outdated or defective and prior
to the receipt by such Holder of the Advice contemplated in Section 6(d).  In no event shall the liability of any
selling Holder hereunder be greater in amount than the dollar amount of the net
proceeds received by such Holder upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

(c)                                  Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or
asserted against any Person entitled to indemnity hereunder (an “Indemnified
Party”), such Indemnified Party shall promptly notify the Person from whom
indemnity is sought (the “Indemnifying Party”) in writing, and the
Indemnifying Party shall have the right to assume the defense thereof,
including the employment of counsel reasonably

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satisfactory to the Indemnified Party and the
payment of all fees and expenses incurred in connection with defense thereof;
provided, that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant
to this Agreement, except (and only) to the extent that it shall be finally
determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) that such failure shall have prejudiced
the Indemnifying Party.

An Indemnified Party shall have the right to employ
separate counsel in any such Proceeding and to participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Party or Parties unless: 
(1) the Indemnifying Party has agreed in writing to pay such fees and
expenses; (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to
such Indemnified Party in any such Proceeding; or (3) the named parties to any
such Proceeding (including any impleaded parties) include both such Indemnified
Party and the Indemnifying Party, and counsel to the Indemnified Party shall
reasonably believe that a material conflict of interest is likely to exist if
the same counsel were to represent such Indemnified Party and the Indemnifying
Party (in which case, if such Indemnified Party notifies the Indemnifying Party
in writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and the reasonable fees and expenses of no more than one
separate counsel shall be at the expense of the Indemnifying Party).  The Indemnifying Party shall not be liable
for any settlement of any such Proceeding effected without its written consent,
which consent shall not be unreasonably withheld or delayed.  No Indemnifying Party shall, without the
prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party
from all liability on claims that are the subject matter of such Proceeding.

Subject to the terms of this Agreement, all reasonable
fees and expenses of the Indemnified Party (including reasonable fees and
expenses to the extent incurred in connection with investigating or preparing
to defend such Proceeding in a manner not inconsistent with this Section) shall
be paid to the Indemnified Party, as incurred, within ten Trading Days of
written notice thereof to the Indemnifying Party, provided that the Indemnified
Party shall promptly reimburse the Indemnifying Party for that portion of such
fees and expenses applicable to such actions for which such Indemnified Party
is judicially determined to be not entitled to indemnification hereunder.

(d)                                 Contribution.  If the indemnification under Section 5(a) or
5(b) is unavailable to an Indemnified Party or insufficient to hold an
Indemnified Party harmless for any Losses, then each Indemnifying Party shall
contribute to the amount paid or payable by such Indemnified Party, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying
Party and Indemnified Party in connection with the actions, statements or
omissions that resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified
Party shall be determined by reference to, among other things, whether any
action in question, including any untrue or alleged untrue statement of a
material fact or omission

 11
 

or alleged omission of a material fact, has
been taken or made by, or relates to information supplied by, such Indemnifying
Party or Indemnified Party, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such action, statement or
omission.  The amount paid or payable by
a party as a result of any Losses shall be deemed to include, subject to the
limitations set forth in this Agreement, any reasonable attorneys’ or other
fees or expenses incurred by such party in connection with any Proceeding to
the extent such party would have been indemnified for such fees or expenses if
the indemnification provided for in this Section was available to such party in
accordance with its terms.

The parties hereto agree
that it would not be just and equitable if contribution pursuant to this
Section 5(d) were determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations
referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this
Section 5(d), no Holder shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the net proceeds actually received by
such Holder from the sale of the Registrable Securities subject to the
Proceeding exceeds the amount of any damages that such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission, except in the case of fraud by such Holder.

The indemnity and contribution agreements contained in
this Section are in addition to any liability that the Indemnifying Parties may
have to the Indemnified Parties.

6.                                       Miscellaneous.

(a)                                  Remedies.  In the event of a breach by the Company or by
a Holder of any of their respective obligations under this Agreement, each
Holder or the Company, as the case may be, in addition to being entitled to
exercise all rights granted by law and under this Agreement, including recovery
of damages, shall be entitled to specific performance of its rights under this
Agreement.  The Company and each Holder
agree that monetary damages would not provide adequate compensation for any
losses incurred by reason of a breach by it of any of the provisions of this
Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall not assert or shall
waive the defense that a remedy at law would be adequate.

(b)                                 No
Piggyback on Registrations.  Except
as set forth on Schedule 6(b) attached hereto or in connection with
issuances contemplated by clause (e) under the definition of Exempt Issuance in
the Purchase Agreement, neither the Company nor any of its security holders
(other than the Holders in such capacity pursuant hereto) may include securities
of the Company in the initial Registration Statement other than the Registrable
Securities.  The Company shall not file
any other registration statements until the initial Registration Statement
required hereunder is declared effective by the Commission, provided that this
Section 6(b) shall not prohibit the Company from filing amendments to
registration statements filed prior to the date of this Agreement.

 12
 

(c)                                  Compliance.  Each Holder covenants and agrees that it will
comply with the prospectus delivery requirements of the Securities Act as
applicable to it in connection with sales of Registrable Securities pursuant to
a Registration Statement.

(d)                                 Discontinued
Disposition.  By its acquisition of
Registrable Securities, each Holder agrees that, upon receipt of a notice from
the Company of the occurrence of any event of the kind described in Section
3(d), such Holder will forthwith discontinue disposition of such Registrable
Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been
supplemented or amended) may be resumed. 
The Company will use its good faith commercially reasonable efforts to
ensure that the use of the Prospectus may be resumed as promptly as it
practicable.  The Company agrees and
acknowledges that any periods during which the Holder is required to
discontinue the disposition of the Registrable Securities hereunder shall be
subject to the provisions of Section 2(b).

(e)                                  Piggy-Back
Registrations.  If at any time during
the Effectiveness Period there is not an effective Registration Statement
covering all of the Registrable Securities and the Company shall determine to
prepare and file with the Commission a registration statement relating to an
offering for its own account or the account of others under the Securities Act
of any of its equity securities, other than on Form S-4 or Form S-8 (each as
promulgated under the Securities Act) or their then equivalents relating to
equity securities to be issued solely in connection with any acquisition of any
entity or business or equity securities issuable in connection with the stock
option or other employee benefit plans, then the Company shall send to each
Holder a written notice of such determination and, if within fifteen days after
the date of such notice, any such Holder shall so request in writing, the
Company shall include in such registration statement all or any part of such
Registrable Securities such Holder requests to be registered; provided, however,
that, the Company shall not be required to register any Registrable Securities
pursuant to this Section 6(e) that are eligible for resale pursuant to Rule
144(k) promulgated under the Securities Act or that are the subject of a then effective
Registration Statement.

(f)                                    Amendments and Waivers. The
provisions of this Agreement, including the provisions of this sentence, may
not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the same shall be in
writing and signed by the Company and Holders of at least 50.1% of the then
outstanding Registrable Securities. 
Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the
rights of Holders and that does not directly or indirectly affect the rights of
other Holders may be given by Holders of all of the Registrable Securities to
which such waiver or consent relates; provided, however, that the
provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the immediately preceding sentence.

(g)                                 Notices. Any and all notices or
other communications or deliveries required or permitted to be provided
hereunder shall be delivered as set forth in the Purchase Agreement.

 13
 

(h)                                 Successors and Assigns. This
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the parties and shall inure to the benefit of each
Holder. The Company may not assign its rights (except by merger) or obligations
hereunder without the prior written consent of all of the Holders of the
then-outstanding Registrable Securities. Each Holder may assign their
respective rights hereunder in the manner and to the Persons as permitted under
the Purchase Agreement.

(i)                                     No Inconsistent Agreements.
Neither the Company nor any of its Subsidiaries has entered, as of the date
hereof, nor shall the Company or any of its Subsidiaries, on or after the date
of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in
this Agreement or otherwise conflicts with the provisions hereof.  Except as set forth on Schedule 6(i),
neither the Company nor any of its subsidiaries has previously entered into any
agreement granting any registration rights with respect to any of its
securities to any Person that have not been satisfied in full.

(j)                                     Execution
and Counterparts.  This Agreement may
be executed in two or more counterparts, all of which when taken together shall
be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party,
it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered
by facsimile transmission or by e-mail delivery of a “.pdf” format data file,
such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force
and effect as if such facsimile or “.pdf” signature page were an original
thereof.

(k)                                  Governing
Law.  All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall
be determined in accordance with the provisions of the Purchase Agreement.

(l)                                     Cumulative
Remedies.  The remedies provided
herein are cumulative and not exclusive of any other remedies provided by law.

(m)                               Severability.
If any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction.  It is hereby
stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

 14
 

(n)                                 Headings.  The headings in this Agreement are for
convenience only, do not constitute a part of this Agreement, and shall not be
deemed to limit or affect any of the provisions hereof.

(o)                                 Independent
Nature of Holders’ Obligations and Rights. 
The obligations of each Holder hereunder are several and not joint with
the obligations of any other Holder hereunder, and no Holder shall be
responsible in any way for the performance of the obligations of any other
Holder hereunder.  Nothing contained
herein or in any other agreement or document delivered at any closing, and no
action taken by any Holder pursuant hereto or thereto, shall be deemed to
constitute the Holders as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Holders are in any way
acting in concert with respect to such obligations or the transactions
contemplated by this Agreement.  Each
Holder shall be entitled to protect and enforce its rights, including without
limitation the rights arising out of this Agreement, and it shall not be
necessary for any other Holder to be joined as an additional party in any
proceeding for such purpose.

 15

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

	
  

  	
   

  	
  SOUTHWEST CASINO CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Thomas E. Fox

  
	
   

  	
   

  	
   

  	
  Title:  President

  

 

 

[SIGNATURE PAGE OF
HOLDERS FOLLOWS]

[SIGNATURE PAGE OF
HOLDERS TO SWCC RRA]

 

	
  Name of Holder:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Authorized Signatory:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
								

 

 

[SIGNATURE PAGES
CONTINUE]

 17
 

ANNEX A

Plan of Distribution

Each Selling Stockholder
(the “Selling Stockholders”) of the common stock and any of their
pledgees, assignees and successors-in-interest may, from time to time, sell any
or all of their shares of common stock on the OTC Bulletin Board or any other
stock exchange, market or trading facility on which the shares are traded or in
private transactions.  These sales may be
at fixed or negotiated prices.  A Selling
Stockholder may use any one or more of the following methods when selling
shares:

·                  ordinary brokerage transactions and
transactions in which the broker-dealer solicits purchasers;

·                  block trades in which the broker-dealer
will attempt to sell the shares as agent but may position and resell a portion
of the block as principal to facilitate the transaction;

·                  purchases by a broker-dealer as
principal and resale by the broker-dealer for its account;

·                  an exchange distribution in
accordance with the rules of the applicable exchange;

·                  privately negotiated transactions;

·                  settlement of short sales entered
into after the effective date of the registration statement of which this
prospectus is a part;

·                  broker-dealers may agree with
the Selling Stockholders to sell a specified number of such shares at a
stipulated price per share;

·                  through the writing or settlement of
options or other hedging transactions, whether through an options exchange or
otherwise;

·                  a combination of any such methods of
sale; or

·                  any other method permitted pursuant
to applicable law.

The Selling Stockholders
may also sell shares under Rule 144 under the Securities Act of 1933, as
amended (the “Securities Act”), if available, rather than under this
prospectus.

Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers
to participate in sales.  Broker-dealers
may receive commissions or discounts from the Selling Stockholders (or, if any
broker-dealer acts as agent for the purchaser of shares, from the
purchaser) in amounts to be negotiated, but, except as set forth in a
supplement to this Prospectus, in the case of an agency transaction not in
excess of a customary brokerage commission in compliance with NASDR Rule 2440;
and in the case of a principal transaction a markup or markdown in compliance
with NASDR IM-2440.

 18
 

In connection with the
sale of the common stock or interests therein, the Selling Stockholders may
enter into hedging transactions with broker-dealers or other financial
institutions, which may in turn engage in short sales of the Common Stock in
the course of hedging the positions they assume.  The Selling Stockholders may also sell shares
of the common stock short and deliver these securities to close out their short
positions, or loan or pledge the common stock to broker-dealers that in turn
may sell these securities.  The Selling
Stockholders may also enter into option or other transactions with
broker-dealers or other financial institutions or the creation of one or more
derivative securities which require the delivery to such broker-dealer or other
financial institution of shares offered by this prospectus, which shares such
broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).

The Selling Stockholders
and any broker-dealers or agents that are involved in selling the shares may be
deemed to be “underwriters” within the meaning of the Securities Act in
connection with such sales.  In such
event, any commissions received by such broker-dealers or agents and any profit
on the resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act.  Each Selling Stockholder has informed the
Company that it does not have any written or oral agreement or understanding,
directly or indirectly, with any person to distribute the Common Stock. In no
event shall any broker-dealer receive fees, commissions and markups that, in
the aggregate, would exceed eight percent (8%).

The Company is required
to pay certain fees and expenses incurred by the Company incident to the
registration of the shares.  The Company
has agreed to indemnify the Selling Stockholders against certain losses,
claims, damages and liabilities, including liabilities under the Securities Act.

Because Selling
Stockholders may be deemed to be “underwriters” within the meaning of the
Securities Act, they will be subject to the prospectus delivery requirements of
the Securities Act including Rule 172 thereunder.  In addition, any securities covered by this
prospectus that qualify for sale pursuant to Rule 144 under the Securities Act
may be sold under Rule 144 rather than under this prospectus.  There is no underwriter or coordinating
broker acting in connection with the proposed sale of the resale shares by the
Selling Stockholders.

We agreed to keep this
prospectus effective until the earlier of (i) the date on which the shares may
be resold by the Selling Stockholders without registration and without regard
to any volume limitations by reason of Rule 144(k) under the Securities Act or
any other rule of similar effect or (ii) all of the shares have been sold
pursuant to this prospectus or Rule 144 under the Securities Act or any other
rule of similar effect.  The resale
shares will be sold only through registered or licensed brokers or dealers if
required under applicable state securities laws. In addition, in certain
states, the resale shares may not be sold unless they have been registered or
qualified for sale in the applicable state or an exemption from the
registration or qualification requirement is available and is complied with.

Under applicable rules
and regulations under the Exchange Act, any person engaged in the distribution
of the resale shares may not simultaneously engage in market making activities
with respect to the common stock for the applicable restricted period, as
defined in Regulation

 19
 

M, prior to the
commencement of the distribution.  In
addition, the Selling Stockholders will be subject to applicable provisions of
the Exchange Act and the rules and regulations thereunder, including Regulation
M, which may limit the timing of purchases and sales of shares of the common
stock by the Selling Stockholders or any other person.  We will make copies of this prospectus
available to the Selling Stockholders and have informed them of the need to
deliver a copy of this prospectus to each purchaser at or prior to the time of
the sale (including by compliance with Rule 172 under the Securities Act).

 20
 

Annex B

SOUTHWEST CASINO CORPORATION

Selling Securityholder Notice and Questionnaire

The undersigned beneficial owner of common stock (the “Registrable
Securities”) of Southwest Casino Corporation, a Nevada corporation (the “Company”),
understands that the Company has filed or intends to file with the Securities
and Exchange Commission (the “Commission”) a registration statement (the
“Registration Statement”) for the registration and resale under Rule 415
of the Securities Act of 1933, as amended (the “Securities Act”), of the
Registrable Securities, in accordance with the terms of the Registration Rights
Agreement (the “Registration Rights Agreement”) to which this document
is annexed.  A copy of the Registration
Rights Agreement is available from the Company upon request at the address set
forth below.  All capitalized terms not
otherwise defined herein shall have the meanings ascribed thereto in the
Registration Rights Agreement.

Certain legal consequences arise from being named as a selling
securityholder in the Registration Statement and the related prospectus.  Accordingly, holders and beneficial owners of
Registrable Securities are advised to consult their own securities law counsel
regarding the consequences of being named or not being named as a selling
securityholder in the Registration Statement and the related prospectus.

NOTICE

The undersigned beneficial owner (the “Selling Securityholder”)
of Registrable Securities hereby elects to include the Registrable Securities
owned by it in the Registration Statement.

 21
 

The
undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate:

QUESTIONNAIRE

1.                                      Name.

(a)                                  Full Legal Name of Selling
Securityholder

 

(b)                                 Full Legal Name
of Registered Holder (if not the same as (a) above) through which Registrable
Securities are held:

 

(c)                                  Full Legal Name
of Natural Control Person (which means a natural person who directly or
indirectly alone or with others has power to vote or dispose of the securities
covered by the questionnaire):

 

2.  Address for Notices to Selling Securityholder:

 

 

 

Telephone:

Fax:

Contact Person:

3.  Broker-Dealer
Status:

(a)                                  Are you a
broker-dealer?

Yes   o                                No   o

(b)                                 If “yes” to
Section 3(a), did you receive your Registrable Securities as compensation for
investment banking services to the Company?

Yes   o                                No   o

 22
 

Note:                   If no, the Commission’s
staff has indicated that you should be identified as an underwriter in the
Registration Statement.

(c)                                  Are you an
affiliate of a broker-dealer?

Yes   o                                No   o

(d)                                 If you are an
affiliate of a broker-dealer, do you certify that you bought the Registrable
Securities in the ordinary course of business, and at the time of the purchase
of the Registrable Securities to be resold, you had no agreements or
understandings, directly or indirectly, with any person to distribute the
Registrable Securities?

Yes   o                                No   o

Note:                   If no, the Commission’s
staff has indicated that you should be identified as an underwriter in the
Registration Statement.

4.  Beneficial Ownership of Other Securities of
the Company Owned by the Selling Securityholder.

Except as set forth below in this Item 4, the
undersigned is not the beneficial or registered owner of any securities of the
Company other than the securities issuable pursuant to the Purchase Agreement.

(a)                                  Type and Amount
of other securities beneficially owned by the Selling Securityholder:

 

 

5.  Relationships with the Company:

Except as set forth below, neither the undersigned
nor any of its affiliates, officers, directors or principal equity holders
(owners of 5% of more of the equity securities of the undersigned) has held any
position or office or has had any other material relationship with the Company
(or its predecessors or affiliates) during the past three years.

State
any exceptions here:

 

 

 23
 

The undersigned agrees to promptly notify the Company of any
inaccuracies or changes in the information provided herein that may occur
subsequent to the date hereof at any time while the Registration Statement
remains effective.

By signing below, the undersigned consents to the disclosure of the
information contained herein in its answers to Items 1 through 5 and the
inclusion of such information in the Registration Statement and the related
prospectus and any amendments or supplements thereto.  The undersigned understands that such
information will be relied upon by the Company in connection with the
preparation or amendment of the Registration Statement and the related
prospectus.

IN WITNESS WHEREOF the undersigned, by authority duly given, has caused
this Notice and Questionnaire to be executed and delivered either in person or
by its duly authorized agent.

	
  Dated:

  	
   

  	
   

  	
  Beneficial Owner:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
							

 

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE
AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

 24Exhibit 10.1

RECKSON OPERATING PARTNERSHIP,
L.P.,

as Issuer

FIRST SUPPLEMENTAL INDENTURE

Dated as of January 25, 2007

Supplementing the Indenture, dated as of March 26, 1999, among

Reckson Operating Partnership,
L.P., as Issuer, Reckson Associates Realty Corp., as Guarantor, 

and The Bank of New York, as Trustee.

THE BANK OF NEW YORK,

as Trustee

 

FIRST SUPPLEMENTAL INDENTURE,
dated as of January 25, 2007 (this “First Supplemental Indenture”), to
the INDENTURE, dated as of March 26, 1999 (the “Indenture”), among
Reckson Operating Partnership, L.P., a Delaware limited partnership (the “Issuer”),
Reckson Associates Realty Corp., a Maryland corporation (the “Guarantor”
or “Reckson”), and The Bank of New York, a New York banking corporation,
as trustee (the “Trustee”), which governs the terms of the Issuer’s
4.00% Exchangeable Senior Debentures due 2025 (the “Debentures”), 5.875%
Notes due 2014 (the “5.875% Notes”), 5.15% Notes due 2011 (the “5.15%
Notes”), 6.00% Notes due 2007 (the “6.00% Notes due 2007”), 7.75%
Notes due 2009 (the “7.75% Notes”) and 6.00% Notes due 2016 (the “6.00%
Notes due 2016” and, together with the Debentures, 5.875% Notes, 5.15%
Notes, 6.00% Notes due 2007 and 7.75% Notes, the “Notes”).

WHEREAS, the Debentures are also
governed by the terms of the Officers’ Certificate, dated June 27, 2005 (the “Officers’
Certificate”), pursuant to which the Debentures were established;

WHEREAS, pursuant to the
Agreement and Plan of Merger, dated as of August 3, 2006 (the “Merger
Agreement”), among the Issuer, the Guarantor, SL Green Realty Corp., a
Maryland corporation (“Purchaser”), Wyoming Acquisition Corp., a
Maryland corporation and wholly-owned subsidiary of Purchaser (“Merger Sub”),
Wyoming Acquisition GP LLC, a Delaware limited liability company (“Acquisition
GP”), and Wyoming Acquisition Partnership LP, a Delaware limited
partnership (“Acquisition LP”), Reckson will be merged (the “Merger”)
with and into Merger Sub and Merger Sub shall be the surviving corporation (the
“Surviving Corporation”), Acquisition LP with merge with and into the
Issuer and the Issuer shall be the surviving partnership (the “Partnership
Merger”) and the name of the Surviving Corporation will be Reckson
Associates Realty Corp.;

WHEREAS, the Merger and the
Partnership Merger occurred on January 25, 2007;

WHEREAS, Section 901(1) of
the Indenture provides that, without the consent of the Holders, the Issuer,
the Guarantor and the Trustee may amend the Indenture to provide for the
assumption of the Guarantor’s obligations to the Holders of the Notes in the
case of a merger or consolidation or a sale of all or substantially all of such
entity’s assets pursuant to Section 803 of the Indenture;

WHEREAS, the parties hereto wish
to amend the Indenture to replace Reckson with the Surviving Corporation as the
Guarantor under the Indenture upon the consummation of the Merger;

WHEREAS, Section 4.10 of the
Officers’ Certificate provides, among other things, that if the Guarantor is a
party to a transaction that constitutes a Public Acquirer Change of Control,
the Issuer may irrevocably elect to change the exchange obligation of the
Guarantor with respect to the Debentures into an obligation to deliver, upon
exchange of Debentures, cash, shares of Acquirer Common Stock, or a combination
thereof, at the election of the Guarantor, in the same manner as the Guarantor
would otherwise be required to satisfy its exchange obligations in accordance
with the provisions of Section 4.12 of the Officers’ Certificate, and, in
connection with such election, the Exchange Rate in effect immediately prior to
the effective time of such Public Acquirer Change of Control will be adjusted
in accordance with the provisions of Section 4.10 of the Officers’ Certificate;

WHEREAS, the parties hereto wish
to amend the Indenture to irrevocably elect to change the exchange obligation
of the Guarantor with respect to the Debentures into an obligation to deliver,
upon exchange of Debentures, cash, shares of common stock of Purchaser, or a
combination thereof, at the election of Purchaser, in the same manner as
Purchaser would otherwise be required to satisfy its exchange obligations in
accordance with the provisions of Section 4.12 of the Officers’ Certificate;

WHEREAS, Section 801 and 803 of
the Indenture and Section 4.16 of the Officers’ Certificate provide that
following the consummation of any transaction pursuant to which the Debentures
become exchangeable into common stock or other securities issued by a third
party, such third party will fully and unconditionally guarantee all
obligations under the Debentures;

WHEREAS, the parties hereto wish
to amend the Indenture to provide for the full and unconditional guarantee by
Purchaser of all obligations under the Debentures and the Indenture with
respect to the Debentures;

WHEREAS, Section 901(9) of the
Indenture provides that, without the consent of the Holders, the Issuer, the
Guarantor and the Trustee may amend the Indenture to cure any ambiguity or to
correct or supplement any provision of the Indenture which may be defective or
inconsistent with any other provision in the Indenture, or to make any other
provisions with respect to matters or questions arising under the Indenture
which do not adversely affect the interests of the Holders of Notes in any
material respect;

WHEREAS, the Issuer believes
that (i) the Indenture and the Officers’ Certificate should be corrected and
supplemented to provide for the adjustment of the Reference Dividend following
the occurrence of a Public Acquirer Change of Control and (ii) such correction
shall not adversely affect the interests of the Holders of Notes in any
material respect;

WHEREAS, the parties wish to
amend the Indenture and the Officers’ Certificate to provide for the adjustment
of the Reference Dividend following the occurrence of a Public Acquirer Change
of Control; and

WHEREAS, this First Supplemental
Indenture has been duly authorized by all necessary corporate action on the
part of the Issuer.

NOW, THEREFORE, the parties
hereto agree as follows for the equal and ratable benefit of the Holders of the
Notes:

ARTICLE
I

Amendments

Section 1.01.                             Amendment
to Article III of Officers’ Certificate. 
As of the effective time of the Merger, the following definition in
Article III of the Officers’ Certificate shall be amended and restated in its
entirety to read as follows:

““Company Common
Shares” means shares of common stock, par value $0.01 per share, of the
Company or, following the occurrence of a Public Acquirer Change of Control and
the election by the Operating Partnership to adjust the Exchange Rate and the
exchange right for a Public Acquirer Change of Control as described in Section
4.10 hereof, shares of Acquirer Common Stock.”

Section 1.02.                             Amendment to Section 4.14(d) of Officers’
Certificate.  As of the effective time of the Merger and
pursuant to Section 902(9) of the Indenture, Section 4.14(d) of the Officers’
Certificate shall be amended by the addition of the following paragraphs at the
end thereof:

“The Reference Dividend
shall also be subject to adjustment following the Operating Partnership’s
election to adjust the exchange right and exchange obligation in 

connection with a Public
Acquirer Change of Control as described in Section 4.10.  Any such adjustment will be effected by
adjusting the Reference Dividend in a manner inversely proportional to the
adjustment to the Exchange Rate made in connection with any such Public
Acquirer Change of Control.

Whenever the Reference
Dividend is adjusted as herein provided, the Company or the Operating
Partnership shall as promptly as reasonably practicable file with the Trustee
and any Exchange Agent other than the Trustee an Officers’ Certificate setting
forth the Reference Dividend after such adjustment and setting forth a brief
statement of the facts requiring such adjustment.  Promptly after delivery of such certificate,
the Company or the Operating Partnership shall prepare a notice of such
adjustment of the Reference Dividend setting forth the adjusted Reference
Dividend and the date on which each adjustment becomes effective and shall mail
such notice of such adjustment of the Reference Dividend to the holders of the
Debentures within 20 Business Days of the Effective Date of such
adjustment.  Failure to deliver such
notice shall not affect the legality or validity of any such adjustment.”

ARTICLE II

Agreement
to be Bound; Public Acquirer Change of Control Election

Section 2.01.                             New Guarantor.   As of the effective time of the
Merger and pursuant to Section 803 of the Indenture, the Surviving Corporation
hereby assumes the obligations of Reckson as the Guarantor under the Guarantee
and the performance of every other covenant of the Indenture on the part of the
Guarantor to be performed or observed. 
The Surviving Corporation agrees to become a party to the Indenture and
as such will have all of the rights and be subject to all of the obligations
and agreements of the Guarantor under the Indenture.  The Surviving Corporation agrees to be bound
by all of the provisions of the Indenture relating to the Guarantor and to
perform all of the obligations and agreements relating to the Guarantor under
the Indenture.

Section 2.02.                             Purchaser Guarantee of Debentures.  As of
the effective time of the Merger and pursuant to Section 4.16 of the Officers’
Certificate, Purchaser hereby fully and unconditionally guarantees all
obligations under the Debentures and the Indenture with respect to the
Debentures.

Section 2.03.                             Public Acquirer Change of Control Election.  As of
the effective time of the Merger and pursuant to Section 4.10 of the Officers’
Certificate, the Issuer hereby irrevocably elects to change the exchange
obligation of the Guarantor with respect to the Debentures into an obligation
to deliver, upon exchange of Debentures, cash, shares of common stock of
Purchaser, or a combination thereof, at the election of Purchaser, in the same
manner as Purchaser would otherwise be required to satisfy its exchange
obligations in accordance with the provisions of Section 4.12 of the Officers’
Certificate, and, in connection with such election, the Exchange Rate in effect
immediately prior to the effective time of such Public Acquirer Change of
Control shall be adjusted in accordance with the provisions of Section 4.10 of
the Officers’ Certificate.

ARTICLE
III

Miscellaneous

Section
3.01.                             Interpretation.  Upon execution and delivery of
this First Supplemental Indenture and as of the effective time of the Merger,
the Indenture shall be modified and amended in accordance with this First
Supplemental Indenture, and all the terms and conditions of both shall be read
together as 

though
they constitute one instrument, except that, in case of conflict, the
provisions of this First Supplemental Indenture shall control. The Indenture,
as modified and amended by this First Supplemental Indenture, is hereby
ratified and confirmed in all respects and shall bind every Holder of
Notes.  In case of conflict between the
terms and conditions contained in the Notes and those contained in the
Indenture, as modified and amended by this First Supplemental Indenture, the
provisions of the Indenture, as modified and amended by this First Supplemental
Indenture, shall control.

Section
3.02.                             Conflict with Trust Indenture Act.  If any
provision of this First Supplemental Indenture limits, qualifies or conflicts
with any provision of the TIA that is required under the TIA to be part of and
govern any provision of this First Supplemental Indenture, the provision of the
TIA shall control.  If any provision of
this First Supplemental Indenture modifies or excludes any provision of the TIA
that may be so modified or excluded, the provision of the TIA shall be deemed
to apply to the Indenture as so modified or to be excluded by this First
Supplemental Indenture, as the case may be.

Section
3.03.                             Severability.  In case any provision in this
First Supplemental Indenture shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

Section
3.04.                             Defined Terms.  All capitalized terms not
otherwise defined herein shall have the meanings ascribed to them in the
Indenture or, if not defined therein, in the Officers’ Certificate.

Section
3.05.                             Headings.  The Article and
Section headings of this First Supplemental Indenture have been inserted
for convenience of reference only, are not to be considered a part of this
First Supplemental Indenture and shall in no way modify or restrict any of the
terms or provisions hereof.

Section
3.06.                             Benefits of Supplemental Indenture, etc.  Nothing
in this First Supplemental Indenture or the Notes, express or implied, shall
give to any Person, other than the parties hereto and thereto and their
successors hereunder and thereunder and the Holders of the Notes, any benefit
of any legal or equitable right, remedy or claim under the Indenture, this
First Supplemental Indenture or the Notes.

Section
3.07.                             Successors.  All agreements of the Issuer,
the Surviving Corporation and Purchaser in this First Supplemental Indenture
shall bind their successors.  All agreements
of the Trustee in this First Supplemental Indenture shall bind its successors.

Section
3.08.                             Trustee Not Responsible for Recitals.  The
recitals contained herein shall be taken as the statements of the Issuer and
the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to
the validity or sufficiency of this First Supplemental Indenture.

Section
3.09.                             Certain Duties and Responsibilities of the
Trustee.  In entering into this First Supplemental
Indenture, the Trustee shall be entitled to the benefit of every provision of
the Indenture relating to the conduct or affecting the liability or affording
protection to the Trustee, whether or not elsewhere herein so provided.

Section
3.10.                             Governing Law.  THIS FIRST
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

Section
3.11.                             Counterparts.  The parties may sign any number
of copies of this First Supplemental Indenture. 
Each signed copy shall be an original, but all of them together
represent the 

same
agreement.  Facsimile transmission of any
signature and/or retransmission of any signature will be deemed the same as
delivery of an original.

Section 3.12.                             Effectiveness of Amendments.  The
amendments to the Indenture set forth in this First Supplemental Indenture
shall become effective as of the effective time of the Merger.

[Remainder of page intentionally left blank]

IN
WITNESS WHEREOF, each party hereto has caused this First Supplemental Indenture
to be signed by its officer thereunto duly authorized as of the date first
written above.

	
   

  	
  RECKSON OPERATING PARTNERSHIP, L.P., as 

  Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Reckson Associates Realty Corp., its Managing 

  General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  Levine

  	
   

  
	
   

  	
   

  	
  Name: Andrew Levine

  
	
   

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RECKSON ASSOCIATES REALTY CORP., as

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  Levine

  	
   

  
	
   

  	
   

  	
  Name: Andrew Levine

  
	
   

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Julie Salovitch-Miller

  	
   

  
	
   

  	
   

  	
  Name:Julie Salovitch-Miller

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SL GREEN REALTY CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew Levine

  	
   

  
	
   

  	
   

  	
  Name: Andrew Levine

  
	
   

  	
   

  	
  Title: Executive Vice President

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