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Exhibit 10.38  

 
 

CONTRIBUTION AGREEMENT    

        This
Agreement ("Agreement") is entered into by on the        day of May, 2002 (the "Effective Date") by Venetian Casino Resort, LLC, a Nevada Limited Liability Company,
("Venetian"), and SSP Gaming, LLC, a Nevada Limited Liability Company,("SSPG"), and in consideration of the covenants, representations, and warranties set forth herein and other good and valuable
consideration, Venetian and SSPG hereby agree to the following: 

        1.    Definitions and Interpretations    

        1.1    The following words shall have the following meanings for the purpose of this Agreement: 

	a.
	"Action" shall mean cease and desist letter, lawsuit or other legal notice or demand.

	b.
	"Aggregate Net Joint Entity Revenue" shall mean the aggregate amount of Net Joint Entity Revenue that is accumulated throughout the life
of the Joint Entity.

	c.
	"Appropriate Visitors" shall mean visitors to the Venetian Casino Sites whom are of legal age to gamble in the jurisdiction where they
reside and who do not reside in or place bets or wagers from the Illegal Localities.

	d.
	"Closing" shall mean satisfying all, or obtaining written waivers from SSPG and Venetian of all, of the conditions set forth in
Section 10.1.

	e.
	"Closing Date" shall mean the date on which all of the conditions set forth in Section 10.1 have been satisfied or waived by SSPG
and Venetian.

	f.
	"Design and Implementation Costs" shall mean all reasonable costs associated with getting the Venetian Casino Sites in a condition ready
for immediate use, including, but not limited to, third party software licenses, hardware as set forth in Exhibit G, communications lines, communications equipment, facilities, labor costs and
salaries of Joint Entity employees.

	g.
	"Disclose" shall mean disclose, disseminate, transmit, publish, distribute, make available or otherwise convey or communicate.

	h.
	"Documentation" shall mean all SSP Software manuals, application programming interface references, open architecture documents, and
other documents related to the operation, maintenance, enhancement, and interaction of the SSP Software.

	i.
	"Gross Gaming Revenue" shall mean the gross revenue collected and received solely from gaming by the Joint Entity.

	j.
	"Gross Gaming Hold" shall mean Gross Gaming Revenue the less any payouts for player winnings, comps, and bad debts.

	k.
	"Gross Joint Entity Revenue" shall mean the gross revenue received by the Joint Entity, including, but not limited to, advertising
revenue, all ancillary revenue and all revenue received through the Venetian Casino Sites or other sites operated by the Joint Entity.

	l.
	"Illegal Localities" shall mean the jurisdictions depicted in Exhibit D and any other jurisdiction where either Venetian or SSPG
reasonably believes, and has notified the other party of such a belief, that the acceptance or placing of bets or wagers is illegal or of which the legality is reasonably unclear. 

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	m.
	"Intellectual Property" shall mean state, federal, foreign and registered and common law trademarks, service marks, trade dress,
patents, copyrights, mask works, trade secrets, confidential information, technology, know how, show how, inventions (whether or not patentable), creations (whether or not
copyrightable), and any form of intangible right, title or interest of any form or nature whatsoever, including, without limitation, all applications for registration and/or issuance of them, all
moral rights for the foregoing and all goodwill associated with the foregoing.

	n.
	"Joint Entity" shall have the meaning set forth in Section 2 of this Agreement.

	o.
	"Most Favored Customer" shall mean charging the lowest price for the relevant service or products as that charged to any customer of
SSPG or its subsidiaries.

	p.
	"Net Gaming Hold" shall mean Gross Gaming Hold less any and all applicable taxes.

	q.
	"Net Joint Entity Revenue" shall mean the Gross Joint Entity Revenue less the Operating Costs.

	r.
	"Operating Costs" shall mean the costs of the Joint Entity of operating and supporting the Venetian Casino Sites, such costs to include,
but not be limited to, sales, general and administrative costs, advertising costs, third party intellectual property licenses, fees and royalties, travel & lodging, third party software
licenses, communications costs, salaries, Software enhancements, system upgrades, maintenance costs, utilities, rent, bonuses, insurance, financial institution charges, player payouts, and all other
reasonable business costs.

	s.
	"Parties" shall mean Venetian and SSPG.

	t.
	"Party" shall mean either Venetian or SSPG.

	u.
	"Software" shall mean the SSP Software and third party software recommended by SSPG to work with the SSP Software as set forth in
Exhibit F.

	v.
	"Source Code" shall mean the human readable code that comprises the Software that SSPG, or its subsidiaries, owns or licenses, and is
used to compile or build the SSP Software.

	w.
	"SSP Cap" shall mean two million dollars ($2,000,000).

	x.
	"SSP Facility" shall mean the physical building facility and space owned or leased by SSP in Las Vegas, Nevada.

	y.
	"SSP Hardware" shall mean the hardware owned, licensed and/or developed by SSP that is set forth in Exhibit I and is contemplated
for use or actually used with the Venetian Casino Sites.

	z.
	"SSP Software" shall mean the software in executable form, owned or licensed by SSP, its subsidiaries and affiliates and set forth in
Exhibit B that is for use with the Venetian Casino Sites.

	aa.
	"Unauthorized Users" shall mean any person or entity that does not have the written permission of Venetian to possess, view or
otherwise use the Venetian Lists.

	bb.
	"Venetian Casino Sites" shall mean the online gambling and gaming Internet web sites (including but not limited to those branded with
the Venetian Marks) dedicated to hosting an Internet wagering facility, in English and other languages, for exclusive operation by the Joint Entity.

	cc.
	"Venetian Cap" shall mean one million dollars ($1,000,000). 

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	dd.
	"Venetian Lists" shall mean the trade secret potential international customer lists compiled by Venetian and owned by Venetian or its
parent company or affiliates.

	ee.
	"Venetian Marks" shall mean the trademarks and service marks owned by Venetian or licensed to Venetian as set forth in
Exhibit C.

	ff.
	"Venetian Works" shall mean the copyright protected works owned by the Venetian that are supplied to the Joint Entity for incorporation
in the Venetian Casino Sites. 

        1.2    References to a "Section" shall be deemed references to an enumerated section of this Agreement. 

        1.3    All references to currency in this Agreement shall be in United States dollars unless otherwise
specified. 

        1.4    Section headings are used for convenience only and shall have no interpretative effect or impact
whatsoever. 

        1.5    The word "Exhibit" shall mean an enumerated exhibit all of which shall be deemed attached hereto
and incorporated herein by way of the specific reference or references made in this Agreement. 

        2.    Joint Entity and Formation.    Subject to the conditions precedent in Section 9 of this Agreement: 

        2.1    ENTITY FORMATION.    Prior to Closing, Venetian and SSPG shall
form a new Nevada Limited Liability Company, in accordance with the laws of Nevada and assisted by counsel licensed to practice law in Nevada, to operate the Venetian Casino Sites and Software
(the new entity hereinafter referred to as the "Joint Entity"). 

	a.
	Managers.    The Joint Entity shall have seven (7) company managers (the "Managers").

	b.
	Initial Selection of Managers.    Upon formation of the Joint Entity, Venetian shall select three (3) Managers, SSPG
shall select three (3) Managers, and the resulting six (6) Managers shall select one (1) Manager.

	c.
	Term of Managers.    The Managers of the Joint Entity shall serve terms not to exceed three years (but capable of
re-election). Each year at least two Managers of the Joint Entity shall have their term expire.

	d.
	Selection of Replacement Managers.    If the total Net Joint Entity Revenue for the Joint Entity earned since the formation of
the Joint Entity is less than or equal to four million dollars ($4,000,000), then, for vacancies created by the expiration of the term of a manager, three (3) of the Managers shall remain
selections of Venetian, three (3) of the Managers shall remain selections of SSPG, and one (1) of the Managers shall remain a selection of the other Managers. After the total Net Joint
Entity Revenue for the Joint Entity earned since the formation of the Joint Entity exceeds four million dollars ($4,000,000), then, for vacancies created by the expiration of the term of a Manager,
four (4) of the Managers shall be selections of Venetian, two (2) of the Managers shall be selections of SSPG, and the remaining Manager shall be selected by the other six
(6) Managers. 

        2.2    OWNERSHIP.    The initial share of ownership shall be Venetian
with fifty percent (50%) and SSPG with fifty percent (50%). The share of ownership shall change to Venetian with eighty percent (80%) and SSPG with twenty percent (20%) automatically when the total
Net Joint Entity 

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Revenue for the Joint Entity earned since the formation of the Joint Entity exceeds four million dollars ($4,000,000) as more particularly addressed in Section 5 hereof. 

        2.3    POWER TO BIND.    Venetian and SSPG agree that, as promoters of
the Joint Entity, and the expected sole owners of the Joint Entity, they expressly have the power to bind the Joint Entity to the obligations and duties set forth in this Agreement prior to the
formation of the Joint Entity. 

        2.4    INITIAL TASKS AFTER FORMATION.    The Joint Entity shall, as
soon as possible after formation, perform the following tasks: 

	a.
	Prepare a Business Plan—Prepare a business plan that at a minimum addresses marketing plans, revenue projections, cost
projections, and plans for exploring new revenue streams.

	b.
	Prepare a Regulatory Communications Plan—Prepare a plan for governmental and regulatory efforts and costs.

	c.
	Prepare a Regulatory Compliance Plan and Policies—Prepare a plan for complying with all regulatory agencies and governmental
bodies with jurisdiction over the Joint Entity, Venetian and SSPG.

	d.
	Prepare Budgets—Prepare operating and marketing budgets.

	e.
	Prepare Employee Ownership Share Option Policy.    

	f.
	Establish Bank Accounts.    

        2.5    BUDGET APPROVALS.    All proposed budgets shall require
approval by a majority of the seven managers. 

        2.6    NEVADA GAMING REGULATIONS.    The Parties agree that the Joint
Entity shall at all times comply with Nevada gaming laws and regulations, even if the Joint Entity has no licenses from Nevada or is otherwise not subject to jurisdiction in Nevada. The Parties agree
that this requirement shall be an essential provision in the formation documents of the Joint Entity. 

        2.7    PURPOSE.    The Parties agree that the purpose of the Joint
Entity shall be to offer online gambling and gaming services from a Jurisdiction, as defined in Section 9.4 hereof, where such activity is legal, to people who are of legal age to gamble in
their jurisdictions and for whom placing wagers over the Internet with the Joint Entity is legal. 

        2.8    INDEPENDENT ENTITY.    The Parties agree that the Joint Entity
shall be an independent entity capable of binding itself to other agreements, including entering into agreements to provide additional online gaming sites branded with the marks of other entities. 

        2.9    ADDITIONAL CAPITAL.    If the capital contributions required by
the Joint Entity from the Parties exceed three million dollars ($3,000,000), then the Parties may either (i) mutually terminate the Joint Entity pursuant to Section 13.3 of this
Agreement or (ii) provide such additional capital as agreed to by the Parties (the "Additional Capital Sum"), with thirty three and three tenths percent (33.3%) of the Additional Capital Sum
from Venetian and sixty six and seven tenths percent (66.7%) of the Additional Capital Sum from SSPG, or in a appropriate ratio in accordance with the distribution interests to the Parties, or
(iii) raise funds through such other means or take such other actions as the Joint Entity may determine. 

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        3.    Venetian Contributions.    For its portion of ownership interest in the Joint Entity, immediately after Closing,
Venetian, at no additional cost to the Joint Entity or SSPG, shall contribute: 

        3.1    MARK LICENSE.    A nonexclusive (except as otherwise provided
in Section 3.1.c.), nontransferable, limited license to use the Venetian Marks, in text and design format, on the Venetian Casino Sites subject to the following conditions: 

	a.
	TERM.    The term of the mark license shall be from the date of Closing until the Joint Entity is dissolved or the Mark
license is terminated.

	b.
	LIMITATION OF USE.    The license from Venetian to the Joint Entity to use the Venetian Marks shall be limited to the use of
Venetian Marks set forth on Exhibit C for use by the Joint Entity on the Venetian Casino Sites.

	c.
	LIMITATION OF EXCLUSIVITY.    During the term of the license, Venetian shall not license the Venetian Marks for use on any
other internet gambling sites that accept live wagers and which compete with the Venetian Casino Sites.

	d.
	OWNERSHIP OF MARKS.    Joint Entity will acknowledge Venetian's ownership of the Venetian Marks. The Joint Entity will do
nothing during or after the term hereof inconsistent with such ownership. All use of the Venetian Marks by the Joint Entity shall inure to the benefit of and be on behalf of Venetian. The Joint Entity
shall assist Venetian, at Venetian's sole expense, in any efforts to record Venetian's rights in, to and arising out of the use of the Venetian Marks by the Joint Entity. Nothing in this Agreement
shall give the Joint Entity any right, title or interest in the Venetian Marks other than the right to use the Venetian Marks in accordance with the license and the Joint Entity's Operating Agreement,
and the Joint Entity shall not attack the title of Venetian to the Venetian Marks or attack the validity of the Venetian Marks or the validity of the license concerning the Venetian Marks. The Joint
Entity shall not use any permutations of the Venetian Marks or any symbols, text or designs that are confusingly similar to any of the Venetian Marks. Any new words, devices, designs, slogans or
symbols created by or on behalf of the Joint Entity for use on the Venetian Casino Sites that indicate an affiliation with Venetian or that indicate Venetian as the source of any product or service
will be the property of Venetian.

	e.
	QUALITY STANDARDS.    The nature and quality of all services rendered by the Joint Entity in conjunction with the Venetian
Marks and related uses of the Venetian Marks by the Joint Entity shall conform to the reasonable standards set by and be under the control of Venetian, such standards to be provided in writing from
time to time by Venetian.

	f.
	QUALITY MAINTENANCE.    The Joint Entity shall cooperate with Venetian in facilitating Venetian's control of the nature and
quality of the use of the Venetian Marks, shall permit reasonable inspection of the Venetian Casino Sites, and shall assist Venetian in obtaining specimens of all uses of the Venetian Marks upon
request.

	g.
	ATTRIBUTION.    The Joint Entity shall clearly indicate on the Venetian Casino Sites and in the Venetian Casino Sites' user
terms and conditions, in any format reasonably requested by Venetian, consistent with appropriate regulatory requirements, that the Venetian Marks are trademarks and service marks of Venetian. 

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	h.
	TERMINATION OF LICENSE TO USE MARKS.    Venetian shall have the right to terminate the license of the Venetian Marks to the
Joint Entity (i) upon not less than thirty (30) days prior written notice the Joint Entity in the event of any affirmative act of insolvency by the Joint Entity (as agreed to
in good faith by the Managers of the Joint Entity) that is not dismissed within ninety (90) days, or (ii) or upon not less than thirty (30) days prior written notice (such notice
shall detail the alleged breach and the conditions for cure) that the Joint Entity has breached the license by materially exceeding the scope of the Venetian Marks license or upon a finding in
Venetian's reasonable opinion that use of the Venetian Works by the Joint Entity is materially contrary to the quality, nature and image that Venetian desires to portray with the Venetian Marks, and
such breach is not cured within thirty (30) days.

	i.
	EFFECT OF TERMINATION.    Termination of the license from Venetian to the Joint Entity to use the Venetian Marks shall be
deemed a termination of this Agreement pursuant to Section 13.1 of this Agreement. Upon termination of the license from Venetian to the Joint Entity to use the Venetian Marks, the Joint Entity
shall (i) immediately discontinue all use of the Venetian Marks, name, and any term, graphic or symbol that may be confusingly similar thereto, (ii) delete same from the Venetian Casino
Sites and from all media in the possession or control of the Joint Entity and (iii) execute whatever documents Venetian deems necessary to effect the intent of this Section. 

        3.2    WORKS LICENSE.    A nonexclusive (except as otherwise provided
in Section 3.2.c.), non-transferable license to use the Venetian Works on the Venetian Casino Sites subject to the following conditions: 

	a.
	TERM.    The term of the license shall be from the date of Closing until the Joint Entity is dissolved or the Works license is
terminated.

	b.
	LIMITATION OF USE.    The license from Venetian to the Joint Entity to use, modify, reproduce and distribute the Venetian
Works is limited to use by the Joint Entity of the Venetian Works on the Venetian Casino Sites.

	c.
	LIMITATION OF EXCLUSIVITY.    During the term of this Agreement, Venetian shall not license the Venetian Works for use on any
other internet gambling sites that accept live wagers and which compete with the Venetian Casino Sites.

	d.
	OWNERSHIP OF WORKS.    The Joint Entity will acknowledge Venetian's exclusive ownership in or control of the Venetian Works.
Joint Entity will do nothing inconsistent with such ownership will reasonably assist Venetian, at Venetian's cost, in any and all efforts to record Venetian's rights in, to and arising out of the
Venetian Works. Nothing in this Agreement shall give the Joint Entity any right, title or interest in the Venetian Works other than the right to use the Venetian Works in accordance with the license
and the Joint Entity's Operating Agreement. The Joint Entity will not attack the title of Venetian to the Venetian Works or attack the validity of the license concerning the Venetian Works.

	e.
	SUBLICENSE.    The Joint Entity may sublicense the use, modification and reproduction of the Venetian Works to SSPG for the
sole purpose of incorporating the Venetian Works into the visual
presentation of the Software. The Venetian and SSPG hereby acknowledge and agree that any derivative works of the Venetian Works shall be the sole property of the Joint Entity, to the extent that such
derivative works do not incorporate the Venetian Marks. 

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	f.
	ATTRIBUTION.    The Joint Entity shall clearly indicate, on the Venetian Casino Sites and in the Venetian Casino Sites' user
terms and conditions, that Venetian owns the copyright in and to the Venetian Works. The Joint Entity shall include the following phrase "© 2002 Venetian Casino Resort, LLC, All Rights
Reserved", or such other date or ownership attribution as Venetian may direct.

	g.
	TERMINATION OF LICENSE TO USE WORKS.    Venetian shall have the right to terminate the license of the Venetian Works to the
Joint Entity (i) upon not less than thirty (30) days prior written notice to the Joint Entity in the event of any affirmative act of insolvency by the Joint Entity (as agreed to in good
faith by the Managers of the Joint Entity) that is not dismissed within ninety (90) days, or (ii) or upon not less than thirty (30) days prior written notice (such notice shall
detail the alleged breach and the conditions for cure) that the Joint Entity has breached the license by materially exceeding the scope of the Venetian Works license or upon a finding in Venetian's
reasonable opinion that use of the Venetian Works by the Joint Entity is materially contrary to the quality, nature and image that Venetian desires to portray with the Venetian Works, and such breach
is not cured within thirty (30) days.

	h.
	EFFECT OF TERMINATION.    Termination of the license from Venetian to the Joint Entity to use the Venetian Works shall be
deemed a termination of this Agreement pursuant to Section 13.1 of this Agreement. Upon termination of the license from Venetian to the Joint Entity to use the Venetian Works, or upon the
termination of this Agreement, The Joint Entity shall (i) immediately discontinue all use of the Venetian Works, (ii) delete same from the Venetian Casino Sites and from all media in the
possession or control of the Joint Entity and (iii) execute whatever documents Venetian deems necessary to effect the intent of this Section.

	i.
	LIMITED INDEMNIFICATION.    Venetian shall defend SSPG and the Joint Entity and hold SSPG and the Joint Entity harmless, at
the expense of Venetian, against any Action brought against SSPG and the Joint Entity to the extent that it is based on a claim that the Venetian Works, or any part of them, infringe or conflict with
the Intellectual Property right, title, interest or license of a third person. Should the Venetian Works become the subject of a claim of infringement of Intellectual Property, Venetian shall have the
option, to exercise in its sole discretion, to either (a) substitute the Intellectual Property at issue, provided that such substitution does not jeopardize the maintenance or acquisition of
any gaming related licenses in any jurisdiction of any Venetian related entity and the Joint Entity, or materially alter the legality, usability or performance of the Venetian Casino Sites,
(b) provide an alternative to using the Intellectual Property at issue, (c) procure for the Joint Entity the right to continue using the Intellectual Property at issue; or (d) if
the foregoing are not reasonably available, terminate the license. 

        3.3    Venetian Lists.    A nonexclusive, non-transferable
license to use the Venetian Lists, provided by Venetian to the Joint Entity for the Venetian Casino Sites subject to the following conditions: 

	a.
	Exclusive Use.    The Joint Entity shall use the Venetian Lists solely in connection with the operation of the Venetian Casino
Sites.

	b.
	TERM.    The term of the license shall be from the date of Closing until the Joint Entity is dissolved. 

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	c.
	NON DISCLOSURE & SAFE KEEPING.

	1)
	Acknowledgement.    The Joint Entity will acknowledge and agree that the Venetian Lists are
trade secrets of Venetian or its parent company or affiliates, and that the Venetian Lists are trade secrets as defined by the Uniform Trade Secrets Act as enacted in Nevada pursuant to Nevada Revised
Statutes Title 52 Chapter 600A.030.5.

	2)
	NON DISCLOSURE.    The Joint Entity shall not disclose the Venetian Lists to any person or
entity without the prior written permission of Venetian, which may be withheld in the sole and absolute discretion of Venetian.

	3)
	MATERIALS.    The Joint Entity and its employees, officers, members, representatives and other
agents shall not copy the Venetian Lists in any form without the prior written permission of Venetian which may be withheld in the sole and absolute discretion of Venetian.

	4)
	SAFE-KEEPING.    The Joint Entity shall keep the Venetian Lists in a locked,
limited access environment, and shall not have any portion of the Venetian Lists in electronic form that is potentially accessible by Unauthorized Users.

	5)
	RETURN OR DESTRUCTION.    At any time during the term of this Agreement, or upon the expiration
or termination of this Agreement, the Joint Entity shall return or destroy, at the sole discretion of Venetian, all media containing the Venetian Lists and provide Venetian with a written affidavit
confirming the return or destruction of such media.

	6)
	OBLIGATIONS OF THE JOINT ENTITY'S REPRESENTATIVES.    The Joint Entity shall enter into a
written confidentiality agreement that perpetually protects the Venetian Lists with any employees, officers, representatives, and agents of the Joint Entity that have access to the Venetian Lists,
with the form and substance of such a confidentiality agreement to be subject to Venetian's reasonable approval.

	7)
	PERPETUAL OBLIGATIONS.    The obligation of the Joint Entity, its employees, members, officers,
representatives and agents to maintain the confidentiality of the Venetian Lists shall survive the termination of this Agreement in perpetuity.

	8)
	TERMINATION OF LICENSE TO USE LISTS.    Venetian shall have the right to terminate the license
of the Venetian Lists to the Joint Entity (i) upon not less than thirty (30) days prior written notice to the Joint Entity in the event of any affirmative act of insolvency by the Joint
Entity (as agreed to in good faith by the Managers of the Joint Entity) that is not dismissed within ninety (90) days, or (ii) immediately upon a good faith finding in Venetian's
reasonable opinion that Joint Entity has breached any provision of Section 3.3.c of this Agreement. 

	d.
	EFFECT OF TERMINATION.    Termination of the license from Venetian to the Joint Entity to use the Venetian Lists shall be
deemed a termination of this Agreement and of the Joint Entity pursuant to Section 13.1 of this Agreement. Upon termination of the license from Venetian to the Joint Entity to use the Venetian
Lists, The Joint Entity shall (i) immediately discontinue all use of the Venetian Lists, (ii) return or destroy all media that contains the Venetian Lists, or any portion thereof, the
decision to destroy or return shall be in the sole and absolute discretion 

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of
Venetian, and (iii) shall promptly execute whatever documents Venetian deems necessary to effect the intent of this Section. 

        3.4    CROSS MARKETING.    Commercially reasonable efforts to promote
the Venetian Casino Sites to Appropriate Visitors. 

        3.5    CAPITAL CONTRIBUTION.    Capital to the Joint Entity not to
exceed the Venetian Cap, to be used to cover thirty three and three tenths percent (33.3%) of the actual Design and Implementation Costs and initial Operating Costs for the Venetian Casino Sites
pursuant to Sections 5.4 and 5.5 of this Agreement, provided that (i) the Joint Entity provides Venetian with a written detailed plan for implementation along with the Design and Implementation
Costs estimate as set forth in Section 9.7 of this Agreement, (ii) Venetian, in writing, approves of the detailed plan for implementation and the estimate Design and Implementation
Costs, (iii) the Joint Entity provides Venetian with an actual accounting of the Design and Implementation Costs, and (iv) the actual Design and Implementation Costs do not exceed the
estimated Design and Implementation Costs by more than fifteen percent (15%) of the estimated Design and Implementation Costs. 

        3.6    DOMAIN NAME.    A license to use a domain name or set of domain
names for the Venetian Casino Sites. All domain names shall be owned by Venetian and remain the property of Venetian. 

        4.    Contributions of SSPG.    For its portion of ownership interest in the Joint Entity, immediately after Closing,
SSPG, at no additional cost to the Joint Entity or Venetian, shall contribute: 

        4.1    Fees For Online Casino Software    

	a.
	GET SOFTWARE LICENSE FEES.    Payments made by the Joint Entity for the nonexclusive, limited license to use, publicly
display, modify, reproduce, and copy the online casino software licensed by GET Entertainment Technology (GET) (the "Casino Software") for use by the Joint Entity for the Venetian Casino Sites shall
be deducted from SSPG's proportionate share of the Net Joint Entity Revenue. Exhibit K provides an example, based on estimated revenue and cost projections, illustrating the flow of license
payments for the Casino Software license. Such fees shall be paid to GET directly by the Joint Entity in exchange for a license that shall provide, but not be limited to, (i) modifications to
the Casino Software by or for the Joint Entity shall be owned by the Joint Entity, (ii) all Casino Software source code, and all source code modifications, shall be placed in Escrow with an
independent third party software escrow agent, and (iii) GET will indemnify the Joint Entity for any intellectual property related claims made by third parties, where such claims are related to
the Casino Software or its intended use.

	b.
	EXCLUSIVITY LIMITATION.    During the term of the Joint Entity SSPG or its parent or affiliate companies shall not itself
operate, nor shall it enter into any other joint venture to operate an online gambling sites. The foregoing notwithstanding, nothing in this Agreement shall preclude or otherwise prevent SSPG or its
parent or affiliate companies from providing technologies, services, or licenses to other entities. 

        4.2    SSP SOFTWARE SUBLICENSE.    A nonexclusive, limited sublicense
to use, publicly display, modify, reproduce, and copy the SSP Software exclusively for the Venetian Casino Sites subject to the following conditions: 

	a.
	TERM.    The term of the sublicense shall be from the date of Closing until the Joint Entity is dissolved or the sublicense is
terminated.

	b.
	LIMITATION ON LICENSE.    The license in the SSP Software shall only be applicable to uses, displays, modifications,
reproductions and copies directly related 

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to the development, implementation, operation and enhancement of the Venetian Casino Sites. 

	c.
	OWNERSHIP OF INITIAL WORKS.    The Joint Entity will acknowledge SSPG's license to, ownership in, or control of the portions
of the SSP Software licensed by SSPG as initially delivered to the Joint Entity through SSPG or any SSPG wholly owned subsidiary (the "Initial SSP Software"). The Joint Entity will do nothing
inconsistent with such ownership or control and shall reasonably assist SSPG at, SSPG's cost, in any and all efforts to record SSPG's rights in, to and arising out of the Initial SSP Software. Nothing
in this Agreement shall give the Joint Entity any right or title in the Initial SSP Software other than the right to use, publicly display, modify, reproduce and copy the Initial SSP Software in
accordance with the sublicense and the Joint Entity's Operating Agreement and the Joint Entity will not attack the title of SSPG or its licensor to the Initial SSP Software as initially delivered or
attack the validity of the SSP Software or any license concerning the SSP Software.

	d.
	OWNERSHIP OF DERIVATIVE WORKS.    To the extent that modifications, enhancements and changes are made to the Initial SSP
Software by the Joint Entity, such modifications, enhancements and changes shall be considered derivative works owned by the Joint Entity.

	e.
	TRADEMARKS.    To the extent that any SSPG trademarks, or trademarks of a SSPG wholly owned subsidiary or parent corporation,
exist in the Initial SSP Software, such trademarks shall remain in the SSP Software. If SSPG determines that it no longer wishes the Joint Entity to use any such SSPG trademark on the Venetian Casino
Sites, the Joint Entity shall, to the best of its ability, remove such SSPG trademarks as requested by SSPG. 

10

  

	f.
	ATTRIBUTION.    The Joint Entity shall clearly indicate on the Venetian Casino Sites and in the Venetian Casino Sites' user
terms and conditions, that SSPG or its subsidiary owns the copyright in and to the SSPG Software. Joint Entity shall include the following phrase "© 2002 SSP Solutions, Inc., All
Rights Reserved", or such other date or ownership attribution as SSPG may direct.

	g.
	LIMITED INDEMNIFICATION.    SSPG shall defend Venetian and hold Venetian and the Joint Entity harmless, at the expense of
SSPG, against any Action brought against Venetian or the Joint Entity to the extent that it is based on a claim that the SSPG Software or SSPG Hardware, or any part of it, infringes or conflicts with
the Intellectual Property right, title, interest or license of a third person. Should the SSPG Software or SSPG Hardware become the subject of a claim of infringement of Intellectual Property, SSPG
shall have the option, to exercise in its sole discretion, to either (i) substitute the Intellectual Property at issue, provided that such substitution does not jeopardize the maintenance or
acquisition of any gaming related licenses in any jurisdiction of any Venetian related entity or materially alter the legality, usability or performance of the Venetian Casino Sites,
(ii) provide an alternative to using the Intellectual Property at issue, provided that such alternative does not jeopardize the maintenance or acquisition of any gaming related licenses in any
jurisdiction of any Venetian related entity or materially alter the legality, usability or performance of the Venetian Casino Sites, (iii) procure for the Joint Entity the right to continue
using the Intellectual Property at issue; or (iv) if the foregoing are not reasonably available, terminate the sublicense.

	h.
	TERMINATION OF SUBLICENSE TO USE SSPG SOFTWARE.    SSPG shall have the right to terminate the SSPG Software sublicense to the
Joint Entity (i) upon not less than thirty (30) days prior written notice to the Joint Entity in the event of any affirmative act of insolvency by the Joint Entity (as agreed to in good
faith by the Managers of the Joint Entity) that is not dismissed within ninety (90) days, (ii) or upon not less than thirty (30) days prior written notice (such notice shall
detail the alleged breach and the conditions for cure) that the Joint Entity has breached the sublicense by exceeded the scope of the SSPG Software sublicense and such breach is not cured within
thirty (30) days.

	i.
	EFFECT OF TERMINATION.    Termination of the sublicense from SSPG to the Joint Entity to use the SSPG Software shall be deemed
a termination of this Agreement pursuant to Section 13.2 of this Agreement. Upon termination of the sublicense from SSPG to the Joint Entity to use the SSPG Software, or upon the termination of
this Agreement, the Joint Entity shall within one hundred eighty (180) days of written notice from SSPG (i) immediately discontinue all use of the SSPG Software, (ii) delete same
from the Venetian Casino Sites and from all media in the possession or control of Venetian or the Joint Entity to the extent permitted by all applicable laws, orders and regulations, and
(iii) execute whatever documents SSPG deems necessary to effect the intent of this Section of the Agreement. During such one hundred eighty (180) day period, all Joint Entity Net Revenue
payable to
SSPG under this Agreement shall continue to be paid to SSPG until all use of the SSPG Software has been discontinued. Notwithstanding any other provision of this Agreement, all data generated by the
Joint Entity, whether or not through, by or in relation to the SSPG Software, shall be retained by the Parties for not less than three years after the termination of the Joint Entity or such other
time period that is specified by the Jurisdiction. 

11

 

        4.3    SSP Hardware.    Notwithstanding any language to the contrary
in Section 4 of this Agreement, SSPG will provide, at Most Favored Customer pricing, all required SSP Hardware for secured transaction and information processing for use with the Venetian
Casino Sites. 

        4.4    SSPG Facility.    Notwithstanding any language to the contrary
in Section 4 of this Agreement, the Joint Entity may enter into a paid sublease (at fair market value) with SSPG to use the SSPG Facilities or shall obtain other facilities for housing all of
the Joint Entity's operations until the Parties and the Joint Entity agree to move such operations to a different physical location or locations. 

        4.5    TRAINING SERVICES.    

	a.
	TRAINING.    Upon the reasonable request of the Joint Entity, SSPG shall provide, reasonable instruction to personnel of the
Joint Entity in the operation, management and administration of the Software. SSPG and the Joint Entity shall, prior to accepting any wager through the Venetian Casino Sites, create a training support
services plan in accordance with the requirements of the Jurisdiction, such plan shall be attached and incorporated herein as Exhibit H of this Agreement (the "Training and Support
Requirements"). The training shall include, without limitation, the training support services described in the Training and Support Requirements. The sessions at which such instruction is to be
provided shall be scheduled at times mutually agreed to by SSPG and the Joint Entity and shall be conducted at a location reasonably selected by the Joint Entity. Sufficient sessions shall be
scheduled to permit the size of each session to be limited to ten people. The Joint Entity shall provide a suitable location for training and SSPG shall provide a complement of equipment that SSPG
deems suitable for training the Joint Entity's personnel. SSPG shall furnish the Joint Entity at least one copy of a reasonably comprehensive operators manual with respect to the Software. The Joint
Entity may make additional copies of the manuals.

	b.
	ADDITIONAL TRAINING MATERIALS.    In addition to the foregoing provisions of this Section 4.5, SSPG shall provide at no
cost the following training materials as appropriate: detailed feature explanations in the form of a training text and not a software specification; a thorough description of feature interactions; and
organized, customized quick reference guides. 

        4.6    MAINTENANCE SERVICES    

	a.
	TELEPHONE AND ELECTRONIC SUPPORT:    SSPG shall maintain or otherwise provide for a 24-hour, seven days per week
telephone support service to accept and respond to second line support calls from the Joint Entity as follows:

	1)
	SSPG shall respond by electronic means to any and all telephone calls from the Joint Entity relating to
required maintenance, problem solving or explanation concerning any aspect of the Software. SSPG shall use its best efforts to respond to a service call by telephone within two hours of the Joint
Entity's placement of the call and have a customer support representative assisting and accessing the Software by electronic methods within two hours of the Joint Entity's telephone call to SSPG
notifying SSPG of a problem with, or issue concerning, the Software.

	2)
	Any calls received during the hours of 6:00 p.m. to 8:00 a.m. Greenwich Mean Time, and all
hours on Saturday and Sunday, and federal holidays which relate to the Software which are not deemed, by mutual agreement, to be assistance necessary to make the Software function and perform as
described in the Software documentation is considered billable support. The Joint Entity agrees 

12

 

to
pay SSPG a fee based upon the actual service time incurred in connection with any billable calls at SSPG's Most Favored Customer hourly rates. All services calls falling within the terms of this
Section 4.6.a.2, will be responded to by the next business day. 

	b.
	SOFTWARE UPDATES.    The Joint Entity shall be entitled to receive updates to the Software at no additional charge if such
updates are offered to any other customer of SSPG or a SSPG subsidiary at no charge, or on a Most Favored Customer cost basis.

	c.
	SOFTWARE PROBLEM REPORTING.    The Joint Entity shall submit to SSPG reports concerning potential errors in the Software. The
Joint Entity shall provide SSPG all data that it has reasonably available to it concerning potential errors that SSPG reasonably may request in order to reproduce operating conditions similar to those
present when the potential error was discovered.

	d.
	ERROR FIXES.    SSPG shall investigate each potential error reported by the Joint Entity and determine whether in SSPG's
reasonable judgment the reported problem is an error and whether the error is in the Software. If SSPG determines in good faith that there is an error in the Software documentation, SSPG shall correct
the documentation and supply the Joint Entity a corrected copy or pages of it. If SSPG determines that there is an error in the Software, SSPG will use its best efforts to provide as soon as possible
an avoidance procedure for and/or a correction of the error through telephone support and/or remote on-line access.

	e.
	INSTALLATION OF ERROR FIXES.    The Joint Entity shall have a reasonable opportunity to test and determine whether to install
all error fixes supplied by SSPG. Accept as may otherwise by mutually agreed by the Parties, failure to install any error fix will terminate SSPG's obligation to provide maintenance services as
provided in this Section 4.6.

	f.
	INSTALLATION OF SSPG UPDATES.    The Joint Entity shall have a reasonable opportunity to test and determine whether to install
within any Software updates supplied by SSPG. Accept as may otherwise by mutually agreed by the Parties, failure to install any SSPG Updates will terminate SSPG's obligation to provide maintenance
services as provided in this Section 4.6.

	g.
	ELECTRONIC ACCESS.    SSPG shall provide the Joint Entity with secure electronic access to the Software for SSP's maintenance
services. SSPG shall maintain the secrecy and security of such electronic maintenance access.

	h.
	SECURE AUDIT ACCESS.    SSPG shall provide Venetian and official governmental gaming regulators with secure electronic access
to the Venetian Casino Sites data to enable Venetian and official governmental gaming regulators to, at any time, audit all aspects of the Venetian Casino Sites and the transactions performed by the
Venetian Casino Sites.

	i.
	JOINT ENTITY MODIFICATION.    SSPG shall have no obligation to service the Software if any changes to the source code are made
by any employee or agent of the Joint Entity, or if SSPG-provided error fixes and updates are not installed (except as may be otherwise agreed by the Parties)..

	j.
	ON SITES MAINTENANCE.    If SSPG determines in good faith that a problem or error with the Software requires SSPG to visit the
location of the servers to correct the problem, then the Joint Entity shall provide SSPG with physical access to the servers in a manner that is consistent with the laws and regulations of the
jurisdiction 

13

 

in
which the servers sit, and consistent with the laws and regulations of the jurisdiction in which the Venetian Casino Sites has its gaming licenses. 

	k.
	REVIEW OF ALL CHANGES.    Notwithstanding any other provision of this Agreement, prior to the implementation of any proposed
changes to the Software or Venetian Casino Sites, such proposed changes must be reviewed by Venetian and SSPG and such proposed changes shall not be implemented without the written consent of Venetian
and SSPG.

	l.
	LOG OF ALL CHANGES.    SSPG shall create and deliver to Joint Entity a monthly log of all changes to the Software implemented
by SSPG or its subsidiaries or affiliates. 

        4.7    Regulatory Communications Support.    Upon the reasonable
request of Venetian or the Joint Entity, at reasonable times specified by Venetian or the Joint Entity, SSPG shall prepare and deliver presentations regarding the operations and security of the
Venetian Casino Sites to regulators and other government officials. 

        4.8    SOURCE CODE AND HARDWARE SCHEMATICS ESCROW    

	a.
	Within thirty (30) days of the date of Closing, SSPG shall enter into an Escrow Agreement, in a form as set forth in
Exhibit J, and shall deposit with Data Securities International a copy of the available buildable Source Code and schematics for SSPG Hardware ("Deposit Materials"). The Joint Entity shall be
responsible for paying all maintenance costs to the Escrow Agent during the term of this Agreement. SSPG shall keep the Deposit Materials in escrow current by providing to Data Securities
International, a new deposit of the available Source Code for all updates while this Agreement is in effect.

	b.
	The Joint Entity shall have access to the Deposit Materials only upon the occurrence of any of the following events, subject to the
provisions set forth in the Escrow Agreement:

	1)
	The dissolution of SSPG.

	2)
	The cessation of support for the SSPG Hardware, SSPG Software.

	3)
	A material breach of the Joint Entity's Operating Agreement or any license or sublicense from SSPG to the
Joint Entity by SSPG not cured within ninety (90) days from when written notice is sent to SSPG.

	4)
	Termination of the Joint Entity's Operating Agreement or any license or sublicense from SSPG to the Joint
Entity due to the insolvency of SSPG. 

	c.
	Upon a release of the Deposit Materials, as set forth in Section 4.5 of the Escrow Agreement, the Joint Entity shall, solely in
connection with operating, maintaining and enhancing the Venetian Casino
Sites, have the right to use, make, build, modify, enhance, reproduce, compile, repair, and publicly display the SSPG Hardware, and SSPG Software, and shall have the right to engage third parties to
modify, make, build, enhance, reproduce, repair, compile, and publicly display the SSPG Hardware and SSPG Software. 

        4.9    THIRD PARTY SOFTWARE.    Except for the Casino Software and SSP
Software, SSPG shall provide all proposed third party software licenses for review and approval by the Joint Entity and Venetian. SSPG shall, upon the written consent of Venetian and Joint Entity,
procure a license for all third party software on behalf of the Joint Entity that is reasonably required for the operation of the Venetian Casino Sites; the costs of procurement shall be part of the
Design and 

14

 

Implementation Costs. SSPG shall provide all reasonably required assistance in installing, configuring and testing the third party software for interoperation with the SSPG Software. 

        4.10    CAPITAL CONTRIBUTION.    Capital to the Joint Entity not to
exceed the SSPG Cap, to be used to cover sixty six and seven tenths percent (66.7%) of the actual Design and Implementation Costs and initial Operating Costs for the Venetian Casino Sites pursuant to
Sections 5.4 and 5.5 of this Agreement, provided that (i) the Joint Entity provides SSPG with a written detailed plan for implementation along with the Design and Implementation Costs estimate
as set forth in Section 9.7 of this Agreement, (ii) SSPG, in writing, approves of the detailed plan for implementation and the estimate Design and Implementation Costs, (iii) the
Joint Entity provides SSPG with an actual accounting of the Design and Implementation Costs, and (iv) the actual Design and Implementation Costs do not exceed the estimated Design and
Implementation Costs by more than fifteen percent (15%) of the estimated Design and Implementation Costs. 

        5.    Post Closing Financial Terms.    The following financial terms shall be effective upon Closing: 

        5.1    Until Net Joint Entity Revenue exceeds the Design and Implementation Costs, Net Joint Entity
Revenue shall be shared with sixty six and seven tenths percent (66.7%) of Net Joint Entity Revenue to SSPG and thirty three and three tenths percent (33.3%) to Venetian. 

        5.2    Beginning immediately when Joint Entity Revenue exceeds the Design and Implementation Costs, and
for the life of the Joint Entity, Venetian and SSPG shall share the following percentages of Net Joint Entity Revenue, after aggregate Net Joint Entity Revenue exceeds the Design and Implementation
Costs:: 

	a.
	

	On Aggregate Net Joint Entity Revenue of
 
	 	Percentage to

Venetian
	 	Percentage to

SSPG
	 
	Less than two million dollars and more than Design and Implementation Costs	 	50	%	50	%
	

Less than four million dollars and more than two million dollars	
 	

60	
%	

40	
%
	

In excess of four million dollars	
 	

80	
%	

20	
%

	b.
	At all times during the existence of the Joint Entity, the Joint Entity shall keep and maintain, in accordance with generally accepted
accounting principles, complete and accurate financial books and records in respect of its operation of the Venetian Casino Sites, including all records necessary to compute the amounts due Venetian
and SSPG under this Agreement or the Joint Entity's Operating Agreement. Venetian and SSPG each shall have the right, upon three (3) business days notice and no more than once per twelve
(12) month period, to appoint an independent third party certified business accountant to examine the Joint Entity's books and records related to the Venetian Casino Sites in order to verify
the Joint Entity's compliance with the terms of this Agreement or the Joint Entity's Operating Agreement. Any such audit shall be at the expense of the Party requesting the examination.

	c.
	Net Joint Entity Revenue shall be calculated on a cumulative basis with monthly reconciliation by reference to the amount of Net Joint
Entity Revenue at the end of each month. The Joint Entity shall provide to Venetian and SSPG on a monthly basis, by the 10th day of the following month, Venetian's share of Net Joint
Entity Revenue, SSPG's share of Net Joint Entity Revenue and a report with information summarizing the calculation of Gross Joint Entity Revenue, Operating Costs, and all other deductions to arrive at
Net Joint Entity Revenue, including but not limited to, 

15

 

all
withholdings, taxes and fees, in a format and with such information as agreed between the Parties. 

        5.3    DEPOSIT OF FUNDS.    All funds received directly from Venetian
customers by the Venetian Casino Sites shall be paid into the customer bank account of the Joint Entity. All interest revenue earned upon such deposits shall be added to, and become part of, the Gross
Joint Entity Revenue. 

        5.4    OPERATING COST PAYMENTS TO THE JOINT ENTITY.    

	a.
	Each month after Closing, during the existence of the Joint Entity shall issue a detailed report of Gross Joint Entity Revenue and
Operating Costs ("Monthly Report").

	b.
	If Operating Costs exceed Gross Joint Entity Revenue, then (i) provided that the sum of all SSPG Capital Contribution to the
Joint Entity during the existence of the Joint Entity does not exceed the SSPG Cap, SSPG shall, within thirty days of receipt of the receipt of the Monthly Report, pay to the Joint Entity sixty six
and seven tenths percent (66.7%) of the difference between Operating Costs and Gross Joint Entity Revenue, and (ii) provided that the sum of all Venetian Capital Contribution to the Joint
Entity during the existence of the Joint Entity does not exceed the Venetian Cap, Venetian shall, within thirty days of receipt of the receipt of the Monthly Report, pay to the Joint Entity thirty
three and three tenths percent (33.3%) of the difference between Operating Costs and Gross Joint Entity Revenue. 

        5.5    DESIGN AND IMPLEMENTATION COST PAYMENTS TO THE JOINT
ENTITY.    

	a.
	Each month after Closing, during the existence of the Joint Entity, the Joint Entity shall issue a detailed report of the Design and
Implementation Costs incurred for that month ("Development Report").

	b.
	If there are any Design and Implementation Costs incurred during the month of the Development Report, then (i) provided that the
sum of all SSPG Capital Contribution to the Joint Entity during the existence of the Joint Entity does not exceed the SSPG Cap, SSPG shall, within thirty days of receipt of the Development Report, pay
to the Joint Entity sixty six and six tenths percent (66.6%) of Design and Implementation Costs, and (ii) provided that the sum of all Venetian Capital Contribution to the Joint Entity during
the existence of the Joint Entity does not exceed the Venetian Cap, Venetian shall, within thirty days of receipt of the Development Report, pay to the Joint Entity thirty three and three tenths
percent (33.3%) of the Design and Implementation Costs. 

        6.    Additional Obligations of the Joint Entity    

        6.1    DOMAIN NAMES.    The Joint Entity shall not register any domain
names or provide links on any Internet web sites to facilitate access to the Venetian Casino Sites and shall not register any domain names incorporating any Venetian Marks unless directed in writing
to do so by Venetian. 

        6.2    IP ADDRESSES.    The Joint Entity shall obtain IP addresses for
the Venetian Casino Sites and shall inform Venetian and SSPG of the IP addresses and the function of the Venetian Casino Sites server associated with each IP address. 

        6.3    JOINT ENTITY TO PREVENT UNITED STATES AND OTHER ILLEGAL
WAGERING.    The Joint Entity shall warrant upon Closing that: 

	a.
	Not Accept U.S. Bets.    The Joint Entity shall not engage in or cause any person or entity to, solicit or market the Venetian
Casino Sites, or any other gambling Internet 

16

 

web
sites, to persons residing in the Illegal Localities, United States, Puerto Rico, any other United States territories or protectorates, or any other areas governed by the law of the United States
(all of such areas collectively being referred to as the "United States") until it is mutually agreed by SSPG and Venetian that gambling via the Internet has been made legal in the United States and
any Illegal Localities, such efforts shall include: 

(i) refusing
bets or wagers from persons in the United States and/or the Illegal Localities consistent with the procedures and obligations set forth in Exhibit E,
(ii) periodically reviewing of the effectiveness of Joint Entity's current procedures to prevent taking bets from anyone other than Appropriate Visitors, (iii) implementing, in the
shortest time possible, commercially reasonable procedures, technologies or methodologies to supplement or improve the procedures of the Joint Entity to prevent taking bets from anyone other than
Appropriate Visitors, where Venetian and/or the periodic review, indicates such procedures, technologies or methodologies should be implemented; and 

	b.
	Not Accept Underage Bets.    The Joint Entity shall use its best efforts to ensure that no bets or wagers are made on the
Venetian Casino Sites from persons that are not of legal age to place wagers on the Venetian Casino Sites, such efforts to include, without limitation, (i) refusing bets from those persons that
provide identification information that indicates that they are not of legal age to place wagers on the Venetian Casino Sites, (ii) periodically reviewing of the effectiveness of the Joint
Entity's current procedures to prevent taking bets from anyone other than Appropriate Visitors of appropriate age, (iii) implementing, in the shortest time possible, commercially reasonable
procedures, technologies or methodologies to supplement or improve the procedures of Joint Entity to identify players and to prevent taking bets from anyone other than Appropriate Visitors of
appropriate age, where Venetian and/or the periodic review, indicates such procedures, technologies or methodologies should be implemented. 

        7.    Warranties of SSPG    

        7.1    SSPG covenants, represents and warrants that SSPG is the owner or licensee of the SSP Hardware,
SSP Software and has or shall obtain prior to Closing or prior to its first use being required by the
Joint Entity all necessary rights (including, without limitation, licenses for Intellectual Property rights) in and to the SSP Hardware and SSP Software effect the intent of this Agreement and the
Operating Agreement, and that to the best of its actual knowledge, information and belief, the SSP Hardware, SSP Software do not infringe any rights of any other person or entity. 

        7.2    With regard to the SSP Software, SSPG covenants, represents and warrants that SSPG has the
authority, or shall obtain the authority prior to Closing or prior to its first use being required by the Joint Entity, to fulfill all obligations and make all licenses pursuant to this Agreement
related to the SSP Hardware, SSP Software including, but not limited to, (i) the escrow of Source Code and SSP Hardware schematics, (ii) the licenses of use, reproduction, production and
modification, (iii) the grant of the right to repair, and (iv) the license to create derivative works. 

        7.3    To the best of SSPG's actual knowledge, information and belief, the grant of the license of the
SSP Software, the use and full exploitation by the Joint Entity of the SSP Software and the exercise of the Joint Entity's rights in this Agreement shall not infringe or conflict with any valid and
subsisting Intellectual Property right, title, interest or license held, possessed or maintained by any other person or entity. 

17

 

        7.4    [Intentionally left blank] 

        7.5    SSPG has or shall obtain prior to the Closing Date the requisite authority to enter into and
carry out their terms of this Agreement. 

        7.6    SSPG's execution of this Agreement and its compliance with its terms shall not violate the
personal, contractual or property rights of any other person or entity. 

        7.7    SSPG covenants, represents and warrants that SSPG will not and shall not issue any press release
or other communication regarding this Agreement, or the Venetian Casino Sites, without the prior written approval of Venetian. 

        7.8    SSPG covenants, represents and warrants that SSPG will not and shall not register any domain
names or provide links on any publicly accessible Sites to facilitate access to the Venetian Casino Sites and shall not register any domain names incorporating any Venetian Marks unless directed in
writing to do so by Venetian. 

        7.9    SSPG covenants, represents and warrants that during the term of this Agreement, SSPG shall not
itself, or through any other joint venture or other business arrangement, operate or participate in the ownership of any online gambling web sites other than the Venetian Casino Sites. 

	a.
	Notwithstanding anything to the contrary in Section 7.9, Venetian acknowledges that the sole
member of SSPG (SSP Solutions, Inc.) shall continue to provide its products and services to any customer on an unrestricted basis.

	b.
	As of the Effective Date, SSPG and Venetian shall adopt the budget for the Joint Entity's development and
related operations, as set forth in Exhibit A SSPG covenants, represents and warrants that within thirty (30) days from the Effective Date, SSPG shall provide and maintain adequate
capitalization to fund its portion of the Joint Entity's budget up to the SSPG Cap. Based upon current estimates of development and operations, the capital requirements for SSPG shall be two million
dollars ($2,000,000). 

        7.10    EXCEPT FOR THE WARRANTIES PROVIDED IN THIS SECTION 7, SSPG DISCLAIMS ALL OTHER WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE RELATED TO SOFTWARE PROVIDED BY SSPG. 

        8.    Warranties of Venetian    

        8.1    Venetian covenants, represents and warrants that Venetian has or shall obtain prior to Closing
the right and authority to contribute the license in the Venetian Marks, Venetian Works, and Venetian List upon the terms set forth in this Agreement. 

        8.2    Venetian has or shall obtain prior to Closing the requisite authority to enter into and carry out
their terms of this Agreement. 

        8.3    Venetian's execution of this Agreement and its compliance with its terms shall not violate the
personal, contractual or property rights of any other person or entity. 

        8.4    Venetian shall not issue any press release or other communication regarding this Agreement, or
the Venetian Casino Sites, without the prior written approval of SSPG. 

        8.5    Venetian covenants, represents and warrants that during the term of this Agreement, Venetian
shall not itself, or through any other joint venture or other business arrangement, operate or participate in the ownership of any online gambling web sites other than the Venetian Casino Sites. 

18

 

	a.
	Notwithstanding anything to the contrary in Section 8.5, SSPG acknowledges that Venetian shall continue to provide its products
and services to any customer on an unrestricted basis. 

        8.6    EXCEPT FOR THE WARRANTIES PROVIDED IN THIS SECTION 8, VENETIAN DISCLAIMS ALL OTHER WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 

        9.    Conditions Precedent to Closing    

        9.1    NEVADA GAMING APPROVAL.    If before the first anniversary of
the Effective Date any governmental body, regulatory agency, or board with jurisdiction over Venetian indicates any disapproval of involvement in foreign Internet based gaming by Venetian, its
employees, parent company or affiliates, then this Agreement shall terminate prior to forming the Joint Entity. 

        9.2    VENETIAN BOARD APPROVAL.    The effectiveness of the
obligations of the Parties hereunder is subject to Venetian's satisfaction or waiver of the following on or before on or before ninety (90) days after the Effective Date (which satisfaction or
waiver shall be notified by Venetian in writing to SSPG promptly after the expiration of such period): 

	a.
	The approval of the Board of Directors of Venetian regarding the transactions contemplated by this Agreement and the Operating Agreement
and all approvals, clearances and consents of third parties necessary or desirable for the consummation of the transactions contemplated by the Agreement. 

        9.3    SSPG BOARD OR MANAGER APPROVAL.    The effectiveness of the
obligations of the Parties hereunder is subject to SSPG's satisfaction or waiver of the following conditions on or before ninety (90) days after the Effective Date (which satisfaction or waiver
shall be notified by SSPG in writing to Venetian promptly after the expiration of such period): 

	a.
	The approval of the Board of Directors or Managers of SSPG regarding the transactions contemplated by this Agreement and the Operating
Agreement and all approvals, clearances and consents of third parties necessary or desirable for the consummation of the transactions contemplated by the Agreement. 

        9.4    SELECTION OF GAMING JURISDICTION.    SSPG and Venetian shall
mutually select, and agree to in writing, a gaming jurisdiction from which the Venetian Casino Sites will be maintained and operate and receive its online gaming license (the "Jurisdiction"). 

        9.5    LENDER APPROVAL.    This Agreement and each Party's obligations
hereunder are subject to the approval of its respective lenders, to the extent deemed necessary by each party, as determined in its sole and absolute discretion. Any such approval shall be obtained
before the first anniversary of the Effective Date. 

        9.6    PROVISION OF SOFTWARE LICENSES.    Within thirty
(30) days of the Effective Date, SSPG shall provide to Venetian copies of executed software license agreements with its licensors that reflect SSPG's rights to sublicense the SSPG Software to
the Joint Entity. Such software license agreements shall reflect rights, indemnities, warranties and exclusions thereof in material conformity to those established in this Agreement. Within fifteen
(15) days of receiving such licenses, Venetian, in its reasonable discretion, shall determine whether such licenses are satisfactory and shall so notify SSPG in writing. If Venetian reasonably
determines the licenses are satisfactory this condition will be deemed waived. Alternatively, if Venetian reasonably determines the licenses are not satisfactory, Venetian may immediately terminate
this Agreement. 

19

  

        9.7    ESTIMATE DESIGN AND IMPLEMENTATION COSTS.    SSPG has provided
Venetian with written detailed estimate of the estimated design and implementation costs as set forth in Exhibit A. 

        9.8    CLOSING DATE.    If Closing does not occur before the first
anniversary of the Effective Date then within sixty (60) days of the first anniversary of the Effective Date either Party may terminate this agreement upon fifteen (15) days notice to
the other Party. 

        9.9    EFFECT OF TERMINATION PRIOR TO CLOSING.    If this Agreement is
terminated prior to Closing, then the obligations set forth in this Agreement (other than confidentiality obligations) shall become null and void, each Party bearing its own expenses with no claim
against, or liability to the other Party. 

        10.    Closing    

        10.1    CONDITIONS OF CLOSING.    This Agreement shall close upon
satisfaction of the following conditions: 

	a.
	The conditions set forth in Sections 7.10, 9.1, 9.2, 9.3, 9.4, 9.5, 9.6, and 9.7 of this Agreement have been satisfied or waived by SSPG
and Venetian.

	b.
	The Joint Entity has been formed pursuant to Section 2 of this Agreement.

	c.
	Venetian and SSPG have received their ownership interests in the Joint Entity. 

        11.    Gaming Licenses.    

        11.1    EFFORTS.    After the Closing Date, Venetian, SSPG and the
Joint Entity shall each engage in all commercially reasonable efforts and legal activities to acquire all required licensing in the Jurisdiction for itself relevant to its role and the roles of their
subsidiaries (as appropriate) in the Venetian Casino Sites to the extent possible. 

        11.2    SOFTWARE AND SYSTEMS.    SSPG and the Joint Entity shall be
responsible for submitting the Software and hardware to the applicable gaming authorities in the Jurisdiction for the approval of all or any portion of the Software and hardware that may be required
prior to the installation of the Software. If required, the Joint Entity shall serve as a limited test site for the Software for any Jurisdiction authorities for licensing purposes 

        11.3    COMPLIANCE PLAN.    The Joint Entity shall prepare a written
regulatory compliance plan for approval by Venetian and SSPG prior to accepting any on-line wager. The Joint Entity shall not take any on-line wager prior to Venetian and
SSPG's written approval of the regulatory compliance plan. 

        11.4    STATUS.    Upon a reasonable request from any Party, each
Party shall inform the other Party of its status of the acquisition of gaming licenses in the Jurisdiction. 

        12.    MILESTONES    

        12.1    LICENSING REQUIREMENT.    If all gaming licensing required to
legally operate the Venetian Casino Sites have not been achieved by the first anniversary of the Effective Date, then either Party may terminate this
agreement upon fifteen (15) days notice to the other Party. 

        12.2    FIRST LEGAL WAGER REQUIREMENT.    If the Venetian Casino Sites
is not fully operational and able to take legal wagers in conformance with this Agreement on or before eighteen (18) months after the Effective
Date, then within twenty (20) months after the Effective Date either Party may terminate this agreement upon fifteen (15) days notice to
the other Party. 

20

 

        13.    Dissolution and Termination After Closing    

        13.1    VENETIAN TERMINATION AND DISSOLUTION.    This Agreement shall
terminate upon execution of the Joint Entity LLC Operating Agreement and related license and sublicenses by Venetian and SSPG. Notwithstanding any other provision of this Agreement, Venetian may
immediately terminate
this Agreement and dissolve the Joint Entity without any penalty or obligation to pay damages to SSPG or the Joint Entity, their employees or their agents by notice in writing to SSPG and the Joint
Entity in the event that (i) SSPG or the Joint Entity materially breaches any section of this Agreement and such breach, if capable of remedy as determined in Venetian's reasonable discretion,
has not been remedied within thirty (30) days of notice, (ii) SSPG or the Joint Entity engages or is engaged in any affirmative act of insolvency (as agreed to in good faith by the
Managers) that is not dismissed within ninety (90) days, (iii) SSPG and the Joint Entity, in developing and/or operating the Venetian Casino Sites, fails to comply with United States
federal, state or local gaming laws governing transactions with persons accessing the Venetian Casino Sites, (iv) Venetian reasonably determines in good faith that Venetian's continued
involvement in the Venetian Casino Sites violates U.S. federal or state criminal laws or regulations to which it is subject or to which it may become subject, or (v) Venetian reasonably
determines in good faith that its continued involvement in the Venetian Casino Sites materially impairs Venetian's ability to obtain or maintain gaming related licensing in any other jurisdiction.
Venetian may, upon fifteen (15) days notice to SSPG and the Joint Entity, terminate this Agreement and dissolve the Joint Entity without any penalty or obligation to pay damages to SSPG or the
Joint Entity, their employees or their agents by notice of termination in writing to SSPG and the Joint Entity pursuant to Sections 12.1 or 12.2 of this Agreement. 

        13.2    SSPG TERMINATION AND DISSOLUTION.    Notwithstanding any other
provision of this Agreement, SSPG may upon one hundred eighty (180) days notice terminate this Agreement and dissolve the Joint Entity without any penalty or obligation to pay damages to
Venetian or the Joint Entity, their employees or their agents by notice of termination in writing to Venetian and the Joint Entity in the event that (i) Venetian or the Joint Entity materially
breaches any section of this Agreement and such breach, if capable of remedy, as determined in SSPG's reasonable discretion, has not been remedied within thirty (30) days of notice or
(ii) Venetian or the Joint Entity engages or is engaged in any affirmative act of insolvency (as agreed to in good faith by the Managers) that is not dismissed within ninety (90) days.
SSPG may, upon fifteen (15) days notice to Venetian and the Joint Entity, terminate this Agreement and dissolve the Joint Entity without any penalty or obligation to pay damages to Venetian or
the Joint Entity, their employees or their agents by notice of termination in writing to Venetian and the Joint Entity pursuant to Sections 12.1 or 12.2 of this Agreement. 

        13.3    MUTUAL CONSENT.    Notwithstanding any other provision of this
Agreement Venetian and SSPG may immediately terminate this Agreement and dissolve the Joint Entity upon mutual written agreement and notice to the Joint Entity without any penalty or obligation to pay
damages to SSPG, Venetian, or the Joint Entity, their employees or their agents 

        13.4    MOVING JURISDICTIONS.    Notwithstanding any other provision
of this Agreement, if the Venetian Casino Sites is required to change Jurisdictions due to any change in governmental law, regulation or opinion, then the Parties shall either select a new
Jurisdiction or terminate this Agreement. If the parties elect to terminate this agreement, then such termination shall be done without any penalty or obligation to pay damages to SSPG, Venetian, or
the Joint Entity, their employees or their agents 

        13.5    FAILURE TO OBTAIN REQUIRED LICENSING.    If either Venetian or
SSPG is unable to acquire all required licensing for their involvement in the Venetian Casino Sites, then 

21

 

this Agreement shall terminate upon notification by the party unable to achieve licensing to the other party. 

        13.6    EFFECT OF TERMINATION.    Pursuant to 12.1 or 12.2, either
Venetian or SSPG, shall have the right to file appropriate dissolution documents to legally dissolve the Joint Entity after termination of this Agreement. In such event, all licenses from Venetian set
forth in Section 3 and SSPG in Section 4 of this Agreement shall be immediately terminated. In the event of dissolution, any assets of the Joint Entity shall be auctioned off or
otherwise disposed of by a third party selected by mutual agreement of SSPG and Venetian and the proceeds of the sale shall be split, after payment of all Joint Entity liabilities, with fifty percent
(50%) to Venetian and fifty percent (50%) to SSPG. All data created by, for, through, or in relation to the Venetian Casino Sites shall be archived by the Parties for at least three years or such
other time period as required by the Jurisdiction. 

        14.    Confidentiality    

        14.1    SSPG shall from time to time during the Term of this Agreement, make available to Venetian
information that is non-public, confidential or proprietary to SSPG or Venetian or its directors, managers, officers, employees, agents, distributors, designers,
supplier/sub-contractors and professional advisers (collectively "Venetian Representatives") may receive information that is non-public, confidential or proprietary to SSPG
(for the purposes of this Section 14.1 the "SSPG Confidential Information"). Venetian shall not, during or after the Term of this Agreement, disclose the SSPG Confidential Information to third
parties or use the SSPG Confidential Information for any purpose other than in connection with its duties and obligations as set forth in this Agreement. Venetian will ensure that the SSPG
Confidential Information will be kept confidential by Venetian and Venetian Representatives, and that all such Venetian Representatives shall be made aware of the confidential nature of the SSPG
Confidential Information. In the event Venetian is requested or required (by oral question, interrogatories, subpoena, civil investigative demand or similar process) to disclose any of the SSPG
Confidential Information, Venetian will promptly notify SSPG of such request or requirement and cooperate with SSPG so that SSPG may seek an appropriate protective order or otherwise seek appropriate
protection of the SSPG Confidential Information. In the event that such protection is not obtained or that SSPG waives compliance with this Section 14.1, Venetian shall furnish only that
portion of the SSPG Confidential Information that Venetian is advised by written opinion of Venetian's counsel that Venetian is legally required to be furnished. Unless mandated by law or a
governmental agency, Venetian will keep all terms and conditions of this Agreement confidential both during and after the Term of the Agreement. 

        14.2    SSPG shall from time to time during the Term of this Agreement, make available to the Joint
Entity information that is non-public, confidential or proprietary to SSPG or the Joint Entity or its directors, officers, employees, agents, distributors, designers,
supplier/sub-contractors and professional advisers (collectively "the Joint Entity Representatives") may receive information that is non-public, confidential or proprietary to
SSPG (for the purposes of this Section 14.2 the "SSPG Confidential Information"). The Joint Entity shall not, during or after the Term of this Agreement, disclose the SSPG Confidential
Information to third parties or use the SSPG Confidential Information for any
purpose other than in connection with its duties and obligations as set forth in this Agreement. The Joint Entity will ensure that the SSPG Confidential Information will be kept confidential by the
Joint Entity and the Joint Entity Representatives, and that all such the Joint Entity Representatives shall be made aware of the confidential nature of the SSPG Confidential Information. In the event
the Joint Entity is requested or required (by oral question, interrogatories, subpoena, civil investigative demand or similar process) to disclose any of the SSPG Confidential Information, the Joint
Entity will promptly notify SSPG of such request or requirement and cooperate with SSPG so that SSPG may seek an appropriate protective order or 

22

 

otherwise seek appropriate protection of the SSPG Confidential Information. In the event that such protection is not obtained or that SSPG waives compliance with this Section 14.2, the Joint
Entity shall furnish only that portion of the SSPG Confidential Information that the Joint Entity is advised by written opinion of the Joint Entity's counsel that the Joint Entity is legally required
to be furnished. Unless mandated by law or a governmental agency, the Joint Entity will keep all terms and conditions of this Agreement confidential both during and after the Term of the Agreement. 

        14.3    Venetian shall from time to time during the Term of this Agreement, make available to SSPG
information that is non-public, confidential or proprietary to Venetian or SSPG or its directors, officers, employees, agents, distributors, designers, supplier/sub-contractors
and professional advisers (collectively "SSPG Representatives") may receive information that is non-public, confidential or proprietary to Venetian (for the purposes of this
Section 14.3 the "Venetian Confidential Information"). SSPG shall not, during or after the Term of this Agreement, disclose the Venetian Confidential Information to third parties or use the
Venetian Confidential Information for any purpose other than in connection with its duties and obligations as set forth in this Agreement. SSPG will ensure that the Venetian Confidential Information
will be kept confidential by SSPG and SSPG Representatives, and that all such SSPG Representatives shall be made aware of the confidential nature of the Venetian Confidential Information. In the event
SSPG is requested or required (by oral question, interrogatories, subpoena, civil investigative demand or similar process) to disclose any of the Venetian Confidential Information, SSPG will promptly
notify Venetian of such request or requirement and cooperate with Venetian so that Venetian may seek an appropriate protective order or otherwise seek appropriate protection of the Venetian
Confidential Information. In the event that such protection is not obtained or that Venetian waives compliance with this Section 14.3, SSPG shall furnish only that portion of the Venetian
Confidential Information that SSPG is advised by written opinion of SSPG's counsel that SSPG is legally required to be furnished. Unless mandated by law or a governmental agency, SSPG will keep all
terms and conditions of this Agreement confidential both during and after the Term of the Agreement. 

        14.4    Venetian shall from time to time during the Term of this Agreement, make available to the Joint
Entity information that is non-public, confidential or proprietary to Venetian or the Joint Entity or its directors, officers, employees, agents, distributors, designers,
supplier/sub-contractors and professional advisers (collectively "the Joint Entity Representatives") may receive information that is non-public, confidential or proprietary to
Venetian (for the purposes of this Section 14.4 the "Venetian Confidential Information"). The Joint Entity shall not, during or after the Term of this Agreement, disclose the Venetian
Confidential Information to third parties or use the Venetian Confidential Information for any purpose other than in connection with its duties and obligations as set forth in this Agreement. The
Joint Entity will ensure that the Venetian Confidential Information will be kept confidential by the Joint Entity and the Joint Entity Representatives, and that all such the Joint Entity
Representatives shall be made aware of the confidential nature of the Venetian Confidential Information. In the event the Joint Entity is requested or required (by oral question, interrogatories,
subpoena, civil investigative
demand or similar process) to disclose any of the Venetian Confidential Information, the Joint Entity will promptly notify Venetian of such request or requirement and cooperate with Venetian so that
Venetian may seek an appropriate protective order or otherwise seek appropriate protection of the Venetian Confidential Information. In the event that such protection is not obtained or that Venetian
waives compliance with this Section 14.4 the Joint Entity shall furnish only that portion of the Venetian Confidential Information that the Joint Entity is advised by written opinion of the
Joint Entity's counsel that the Joint Entity is legally required to be furnished. Unless mandated by law or a governmental agency, the Joint Entity will keep all terms and conditions of this Agreement
confidential both during and after the Term of the Agreement. 

23

 

        14.5    NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, THE EXISTENCE OF THIS AGREEMENT
SHALL BE DEEMED "CONFIDENTIAL INFORMATION" PRIOR TO THE CLOSING DATE. NEITHER PARTY SHALL DISCLOSE THE EXISTENCE OF THIS AGREEMENT (EXCEPT AS MAY BE REQUIRED BY APPLICABLE LAW, RULES OR REGULATIONS
AND ANY OTHER APPROPRIATE REGULATORY BODIES) WITHOUT THE PRIOR WRITTEN CONSENT OF THE OTHER PARTY. IN THE EVENT THE NATURE OF THIS AGREEMENT BECOMES GENERALLY KNOWN, EITHER PARTY SHALL HAVE THE RIGHT
TO ISSUE A PRESS RELEASE DESCRIBING THE GENERAL NATURE OF THIS AGREEMENT. 

        15.    General Provisions    

        15.1    INTERPRETIVE AND GOVERNING LAW    

	a.
	The Parties agree that this Agreement shall be interpreted under and governed by Nevada law without regard to its conflicts of laws
principles. 

        15.2    ARBITRATION    

	a.
	All controversies and claims of any kind or nature whatsoever arising out of this Agreement, including, but not limited to controversies
and claims with respect to the scope, interpretation or enforcement of this Agreement, shall be resolved promptly by arbitration between the parties.

	b.
	The disputing party shall give the other party written notice of the dispute ("the Arbitration Commencement Date"). Within twenty
(20) days after the Arbitration Commencement Date, the receiving party shall submit to the disputing party a written response. The notice and response shall
include a statement of each party's position and a summary of the evidence and argument supporting its position. The parties shall meet at a mutually acceptable time and place within thirty
(30) days after the Arbitration Commencement Date and thereafter as often as they reasonably deem necessary to agree upon appropriate rules and procedures for the arbitration of the dispute.

	c.
	If the parties cannot agree upon rules and procedures for the arbitration of the dispute within sixty (60) days after the
Arbitration Commencement Date, the controversy will be settled by arbitration by three arbitrators. Each party shall designate one arbitrator within seventy-five (75) days after the
Arbitration Commencement Date. The two arbitrators shall designate a third arbitrator within ninety (90) days after the Arbitration Commencement Date to serve as the Chair of the arbitration.
Each arbitrator shall have a Juris Doctorate or equivalent degree and any of the following: (i) at least five years of legal practice in an Intellectual Property group of a nationally
recognized law firm practicing in a common law jurisdiction; or (ii) shall have served for at least five (5) years as a judge with experience in Intellectual Property matters. No
arbitrator shall have an affiliation or relationship with either party, nor shall he or she have any interest in or benefit from the outcome of the arbitration. The arbitrators shall be governed by
the United States Arbitration Act, 9. U.S.C. §§1-16, and the Federal Rules of Civil Procedure and judgment upon the award rendered by the arbitrators may be entered
by any court having jurisdiction. The place of arbitration shall be Clark County, Nevada. In addition to actual damages, the arbitrators are empowered to award reasonable attorney's fees and costs to
the prevailing party.

	d.
	All deadlines specified in this Section 15.2 may be extended by mutual agreement. 

24

 

	e.
	The procedures specified in this paragraph shall be the sole and exclusive procedures for the resolution of disputes between the parties
arising out of or relating to this Agreement, provided, however, that a party may seek a preliminary injunction or other preliminary judicial relief if, in its judgment, that action is necessary to
avoid irreparable damage. Despite the seeking of preliminary judicial relief, the parties will continue to participate in good faith in the procedures specified in this paragraph. All applicable
statutes of limitation shall be tolled while the procedures specified in this paragraph are pending. The parties will take any actions required to effectuate the tolling. 

        15.3    ENTIRE AGREEMENT.    This Agreement constitutes the entire
Agreement between the Parties concerning the subject matter hereof. No prior or contemporaneous representations, inducements, promises, or agreements, oral or otherwise, between the Parties with
reference to the subject matter of this Agreement will be of any force or effect. In the event of any express or implied conflict between the terms and provisions of this Agreement and any other
agreement, the terms and conditions of this Agreement shall control and govern. The Contribution Agreement dated January 15, 2002 is hereby terminated. This Agreement specifically replaces the
Contribution Agreement dated January 15, 2002 in its entirety. 

        15.4    AMENDMENTS IN WRITING.    No modification or amendment to this
Agreement will be valid or binding unless reduced to writing and duly executed by the Party or Parties to be bound thereby. 

        15.5    NOTICES.    Notices herein will be delivered and effective as
follows: Every notice required or contemplated by this Agreement to be given by either Party may be given by hand delivery, by overnight commercial courier delivery service or express mail, by
telecopier, or by certified mail return receipt requested addressed to the Party for whom it is intended, at the address as follows: 

	To Venetian:	 	Venetian Casino Resort, LLC

3355 Las Vegas Blvd., South

Las Vegas, NV 89109

Fax: (702) 733-5499

Attn: William P. Weidner
	

To SSPG:	
 	

SSP Gaming, LLC

17861 Cartwright Road

Irvine, CA 92614

Fax: (949) 851-8588

Attn: Marvin Winkler

        15.6    WAIVER.    None of the terms of this Agreement, including this
Section 15, or any term, right, or remedy herein shall be deemed waived unless such waiver is in writing and signed by the Party to be charged therewith. 

        15.7    ASSIGNMENT.    This Agreement is personal to Venetian and SSPG
and shall not be assignable to any other entity without the written permission of the other Party. The foregoing notwithstanding, upon written notice to the other Party, this Agreement may be assigned
by either Party to an affiliate or other entity specifically created for that purpose. If the Joint Entity is formed, then the Joint Entity shall not assign this Agreement to any other entity without
the written permission of Venetian and SSPG. 

        15.8    BINDING ON SUCCESSORS.    This Agreement will be binding upon
and inure to the benefit of the Parties and their successors and assigns permitted by this Agreement. 

25

 

        15.9    FORCE MAJEURE.    Neither Party shall be liable for failure to
perform or delay in performing any obligation under this Agreement if the failure or delay is caused by any circumstances beyond its reasonable control, including but not limited to acts of god, war,
civil commotion or industrial dispute ("Force Majeure"). If such delay or failure continues for at least thirty (30) days, the Party not subject to the Force Majeure shall be entitled to
terminate this Agreement by notice in writing to the other 

        15.10    NEUTRAL INTERPRETATION AND REPRESENTATION.    Each Party has
had the opportunity to be represented by counsel of its choice in negotiating this Agreement. This Agreement shall therefore be deemed to have been negotiated and prepared at the joint request,
direction, and construction of the Parties, at arms length, with the advice and participation of counsel, and shall be interpreted in accordance with its terms without favor to any Party. The Parties
and their respective counsel have reviewed this Agreement, and the normal rule of construction to the effect that any ambiguities in this Agreement are to be resolved against the drafting Party are
not to be employed in the interpretation of this Agreement. 

        15.11    INDEPENDENT PARTIES.    The Parties are independent
contractors. No partnership or joint venture beyond ownership in the Joint Entity is intended to be created by this Agreement, nor any principal agent or employer-employee relationship. Neither Party
has, and Neither Party shall attempt to assert, the authority to make commitments for or to bind any other Party to any obligation. 

        15.12    INJUNCTIVE RELIEF.    Each Party acknowledges that any
violation by it of its covenants in this Agreement relating to Intellectual Property rights or gaming licenses would result in damage that is largely intangible but nonetheless real, and that is
incapable of complete remedy by an award of damages. Accordingly, any such violation shall give the other Party the right to seek a court ordered injunction or other appropriate order to specifically
enforce those covenants, independent of any dispute arbitration. The parties agree to submit to the exclusive personal jurisdiction of the federal and state courts sitting in Clark County, Nevada for
the purposes of any injunctive relief action. The Parties agree that the federal and state courts sitting in Clark County, Nevada are the most appropriate venue for the purposes of any injunctive
relief action. 

        15.13    COUNTERPARTS.    This agreement may be executed in any number
of counterparts, each of which shall be considered an original, but all of which counterparts shall be deemed to be one and the same document. Parties may execute this agreement by signatures obtained
through facsimile and those signatures may be relied upon by the other Party as valid as if they were signed in the presence of the other Party. 

        Each
person signing below represents that he or she has read this Agreement in its entirety, understands its terms, is duly authorized to execute this Agreement on behalf of the Party
indicated 

26

 

below by his or her name, and agrees on behalf of such Party that such Party will be bound by those terms. 

	DATE:	    
	 	SSPG, LLC
	

	

 	
 	

 	

 	

 
	 	 	 	By:	    

	

 	

 	
 	

Name:	

Marvin Winkler

	

 	

 	
 	

Its:	

Manager

	

	

 	
 	

 	

 	

 
	

DATE:	

    
	
 	
VENETIAN CASINO RESORT, LLC
	

	

 	
 	

 	

 	

 
	 	 	 	By:	    

	

 	

 	
 	

Name:	

    

	

 	

 	
 	

Its:	

    

27

  

 
 

EXHIBIT A    
    
    ESTIMATED BUDGET    

[insert
budget] 

28

  

 
 

EXHIBIT B    
    
    SSPG SOFTWARE    

SSP EMBASSY System Software  

        The SSP EMBASSY system is a distributed system consisting of an SSP EMBASSY device, an SSP EMBASSY Server, and an SSP EMBASSY Client desktop. The SSP EMBASSY
device and the SSP EMBASSY Client Desktop reside within the client computing environment, while the SSP EMBASSY Server is connected to the client via the Internet and administered by a trusted party. 

        The
SSP EMBASSY device provides the secure, real-time, run-time environment for the sensitive portion of applications called applets. The SSP EMBASSY device
security core is the region within the SSP EMBASSY device that is protected from both hardware and host-based software attacks. It consists of a microprocessor, memory management unit,
real-time clock, secure non-volatile memory for key storage, encryption/decryption technology, signing technology, and a true random number generator. 

        SSP
EMBASSY OS, which supports the execution of applets within the secure run time environment. 

SSP EMBASSY Manager  

        The SSP EMBASSY Manager allows the end-user to administer the installed applets, inquire about device resources, modify registration information, and
validate the SSP EMBASSY device's time and synchronization information 

SSP EMBASSY Device Life Cycle  

        Before an SSP EMBASSY device can install an applet, it must be authorized to be within the Trust Assurance Network. This begins by establishing a chain of trust
from a Personalization Station to the end-user. The chain of trust starts at the top with the SSP EMBASSY Root. The SSP EMBASSY Root is responsible for validating and authenticating the
Authorization Agent Certificate Authority, SSP EMBASSY Personalization Station Certificate Authority, and SSP EMBASSY Device Server Certificate Authority. The Certificate Authorities are responsible
for certifying and authorizing Authorization Agents, Personalization Stations, and EDS into the Trust Assurance Network. 

        The
Applet Certifying Agent (ACA) is the entity within the TAN that certifies the applet. The Applet Certifying Agent is a trusted 3 rd party that agrees to adhere to the security
protocols defined for the TAN. For the applet to be certified, the Application Provider securely transmits the applet to the Application Developer Services, which transmits the applet to the ACA. The
ACA certifies that the applet falls within the security protocol defined by the TAN, validates the applet header, and signs the applet code and the applet header separately with the ACA's private key. 

SSP XNS Protocol Applet  

        SSP XNS, a protocol for exchanging sensitive data between systems. XNS provides the ability for an "entity" (a person, place, or thing) to "register" its identity
and to store information about itself (in XML) on an XNS server. Subsequently, other entities can query this data by type and, if agreeable to both parties, enter into an agreement (an XNS "contract")
that governs the privacy, security, and synchronization controls for the data. 

        XNS
provides for three levels of data validity: 

        No
promises have been made as to data validity; 

29

 

        The
entity supplying the information has agreed to XNS terms and promises to provide valid data about itself; and 

        An
XNS registered certificate authority, e.g., a bank, certifies that specific information provided by an entity is known by the certificate authority to be valid. 

SSP Profile Manager  

        SSP Profile Manager provides comprehensive control of the PKI token and certificate lifecycle, and securely leverages the Internet for e-business and
communications. Through adoption of a Public Key Infrastructure using smart-card based digital signatures, control features are simplified for complete command of card and certificate
issuance. This may include everything from new member enrollment and issuing cards and certificates to replacement of lost and damaged cards, unblocking locked cards, updating cards, and renewing and
revoking certificates." 

SSP Epay Safe Secure Transaction Software  

        SSP Epay Safe software is the only secure "bank eyes only card present" encryption and transaction software for ATM, Debit or Credit Card transactions supporting
VISA, Master Card, and Discover currently worldwide. It is available in embedded EMBASSY applet form as well as a server based environment. 

        The
ADS, Local ADS and OBS are the data storage layer, as shown below: 

	SERVER
 
	 	DESCRIPTION

	Account Database Server (ADS)	 	The main database of the ICGS that stores all user account information including logged events.
	

Local ADS (Local ADS)	
 	

This server operates in support of the ADS by buffering records on local hosts for batch submission to the ADS. This feature adds to the scalability of the ICGS by preventing the ADS from becoming a potential bottleneck under load.
	

OffSites Backup Server (OBS)	
 	

Works with the Local ADS to perform offSites event logging and for disaster recovery purposes.

        Data
storage and handling servers of the Internet Casino Gaming System (ICGS). 

        The
Account Database Server (ADS) is the centralized database of all user and player account and session details. All other servers in the system access this information through the ADS.
With this basic structure in place, transaction throughput has been optimized. 

        ADS
functions have been optimized as follows: 

        Active
Account Transaction Cache—active accounts (a logged on player or administrator) participate in a system-wide distributed transaction cache. 

        Account
Identification—the ADS maps both account numbers and account names, providing flexibility for users and performance for the system. 

        Session
Logs—logs distribute transactions, facilitate Sites replication and server recovery, and localize transactions by account. Depending on jurisdiction (and the
corresponding duration and 

30

 

quantity parameters), log files are stored as required. The database is kept lean by trimming logs outside these parameters in the archive process. 

        The
Local Account Database Server (Local ADS) decentralizes the ADS, provides a distributed cache and distributed transaction journaling, and facilitates database replication and
offSites transaction logs. 

        Since
the ADS functions in support of the entire ICGS, communication with the ADS in a large system hosting many players could become a potential bottleneck. This is alleviated through
the Local ADS, which operates on each host in the network as required, and on all new hosts as they are dynamically added to a running system. The ADS is thereby significantly relieved of disk
intensive activities, resulting in significantly improved system and network performance. 

        Communication
between a Server and the ADS using the Local ADS. 

        Primary
scalability in the ICGS is achieved through the User Session Server (USS). The USS provides all player functionality additional USS servers can be dynamically added to a running
system as required. Each USS host (as for all other servers) operates in concert with a Local ADS. 

        Users
are dynamically distributed across all USS servers through the Connection Distribution Server (CDS). This server load balances through the use of a dynamic heap structure and
ensures optimal load across all USS servers currently operating 

	a.
	Methods
for integration between gaming platform and adopter systems 

        The
CAS allows customers to develop their own applications. This two-part system includes a JMS implemented event stream that sends all transaction data in
real-time to a JMS Queue/Topic. An external agent has been developed to receive these events from the Queue/Topic and then parse the contents for post processing. Post processing could be
anything that the operator can imagine including, financial reporting, real-time player analysis, real-time game analysis, marketing programs, loyalty programs etc. 

        The
CAS provides open access to all casino administration functionality for third party products. This provides a scriptable environment where any casino functionality can be automated
by the operator, thus allowing the operator to automate account adjustments, control financial limits, send targeted messages, automatically update player details, handle tasks, upgrade accounts, and
any other functionality provided by SSPG's Internet Casino Administration Centre (ICAC). All this is controlled by an advanced fine grained permissions system guaranteeing that the integrity of the
core system will always be maintained. 

	1.
	What
standard reports are provided with the System? 

        An
SQL feed from the ADS to an Oracle database provides for full reporting capabilities. The feed is provided by the SDS server. 

        The
SDS provides quasi real-time browser delivered reporting information. To achieve this the SDS provides three main services: 

	•
	A
parser for transforming incoming event data into SQL statements.

	•
	A
pipe for passing SQL statements to a Relational Data Base.

	•
	A
Java Servlet engine for retrieving and rendering data from the RDB into HTML. 

        The
SDS pipe guarantees to deliver data to the RDB within 30 minutes of an event occurring within the ICGS, although in practice the delay is very much shorter. This design has been
implemented in order to mitigate RDB performance restrictions. If all writes to the RDB were guaranteed in real-time, the performance advantage of the ADS would be lost. This point is
demonstrated by comparing the hardware required to run the SSPG system, which is substantially more cost-effective than that of our competitors. 

31

  

 
 

EXHIBIT C    
    
    VENETIAN MARKS    

THE
VENETIAN 

  

  

VENETIAN

SANDS

32

  

 
 

EXHIBIT D    
    
    ILLEGAL LOCALITIES    

        The
following is the initial list of jurisdictions that shall immediately be deemed Illegal Localities by Venetian and SSPG. Additional jurisdictions may be added by either SSPG or
Venetian from time to time. Jurisdictions may be removed from this list only with the written consent of both SSPG and Venetian. 

        Countries/Jurisdictions

	•
	The
United States, including each State, its commonwealths and territories

	•
	Iran,
Iraq, Libya, Sudan, North Korea, Cuba, Syria , Pakistan, Indonesia, Lebanon. 

33

  

 
 

EXHIBIT E    
    
    INITIAL PROCEURES TO PREVENT TAKING BETS FROM THOSE OTHER THAN APPROPRIATE VISTORS    
    
    US Originated Transaction Blocking    

THE VENETIAN CASINO SITES SOFTWARE CHECKS FOR US CUSTOMERS  

        SSP and the Joint Entity shall implement a technical mechanism in place within the SSP Software and GET Software to prevent betting by US residents 

CHECKS AT ACCOUNT SETUP AND DEPOSIT OF FUNDS TO AN ACCOUNT  

        The blocking mechanism takes into account three factors when determining whether or not to enable a customer to establish an account or deposit money to an
account, these are: 

	•
	Country
of origin of IP address—Uses IP geo-location software to determine the country of origin of an end user's IP address.

	•
	Country
of issue of Payment Card—Use a database table of card ranges (BIN numbers), along with issuing bank and country of issue. This list is
updated regularly and there is also an administration screen that allows manual update when required.

	•
	Postal
Code—The postal code field is examined to determine if it is of United States format. 

        The
check is performed when a customer attempts to deposit funds into an account and will accept or reject the transaction, or suspend the customer as shown below: 

	 
	 	US based IP
	 	Non-US IP
	 	Unknown IP

	Card Type
 
	 	US
	 	Non US
	 	Not

Known
	 	US
	 	Non US
	 	Not

Known
	 	US
	 	Non US
	 	Not

Known

	US ZipCode	 	x	 	x	 	x	 	x	 	x	 	x	 	x	 	x	 	x
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	Other Post Code	 	x	 	s	 	x	 	s	 	X	 	s	 	s	 	s	 	s
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	Blank PostCode	 	x	 	s	 	x	 	s	 	X	 	s	 	x	 	s	 	x
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	X
	the
transaction is accepted

	x
	the transaction is rejected and the customer account is suspended

	s
	the customer is suspended pending clarification that the customer is not a US resident 

        In cases where an account is suspended customer service will need to call the individual to assure that he or she has given and is at a number that is not in the
Illegal Localities.

ADDITIONAL CHECKS AT LOGIN  

        If a customer's IP address at login indicates a different ISP than the customer used in setting up the customer's account, and such ISP is
based in the U.S. or an unknown jurisdiction, then the customer's transaction will be suspended pending telephone verification.

TRANSACTION REFUSAL REPORTING  

        The Software shall create a report from those transactions that have attempted to deposit money into the system from the United States. 

34

  

 
 

EXHIBIT F    
    
    THIRD PARTY SOFTWARE    

Oracle
9i Enterprise Edition Database— 

SUN
SOLARIS 8 10/01— 

35

  

 
 

EXHIBIT G    
    
    HARDWARE REQUIREMENTS    

36

  

 
 

EXHIBIT H    
    
    TRAINING SUPPORT SERVICES    

37

  

 
 

EXHIBIT I    
    
    SSP HARDWARE    

SSP
Model 350 Smart Card Reader 

        This
card reader is designed for mass production deployment as an authentication and monetization tool. It is a multi purpose reader that allows for a wide range of applications covering
the majority of accepted industry standards. It is part of a scalable solution, adaptable for an open platform environment as well as suited for a controlled or closed environment, within all vertical
markets. 

        The
flexible design will allow for any combination of support for EMBASSY technology, smart card acceptance, magstripe, Forté or other smart cards, secure PIN pad, LCD
display, all via a USB port. In addition, the reader can support additional internal integrated "plug in" modules, biometric (thumbprint scanner) and GPS (for location authentication). 

        SSP
shall provide to the Joint Entity, a value added reseller (VAR) license for this technology. 

38

  

 
 

EXHIBIT J.    
    
    PREFERRED ESCROW AGREEMENT    
  

        This agreement ("Agreement") is effective                        ,
20    among DSI Technology Escrow Services, Inc. ("DSI"), SSP ("Depositor"), and
    Joint Entity    ("Preferred Beneficiary"), who collectively may be referred to in this Agreement as the parties ("parties"). 

        A.    Depositor
and Preferred Beneficiary have entered or will enter into a separate agreement regarding certain proprietary technology of Depositor (referred to in this
Agreement as "the Contribution Agreement"). 

        B.    Depositor
desires to avoid disclosure of its proprietary technology except under certain limited circumstances. 

        C.    The
availability of the proprietary technology of Depositor is critical to Preferred Beneficiary in the conduct of its business and, therefore, Preferred Beneficiary
needs access to the proprietary technology under certain limited circumstances. 

        D.    Depositor
and Preferred Beneficiary desire to establish an escrow with DSI to provide for the retention, administration and controlled access of certain proprietary
technology materials of Depositor. 

        E.    The
parties desire this Agreement to be supplementary to the Contribution Agreement pursuant to 11 United States [Bankruptcy] Code,
Section 365(n). 

ARTICLE 1—DEPOSITS

        1.1    Obligation to Make Deposit.    Upon the signing of this Agreement by the parties, Depositor shall deliver to
DSI the proprietary technology and other materials ("Deposit Materials") required to be deposited by the Contribution Agreement or, if the Contribution Agreement does not identify the materials to be
deposited with DSI, then such materials will be identified on Exhibit A. If Exhibit A is applicable, it is to be prepared and signed by Depositor and Preferred Beneficiary. DSI shall
have no obligation with respect to the preparation, signing or delivery of Exhibit A. 

        1.2    Identification of Tangible Media.    Prior to the delivery of the Deposit Materials to DSI, Depositor shall
conspicuously label for identification each document, magnetic tape, disk, or other tangible media upon which the Deposit Materials are written or stored. Additionally, Depositor shall complete
Exhibit B to this Agreement by listing each such tangible media by the item label description, the type of media and the quantity. Exhibit B shall be signed by Depositor and delivered to
DSI with the Deposit Materials. Unless and until Depositor makes the initial deposit with DSI, DSI shall have no obligation with respect to this Agreement, except the obligation to notify the parties
regarding the status of the account as required in Section 2.2 below. 

        1.3    Deposit Inspection.    When DSI receives the Deposit Materials and the Exhibit B, DSI will conduct a
deposit inspection by visually matching the labeling of the tangible media containing the Deposit Materials to the item descriptions and quantity listed on the Exhibit B. In addition to the
deposit inspection, Preferred Beneficiary may elect to cause a verification of the Deposit Materials in accordance with Section 1.6 below. 

        1.4    Acceptance of Deposit.    At completion of the deposit inspection, if DSI determines that the labeling of the
tangible media matches the item descriptions and quantity on Exhibit B, DSI will date and sign Exhibit B and mail a copy thereof to Depositor and Preferred Beneficiary. If DSI determines
that the labeling does not match the item descriptions or quantity on Exhibit B, DSI will (a) note the discrepancies in writing on Exhibit B; (b) date and sign
Exhibit B with the exceptions noted; and (c) mail a copy of Exhibit B to Depositor and Preferred Beneficiary. DSI's acceptance of the deposit 

39

 

occurs upon the signing of Exhibit B by DSI. Delivery of the signed Exhibit B to Preferred Beneficiary is Preferred Beneficiary's notice that the Deposit Materials have been received
and accepted by DSI. 

        1.5    Depositor's Representations.    Depositor represents as follows: 

        a.    Depositor
lawfully possesses all of the Deposit Materials deposited with DSI; 

        b.    With
respect to all of the Deposit Materials, Depositor has the right and authority to grant to DSI and Preferred Beneficiary the rights as provided in this Agreement; 

        c.    The
Deposit Materials are not subject to any lien or other encumbrance; 

        d.    The
Deposit Materials consist of the proprietary technology and other materials identified either in the Contribution Agreement or Exhibit A, as the case may be;
and 

        e.    The
Deposit Materials are readable and useable in their current form or, if any portion of the Deposit Materials is encrypted, the decryption tools and decryption keys
have also been deposited. 

        1.6    Verification.    A verification determines, in different levels of detail, the accuracy, completeness,
sufficiency and quality of the Deposit Materials. Preferred Beneficiary shall have the right to cause a verification of any Deposit Materials, at Preferred Beneficiary's expense. Preferred Beneficiary
shall notify Depositor and DSI of Preferred Beneficiary's request for verification. Depositor shall have the right to be present at the verification. If a verification is elected after the Deposit
Materials have been delivered to DSI, then only DSI, may perform the verification. 

        1.7    Deposit Updates.    Unless otherwise provided by the Contribution Agreement, Depositor shall update the Deposit
Materials within sixty (60) days of each release of a new version of the product that is subject to the Contribution Agreement. Such updates will be added to the existing deposit. All deposit
updates shall be listed on a new Exhibit B and the new Exhibit B shall be signed by Depositor. Each Exhibit B will be held and maintained separately within the escrow account. An
independent record will be created which will document the activity for each Exhibit B. The processing of all deposit updates shall be in accordance with Sections 1.2 through 1.6 above. All
references in this Agreement to the Deposit Materials shall include the initial Deposit Materials and any updates. 

        1.8    Removal of Deposit Materials.    The Deposit Materials may be removed and/or exchanged only on written
instructions signed by Depositor and Preferred Beneficiary, or as otherwise provided in this Agreement. 

ARTICLE 2—CONFIDENTIALITY AND RECORD KEEPING  

        2.1    Confidentiality.    DSI shall maintain the Deposit Materials in a secure, environmentally safe, locked facility
that is accessible only to authorized representatives of DSI. DSI shall have the obligation to reasonably protect the confidentiality of the Deposit Materials. Except as provided in this Agreement,
DSI shall not disclose, transfer, make available, or use the Deposit Materials. DSI shall not disclose the content of this Agreement to any third party. If DSI receives a subpoena or any other order
from a court or other judicial tribunal pertaining to the disclosure or release of the Deposit Materials, DSI will immediately notify the parties to this Agreement unless prohibited by law. It shall
be the responsibility of Depositor and/or Preferred Beneficiary to challenge any such order; provided, however, that DSI does not waive its rights to present its position with respect to any such
order. DSI will not be required to disobey any order from a court or other judicial tribunal. (See Section 7.5 below for notices of requested orders.) 

        2.2    Status Reports.    DSI will issue to Depositor and Preferred Beneficiary a report profiling the account history
at least semi-annually. DSI may provide copies of the account history pertaining to this Agreement upon the request of any party to this Agreement. 

40

 

        2.3    Audit Rights.    During the term of this Agreement, Depositor and Preferred Beneficiary shall each have the
right to inspect the written records of DSI pertaining to this Agreement. Any inspection shall be held during normal business hours and following reasonable prior notice. 

ARTICLE 3—GRANT OF RIGHTS TO DSI  

        3.1    Title to Media.    Depositor hereby transfers to DSI the title to the media upon which the proprietary
technology and materials are written or stored. However, this transfer does not include the ownership of the proprietary technology and materials contained on the media such as any copyright,
trademark, trade secret, patent or other intellectual property rights. 

        3.2    Right to Make Copies.    DSI shall have the right to make copies of the Deposit Materials as reasonably
necessary to perform this Agreement. DSI shall copy all copyright, nondisclosure, and other proprietary notices and titles contained on the Deposit Materials onto any copies made by DSI. Any copies so
made shall be accorded the same treatment as the originals pursuant to this Agreement. With all Deposit Materials submitted to DSI, Depositor shall provide any and all instructions as may be necessary
to duplicate the Deposit Materials including but not limited to the hardware and/or software needed. 

        3.3    Right to Transfer Upon Release.    Depositor hereby grants to DSI the right to transfer Deposit Materials to
Preferred Beneficiary upon any release of the Deposit Materials for use by Preferred Beneficiary in accordance with Section 4.5. Except upon such a release or as otherwise provided in this
Agreement, DSI shall not transfer the Deposit Materials. 

ARTICLE 4—RELEASE OF DEPOSIT

        4.1    Release Conditions.    As used in this Agreement, "Release Conditions" shall mean the existence of any one or
more of the following circumstances, uncorrected for more than thirty (30) days: 

        a.    Depositor's
failure to carry out obligations imposed on it, as are more fully described in Section 4.8.b.3 of the Contribution Agreement; 

        b.    Entry
of an order for relief for Depositor under Title 11 of the United States Code; 

        c.    The
making by Depositor of a general assignment for the benefit of creditors; 

        d.    The
appointment of a general receiver or trustee in bankruptcy of Depositor's business or property; 

        e.    Action
by Depositor under any state insolvency or similar law for the purpose of its bankruptcy, reorganization or liquidation; or 

        f.      Depositor's
failure to continue to do business in the ordinary course. 

        4.2    Filing for Release.    If Preferred Beneficiary believes in good faith that a Release Condition has occurred,
Preferred Beneficiary may provide to DSI written notice of the occurrence of the Release Condition and a request for the release of the Deposit Materials. Upon receipt of such notice, DSI shall
provide a copy of the notice to Depositor by commercial express mail. 

        4.3    Contrary Instructions.    From the date DSI mails the notice requesting release of the Deposit Materials,
Depositor shall have fifteen (15) calendar days to deliver to DSI contrary instructions ("Contrary Instructions"). Contrary Instructions shall mean the written representation by Depositor that
a Release
Condition has not occurred or has been cured. Upon receipt of Contrary Instructions, DSI shall send a copy to Preferred Beneficiary by commercial express mail. Additionally, DSI shall notify both
Depositor and Preferred Beneficiary that there is a dispute to be resolved pursuant to Section 7.3 of this Agreement. Subject to Section 5.2 of this Agreement, DSI will continue to store
the 

41

 

Deposit Materials without release pending (a) joint instructions from Depositor and Preferred Beneficiary; (b) dispute resolution pursuant to Section 7.3; or (c) order of
a court of competent jurisdiction 

        4.4    Release of Deposit.    If DSI does not receive Contrary Instructions from the Depositor, DSI is authorized to
release the Deposit Materials to the Preferred Beneficiary or, if more than one beneficiary is registered to the deposit, to release a copy of the Deposit Materials to the Preferred Beneficiary.
However, DSI is entitled to receive any fees due DSI before making the release. Any copying expense in excess of $300 will be chargeable to Preferred Beneficiary. This Agreement will terminate upon
the release of the original and all copies of the Deposit Materials held by DSI. 

        4.5    Right to Use Following Release.    Unless otherwise provided in the Contribution Agreement, upon release of the
Deposit Materials in accordance with this Article 4, Preferred Beneficiary shall have the right to use the Deposit Materials for the sole purpose of continuing the benefits afforded to
Preferred Beneficiary by the Contribution Agreement. Preferred Beneficiary shall be obligated to maintain the confidentiality of the released Deposit Materials. 

ARTICLE 5—TERM AND TERMINATION

        5.1    Term of Agreement.    The initial term of this Agreement is for a period of one year. Thereafter, this
Agreement shall automatically renew from year-to-year unless (a) Depositor and Preferred Beneficiary jointly instruct DSI in writing that the Agreement is terminated; or
(b) DSI instructs Depositor and Preferred Beneficiary in writing that the Agreement is terminated for nonpayment in accordance with Section 5.2 or by resignation in accordance with
Section 5.3. If the Deposit Materials are subject to another escrow agreement with DSI, DSI reserves the right, after the initial one year term, to adjust the anniversary date of this Agreement
to match the then prevailing anniversary date of such other escrow arrangements. 

        5.2    Termination for Nonpayment.    In the event of the nonpayment of fees owed to DSI, DSI shall provide written
notice of delinquency to all parties to this Agreement. Any party to this Agreement shall have the right to make the payment to DSI to cure the default. If the past due payment is not received in full
by DSI within one month of the date of such notice, then DSI shall have the right to terminate this Agreement at any time thereafter. DSI shall have no obligation to take any action under this
Agreement so long as any payment due to DSI remains unpaid. 

        5.3    Termination By Resignation.    DSI reserves the right to terminate this Agreement, for any reason, by providing
Depositor and Preferred Beneficiary with 60-days written notice of its intent to terminate this Agreement. Within the 60-day period, the Depositor and Preferred Beneficiary may
provide DSI with joint written instructions authorizing DSI to forward the Deposit Materials to another escrow company and/or agent or other designated recipient. If DSI does not receive said joint
written instructions within 60 days of the date of DSI's written termination notice, then DSI shall destroy, return or otherwise deliver the Deposit Materials in accordance with
Section 5.4. 

        5.4    Disposition of Deposit Materials Upon Termination.    Subject to the foregoing termination provisions, and upon
termination of this Agreement, DSI shall destroy, return, or otherwise deliver the Deposit Materials in accordance with instructions. If there are no instructions, DSI may, at its sole discretion,
destroy the Deposit Materials or return them to Depositor. DSI shall have no obligation to destroy or return the Deposit Materials if the Deposit Materials are subject to another escrow agreement with
DSI or have been released to the Preferred Beneficiary in accordance with Section 4.4. 

        5.5    Survival of Terms Following Termination.    Upon termination of this Agreement, the following provisions of
this Agreement shall survive: 

        a.    Depositor's
Representations (Section 1.5); 

42

 

        b.    The
obligations of confidentiality with respect to the Deposit Materials; 

        c.    The
rights granted in the sections entitled Right to Transfer Upon Release (Section 3.3) and Right to Use Following Release (Section 4.5), if a release of
the Deposit Materials has occurred prior to termination; 

        d.    The
obligation to pay DSI any fees and expenses due; 

        e.    The
provisions of Article 7; and 

        f.      Any
provisions in this Agreement that specifically state they survive the termination of this Agreement. 

ARTICLE 6—DSI'S FEES

        6.1    Fee Schedule.    DSI is entitled to be paid its standard fees and expenses applicable to the services provided.
Unless otherwise stated in this Agreement or agreed in a writing signed by DSI, Preferred Beneficiary will pay DSI's fees. DSI shall notify in writing the party responsible for payment of DSI's fees
at least sixty (60) days prior to any increase in fees. For any service not listed on DSI's standard fee schedule, DSI will provide a quote prior to rendering the service, if requested. 

        6.2    Payment Terms.    DSI shall not be required to perform any service unless the payment for such service and any
outstanding balances owed to DSI are paid in full. Fees are due upon receipt of a signed contract or receipt of the Deposit Materials whichever is earliest. If invoiced fees are not paid, DSI may
terminate this Agreement in accordance with Section 5.2. 

ARTICLE 7—LIABILITY AND DISPUTES

        7.1    Right to Rely on Instructions.    DSI may act in reliance upon any instruction, instrument, or signature
reasonably believed by DSI to be genuine. DSI may assume that any officer of a party to this Agreement who gives any written notice, request, or instruction has the authority to do so. DSI shall not
be required to inquire into the truth or evaluate the merit of any statement or representation contained in any notice or document. DSI shall not be responsible for failure to act as a result of
causes beyond the reasonable control of DSI. 

        7.2    Indemnification.    Depositor and Preferred Beneficiary each agree to indemnify, defend and hold harmless DSI
from any and all claims, actions, damages, arbitration fees and expenses, costs, attorney's fees and other liabilities ("Liabilities") incurred by DSI relating in any way to this escrow arrangement
unless such Liabilities were caused by the negligence or willful misconduct of DSI. 

        7.3    Dispute Resolution.    Any dispute relating to or arising from this Agreement shall be resolved by arbitration
using a panel of three (3) arbitrators under the Commercial Rules of the American Arbitration Association. Three arbitrators shall be selected. The Depositor and Preferred Beneficiary shall
each select one arbitrator and the two chosen arbitrators shall select the third arbitrator, or failing agreement on the selection of the third arbitrator, the American Arbitration Association shall
select the third arbitrator. However, if DSI is a party to the arbitration, DSI shall select the third arbitrator. Unless otherwise agreed by Depositor and Preferred Beneficiary, arbitration will take
place in San Diego, California, USA. Any court having jurisdiction over the matter may enter judgment on the award of the arbitrators. Service of a petition to confirm the arbitration award may be
made by First
Class mail or by commercial express mail, to the attorney for the party or, if unrepresented, to the party at the last known business address. 

        7.4    Controlling Law.    This Agreement is to be governed and construed in accordance with the laws of Nevada,
without regard to its conflict of law provisions. 

43

 

        7.5    Notice of Requested Order.    If any party intends to obtain an order from the arbitrator or any court of
competent jurisdiction that may direct DSI to take, or refrain from taking any action, that party shall: 

        a.    Give
DSI at least two business days prior notice of the hearing; 

        b.    Include
in any such order that, as a precondition to DSI's obligation, DSI be paid in full for any past due fees and be paid for the reasonable value of the services to
be rendered pursuant to such order; and 

        c.    Ensure
that DSI not be required to deliver the original (as opposed to a copy) of the Deposit Materials if DSI may need to retain the original in its possession to
fulfill any of its other escrow duties. 

ARTICLE 8—GENERAL PROVISIONS

        8.1    Entire Agreement.    This Agreement, which includes Exhibits described herein, embodies the entire
understanding among the parties with respect to its subject matter and supersedes all previous communications, representations or understandings, either oral or written. DSI is not a party to the
Contribution Agreement between Depositor and Preferred Beneficiary and has no knowledge of any of the terms or provisions of any such Contribution Agreement. DSI's only obligations to Depositor or
Preferred Beneficiary are as set forth in this Agreement. No amendment or modification of this Agreement shall be valid or binding unless signed by all the parties hereto, except that Exhibit A
need not be signed by DSI, Exhibit B need not be signed by Preferred Beneficiary and Exhibit C need not be signed. 

        8.2    Notices.    All notices, invoices, payments, deposits and other documents and communications shall be given to
the parties at the addresses specified in the attached Exhibit C. It shall be the responsibility of the parties to notify each other as provided in this Section in the event of a change of
address. The parties shall have the right to rely on the last known address of the other parties. Unless otherwise provided in this Agreement, all documents and communications may be delivered by
First Class mail. 

        8.3    Severability.    In the event any provision of this Agreement is found to be invalid, voidable or
unenforceable, the parties agree that unless it materially affects the entire intent and purpose of this Agreement, such invalidity, voidability or unenforceability shall affect neither the validity
of this Agreement nor the remaining provisions herein, and the provision in question shall be deemed to be replaced with a valid and enforceable provision most closely reflecting the intent and
purpose of the original provision. 

        8.4    Successors.    This Agreement shall be binding upon and shall inure to the benefit of the successors and
assigns of the parties. However, DSI shall have no obligation in performing this Agreement to recognize any successor or assign of Depositor or Preferred Beneficiary unless DSI receives clear,
authoritative and conclusive written evidence of the change of parties. 

        8.5    Regulations.    Depositor and Preferred Beneficiary are responsible for and warrant compliance with all
applicable laws, rules and regulations, including but not limited to customs laws, import, export, 

44

 

and re-export laws and government regulations of any country from or to which the Deposit Materials may be delivered in accordance with the provisions of this Agreement. 

	SSPG	 	DSI Technology Escrow Services, Inc.
	

By:	
 	

 	
 	

By:	
 	

 
	 	 	
	 	 	 	

	Name:	 	 	 	Name:	 	 
	 	 	
	 	 	 	

	Title:	 	 	 	Title:	 	 
	 	 	
	 	 	 	

	Date:	 	 	 	Date:	 	 
	 	 	
	 	 	 	

	

Joint Entity	
 	

 	
 	

 
	

 	
 	

 	
 	

 	
 	

 
	By:	 	 	 	 	 	 
	 	 	
	 	 	 	 
	Name:	 	 	 	 	 	 
	 	 	
	 	 	 	 
	Title:	 	 	 	 	 	 
	 	 	
	 	 	 	 
	Date:	 	 	 	 	 	 
	 	 	
	 	 	 	 

45

   ESCROW—EXHIBIT A  

 MATERIALS TO BE DEPOSITED  

Account Number                                

Depositor
represents to Preferred Beneficiary that Deposit Materials delivered to DSI shall consist of the following: 

	

SSP	

 	
 	

Joint Entity
	Depositor	 	Preferred Beneficiary
	

By:	

	
 	

By:	

	

Name:	

	
 	

Name:	

	

Title:	

	
 	

Title:	

	

Date:	

	
 	

Date:	

46

   ESCROW—EXHIBIT B  

 DESCRIPTION OF DEPOSIT MATERIALS  

Depositor
Company Name: SSP 

Account
Number:                                      

Product
Name:                                        
         Version:                        

(Product Name will appear as the Exhibit B Name on Account History report) 

DEPOSIT
MATERIAL DESCRIPTION:

Quantity Media Type & Size Label Description of Each Separate Item 

            
Disk 3.5" or             

             DAT tape              mm

             CD-ROM

             Data cartridge tape             

             TK 70 or              tape

             Magnetic tape             

             Documentation

             Other                         

PRODUCT
DESCRIPTION

Environment: 

DEPOSIT
MATERIAL INFORMATION: 

Is
the media or are any of the files encrypted? Yes / No If yes, please include any passwords and the decryption tools.

Encryption tool name                                     

        Version:
             

Hardware
required: 

                                        
                                          
                                         
                     
 

Software
required: 

                                        
                                          
                                         
                     

Other
required information: 

                                        
                                          
                                         
                     

I
certify for Depositor that the above described Deposit Materials have been transmitted to DSI: 

Signature:
                                    

Print Name:                                     

Date:                                     

DSI
has inspected and accepted the above materials (any exceptions are noted above): 

Signature:
                                    

Print Name:                                     

Date Accepted:                                     

Exhibit B#:
                                    

Send
materials to: DSI, 9265 Sky Park Ct., Suite 202, San Diego, CA 92123 (858) 499-1600 

47

   ESCROW—EXHIBIT C  

 DESIGNATED CONTACT  

Account Number:                                

	

Notices and communications

should be addressed to Depositor:	
 	

Invoices should be addressed to

Depositor at:
	

Company Name: SSP	
 	

 	

 	

 
	

Address:	

	
 	

Address:	

	

Address:	

	
 	

Address:	

	

Address:	

	
 	

Address:	

	

Designated Contact:	

	
 	

Contact:	

	

Tel:	

	
 	

Tel:	

	

Fax:	

	
 	

P.O.# if req'rd:	

	

Email:	

	
 	

Email:	

	

Verification Contact:	
 	

 	

 	

 
	

Notices and communications to

Preferred Beneficiary should

be addressed to:	
 	

Invoices to Preferred Beneficiary

should be addressed to:
	

Company Name: Joint Entity	
 	

 	

 	

 
	

Address:	

	
 	

Address:	

	

Address:	

	
 	

Address:	

	

Address:	

	
 	

Address:	

	

Designated Contact:	

	
 	

Contact:	

	

Tel:	

	
 	

Tel:	

	

Fax:	

	
 	

P.O.# if req'rd:	

	

Email:	

	
 	

Email:	

48

 

        Requests
from Depositor or Preferred Beneficiary to change the designated contact should be given in writing by the designated contact or an authorized employee of Depositor or Preferred
Beneficiary. 

	Contracts, Deposit Materials and

notices to DSI should be addressed:	 	Invoice inquiries and fee

remittances addressed to:
	

DSI Technology Escrow Services, Inc.	
 	

DSI Technology Escrow

Services, Inc.
	Contract Administration	 	Accounts Receivable
	Suite 202	 	P.O. Box 45156
	9265 Sky Park Court	 	San Francisco, CA 94145-0156
	San Diego, CA 92123	 	 
	Tel: (858)499-1600	 	Tel: (858) 499-1636
	Fax: (858)694-1919	 	Fax: (858) 499-1637
	Email: ca@dsiescrow.com	 	 
	

Date:	

    
	
 	

 

49

  

 
 

EXHIBIT K
  Sample Venetian Interactive Joint Venture Contributions & Distributions    

	SSPG $2 million cash +

Technology License +	 	Venetian

$1 million cash +

Brand License
	 	GET Fees

(Paid by Venetian Interactive from SSPG's share of Net Joint Entity Revenue)	 	 

The
following example is provided only as a general illustration. 

	Year 1 operations	 	 
	

SSP Cash Investment	
 	

2,000,000
	Venetian Cash Investment	 	1,000,000
	 	 	

	Total	 	3,000,000
	Year 1 Projected Revenue	 	 
	Gross Gaming Hold *	 	5,411,438
	 	 	

	Tax (est 18%)	 	974,059
	Net Gaming Hold	 	4,437,379
	

Net Gaming Hold	
 	

4,437,379
	JV Other eCommerce Rev *	 	8,550,000
	JV Year 1 Op. Expenses *	 	10,490,719
	 	 	

	Year 1 JV Net Operating Income	 	2,496,660
	

Distribution of Net Operating Income (before NOI > D&I Costs) *	
 	

 
	Venetian (33.3%)	 	743,097
	SSP (66.7%)	 	1,488,425
	

Distribution of Net Operating Income after it exceeds D&I costs but is less than D&I + 2 million	
 	

 
	Revenue over D&I Costs	 	265,138
	Venetian (50%)	 	132,569
	SSP (50%)	 	132,569
	

Total Year 1 Distributions	
 	

 
	Venetian	 	875,666
	GET License	 	221,869
	SSP	 	1,399,125
	

balance check year 1 (should = NOI)	
 	

2,496,660
	

balance check year 2 (should = NOI)	
 	

15,109,636

50

 

	

Year 2 operations	
 	

 
	

Year 2 Projected Revenue	
 	

 
	Gross Gaming Hold *	 	11,962,125
	 	 	

	Tax	 	2,153,183
	Net Gaming Hold	 	9,808,943
	

Net Gaming Hold	
 	

9,808,943
	JV Other eCommerce Rev *	 	15,480,000
	JV Year 2 Op. Expenses *	 	10,179,307
	 	 	

	Year 2 JV Net Operating Income	 	15,109,636
	

Distribution of Net Operating Income	
 	

 
	Venetian (50%)	 	867,431
	SSP (50%)	 	867,431
	

Between two and four million	
 	

 
	Venetian (60%)	 	1,200,000
	SSP (40%)	 	800,000
	

In Excess of four Million	
 	

 
	Venetian (80%)	 	9,099,819
	SSP (20%)	 	2,274,955
	

GET License sub 1.5 million (5%)	
 	

75,000
	GET License > 1.5 million (2.5%)	 	207,724
	 	 	

	Total Get License	 	282,724
	

Actual Distributions	
 	

 
	Venetian	 	11,167,250
	SSP	 	3,659,662
	GET License	 	282,724

	*
	Estimated
numbers are from the budget. Year 1 Gross Gaming hold is from budget cell W7 

Year
1 eCommerce Rev is from budget cell W19. Year 1 Operating Expenses are from budget cell W49. 

Design
and Implementation (D&I) costs are from budget cell J39. 

Year
2 numbers are from the same rows as their corresponding values in year one, however they are from column AJ. 

51

QuickLinks

CONTRIBUTION AGREEMENT

EXHIBIT A ESTIMATED BUDGET

EXHIBIT B SSPG SOFTWARE

EXHIBIT C VENETIAN MARKS

EXHIBIT D ILLEGAL LOCALITIES

EXHIBIT E INITIAL PROCEURES TO PREVENT TAKING BETS FROM THOSE OTHER THAN APPROPRIATE VISTORS US Originated Transaction Blocking

EXHIBIT F THIRD PARTY SOFTWARE

EXHIBIT G HARDWARE REQUIREMENTS

EXHIBIT H TRAINING SUPPORT SERVICES

EXHIBIT I SSP HARDWARE

EXHIBIT J. PREFERRED ESCROW AGREEMENT

EXHIBIT K Sample Venetian Interactive Joint Venture Contributions & DistributionsQuickLinks
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Exhibit 10.39    
  

THIS
WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY APPLICABLE STATE SECURITIES LAWS. NOTWITHSTANDING ANY OTHER PROVISIONS CONTAINED HEREIN, NO TRANSFER,
HYPOTHECATION OR OTHER DISPOSITION OF THIS WARRANT IN FAVOR OF ANY PERSON OTHER THAN THE HOLDER HEREOF, SHALL BE VALID OR EFFECTIVE UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR
UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. 

Warrant  

	No.

Holder: William Blair & Company, L.L.C.	 	Warrant to Purchase

110,000 Shares of Common Stock

(subject to adjustment)

SSP SOLUTIONS, INC.  

 Incorporated Under the Laws of the State of Delaware  

        THIS CERTIFIES THAT, for value received, the above named holder or its assigns is entitled to subscribe for and purchase during the period
specified in this Warrant the number of shares of Warrant Stock set forth above (subject to adjustment as hereinafter provided) of fully paid and non-assessable shares of Common of SSP
SOLUTIONS, INC., a Delaware corporation (the "Corporation"), at a per share price equal to the Warrant Price, subject, however, to the provisions and upon the terms and conditions hereinafter
set forth. Capitalized terms not otherwise defined shall have the meanings set forth in Section 13 hereof. 

        1)    Duration.    The right to subscribe for and purchase shares of Common represented hereby shall expire at
5:00 P.M. Central Standard Time, on April 16, 2005. 

        2)    Method of Exercise, Payment; Issuance of New Warrant.    The Holder hereof may exercise this Warrant, in whole
or in part, by the surrender of this Warrant (with the subscription form attached hereto duly executed) at the principal office of the Corporation. The Warrant may be exercised (a) by the
payment to the Corporation of the then applicable Warrant Price for the shares being purchased upon such exercise by certified or official bank check; or (b) through a "Cashless Exercise" by
which the Holder receives (upon surrender of this Warrant) shares of Common equal to the difference between (i) the then Fair Value of the shares underlying the portion of the Warrant exercised
and (ii) $1.00 multiplied by the shares underlying the portion of the Warrant exercised, divided by (iii) the then Fair Value of the shares underlying the portion of the Warrant
exercised. As an example, should the Holder exercise the entire Warrant at a time when the per share Fair Value of the Common was $3.00 per share, the Holder would receive, upon exercise, 110,000
shares multiplied by ($3.00 Fair Value minus $1.00 exercise price) divided by $3.00 Fair Value equals 73,333 shares of Common. In the event of any exercise of the rights represented by this Warrant,
(i) stock certificates for the shares of Common so purchased shall be delivered to the Holder hereof, and unless this Warrant has expired, a new Warrant representing the number of shares, if
any, with respect to which this Warrant shall not then have been exercised shall also be delivered to the Holder hereof and shall be dated the date of this Warrant, and (ii) stock certificates
for the shares of Common so purchased shall be dated the date of exercise of this Warrant, and the Holder exercising this Warrant shall be deemed for all purposes to be the Holder of the shares of
Common so purchased as of the date of such exercise. Such stock certificates (and new Warrant, if applicable) shall be delivered to the Holder hereof within a reasonable time, not exceeding five
business days, after the rights represented by this Warrant shall have been so 

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exercised. Each stock certificate so delivered shall be in such denominations as may be requested by the Holder hereof and shall be registered in the name of said Holder or such other name (upon
compliance with the transfer requirements hereinafter set forth) as shall be designated by said Holder.
The Corporation shall pay all taxes and other expenses and charges payable in connection, with the preparation, execution and delivery of stock certificates (and new Warrants, if applicable) pursuant
to this paragraph except that, in case such stock certificates shall be registered in a name or names other than the Holder of this Warrant or its nominee, funds sufficient to pay all stock transfer
taxes which shall be payable in connection with the execution and delivery of such stock certificates shall be paid by the Holder hereof to the Corporation at the time of the delivery of such stock
certificates by the Corporation as mentioned above. 

        3)    Transfer of Securities.    

        (a)    Restrictions on Transfer.    This Warrant and the Warrant Stock issuable upon exercise thereof may not be
transferred, in whole or in part, except by means of (i) an Affiliate Transfer or (ii) a Permitted Transfer. In such case, this Warrant and the Warrant Stock issuable upon exercise
thereof may be transferred on the books of the Corporation by the Holder hereof in person or by duly authorized attorney, upon surrender at the principal office of the Corporation, properly endorsed
and upon payment of any necessary transfer tax or other governmental charge imposed upon such transfer. This Warrant is exchangeable at the principal office of the Corporation for Warrants for the
purchase of the same aggregate number of shares of Common, each new Warrant to represent the right to purchase such number of shares of Common as the Holder hereof shall designate at the time of such
exchange. All Warrants issued on transfers or exchanges shall be dated the date hereof and shall be identical with this Warrant except as to the number of shares of Common issuable pursuant hereto. 

        (b)    Restrictive Legend.    So long as this Warrant or any Warrant Stock is not freely transferable, the
certificates evidencing this Warrant or such Warrant Stock shall be stamped or otherwise inscribed with an appropriate legend to such effect, provided that whenever the restrictions imposed by this
Section 3 shall terminate, as herein above provided, the Holder of any Warrant then outstanding as to which such restrictions shall have terminated shall be entitled to receive from the
Corporation, without expense to such Holder, one or more new certificates for such Securities not bearing the restrictive legend set forth in Section 3 hereof. 

        4)    Compliance with Rule 144 and Rule 144A.    The Corporation will use its best efforts to comply
with the reporting requirements of Section 13 and 15(d) of the Exchange Act and shall use its best efforts to comply with all other public information reporting requirements of the Securities
and Exchange Commission (including reporting requirements which serve as a condition to utilization of Rule 144 applicable to it from time to time in effect and relating to the availability of
an exemption from the registration requirements of the Warrant Stock). At the written request of any Holder of Warrant Stock who proposes to sell any of such Warrant Stock in compliance with
Rule 144 or other applicable exemption from the registration requirements of the Securities Act, the Corporation shall furnish to such Holder, within ten days after receipt of such request, a
written statement as to whether or not the Corporation is in compliance with the filing requirements of the Securities and Exchange Commission as set forth in such Rule. For purposes of effecting
compliance with Rule 144A or other applicable exemption from the registration requirements of the Securities Act, in connection with any resales of any Warrant Stock that hereafter may be
effected pursuant to the provisions of Rule 144A, any Holder of any such Warrant Stock desiring to effect such resale and each prospective institutional purchaser of such shares designated by
such Holder shall have the right, at any time the Corporation is not subject to Section 13 or 15(d) of the Securities and Exchange Act, to obtain from the Corporation, upon the
written request of such Holder and at the Corporation's expense the documents specified in Section (d)(4)(i) of Rule 144A or other applicable exemption from the registration
requirements of the Securities Act. 

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        5)    Adjustment of Warrant Price and Number of Shares.    The number of shares of Common issuable upon exercise of
this Warrant and the Warrant Price shall be subject to adjustment from time to time upon the happening of certain events, as follows, provided, however,
in no event shall the Warrant Price be reduced to less than $0.01. 

        (a)    Reclassification Consolidation or Merger.    In case of any reclassification or change of outstanding Common
issuable upon exercise of this Warrant (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination), or in
case of any consolidation or merger of the Corporation with or into another corporation (other than a merger with another corporation in which the Corporation is the surviving corporation and which
does not result in any reclassification or change—other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or
combination—of outstanding Common issuable upon such exercise) or the acquisition of 662/3% of the then outstanding shares of Common (on a fully diluted basis) by any Person
or group (as defined pursuant to Section 13 under the Securities Exchange Act of 1934, as amended) the rights of the Holders of this Warrant shall be adjusted in the manner described below: 

        (i)    If
the Corporation is the surviving corporation, this Warrant shall, without payment of additional consideration therefor, be deemed modified so as to provide that upon
exercise thereof the Holder of this Warrant, upon the exercise thereof, shall procure, in lieu of each share of Common theretofore issuable upon such exercise, the kind and amount of shares of Stock,
other securities, money and Property receivable upon such reclassification, change, consolidation or merger by the holder of each share of Common issuable upon such exercise had exercise of this
Warrant occurred immediately prior to such reclassification, change, consolidation or merger. This Warrant (as adjusted) shall be deemed to provide for further adjustments that shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Section 5. The provisions of this clause (i) shall similarly apply to successive reclassifications, changes,
consolidations and mergers. 

        (ii)  If
the Corporation is not the surviving corporation, the surviving corporation shall, without payment of any additional consideration therefore, issue a new Warrant,
providing that upon exercise thereof, the Holder thereof shall procure in lieu of each share of Common theretofore issuable upon exercise of this Warrant the kind and amount of shares of Stock, other
securities, money and Property receivable upon such reclassification, change, consolidation or merger by the Holder of each share of Common issuable upon exercise of this Warrant had such exercise
occurred immediately prior to such reclassification, change, consolidation or merger. Such new Warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section 5. The provisions of this clause (ii) shall similarly apply to successive reclassifications, changes, consolidations and mergers. 

        (b)    Subdivision or Combination of Shares.    If the Corporation, at any time while any of this Warrant is
outstanding, shall subdivide or combine its Common, the Warrant Price shall be proportionately reduced, in case of subdivision of shares, as of the effective date of such subdivision, or if the
Corporation shall take a record of Holders of its Common for the purpose of a subdividing, as of such record date, whichever is earlier, or shall be proportionately increased, in the case of
combination of shares, as of the effective date of such combination or, if the Corporation shall take a record of Holders of its Common for the purpose of so combining, as of such record date,
whichever is earlier. 

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        (c)    Certain Dividends and Distribution.    If the Corporation at any time while this Warrant is outstanding, 

        (i)    Stock Dividends.    Pay a dividend payable in, effect a split-up of, or make any other distribution
of Common, the Warrant Price shall be adjusted, as of the date the Corporation shall take a record of the Holders of its Common for the purpose of receiving such dividend, stock split or other
distribution (or if no such record is taken, as of the date of such payment or other distribution), to that price determined by multiplying the Warrant Price by a fraction (1) the numerator of
which shall be the total number of shares of Common outstanding immediately prior to such dividend, split-up or distribution and (2) the denominator of which shall be the total
number of shares of Common outstanding immediately after such dividend, split-up of distribution (plus in the event that the Corporation paid cash for fractional shares, the number of
additional shares which would have been outstanding had the Corporation issued fractional shares in connection with said dividend, split-up or distribution), or 

        (ii)    Liquidating Dividends, etc.    Make a distribution of its Property to the Holders of its Common as a dividend
in liquidation or partial liquidation or by way of return of capital or other than as a dividend payable out of funds legally available for dividends under the laws of the State of Delaware, the
Holders of this Warrant shall, upon exercise hereof, be entitled to receive, in addition to the number of shares of Common receivable thereupon, and without payment of any consideration therefor, a
sum equal to the amount of such Property as would have been payable to them as owners of that number of shares of Common of the Corporation receivable upon such exercise, had they been the Holders of
record of such Common or the record date for such distribution, and an appropriate provision therefor shall be made a part of any such distribution. 

        (d)    Other Action Affecting Common.    If after the date hereof the Corporation shall take any action affecting its
Common, other than an action described in any of the foregoing Sections 5(a) through (c), inclusive, which, in the opinion of the Board, would have a materially adverse effect upon the exercise rights
of the Holders of this Warrant, the Warrant Price shall be adjusted in such manner and at such time as the Board may in good faith determine to be equitable in the circumstances. 

        6)    Notice of Adjustments.    Whenever any Warrant Price shall be adjusted pursuant to Section 5 hereof, the
Corporation shall make a certificate signed by its President or a Vice President and by its Treasurer, Assistant Treasurer, Secretary or Assistant Secretary, setting forth in reasonable detail, the
event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated (including a description of the basis on which the Board made any determination
hereunder), and the Warrant Price and the number of shares issuable upon the exercise of the Warrant after giving effect to such adjustment, and shall cause copies of such certificate to be mailed (by
first-class mail, postage prepaid) to the Holder of this Warrant at its address shown on the books of the Corporation. The Corporation shall make such certificate and mail it to each Holder promptly
after each adjustment. 

        7)    Fractional Shares.    No fractional shares of Common shall be issued in connection with any exercise of this
Warrant, but in lieu of such fractional shares, the Corporation shall make a cash payment therefor equal in amount to the product of the applicable fraction multiplied by the Warrant Price then in
effect, to the extent sufficient funds are legally available to make such cash payment on the date of such exercise of this Warrant. 

        8)    Shares To be Fully Paid; Reservation of Shares.    The Corporation covenants and agrees that all Common issued
upon exercise of this Warrant will, upon issuance, be fully paid and non-assessable and free from preemptive rights and all taxes, liens and charges with respect to the issuance thereof.
The 

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Corporation further covenants and agrees that during the period within which the rights represented by this Warrant may be exercised, the Corporation will at all times have authorized, and reserved
for the purpose of issue upon exercise of the subscription rights evidenced by this Warrant, a sufficient number of shares of Common to provide for the exercise of the rights represented by this
Warrant. Furthermore, and without limiting the generality of the foregoing, the Corporation covenants and agrees that it will from time to time take all such actions as may be required to assure that
the par value per share of Common is at all times equal to or less than the effective Warrant Price. 

        9)    Registration.    If (but without any obligation pursuant to this Agreement to do so) the Corporation proposes to
register (including for this purpose, a registration effected by the Corporation for stockholders) any of its stock or other securities under the Securities Act in connection with the public offering
of such securities solely for cash (other than a registration on Form S-8, Form S-4 or any other form that would not permit registration of the Registrable
Securities, the Corporation shall, at such time, promptly give the Holder written notice of such registration at least 20 days prior to filing a registration statement relating to such
registration. Upon the written request of the Holder given within 20 days after mailing of such notice by the Corporation, the Company shall use its best efforts to cause to be registered under
the Securities Act all of the Warrant Stock that the Holder has requested to be registered. 

        (a)    Registration Procedures.    Whenever the Corporation is required to use its best efforts to effect the
registration of any Warrant Stock under the Securities Act, the Corporation will, as expeditiously as
possible (in each case, upon the same terms and conditions the Corporation is otherwise required to effect such registration by the Persons so demanding such registration): 

        (i)    Prepare
and file with the SEC a registration statement with respect to the Securities and to be registered and use its best efforts to cause such registration statement
to become effective, and keep such registration statement effective for a period of up to 120 days or until the distribution contemplated in the Registration Statement has been completed;
provided, however, that (A) such 120 day period shall be extended for a period of time equal to the period the Holder refrains from selling any securities included in such registration
at the request of an underwriter of Common Stock (or other securities) of the Corporation; and (B) in the case of any registration of Securities on Form S-3 which are
intended to be offered on a continuous or delayed basis, such 120 day period shall be extended, if necessary, to keep the registration statement effective until all such Securities are sold or
may immediately be sold under SEC Rule 144 during any 90 day period, provided that Rule 415, or any successor rule under the Securities Act, permits an offering on a continuous or
delayed basis, and provided further that applicable rules under the Securities Act governing the obligation to file a post-effective amendment permit, in lieu of filing a
post-effective amendment which (x) includes any prospectus required by Section 10(a)(3) of the Securities Act or (y) reflects facts or events representing a material
or fundamental change in the information set forth in the registration statement, the incorporation by reference (in the registration statement) of information required to be included in
(x) and (y) above to be contained in periodic reports filed pursuant to Section 13 or 15(d) of the Securities Act, 

        (ii)  Prepare
and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as
may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement, 

        (iii)  furnish
to each Holder of Securities to be included in such Registration Statement such number of copies of such Registration Statement, each amendment and supplement
thereto, the Prospectus included in the Registration Statement (including each preliminary 

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Prospectus), and such other documents, as such Holder may reasonably request in order to facilitate the public sale or other disposition of the Securities owned by such Holder, 

        (iv)  use
every reasonable effort to register or qualify all the Securities covered by such Registration Statement under such other securities or blue sky laws of such
jurisdictions as each Holder shall reasonably request, and do any and all other acts and things which may be necessary under such securities or blue sky laws to enable such Holder to consummate the
public sale or other disposition in such jurisdiction of the Securities owned by such Holder covered by such Registration Statement, provided, however,
that the Corporation shall not be required to (i) qualify to do business as a foreign corporation in any jurisdiction wherein it would not otherwise be required to qualify but for this
subparagraph, (ii) subject itself to taxation in any such jurisdiction, or (iii) consent to general service of process in any such jurisdiction, 

        (v)  notify
each Holder of Securities included on such Registration Statement at any time when a Prospectus relating to the Securities of such Holder covered by such
Registration Statement is required to be delivered under the Securities Act, of the happening of any event as a result of which the Prospectus included in such Registration Statement contains an
untrue statement of a material fact or omits any fact necessary to make the statements therein not misleading, and at the request of any such Seller, prepare a supplement or amendment to such
Prospectus so that, as thereafter delivered to the purchasers of the Securities covered by such Registration Statement, such Prospectus will not contain an untrue statement of a material fact or omit
to state any fact necessary to make the statements therein not misleading, 

        (vi)  cause
all such Securities covered by such Registration Statement to be listed on each securities exchange on which Securities of the same class are then listed, 

        (vii) provide
a transfer agent and registrar for Common not later than the effective date of such Registration Statement, 

        (viii)  enter
into such customary agreements (including an underwriting agreement in customary form) and take all such other actions as the Holders of at least
a majority of the Securities included in such Registration Statement pursuant to the provisions of this Agreement or underwriters, if any, reasonably request in order to expedite or facilitate the
disposition of such Securities (including, without limitation, effecting a stock split or a combination of shares), and 

        (ix)  make
available for inspection by any Holder of Securities included in such Registration Statement, any underwriter participating in any disposition pursuant to such
Registration Statement, and any attorney, accountant or other agent retained by any such Holder who is the Holder of at least 5% of the Securities included in such registration or underwriter, all
financial and other records, pertinent corporate documents and properties of the Corporation, and cause the Corporation's officers, directors and employees to supply all information reasonably
requested by any such Holder of Securities included in such Registration Statement, underwriter, attorney, accountant or agent in connection with such Registration Statement, and 

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        10)    Registration Expenses.    To the fullest extent allocable under applicable state securities and blue sky laws,
all expenses incurred in effecting a registration provided for in Section 9 hereof, including, without limitation, all registration and filing fees, printing expense, fees and disbursements of
counsel for the Corporation, underwriting expenses other than underwriting discounts and commissions, expenses of any audits incident to or required by any such registration and expenses of complying
with the securities or blue sky laws of any jurisdictions pursuant to Section 9 hereof, shall be borne and paid by the Corporation. The fees and disbursements of any one or more law firms who
shall be serving as counsel or the Holders of the Warrant Stock shall be borne solely by the Holders of the Warrant Stock. 

        11)    Indemnification.    

        (a)    By the Corporation.    In the event of any registration of any of its Securities under the Securities Act as
effected pursuant to this Warrant, the Corporation, to the extent permitted by law, shall indemnify and hold harmless the Holders of all Warrant Stock included in such Registration Statement, each
underwriter (as defined in the Securities Act), each other Person who participates in the offering of such Securities, and each other Person, if any, who controls (within the meaning of the Securities
Act) such Holder of Warrant Stock, underwriter or participating Person, against any losses, claims, damages or liabilities, joint or several, to which such Holder, underwriter, participating Person,
or controlling Person may become subject under the Securities Act or any other statute or at common law, in so far as such losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon (1) any alleged untrue statement of any material fact contained, on the effective date thereof, in any Registration Statement under which such Securities were
registered under the Securities Act, any preliminary Prospectus or final Prospectus contained therein, or any summary Prospectus issued in connection
with any Securities being registered, or any amendment or supplement thereto, or (2) any alleged omission to state in any such document a material fact required to be stated therein or
necessary to make the statements therein not misleading, and shall reimburse each such Seller, or any such underwriter, participating Person or controlling Person for any legal or other expenses
reasonably incurred by such Holder, underwriter, participating Person or controlling Person in connection with investigating or defending any such loss, damage, liability or action,  provided, however,
that the Corporation shall not be liable to any Holder, or any such underwriter, participating Person, or controlling Person in any
such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any alleged untrue statement or alleged omission made in such Registration Statement, preliminary
Prospectus, summary Prospectus, Prospectus, or amendment or supplement thereto in reliance upon and in conformity with written information furnished to the Corporation by such Holder, specifically for
use therein; and, provided, further that the foregoing indemnity agreement is subject to the condition that, insofar as it relates to any untrue
statement, alleged untrue statement, omission or alleged omission made in any preliminary Prospectus, final Prospectus, supplement or amendment, but eliminated or remedied in the final Prospectus or
subsequent supplements and amendments, as the case may be, such indemnity agreement shall not inure to the benefit of the indemnified Person if the Person asserting any loss, claim, damage or
liability if such Person had an obligation to deliver a copy of the materials eliminating or remedying the untrue statement or omission to the persons who purchased the securities and failed to do so. 

        (b)    By Holders of Warrant Stock.    Each Holder of Warrant Stock, by acceptance thereof, severally and not jointly,
indemnifies and holds harmless each other Holder of Warrant Stock and/or the Corporation, its directors and officers, each underwriter (as defined in the Securities Act), and each other Person, if
any, who controls (within the meaning of the Securities Act) the Corporation, any underwriter or any Holder, against any losses, claims, damages, or liabilities, joint or several, to which any such
other
Holder, the Corporation, any such director or officer, any such underwriter, or any such Person may become subject under the Securities Act or any other statute 

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or at common law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any alleged untrue statement of any material fact
contained, on the effective date thereof, in any Registration Statement under which Warrant Stock is registered under the Securities Act at the request of such Holder, any preliminary Prospectus or
final Prospectus contained therein, or any summary Prospectus issued in connection with any such Securities being registered, or any amendment or supplement thereto, or (ii) any alleged
omission to state in any such document a material fact required to be stated therein or necessary to make the statements therein not misleading, in either case to the extent, and only to the extent,
that such alleged untrue statement or alleged omission was made in such Registration Statement, preliminary Prospectus, summary Prospectus, Prospectus, amendment or supplement in reliance upon and in
conformity with written information furnished to the Corporation by such Holder specifically for use therein, and then only to the extent that such alleged untrue statements or alleged omissions by
such Holder were not based on the authority of an expert as to which such Holder had no reasonable ground to believe, and did not believe, that the statements made on the authority of such expert were
untrue or that there was an omission to state a material fact. Notwithstanding the foregoing provisions of this Section 11(b), no Holder shall be required to pay under such provisions an amount
in excess of the proceeds received by such Holder in payment for the Securities sold by such Holder pursuant to the Registration Statement. 

        Indemnification
similar to that specified in Sections 11(a) and (b) shall be given by the Corporation and each Holder of Warrant Stock (with such modifications as shall be
appropriate) covered by any registration or other qualification of Securities under any federal or state securities law or regulation other than the Securities Act with respect to any such
registration or other qualification effected pursuant to this Agreement. 

        (c)    Procedure.    Any Person which proposes to assert the right to be indemnified under Sections 11(a),
(b) or (c) shall, promptly after receipt of notice of commencement of any action, suit or proceeding against such Person in respect of which a claim is to be made against an indemnifying
Person under such Sections 11(a), (b) or (c), notify each such indemnifying Person of the commencement of such action, suit or proceeding, enclosing a copy of all papers served. The
indemnifying Person shall have the right to investigate and defend any such loss, claim, damage, liability or action and to employ separate counsel in any such, action and to control the defense
thereof. The Person claiming indemnification shall have the right to employ separate counsel in any such action and to control the defense thereof, but the fees and expenses of such counsel shall not
be at the expense of the Person against whom indemnification is sought; provided, however, that notwithstanding the foregoing, in any case when
indemnification is sought against the Corporation and (i) the Person seeking indemnification has been advised by counsel that its defenses may be different from those of the Corporation or
(ii) the indemnifying person has not proceeded in a timely manner to effect such defense, then the reasonable fees and expenses of counsel for such Person shall be paid by the Corporation and
the indemnified Person shall have the right to control the defense of such action, suit or proceeding. In no event shall a Person against whom indemnification is sought under Sections 11(a),
(b) or (c) be obligated to indemnify any Person for any settlement of any claim or action effected without the indemnifying Person's or Corporation's consent, as the case may be. 

        (d)    Survival.    The indemnification Provided for under this Section 11 will remain in full force and effect
regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and will survive the transfer of Securities. 

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        10)    Participation in Underwritten Registrations.    

        (a)    Certain Agreements.    No Person may participate in any underwritten registration hereunder unless such Person
(i) agrees to sell such Person's Securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and
(ii) completes and executes all questionnaires, powers of attorney indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements;  provided, however that no Holder of Warrant Stock shall be required to make any representations or warranties or to provide information in the
Registration Statement relating to such registration except, in either case, with respect to itself and its intended method of disposition of Warrant Stock. 

        (b)    Cutbacks.    In connection with any offering involving an underwriting of shares of the Corporation's capital
stock, the Corporation shall only be required under this Section 9 to include such quality of the Holder's Warrant Stock in such underwriting as
the underwriters determine, in their sole discretion, will not jeopardize the success of the offering by the Corporation. If the total amount of securities, including Warrant Stock, requested by
stockholders to be included in such offering exceeds the amount of securities to be sold that the underwriters determine in their sole discretion is compatible with the success of the offering, then
the Corporation shall be required to include in the offering only that number of such securities, including Warrant Stock, which the underwriters determine in their sole discretion will not jeopardize
the success of the offering, the securities (including Warrant Stock) so included to be apportioned (i) first, to the Person or Persons initiating the registration, if any, (ii) second,
to the Corporation, and (iii) third, thereafter pro rata among all other holders of securities being registered, including the Holder. For
purposes of the foregoing concerning apportionment, for any holder of registration rights that is a partnership, limited liability company or corporation, the partners, members, retired partners,
retired members and stockholders of such holder, or the estates and family members of any such partners, members, retired partners and retired members and any trusts for the benefit of any of the
foregoing persons shall be deemed to be a single "selling stockholder," and any pro rata reduction with respect to such "selling stockholder" shall be
based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such "selling stockholder," as defined in this sentence. 

        (c)    Market Stand-Off" Agreement.    Notwithstanding anything else in this Agreement to the contrary,
the Holder, on behalf of itself and any assignees, hereby agrees that, for a period of 90 days following the effective date of a registration statement of the Corporation filed under the
Securities Act, it shall not, directly or indirectly, sell, offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or otherwise transfer or
dispose of, whether through a derivation transaction or any other method of disposing of the economic benefits (other than to donees who agree to be similarly bound), any Securities held by it at any
time during such period, except Securities
included in such registration; provided, however, that such agreement shall not apply unless (i) the standoff has been requested by the underwriters of the Corporation's securities and
(ii) the officers and directors of the Corporation and holders of 1% or more of the Corporation's outstanding securities are similarly bound with regard to the offering. In order to enforce the
foregoing covenant, the Corporation may impose stop-transfer instructions with respect to the securities of the Corporation held by each party to this Agreement (and the shares or
securities of every other person subject to the foregoing restriction) until the end of such period. 

        11)    Miscellaneous.    

        (d)    Governing Law.    This warrant shall be construed in accordance with and governed by the laws of the State of
Delaware without regard to the principles of conflicts of laws. 

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        (e)    Remedies.    The Corporation stipulates that the remedies at law of the holder of this Warrant in the event of
any default or threatened default by the Corporation in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate, and that such terms may be specifically
enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise. 

        (f)    Amendments.    This Warrant and any provision hereof may be amended or waived only by an instrument in writing
signed by the holders of then outstanding Warrants representing the right to purchase not less than a majority of the total number of shares of Common issuable upon exercise of all then outstanding
Warrants and, if it is to be bound thereby, by the Corporation. 

        (g)    Descriptive Headings.    The descriptive headings of the several paragraphs of this Warrant are inserted for
purposes of reference only, and shall not affect the meaning or construction of any of the provisions hereof. 

        (h)    Notices.    All notices, requests and other communications required or permitted to be given or delivered to
the Holders of this Warrant or the Warrant Stock issuable upon exercise thereof shall be in writing, and shall be mailed (by first class mail, postage prepaid) to each Holder of this Warrant or the
Warrant Stock issuable upon exercise thereof at its address, shown on the books of the Corporation. 

        12)    Definitions.    For the purposes of this Warrant the following terms have the following meanings: 

        "Affiliate
Transfer" shall mean a transfer to (i) to a nominee identified in writing to the Corporation as being the nominee of or for such record owner, and any nominee of or for
a beneficial owner of this Warrant or Warrant Stock issuable upon exercise thereof identified in writing to the Corporation as being the nominee of or for such beneficial owner, (ii) to an
Affiliate (as defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as amended) of such record owner, or (iii) if such record owner is a partnership or
the nominee of a partnership or a limited liability company or the nominee of a limited liability company, to a partner, retired partner, member, retired member or estate of a partner, retired
partner, member or retired member of such partnership or limited liability company, so long as such transfer is in accordance with the transferee's interest in such partnership or limited liability
company and is without consideration, provided, however, that each such transferee shall remain subject to all restrictions on the transfer of this
Warrant or Common issuable upon exercise thereof herein contained. 

        "Board"
shall mean the Board of Directors of the Corporation. 

        "Common"
shall mean the Corporation's Common Stock, par value $.01 per share, and any stock into which such stock may hereafter be changed. 

        "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended. 

        "Fair
Value" as of a particular date shall mean the last sale price of the Common as reported on a national securities exchange or on The Nasdaq National Market System or SmallCap
Market, or, if a last sale reporting quotation is not available for the Common, the average of the bid and asked prices of the Common as reported by Nasdaq or on the NASD's OTC Bulletin Board Service,
or if not so reported, as listed in the National Quotation Bureau, Inc.'s "Pink Sheets." If such quotations are unavailable, or with respect to other appropriate security, property, assets,
business or entity, "Fair Value" shall mean the fair value of such item as determined by mutual agreement reached by the Holder and the Corporation or, in the event the parties are unable to agree, an
opinion of an independent investment banking firm or firms in accordance with the procedures set forth in the immediately succeeding three paragraphs. Notwithstanding the foregoing, if as part of the
consideration in a transaction in which the Corporation acquires, directly or indirectly, all or substantially all of the 

10

 

assets or capital stock or other evidence of ownership of the equity of a Person the Corporation issues shares of Common as to which, for purposes of recording acquisition goodwill only, generally
accepted accounting principles require the Corporation to record the value of the Common so issued at a value that otherwise would not be Fair Value hereunder, such acquisition goodwill will be added
to the value recorded for such shares of Common to determine Fair Value for the issuance of such shares of Common hereunder. 

        In
the case of any event which gives rise to a requirement to determine "Fair Value" pursuant to this Warrant, the Corporation shall be responsible for initiating the process by which
Fair Value shall be
determined as promptly as practicable, but in any event within sixty (60) days following such event and if the procedures contemplated herein in connection with determining Fair Value have not
been complied with fully, then any such determination of Fair Value for any purpose of this Warrant shall be deemed to be preliminary and subject to adjustment pending full compliance with such
procedures. Upon the occurrence of an event requiring the determination of Fair Value, the Corporation shall give the Holder(s) of the Warrants notice of such event, and the Corporation and the
Holders shall engage in direct good faith discussions to arrive at a mutually agreeable determination of Fair Value. 

        In
the event the Corporation and the Holder(s) (as hereinafter defined) are unable to arrive at a mutually agreeable determination within thirty (30) days of the notice, the
Corporation and the Holder(s) of the Warrants (who, if more than one, shall agree among themselves by a majority) shall each retain a separate independent investment banking firm of national
reputation. Such firms shall jointly determine the Fair Value of the security, property, assets, business or entity, as the case may be, in question and deliver their opinion in writing to the
Corporation and to such Holder within thirty (30) days of their retention. In no event shall the marketability, or lack thereof, or lack of registration of a security be a factor in determining
the "Fair Value" of such security. 

        If
such firms cannot jointly make each determination within such 30-day period, then, unless otherwise directed by agreement of the Corporation and the Holder(s) of a
majority or more of the Warrants, such firms, in their sole discretion, shall choose another independent investment banking firm of the Corporation or such Holder(s), which firm shall make such
determination and render such an opinion. In either case, the determination so made shall be conclusive and binding on the Corporation and such Holder(s). The fees and expenses of all investment
banking firms retained pursuant to this provision shall be borne by the Corporation. 

        "Holders"
shall mean the Persons who shall, from time to time, own of record any Security. The term "Holder" shall mean one of the Holders. 

        "Permitted
Transfer" shall mean a transfer or sale pursuant to which the Holder desiring to effect such transfer or sale delivers a written notice of the Corporation briefly describing
the manner of such transfer or sale and a written opinion of counsel for such Holder (provided that such counsel, and the form and substance of such opinion, are reasonably satisfactory to the
Corporation) to the effect that such transfer or sale may be effected without the registration of such Securities under the Securities Act, the Corporation shall thereupon permit or cause its transfer
agent (if any) to permit such transfer or sale to be effected, provided, however, that no opinion shall be required if in such written notice the
transferring Holder represents and warrants to the Corporation that (a) the transfer or sale is to a purchaser or transferee whom the transferring Holder knows or reasonably believes to be a
"qualified institutional buyer," as that term is defined in Rule 144A or (b) the transfer or sale is in accordance with a letter or an order issued to the Holder thereof by the staff of
the Securities and Exchange Commission or such Commission stating that no enforcement action shall be recommended by such staff or taken by such Commission, as the case may be, if such transfer occurs
without registration under the Securities Act in accordance with the conditions set forth in such letter or order and such letter or order specifies that no subsequent restrictions on transfer are
required. 

11

 

        "Person"
shall mean an individual, a corporation, a partnership, a limited liability company, a trust, an unincorporated organization or a government organization or an agency or
political subdivision thereof. 

        "Property"
shall mean an interest in any kind of property or assets, whether real, personal or mixed, or tangible or intangible. 

        "Rule 144"
shall mean Rule 144 promulgated by the Securities and Exchange Commission under the Securities Act. 

        "Rule 144A"
shall mean Rule 144(A) promulgated by the Securities and Exchange Commission under the Securities Act. 

        "Securities"
shall mean any debt or equity securities of the Corporation or a Subsidiary, whether now or hereafter authorized, and any instrument convertible into or exchangeable for
Securities. 

        "Securities
Act" shall mean the Securities Act of 1933, as amended. 

        "Seller"
shall mean each Holder of Securities of the Corporation as to which Securities the Corporation could be required to file a Registration Statement or which could be
registered under the Securities Act at the request of such Holder pursuant to any of the provisions of this Warrant. 

        "Stock"
shall include any and all shares, interests or other equivalents (however designated) of, or participations in, corporate stock. 

        "Warrant"
shall mean this Warrant. 

        "Warrant
Price" shall mean $1.00 per share, subject to adjustment pursuant to the provisions of Section 5 hereof. 

        "Warrant
Stock" shall mean, at any time, the shares of the then Common outstanding upon exercise of any part of this Warrant and the Common then issuable upon exercise of the then
Warrant by the Holder thereof, provided, however, that Warrant Stock shall not be deemed to include any shares after such shares have been registered
under the Securities Act and sold pursuant to such registration or any shares sold without registration under the Securities Act in compliance with Rule 144, or Pursuant to any other exemption
from registration under the Securities Act to a Person who is free to resell such shares without registration or restriction under the Securities Act, and provided,
further, that at any time subsequent to the closing of a firmly underwritten public offering of Common Stock by means of a registration statement filed by the Corporation with
the United States Securities and Exchange Commission, Warrant Stock shall not include any shares which are eligible to be sold without registration under the Securities Act in compliance with
subsection (k) of Rule 144. 

	Dated: May 2, 2002	 	SSP SOLUTIONS, INC.
	

 	
 	

By:	
 	

 Marvin J. Winkler,
 Co-Chairman of the Board and Co-Chief Executive Officer

12

 
 

EXHIBIT A    
    
    SUBSCRIPTION FORM    
    
    [To be executed only upon exercise of Warrant]    

        The
undersigned registered owner of the attached Warrant irrevocably exercises such Warrant for the purchase of_______________ Shares of Common Stock of SSP Solutions, Inc. and
herewith requests that certificates for the shares of Common Stock hereby purchased (and any securities or other property issuable upon such exercise) be issued in the name of and delivered to
________________ whose address is _________________________________ and, if such shares of Common Stock shall not include all of the shares of Common Stock issuable as provided in such Warrant that a
new Warrant of like tenor and date for the balance of the shares of Common Stock issuable hereunder be delivered to the undersigned. 

	

 	
 	

 (Name of Registered Owner)
	

 	
 	

 (Signature of Registered Owner)
	

 	
 	

 (Street Address)
	

 	
 	

 (City)        (State)        (Zip Code)

        NOTICE
The signature on this subscription must correspond with the name as written upon the face of the attached Warrant in every particular, without alteration or enlargement or any
change whatsoever. 

 
 

EXHIBIT B    
    
    PARTIAL ASSIGNMENT    
    
    [To be executed only upon exercise of the Warrant]    

        FOR
VALUE RECEIVED _______________ hereby sells, assigns and transfers unto ________________________ the right to purchase ___________________ shares of Common Stock evidenced by the
within Warrant together with all rights therein, and does irrevocably constitute and appoint ___________________________ attorney to transfer that part of the said Warrant on the books of the within
named Corporation. 

	

 	
 	

Signature
                                         
                       
	

Dated:                         	
 	

Signature Guaranteed
                                         
       

        FOR USE BY THE CORPORATION ONLY 

This
Warrant No. W-_____________ canceled (or transferred or exchanged) this ____ day of ______________, 20__, __________ shares of Common Stock issued therefor in the name of
____________________, Warrant No. W-_______ issued for _____________________ shares of Common Stock in the name of ___________________ 

QuickLinks

Exhibit 10.39

EXHIBIT A SUBSCRIPTION FORM [To be executed only upon exercise of Warrant]

EXHIBIT B PARTIAL ASSIGNMENT [To be executed only upon exercise of the Warrant]

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