Document:

exv10w13

 

Exhibit 10.13

Contractor
Name:   MedWork, AG

Term:   January 1, 2005 (“Effective
Date”) to (“Termination Date”)

INDEPENDENT CONTRACTOR SERVICES AGREEMENT

     THIS AGREEMENT is between ReGen Biologics, Inc., a Delaware corporation and its successors or
assignors (“Client”) and the undersigned (the “Contractor”).

1. ENGAGEMENT OF SERVICES. Client may from time to time issue Project Assignment(s) in the form
attached to this Agreement as Exhibit A. Subject to the terms of this Agreement,
Contractor will, to the best of Contractor’s ability, render the services set forth in Project
Assignment(s) accepted by Contractor by the completion dates set forth therein. Contractor may not
subcontract or otherwise delegate Contractor’s obligations under this Agreement without Client’s
prior written consent.

2. COMPENSATION. Client will pay Contractor a fee for services rendered under this Agreement as
set forth in the Project Assignment(s) undertaken by Contractor. Contractor will be reimbursed for
any reasonable expenses incurred in connection with the performance of services under this
Agreement provided Contractor submits verification of such expenses as Client may require. Upon
termination of this Agreement for any reason, Contractor will be paid fees and expenses on a
proportional basis as stated in the Project Assignment(s) for work which is then in progress, to
and including the effective date of such termination. Unless other terms are set forth in the
Project Assignment(s) for work which is in progress, Client will pay the Contractor for services
and will reimburse the Contractor for previously approved expenses within thirty (30) days of the
date of Contractor’s invoice.

3. INDEPENDENT CONTRACTOR RELATIONSHIP. Contractor’s relationship with Client will be that of an
independent contractor and nothing in this Agreement should be construed to create a partnership,
joint venture, or employer-employee relationship. Contractor will not be entitled to any of the
benefits which Client may make available to its employees, such as group insurance, profit-sharing
or retirement benefits. Contractor is not the agent of Client and is not authorized to make any
representation, contract, or commitment on behalf of Client unless specifically requested or
authorized to do so by a Client Manager. Contractor will be solely responsible for all tax returns
and payments required to be filed with or made to any federal, state or local tax authority with
respect to Contractor’s performance of services and receipt of fees under this Agreement.
Contractor must maintain and will be solely responsible for keeping adequate records of expenses
incurred in the course of performing services under this Agreement. No part of Contractor’s
compensation will be subject to withholding by Client for the payment of any social security,
federal, state or any other employee payroll taxes. Client will regularly report amounts paid to
Contractor by filing Form 1099-MISC with the Internal Revenue Service as required by law.

4. TRADE SECRETS — INTELLECTUAL PROPERTY RIGHTS.

4.1 Confidential Information. Contractor agrees during the term of this Agreement and
thereafter to take all steps necessary to hold Client’s Confidential Information in trust and
confidence. “Confidential Information” includes, but is not limited to, technical and business
information relating to Client’s inventions or products, research and development, production,
manufacturing and engineering processes, costs, profit or margin information, employee skills and
salaries, finances, customers, marketing, and production and future business plans, and any

 

 

third party’s proprietary or confidential information disclosed to Contractor in the course of
providing services to Client. Notwithstanding the other provisions of this Agreement, nothing
received by Contractor will be considered to be Client Confidential Information if (1) it has been
published or is otherwise readily available to the public other than by a breach of this Agreement;
(2) it has been rightfully received by Contractor from a third party without confidential
limitations; (3) it has been independently developed for Contractor by personnel or agents having
no access to the Client Confidential Information; or (4) it was known to Contractor prior to its
first receipt from Client. If Contractor is not sure if particular Company or third party
information is “Confidential Information,” then Contractor agrees to treat all such information as
Confidential Information until Contractor is able to determine whether or not the particular
information is confidential, through discussions with an authorized officer of Client, whose
designation of information as Confidential Information shall be binding on Contractor.

4.2 No Conflict of Interest. Contractor agrees during the term of this Agreement not to
accept work or enter into a contract or accept an obligation, inconsistent or incompatible with
Contractor’s obligations under this Agreement or the scope of services rendered for Client.
Contractor warrants that to the best of Contractor’s knowledge, there is no other existing contract
or duty on Contractor’s part inconsistent with this Agreement, unless a copy of such contract or a
description of such duty is attached to this Agreement as Exhibit B. Contractor further
agrees not to disclose to Client, or bring onto Client’s premises, or induce Client to use any
confidential information that belongs to anyone other than Client or Contractor.

4.3 Disclosure of Work Product. As used in this Agreement, the term “Work Product” means
any new or useful art discovery, improvement or invention whether or not patentable, and all
related know-how, designs, mask works, trademarks, formulae, processes, manufacturing techniques,
trade secrets, ideas, artwork, software or other copyrightable or patentable works. Contractor
agrees to disclose promptly in writing to Client, or any person designated by Client, all Work
Product which is solely or jointly conceived, made, reduced to practice, or learned by Contractor
in the course of any work performed for Client (“Client Work Product”). Contractor represents that
any Work Product relating to Client’s business or research and development which Contractor has
made, conceived or reduced to practice at the time of signing this Agreement (“Prior Work Product”)
has been disclosed in writing to Client and attached to this Agreement as Exhibit C.

4.4 Assignment of Client Work Product. Contractor irrevocably assigns the Client all
right, title and interest worldwide in and to the Client Work Product and all applicable
intellectual property rights related to the Client Work Product, including without limitation,
copyrights, trademarks, trade secrets, patents, moral rights, contract and licensing rights (the
“Intellectual Property Rights”), Contractor retains no rights to use the Client Work Product and
agrees not to challenge the validity of Client’s ownership in the Client Work Product.

4.5 Waiver or Assignment of Other Rights. If Contractor has any rights to the Client Work
Product that cannot be assigned to the Client, Contractor unconditionally and irrevocably waives
the enforcement of such rights, and all claims and causes of action of any kind against the Client
with respect to such rights, and agrees, at the Client’s request and expense, to consent to and
join in any action to enforce such rights. If Contractor has any right to the Client Work Product
that cannot be assigned to the Client or waived by Contractor, Contractor unconditionally and

 

 

irrevocably grants to Client during the term of such rights, an exclusive, irrevocable, perpetual,
worldwide, fully paid and royalty-free license, with rights to sublicense through multiple levels
of sublicensees, to reproduce, create derivative works of, distribute, publicly perform and
publicly display by all means now known or later developed, such rights.

4.6 Assistance. Contractor agrees to cooperate with Client or its designee(s), both during
and after the term of this Agreement, in the procurement and maintenance of Client’s rights in
Client Work Product and to execute, when requested any other documents deemed necessary by Client
to carry out the purpose of this Agreement. [Contractor agrees to execute upon Client’s request a
signed transfer of copyright to Client in the form attached to this Agreement as Exhibit D
for all Client Work Product subject to copyright protection, including, without limitation,
computer programs, notes, sketches, drawings and reports.] In the event that Client is unable for
any reason to secure Contractor’s signature to any document required to apply for or execute any
patent, copyright or other applications with respect to any Client Work Product (including
improvements, renewals, extensions, continuations, divisions or continuations in part thereof),
Contractor hereby irrevocably designates and appoints Client and its duly authorized officers and
agents as its agents and attorneys in fact to act for and in its behalf and instead of Contractor,
to execute and file any such application and to do all other lawfully permitted acts to further the
prosecution and issuance of patents, copyrights, mask works or other rights thereon with the same
legal force and effect as if executed by Contractor.

4.7 Return of Client Property. Upon termination of this Agreement for any reason or in any
manner, or at any earlier time upon Client’s request, Contractor agrees to promptly deliver all
Client property, including but not limited to all tangible embodiments of the Client Work Product,
and all copies of Client property in Contractor’s possession to Client.

5. REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION. Contractor hereby represents and warrants that
(a) the Client Work Product will be an original work of Contractor and any third parties will have
executed assignment of rights reasonably acceptable to Client; (b) neither the Client Work Product
nor any element thereof will infringe the Intellectual Property Rights of any third party; (c)
neither the Client Work Product nor an element thereof will be subject to any restrictions or to
any mortgages, liens, pledges, security interests encumbrances or encroachments; (d) Contractor
will not grant, directly or indirectly, any rights or interest to third parties whatsoever in the
Client Work Product; and (e) Contractor has full right and power to enter into and perform this
Agreement without the consent of any third party. Contractor will indemnify and hold harmless
Client, its officers, directors, employees, sublicensees, customers and agents from any and all
claims, losses, liabilities, damages, expenses and costs (including attorneys’ fees and court
costs) which result from a breach or alleged breach of any representation or warranty of Client
set forth in this Section 5 of the Agreement.

6. Policies for Securities Trading and Handling of Nonpublic Information. Contractor
agrees to comply with Client’s Policy Regarding Securities Handling of Nonpublic Information (the
“Policy”) attached to this Agreement as Exhibit F. Contractor acknowledges that
Contractor’s agreement to comply with the Policy does not create an employer-employee relationship
between Contractor and Client. Contractor acknowledges that in addition to the Policy, Contractor
is individually responsible for complying with securities laws, and will be personally liable for
Contractor’s own violations.

 

 

7. TERMINATION.

7.1 Termination by the Client. Client may terminate this Agreement at any time and without
any breach by Contractor upon fifteen (15) days’ prior written notice to Contractor. Client may
also terminate this Agreement immediately in its sole discretion upon Contractor’s material breach
of Section 4, Section 6 and/or Section 7.3.

7.2 Termination by Contractor. Contractor may terminate this Agreement at any time and
without any breach by Client upon fifteen (15) days’ prior written notice to the Client.

7.3 Non-Solicitation. During and for a period of two (2) years immediately following
termination of this Agreement by either party, Contractor agrees not to solicit or induce any
employee or independent contractor to terminate or breach an employment, contractual or other
relationship with Client.

8. GENERAL PROVISIONS.

8.1 Governing Law. This Agreement will be governed, construed, and enforced in accordance
with the laws of the State of California, without giving effect to the conflicts of laws principles
thereof.

8.2 Severability; Waiver. If any provision of this Agreement is held to be invalid or
unenforceable for any reason, the remaining provisions will continue in full force without being
impaired or invalidated in any way. No failure or delay on the part of Client to exercise any
right, power, or privilege under this Agreement shall operate as a waiver thereof, nor shall single
or partial exercise of any right, power, or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, power, or privilege.

8.3 Notices. All notices, requests and other communications under this Agreement must be
in writing, and must be mailed by registered or certified mail, postage prepaid and return receipt
requested, or delivered by hand to the party to whom such notice is required or permitted to be
given. If mailed, any such notice will be considered to have been given five (5) business days
after it was mailed, as evidenced by the postmark. If delivered by hand, any such notice will be
considered to have been given when received by the party to whom notice is given, as evidenced by
written and dated receipt of the receiving party. The mailing address for notice to either party
will be the address shown on the signature page of this Agreement. Either party may change its
mailing address by notice as provided by this section.

8.4 Legal Fees. If any dispute arises between the parties with respect to the matters
covered by this Agreement which leads to a proceeding to resolve such dispute, the prevailing party
in such proceeding shall be entitled to receive its reasonable attorneys’ fees, expert witness fees
and out-of-pocket costs incurred in connection with such proceeding, in addition to any other
relief it may be awarded.

8.5 Injunctive Relief. A breach of any of the promises or agreements contained in this
Agreement may result in irreparable and continuing damage to Client for which there may be no
adequate remedy at law, and Client is therefore entitled to seek injunctive relief as well as such
other and further relief as may be appropriate.

 

 

8.6 Survival. The following provisions shall survive termination of this Agreement:
Section 4, Section 5, and Section 7.3.

8.7 Entire Agreement. This Agreement set forth the entire understanding and agreement of
the parties and supersedes any an all other agreements, written or oral, regarding the subject
matter of this Agreement. It may not be changed orally but only by a writing signed by both
parties. The terms of this Agreement will govern all Project Assignments and services undertaken
by Contractor for Client.

	 	 	 
	CLIENT:

	 	CONTRACTOR:
	 
	 	 
	ReGen Biologics, Inc.

	 	MedWork, AG

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Brion Umidi
	 	By:
	 	/s/ Andreas Baenzinger
	

	 	 
	 	 	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title: Senior Vice
President and CFO	 	Title:	Baenzinger Andreas Dr.
Med.
	

	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:

	 	509 Commerce Street
	 	Address:
	 	Feldstrasse M. 9050
	

	 	 	 	 	 
	 
	 	East Wing	 	 	 	Appenzell,
CH
	

	 	 	 	 	 
	 
	 	Franklin Lakes, NJ 07417	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	Attn:	   Dr.
A. Baenzinger
	

	 	 	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	For copyright registration purposes

only, contractor must provide the

following information:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Date of Birth: 08.03.62
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Nationality or
Domicile:  CH, CH

 

 

Exhibit A

PROJECT ASSIGNMENT

     During an initial period of six (6) months from January through June 2005, Contractor shall
assist Client in establishing, managing and operation of a European based marketing and
distribution mechanism. During this six month period, Contractor shall dedicate an average of at
least 12 days per month toward fulfilling the requirements of this Agreement. Contractor shall
assume a number of responsibilities and perform a number of tasks as assigned by Client, to
include:

	 	•  	Development and documentation of EU marketing, sales and distribution plan
(including an operating budget) and appropriate coordination with Client management;
	 
	 	•  	Staff MedWork and advise Client on the staffing of EU entity in order to fulfill the
objectives and timelines of the plan;
	 
	 	•  	Identification and recruitment of local/regional distributors or independent sales
reps with experience and relationships with the target surgeon market;
	 
	 	•  	Investigate and advise Client on local or EU regulatory approvals required for ReGen
to support the importation and sale of Client’s products;
	 
	 	•  	Input and advise on logistical/operating plan to support the effective import and
delivery of Client’s products, human resources issues, accounting;
	 
	 	•  	Manage/oversight of Client’s EU staff until such time that ReGen has developed
adequate EU and/or U.S. management to support the EU effort; and
	 
	 	•  	Identify for Client potential complimentary products or companies as candidates for
distribution, joint marketing or acquisition.

Contractor shall engage the services of Andreas Baenzinger, Dr. Med. and Thomas B. Fisher in the
delivery of services on behalf of Contractor, and such other personnel as agreed with Client.

Payment of Fees. Fees will be fixed at 20,000 Swiss Francs per month in cash, plus a total
of 50,000 sharers of ReGen Biologics, Inc. common stock. The ReGen common stock will accrue to the
benefit of MedWork on a monthly basis in approximate 8,333 share increments and will be issued in a
lump sum of 50,000 common shares on June 30, 2005. The shares issued in connection with this
agreement will not be registered and will therefore be restricted from sale in the public market
for 12 months from the date of issue or June 30, 2006.

Fees will be billed by MedWork on a monthly basis on the final working day of each month, net of
VAT, plus expenses including original receipts for all expense reimbursements. Invoices submitted
by MedWork will include a summary of the days worked during the month. During the initial term of
the agreement VAT is not expected based upon the nature of the work being performed. Fees will be
billed directly to Client at its headquarters in NJ, Attention Accounts

 

 

Payable, and will be paid via wire transfer or other acceptable means within 30 days of invoice
date.

     If this Project Assignment, or the Independent Contractor Services Agreement which governs it
is terminated for any reason, fees (including cash and common stock) will be paid or issued based
on the proportion of time worked by Contractor prior to termination.

Expenses. Client will reimburse Contractor for all reasonable and pre-approved out of
pocket expenses incurred in the performance of the services called for in this Agreement.

	 	 	 	 	 
	NOTE:	 	This Project Assignment is governed by the terms
of an Independent Contractor Services Agreement
in effect between Client and Contractor. Any
item in this Project Assignment which is
inconsistent with that Agreement is invalid.
	 
	 	 	 	 
	Signed:

	 	/s/ Brion Umidi
	 	/s/ Andreas Baenzinger
	

	 	

for Client
	 	
 Contractor

 

 

EXHIBIT B

CONFLICT OF INTEREST DISCLOSURE

     None.

 

 

EXHIBIT C

PRIOR WORK PRODUCT DISCLOSURE

     None.

 

 

EXHIBIT D

ASSIGNMENT OF COPYRIGHT

     For good and valuable consideration which has been received, the undersigned sells, assigns
and transfers to Client, a _________corporation, and its successors and assigns, the
copyright in and to the following work, which was created by the following indicated author(s):

Title:Baenzinger, A, Dr. copart of MedWork

Author(s): Dr. A. Baenzinger

Copyright Office Identification No. (if any): ____

and all of the right, title and interest of the undersigned, vested and contingent, therein and
thereto.

     Executed this 01 day of January 2005.

	 	 	 	 	 
	 

	 	Signature:
	 	/s/ Andreas Baenzinger
	

	 	 	 	 
	 
	 	 	 	 
	 	 	Printed Name: Andreas Baenzinger 

 

 

EXHIBIT F

POLICY REGARDING SECURITIES HANDLING OF NONPUBLIC INFORMATION

     This Policy sets forth requirements that all Employees and agents of ReGen Biologics, Inc.
(“ReGen”) must follow, arising from its responsibilities as a public company. In view of the
potential for abuse, this Policy is also applicable to relatives who share the same home with
Employees, agents or persons under the control of Employees, agents or such relatives (such
Employees, agents, relatives and control persons are referred to collectively herein as “Subject
Person(s)”).

	 	A.  	Policies
	 
	 	1.  	NO SUBJECT PERSON WHO POSSESSES (OR HAS REASON TO KNOW REGEN POSSESSES)
MATERIAL NONPUBLIC INFORMATION CONCERNING REGEN, OR ANY PUBLICLY-HELD COMPANY WITH
WHICH REGEN IS DEALING OR PROPOSES TO DEAL (SUCH AS CLIENTS, SUPPLIERS OR ACQUISITION
CANDIDATES), SHALL ENGAGE IN ANY OF THE ACTIVITIES LISTED IN (i) OR (ii) BELOW, UNTIL
AFTER THE CLOSE OF MARKET ON THE SECOND TRADING DAY AFTER THE DATE ON WHICH SUCH
INFORMATION HAS BEEN MADE PUBLICLY AVAILABLE:

	 	(i)  	PURCHASE OR SELL SECURITIES OF REGEN OR ANY SUCH OTHER COMPANY,
OR
	 
	 	(ii)  	DISCLOSE SUCH INFORMATION TO ANY PERSON, EXCEPT TO REGEN
PERSONNEL, OR AUTHORIZED AGENTS OF REGEN, WHO NEED TO KNOW SUCH INFORMATION TO
FULFILL THEIR RESPONSIBILITIES TO REGEN.

	 	2.  	SUBJECT PERSONS ARE STRICTLY PROHIBITED FROM DISCLOSING OR OTHERWISE USING
NONPUBLIC INFORMATION ACQUIRED IN THE COURSE OF THEIR EMPLOYMENT OR AGENCY WITH REGEN
FOR THEIR DIRECT OR INDIRECT PERSONAL BENEFIT, GAIN OR PROFIT.
	 
	 	3.  	SUBJECT PERSONS SHALL REFER ALL INQUIRIES FROM OTHER EMPLOYEES OR AGENTS OR
REGEN OR NON-EMPLOYEES, INCLUDING SECURITIES ANALYSTS, STOCK BROKERS, INVESTMENT
ADVISORS, AND SECURITIES REGULATORS, AND THE MEDIA REGARDING REGEN, ITS SECURITIES,
BUSINESS OPERATIONS OR FINANCIAL CONDITION, OR ANY SIMILAR INFORMATION CONCERNING
PUBLICLY-HELD COMPANIES WITH WHICH REGEN IS DEALING OR PROPOSING TO DEAL (SUCH AS
CUSTOMERS, SUPPLIERS, OR ACQUISITION CANDIDATES) TO REGEN’S CHIEF FINANCIAL OFFICER.

 

 

	 	4.  	IF ANY SUBJECT PERSON BECOMES AWARE THAT ANY OTHER SUBJECT PERSON IS VIOLATING,
OR IS ABOUT TO VIOLATE, ANY OF THESE POLICIES, SUCH VIOLATION OR INCIPIENT VIOLATION,
MUST BE REPORTED IMMEDIATELY TO REGEN’S CHIEF FINANCIAL OFFICER.
	 
	 	B.  	Important Definitions

In order for Subject Persons to comply with the Policy, it is important they understand the
meaning and scope of the following terms:

            1. Material Information. Information is material for purposes of this Policy if (i)
there is a substantial likelihood an investor would consider it important in deciding whether to
buy, sell or hold a security, or (ii) disclosure of the information would have a significant impact
on the price of a security. Information can be material (a) whether it is positive or negative,
(b) whether it was received from ReGen or from a source not connected with ReGen, (c) whether it
affects ReGen or its business, financial condition, results of operations, assets, net worth or
future prospects, or affects the market price of ReGen’s common stock (“Common Stock”), or (d)
even thought it would not by itself determine an investor’s decision or affect the market price.
It is important to bear in mind that information need not be historical or certain to be material;
events or financial forecasts that are uncertain or contingent may also be material depending on
their magnitude and likelihood of occurrence.

            Although it is not possible to list all types of information that may be “material,”
information concerning the following events should be presumed to be “material” for purposes of
this Policy: results of operation, especially earnings; financial forecasts, especially estimates
of earnings; significant changes in previously disclosed financial information; increases or
decreases in dividends or the decision to declare dividends; declaration of stock splits and stock
dividends; proposals or agreements regarding mergers, acquisitions or dispositions; proposed
issuances of new securities; significant expansion or reduction of operations; significant
increases or decreases in business; the award or loss of a significant contract; significant
development of new products or services to be introduced; significant changes in borrowings;
significant license arrangements; major litigation or contingent liabilities or obligations;
significant changes in financial liquidity; other significant positive or negative events; and
significant changes in management. This list is not exhaustive. Other types of information may be
material at any particular time, depending on the circumstances.

            WHEN IN DOUBT, INFORMATION SHOULD ALWAYS BE PRESUMED TO BE MATERIAL.

            2. Nonpublic. In order for information to be considered “publicly available” or “made
available to the public,” and therefore no longer “nonpublic” for purposes of this Policy, it must
have been released by ReGen through appropriate public media in a manner designed to achieve a
broad dissemination to the investing public generally and without favoring any special person or
group. Information should be considered to have been “made available to the public” or “publicly
available” only if (i) it has been disclosed in an annual or quarterly report by ReGen (or ReGen
with which we have or are proposing to have business dealings, as

 

 

the case may be), (ii) it has been included in a widely disseminated press release intended
for and made available to the general public, or (iii) it has been widely reported in the media.
Any information which does not meet these standards is considered “nonpublic.” Any doubts in this
regard should be resolved in favor of considering it “nonpublic.”

     3. Security. The term “security” includes the Common Stock and any put, call, option,
warrant, right or privilege with respect to the Common Stock. Securities also include preferred
stock, certain debt instruments, and securities indices. All types of securities are covered by
this Policy, whether or not they are traded on an exchange or in the over-the-counter market or
otherwise.exv4w2

 

Exhibit 4.2

WARRANT NO. PSP 1

To Purchase 200,000 Shares of Common Stock

of

SPECTRE GAMING, INC.

     This Warrant and the Securities issuable upon exercise of this Warrant have not been
registered under the Securities Act of 1933 (the “1933 Act”) or under any state securities or “Blue
Sky” laws (“Blue Sky Laws”). No transfer, sale, assignment, pledge, hypothecation or other
disposition of this Warrant or the Securities issuable upon exercise of this Warrant or any
interest therein may be made except (a) pursuant to an effective registration statement under the
1933 Act and any applicable Blue Sky Laws or (b) if the Corporation has been furnished with an
opinion of counsel for the holder, which opinion and counsel shall be reasonably satisfactory to
the Corporation, to the effect that no registration is required because of the availability of an
exemption from registration under the 1933 Act and applicable Blue Sky laws.

     THIS CERTIFIES THAT, for good and valuable consideration Pandora Select Partners L.P., a
British Virgin Islands limited partnership (the “Holder”), or the Holder’s registered assigns, is
entitled to subscribe for and purchase from Spectre Gaming, Inc., a Minnesota corporation (the
“Corporation”), at any time on or after May 20, 2004, to and including May 20, 2009 (subject to the
limitations provided in Section 10 below), 200,000 (two hundred thousand) fully paid and
nonassessable shares of the Common Stock of the Corporation at the price of $2.50 per share (the
“Warrant Exercise Price”), subject to the anti-dilution and price protection provisions of this
Warrant.

     The shares which may be acquired upon exercise of this Warrant are referred to herein as the
“Warrant Shares.” As used herein, the term “Holder” means the Holder, any party who acquires all
or a part of this Warrant as a registered transferee of the Holder, or any record holder or holders
of the Warrant Shares issued upon exercise, whether in whole or in part, of the Warrant. The term
“Common Stock” means the common stock, $0.01 par value per share, of the Corporation.

     This Warrant is subject to the following provisions, terms and conditions:

1. Exercise; Transferability.

     (a) The rights represented by this Warrant may be exercised by the Holder hereof, in whole or
in part (but not as to a fractional share of Common Stock), by written notice of exercise (in the
form attached hereto) delivered to the Corporation at the principal office of the Corporation prior
to the expiration of this Warrant and accompanied or preceded by the surrender of this Warrant
along with a check in payment of the Warrant Exercise Price for such Warrant Shares.

     (b) Except as provided in Section 8 hereof, this Warrant may not be sold, transferred,
assigned, hypothecated or divided into two or more Warrants of smaller denominations, nor may any
Warrant Shares issued pursuant to exercise of this Warrant be transferred. In no event may this
Warrant be transferred and divided (without any exercise hereof) into any denomination(s) of less
than 100 Warrant Shares.

2. Exchange and Replacement. Subject to Sections 1 and 8 hereof, this Warrant is exchangeable upon
the surrender hereof by the Holder to the Corporation at its office for new Warrants of like tenor
and date representing in the aggregate the right to purchase the number of Warrant Shares
purchasable hereunder, each of such new Warrants to represent the right to purchase such number of
Warrant Shares (not to exceed the aggregate total number purchasable hereunder) as shall be
designated by the Holder at the time of such surrender. Upon receipt by the Corporation of
evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and, in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to it, and upon surrender and cancellation of this Warrant, if mutilated, the
Corporation will make and deliver a new Warrant of like tenor, in lieu of this Warrant. This
Warrant shall be promptly canceled by the Corporation upon the surrender hereof in connection with
any exchange or replacement. The Corporation shall pay all expenses, taxes (other than stock

53

 

transfer taxes), and other charges payable in connection with the preparation, execution, and
delivery of Warrants pursuant to this Section 2.

3. Issuance of the Warrant Shares.

     (a) The Corporation agrees that the Warrant Shares shall be and are deemed to be issued to the
Holder as of the close of business on the date on which this Warrant shall have been surrendered
and the payment made for such Warrant Shares as aforesaid. Subject to the provisions of paragraph
(b) of this Section 3, certificates for the Warrant Shares so purchased shall be delivered to the
Holder within a reasonable time after the rights represented by this Warrant shall have been so
exercised, and, unless this Warrant has expired, a new Warrant representing the right to purchase
the number of Warrant Shares, if any, with respect to which this Warrant shall not then have been
exercised shall also be delivered to the Holder.

     (b) Notwithstanding the foregoing, however, the Corporation shall not be required to deliver
any certificate for Warrant Shares upon exercise of this Warrant except in accordance with
exemptions from the applicable securities registration requirements or registrations under
applicable securities laws. Except as described in Section 10, nothing herein shall obligate the
Corporation to effect registrations under federal or state securities laws. If registrations are
not in effect and if exemptions are not available when the Holder seeks to exercise the Warrant,
the Warrant exercise period will be extended, if need be, to prevent the Warrant from expiring,
until such time as either registrations become effective or exemptions are available, and the
Warrant shall then remain exercisable for a period of at least 30 calendar days from the date the
Corporation delivers to the Holder written notice of the availability of such registrations or
exemptions. The Holder agrees to execute such documents and make such representations, warranties
and agreements as may be required solely to comply with the exemptions relied upon by the
Corporation, or the registrations made, for the issuance of the Warrant Shares.

4. Covenants of the Corporation. The Corporation covenants and agrees that all Warrant Shares
will, upon issuance, be duly authorized and issued, fully paid, non-assessable and free from all
taxes, liens and charges with respect to the issue thereof. The 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 or transfer
upon exercise of the subscription rights evidenced by this Warrant a sufficient number of shares of
Common Stock to provide for the exercise of the rights represented by this Warrant.

5. Anti-dilution Adjustments. The provisions of this Warrant are subject to adjustment as provided
in this Section 5.

     (a) Stock Splits, Dividends and Combinations. The Warrant Exercise Price shall be
adjusted from time to time such that in case the Corporation shall hereafter:

          (i) pay any dividends on any class of stock of the Corporation payable in Common Stock or
securities convertible into Common Stock;

          (ii) subdivide its then outstanding shares of Common Stock into a greater number of shares;
or

          (iii) combine outstanding shares of Common Stock, by reclassification or otherwise;

then, in any such event, the Warrant Exercise Price in effect immediately prior to such event shall
(until adjusted again pursuant hereto) be adjusted immediately after such event to a price
(calculated to the nearest full cent) determined by dividing (A) the number of shares of Common
Stock outstanding immediately prior to such event, multiplied by the then existing Warrant Exercise
Price, by (B) the total number of shares of Common Stock outstanding immediately after such event
(including in each case the maximum number of shares of Common Stock issuable in respect of any
securities convertible into Common Stock), and the resulting quotient shall be the adjusted Warrant
Exercise Price per share. An adjustment made pursuant to this Subsection shall become effective
immediately after the record date in the case of a dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision, combination or
reclassification. If, as a result of an adjustment made pursuant to this Subsection, the Holder of
any Warrant thereafter surrendered for exercise shall become

54

 

entitled to receive shares of two or more classes of capital stock or shares of Common Stock and
other capital stock of the Corporation, the Board of Directors (whose determination shall be
conclusive) shall determine the allocation of the adjusted Warrant Exercise Price between or among
shares of such classes of capital stock or shares of Common Stock and other capital stock. All
calculations under this Subsection shall be made to the nearest cent or to the nearest 1/100 of a
share, as the case may be. In the event that at any time as a result of an adjustment made
pursuant to this Subsection, the holder of any Warrant thereafter surrendered for exercise shall
become entitled to receive any shares of the Corporation other than shares of Common Stock,
thereafter the Warrant Exercise Price of such other shares so receivable upon exercise of any
Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to Common Stock contained in this Section.

     (b) Mechanics of Adjustment for Stock Splits, Dividends and Combinations. Upon each
adjustment of the Warrant Exercise Price pursuant to Section 5(a) above, the Holder of each Warrant
shall thereafter (until another such adjustment) be entitled to purchase at the adjusted Warrant
Exercise Price the number of shares, calculated to the nearest full share, obtained by multiplying
the number of shares specified in such Warrant (as adjusted as a result of all adjustments in the
Warrant Exercise Price in effect prior to such adjustment) by the Warrant Exercise Price in effect
prior to such adjustment and dividing the product so obtained by the adjusted Warrant Exercise
Price.

     (c) Consolidations, Mergers and Reorganization Events. In case of any consolidation
or merger to which the Corporation is a party other than a merger or consolidation in which the
Corporation is the continuing corporation, or in case of any sale or conveyance to another
corporation of the property of the Corporation as an entirety or substantially as an entirety, or
in the case of any statutory exchange of securities with another corporation (including any
exchange effected in connection with a merger of a third corporation into the Corporation), there
shall be no adjustment under Subsection (a) of this Section 5; but the Holder of each Warrant then
outstanding shall have the right thereafter to convert such Warrant into the kind and amount of
shares of stock and other securities and property which he would have owned or have been entitled
to receive immediately after such consolidation, merger, statutory exchange, sale or conveyance had
such Warrant been converted immediately prior to the effective date of such consolidation, merger,
statutory exchange, sale or conveyance and, in any such case, if necessary, appropriate adjustment
shall be made in the application of the provisions set forth in this Section with respect to the
rights and interests thereafter of any Holders of the Warrant, to the end that the provisions set
forth in this Section shall thereafter correspondingly be made applicable, as nearly as may
reasonably be, in relation to any shares of stock and other securities and property thereafter
deliverable on the exercise of the Warrant. The provisions of this Subsection shall similarly
apply to successive consolidations, mergers, statutory exchanges, sales or conveyances.

     (d) Adjustments for Diluting Issues. In addition to the adjustments of the Warrant
Exercise Price provided above, the Warrant Exercise Price shall be subjected to further adjustment
from time to time as follows (the main operative provision hereof is in Section 5(d)(iii) below):

               (i) Special Definitions:

55

 

               (A) “Options” shall mean rights, options or warrants (other than as excluded by
Section 5(d)(i)(D) below) to subscribe for, purchase or otherwise acquire either Common Stock or
Convertible Securities (as defined herein).

               (B)“Original Issue Date” shall mean the date hereof.

               (C) “Convertible Securities” shall mean securities (other than as excluded by (4)
below) convertible, either directly or indirectly, into or exchangeable for Common Stock.

               (D) “Additional Shares of Common Stock” shall mean all shares of Common Stock issued
(or, deemed to be issued) by the Corporation after the Original Issue Date other than shares of
Common Stock issued (or deemed to be issued):

                         1. to employees, consultants or directors pursuant to stock option, stock grant, stock
purchase or similar plans or arrangements approved by the Corporation’s Board of Directors;

                         2. as a dividend or other distribution in connection with which an adjustment to the Warrant
Exercise Price is made;

                         3. in a merger, consolidation, acquisition or similar business combination that is approved by
the Corporation’s Board of Directors;

                         4. pursuant to credit, lease or other commercial financing arrangements with parties not
affiliated with the Corporation that are approved by the Corporation’s Board of Directors;

                         5. in exchange for technology or other non-cash assets as approved by the Corporation’s Board
of Directors;

                         6. pursuant to any rights or agreements outstanding on the Original Issue Date; or

                         7. if the Holder agrees in writing that such shares shall not constitute Additional Shares of
Common Stock.

               (ii) Deemed Issue of Additional Shares of Common Stock. Except as otherwise provided
in Section 5(d), in the event the Corporation at any time or from time to time after the Original
Issue Date shall issue any Options or Convertible Securities or shall fix a record date for the
determination of any holders of any class of securities entitled to receive any such Options or
Convertible Securities, then the maximum number of shares (as set forth in the instrument relating
thereto without regard to any provisions contained therein for a subsequent adjustment of such
number) of Common Stock issuable upon the exercise of such Options or, in the case of Convertible
Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall
be deemed to be Additional Shares of Common Stock issued as of the time of such issue or, in case
such record date shall have been fixed, as of the close of business on such record date, provided
that in any such case in which Additional Shares of Common Stock are deemed to be issued:

               (A) no further adjustment in the Warrant Exercise Price shall be made upon the subsequent
issue of such Convertible Securities or shares of Common Stock upon the exercise of such Options or
conversion or exchange of such Convertible Securities;

               (B) if such Options or Convertible Securities by their terms provide, with the passage of time
or otherwise, for any increase or decrease in the consideration payable to the Company, or increase
or decrease in the number of shares of Common Stock issuable upon the exercise, conversion or
exchange thereof, the Warrant Exercise Price computed upon the original issue thereof or upon the
occurrence of a record date with respect thereto, and any subsequent adjustments based thereon,
shall, upon any such increase or decrease becoming effective, be recomputed to reflect such
increase or decrease;

56

 

               (C) upon the expiration of any such Option or any rights of conversion or exchange under such
Convertible Securities which shall not have been exercised, the Warrant Exercise Price computed
upon the original issue thereof or upon occurrence of a record date with respect thereto, and any
subsequent adjustments based thereon, shall, upon such expiration:

                         1. in the case of Convertible Securities or Options for Common Stock, be recomputed as though
the only Additional Shares of Common Stock issued were shares of Common Stock, if any, actually
issued upon the exercise of such Options or the conversion or exchange of such Convertible
Securities, and the consideration received therefor was the consideration actually received by the

Company for the issue of all such Options, whether or not exercised, plus the consideration
actually received by the Company upon such exercise, or for the issue of all such Convertible
Securities, whether or not converted or exchanged, plus the additional consideration, if any,
actually received by the Company upon such conversion or exchange; and

                         2. in the case of Options for Convertible Securities, be recomputed as though only the
Convertible Securities, if any, actually issued upon the exercise thereof were issued at the time
of issue of such Options and the consideration received by the Company for the Additional Shares of
Common Stock deemed to have been then issued was the consideration actually received by the Company
for the issue of all such Options, whether or not exercised, plus the consideration deemed to have
been received by the Company upon the issue of the Convertible Securities with respect to which
such Options were actually exercised.

               (D) no readjustment pursuant to Section 5(d) shall have the effect of increasing the Warrant
Exercise Price to an amount which exceeds the Warrant Exercise Price existing immediately prior to
the original adjustment with respect to the issuance of such Options or Convertible Securities, as
adjusted for any Additional Shares of Common Stock issued (or deemed to be issued) between such
original adjustment date and such readjustment date; and

               (E) in the case of any Option or Convertible Security with respect to which the maximum number
of shares of Common Stock issuable upon exercise or conversion or exchange thereof is not
determinable, no adjustment to the Warrant Exercise Price shall be made until such number
becomes determinable.

               (iii) Adjustments for Issuance of Additional Shares of Common Stock. If the Company,
at any time after the issuance of this Warrant, shall issue any Additional Shares of Common Stock
(otherwise than as provided in the Sections 5(a) and 5(c) above) at a price per share less than the
applicable Warrant Exercise Price then in effect or without consideration, then the applicable
Warrant Exercise Price upon each such issuance shall be adjusted to that price (rounded to the
nearest cent) determined by multiplying the applicable Warrant Exercise Price then in effect by a
fraction, (i) the numerator of which shall be equal to the sum of (A) the number of shares of
Common Stock outstanding immediately prior to the issuance of such Additional Shares of Common
Stock plus (B) the number of shares of Common Stock (rounded to the nearest whole share)
which the aggregate consideration for the total number of such Additional Shares of Common Stock so
issued would purchase at a price per share equal to the applicable Warrant Exercise Price then in
effect, and (ii) the denominator of which shall be equal to the number of shares of Common Stock
outstanding immediately after the issuance of such Additional Shares of Common Stock.

                    The provisions of this Section 5(d)(iii) shall not apply under any of the circumstances for
which an adjustment is provided in Sections 5(a), 5(b) or 5(c) above. No adjustment of the
applicable Warrant Exercise Price shall be made under this Section 5(d) upon the issuance of any
Additional Shares of Common Stock which are issued pursuant to any Options or Convertible
Securities if upon the issuance of such Options or Convertible Securities (x) any adjustment shall
have been made pursuant to Section 5(d)(ii) above or (y) no adjustment was required pursuant to
this Section 5(d)(iii). No adjustment of the applicable Warrant Exercise Price shall be made under
this Section 5(d)(iii) in an amount less than $.01 per share, but any such lesser adjustment shall
be carried forward and shall be made at the time and together with the next subsequent adjustment,
if any, which together with any adjustments so carried forward shall amount to $.01 per share or
more; provided, however, that upon any adjustment of the applicable Warrant
Exercise Price as a result of any dividend or distribution payable in Common Stock or Convertible
Securities or the reclassification, subdivision or combination of Common Stock into a greater or
smaller number of shares, the foregoing figure of $.01 per share (or such figure as last adjusted)
shall be adjusted (to the nearest one-half cent) in proportion to the adjustment in the applicable
Warrant Exercise Price.

57

 

               (iv) Determination of Consideration. For purposes of this Section 5(d), the
consideration received by the Corporation for any Additional Shares of Common Stock issued (or
deemed to be issued) shall be computed as follows:

               (A)Cash and Property. Such consideration shall:

                         (i) insofar as it consists of cash, be computed at the aggregate amount of cash received by
the Company;

                         (ii) insofar as it consists of securities and the value of such securities is not determinable
by reference to a separate agreement, (A) if the securities are then traded on a national
securities exchange or the Nasdaq Stock Market (or a similar national quotation system), then the
value shall be computed based on the average of the closing prices of the securities on such
exchange or system over the thirty (30)-day period ending on the date of receipt by the
Corporation, (B) if the securities are actively traded over-the-counter, then the value shall be
computed based on the average of the closing bid prices over the thirty (30) day ending on the date
of receipt by the Corporation, and (C) if there is no active public market, then the value shall be
computed based on the fair market value thereof on the date of receipt by the Corporation, as
determined in good faith by the Board of Directors;

                         (iii) insofar as it consists of property other than cash and securities, be computed at the
fair market value thereof at the time of such issuance, as determined in good faith by the Board of
Directors; and

                         (iv) if Additional Shares of Common Stock are issued (or deemed to be issued) together with
other shares or securities or other assets of the Corporation for consideration which cover both,
by the proportion of such consideration so received, computed as provided in the immediately
preceding Sections 5(d)(iv)(A)(i), 5(d)(iv)(A)(ii) and 5(d)(iv)(A)(iii), as determined in good
faith by the Board of Directors.

                    (B) Options and Convertible Securities. The consideration received by the Corporation
for Additional Shares of Common Stock deemed to have been issued pursuant to Section 5(d) relating
to Option and Convertible Securities, shall be the sum of (x) the total amount, if any, received or
receivable by the Corporation as consideration for the issue of such Options or Convertible
Securities, plus (y) the minimum aggregate amount of additional consideration (as set forth in the
instruments relating thereto, without regard to any provision contained therein for a subsequent
adjustment of such consideration) payable to the Corporation upon the exercise of such Options or
the conversion or exchange of such Convertible Securities, or in the case of Options for
Convertible Securities, the exercise of such Options for Convertible Securities and the conversion
or exchange of such Convertible Securities.

     (e) Default. For purposes of a secured convertible promissory note of this date (the
“Note”) issued by the Corporation to the original Holder hereof, this Warrant is in default if the
Corporation fails by February 1, 2005 (the “Registration Deadline”) to obtain effectiveness under
the 1933 Act and applicable state securities laws of a registration statement for the benefit of
the Holder under the terms of a Registration Rights Agreement of this date covering all of the
Warrant Shares hereunder and all of the shares of Common Stock issuable as payment under or upon
conversion of the Note. Despite the foregoing, if the Holder consents (as provided under the
Registration Rights Agreement) to an extension of the effective date of the Registration Statement
beyond February 1, 2005, then the Registration Deadline hereunder shall be extended by a like
period.

     (f) Certificate as to Adjustments. Upon the occurrence of each adjustment or
readjustment of the Warrant Exercise Price or the number of Warrants covered hereby pursuant to
this Section 5 or pursuant to Section 6 below, the Corporation, at its expense, shall promptly
compute such adjustment or readjustment in accordance with the terms hereof and furnish to the
Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Corporation shall, upon the written
request at any time of the Holder, furnish or cause to be furnished to the Holder a like
certificate setting forth (i) such adjustments and readjustments, (ii) the Warrant Exercise Price
at the time in effect, and (iii) the number of shares of

58

 

Common Stock and the amount, if any, of other property which at the time would be received upon the
exercise of this Warrant.

6. Price Protection Adjustments. In addition to the adjustments provided above, if at any time the
closing price of the Corporation’s Common Stock as reported on the NASDAQ System (or if not then
traded on the NASDAQ System, on the OTC Bulletin Board as reported by bigcharts.com, or if this
service is discontinued, such other reporting service acceptable to Holder) is less than $1.25 per
share (the “Triggering Price”) for 30 or more consecutive trading days, then the Holder may elect a
special adjustment in the number of Warrant Shares, and the Warrant Exercise Price, of this
Warrant. The Holder may elect the special adjustment at any time thereafter by giving written
notice to the Corporation. This Warrant will then represent the right to purchase 75% of the
number of Warrant Shares purchasable hereunder immediately prior to the election (rounded up to the
nearest whole share) at a new Warrant Exercise Price of $1.25 per share. However, the Triggering
Price and the new Warrant Exercise Price shall be similarly adjusted for events that otherwise
adjust the Warrant Exercise Price as described in Section 5(a) above.

7. No Voting Rights. This Warrant shall not entitle the Holder to any voting rights or other
rights as a shareholder of the Corporation.

8. Notice of Transfer of Warrant or Resale of the Warrant Shares.

     (a) Subject to the sale, assignment, hypothecation or other transfer restrictions set forth in
Section 1 hereof, the Holder, by acceptance hereof, agrees to give written notice to the
Corporation before transferring this Warrant or transferring any Warrant Shares of such Holder’s
intention to do so, describing briefly the manner of any proposed transfer. Promptly upon
receiving such written notice, the Corporation shall present copies thereof to the Corporation’s
counsel. If in the opinion of such counsel the proposed transfer may be effected without
registration or qualification (under any federal or state securities laws), the Corporation, as
promptly as practicable, shall notify the Holder of such opinion, whereupon the Holder shall be
entitled to transfer this Warrant or to dispose of Warrant Shares received upon the previous
exercise of this Warrant, all in accordance with the terms of the notice delivered by the Holder to
the Corporation; provided that an appropriate legend may be endorsed on this Warrant or the
certificates for such Warrant Shares respecting restrictions upon transfer thereof necessary or
advisable in the opinion of counsel and satisfactory to the Corporation to prevent further
transfers which would be in violation of Section 5 of the 1933 Act and applicable state securities
laws; and provided further that the prospective transferee or purchaser shall execute such
documents and make such representations, warranties and agreements as may be required solely to
comply with the exemptions relied upon by the Corporation for the transfer or disposition of the
Warrant or Warrant Shares.

     (b) If, in the opinion of the Corporation’s counsel, the proposed transfer or disposition of
this Warrant or such Warrant Shares described in the written notice given pursuant to this Section
8 may not be effected without registration or qualification of this Warrant or such Warrant Shares,
the Corporation shall promptly give written notice thereof to the Holder, and the Holder will limit
its activities in respect to such transfer or disposition as, in the opinion of such counsel, are
permitted by law.

9. Fractional Shares. Fractional shares shall not be issued upon the exercise of this Warrant, but
in any case where the holder would, except for the provisions of this Section, be entitled under
the terms hereof to receive a fractional share, the Corporation shall, upon the exercise of this
Warrant for the largest number of whole shares then called for, pay a sum in cash equal to the sum
of (a) the excess, if any, of the Market Price of such fractional share over the proportional part
of the Warrant Exercise Price represented by such fractional share, plus (b) the proportional part
of the Warrant Exercise Price represented by such fractional share. For purposes of this Section,
the term “Market Price” with respect to shares of Common Stock of any class or series means the
last reported sale price or, if none, the average of the last reported closing bid and asked prices
on any national or regional securities exchange or quoted in the National Association of Securities
Dealers, Inc.’s Automated Quotations System (“Nasdaq”), or if not listed on a national or regional
securities exchange or quoted in Nasdaq, the average of the last reported closing bid and asked
prices as reported by Metro Data Corporation, Inc. or the OTC Bulletin Board from quotations by
market makers in such Common Stock on the Minneapolis-St. Paul local over-the-counter market, or if

59

 

no quotations in such Common Stock are available, the fair market value of the shares as determined
in good faith by the Board of Directors of the Corporation.

10. Registration Rights. Holder shall have registration rights for the shares underlying its
Warrants as described in the Registration Rights Agreement of this same date.

11. Limitation of Exercise of this Warrant. Despite anything to the contrary in this Warrant, the
Holder may not exercise this Warrant during the time period and to the extent that the shares of
Common Stock that the Holder could acquire upon the exercise hereof would cause Holder’s Beneficial
Ownership (as defined below) of the Corporation’s Common Stock to exceed 4.99%. These limitations
on the right to exercise this Warrant shall first reduce the Holder’s Beneficial Ownership of the
Corporation’s Common Stock before limitation of the Holder’s conversion rights, or the
Corporation’s right to make payments in Common Stock, under the Note. The parties shall compute
the Holder’s “Beneficial Ownership” of Common Stock in accordance with U.S. Securities and Exchange
Commission Rule 13d-3. The Holder will, at the request of the Corporation, from time to time,
notify the Corporation of the Holder’s computation of Holder’s Beneficial Ownership.

     IN WITNESS WHEREOF, Spectre Gaming, Inc. has caused this Warrant to be signed by its duly
authorized officer and this Warrant to be dated May 20, 2004.

	 	 	 	 	 
	 	 	SPECTRE GAMING, INC.
	 
	 	 	 	 
	

	 	By
	 	/s/ Russell Mix                                                  
	

	 	 	 	Russell Mix, President and
	

	 	 	 	Chief Executive Officer

60

 

EXERCISE FORM

(To Be Executed by the Registered Holder in Order to Exercise the Warrant)

To: Spectre Gaming, Inc.

The undersigned hereby irrevocably elects to exercise the attached Warrant to purchase for cash,
_________of the shares issuable upon the exercise of such Warrant, and requests that
certificates for such shares (together with a new Warrant to purchase the number of shares, if any,
with respect to which this Warrant is not exercised) shall be issued in the name of:

	 	 	 	 	 
	

	 	NAME:
	 	

	 
	 	 	 	 
	

	 	SOC. SEC. or

TAX I.D. NO.
	 	

	 
	 	 	 	 
	

	 	ADDRESS:
	 	

	 
	 	 	 	 
	

	 	 	 	

	 
	 	 	 	 
	Date:
______, 20 ______.

	 	 
	 	

	

	 	 	 	Signature *

	*	 	The signature on the Notice of Exercise of Warrant must correspond to the name as written
upon the face of the Warrant in every particular without alteration or enlargement or any
change whatsoever. When signing on behalf of a corporation, partnership, trust or other
entity, please indicate your position(s) and title(s) with such entity.

61

 

ASSIGNMENT FORM

(To be Executed by the Registered Holder in Order to Transfer the Warrant)

To: Spectre Gaming, Inc.

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto
______the right to purchase the securities of Spectre Gaming, Inc. to
which the within Warrant relates and appoints ______, attorney, to transfer said
right on the books of Spectre Gaming, Inc. with full power of substitution in the premises.

	 	 	 
	Dated: ______20 ______

	 	

	

	 	(Signature)
	 
	 	 
	

	 	Address:
	 
	 	 
	

	 	

	 
	 	 
	

	 	

62

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