Document:

Exhibit 10.8

     LEAK-OUT  AGREEMENT
     -------------------

THIS  LEAK-OUT AGREEMENT BETWEEN CHALLENGER POWERBOATS, INC. (THE "COMPANY") AND
MARK  OVERBYE,  HIS  AFFILIATES,  RELATED  PARTY ENTITIES, SUCCESSORS AND FAMILY
MEMBERS  (HEREIN  REFERRED  TO  AS  "OVERBYE")  IS  DATED  JANUARY  29, 2007 AND
SUPERSEDES  ANY  AND ALL OTHER AGREEMENTS ON THE SUBJECT MATTER OF THIS LEAK-OUT
AGREEMENT  WHETHER  IN  WRITING  OR  ORALLY  COMMUNICATED  BETWEEN BOTH PARTIES.

Challenger  Powerboats,  Inc.
300  Westlink  Dr.
Washington,  MO  63090

Ladies  and  Gentlemen:

In  consideration  for  Asset  and Technology Acquisition Agreement between IMAR
Group  LLC  and  Mark  Overbye  and  Gekko Sports Corporation and the Employment
Agreement  between  Challenger Powerboats and Overbye both of which are dated on
or about January 29, 2007 and for other good and valuable consideration, receipt
of  which  is  hereby  acknowledged, the undersigned hereby agrees, for a period
commencing on the date of this Agreement and until January 29, 2009 ("Restricted
Period"),  not  to  publicly  or  privately  offer  to sell, contract to sell or
otherwise  sell,  dispose  of,  loan,  gift,  donate, pledge or grant any rights
(collectively,  a  "Disposition")  with  respect  to any shares of the Company's
Preferred Stock, Common Stock, any options or warrants to purchase any shares of
Common  Stock  or  any securities convertible into or exchangeable for shares of
the  Company's Common Stock (collectively, "Securities"), now owned or hereafter
acquired  directly  by  the undersigned or with respect to which the undersigned
has  or  hereafter  acquires  the  power  of  disposition.

For  a  period  of twelve (12) months following the Restricted Period ("Leak-Out
Period"),  Overbye's  disposition  of Securities shall be limited to open market
sales  of  his  Securities in an aggregate amount equal to three quarters of one
percent  (.75%)  of  the  total  weekly  volume  of  the Securities.  During the
Leak-Out  Period,  Overbye  will  not  effectuate  any  other Disposition of the
Securities.

The  foregoing  restriction  is  expressly  agreed to preclude the holder of the
Securities  from  engaging in any hedging or other transaction which is designed
to  or  reasonably  expected to lead to or result in a Disposition of Securities
during the Restricted Period or Leak-Out Period even if such Securities would be
disposed  of  by  someone other than the undersigned. Such prohibited hedging or
other  transactions  would include without limitation any short sale (whether or
not  against  the  box)  or  any purchase, sale or grant of any right (including
without  limitation  any  put  or call option) with respect to any Securities or
with  respect  to any security (other than a broad-based market basket or index)
that  includes,  relates  to  or  derives any significant part of its value from
Securities.

Any  controversy,  claim  or  dispute  arising  from  the interpretation of this
Agreement,  or  breach thereof, shall be settled by arbitration in the County of
St.  Louis,  State  of  Missouri  in  accordance  with the rules of the American
Arbitration  Association  there in effect, except that the parties thereto shall
have  any  right  to  discovery as would permitted by the Federal Rules of Civil
Procedure.  The  decision  of  the  Arbitrator(s)  shall  be  final.

Very  truly  yours,

Mark  Overbye

/s/ Mark Overbye
----------------

Accepted  as  of  the  date  first  set  forth  above:
By  Challenger  Powerboats,  Inc.

/s/ Laurie Phillips
-------------------
Laurie  Phillips,  President  &  CEOEXHIBIT  10.9

                                 PROMISSORY NOTE
                                 ---------------

Date:    January  _29_,  2007
                   --

Note  Amount:    $670,000

     PROMISE  TO  PAY:  Challenger  Powerboats, Inc., ("Borrower"), 300 Westlink
     ----------------
Drive, Washington, Missouri, promises to pay to the order of Mark Overbye or his
assigns  (Noteholder),  in  lawful  money  of  the United States of America, the
principal amount of $670,000, together with interest at a fixed rate of interest
at  ten  percent  (10%)  per  annum.

     PAYMENT:  Borrower  will  pay  this  loan  in accordance with the following
     -------
payment  schedule:

     The  first  payment shall be due on February 28, 2007 and continuing on the
same day of each month thereafter until July 28, 2008, according to the attached
amortization  table,  at  which time the entire unpaid principal balance and all
accrued  interest  shall  be  due and payable.  Buyer shall have full prepayment
privileges  at  any  time  without prepayment penalty.  Interest on this Note is
computed  daily  on the basis of a 365-day year, for each day all or any part of
the  principal  balance  hereof  shall  remain  outstanding.  Borrower  will pay
Noteholder  at
________________________________________________________  or at such other place
as Noteholder may designate in writing.  Payments not received within 15 days of
due date shall be considered late and shall be subject to a late charge based on
the  rate  of  1%  per  month.

     DEFAULT:  Borrower  will  be  in  default  if any of the following happens:
     -------

     a.     Borrower  fails  to  make  any  payment  when  due;

     b.     A  receiver  is  appointed  for  any  part  of  Borrower's property,
Borrower  makes an assignment for the benefit of creditors, or any proceeding is
commenced  either  by  Borrower  or  against  Borrower  under  any bankruptcy or
insolvency  laws  including but not limited to a voluntary or involuntary filing
under  11  USC  Sec.  101,  et  seq.;
                            --------

     c.     A  receiver  is appointed for any part of such guarantor's property,
such  guarantor  makes  an  assignment  for  the  benefit  of  creditors, or any
proceeding  is  commenced either by any such guarantor or against such guarantor
under any bankruptcy or insolvency laws including but not limited to a voluntary
or  involuntary  filing  under  11  USC  Sec.  101,  et  seq.
                                                     --------

     NOTEHOLDERS  RIGHTS  UPON DEFAULT: Upon default, Noteholder may declare the
     ---------------------------------
entire  unpaid  principal  balance  on  this  Note  and  all  accrued  interest
immediately  due,  after  30  days  notice.  This  Note  has  been  accepted  by
Noteholder  in  the  State  of  North  Dakota.  If  there is a lawsuit, Borrower
agrees, upon Noteholder's request to submit to the jurisdiction of the Courts of
St.  Louis Missouri.  This Note shall be governed by and construed in accordance
with  the  laws  of  the  State  of  Missouri.

     COLLATERAL:  This  Note  is  secured by the security interest in the Assets
     ----------
set  forth  in  the  Security  Agreement  between  Challenger and Borrower dated
January  _29_,  2007.
          --

     GENERAL  PROVISIONS:  Noteholder  may  delay or forego enforcing any of its
     -------------------
rights or remedies under this Note without waiving them.  Borrower and any other
person  who  signs,  guarantees  or endorses this Note, to the extent allowed by
law,  waives  presentment,  demand  for payment, protest and notice of dishonor.
Upon any change in the terms of this Note, and unless otherwise expressly stated
in  writing,  no  party  who  signs  this  Note,  whether  as  maker, guarantor,
accommodation  maker  or  endorser,  shall  be released from liability. All such
parties  agree that Noteholder may renew, extend or modify this loan, or release
any party or guarantor or collateral, or impair, fail to realize upon or perfect
Noteholder's  security  interest  in  the  collateral; and take any other action
deemed  necessary  by  Noteholders  without  the consent of or notice to anyone.

     TIME:  Time  is  of  the  essence  of  this Note and each of the provisions
     ----
hereof.

BORROWER:

Challenger  Powerboats,  Inc.

By:  /s/  Laurie  Phillips                    Date:  January  29,  2007
     ---------------------                           ------------------
     Laurie  Phillips,  President  &  CEOExhibit 10.10

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR THE
SECURITIES  COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIESACT"),
                                                                -------------
AND,  ACCORDINGLY,  MAY  NOT  BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION  STATEMENT  UNDER  THE  SECURITIES  ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION  FROM,  OR  IN  A  TRANSACTION  NOT  SUBJECT  TO,  THE  REGISTRATION
REQUIREMENTS  OF  THE  SECURITIES  ACT  AND  IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES  LAWS  AS  EVIDENCED  BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
REASONABLY  ACCEPTABLE  TO  THE  COMPANY  TO SUCH EFFECT, THE SUBSTANCE OF WHICH
SHALL  BE  REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN
CONNECTION  WITH  A  BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR
OTHER  LOAN  WITH  A  FINANCIAL  INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS
DEFINED  IN  RULE  501(a)  UNDER  THE  SECURITIES  ACT.

                          COMMON STOCK PURCHASE WARRANT
               To Purchase up to 125,000 Shares of Common Stock of
                           CHALLENGER POWERBOATS, INC.

     THIS COMMON STOCK PURCHASE WARRANT (the "Warrant")CERTIFIES that, for value
                                             ---------
received, MARK OVERBYE (the "Holder"),is entitled, upon the terms and subject to
                            --------
the  limitations  on  exercise  and  the  conditions  hereinafter set forth, and
subject to the limitations and provisions as set forth in the Leak-Out Agreement
dated  on or about January 28, 2007 between Challenger Powerboats, Inc. a Nevada
corporation (the "Company")and Mark Overbye, at any time on or after January 28,
                 --------
2009 (the "InitialExercise Date")and on or prior to the THIRD anniversary of the
          ---------------------
Initial  Exercise  Date (the "Termination Date")but not thereafter, to subscribe
                             -----------------
for  and purchase from the Company, up to 125,000 of the outstanding shares (the
"Warrant  Shares")of  Common  Stock,  par value $0.001 per share, of the Company
----------------
(the  "CommonStock")as  of  the Initial Exercise Date. The purchase price of one
 ---   -----------
share  of Common Stock (the "Exercise  Price")under this Warrant shall be TWENTY
--                           -----------------                            ------
CENTS  ($.20)  PER SHARE,Subject to adjustment hereunder. The Exercise Price and
-------------------------
the  number  of  Warrant  Shares  for  which the Warrant is exercisable shall be
subject  to  adjustment  as  provided  herein.
     1.     Title  to  Warrant.Prior  to  the  Termination  Date  and subject to
     --     -------------------
compliance  with applicable laws and Section 7 of this Warrant, this Warrant and
     -
all  rights  hereunder  are  transferable, in whole or in part, at the office or
agency  of  the  Company by the Holder in person or by duly authorized attorney,
upon  surrender of this Warrant together with the Assignment Form annexed hereto
properly  endorsed.  The  transferee shall sign an investment letter in form and
substance  reasonably  satisfactory  to  the  Company.

2.     Authorization  of  Shares.The  Company  covenants that all Warrant Shares
--     --------------------------
which may be issued upon the exercise of the purchase rights represented by this
--
Warrant  will, upon exercise of the purchase rights represented by this Warrant,
be  duly  authorized, validly issued, fully paid and nonassessable and free from
all  taxes,  liens and charges in respect of the issue thereof (other than taxes
in  respect  of  any  transfer  occurring  contemporaneously  with  such issue).
3.  Exercise  of  Warrant.

     (a)  Exercise  of  the  purchase  rights  represented  by  this Warrant may
          be made at any time or times on or after the Initial Exercise Date and
          on or before the Termination Date by delivery to the Company of a duly
          executed  facsimile copy of the Notice of Exercise Form annexed hereto
          (or  such other office or agency of the Company as it may designate by
          notice  in  writing  to  the  registered Holder at the address of such
          Holder  appearing  on  the  books  of the Company); provided, however,
          within 5 Trading Days of the date said Notice of Exercise is delivered
          to  the Company, the Holder shall have surrendered this Warrant to the
          Company  and  the Company shall have received payment of the aggregate
          Exercise  Price  of  the  shares thereby purchased by wire transfer or
          cashier's check drawn on a United States bank. Certificates for shares
          purchased  hereunder shall be delivered to the Holder within 3 Trading
          Days  from the delivery to the Company of the Notice of Exercise Form,
          surrender  of this Warrant and payment of the aggregate Exercise Price
          as set forth above ("Warrant Share Delivery Date"). This Warrant shall
          be  deemed  to  have  been exercised on the date the Exercise Price is
          received  by  the  Company. The Warrant Shares shall be deemed to have
          been  issued, and Holder or any other person so designated to be named
          therein  shall  be  deemed  to  have become a Holder of record of such
          shares for all purposes, as of the date the Warrant has been exercised
          by payment to the Company of the Exercise Price and all taxes required
          to  be  paid by the Holder, if any, pursuant to Section 5 prior to the
          issuance  of  such  shares,  have  been  paid. If the Company fails to
          deliver  to  the Holder a certificate or certificates representing the
          Warrant  Shares  pursuant  to  this  Section 3(a) by the Warrant Share
          Delivery  Date,  then  the  Holder will have the right to rescind such
          exercise.  In addition to any other rights available to the Holder, if
          the  Company  fails  to  deliver  to  the  Holder  a  certificate  or
          certificates  representing  the Warrant Shares pursuant to an exercise
          by  the  Warrant Share Delivery Date, and if after such day the Holder
          is  required  by its broker to purchase (in an open market transaction
          or  otherwise)  shares of Common Stock to deliver in satisfaction of a
          sale  by the Holder of the Warrant Shares which the Holder anticipated
          receiving  upon such exercise (a "Buy-In"), then the Company shall (1)
          pay  in  cash  to the Holder the amount by which (x) the Holder' total
          purchase  price  (including  brokerage  commissions,  if  any) for the
          shares of Common Stock so purchased exceeds (y) the amount obtained by
          multiplying  (A)  the  number  of  Warrant Shares that the Company was
          required  to  deliver to the Holder in connection with the exercise at
          issue  times (B) the price at which the sell order giving rise to such
          purchase obligation was executed, and (2) at the option of the Holder,
          either  reinstate  the portion of the Warrant and equivalent number of
          Warrant  Shares  for which such exercise was not honored or deliver to
          the  Holder  the number of shares of Common Stock that would have been
          issued  had the Company timely complied with its exercise and delivery
          obligations  hereunder.  For  example,  if  the Holder purchase Common
          Stock  having a total purchase price of $11,000 to cover a Buy-In with
          respect  to  an  attempted  exercise of shares of Common Stock with an
          aggregate  sale  price  giving  rise  to  such  purchase obligation of
          $10,000,  under  clause  (1) of the immediately preceding sentence the
          Company  shall  be required to pay the Holder $1,000. The Holder shall
          provide  the  Company written notice indicating the amounts payable to
          the  Holder  in  respect  of  the  Buy-In,  together  with  applicable
          confirmations  and other evidence reasonably requested by the Company.
          Nothing  herein  shall  limit  the  Holder'  right to pursue any other
          remedies  available  to  it  hereunder, at law or in equity including,
          without limitation, a decree of specific performance and/or injunctive
          relief  with  respect  to  the  Company's  failure  to  timely deliver
          certificates  representing shares of Common Stock upon exercise of the
          Warrant  as  required  pursuant  to  the  terms  hereof.

                                      - 1 -
<PAGE>

     (b)  If this  Warrant  shall  have  been  exercised  in  part,  the Company
          shall,  at  the  time  of  delivery of the certificate or certificates
          representing  Warrant  Shares,  deliver  to  Holder  a  new  Warrant
          evidencing  the  rights  of Holder to purchase the unpurchased Warrant
          Shares  called  for  by  this  Warrant, which new Warrant shall in all
          other  respects  be  identical  with  this  Warrant.

4.     No  Fractional Shares or Scrip.No fractional shares or scrip representing
--     -------------------------------
fractional  shares  shall be issued upon the exercise of this Warrant. As to any
fraction  of  a  share which Holder would otherwise be entitled to purchase upon
such  exercise, the Company shall pay a cash adjustment in respect of such final
fraction  in  an amount equal to such fraction multiplied by the Exercise Price.

5.     Charges,  Taxes  and  Expenses.Issuance  of certificates for Warrant
--     -------------------------------
Shares  shall be made without charge to the Holder for any issue or transfer tax
or  other  incidental  expense  in  respect  of  the
issuance  of  such certificate, all of which taxes and expenses shall be paid by
the  Company, and such certificates shall be issued in the name of the Holder or
in  such  name or names as may be directed by the Holder; provided, however,that
                                                          -----------------
in  the  event  certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall be
accompanied  by the Assignment Form attached hereto duly executed by the Holder;
and  the  Company  may  require,  as  a  condition thereto, the payment of a sum
sufficient  to  reimburse  it  for  any  transfer  tax  incidental  thereto.

                                      - 2 -
<PAGE>

6.     Closing  of  Books.The  Company  will  not close its stockholder books or
--     -------------------
records  in  any  manner  which  prevents  the  timely exercise of this Warrant,
pursuant  to  the  terms  hereof.

7.     Transfer,  Division  and  Combination.
--     --------------------------------------
     (a)  Subject  to  compliance  with  any  applicable securities laws and the
          conditions  set  forth  in  Sections  1  and  7(e)  hereof  and to the
          provisions  of Section 4.1 of the Purchase Agreement, this Warrant and
          all  rights  hereunder  are  transferable,  in  whole or in part, upon
          surrender  of  this  Warrant  at  the principal office of the Company,
          together  with  a  written assignment of this Warrant substantially in
          the form attached hereto duly executed by the Holder or their agent or
          attorney  and  funds sufficient to pay any transfer taxes payable upon
          the  making  of  such  transfer. Upon such surrender and, if required,
          such  payment,  the Company shall execute and deliver a new Warrant or
          Warrants  in  the  name  of  the  assignee  or  assignees  and  in the
          denomination  or  denominations  specified  in  such  instrument  of
          assignment,  and  shall issue to the assignor a new Warrant evidencing
          the  portion  of  this Warrant not so assigned, and this Warrant shall
          promptly  be  cancelled.  A  Warrant,  if  properly  assigned,  may be
          exercised  by  a new holder for the purchase of Warrant Shares without
          having  a  new  Warrant  issued.

     (b)  This Warrant  may  be  divided  or  combined  with other Warrants upon
          presentation  hereof  at the aforesaid office of the Company, together
          with  a written notice specifying the names and denominations in which
          new  Warrants are to be issued, signed by the Holder or their agent or
          attorney.  Subject to compliance with Section 7(a), as to any transfer
          which  may  be  involved  in such division or combination, the Company
          shall  execute  and  deliver a new Warrant or Warrants in exchange for
          the  Warrant  or Warrants to be divided or combined in accordance with
          such  notice.

     (c)  The Company  shall  prepare,  issue  and  deliver  at  its own expense
          (other  than  transfer  taxes)  the new Warrant or Warrants under this
          Section  7.

     (d)  The Company  agrees  to  maintain,  at  its  aforesaid  office,  books
          for the registration and the registration of transfer of the Warrants.

     (e)  If, at  the  time  of  the  surrender  of  this  Warrant in connection
          with  any transfer of this Warrant, the transfer of this Warrant shall
          not  be  registered  pursuant  to  an effective registration statement
          under the Securities Act and under applicable state securities or blue
          sky  laws,  the  Company  may require, as a condition of allowing such
          transfer  (i)  that  the  Holder or transferee of this Warrant, as the
          case  may  be,  furnish  to  the  Company a written opinion of counsel
          (which  opinion  shall  be  in form, substance and scope customary for
          opinions  of  counsel  in  comparable transactions) to the effect that
          such  transfer  may  be made without registration under the Securities
          Act  and under applicable state securities or blue sky laws, (ii) that
          the  Holder  or  transferee  execute  and  deliver  to  the Company an
          investment  letter in form and substance acceptable to the Company and
          (iii)  that  the  transferee be an "accredited investor" as defined in
          Rule  501(a)(1),  (a)(2),  (a)(3), (a)(7), or (a)(8) promulgated under
          the  Securities  Act  or a qualified institutional buyer as defined in
          Rule  144A(a)  under  the  Securities  Act.

     8.  No  Rights  as Shareholder until Exercise.This Warrant does not entitle
         ------------------------------------------
the  Holder to any voting rights or other rights as a shareholder of the Company
prior to the exercise hereof. Upon the surrender of this Warrant and the payment
of  the  aggregate  Exercise  Price  (or  by  means of a cashless exercise), the
Warrant  Shares  so purchased shall be and be deemed to be issued to such Holder
as  the  record owner of such shares as of the close of business on the later of
the  date  of  such  surrender  or  payment.

                                      - 3 -
<PAGE>

9.     Loss,  Theft,  Destruction or Mutilation of Warrant.The Company covenants
--     ----------------------------------------------------
that  upon  receipt  by the Company of evidence reasonably satisfactory to it of
the  loss,  theft,  destruction  or  mutilation  of  this  Warrant  or any stock
certificate  relating  to  the  Warrant  Shares,  and  in case of loss, theft or
destruction,  of  indemnity or security reasonably satisfactory to it (which, in
the  case  of  the Warrant, shall not include the posting of any bond), and upon
surrender  and  cancellation of such Warrant or stock certificate, if mutilated,
the  Company  will  make  and deliver a new Warrant or stock certificate of like
tenor  and  dated  as  of  such  cancellation,  in lieu of such Warrant or stock
certificate.

10.     Saturdays,  Sundays,  Holidays, etc.If the last or appointed day for the
---     ------------------------------------
taking  of  any action or the expiration of any right required or granted herein
shall be a Saturday, Sunday or a legal holiday, then such action may be taken or
such right may be exercised on the next succeeding day not a Saturday, Sunday or
legal  holiday.
11.  Adjustments  of  Exercise  Price  and  Number  of  Warrant  Shares.
     -------------------------------------------------------------------
(A)     Stock Splits, etc.The number and kind of securities purchasable upon the
---     ------------------
exercise  of  this Warrant and the Exercise Price shall be subject to adjustment
from  time  to  time  upon  the  happening  of any of the following. In case the
Company  shall  (i)  pay  a  dividend  in  shares  of  Common  Stock  or  make a
distribution  in  shares  of  Common  Stock  to Holder of its outstanding Common
Stock,  (ii)  subdivide  its  outstanding  shares of Common Stock into a greater
number  of  shares,  (iii) combine its outstanding shares of Common Stock into a
smaller  number  of  shares  of  Common  Stock,  or (iv) issue any shares of its
capital  stock  in  a  reclassification  of the Common Stock, then the number of
Warrant  Shares  purchasable  upon  exercise  of  this Warrant immediately prior
thereto  shall  be  adjusted so that the Holder shall be entitled to receive the
kind  and  number  of Warrant Shares or other securities of the Company which it
would  have  owned  or  have  been  entitled  to  receive  had such Warrant been
exercised  in  advance thereof. Upon each such adjustment of the kind and number
of  Warrant  Shares  or  other  securities  of the Company which are purchasable
hereunder,  the  Holder  shall  thereafter be entitled to purchase the number of
Warrant Shares or other securities resulting from such adjustment at an Exercise
Price  per  Warrant Share or other security obtained by multiplying the Exercise
Price  in  effect  immediately prior to such adjustment by the number of Warrant
Shares  purchasable  pursuant  hereto  immediately  prior to such adjustment and
dividing by the number of Warrant Shares or other securities of the Company that
are purchasable pursuant hereto immediately after such adjustment. An adjustment
made  pursuant  to  this  paragraph shall become effective immediately after the
effective  date  of  such  event
(B)     Change  in  Option  Price or Conversion Rate.If there is a change at any
---     ---------------------------------------------
time  in  (i) the amount of additional consideration payable to the Company upon
--
the  exercise  of  any  Options; (ii) the amount of additional consideration, if
any,  payable  to  the  Company upon the exercise, conversion or exchange of any
Common  Stock  Equivalents;  or  (iii)  the  rate  at  which  any  Common  Stock
Equivalents  are convertible into or exchangeable for Common Stock (in each such
case,  other  than  under or by reason of provisions designed to protect against
dilution),  the  Exercise  Price  in  effect  at the time of such change will be
readjusted  to  the  Exercise Price which would have been in effect at such time
had such Options or Common Stock Equivalents still outstanding provided for such
changed additional consideration or changed conversion rate, as the case may be,
at  the  time  initially  granted,  issued  or  sold.

                                      - 4 -
<PAGE>
(C)     Calculation  of  Consideration  Received.If any Common Stock, Options or
---     -----------------------------------------
Common Stock Equivalents are issued, granted or sold for cash, the consideration
--
received  therefor  for  purposes of this Warrant will be the amount received by
the  Company  therefor, before deduction of reasonable commissions, underwriting
discounts  or  allowances  or  other reasonable expenses paid or incurred by the
Company  in  connection  with  such  issuance, grant or sale. In case any Common
Stock,  Options  or  Common  Stock  Equivalents  are  issued  or  sold  for  a
consideration  part  or all of which shall be other than cash, the amount of the
consideration  other  than  cash received by the Company will be the fair market
value  of  such  consideration,  except  where  such  consideration  consists of
securities,  in  which  case the amount of consideration received by the Company
will  be  the  fair  market  value  (closing bid price, if traded on any market)
thereof  as  of the date of receipt. In case any Common Stock, Options or Common
Stock  Equivalents  are issued in connection with any merger or consolidation in
which  the  Company  is  the  surviving corporation, the amount of consideration
therefor  will  be deemed to be the fair market value of such portion of the net
assets  and business of the non-surviving corporation as is attributable to such
Common  Stock, Options or Common Stock Equivalents, as the case may be. The fair
market  value  of  any  consideration  other  than  cash  or  securities will be
determined  in good faith by an investment banker or other appropriate expert of
national  reputation  selected  by  the Company and reasonably acceptable to the
Holder  hereof,  with  the  costs  of such appraisal to be borne by the Company.

(D)     Exceptions  to  Adjustment  of  Exercise  Price.Notwithstanding  the
---     ------------------------------------------------
foregoing,  no adjustment will be made under this Section 11(b) in respect of an
---     -
Exempt  Issuance.

(iii)  Minimum  Adjustment of Exercise Price.No adjustment of the Exercise Price
       --------------------------------------
shall  be  made  in an amount of less than 1% of the Exercise Price in effect at
the  time  such adjustment is otherwise required to be made, but any such lesser
adjustment  shall  be carried forward and shall be made at the time and together
with  the  next  subsequent  adjustment  which, together with any adjustments so
carried  forward,  shall  amount  to  not  less  than 1% of such Exercise Price.

12.  Reorganization,  Reclassification,  Merger, Consolidation or Disposition of
     ---------------------------------------------------------------------------
Assets.In  case the Company shall reorganize its capital, reclassify its capital
  -----
stock,  consolidate or merge with or into another corporation (where the Company
is  not  the surviving corporation or where there is a change in or distribution
with respect to the Common Stock of the Company), or sell, transfer or otherwise
dispose of its property, assets or business to another corporation and, pursuant
to  the terms of such reorganization, reclassification, merger, consolidation or
disposition  of  assets,  shares  of  common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of any
nature  whatsoever (including warrants or other subscription or purchase rights)
in  addition  to  or  in  lieu  of  common  stock  of the successor or acquiring
corporation  ("Other  Property"),are  to  be  received  by or distributed to the
              -----------------
Holder  of  Common  Stock  of  the Company, then the Holder shall have the right
thereafter  to  receive,  at the option of the Holder, (a) upon exercise of this
Warrant,  the  number  of  shares  of Common Stock of the successor or acquiring
corporation  or  of  the  Company, if it is the surviving corporation, and Other
Property  receivable  upon  or  as  a  result  of  such  reorganization,
reclassification,  merger, consolidation or disposition of assets by a Holder of
the  number  of  shares  of  Common  Stock for which this Warrant is exercisable
immediately  prior  to such event or (b) cash equal to the value of this Warrant
as  determined  in  accordance with the Black Scholes option pricing formula. In
case  of  any  such  reorganization,  reclassification, merger, consolidation or
disposition of assets, the successor or acquiring corporation (if other than the
Company)  shall expressly assume the due and punctual observance and performance
of  each  and  every  covenant and condition of this Warrant to be performed and
observed  by  the  Company  and  all  the obligations and liabilities hereunder,
subject  to  such  modifications  as may be deemed appropriate (as determined in
good  faith  by resolution of the Board of Directors of the Company) in order to
provide  for adjustments of Warrant Shares for which this Warrant is exercisable
which  shall  be as nearly equivalent as practicable to the adjustments provided
for  in  this  Section 12. For purposes of this Section 12, "common stock of the
successor  or  acquiring corporation" shall include stock of such corporation of
any  class which is not preferred as to dividends or assets over any other class
of  stock  of  such corporation and which is not subject to redemption and shall
also  include any evidences of indebtedness, shares of stock or other securities
which  are  convertible  into  or  exchangeable  for  any  such  stock,  either
immediately  or  upon  the  arrival  of  a  specified date or the happening of a
specified  event  and  any warrants or other rights to subscribe for or purchase
any  such  stock.  The  foregoing  provisions of this Section 12 shall similarly
apply  to successive reorganizations, reclassifications, mergers, consolidations
or  disposition  of  assets.

                                      - 5 -
<PAGE>

13.     Voluntary  Adjustment  by the Company.The Company may at any time during
---     --------------------------------------
the  term  of  this Warrant reduce the then current Exercise Price to any amount
and  for  any period of time deemed appropriate by the Board of Directors of the
Company.

14.     Notice  of Adjustment.Whenever the number of Warrant Shares or number or
---     ----------------------
kind  of  securities  or  other  property  purchasable upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
give  notice  thereof  to  the  Holder,  which  notice shall state the number of
Warrant  Shares (and other securities or property) purchasable upon the exercise
of  this  Warrant  and  the  Exercise  Price  of  such Warrant Shares (and other
securities  or  property) after such adjustment, setting forth a brief statement
of  the  facts  requiring  such  adjustment and setting forth the computation by
which  such  adjustment  was  made.

15.  Notice  of  Corporate  Action.If  at  any  time:
     ------------------------------
     (a)  the Company  shall  take  a  record  of the Holder of its Common Stock
          for  the  purpose  of  entitling  them  to receive a dividend or other
          distribution,  or any right to subscribe for or purchase any evidences
          of  its  indebtedness,  any  shares of stock of any class or any other
          securities  or  property,  or  to  receive  any  other  right,  or

     (b)  there shall  be  any  capital  reorganization  of  the  Company,  any
          reclassification  or  recapitalization  of  the  capital  stock of the
          Company  or  any  consolidation  or merger of the Company with, or any
          sale,  transfer  or  other disposition of all or substantially all the
          property,  assets  or  business of the Company to, another corporation
          or,

     (c)  there shall  be  a  voluntary  or  involuntary  dissolution,
          liquidation  or winding up of the Company; then, in any one or more of
          such  cases,  the  Company  shall give to Holder (i) at least 20 days'
          prior  written  notice  of  the  date  on which a record date shall be
          selected  for  such dividend, distribution or right or for determining
          rights  to  vote  in  respect  of  any  such  reorganization,
          reclassification,  merger, consolidation, sale, transfer, disposition,
          liquidation  or  winding  up,  and  (ii)  in  the  case  of  any  such
          reorganization,  reclassification,  merger,  consolidation,  sale,
          transfer,  disposition,  dissolution,  liquidation  or  winding up, at
          least  20  days'  prior written notice of the date when the same shall
          take  place.  Such notice in accordance with the foregoing clause also
          shall specify (i) the date on which any such record is to be taken for
          the purpose of such dividend, distribution or right, the date on which
          the  Holder  of  Common  Stock shall be entitled to any such dividend,
          distribution  or right, and the amount and character thereof, and (ii)
          the  date  on which any such reorganization, reclassification, merger,
          consolidation,  sale,  transfer, disposition, dissolution, liquidation
          or winding up is to take place and the time, if any such time is to be
          fixed,  as  of  which  the Holder of Common Stock shall be entitled to
          exchange  their  Warrant  Shares  for  securities  or  other  property
          deliverable upon such disposition, dissolution, liquidation or winding
          up.  Each such written notice shall be sufficiently given if addressed
          to  Holder at the last address of Holder appearing on the books of the
          Company  and  delivered  in  accordance  with  Section  17(d).

                                      - 6 -
<PAGE>

16.     Authorized  Shares.The  Company  covenants  that  during  the period the
---     -------------------
Warrant  is outstanding, it will reserve from its authorized and unissued Common
---
Stock  a  sufficient number of shares to provide for the issuance of the Warrant
Shares  upon the exercise of any purchase rights under this Warrant. The Company
further  covenants  that  its  issuance  of  this  Warrant shall constitute full
authority  to  its  officers  who  are  charged with the duty of executing stock
certificates  to  execute  and  issue the necessary certificates for the Warrant
Shares  upon the exercise of the purchase rights under this Warrant. The Company
will  take  all  such  reasonable action as may be necessary to assure that such
Warrant  Shares  may  be  issued  as  provided  herein  without violation of any
applicable  law  or  regulation,  or of any requirements of the Principal Market
upon  which  the  Common  Stock  may  be  listed.

Except  and  to  the extent as waived or consented to by the Holder, the Company
shall not by any action, including, without limitation, amending its certificate
of  incorporation  or  through  any  reorganization,  transfer  of  assets,
consolidation,  merger,  dissolution,  issue  or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the  terms  of  this  Warrant, but will at all times in good faith assist in the
carrying  out  of all such terms and in the taking of all such actions as may be
necessary  or  appropriate  to protect the rights of Holder as set forth in this
Warrant  against  impairment.  Without limiting the generality of the foregoing,
the  Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par  value, (b) take all such action as may be necessary or appropriate in order
that  the  Company  may  validly  and legally issue fully paid and nonassessable
Warrant  Shares  upon  the  exercise  of  this Warrant, and (c) use commercially
reasonable  efforts  to  obtain  all such authorizations, exemptions or consents
from  any public regulatory body having jurisdiction thereof as may be necessary
to  enable  the  Company  to  perform  its  obligations  under  this  Warrant.

Before  taking  any  action which would result in an adjustment in the number of
Warrant  Shares  for which this Warrant is exercisable or in the Exercise Price,
the  Company  shall  obtain  all  such  authorizations or exemptions thereof, or
consents  thereto, as may be necessary from any public regulatory body or bodies
having  jurisdiction  thereof.

17.     Miscellaneous.

(a)     Jurisdiction.All  questions  concerning  the  construction,  validity,
---     -------------
enforcement and interpretation of this Warrant shall be determined in accordance
---
with  the  provisions  of  the  Purchase  Agreement.

(b)     Restrictions.The  Holder  acknowledges  that the Warrant Shares acquired
---     -------------
upon  the  exercise  of  this Warrant, if not registered, will have restrictions
--
upon  resale  imposed  by  state  and  federal  securities  laws.
--
(c)     Nonwaiver and Expenses.No course of dealing or any delay or failure
---     -----------------------
to  exercise any right hereunder on the part of Holder shall operate as a waiver
of  such  right  or  otherwise  prejudice  Holder'  rights,  powers or remedies,
notwithstanding  all  rights hereunder terminate on the Termination Date. If the
Company  willfully  and  knowingly  fails  to  comply with any provision of this
Warrant,  which results in any material damages to the Holder, the Company shall
pay  to  Holder  such  amounts  as  shall  be  sufficient to cover any costs and
expenses  including,  but  not limited to, reasonable attorneys' fees, including
those of appellate proceedings, incurred by Holder in collecting any amounts due
pursuant  hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

(d)     Notices.Any  notice,  request or other document required or permitted to
---     --------
be  given  or  delivered  to  the  Holder  by  the Company shall be delivered in
accordance  with  the  notice  provisions  of  the  Purchase  Agreement.

                                      - 7 -
<PAGE>
(e)     Limitation  of Liability.No provision hereof, in the absence of any
---     -------------------------
affirmative  action  by  Holder  to  exercise  this  Warrant or purchase Warrant
Shares,  and  no enumeration herein of the rights or privileges of Holder, shall
give  rise to any liability of Holder for the purchase price of any Common Stock
or  as  a  stockholder of the Company, whether such liability is asserted by the
Company  or  by  creditors  of  the  Company.

(f)     Remedies.Holder,  in  addition  to being entitled to exercise all rights
---     ---------
granted  by  law,  including  recovery  of damages, will be entitled to specific
--
performance  of  its rights under this Warrant. The Company agrees that monetary
--
damages  would not be adequate compensation for any loss incurred by reason of a
breach  by  it  of the provisions of this Warrant and hereby agrees to waive the
defense  in  any  action  for specific performance that a remedy at law would be
adequate.

(g)     Successors  and  Assigns.Subject  to  applicable  securities  laws, this
---     -------------------------
Warrant  and  the  rights  and  obligations  evidenced hereby shall inure to the
---
benefit  of and be binding upon the successors of the Company and the successors
---
and  permitted assigns of Holder. The provisions of this Warrant are intended to
be  for the benefit of all Holder from time to time of this Warrant and shall be
enforceable  by  any  such  Holder  or  Holder  of  Warrant  Shares.
(h)     Amendment.This Warrant may be modified or amended or the provisions
---     ----------
hereof  waived  with  the  written  consent  of  the  Company  and  the  Holder.

(i)     Severability.Wherever  possible, each provision of this Warrant shall be
---     -------------
interpreted  in  such  manner as to be effective and valid under applicable law,
but  if  any  provision  of this Warrant shall be prohibited by or invalid under
applicable  law,  such  provision  shall  be  ineffective  to the extent of such
prohibition or invalidity, without invalidating the remainder of such provisions
or  the  remaining  provisions  of  this  Warrant.

(j)     Headings.The  headings  used  in this Warrant are for the convenience of
---     ---------
reference only and shall not, for any purpose, be deemed a part of this Warrant.

                                      - 8 -
<PAGE>

IN  WITNESS  WHEREOF,  the Company has caused this Warrant to be executed by its
officer  thereunto  duly  authorized.

Dated:  January  28,  2007

CHALLENGER  POWERBOATS,  INC.

By: /s/ Laurie Phillips
    -------------------
    Name:  Laurie  Phillips
    Title:  Chief  Executive  Officer

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