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    CERTIFICATE
      OF DESIGNATION

    

    Pursuant
      to Nevada Revised Statutes Section 78.1955

    

    Aces
      Wired, Inc., a Nevada corporation (the ‘‘Corporation’’),
      certifies that pursuant to the authority contained in its Articles of
      Incorporation, as currently in effect, and in accordance with the provisions
      of
      Nevada Revised Statutes Section 78.1955, its Board of Directors (the
‘‘Board’’)
      has
      adopted the following resolution creating a series of Preferred Stock, par
      value
      $0.001 per share, designated as Series A Convertible Preferred
      Stock:

    

    RESOLVED,
      that a series of the class of authorized $0.001 par value per share Series
      A
      Preferred Stock of the Corporation is hereby created, and that the designation
      and amount thereof and the voting powers, preferences and relative,
      participating, optional and other special rights of the shares of such series,
      and the qualifications, limitations or restrictions thereof are as
      follows:

    

    
      	 	
              1.

            	
              Designation
                and Amounts.

            

    

    

    The
      shares of such series shall be designated as the ‘‘Series A Convertible
      Preferred Stock’’ (the ‘‘Series
      A Preferred’’)
      and
      the number of shares initially constituting such series shall be 5,000,000,
      which number may be increased by a resolution of the Board; provided, however,
      that such number may not be decreased below the number of then currently
      outstanding shares of Series A Preferred and shares of Series A Preferred
      issuable on exercise of rights to acquire Series A Preferred.

    

    
      	 	
              2.

            	
              Rank.

            

    

    

    The
      Series A Preferred shall rank senior to the $0.001 par value common stock
      (‘‘Common
      Stock’’)
      of
      the Corporation, any other preferred stock of the Corporation issued and
      outstanding on the date the first share of Series A Preferred is issued, or
      any
      other series of stock issued by the Corporation ranking junior as to the Series
      A Preferred with respect to payment of dividends, or upon liquidation,
      dissolution or winding up of the Corporation (collectively, ‘‘Junior
      Securities’’).
      The
      Series A Preferred shall rank junior to all Senior Securities with respect
      to
      both the payment of dividends and the distribution of assets on liquidation,
      winding up and dissolution. ‘‘Senior
      Securities’’
means
      any class or series of stock issued by the Corporation ranking senior to the
      Series A Preferred with respect to payment of dividends, or upon liquidation,
      dissolution or winding up of the Corporation. 

    

    
      	 	
              3.

            	
              Dividends
                upon Delay in Filing or Effectiveness of Registration
                Statement.

            

    

    

    (a)   
      If the Registration Statement is not filed by the Corporation with the
      Commission on or prior to the Filing Date, then for each day following the
      Filing Date, until but excluding the date the Registration Statement is filed,
      or if the Registration Statement is not declared effective by the Commission
      by
      the Required Effective Date, then for each day following the Required Effective
      Date, until but excluding the date the Commission declares the Registration
      Statement effective, the Corporation shall pay, out of any assets legally
      available therefore, dividends to the Holders of an amount per 30-day period
      equal to 0.5% of the Purchase Price (pro rata on a 30 day basis); and for any
      such 30-day period, such payment shall be made no later than three business
      days
      following such 30-day period. If the Holder shall be prohibited from selling
      Conversion Shares under the Registration Statement as a result of a Suspension
      of more than 60 consecutive days or Suspensions of more than 90 days in the
      aggregate in any 12-month period, then for each day on which a Suspension is
      in
      effect that exceeds the maximum allowed period for a Suspension or Suspensions,
      but not including any day on which a Suspension is lifted, the Corporation
      shall
      pay, out of any assets legally available therefore, dividends to the Holder
      of
      an amount per 30-day period equal to 0.5% of the Purchase Price (pro rata on
      a
      30 day basis); and for any such 30-day period, such payment shall be made no
      later than three business days following such 30-day period. A Suspension shall
      be deemed lifted on the date that notice that the Suspension has been lifted
      is
      delivered to the Holder. Notwithstanding the foregoing provisions, in no event
      shall the Corporation be obligated to pay such dividends (a) to more than one
      Holder in respect of the same shares of Series A Preferred or Conversion Shares
      for the same period of time or (b) in an aggregate amount that exceeds 10%
      of
      the Purchase Price. Such payments shall be made to the Holder in
      cash.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  
       The capitalized terms used but not defined in Section 3(a) have the
      following meanings:

    

    “Commission”
means
      the Securities and Exchange Commission.

    

    “Conversion
      Shares”
means
      the shares of common stock, par value $.001 per share (the “Common Stock”), of
      the Corporation that the shares of Series A Preferred are automatically
      converted into on the date that the Registration Statement is declared effective
      by the Commission. 

    

    “Filing
      Date”
means
      the date that is 30 days following the date of issuance of the Series A
      Preferred.

    

    “Holder”
means
      a
      person registered as the holder of shares of Series A Preferred on the share
      register records of the Corporation.

    

    “Purchase
      Price”
means
      $5.00 per share of Series A Preferred.

    

    “Registration
      Statement”
means
      a
      registration statement on Form S-1 or Form SB-2 (the “Registration Statement”)
      relating to the sale of the Conversion Shares by the Holder of Series A
      Preferred from time to time in the over-the-counter market as reported by Pink
      Sheets, LLC (or any similar organization or agency succeeding to its functions
      of reporting prices) or the facilities of any Trading Market on which the Common
      Stock is then traded or in privately-negotiated transactions.

    

    “Required
      Effective Date”
the
      date that is 150 days following the date of issuance of the Series A
      Preferred.

    

    “Suspension”
means
      periods when the Company suspends the use of the Prospectus forming a part
      of
      the Registration Statement.

    

    
      	 	
              4.

            	
              Liquidation.

            

    

    

    The
      holders of Series A Preferred, in the event of any voluntary or involuntary
      liquidation, dissolution or winding up of the Corporation, shall be entitled
      to
      receive in cash out of the assets of the Corporation, whether from capital
      or
      from earnings available for distribution to its stockholders (the “Preferred
      Funds”),
      before any amount shall be paid to the holders of any Common Stock or any other
      Junior Securities, an amount per share of Series A Preferred equal to the
      Purchase Price plus accrued and unpaid dividends (the “Liquidation
      Value”);
      provided that if (i) the Preferred Funds are insufficient to pay the full amount
      due to the Holders, then each Holder shall receive a ratable percentage of
      the
      Preferred Funds in accordance with the respective amounts that would be payable
      in full to such holder as a liquidation preference and (ii) in such event,
      the
      As-Converted Liquidation Amount is greater than the Liquidation Value, then
      the
      holders of the Series A Preferred shall be entitled to receive the As-Converted
      Liquidation Amount in lieu of the Liquidation Value. The “As-Converted
      Liquidation Amount” means the amount per share of Series A Preferred that the
      Holders would receive as a pro rata share of the assets of the Corporation
      legally available for distribution determined by the Conversion Amount at the
      time in effect for the Series A Preferred and number of other shares of Common
      Stock then outstanding.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	 	
              5.

            	
              Redemption.

            

    

    

    The
      shares of Series A Preferred shall not be redeemable. 

    

    
      	 	
              6.

            	
              Conversion.

            

    

    

    The
      Series A Preferred shall be convertible into Common Stock in accordance with
      the
      following:

    

    (a)  
       Automatic
      Conversion. The
      Series A Preferred shall automatically convert into Common Stock on the first
      Business Day immediately following the date that the Registration Statement
      is
      declared effective by the Commission. The date a share of Series A Preferred
      is
      converted is referred to as the ‘‘Conversion
      Date.’’

    

    (b)  
       Conversion
      Mechanics.
      Upon
      conversion pursuant to this Section 6, each share of Series A Preferred shall
      be
      converted automatically into one share (the “Conversion
      Amount”)
      of
      fully paid and non-assessable Common Stock. Upon conversion by a holder of
      the
      Series A Preferred pursuant to this Section 6, (i) such holder shall be deemed
      to own the number of shares of Common Stock into which the holder’s Series A
      Preferred is converted and (ii) the Corporation shall pay in cash all accrued
      and unpaid dividends, if any, through the Conversion Date. On the Conversion
      Date, the outstanding shares of Series A Preferred shall be converted
      automatically without any further action by the holders of such shares and
      whether or not the certificates representing such shares are surrendered to
      the
      Company or its transfer agent; provided, however, that the Company shall not
      be
      obligated to issue certificates evidencing the shares of Common Stock issuable
      upon conversion of any shares of Series A Preferred unless certificates
      evidencing such shares of Series A Preferred are either delivered to the Company
      or the holder notifies the Company that such certificates have been lost,
      stolen, or destroyed, and executes an agreement satisfactory to the Company
      to
      indemnify the Company from any loss incurred by it in connection therewith.
      Upon
      the occurrence of the automatic conversion of the Series A Preferred Stock
      the
      holders of the Series A Preferred shall surrender the certificates representing
      the Series A Preferred to the Company and the Company shall deliver promptly
      upon receipt of the applicable certificates for the Series A Preferred from
      the
      holder the shares of Common Stock issuable upon such
      conversion.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (c)  
       Determination
      of Conversion Amount.
      If the
      Corporation at any time or from time to time shall effect a stock split or
      reverse stock split, or a combination, consolidation, reclassification, exchange
      or substitution of the Common Stock, then in each such event the Conversion
      Amount shall be proportionately decreased or increased, as appropriate, to
      give
      effect to such event, such that upon any conversion after any such event, a
      holder of Series A Preferred shall be entitled to receive the number and class
      of any securities of the Corporation or other assets which the holder would
      have
      received had the Series A Preferred been converted into Common Stock immediately
      before the event. If any event occurs of the type contemplated by this
      subsection (c) and subsection (i) but not expressly provided for by such
      provisions, then the Corporation’s Board of Directors will make an appropriate
      adjustment in the Conversion Amount so as to protect the rights of the holders
      of the Series A Preferred; provided, however, that no such adjustment will
      decrease the Conversion Amount as otherwise determined pursuant to this Section
      6.

    

    (d)  
       Certificates
      as to Adjustments.
      Upon
      the occurrence of any adjustment or readjustment of the Conversion Amount
      pursuant to Section 6, the Corporation at its expense shall promptly compute
      such adjustment or readjustment in accordance with the terms hereof and the
      principal financial officer of the Corporation shall verify such computation
      and
      prepare and furnish to each holder of Series A Preferred 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 any holder of Series A Preferred, furnish or
      cause to be furnished to such holder a like certificate prepared by the
      Corporation setting forth (i) such adjustments and readjustments and (ii) the
      number of other securities and the amount, if any, of other property which
      at
      the time would be received upon the conversion of Series A
      Preferred

    with
      respect to each share of Common Stock received upon such conversion.

    

    (e)  
       Notice
      of Record Date.
      If the
      Corporation takes a record of the holders of any class of securities for the
      purpose of determining the holders thereof who are entitled to receive any
      dividend (other than a cash dividend) or other distribution, any security or
      right convertible into or entitling the holder thereof to receive additional
      shares of Common Stock, or any right to subscribe for, purchase or otherwise
      acquire any shares of stock of any class or any other securities or property,
      or
      to receive any other right, of the Corporation or any of its subsidiaries,
      the
      Corporation shall mail to each holder of Series A Preferred at least ten days
      prior to the date specified therein, a notice specifying the date on which
      any
      such record is to be taken for the purpose of such dividend, distribution,
      security or right and the amount and character of such dividend, distribution,
      security or right.

    

    (f)   
       Issue
      Taxes.
      The
      Corporation shall pay any and all issue and other taxes, excluding any income,
      franchise or similar taxes, that may be payable in respect of any issue or
      delivery of shares of Common Stock on conversion of shares of Series A
      Preferred; provided, however, that the Corporation shall not be required to
      pay
      any tax which may be payable in respect to any transfer involved in the issue
      and delivery of shares of Common Stock upon conversion in a name other than
      that
      in which the shares of the Series A Preferred so converted were registered,
      and
      no such issue or delivery shall be made unless and until the person requesting
      such issue or delivery has paid to the Corporation the amount of any such tax,
      or has established, to the satisfaction of the Corporation, that such tax has
      been paid. 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (g)  
       Reservation
      of Stock Issuable Upon Conversion.
      The
      Corporation shall at all times reserve and keep available out of its authorized
      but unissued shares of Common Stock, for the purpose of effecting the conversion
      of the shares of the Series A Preferred, such number of its shares of Common
      Stock as shall from time to time be sufficient to effect the conversion of
      all
      outstanding shares of the Series A Preferred, and if at any time the number
      of
      authorized but unissued shares of Common Stock shall not be sufficient to effect
      the conversion of all then outstanding shares of the Series A Preferred, the
      Corporation will take such corporate action as may, in the opinion of its
      counsel, be necessary to increase its authorized but unissued shares of Common
      Stock to such number of shares as shall be sufficient for such purpose,
      including, without limitation, engaging in best efforts to obtain the requisite
      stockholder approval. Such shares shall be free of preemptive rights, for the
      purpose of enabling the Corporation to satisfy any obligation to issue shares
      of
      its Common Stock, or other securities, upon conversion of all shares of Series
      A
      Preferred pursuant hereto.

    

    (h) 
       Fractional
      Shares.
      No
      fractional shares shall be issued upon the conversion of any share or shares
      of
      Series A Preferred. All shares of Common Stock (including fractions thereof)
      issuable upon conversion of more than one share of Series A Preferred by a
      holder thereof shall be aggregated for purposes of determining whether the
      conversion would result in the issuance of any fractional share. If, after
      the
      aforementioned aggregation, the conversion would result in the issuance of
      a
      fraction of a share of Common Stock, in lieu of issuing any fractional share,
      the fraction shall be rounded up or down to the nearest whole number of
      shares.

    

    (i)   
       Reorganization
      or Merger.
      In case
      of any reorganization or any reclassification of the capital stock of the
      Corporation or any consolidation or merger of the Corporation with or into
      any
      other corporation or corporations or a sale of all or substantially all of
      the
      assets of the Corporation to any other person, then, as part of such
      reorganization, consolidation, merger or sale (each a “Reorganization”),
      provision shall be made so that (i) each share of Series A Preferred shall
      thereafter be convertible into the number of shares of stock or other securities
      or property (including cash) to which a holder of the number of shares of Common
      Stock deliverable upon conversion of such share of Series A Preferred would
      have
      been entitled upon the record date of (or date of, if no record date is fixed)
      such event and, in any case, appropriate adjustment (as determined by the Board
      of Directors) shall be made in the application of the provisions herein set
      forth with respect to the rights and interest thereafter of the holders of
      the
      Series A Preferred, to the end that the provisions set forth herein shall
      thereafter be applicable, as nearly as equivalent as is practicable, in relation
      to any shares of stock or the securities or property (including cash) thereafter
      deliverable upon the conversion of the shares of Series A Preferred, and (ii)
      the successor to the Corporation following such Reorganization accepts, assumes
      and becomes responsible for all of the Corporation’s right, title, benefit,
      privileges and interest in and to, and all of the Corporation’s burdens,
      obligations and liabilities in connection with, the Purchase Agreements, dated
      as of September 26, 2006, by and among the Corporation and the purchasers named
      therein, including regarding the Registration Statement. 

    

    7.   
       Corporation’s
      Dealings with Holders of Series A Preferred.
      No
      payments shall be made to holders of Series A Preferred unless the right to
      receive such payments are made available to all holders of Series A Preferred
      on
      a pro rata basis based on the number of shares of Series A Preferred such holder
      holds.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    8.    
       Consent
      Rights.
      The
      Corporation shall not undertake the following actions without the

    approval
      by the vote or written consent of the holders of at least 66 2/3% of the Series
      A Preferred then outstanding, voting together as a single class:

    

    (a)  
       amend, alter, waive, repeal or modify (whether by merger, consolidation,
      reorganization or otherwise) any provision of the Articles of Incorporation
      (including any filing or amending of a Certificate of Designation for any Senior
      Securities or Parity Securities) or Bylaws of the Corporation so as to adversely
      affect or otherwise impair any of the rights, preferences, privileges,
      qualifications, limitations or restrictions of, or applicable to, the Series
      A
      Preferred, including those relating to conversion;

    

    (b)  
       authorize, create, issue or increase the authorized amount of any class of
      Senior Securities or Parity Securities;

    

    (c)    increase
      or decrease (other than by conversion) the authorized number of shares of Series
      A Preferred;

    

    (d)  
       alter or change (whether by merger, consolidation, reorganization or
      otherwise) the rights, preferences or privileges of, or the restrictions
      provided for the benefit of, the Series A Preferred, including those relating
      to
      conversion;

    

    (e)   
       liquidate, dissolve or wind up the Corporation in any form of transaction;
      or

    

    (f)  
       enter into any agreement regarding, or any transaction or series of
      transactions resulting in, a Change of Control before December 31, 2006, and
      thereafter unless provision is made in the agreement effecting such transaction
      to provide for the successor to the Corporation to accept, assume and become
      responsible for all of the Corporation’s right, title, benefit, privileges and
      interest in and to, and all of the Corporation’s burdens, obligations and
      liabilities in connection with, the Purchase Agreements, dated as of September
      26, 2006, by and among the Corporation and the purchasers named therein,
      including regarding the Registration Statement.

    

    
      	 	
              9.

            	
              Voting
                Rights.

            

    

    

    (a) 
       Voting
      Rights.
      Subject
      to the voting rights set forth in Section 8 and this Section 9, and except
      as
      otherwise provided by law, each holder of the Series A Preferred, in addition
      to
      any voting rights provided by law, may vote on all matters voted on by the
      holders of Common Stock, voting together as a single class with other shares
      entitled to vote at all meetings of the stockholders of the Corporation,
      including the Common Stock and may act by written consent in the same manner
      as
      the Common Stock. Each share of Series A Preferred shall be entitled to a number
      of votes equal to the whole number of shares of Common Stock into which it
      is
      convertible immediately after the close of business on the record date for
      any
      such vote or the effective date of such written consent.

    

    (b)  
       Calling
      a Meeting.
      The
      holders of not less than 20% of the shares of Series A Preferred outstanding
      may
      request the calling of a special meeting of the holders of Series A Preferred,
      which meeting shall thereupon be called by the President, a Vice-President
      or
      the Secretary of the Corporation. Notice of such meeting shall be given to
      each
      holder of record of Series A Preferred by mailing a copy of such notice to
      such
      holder at such holder’s last address as the same appears on the books of the
      Corporation. Such meeting shall be called for a time not earlier than 20 days
      and not later than 60 days after such request and shall be held at such place
      as
      specified in such request. If such meeting shall not be called within 20 days
      after such request, then the holders of not less than 20% of the shares of
      Series A Preferred outstanding may designate in writing any holder of Series
      A
      Preferred to call such meeting on similar notice at the expense of the
      Corporation. Any holder of Series A Preferred so designated shall have access
      to
      the stock books of the Corporation relating to Series A Preferred for the
      purpose of calling a meeting of the holders pursuant to these
      provisions.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (c)  
       Action
      Without Meeting. With
      respect to actions by the holders of Series A Preferred upon those matters
      on
      which such holders are entitled to vote as a separate class, such actions may
      be
      taken without a stockholders meeting by the written consent of such holders
      who
      would be entitled to vote at a meeting having voting power to cast not less
      than
      the minimum number of votes that would be necessary to authorize or take such
      action at a meeting at which the Series A Preferred is entitled to vote were
      present and voted.

    

    10.  
       No
      Impairment.
      The
      Corporation shall not intentionally take any action which would impair the
      rights and privileges of the Series A Preferred set forth herein or the rights
      of the holders thereof. The Corporation will not, by amendment of its articles
      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 to be observed or performed hereunder by the Corporation, but will
      at
      all times in good faith assist in the carrying out of all the provisions herein
      and in the taking of all such action as may be necessary or appropriate in
      order
      to protect the Conversion Rights of the holders of the Series A Preferred
      against impairment.

    

    11.  
       Status
      of Reacquired Shares of Series A Preferred.
      Shares
      of outstanding Series A Preferred reacquired by the Corporation or cancelled
      upon conversion into Common Stock shall have the status of authorized and
      unissued shares of Preferred Stock, undesignated as to series, and subject
      to
      later designation and issuance by the Corporation in accordance with its
      Articles of Incorporation.

    

    12.  
       Preemptive
      Rights.
      Holders
      of Series A Preferred shall not be entitled to any preemptive, subscription
      or
      similar rights in respect to any securities of the Corporation, except as
      specifically set forth herein.

    

    13.  
       Reports.
      The
      Corporation shall mail to all holders of Series A Preferred those reports,
      proxy
      statements and other materials that it mails to all of its holders of Common
      Stock.

    

    14.  
       Notices.
      Any
      notice required by the provisions hereof to be given to the holders of Series
      A
      Preferred shall be deemed given if deposited in the United States Mail, first
      class postage prepaid, and addressed to each holder of record at his or her
      address appearing on the books of the Corporation. Any notice required by the
      provisions hereof to be given to the Corporation shall be deemed given if
      deposited in the United States Mail, first class postage prepaid, and addressed
      to the Corporation at 333 Clay Street, Suite 3300, Houston, Texas 77002, or
      such
      other address as the Corporation shall provide in writing to the holders of
      Series A Preferred.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    15.  
       Amendments.
      With
      the consent or approval of the holders of at least a majority of the
Series
      A
      Preferred then outstanding, the Corporation may amend or modify any of the
      foregoing rights, privileges and preferences with respect to the shares of
      Series A Preferred, provided that no such amendment may materially and adversely
      affect a holder of Series A Preferred without the holder’s approval.
      Notwithstanding the foregoing, the Corporation may amend or modify (i) the
      consent rights described in Section 8 of the holders of Series A Preferred
      and
      (ii) any other rights described herein requiring consent or approval of the
      holders of 66 2⁄3% of the Series A Preferred only with the approval by the vote
      or written consent of the holders of at least 66 2⁄3% of the Series A Preferred
      then outstanding.

    

    [Signature
      Page Follows]

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Certificate as of October 4, 2006.

    

    

    
      	 	
              ACES
                WIRED, INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	 
	 	
              Name:

            	
              Kenneth
                R. Griffith

            
	 	
              Title:

            	
              PresidentExhibit 4.3

    
      
        

      

      Execution
        Copy

      PURCHASE
        AGREEMENT

      

      THIS
        AGREEMENT is made as of the 9th
        day
        of October 2006, by and between Aces Wired, Inc. (the “Company”), a Nevada
        corporation with its principal offices at 11827 Judd Ct., Dallas, Texas 75243,
        and ________________________
        (the
“Purchaser”). 

       

      IN
        CONSIDERATION of the mutual covenants contained in this Agreement, the Company
        and the Purchaser agree as follows: 

       

      SECTION
        1.         Authorization
        of Sale of the Shares.
        Subject
        to the terms and conditions of this Agreement, the Company has authorized
        the
        issuance and sale of up to 1,946,400 shares (the “Shares”) of Series A
        Convertible Preferred Stock, par value $0.001 per share (the “Preferred Stock”),
        of the Company, which shall automatically convert into shares (the “Conversion
        Shares”) of common stock, par value $.001 per share (the “Common Stock”) of the
        Company, on the date that the Registration Statement (as defined herein)
        is
        declared effective by the Securities and Exchange Commission (the “Commission”).
        The Company reserves the right to increase or decrease the number of shares
        of
        Preferred Stock sold in this private placement prior to the Closing Date.
        The
        Shares are classified as convertible preferred stock of the Company for the
        purpose of providing a mechanism whereby the Company may be required to pay
        to
        the Purchaser liquidated damages in accordance with Section 7.6 in the event
        that the Registration Statement (as defined herein) is not declared effective
        by
        the Required Effective Date (as defined herein), all as more particularly
        described in the Designation of Rights and Preferences of Series A Convertible
        Preferred Stock attached hereto as Exhibit
        A.

       

      SECTION
        2.        Agreement
        to Sell and Purchase the Shares.
        

       

      2.1        
        Sale
        and Purchase at the Closing.
        At the
        Closing (as defined in Section 3), the Company will issue and sell to the
        Purchaser, and the Purchaser will buy from the Company, upon the terms and
        conditions hereinafter set forth, the number of Shares (at the purchase price)
        shown below:

       

      
        	
                Number
                  to Be

                Purchased

              	 	
                Price
                  Per

                Share
                  In

                Dollars

              	 	
                Aggregate

                Price

              	 
	 	 	
                $

              	
                5.00

              	 	
                $

              	
              	 

      

       

      

      The
        Company proposes to enter into the same form of purchase agreement with certain
        other investors (the “Other Purchasers”) and expects to complete sales of the
        Shares to them. The Purchaser and the Other Purchasers are hereinafter sometimes
        collectively referred to as the “Purchasers,” and this Agreement and the
        agreements executed by the Other Purchasers are hereinafter sometimes
        collectively referred to as the “Agreements.” The term “Placement Agent” shall
        mean Merriman Curhan Ford & Co. The Shares are being issued and sold in
        connection with the reverse stock split and stock exchange (the “Restructuring”)
        with Goodtime Action Amusement Partners, L.P. (“Goodtime”). For clarification
        purposes, the “Company” shall mean the Company after giving effect to the
        Restructuring.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2.2          
        Purchase
        Option.
         At
        any
        time following the Closing Date but prior to the effective date of the
        Registration Statement (the “Option Period”), Purchaser shall have the option to
        purchase (the “Option”), and the Company agrees to sell upon the written request
        of Purchaser in accordance with the provisions hereof, up to 20% of the number
        of Shares (the “Option Share Amount”) set forth in the table in Section 2.1 of
        this Agreement at a purchase price of $5.00 per Share (the “Option Price”). This
        Option shall be exercisable in whole or in part by Purchaser provided that
        in no
        event shall the Company be required to sell more than the Option Share Amount
        to
        Purchaser pursuant to this Section 2.2.

      

      At
        any
        time during the Option Period, Purchaser may exercise this Option, in whole
        or
        in part, by sending a written request to the Company in accordance with Section
        11 setting forth the number of Shares to be purchased. Upon receipt of such
        notice and the Option Price, the Company shall deliver to Purchaser a
        certificate representing such Shares.

      

      If
        the
        Company shall effect a stock split or reverse stock split, or a combination,
        consolidation, reclassification, exchange or substitution of the Shares during
        the Option Period, then in each such event the Option Share Amount and the
        Option Price shall be proportionately decreased or increased, as appropriate,
        to
        give effect to such event.

       

      SECTION
        3.        Delivery
        of the Shares at the Closing.
        The
        completion of the purchase and sale of the Shares (the “Closing”) shall occur at
        the offices of Thompson & Knight LLP, 333 Clay Street, Suite 3300, Houston,
        Texas 77002-4499, as soon as practicable and as agreed to by the parties
        hereto,
        on September 27, 2006, or on such later date or at such different location
        as
        the parties shall agree in writing, but not prior to the date that the
        conditions for Closing set forth below have been satisfied or waived by the
        appropriate party (the “Closing Date”).

       

      At
        the
        Closing, the Company shall deliver to the Purchaser one or more stock
        certificates registered in the name of the Purchaser, or, if so indicated
        on the
        Stock Certificate Questionnaire attached hereto as Appendix I, in such nominee
        name(s) as designated by the Purchaser, representing the number of Shares
        set
        forth in Section 2 above and bearing an appropriate legend referring to the
        fact
        that the Shares were sold in reliance upon the exemption from registration
        under
        the Securities Act of 1933, as amended (the “Securities Act”) provided by
        Section 4(2) thereof and Rule 506 thereunder. The name(s) in which the stock
        certificates are to be registered are set forth in the Stock Certificate
        Questionnaire attached hereto as Appendix I. The Company’s obligation to
        complete the purchase and sale of the Shares and deliver such stock
        certificate(s) to the Purchaser at the Closing shall be subject to the following
        conditions, any one or more of which may be waived by the Company: (a) receipt
        by the Company of same-day funds in the full amount of the purchase price
        for
        the Shares being purchased hereunder from the Escrow Agent (as defined herein);
        (b) the purchase by the Purchasers and the sale by the Company to such
        Purchasers of Shares for an aggregate purchase price of not less than $8,110,000
        on the Closing Date on terms substantially the same as those reflected herein;
        and (c) the accuracy in all material respects of the representations and
        warranties made by the Purchasers (as if such representations and warranties
        were made on the Closing Date) and the fulfillment of those undertakings
        of the
        Purchasers to be fulfilled prior to the Closing. The Purchaser’s obligation to
        accept delivery of such stock certificate(s) and to pay for the Shares evidenced
        thereby shall be subject to the following conditions, any one or more of
        which
        may be waived by the Purchaser: (a) each of the representations and warranties
        of the Company and each of its Subsidiaries made herein shall be accurate
        as of
        the Closing Date; (b) the fulfillment of those undertakings of the Company
        and
        each of its Subsidiaries to be fulfilled prior to Closing; (c) evidence of
        the
        completion of the Restructuring, in form and substance satisfactory to the
        Placement Agent; (d) each of the Company, the Placement Agent and the Escrow
        Agent (as defined herein) executed that certain Escrow Agreement in
        substantially the form attached hereto as Exhibit
        C;
        (e) the
        purchase by the Purchasers and the sale by the Company to such Purchasers
        of
        Shares for an aggregate purchase price of not less than $8,110,000 as of
        the
        Closing Date; (f) the delivery to the Purchaser of a certificate executed
        by the
        chief executive officer and the chief financial or accounting officer of
        the
        Company, dated as of the Closing Date, to the effect that the representations
        and warranties of the Company set forth in Section 4 hereto are true and
        correct
        as of the date of this Agreement and as of the Closing Date and that the
        Company
        has complied with all the agreements and satisfied all the conditions herein
        on
        its part to be performed or satisfied on or prior to such Closing Date; (g)
        the
        execution and delivery of a lockup agreement in the form attached hereto
        as
Exhibit
        D
        by
        shareholders of the Company reflected on Exhibit
        D
        holding
        at least 89% of all issued and outstanding shares of Common Stock immediately
        prior to the Closing, which shareholders shall include all directors and
        executive officers of the Company; and (h) the execution and delivery to
        the
        Company of a Confidentiality and Non-Competition Agreement in the form attached
        as Exhibit
        E
        hereto
        by GordonGraves.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      Concurrently
        with the execution and delivery of this Agreement, the Company, Wells Fargo,
        N.A. (the “Escrow Agent”) and the Placement Agent shall enter into the Escrow
        Agreement, pursuant to which an escrow account will be established, at the
        Company’s expense, for the benefit of the Purchaser (the “Escrow Account”). Not
        fewer than two business days following the date hereof, (i) the Purchaser
        will
        deposit an amount equal to the aggregate purchase price set forth opposite
        such
        Purchaser’s name in Section 2 hereto in the Escrow Account and (ii) pursuant to
        the Escrow Agreement, the Escrow Agent will notify the Company and the Placement
        Agent in writing as to the deposit in the Escrow Account by the Purchaser
        funds
        equal to the proceeds of the sale of Shares to be sold at such Closing to
        such
        Purchaser (the “Requisite Funds”). On the Closing Date, provided that the
        Company previously provides to the Escrow Agent a certificate of the Company’s
        Chief Executive Officer and Chief Financial Officer that the conditions to
        closing set forth in the previous paragraph have been satisfied or waived,
        the
        Escrow Agent, pursuant to the terms and conditions of the Escrow Agreement,
        shall release the Requisite Funds from the Escrow Account for collection
        by the
        Company and the Placement Agent as provided in the Escrow
        Agreement.

       

      SECTION
        4.         Representations,
        Warranties and Covenants of the Company.
        The
        Company hereby represents and warrants to, and covenants with, the Purchaser
        as
        follows: 

       

      4.1           
        Organization
        and Qualification.
        The
        Company is a corporation duly incorporated, validly existing and in good
        standing under the laws of the State of Nevada and the Company is qualified
        to
        do business as a foreign corporation in each jurisdiction in which qualification
        is required, except where failure to so qualify would not reasonably be expected
        to have a Material Adverse Effect (as defined herein). The material subsidiaries
        of the Company are listed on Exhibit
        B
        (each a
“Subsidiary” and collectively, the “Subsidiaries”). Each Subsidiary is a direct
        or indirect wholly owned subsidiary of the Company. Each Subsidiary is duly
        organized, validly existing and in good standing under the laws of its
        jurisdiction of organization and is qualified to do business as a foreign
        entity
        in each jurisdiction in which qualification is required, except where failure
        to
        so qualify would not reasonably be expected to have a Material Adverse Effect.
        For purposes of this Agreement, the term “Material Adverse Effect” shall mean a
        material adverse effect upon the business, prospects, financial condition,
        properties or results of operations of the Company and its Subsidiaries,
        taken
        as a whole.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      4.2          
        Authorized
        Capital Stock.
        The
        Company has outstanding capital stock as set forth on Schedule 4.2; the issued
        and outstanding shares of the Company’s capital stock have been duly authorized
        and validly issued, are fully paid and nonassessable, have been issued in
        compliance with all federal and state securities laws, were not issued in
        violation of or subject to any preemptive rights or other rights to subscribe
        for or purchase securities, and conform in all material respects to the
        description thereof contained in the Company Documents (as defined below).
        The
        Company does not have outstanding any options to purchase, or any preemptive
        rights or other rights to subscribe for or to purchase, any securities or
        obligations convertible into, or any contracts or commitments to issue or
        sell,
        shares of its capital stock or any such options, rights, convertible securities
        or obligations. The description of the Company’s stock, stock bonus and other
        stock plans or arrangements and the options or other rights granted and
        exercised thereunder set forth in the Company Documents accurately and fairly
        presents all material information with respect to such plans, arrangements,
        options and rights. With respect to each Subsidiary, (i) all the issued and
        outstanding shares of each Subsidiary’s capital stock have been duly authorized
        and validly issued, are fully paid and nonassessable, have been issued in
        compliance with applicable federal and state securities laws, were not issued
        in
        violation of or subject to any preemptive rights or other rights to subscribe
        for or purchase securities, and (ii) there are no outstanding options to
        purchase, or any preemptive rights or other rights to subscribe for or to
        purchase, any securities or obligations convertible into, or any contracts
        or
        commitments to issue or sell, shares of the Subsidiary’s capital stock or any
        such options, rights, convertible securities or obligations.

       

      4.3           
        Issuance,
        Sale and Delivery of the Shares.
        The
        Shares and the Conversion Shares have been duly authorized and, when issued,
        delivered and paid for in the manner set forth in this Agreement, will be
        duly
        authorized, validly issued, fully paid and nonassessable and free and clear
        of
        all pledges, liens, restrictions and encumbrances (other than restrictions
        on
        transfer under state and/or federal securities laws), and will conform in
        all
        material respects to the description thereof set forth in the Company Documents.
        No preemptive rights or other rights to subscribe for or purchase exist with
        respect to the issuance and sale of the Shares and the Conversion Shares
        by the
        Company pursuant to this Agreement. Except as set forth on Schedule 4.3,
        no
        stockholder of the Company has any right (which has not been waived or has
        not
        expired by reason of lapse of time following notification of the Company’s
        intent to file the registration statement to be filed by it pursuant to Section
        7.1 (the “Registration Statement”)) to require the Company to register the sale
        of any shares owned by such stockholder under the Securities Act of 1933,
        as
        amended (the “Securities Act”) in the Registration Statement. No further
        approval or authority of the stockholders or the Board of Directors of the
        Company will be required for the issuance and sale of the Shares or the
        Conversion Shares to be sold by the Company as contemplated herein. The Company
        has reserved from its duly authorized capital stock the maximum number of
        shares
        of Common Stock issuable pursuant to the conversion of the Shares into the
        Conversion Shares.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      4.4           
        Due
        Execution, Delivery and Performance of this Agreement.
        The
        Company has full legal right, corporate power and authority to enter into
        this
        Agreement, the Escrow Agreement, and documents relating to the Restructuring
        (the “Restructuring Documents” and, together with the Agreement and the Escrow
        Agreement, the “Transaction Documents”) and perform the transactions
        contemplated hereby and thereby. The Transaction Documents have been duly
        authorized, executed and delivered by the Company. The execution, delivery
        and
        performance of the Transaction Documents by the Company and the consummation
        of
        the transactions contemplated herein and therein will not violate any provision
        of the certificate of incorporation or bylaws, or other organizational document,
        as applicable, of the Company or any of its Subsidiaries and will not result
        in
        the creation of any lien, charge, security interest or encumbrance upon any
        assets of the Company or any of its Subsidiaries pursuant to the terms or
        provisions of, and will not (i) conflict with, result in the breach or violation
        of, or constitute, either by itself or upon notice or the passage of time
        or
        both, a default under (A) any agreement, lease, franchise, license, permit
        or
        other instrument to which the Company or any of its Subsidiaries is a party
        or
        by which the Company or any of its Subsidiaries or any of their respective
        properties may be bound or affected and in each case which would have a Material
        Adverse Effect, or (B) to the Company’s knowledge, any statute or any judgment,
        decree, order, rule or regulation of any court or any regulatory body,
        administrative agency or other governmental body (including, without limitation,
        any gaming authority in any State in the United States or foreign country
        (collectively, the “Gaming Authorities”)) applicable to the Company or any of
        its Subsidiaries or any of their respective properties where such conflict,
        breach, violation or default is likely to result in a Material Adverse Effect.
        No consent, approval, authorization or other order of any court, regulatory
        body, administrative agency or other governmental body, including any Gaming
        Authority, is required for the execution and delivery of the Transaction
        Documents or the consummation of the transactions contemplated herein and
        therein, except for compliance with the blue sky laws and federal securities
        laws applicable to the offering of the Shares. Upon the execution and delivery
        of the Transaction Documents, and assuming the valid execution thereof by
        the
        Purchaser and any other party thereto other than the Company or any Subsidiary
        or affiliate of the Company, each of the Transaction Documents will constitute
        a
        valid and binding obligation of the Company or any Subsidiary or affiliate
        of
        the Company, as the case may be, enforceable in accordance with its terms,
        except as enforceability may be limited by applicable bankruptcy, insolvency,
        reorganization, moratorium or similar laws affecting creditors’ and contracting
        parties’ rights generally and except as enforceability may be subject to general
        principles of equity (regardless of whether such enforceability is considered
        in
        a proceeding in equity or at law) and except as the indemnification agreements
        of the Company in Section 7.3 hereof may be limited by federal or state
        securities laws or the public policy underlying such laws. 

       

      4.5           
        Accountants.
        The
        firm of Hawkins Accounting, which has expressed its opinion with respect
        to the
        consolidated financial statements to be included or incorporated by reference
        in
        the Registration Statement and the prospectus which forms a part thereof
        (the
“Prospectus”), is an independent accountant as required by the Securities Act
        and the rules and regulations promulgated thereunder (the “Rules and
        Regulations”). The firm of Weaver and Tidwell, LLP, which has expressed its
        opinion with respect to the consolidated financial statements of Goodtime,
        is an
        independent accountant as required by the Securities Act and the Rules and
        Regulations.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      4.6           
        No
        Defaults.
        Neither
        the Company nor any of its Subsidiaries is in violation or default of any
        provision of its certificate of incorporation or bylaws, or other organizational
        documents, as applicable, or in breach of or default with respect to any
        provision of any agreement, judgment, decree, order, lease, franchise, license,
        permit or other instrument to which it is a party or by which it or any of
        its
        properties are bound which could reasonably be expected to have a Material
        Adverse Effect and there does not exist any state of facts which, with notice
        or
        lapse of time or both, would constitute an event of default on the part of
        the
        Company or any of its Subsidiaries as defined in such documents and which
        would
        have a Material Adverse Effect.

       

      4.7           
        Contracts.
        The
        material contracts of the Company and each of its Subsidiaries are in full
        force
        and effect on the date hereof. Neither the Company nor any of its Subsidiaries
        is, nor, to the Company’s knowledge, is any other party in breach of or default
        under any of such contracts which would have a Material Adverse Effect. Except
        as set forth on Schedule 4.7, the Company has no contracts, agreements, leases
        or instruments to which it is a party that (i) the performance of which involves
        consideration in excess of $25,000 annually, (ii) contain provisions allowing,
        restricting or affecting the development, manufacture or distribution of
        the
        products or services of the Company or any of its Subsidiaries, or (iii)
        prohibits or limits the right or ability of the Company or any of its
        Subsidiaries to engage in any line of business or from engaging in competition
        with any person or entity. There are no agreements between the Company or
        any of
        its Subsidiaries, or officers, directors or management or any family member
        of
        any of the foregoing, on the one hand, and any individual or business with
        respect to the business of the Company and its Subsidiaries, on the other
        hand,
        other than the written contracts and agreements disclosed on Schedule
        4.7.

       

      4.8           
        No
        Actions.
        There
        are no legal or governmental actions, suits or proceedings pending and to
        the
        Company’s knowledge, there are no inquiries or investigations, nor are there any
        legal or governmental actions, suits, or proceedings threatened (including,
        without limitation, by any Gaming Authority) to which the Company or any
        of its
        Subsidiaries is or may be a party or of which property owned or leased by
        the
        Company or any of its Subsidiaries is or may be the subject, or related to
        environmental or discrimination matters, which actions, suits or proceedings,
        individually or in the aggregate, might reasonably be expected to have a
        Material Adverse Effect; and no labor disturbance by the employees of the
        Company exists or, to the Company’s knowledge, is imminent which might
        reasonably be expected to have a Material Adverse Effect. Neither the Company
        nor any of its Subsidiaries is party to or subject to the provisions of any
        injunction, judgment, decree or order of any court, regulatory body,
        administrative agency or other governmental body (including, without limitation,
        by any Gaming Authority) which might reasonably be expected to have a Material
        Adverse Effect.

       

      4.9           
        Properties.
        The
        Company and the Subsidiaries have good and marketable title to all properties
        and assets reflected as owned in the financial statements of the Company
        and the
        Subsidiary Financial Statements (as defined herein), subject to no lien,
        mortgage, pledge, charge or encumbrance of any kind except (i) those, if
        any,
        reflected in the financial statements of the Company and the Subsidiary
        Financial Statements, or (ii) those which are not material in amount and
        do not
        adversely affect the use of such property by the Company and its Subsidiaries.
        Each of the Company and its Subsidiaries holds its leased properties under
        valid
        and binding leases, with such exceptions as are not materially significant
        in
        relation to its business taken as a whole. The Company leases all such
        properties as are necessary to its operations as now conducted.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      4.10         
        No
        Material Change.
        Except
        as set forth on Schedule 4.10, since October 30, 2005 (i) the Company and
        its
        Subsidiaries have not incurred any material liabilities or obligations,
        indirect, or contingent, or entered into any material oral or written agreement
        or other transaction which is not in the ordinary course of business or which
        could reasonably be expected to result in a material reduction in the future
        earnings of the Company and its Subsidiaries; (ii) the Company and its
        Subsidiaries have not sustained any material loss or interference with their
        businesses or properties from fire, flood, windstorm, accident or other calamity
        not covered by insurance; (iii) the Company and its Subsidiaries have not
        paid
        or declared any dividends or other distributions with respect to their capital
        stock and neither the Company nor any of its Subsidiaries is in default in
        the
        payment of principal or interest on any outstanding debt obligations; (iv)
        there
        has not been any change in the capital stock of the Company or any of its
        Subsidiaries other than the sale of the Shares hereunder, shares or options
        issued pursuant to employee equity incentive plans or purchase plans approved
        by
        the Company’s Board of Directors and repurchases of shares or options pursuant
        to repurchase plans already approved by the Company's Board of Directors,
        or
        indebtedness not incurred in the ordinary course of business that is material
        to
        the Company and its Subsidiaries, taken as a whole; and (v) there has not
        been
        any change in the accounting principles applied by the Company or any of
        its
        Subsidiaries in the preparation of the financial statements of the Company
        and
        its Subsidiaries other than changes in accordance with generally accepted
        accounting principles. Since October 30, 2005, there has not been any event
        which has caused a Material Adverse Effect.

       

      4.11          Intellectual
        Property.
        (i)
        Each of the Company and its Subsidiaries owns or has obtained valid and
        enforceable licenses or options for the inventions, patent applications,
        patents, trademarks (both registered and unregistered), trade names, copyrights
        and trade secrets necessary for the conduct of its business as currently
        conducted (collectively, the “Intellectual Property”); and (ii) (a) there are no
        third parties who have any ownership rights to any Intellectual Property
        that is
        owned by, or has been licensed to, the Company or its Subsidiaries for the
        products that would preclude the Company or its Subsidiaries from conducting
        its
        business as currently conducted and have a Material Adverse Effect, except
        for
        the ownership rights of the owners of the Intellectual Property licensed
        or
        optioned by the Company or its Subsidiaries; (b) to the Company’s knowledge,
        there are currently no sales of any products that would constitute an
        infringement by third parties of any Intellectual Property owned, licensed
        or
        optioned by the Company or its Subsidiaries, which infringement would have
        a
        Material Adverse Effect; (c) there is no pending or, to the Company’s knowledge,
        threatened action, suit, proceeding or claim by others challenging the rights
        of
        the Company or its Subsidiaries in or to any Intellectual Property owned,
        licensed or optioned by the Company or its Subsidiaries, other than claims
        which
        would not reasonably be expected to have a Material Adverse Effect; (d) there
        is
        no pending or, to the Company’s knowledge, threatened action, suit, proceeding
        or claim by others challenging the validity or scope of any Intellectual
        Property owned, licensed or optioned by the Company or its Subsidiaries,
        other
        than non-material actions, suits, proceedings and claims; and (e) there is
        no
        pending or, to the Company’s knowledge, threatened action, suit, proceeding or
        claim by others that the Company any of its Subsidiaries infringes or otherwise
        violates any patent, trademark, copyright, trade secret or other proprietary
        right of others, other than non-material actions, suits, proceedings and
        claims.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      4.12         
        Compliance.
        Neither
        the Company nor any of its Subsidiaries has been advised, nor has reason
        to
        believe, that it is not conducting its business in compliance with all
        applicable laws, rules and regulations of the jurisdictions in which it is
        conducting its business, including, without limitation, all applicable local,
        state and federal environmental laws and regulations and the rules and
        regulations of any Gaming Authority; except where failure to be so in compliance
        would not have a Material Adverse Effect. 

       

      4.13         
        Taxes.
        Each of
        the Company and its Subsidiaries has filed all necessary federal, state and
        foreign income and franchise tax returns and has paid or accrued all taxes
        shown
        as due thereon, and neither the Company nor any of its Subsidiaries has
        knowledge of a tax deficiency which has been or might be asserted or threatened
        against it which might reasonably be expected to have a Material Adverse
        Effect.

       

      4.14         
        Investment
        Company.
        The
        Company is not an “investment company” or an “affiliated person” of, or
“promoter” or “principal underwriter” for an investment company, within the
        meaning of the Investment Company Act of 1940, as amended. 

       

      4.15         
        Offering
        Materials.
        Except
        for the Company Documents, the Company has not distributed and will not
        distribute prior to the Closing Date any offering material in connection
        with
        the offering and sale of the Shares. Neither the Company nor any person acting
        on its behalf has in the past or will hereafter take any action independent
        of
        the Placement Agent to sell, offer for sale or solicit offers to buy any
        securities of the Company which would subject the offer, issuance or sale
        of the
        Shares, as contemplated by the Transaction Documents, to the registration
        requirements of Section 5 of the Securities Act.

       

      4.16         
        Insurance.
        The
        Company and its Subsidiaries maintain insurance of the types and in the amounts
        that the Company reasonably believes is adequate for their businesses,
        including, but not limited to, insurance covering all real and personal property
        leased by the Company and its Subsidiaries against theft, damage, destruction,
        acts of vandalism and all other risks customarily insured against by similarly
        situated companies, all of which insurance is in full force and effect.

       

      4.17         
        Additional
        Information.
        The
        information contained in the offering materials provided to the investors
        and
        the following documents (all of which are referred to collectively as the
        “Company Documents”), which the Placement Agent has furnished to the Purchaser,
        or will furnish prior to the Closing, did not as of the date of the applicable
        document, include any untrue statement of a material fact or omit to state
        any
        material fact required to be stated therein or necessary to make the statements
        therein, in the light of the circumstances in which they were made, not
        misleading, as of their respective filing dates or if amended, as so amended:
        

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (a)     
           the
        Company’s Annual Report on Form 10-K for the year ended December 31, 2005;

       

      (b)   
             the
        Company’s Quarterly Report on Form 10-Q for the quarter ended March 31,
        2006;

       

      (c)       
        the
        Company’s prospectus filed with the Commission on November 12, 2003,
        Post-Effective Amendment No. 1 to the Registration Statement on Form SB-2/A
        filed with the Commission on February 3, 2004 and Post-Effective Amendment
        No. 2
        to the Registration Statement on Form SB-2/A filed with the Commission on
        February 17, 2004; and

       

      (d)        
        all
        other
        documents, if any, filed by the Company with the Commission since December
        31,
        2005 pursuant to the reporting requirements of the Securities Exchange Act
        of
        1934, as amended (the “Exchange Act”).

       

      4.18         
        Price
        of Common Stock.
        The
        Company has not taken, and will not take, directly or indirectly, any action
        designed to cause or result in, or which has constituted or which might
        reasonably be expected to constitute, the stabilization or manipulation of
        the
        price of the shares of the Common Stock to facilitate the sale or resale
        of the
        Conversion Shares.

       

      4.19         
        Certificate.
        At the
        Closing, the Company will deliver to Purchasers a certificate executed by
        the
        chief executive officer and the chief financial or accounting officer of
        the
        Company, dated as of the Closing Date, in form and substance reasonably
        satisfactory to the Purchasers, to the effect that representations and
        warranties of the Company and each of its Subsidiaries set forth in Section
        4
        hereto are true and correct as of the date of this Agreement and as of the
        Closing Date and that the Company and each of its Subsidiaries has complied
        with
        all the agreements and satisfied all the conditions herein on its part to
        be
        performed or satisfied on or prior to such Closing Date. At the Closing,
        the
        Company shall cause each of its Subsidiaries to deliver to Purchasers a
        certificate executed by officers of each such Subsidiary, dated as of the
        Closing Date, in form and substance reasonably satisfactory to the Purchasers,
        to the effect that representations and warranties of such Subsidiary set
        forth
        in Section 4 hereto are true and correct as of the date of this Agreement
        and as
        of the Closing Date and that such Subsidiary has complied with all the
        agreements and satisfied all the conditions herein on its part to be performed
        or satisfied on or prior to such Closing Date. At the Closing, the Company
        will
        deliver to Purchasers a certificate executed by the secretary of the Company,
        dated as of the Closing Date, in form and substance reasonably satisfactory
        to
        the Purchasers. 

       

      4.20         
        Evidence
        of Completion of Corporate Transactions.
        At the
        Closing, the Company will deliver to the Placement Agent evidence of the
        completion of the Restructuring, in form and substance satisfactory to the
        Placement Agent.

       

      4.21         
        Reporting
        Company; Form S-1.
        The
        Company is subject to the reporting requirements of the Exchange Act. The
        Company is eligible to register the Conversion Shares for resale by the
        Purchaser on a registration statement on Form S-1 or Form SB-2 under the
        Securities Act. There exist no facts or circumstances (including without
        limitation any required approvals or waivers or any circumstances that may
        delay
        or prevent the obtaining of accountant’s consents) that reasonably could be
        expected to prohibit or delay the preparation and filing of a registration
        statement on Form S-1 or Form SB-2 that will be available for the resale
        of the
        Conversion Shares by the Purchaser.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      4.22         
        Use
        of
        Proceeds.
        The
        Company shall use the proceeds from the sale of Shares as set forth on Schedule
        4.22.

       

      4.23         
        Non-Public
        Information.
        On or
        before 9:00 a.m., New York City time, on or before the fourth business day
        after
        the Closing Date, the Company shall file a Current Report on Form 8-K describing
        the material terms of the transactions contemplated by the Transaction
        Documents, and attaching as an exhibit to such Form 8-K a form of this Agreement
        and the Restructuring Documents (including such exhibit, the “8-K Filing”). The
        Company shall not, and shall use its best efforts to cause each of its officers,
        directors, employees and agents not to, provide the Purchaser with any material
        nonpublic information regarding the Company from and after the filing of
        the 8-K
        Filing without the express written consent of the Purchaser. The Company
        understands and confirms that the Purchaser will rely on the representations
        and
        covenants set forth in this section in effecting transactions in securities
        of
        the Company.

       

      4.24         
        Use
        of
        Purchaser Name.
        Except
        as may be required by applicable law or regulation, the Company shall not
        use
        the Purchaser’s name or the name of any of its affiliates in any advertisement,
        announcement, press release or other similar public communication unless
        it has
        received the prior written consent of the Purchaser for the specific use
        contemplated or as otherwise required by applicable law or
        regulation.

       

      4.25        
        Related
        Party Transactions.
        Except
        as set forth on Schedule 4.25, no transaction has occurred between or among
        the
        Company, any of the Subsidiaries and their affiliates, officers or directors
        or
        any affiliate or affiliates of any such officer or director that is required
        to
        have been described under applicable securities laws in the Company Documents
        and is not so described in such filings.

       

      4.26         
        Off-Balance
        Sheet Arrangements.
        There
        is no transaction, arrangement or other relationship between the Company
        and an
        unconsolidated or other off-balance sheet entity that is required to be
        disclosed by the Company in the Company Documents and is not so disclosed
        or
        that otherwise would be reasonably likely to have a Material Adverse Effect.
        There are no such transactions, arrangements or other relationships with
        the
        Company that may create contingencies or liabilities that are not otherwise
        disclosed by the Company in the Company Documents.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      4.27         
        Governmental
        Permits, Etc.
        Each of
        the Company and its Subsidiaries has all franchises, licenses, certificates
        and
        other authorizations from such federal, state or local government or
        governmental agency, department or body that are currently required for the
        operation of the business of the Company and its Subsidiaries as currently
        conducted, including without limitation all such licenses, certificates,
        authorizations and permits required by any Gaming Authority, except where
        the
        failure to posses currently such franchises, licenses, certificates and other
        authorizations is not reasonably expected to have a Material Adverse Effect.
        The
        Company and each of its Subsidiaries is in compliance with all applicable
        federal, state, local and foreign laws, regulations, orders and decrees
        governing its business as prescribed by any Gaming Authority, or any other
        federal, state or foreign agencies or bodies engaged in the regulation of
        gaming, except where noncompliance would not, individually or in the aggregate,
        have a Material Adverse Effect. The Company and its Subsidiaries have not
        received any notice of proceedings relating to the revocation or modification
        of
        any such permit which, if the subject of an unfavorable decision, ruling
        or
        finding, could reasonably be expected to have a Material Adverse Effect.
        No
        Gaming Authority has issued any order or decree or is otherwise impairing,
        restricting or prohibiting the continuation of the business of the Company
        and
        each of its Subsidiaries as is presently being conducted or contemplated.
        No
        event has occurred that allows, or after notice or lapse of time would allow,
        revocation or termination by the issuer thereof or that results in any other
        material impairment of the rights of the holder of any other material impairment
        of the rights of the holder of any such franchises, licenses, certificates
        and
        other authorizations. Such franchises, licenses, certificates and other
        authorizations contain no restrictions that are materially burdensome to
        the
        Company or any of the Subsidiaries in light of their respective business,
        and
        the Company has no reason to believe that any governmental body or agency
        is
        considering limiting, suspending or revoking any such franchises, licenses,
        certificates and other authorizations. Neither the Company nor its management
        has any reasonable basis to believe that any franchises, licenses, certificates
        and other authorizations necessary in the future to conduct the business
        of the
        Company or any Subsidiary as described in the Company Documents will not
        be
        granted upon application, or that any Gaming Authority or any other governmental
        agencies are investigating the Company or any Subsidiary or any of their
        officers, directors, key employees, security holders or affiliated companies,
        other than in ordinary course administrative review or in review of the
        transactions contemplated hereby.

       

      4.28        
        Financial
        Statements.
        The
        Company has provided to the Purchaser the audited financial statements of
        its
        Subsidiaries set forth on Schedule 4.28(a) (the “Subsidiary Financial
        Statements”). Each of the Subsidiary Financial Statements and the consolidated
        financial statements of the Company and the related notes contained in each
        of
        the Subsidiary Financial Statements and in the Company’s Exchange Act filings
        present fairly, in accordance with generally accepted accounting principles,
        the
        financial position of the Company and its Subsidiaries as of the dates
        indicated, and the results of their operations, cash flows and the changes
        in
        stockholders’ equity for the periods therein specified, subject, in the case of
        unaudited financial statements for interim periods, to normal year-end audit
        adjustments. The Subsidiary Financial Statements and the Company’s financial
        statements (including the related notes) have been prepared in accordance
        with
        generally accepted accounting principles applied on a consistent basis
        throughout the periods therein specified, except that unaudited financial
        statements may not contain all footnotes required by generally accepted
        accounting principles. The consolidated financial statements of Goodtime
        and the
        related notes thereto set forth on Schedule 4.28(b) present fairly, in
        accordance with generally accepted accounting principles, the consolidated
        financial position of Goodtime and its subsidiaries as of the dates indicated,
        and the results of their operations, cash flows and the changes in stockholders’
equity for the periods therein specified, subject, in the case of unaudited
        financial statements for interim periods, to normal year-end audit adjustments.
        Such consolidated financial statements (including the related notes) have
        been
        prepared in accordance with generally accepted accounting principles applied
        on
        a consistent basis throughout the periods therein specified, except that
        unaudited financial statements may not contain all footnotes required by
        generally accepted accounting principles. The unaudited pro forma financial
        statements and the related notes thereto set forth on Schedule 4.28(c), giving
        effect to the Restructuring, present fairly the information contained therein,
        have been prepared in accordance with the Commission’s rules and guidelines with
        respect to pro forma financial statements and have been properly presented
        on
        the bases described therein, and the assumptions used in the preparation
        thereof
        are reasonable and the adjustments used therein are appropriate to give effect
        to the transactions referred to therein.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      4.29         
        Sarbanes-Oxley
        Act.
        The
        Company and each of its Subsidiaries is, and at the Closing Date will be,
        in
        compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are
        applicable to it. The Company maintains a system of internal accounting controls
        that the Company and each of its Subsidiaries reasonably believes are sufficient
        to provide reasonable assurance that: (i) transactions are executed in
        accordance with management’s general or specific authorization; (ii)
        transactions are recorded as necessary to permit preparation of financial
        statements in conformity with generally accepted accounting principles and
        to
        maintain accountability for assets; (iii) access to assets is permitted only
        in
        accordance with management’s general or specific authorization; and (iv) the
        recorded accountability for assets is compared with existing assets at
        reasonable intervals and appropriate action is taken with respect to any
        differences.

       

      4.30         
        Listing.
        The
        Company has not, in the two years preceding the date hereof, received any
        notice
        (written or oral) from the New York Stock Exchange, the American Stock Exchange,
        the NASDAQ Global Market, the NASDAQ Capital Market or OTC Bulletin Board
        (each
        a “Trading Market”), or any stock exchange, market or trading facility to the
        effect that the Company is not in compliance with the listing or maintenance
        requirements of such exchange, market or trading facility. The Company shall
        comply with all requirements of any Trading Market on which the Common Stock
        and
        the Conversion Shares may be listed or quoted. The Company shall use its
        best
        efforts to have the Common Stock and the Conversion Shares traded in the
        over-the-counter market as reported by Pink Sheets, LLC (or any similar
        organization or agency succeeding to its functions of reporting prices) on
        or
        before the first date that the Registration Statement is declared effective
        by
        the Commission. 

       

      4.31         
        Foreign
        Corrupt Practices.
        Neither
        the Company, nor any of its Subsidiaries, nor, to the knowledge of the Company,
        any director, officer, agent, employee or other Person acting on behalf of
        the
        Company or any of its Subsidiaries has, in the course of its actions for,
        or on
        behalf of, the Company (i) used any corporate funds for any unlawful
        contribution, gift, entertainment or other unlawful expenses relating to
        political activity; (ii) made any direct or indirect unlawful payment to
        any
        foreign or domestic government official or employee from corporate funds;
        (iii)
        violated or is in violation of any provision of the U.S. Foreign Corrupt
        Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate,
        payoff, influence payment, kickback or other unlawful payment to any foreign
        or
        domestic government official or employee.

       

      4.32         
        Employee
        Relations.
        (a)
        Neither the Company nor any of its Subsidiaries is a party to any collective
        bargaining agreement or employs any member of a union. The Company and its
        Subsidiaries believe that their relations with their employees are good.
        No
        executive officer of the Company (as defined in Rule 501(f) of the Securities
        Act) has notified the Company that such officer intends to leave the Company
        or
        otherwise terminate such officer’s employment with the Company. No executive
        officer of the Company, to the knowledge of the Company, is, or is now expected
        to be, in violation of any material term of any employment contract,
        confidentiality, disclosure or proprietary information agreement,
        non-competition agreement, or any other contract or agreement or any restrictive
        covenant between such person and the Company or any of its Subsidiaries,
        and the
        continued employment of each such executive officer does not subject the
        Company
        or any of its Subsidiaries to any liability with respect to any of the foregoing
        matters.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      4.33         
        ERISA.
        The
        Company is in compliance, in all material respects, with all presently
        applicable provisions of the Employee Retirement Income Security Act of 1974,
        as
        amended, including the regulations and published interpretations thereunder
        (“ERISA”); no “reportable event” (as defined in ERISA) has occurred with respect
        to any “pension plan” (as defined in ERISA) for which the Company would have any
        liability; the Company has not incurred and does not expect to incur liability
        under (i) Title (IV) of ERISA with respect to termination of, or withdrawal
        from, any “pension plan” or (ii) Sections 412 or 4917 of the Internal Revenue
        Code of 1986, as amended, including the regulations and published
        interpretations thereunder (the “Code”); and each “pension plan” for which the
        Company would have any liability that is intended to be qualified under Section
        401(a) of the Code is so qualified in all material respects and nothing has
        occurred, whether by action or by failure to act, which, in each case, would
        cause the loss of such qualification, except as would not reasonably be expected
        to have a Material Adverse Effect.

       

      4.34         
        Environmental
        Matters.
        There
        has been no storage, disposal, generation, manufacture, transportation, handling
        or treatment of toxic wastes, hazardous wastes or hazardous substances by
        the
        Company or to its knowledge, any of its Subsidiaries (or, to the knowledge
        of
        the Company, any of their predecessors in interest) at, upon or from any
        of the
        property now or previously owned or leased by the Company or any of its
        Subsidiaries in violation of any applicable law, ordinance, rule, regulation,
        order, judgment, decree or permit or which would require remedial action
        under
        any applicable law, ordinance, rule, regulation, order, judgment, decree
        or
        permit; there has been no material spill, discharge, leak, emission, injection,
        escape, dumping or release of any kind into such property or into the
        environment surrounding such property of any toxic wastes, medical wastes,
        solid
        wastes, hazardous wastes or hazardous substances due to or caused by the
        Company
        or any of its Subsidiaries or with respect to which the Company or any of
        its
        Subsidiaries have knowledge; the terms “hazardous wastes”, “toxic wastes”,
“hazardous substances”, and “medical wastes” shall have the meanings specified
        in any applicable local, state, federal and foreign laws or regulations with
        respect to environmental protection.

       

      4.35         
        Equal
        Treatment of Purchasers.
        Each
        Purchaser has entered into the Agreement on materially equivalent terms.
        No
        consideration shall be offered or paid to any person to amend or consent
        to a
        waiver or modification of any provision of any of this Agreement unless the
        same
        consideration is also offered to all of the parties to the Agreements. For
        clarification purposes, this provision constitutes a separate right granted
        to
        each Purchaser by the Company and negotiated separately by each Purchaser,
        and
        is intended to treat for the Company the Purchasers as a class and shall
        not in
        any way be construed as the Purchasers acting in concert or as a group with
        respect to the purchase, disposition or voting of the Shares and the Conversion
        Shares or otherwise.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      4.36         
        No
        Integration.
        Neither
        the Company, nor any of its affiliates, nor, to the Company’s knowledge, any
        person acting on its or their behalf has, directly or indirectly, made any
        offers or sales of any security or solicited any offers to buy any security
        that
        would cause this offering of the Shares to be integrated with prior offerings
        by
        the Company for purposes of the Securities Act or any applicable stockholder
        approval provisions nor will the Company or any of its subsidiaries take
        any
        action or steps that would cause the offering of the Shares to be integrated
        with other offerings.

       

      4.37         
        No
        Fiduciary Duty.
        The
        Placement Agent and the Purchaser are acting as principals and not as an
        agent
        or fiduciary of the Company and each of its Subsidiaries and the engagement
        of
        Merriman Curhan Ford & Co. in connection with the offering of the Shares is
        as independent contractors and not in any other capacity. Furthermore, the
        Company agrees that it is solely responsible for independently making its
        own
        judgments in connection with the offering of the Shares (irrespective of
        whether
        any Placement Agent or the Purchaser has advised or are currently advising
        the
        Company on related or other matters).

       

      SECTION
        5.         Representations,
        Warranties and Covenants of the Purchaser.
        i)The
        Purchaser represents and warrants to, and covenants with, the Company that:
        (i)
        the Purchaser is knowledgeable, sophisticated and experienced in making,
        and is
        qualified to make, decisions with respect to investments in shares representing
        an investment decision like that involved in the purchase of the Shares,
        including investments in securities issued by the Company and comparable
        entities, and the Purchaser has undertaken an independent analysis of the
        merits
        and the risks of an investment in the Shares, based on the Purchaser’s own
        financial circumstances; (ii) the Purchaser has had the opportunity to request,
        receive, review and consider all information it deems relevant in making
        an
        informed decision to purchase the Shares and to ask questions of, and receive
        answers from, the Company concerning such information; (iii) the Purchaser
        is
        acquiring the number of Shares set forth in Section 2 above in the ordinary
        course of its business and for its own account for investment only and with
        no
        present intention of distributing any of such Shares or any arrangement or
        understanding with any other persons regarding the distribution of such Shares
        (this representation and warranty not limiting the Purchaser’s right to sell
        pursuant to the Registration Statement or in compliance with the Securities
        Act
        and the Rules and Regulations, or, other than with respect to any claims
        arising
        out of a breach of this representation and warranty, the Purchaser’s right to
        indemnification under Section 7.3); (iv) the Purchaser will not, directly
        or
        indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit
        any offers to buy, purchase or otherwise acquire or take a pledge of) any
        of the
        Shares, nor will the Purchaser engage in any short sale that results in a
        disposition of any of the Shares by the Purchaser, except in compliance with
        the
        Securities Act and the Rules and Regulations and any applicable state securities
        laws; (v) the Purchaser has completed or caused to be completed the Registration
        Statement Questionnaire attached hereto as part of Appendix I, for use in
        preparation of the Registration Statement, and the answers thereto are true
        and
        correct as of the date hereof and will be true and correct as of the effective
        date of the Registration Statement and the Purchaser will notify the Company
        immediately of any material change in any such information provided in the
        Registration Statement Questionnaire until such time as the Purchaser has
        sold
        all of its Shares or Conversion Shares or until the Company is no longer
        required to keep the Registration Statement effective; (vi) the Purchaser
        has,
        in connection with its decision to purchase the number of Shares set forth
        in
        Section 2 above, relied solely upon the Company Documents and the documents
        included therein or incorporated by reference and the representations and
        warranties of the Company contained herein, the Purchaser has not relied
        on the
        Placement Agent in negotiating the terms of its investment in the Shares
        and, in
        making a decision to purchase the Shares, the Purchaser has not received
        or
        relied on any communication, investment advice or recommendation from the
        Placement Agent; (vii) the Purchaser has had an opportunity to discuss this
        investment with representatives of the Company and ask questions of them;
        (viii)
        the Purchaser is an institutional “accredited investor” within the meaning of
        Rule 501(a) of Regulation D promulgated under the Securities Act; and (ix)
        the
        Purchaser agrees to notify the Company immediately of any change in any of
        the
        foregoing information until such time as the Purchaser has sold all of its
        Shares or Conversion Shares or the Company is no longer required to keep
        the
        Registration Statement effective.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      (b)   
             The
        Purchaser understands that the Shares are being offered and sold to it in
        reliance upon specific exemptions from the registration requirements of the
        Securities Act, the Rules and Regulations and state securities laws and that
        the
        Company is relying upon the truth and accuracy of, and the Purchaser’s
        compliance with, the representations, warranties, agreements, acknowledgments
        and understandings of the Purchaser set forth herein in order to determine
        the
        availability of such exemptions and the eligibility of the Purchaser to acquire
        the Shares.

       

      (c)    
            For
        the
        benefit of the Company, the Purchaser previously agreed orally with the
        Placement Agent to keep confidential all information concerning this private
        placement. The Purchaser understands that the existence and nature of all
        conversations and presentations, if any, regarding the Company and this offering
        must be kept strictly confidential. The Purchaser understands that the federal
        securities laws impose restrictions on trading based on information regarding
        this offering. In addition, the Purchaser hereby acknowledges that unauthorized
        disclosure of information regarding this offering may result in a violation
        of
        Regulation FD. This obligation will terminate upon the filing by the Company
        of
        a press release or press releases describing this offering. In addition to
        the
        above, the Purchaser shall maintain in confidence the receipt and content
        of any
        notice of a Suspension (as defined in Section 5(h) below). The foregoing
        agreements shall not apply to any information that is or becomes publicly
        available through no fault of the Purchaser, or that the Purchaser is legally
        required to disclose; provided, however, that if the Purchaser is requested
        or
        ordered to disclose any such information pursuant to any court or other
        government order or any other applicable legal procedure, it shall provide
        the
        Company with prompt notice of any such request or order in time sufficient
        to
        enable the Company to seek an appropriate protective order.

       

      (d)    
             The
        Purchaser understands that its investment in the Shares involves a significant
        degree of risk, including a risk of total loss of the Purchaser’s investment,
        and the Purchaser has full cognizance of and understands all of the risk
        factors
        related to the Purchaser’s purchase of the Shares. The Purchaser understands
        that the market price of the Common Stock can be volatile and that no
        representation is being made as to the future value of the Common Stock.
        The
        Purchaser has the knowledge and experience in financial and business matters
        as
        to be capable of evaluating the merits and risks of an investment in the
        Shares
        and has the ability to bear the economic risks of an investment in the Shares.
        

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      (e)  
               The
        Purchaser understands that no United States federal or state agency or any
        other
        government or governmental agency has passed upon or made any recommendation
        or
        endorsement of the Shares or the Conversion Shares. 

       

      (f)    
              The
        Purchaser understands that, until such time as the Registration Statement
        has
        been declared effective or the Shares or the Conversion Shares may be sold
        pursuant to Rule 144 under the Securities Act without any restriction as
        to the
        number of securities as of a particular date that can then be immediately
        sold,
        the Shares or the Conversion Shares will bear a restrictive legend in
        substantially the following form:

       

      “The
        securities evidenced by this certificate have not been registered under the
        Securities Act of 1933, as amended (the “Securities Act”), or the securities
        laws of any state or other jurisdiction. The securities may not be offered,
        sold, pledged or otherwise transferred except (1) pursuant to an exemption
        from
        registration under the Securities Act or (2) pursuant to an effective
        registration statement under the Securities Act, in each case in accordance
        with
        all applicable securities laws of the United States and other jurisdictions,
        and
        in the case of a transaction exempt from registration, unless the Company
        has
        received an opinion of counsel reasonably satisfactory to it that such
        transaction does not require registration under the Securities Act and such
        other applicable laws.”

       

      (g)      
           The
        Purchaser’s principal executive offices are in the jurisdiction set forth
        immediately below the Purchaser’s name on the signature pages hereto.

       

      (h)     
           The
        Purchaser hereby covenants with the Company not to make any sale of the
        Conversion Shares under the Registration Statement without complying with
        the
        provisions of this Agreement and without effectively causing the prospectus
        delivery requirement under the Securities Act to be satisfied (whether
        physically or through compliance with Rule 172 under the Securities Act or
        any
        similar rule), and the Purchaser acknowledges and agrees that such Conversion
        Shares are not transferable on the books of the Company unless the certificate
        submitted to the transfer agent evidencing the Conversion Shares is accompanied
        by a separate Purchaser’s Certificate of Subsequent Sale: (i) in the form of
        Appendix II hereto, (ii) executed by an officer of, or other authorized person
        designated by, the Purchaser, and (iii) to the effect that (A) the Conversion
        Shares have been sold in accordance with the Registration Statement, or the
        Shares and the Conversion Shares have been sold in accordance with the
        Securities Act and any applicable state securities or blue sky laws and (B)
        the
        prospectus delivery requirement of effectively has been satisfied. The Purchaser
        will notify the Company promptly after the sale of all of its Shares and/or
        Conversion Shares. The Purchaser acknowledges that there may occasionally
        be
        times when the Company must suspend the use of the Prospectus forming a part
        of
        the Registration Statement (a “Suspension”) until such time as an amendment to
        the Registration Statement has been filed by the Company and declared effective
        by the Commission, or until such time as the Company has filed an appropriate
        report with the Commission pursuant to the Exchange Act. Without the Company’s
        prior written consent, which consent shall not be unreasonably withheld or
        delayed, the Purchaser shall not use any written materials to offer the
        Conversion Shares for resale other than the prospectus provided by the Company,
        and shall not create or disseminate any “free writing prospectus” (as defined in
        the Rules and Regulations) relating to the Conversion Shares. The Purchaser
        hereby covenants that it will not sell any Conversion Shares pursuant to
        said
        Prospectus during the period commencing at the time at which the Company
        gives
        the Purchaser written notice of the Suspension of the use of said Prospectus
        and
        ending at the time the Company gives the Purchaser written notice that the
        Purchaser may thereafter effect sales pursuant to said Prospectus.
        Notwithstanding the foregoing, the Company agrees that no Suspension shall
        be
        for a period of longer than 60 consecutive days, and no Suspensions shall
        be for
        a period of longer than 90 days in the aggregate in any 12-month
        period.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      (i)        
          The
        Purchaser further represents and warrants to, and covenants with, the Company
        that (i) the Purchaser has full right, power, authority and capacity to enter
        into this Agreement and to consummate the transactions contemplated hereby
        and
        has taken all necessary action to authorize the execution, delivery and
        performance of this Agreement, (ii) the making and performance of this Agreement
        by the Purchaser and the consummation of the transactions herein contemplated
        will not violate any provision of the organizational documents of the Purchaser
        or conflict with, result in the breach or violation of, or constitute, either
        by
        itself or upon notice or the passage of time or both, a default under any
        material agreement, mortgage, deed of trust, lease, franchise, license,
        indenture, permit or other instrument to which the Purchaser is a party,
        or any
        statute or any authorization, judgment, decree, order, rule or regulation
        of any
        court or any regulatory body, administrative agency or other governmental
        body
        applicable to the Purchaser, (iii) no consent, approval, authorization or
        other
        order of any court, regulatory body, administrative agency or other governmental
        body is required on the part of the Purchaser for the execution and delivery
        of
        this Agreement or the consummation of the transactions contemplated by this
        Agreement, (iv) upon the execution and delivery of this Agreement, this
        Agreement shall constitute a legal, valid and binding obligation of the
        Purchaser, enforceable in accordance with its terms, except as enforceability
        may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
        or similar laws affecting creditors’ and contracting parties’ rights generally
        and except as enforceability may be subject to general principles of equity
        (regardless of whether such enforceability is considered in a proceeding
        in
        equity or at law) and except to the extent enforcement of the indemnification
        provisions, set forth in Section 7.3 of this Agreement, may be limited by
        federal or state securities laws or the public policy underlying such laws,
        and
        (v) there is not in effect any order enjoining or restraining the Purchaser
        from
        entering into or engaging in any of the transactions contemplated by this
        Agreement. 

       

      SECTION
        6.         Survival
        of Representations, Warranties and Agreements.
        Notwithstanding any investigation made by any party to this Agreement or
        by the
        Placement Agent, all covenants, agreements, representations and warranties
        made
        by the Company, each of its Subsidiaries and the Purchaser herein and in
        the
        certificates for the Shares delivered pursuant hereto shall survive the
        execution of this Agreement, the delivery to the Purchaser of the Shares
        being
        purchased and the payment therefore. 

       

      SECTION
        7.         Registration
        of the Shares; Compliance with the Securities Act. 

       

      
        	 	
                7.1

              	
                Registration
                  Procedures and Expenses.
                   The
                  Company shall: 

              

      

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      (a)     
            as
        soon
        as reasonably practicable, but in no event later than 30 days following the
        Closing Date (the “Filing Date”), prepare and file with the Commission the
        Registration Statement on Form S-1 or Form SB-2 relating to the sale of the
        Conversion Shares by the Purchaser and the Other Purchasers from time to
        time in
        the over-the-counter market as reported by Pink Sheets, LLC (or any similar
        organization or agency succeeding to its functions of reporting prices) or
        the
        facilities of any Trading Market on which the Common Stock is then traded
        or in
        privately-negotiated transactions;

       

      (b)        
        use
        its
        best efforts, subject to receipt of necessary information from the Purchasers,
        to cause the Commission to declare the Registration Statement effective within
        150 days after the Closing Date (the “Required Effective Date”);

       

      (c)         
        use
        its
        best efforts to promptly prepare and file with the Commission such amendments
        and supplements to the Registration Statement and the prospectus used in
        connection therewith as may be necessary to keep the Registration Statement
        effective
        until
        the earliest of (i) two years after the effective date of the Registration
        Statement, (ii) the date all Conversion Shares are sold pursuant to the
        Registration Statement, or (iii) such time as the Conversion Shares become
        eligible for resale by non-affiliates pursuant to Rule 144(k) under the
        Securities Act of 1933, as amended;

       

      (d)        
        furnish
        to the Purchaser with respect to the Conversion Shares registered under the
        Registration Statement (and to each underwriter, if any, of such Conversion
        Shares) such number of copies of prospectuses and such other documents as
        the
        Purchaser may reasonably request, in order to facilitate the public sale
        or
        other disposition of all or any of the Conversion Shares by the Purchaser;
        

       

      (e)         
        file
        documents required of the Company for normal Blue Sky clearance in states
        specified in writing by the Purchaser; provided,
        however,
        that
        the Company shall not be required to qualify to do business or consent to
        service of process in any jurisdiction in which it is not now so qualified
        or
        has not so consented; 

       

      (f)         
        bear
        all
        expenses in connection with the procedures in paragraphs (a) through (e)
        of this
        Section 7.1 and the registration of the Conversion Shares pursuant to the
        Registration Statement, other than fees and expenses, if any, of counsel
        or
        other advisers to the Purchaser or the Other Purchasers or underwriting
        discounts, brokerage fees and commissions incurred by the Purchaser or the
        Other
        Purchasers, if any;

       

      (g)        
        file
        a
        Form D with respect to the Shares as required under Regulation D and to provide
        a copy thereof to the Purchaser promptly after filing;

       

      (h)         issue
        a
        press release or a Current Report on Form 8-K as may be required under the
        Exchange Act describing the transactions contemplated by this Agreement and
        the
        Restructuring Documents on the Closing Date; and

       

      (i)         
        make
        available, while the Registration Statement is effective and available for
        resale, its Chief Executive Officer, Chief Financial Officer, and Chief
        Administrative Officer for questions regarding information which the Purchaser
        may reasonably request in order to fulfill any due diligence obligation on
        its
        part.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      The
        Company understands that the Purchaser disclaims being an underwriter, but
        the
        Purchaser being deemed an underwriter shall not relieve the Company of any
        obligations it has hereunder. A questionnaire related to the Registration
        Statement to be completed by the Purchaser is attached hereto as Appendix
        I. 

       

      7.2           
        Transfer
        of Shares and Conversion Shares After Registration.
        The
        Purchaser agrees that it will not effect any disposition of the Shares or
        the
        Conversion Shares or its right to purchase the Shares or the Conversion Shares
        that would constitute a sale within the meaning of the Securities Act or
        any
        applicable state securities laws, except as contemplated in the Registration
        Statement referred to in Section 7.1 or as otherwise permitted by law, and
        that
        it will promptly notify the Company of any changes in the information set
        forth
        in the Registration Statement regarding the Purchaser or its plan of
        distribution. 

       

      
        	 	
                7.3

              	
                Indemnification.
                  For the purpose of this Section 7.3:

              

      

       

      (i)   the
        term
“Purchaser/Affiliate” shall mean any affiliate of the Purchaser, including a
        transferee who is an affiliate of the Purchaser, and any person who controls
        the
        Purchaser or any affiliate of the Purchaser within the meaning of Section
        15 of
        the Securities Act or Section 20 of the Exchange Act; and

       

      (ii) 
        the
        term
“Registration Statement” shall include any preliminary prospectus, final
        prospectus, free writing prospectus, exhibit, supplement or amendment included
        in or relating to, and any document incorporated by reference in, the
        Registration Statement referred to in Section 7.1. 

       

      (a)         
        The
        Company agrees to indemnify and hold harmless each Purchaser and each
        Purchaser/Affiliate against any losses, claims, damages, liabilities or
        expenses, joint or several, to which such Purchaser or Purchaser/Affiliate
        may
        become subject, under the Securities Act, the Exchange Act, or any other
        federal
        or state statutory law or regulation, or at common law or otherwise (including
        in settlement of any litigation, if such settlement is effected with the
        prior
        written consent of the Company), insofar as such losses, claims, damages,
        liabilities or expenses (or actions in respect thereof as contemplated below)
        arise out of or are based upon any untrue statement or alleged untrue statement
        of any material fact contained in the Registration Statement, including the
        Prospectus, financial statements and schedules, and all other documents filed
        as
        a part thereof, as amended at the time of effectiveness of the Registration
        Statement, including any information deemed to be a part thereof as of the
        time
        of effectiveness pursuant to paragraph (b) of Rule 430A, or pursuant to Rules
        430B, 430C or 434, of the Rules and Regulations, or the Prospectus, in the
        form
        first filed with the Commission pursuant to Rule 424(b) of the Regulations,
        or
        filed as part of the Registration Statement at the time of effectiveness
        if no
        Rule 424(b) filing is required, or any amendment or supplement thereto, or
        arise
        out of or are based upon the omission or alleged omission to state in any
        of
        them a material fact required to be stated therein or necessary to make the
        statements in any of them, in light of the circumstances under which they
        were
        made, not misleading, or arise out of or are based in whole or in part on
        any
        inaccuracy in the representations or warranties of the Company contained
        in this
        Agreement, or any failure of the Company to perform its obligations hereunder
        or
        under law, and will promptly reimburse each such Purchaser and each such
        Purchaser/Affiliate for any legal and other expenses as such expenses are
        reasonably incurred by such Purchaser or such Purchaser/Affiliate in connection
        with investigating, defending or preparing to defend, settling, compromising
        or
        paying any such loss, claim, damage, liability, expense or action; provided,
        however,
        that
        the Company will not be liable in any such case to the extent, but only to
        the
        extent, that any such loss, claim, damage, liability or expense arises out
        of or
        is based upon (i) an untrue statement or alleged untrue statement or omission
        or
        alleged omission made in the Registration Statement, the Prospectus or any
        amendment or supplement thereto in reliance upon and in conformity with written
        information furnished to the Company by or on behalf of the Purchaser expressly
        for use therein, or (ii) the failure of such Purchaser to comply with the
        covenants and agreements contained in Sections 5 or 7.2, or (iii) the inaccuracy
        of any representation or warranty made by such Purchaser herein or (iv) any
        statement or omission in any Prospectus that is corrected in any subsequent
        Prospectus that was delivered to the Purchaser prior to the pertinent sale
        or
        sales by the Purchaser.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      (b)        
        Each
        Purchaser will severally indemnify and hold harmless the Company, each of
        its
        directors, each of its executive officers, including such officers who signed
        the Registration Statement, and each person, if any, who controls the Company
        within the meaning of Section 15 of the Securities Act or Section 20 of the
        Exchange Act, against any losses, claims, damages, liabilities or expenses
        to
        which the Company, each of its directors, each of its officers who signed
        the
        Registration Statement or controlling person may become subject, under the
        Securities Act, the Exchange Act, or any other federal or state statutory
        law or
        regulation, or at common law or otherwise (including in settlement of any
        litigation, if such settlement is effected with the written consent of such
        Purchaser) insofar as such losses, claims, damages, liabilities or expenses
        (or
        actions in respect thereof as contemplated below) arise out of or are based
        upon
        (i) any failure to comply with the covenants and agreements contained in
        Sections 5 or 7.2 hereof, or (ii) the inaccuracy of any representation or
        warranty made by such Purchaser herein, or (iii) any untrue or alleged untrue
        statement of any material fact contained in the Registration Statement, the
        Prospectus, or any amendment or supplement thereto, or arise out of or are
        based
        upon the omission or alleged omission to state therein a material fact required
        to be stated therein or necessary to make the statements therein not misleading,
        in each case to the extent, but only to the extent, that such untrue statement
        or alleged untrue statement or omission or alleged omission was made in the
        Registration Statement, the Prospectus, or any amendment or supplement thereto,
        in reliance upon and in conformity with written information furnished to
        the
        Company by or on behalf of any Purchaser expressly for use therein, and will
        reimburse the Company, each of its directors, each of its officers who signed
        the Registration Statement or controlling person for any legal and other
        expense
        reasonably incurred by the Company, each of its directors, each of its officers
        who signed the Registration Statement or controlling person in connection
        with
        investigating, defending, settling, compromising or paying any such loss,
        claim,
        damage, liability, expense or action. 

       

      (c)         
        Promptly
        after receipt by an indemnified party under this Section 7.3 of notice of
        the
        threat or commencement of any action, such indemnified party will, if a claim
        in
        respect thereof is to be made against an indemnifying party under this Section
        7.3, promptly notify the indemnifying party in writing thereof; but the omission
        so to notify the indemnifying party will not relieve it from any liability
        which
        it may have to any indemnified party for contribution or otherwise under
        the
        indemnity agreement contained in this Section 7.3 to the extent it is not
        prejudiced as a result of such failure. In case any such action is brought
        against any indemnified party and such indemnified party seeks or intends
        to
        seek indemnity from an indemnifying party, the indemnifying party will be
        entitled to participate in, and, to the extent that it may wish, jointly
        with
        all other indemnifying parties similarly notified, to assume the defense
        thereof
        with counsel reasonably satisfactory to such indemnified party; provided,
        however,
        if the
        defendants in any such action include both the indemnified party and the
        indemnifying party and the indemnified party shall have reasonably concluded,
        based on an opinion of counsel reasonably satisfactory to the indemnifying
        party, that there may be a conflict of interest between the positions of
        the
        indemnifying party and the indemnified party in conducting the defense of
        any
        such action or that there may be legal defenses available to it and/or other
        indemnified parties which are different from or additional to those available
        to
        the indemnifying party, the indemnified party or parties shall have the right
        to
        select separate counsel to assume such legal defenses and to otherwise
        participate in the defense of such action on behalf of such indemnified party
        or
        parties. Upon receipt of notice from the indemnifying party to such indemnified
        party of its election to assume the defense of such action and approval by
        the
        indemnified party of counsel, the indemnifying party will not be liable to
        such
        indemnified party under this Section 7.3 for any legal or other expenses
        subsequently incurred by such indemnified party in connection with the defense
        thereof unless (i) the indemnified party shall have employed such counsel
        in
        connection with the assumption of legal defenses in accordance with the proviso
        to the preceding sentence (it being understood, however, that the indemnifying
        party shall not be liable for the expenses of more than one separate counsel,
        reasonably satisfactory to such indemnifying party, representing all of the
        indemnified parties who are parties to such action) or (ii) the indemnifying
        party shall not have employed counsel reasonably satisfactory to the indemnified
        party to represent the indemnified party within a reasonable time after notice
        of commencement of action, in each of which cases the reasonable fees and
        expenses of counsel shall be at the expense of the indemnifying party. In
        no
        event shall any indemnifying party be liable in respect of any amounts paid
        in
        settlement of any action unless the indemnifying party shall have approved
        in
        writing the terms of such settlement; provided
        that
        such consent shall not be unreasonably withheld. No indemnifying party shall,
        without the prior written consent of the indemnified party, effect any
        settlement of any pending or threatened proceeding in respect of which any
        indemnified party is or could have been a party and indemnification could
        have
        been sought hereunder by such indemnified party from all liability on claims
        that are the subject matter of such proceeding.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      (d)        
        If
        the
        indemnification provided for in this Section 7.3 is required by its terms
        but is
        for any reason held to be unavailable to or otherwise insufficient to hold
        harmless an indemnified party under paragraphs (a), (b) or (c) of this Section
        7.3 in respect to any losses, claims, damages, liabilities or expenses referred
        to herein, then each applicable indemnifying party shall contribute to the
        amount paid or payable by such indemnified party as a result of any losses,
        claims, damages, liabilities or expenses referred to herein (i) in such
        proportion as is appropriate to reflect the relative benefits received by
        the
        Company and the Purchaser from the private placement of the Preferred Stock
        hereunder or (ii) if the allocation provided by clause (i) above is not
        permitted by applicable law, in such proportion as is appropriate to reflect
        not
        only the relative benefits referred to in clause (i) above but the relative
        fault of the Company and the Purchaser in connection with the statements
        or
        omissions or inaccuracies in the representations and warranties in this
        Agreement and/or the Registration Statement which resulted in such losses,
        claims, damages, liabilities or expenses, as well as any other relevant
        equitable considerations. The respective relative benefits received by the
        Company on the one hand and each Purchaser on the other shall be deemed to
        be in
        the same proportion as the amount paid by such Purchaser to the Company pursuant
        to this Agreement for the Shares purchased by such Purchaser that were sold
        pursuant to the Registration Statement bears to the difference (the
“Difference”) between the amount such Purchaser paid for the Shares and the
        Conversion Shares that were sold pursuant to the Registration Statement and
        the
        amount received by such Purchaser from such sale. The relative fault of the
        Company, on the one hand, and each Purchaser on the other shall be determined
        by
        reference to, among other things, whether the untrue or alleged statement
        of a
        material fact or the omission or alleged omission to state a material fact
        or
        the inaccurate or the alleged inaccurate representation and/or warranty relates
        to information supplied by the Company or by such Purchaser and the parties’
relative intent, knowledge, access to information and opportunity to correct
        or
        prevent such statement or omission. The amount paid or payable by a party
        as a
        result of the losses, claims, damages, liabilities and expenses referred
        to
        above shall be deemed to include, subject to the limitations set forth in
        paragraph (c) of this Section 7.3, any legal or other fees or expenses
        reasonably incurred by such party in connection with investigating or defending
        any action or claim. The provisions set forth in paragraph (c) of this Section
        7.3 with respect to the notice of the threat or commencement of any threat
        or
        action shall apply if a claim for contribution is to be made under this
        paragraph (d); provided,
        however,
        that no
        additional notice shall be required with respect to any threat or action
        for
        which notice has been given under paragraph (c) for purposes of indemnification.
        The Company and each Purchaser agree that it would not be just and equitable
        if
        contribution pursuant to this Section 7.3 were determined solely by pro rata
        allocation (even if the Purchaser were treated as one entity for such purpose)
        or by any other method of allocation which does not take account of the
        equitable considerations referred to in this paragraph. Notwithstanding the
        provisions of this Section 7.3, no Purchaser shall be required to contribute
        any
        amount in excess of the amount by which the Difference exceeds the amount
        of any
        damages that such Purchaser has otherwise been required to pay by reason
        of such
        untrue or alleged untrue statement or omission or alleged omission. No person
        guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
        of
        the Securities Act) shall be entitled to contribution from any person who
        was
        not guilty of such fraudulent misrepresentation. The Purchasers’ obligations to
        contribute pursuant to this Section 7.3 are several and not joint. 

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      7.4           
        Termination
        of Conditions and Obligations.
        The
        restrictions imposed by Section 5 or this Section 7 upon the transferability
        of
        the Shares and the Conversion Shares shall cease and terminate as to any
        particular number of the Shares and the Conversion Shares upon the passage
        of
        two years from the effective date of the Registration Statement covering
        such
        Conversion Shares or at such time as an opinion of counsel satisfactory in
        form
        and substance to the Company shall have been rendered to the effect that
        such
        conditions are not necessary in order to comply with the Securities Act.
        

       

      7.5           
        Information
        Available.
        So long
        as the Registration Statement is effective covering the resale of the Conversion
        Shares owned by the Purchaser, the Company will furnish to the Purchaser:
        

       

      (a)         
        as
        soon
        as practicable after available (but in the case of the Annual Report to the
        Stockholders, within 150 days after the end of each fiscal year of the Company),
        one copy of (i) its Annual Report to Stockholders (which Annual Report shall
        contain financial statements audited in accordance with generally accepted
        accounting principles by a national firm of certified public accountants),
        (ii)
        if not included in substance in the Annual Report to Stockholders, upon the
        request of Purchaser, its Annual Report on Form 10-K, (iii) upon request
        of
        Purchaser, its quarterly reports on Form 10-Q, and (iv) a full copy of the
        particular Registration Statement covering the Conversion Shares (the foregoing,
        in each case, excluding exhibits); 

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      (b)        
        upon
        the
        reasonable request of the Purchaser, a reasonable number of copies of the
        Prospectuses, and any supplements thereto, to supply to any other party
        requiring such Prospectuses; and

       

      (c)         
        the
        Company, upon the reasonable request of the Purchaser and with prior notice,
        will be available to the Purchaser or a representative thereof at the Company’s
        headquarters to discuss information relevant for disclosure in the Registration
        Statement covering the Conversion Shares and will otherwise cooperate with
        any
        Purchaser conducting an investigation for the purpose of reducing or eliminating
        such Purchaser’s exposure to liability under the Securities Act, including the
        reasonable production of information at the Company’s headquarters, subject to
        appropriate confidentiality limitations.

       

      7.6           
        Delay
        in Filing or Effectiveness of Registration Statement.
        If the
        Registration Statement is not filed by the Company with the Commission on
        or
        prior to the Filing Date, then for each day following the Filing Date, until
        but
        excluding the date the Registration Statement is filed, or if the Registration
        Statement is not declared effective by the Commission by the Required Effective
        Date, then for each day following the Required Effective Date, until but
        excluding the date the Commission declares the Registration Statement effective,
        the Company shall pay the Purchaser with respect to any such failure, as
        liquidated damages and not as a penalty, an amount per 30-day period equal
        to
        0.5% of the purchase price paid by such Purchaser for its Shares pursuant
        to
        this Agreement (pro rata on a 30 day basis); and for any such 30-day period,
        such payment shall be made no later than three business days following such
        30-day period. If the Purchaser shall be prohibited from selling Conversion
        Shares under the Registration Statement as a result of a Suspension of more
        than
        60 consecutive days or Suspensions of more than 90 days in the aggregate
        in any
        12-month period, then for each day on which a Suspension is in effect that
        exceeds the maximum allowed period for a Suspension or Suspensions, but not
        including any day on which a Suspension is lifted, the Company shall pay
        the
        Purchaser, as liquidated damages and not as a penalty, an amount per 30-day
        period equal to 0.5% of the purchase price paid by such Purchaser for its
        Shares
        pursuant to this Agreement (pro rata on a 30 day basis); and for any such
        30-day
        period, such payment shall be made no later than three business days following
        such 30-day period. For purposes of this Section 7.6, a Suspension shall
        be
        deemed lifted on the date that notice that the Suspension has been lifted
        is
        delivered to the Purchaser pursuant to Section 11 of this Agreement. Any
        payments made pursuant to this Section 7.6 shall constitute the Purchaser’s
        exclusive remedy for such events. Notwithstanding the foregoing provisions,
        in
        no event shall the Company be obligated to pay such liquidated damages (a)
        to
        more than one Purchaser in respect of the same Shares or Conversion Shares
        for
        the same period of time or (b) in an aggregate amount that exceeds 10% of
        the
        purchase price paid by such Purchase for its Shares and Conversion Shares
        pursuant to this Agreement. Such payments shall be made to the Purchaser
        in
        cash.

       

      SECTION
        8.         Register.
        The
        Company shall keep at its principal executive office a register for the
        registration and registration of transfers of the Preferred Stock. The name
        and
        address of each holder of the Preferred Stock, each transfer thereof and
        the
        name and address of each transferee of the Preferred Stock shall be registered
        in such register. Prior to due presentment for registration of transfer,
        the
        person in whose name any Preferred Stock shall be registered shall be deemed
        and
        treated as the owner and holder thereof for all purposes hereof, and the
        Company
        shall not be affected by any notice or knowledge to the contrary.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      SECTION
        9.         Covenants
        With Respect to the Preferred Stock.
        Unless
        the holders of a majority of the aggregate outstanding shares of Preferred
        Stock
        shall otherwise agree, the Company shall not: 

       

      9.1           
        take
        any
        action that may adversely alter or change the designated powers, rights,
        preferences or privileges, or impair the conversion rights, of the shares
        of
        Preferred Stock;

       

      
        	 	
                9.2

              	
                increase
                  the authorized number of shares of Preferred Stock;
                  or

              

      

       

      9.3           
        authorize
        or create (by reclassification or otherwise) any class or series of preferred
        stock of the Company with powers, rights, preferences and privileges senior
        to
        the Preferred Stock.

       

      SECTION
        10.       Broker’s
        Fee.
        The
        Purchaser acknowledges that the Company intends to pay to the Placement Agent
        a
        fee in respect of the sale of the Shares to the Purchaser. The Purchaser
        and the
        Company hereby agree that the Purchaser shall not be responsible for such
        fee
        and that the Company will indemnify and hold harmless the Purchaser and each
        Purchaser/Affiliate against any losses, claims, damages, liabilities or
        expenses, joint or several, to which such Purchaser or Purchaser/Affiliate
        may
        become subject with respect to such fee. Each of the parties hereto hereby
        represents that, on the basis of any actions and agreements by it, there
        are no
        other brokers or finders entitled to compensation in connection with the
        sale of
        the Shares to the Purchaser.

       

      SECTION
        11.       Notices.
        All
        notices required or permitted hereunder shall be in writing and shall be
        deemed
        effectively given: (i) upon delivery to the party to be notified; (ii) when
        received by confirmed facsimile or (iii) one (1) business day after deposit
        with
        a nationally recognized overnight carrier, specifying next business day
        delivery, with written verification of receipt. All communications shall
        be sent
        to the Company and the Purchaser as follows or at such other addresses as
        the
        Company or the Purchaser may designate upon ten (10) days’ advance written
        notice to the other party: 

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      
         

        
          	 	
                  (a)

                	
                  if
                    to the Company, to:

                

        

         

      

      Aces
        Wired, Inc.

      11827
        Judd Ct.,

      Dallas,
        Texas 75243

      Attention:
        President

      Facsimile:
        972-238-7652

       

      with
        a
        copy to:

       

      Thompson
        & Knight LLP

      333
        Clay
        Street

      Suite
        3300

      Houston,
        Texas 77002

      Attention:
        William T. Heller IV

      Facsimile:
        832-397-8071

      

      (b)        
        if
        to the
        Purchaser, at its address as set forth at the end of this
        Agreement.

       

      SECTION
        12.       Changes.
        This
        Agreement may not be modified or amended except pursuant to an instrument
        in
        writing signed by the Company and the Purchaser. No provision hereunder may
        be
        waived other than in a written instrument executed by the waiving
        party.

       

      SECTION
        13.       Headings.
        The
        headings of the various sections of this Agreement have been inserted for
        convenience of reference only and shall not be deemed to be part of this
        Agreement. 

       

      SECTION
        14.       Severability.
        In case
        any provision contained in this Agreement should be invalid, illegal or
        unenforceable in any respect, the validity, legality and enforceability of
        the
        remaining provisions contained herein shall not in any way be affected or
        impaired thereby. 

       

      14.1         
        Governing
        Law.
        This
        Agreement is to be construed in accordance with and governed by the federal
        law
        of the United States of America and the internal laws of the State of New
        York
        without giving effect to any choice of law rule that would cause the application
        of the laws of any jurisdiction other than the internal laws of the State
        of New
        York to the rights and duties of the parties. Each of the Company and the
        Purchaser submits to the nonexclusive jurisdiction of the United States District
        Court for the Southern District of New York and of any New York State court
        sitting in New York County for purposes of all legal proceedings arising
        out of
        or relating to this Agreement and the transactions contemplated hereby. Each
        of
        the Company and the Purchaser irrevocably waives, to the fullest extent
        permitted by law, any objection that it may now or hereafter have to the
        laying
        of the venue of any such proceeding brought in such a court and any claim
        that
        any such proceeding brought in such a court has been brought in an inconvenient
        forum.

       

      SECTION
        15.       Counterparts.
        This
        Agreement may be executed in two or more counterparts, each of which shall
        constitute an original, but all of which, when taken together, shall constitute
        but one instrument, and shall become effective when one or more counterparts
        have been signed by each party hereto and delivered (including by facsimile)
        to
        the other parties.

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      SECTION
        16.       Entire
        Agreement.
        This
        Agreement and the instruments referenced herein contain the entire understanding
        of the parties with respect to the matters covered herein and therein and,
        except as specifically set forth herein or therein, neither the Company nor
        the
        Purchaser makes any representation, warranty, covenant or undertaking with
        respect to such matters.

       

      SECTION
        17.       Assignment.
        Except
        as otherwise expressly provided herein, the provisions hereof shall inure
        to the
        benefit of, and be binding upon, the parties hereto and their respective
        permitted successors, assigns, heirs, executors and administrators. This
        Agreement and the rights of the Purchaser hereunder may be assigned by the
        Purchaser with the prior written consent of the Company, except such consent
        shall not be required in cases of assignments by an investment adviser to
        a fund
        for which it is the adviser or by or among funds that are under common control,
        provided that such assignee agrees to be bound by the terms of this
        Agreement.

       

      SECTION
        18.       Further
        Assurances.
        Each
        party agrees to cooperate fully with the other parties and to execute such
        further instruments, documents and agreements and to give such further written
        assurance as may be reasonably requested by any other party to evidence and
        reflect the transactions described herein and contemplated hereby and to
        carry
        into effect the intents and purposes of this Agreement.

       

      SECTION
        19.       Independent
        Nature of Purchasers’ Obligations and Rights.
        The
        obligations of the Purchaser under this Agreement are several and not joint
        with
        the obligations of any Other Purchaser, and no Purchaser shall be responsible
        in
        any way for the performance of the obligations of any Other Purchaser under
        the
        Agreements. The decision of each Purchaser to purchase the Shares pursuant
        to
        the Agreements has been made by such Purchaser independently of any other
        Purchaser. Nothing contained in the Agreements, and no action taken by any
        Purchaser pursuant thereto, shall be deemed to constitute the Purchasers
        as a
        partnership, an association, a joint venture or any other kind of entity,
        or
        create a presumption that the Purchasers are in any way acting in concert
        or as
        a group with respect to such obligations or the transactions contemplated
        by the
        Agreements. Each Purchaser acknowledges that no other Purchaser has acted
        as
        agent for such Purchaser in connection with making its investment hereunder
        and
        that no Purchaser will be acting as agent of such Purchaser in connection
        with
        monitoring its investment in the Shares or enforcing its rights under this
        Agreement. Each Purchaser shall be entitled to independently protect and
        enforce
        its rights, including without limitation the rights arising out of this
        Agreement, and it shall not be necessary for any other Purchaser to be joined
        as
        an additional party in any proceeding for such purpose.

      
 

       

      [Remainder
        of Page Left Intentionally Blank]

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
        by
        their duly authorized representatives as of the day and year first above
        written.

       

      
        	 	
                ACES
                  WIRED, INC.

              
	 	 
	 	 
	 	
                By:

              	 
	 	 	
                Name:

              
	 	 	
                Title:

              

      

      

      
        	
                Print
                  or Type:

              	 	 
	 	
                Name
                  of Purchaser

              	 
	 	
                (Individual
                  or Institution):

              	 
	 	 	 
	 	 	 
	 	 	 
	 	
                Name
                  of Individual representing

              	 
	 	
                Purchaser
                  (if an Institution):

              	 
	 	 	 
	 	 	 
	 	 	 
	 	
                Title
                  of Individual representing

              	 
	 	
                Purchaser
                  (if an Institution):

              	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                Signature
                  by:

              	 	 
	 	
                Individual
                  Purchaser or Individual 

              	 
	 	representing
                Purchaser:	 
	 	 	 
	 	 	 

      

      

      
        	 	
                Address:

              	 
	 	 	 
	 	
                Telephone:

              	 
	 	 	 
	 	
                Telecopier:

              	 

      

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      SUMMARY
        INSTRUCTION SHEET FOR PURCHASER

       

      (to
        be
        read in conjunction with the entire

      Purchase
        Agreement which this follows)

       

      A. Complete
        the following items on BOTH
        Purchase
        Agreements (Please sign two
        originals):

      

        
          	 	
                  1.

                	
                  Signature
                    Page:

                

        

      

       

      
        	 	
                (i)

              	
                Name
                  of Purchaser (Individual or
                  Institution)

              

      

       

      
        	 	
                (ii)

              	
                Name
                  of Individual representing Purchaser (if an
                  Institution)

              

      

       

      
        	 	
                (iii)

              	
                Title
                  of Individual representing Purchaser (if an
                  Institution)

              

      

       

      
        	 	
                (iv)

              	
                Signature
                  of Individual Purchaser or Individual representing
                  Purchaser

              

      

       

      
        	 	
                2.

              	
                Appendix
                  I - Stock Certificate Questionnaire/Registration Statement
                  Questionnaire:

              

      

       

      Provide
        the information requested by the Stock Certificate Questionnaire and the
        Registration Statement Questionnaire.

       

      
        	 	
                3.

              	
                Return
                  BOTH
                  properly completed and signed Purchase Agreements including the
                  properly
                  completed Appendix I to (initially by facsimile with hand copy
                  by
                  overnight delivery):

              

      

       

      Merriman
        Curhan Ford & Co.

      600
        California St, 9th floor

      San
        Francisco, CA 94108

      Facsimile:

      Attn:
        _______________________

      

      B.     Instructions
        regarding the transfer of funds for the purchase of Shares will be sent by
        facsimile to the Purchaser by the Placement Agent at a later date.

       

      C.     Upon
        the
        resale of the Conversion Shares by the Purchasers after the Registration
        Statement covering the Conversion Shares is effective, as described in the
        Purchase Agreement, the Purchaser:

       

      
        	 	
                (i)

              	
                must
                  effectively cause the prospectus delivery requirement under the
                  Securities
                  Act to be satisfied (whether physically or through compliance with
                  Rule
                  172 under the Securities Act or any similar rule);
                  AND

              

      

       

      
        	 	
                (ii)

              	
                must
                  send a letter in the form of Appendix II to the Company so that
                  the
                  Conversion Shares may be properly
                  transferred.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Appendix
        I

      (Page
        1
        of 3)

      

      STOCK
        CERTIFICATE QUESTIONNAIRE

       

      Pursuant
        to Section 3 of the Agreement, please provide us with the following information:
        

       

      
        	
                1.

              	
                The
                  exact name that your Shares are to be registered in (this is the
                  name that
                  will appear on your stock certificate(s)). You may use a nominee
                  name if
                  appropriate:

              	 	 
	 	 	 	 
	
                2.

              	
                The
                  relationship between the Purchaser of the Shares and the Registered
                  Holder
                  listed in response to item 1 above:

              	 	 
	 	 	 	 
	
                3.

              	
                The
                  mailing address of the Registered Holder listed in response to
                  item 1
                  above:

              	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                4.

              	
                The
                  Social Security Number or Tax Identification Number of the Registered
                  Holder listed in response to item 1 above:

              	 	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Appendix
        I

      (Page
        2
        of 3)

      

       

      REGISTRATION
        STATEMENT QUESTIONNAIRE

       

      In
        connection with the preparation of the Registration Statement, please provide
        us
        with the following information:

       

      SECTION
        1. Pursuant
        to the “Selling Stockholder” section of the Registration Statement, please state
        your or your organization’s name exactly as it should appear in the Registration
        Statement:

       

      SECTION
        2. Please
        provide the number of securities that you or your organization will own
        immediately after Closing, including those Shares purchased by you or your
        organization pursuant to this Purchase Agreement and those shares purchased
        by
        you or your organization through other transactions and provide the number
        of
        securities that you have or your organization has the right to acquire within
        60
        days of Closing: 

       

      SECTION
        3. Have
        you
        or your organization had any position, office or other material relationship
        within the past three years with the Company or its affiliates? 

       

      
        	 	 	
                Yes

              	 	 	
                No
                  

              	 

      

      

       

      If
        yes,
        please indicate the nature of any such relationships below: 

       

      
        
          

        

      

    

     

    
      

    

     

    
    

    
      
 

    SECTION
      4. Are
      you
      (i) an NASD Member (see definition), (ii) a Controlling (see definition)
      shareholder of an NASD Member, (iii) a Person Associated with a Member of the
      NASD (see definition), or (iv) an Underwriter or a Related Person (see
      definition) with respect to the proposed offering; or (b) do you own any shares
      or other securities of any NASD Member not purchased in the open market; or
      (c)
      have you made any outstanding subordinated loans to any NASD
      Member?

     

    Answer: 
      o  Yes 
o 
      No    If
“yes,”
      please describe below

     

    
      
 

      
 

    
      
 

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Appendix
      I

    (Page
      3
      of 3)

     

    NASD
      Member.
      The
      term “NASD member” means either any broker or dealer admitted to membership in
      the National Association of Securities Dealers, Inc. (“NASD”). (NASD Manual,
      By-laws Article I, Definitions)

     

    Control.
      The
      term “control” (including the terms “controlling,” “controlled by” and “under
      common control with”) means the possession, direct or indirect, of the power,
      either individually or with others, to direct or cause the direction of the
      management and policies of a person, whether through the ownership of voting
      securities, by contract, or otherwise. (Rule 405 under the Securities Act of
      1933, as amended)

     

    Person
      Associated with a member of the NASD.
      The
      term “person associated with a member of the NASD” means every sole proprietor,
      partner, officer, director, branch manager or executive representative of any
      NASD Member, or any natural person occupying a similar status or performing
      similar functions, or any natural person engaged in the investment banking
      or
      securities business who is directly or indirectly controlling or controlled
      by a
      NASD Member, whether or not such person is registered or exempt from
      registration with the NASD pursuant to its bylaws. (NASD Manual, By-laws Article
      I, Definitions)

     

    Underwriter
      or a Related Person.
      The
      term “underwriter or a related person” means, with respect to a proposed
      offering, underwriters, underwriters’ counsel, financial consultants and
      advisors, finders, members of the selling or distribution group, and any and
      all
      other persons associated with or related to any of such persons. (NASD
      Interpretation)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    APPENDIX
      II

    [Transfer
      Agent]

    [____________]

    [____________]

     

    Attention:

     

    PURCHASER’S
      CERTIFICATE OF SUBSEQUENT SALE

     

    The
      undersigned, [an officer of, or other person duly authorized by]

     

    
      	 
	
              [fill
                in official name of individual or
                institution]

            

    

     

    hereby
      certifies that
      he/she [said institution] is the Purchaser of the shares evidenced by the
      attached certificate, and
      as
      such, sold such shares on 

     

    
      	 
	
              
                [date]

              

            

    

     

    in
      accordance with the terms of the Purchase
      Agreement and in accordance with Registration Statement number
      

     

    
      	 
	
              [fill
                in the number of or otherwise identify
                Registration Statement]

            

    

    

      or
        otherwise in accordance with the Securities Act of 1933, as amended, and,
        in the
        case of a transfer pursuant to the Registration Statement, the requirement
        of
        delivering a current prospectus by the Company has been complied with in
        connection with such sale. 

       

    

    Print
      or
      Type: 

    

      
        	
                Name
                  of Purchaser

              	
                 

              	 	 
	
                (Individual
                  or

              	 	 	 
	
                Institution):

              	 	
                 

              	 
	 	 	 	 
	
                Name
                  of Individual

              	 	 	 
	
                representing

              	 	 	 
	
                Purchaser
                  (if an

              	 	 	 
	
                Institution)

              	 	
                 

              	 
	 	 	 	 
	
                Title
                  of Individual

              	 	 	 
	
                representing

              	 	 	 
	
                Purchaser
                  (if an

              	 	 	 
	
                Institution):

              	 	
                 

              	 
	 	 	 	 
	
                Signature
                  by:

              	 	 	 
	
                Individual
                  Purchaser

              	 	 	 
	
                or
                  Individual repre-

              	 	 	 
	
                senting
                  Purchaser:

              	 	
                 

              	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    DESIGNATION
      OF RIGHTS AND PREFERENCES OF

    SERIES
      A
      CONVERTIBLE PREFERRED STOCK

     

    

    
      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

    
EXHIBIT
      B

     

    

    
      	
              Name
                of Subsidiary

            	 	
              State
                or Other Jurisdiction of

               Incorporation/Organization

            	 
	
              K&B
                Sales, Inc.

            	 	
              Oklahoma

            	 
	
              Aces
                Wired, LLC

            	 	
              Texas

            	 
	
              Assured
                Stored Value, LP

            	 	
              Texas

            	 
	
              Aces
                Wired Amusement Centers No 1, LP

            	 	
              Texas

            	 
	
              Aces
                Wired Amusement Centers No 2, LP

            	 	
              Texas

            	 
	
              Aces
                Wired Amusement Centers No 3, LP

            	 	
              Texas

            	 
	
              Aces
                Wired Amusement Centers No 4, LP

            	 	
              Texas

            	 
	
              Aces
                Wired Amusement Centers No 5, LP

            	 	
              Texas

            	 
	
              Aces
                Wired Amusement Centers No 6, LP

            	 	
              Texas

            	 
	
              Aces
                Wired Amusement Centers No 7, LP

            	 	
              Texas

            	 

    

     

    
      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

    
EXHIBIT
      C

    

    ESCROW
      AGREEMENT

    

    

    
      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      D

     

    Form
      of
      LOCK UP Letter

     

    September
      ___, 2006

    

    Merriman
      Curhan Ford & Co.

    As
      Placement Agent

    600
      California Street, 9th floor

    San
      Francisco, California 94108

    

    

    Dear
      Ladies and Gentlemen:

     

    1.    
The
      undersigned is an owner of record or beneficially of certain shares of Common
      Stock (“Common
      Stock”)
      of
      Aces Wired, Inc., a Nevada corporation (the “Company”),
      or
      securities convertible into, exchangeable, or exercisable for Common Stock
      (“Securities”),
      [or
      [an officer][a director] of the Company]. For clarification purposes, the
“Company” shall mean the Company after giving effect to the reverse stock split
      and stock exchange with Goodtime Action Amusement Partners, L.P. The undersigned
      understands that the Company proposes to enter into a purchase agreement (the
      “Purchase
      Agreement”)
      with
      certain accredited investors providing for the purchase (the “Offering”),
      in
      transactions exempt from the registration requirements of the Securities Act
      of
      1933, as amended (the “Securities
      Act”),
      of
      shares of the Company’s Series A Convertible Preferred Stock, $0.001
      par
      value
      per share (the “Shares”).
      Unless otherwise stated or defined in this letter agreement, capitalized terms
      will have the meanings given to them in the Purchase Agreement.

    

    2.    In
      connection with the Offering and pursuant to the terms of the Purchase
      Agreement, the Company has agreed to file with the Securities and Exchange
      Commission a registration statement providing for the resale under the
      Securities Act of the shares of Common Stock into which the Shares are
      convertible.

     

    3.    In
      recognition of the benefit that the Offering will confer upon the undersigned
      and for other good and valuable consideration, the receipt and sufficiency
      of
      which is hereby acknowledged by the undersigned, the undersigned hereby agrees
      that, without the prior written consent of Merriman Curhan Ford & Co. (which
      consent may be withheld in its sole discretion), he, she or it will not, during
      the period commencing on the date hereof and ending on the earlier of (a)
      180 days
      after the date the Registration Statement (as defined in the Purchase Agreement)
      is declared effective, or (b) two years from the date hereof ((a) and (b),
      each
      a “Lock-Up
      Period”),
      (i)
      directly or indirectly offer, pledge, sell, contract to sell, sell any option
      or
      contract to purchase, purchase any option or contract to sell, grant any option,
      right or warrant for the sale of (including, without limitation, any short
      sale), establish an open “put equivalent position” within the meaning of Rule
      16a-1(h) under the Securities Exchange Act of 1934, as amended, and the rules
      and regulations promulgated thereunder (collectively, the “Exchange
      Act”),
      lend
      or otherwise dispose of or transfer any Securities currently or hereafter owned
      either of record or beneficially (as defined in Rule 13d-3 under the Exchange
      Act) by the undersigned, or publicly announce the undersigned’s intention to do
      any of the foregoing, or (ii) enter into any swap or other arrangement that
      transfers, in whole or in part, directly or indirectly, any of the economic
      consequences of ownership of any Securities currently or hereafter owned either
      of record or beneficially (as defined in Rule 13d-3 under the Exchange Act)
      by
      the undersigned, or publicly announce the undersigned’s intention to do any of
      the foregoing, whether any such transaction described in clause (i)
      or (ii) above is to be settled by delivery of common stock of the
      Company or such other securities, in cash or otherwise ((i) or (ii), each a
“Disposition”).
      

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    September  
      , 2006

    Page
      37

     

    The
      foregoing restriction has been 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 Lock-up Period, even if such Securities would be disposed of by
      someone other than such holder. 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
      included, relates to, or derives any significant part of its value from
      Securities. The undersigned also agrees and consents to the entry of stop
      transfer instructions with the Company’s transfer agent and registrar against
      the transfer of shares of Common Stock or Securities held by the undersigned
      except in compliance with the foregoing restrictions.

     

    4.     Notwithstanding
      the foregoing, subject to applicable securities laws, the undersigned may
      transfer securities of the Company as follows: (i) as a bona fide gift or
      gifts, provided that the donees thereof agree in writing to be bound by the
      restrictions set forth herein; (ii) to any trust for the direct or indirect
      benefit of the undersigned or the immediate family of the undersigned, provided
      that the trustee of the trust agrees in writing to be bound by the restrictions
      set forth herein; (iii) as a distribution to stockholders, partners or
      members of the undersigned, provided that such stockholders, partners or members
      agree in writing to be bound by the restrictions set forth herein; (iv) as
      required under any of the Company’s benefit plans or bylaws; (v) as collateral
      for any bona fide loan, provided that the lender agrees in writing to be bound
      by the restrictions set forth herein; and (vi) with respect to sales of
      securities acquired in the open market after the effective date of the
      Registration Statement (so long as no public filing pursuant to the Securities
      Exchange Act of 1934, as amended, or otherwise, or any public announcement,
      is
      required in connection with such sale). For purposes of this letter agreement,
      “immediate family” shall mean any relationship by blood, marriage or adoption,
      not more remote than first cousin. 

     

    5.     With
      respect to the Offering only, the undersigned waives any registration rights
      relating to registration under the Securities Act, and the rules and regulations
      promulgated thereunder, of any Common Stock or Securities owned either of record
      or beneficially by the undersigned.

     

    6.     The
      undersigned acknowledges that Investor is relying on the agreements of the
      undersigned set forth herein in making its decision to consummate the
      transactions contemplated by the Purchase Agreement.

     

    7.     This
      Lock-Up Agreement shall be governed by and construed in accordance with the
      laws
      of the State of New York without regard to principles of conflict of
      laws.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    
      September  
        , 2006

      Page
        38

       

    

    8.     This
      Lock-Up Agreement may be executed in one or more counterparts and delivered
      by
      facsimile, each of which shall be deemed to be an original but all of which
      shall constitute one and the same agreement. 

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    

      
        	 	
                Very
                  truly yours,

              

      

    

     

    

    [Name
      of Stockholder or Director or Officer]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

     

    Form
      of
      Confidentiality and Non-Competition Agreement of Gordon Graves

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