Document:

Unassociated Document

    Warrant
      Certificate No. 1

    

    NEITHER
      THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE
      UPON
      THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND
      NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, ASSIGNED
      OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT
      THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE
      STATE
      SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE
      COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH
      COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY
      BE
      OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED
      WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
      APPLICABLE STATE SECURITIES
      LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED
      HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF MAY NOT BE CONDUCTED
      UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

    

    
      	
              Effective
                Date:  _______________

            	
              Void
                After: __________________

            

    

    

    

    FEDERAL
      SPORTS & ENTERTAINMENT, INC.

    

    FORM
      OF 5-YEAR BRIDGE WARRANT TO PURCHASE 

    SHARES
      OF COMMON STOCK

    

    Federal
      Sports & Entertainment, Inc., a corporation organized under the laws of the
      State of Nevada (the “Company”),
      for
      value received on ________________ (the “Effective
      Date”),
      hereby issues to _________________________________________ (the “Holder”)
      this
      warrant (the “Warrant”)
      to
      purchase five hundred thousand (500,000) shares of the Company’s common stock,
      par value $0.001 per share (“Common
      Stock”)1,
      at the
      Exercise Price (as defined below), as adjusted from time to time as provided
      herein, on or before _______________________ (the “Expiration
      Date”),
      all
      subject to the following terms and conditions. The Warrant Shares (as defined
      below) issued upon exercise of this Warrant shall be subject to the provisions
      of the Company’s Amended and Restated Articles of Incorporation, a copy of which
      will be furnished to the holder hereof upon written request and without
      charge.

    

    Unless
      otherwise defined in this Warrant, terms appearing in initial capitalized form
      shall have the meaning ascribed to them in that certain Securities Purchase
      Agreement dated September 9, 2008 between the Company and the purchaser
      signatory thereto pursuant to which this Warrant was issued (the “Securities
      Purchase Agreement”).

     

     

    
      
        

      

    

    1
      The
      number of shares shall equal the number of Bridge Shares issued to
      Holder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    As
      used
      in this Warrant, (i) “Business
      Day”
means
      any day other than Saturday, Sunday or any other day on which commercial banks
      in the City of New York, New York, are authorized or required by law or
      executive order to close; (ii) “Exercise
      Price”
means
      $2.00 per share of Common Stock, subject to adjustment as provided herein;
      and
      (iii) “Warrant
      Shares”
means
      shares of Common Stock in the Company, including any securities issued or
      issuable with respect thereto or into which or for which such interest may
      be
      exchanged for, or converted into, pursuant to any stock split, stock dividend,
      recapitalization, reclassification, reorganization or other similar
      event.

    

    1. DURATION
      AND EXERCISE OF WARRANT

    

    (a) Exercise
      Period.
      The
      Holder may exercise this Warrant at any time and from time to time, in whole
      or
      in part, on any Business Day on or before 5:00 P.M., Eastern Time, on the
      Expiration Date, subject to the provisions of Section 9 hereof. If this Warrant
      is not exercised on or prior to the Expiration Date, it shall become void and
      of
      no value, and all rights hereunder shall thereupon cease.

    

    (b) Exercise
      Procedures.

    

    (i) While
      this Warrant remains outstanding and exercisable in accordance with Section
      1(a), the Holder may exercise this Warrant, in whole or in part,
      as
      follows:

    

    (A) By
      presentation and surrender of this Warrant to the Company at its principal
      offices or at such other office or agency as the Company may specify in writing
      to the Holder, with a duly executed copy of the Notice of Exercise attached
      as
Exhibit
      A;
      and

    

    (C) Payment
      of the
      then-applicable
      Exercise
      Price per share multiplied by the number of Warrant Shares being purchased
      upon
      exercise of the Warrant (such amount, the “Aggregate
      Exercise Price”)
      made
      in
      the form of cash, or by certified check, bank draft or money order payable
      in
      lawful money of the United States of America
      or in
      the form of a Cashless Exercise (as defined below) to the extent permitted
      in
      Section 1(b)(ii) below.

    

    (ii) At
      any
      time when a registration statement covering the resale of the Warrant Shares
      by
      the Holder is not available after the first anniversary of the Effective Date,
      the Holder may, in its sole discretion, exercise all or any part of the Warrant
      in a “cashless” or “net-issue” exercise (a “Cashless
      Exercise”)
      by
      delivering to the Company (1) the Notice of Exercise and (2) the original
      Warrant, pursuant to which the Holder shall surrender the right to receive
      upon
      exercise of this Warrant, a number of Warrant Shares having a fair market value
      (as defined in Section 9(a)) equal to the Aggregate Exercise Price, in which
      case, the number of Warrant Shares to be issued to the Holder upon such exercise
      shall be calculated using the following formula:

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	 	 	
              X

            	
              =

            	
              Y
                *
                (A - B)

            	 
	 	 	 	 	
              A

            	 

    

    

    
      	 	
              with:

            	
              X
                =
                

            	
              the
                number of Warrant Shares to be issued to the Holder

            
	 	 	 	 
	 	 	
              Y
                =

            	
              the
                number of Warrant Shares with respect to which the Warrant is being
                exercised

            
	 	 	 	 
	 	 	
              A
                =

            	
              the
                fair market value per share of Common
                Stock on
                the date of exercise of the Warrant

            
	 	 	 	 
	 	 	
              B
                =

            	
              the
                then-current Exercise Price of
                the Warrant

            

    

    

    Notwithstanding
      the foregoing provisions of this Section 1(b)(ii), the Holder may not make
      a
      Cashless Exercise if and to the extent that such exercise would require the
      Company to issue a number of shares of Common Stock in excess of its authorized
      but unissued shares of Common Stock, less all amounts of Common Stock that
      have
      been reserved for issuance upon the conversion of all outstanding securities
      convertible into shares of Common Stock and the exercise of all outstanding
      options, warrants and other rights exercisable for shares of Common Stock.
      If
      the Company does not have the requisite number of authorized but unissued shares
      of Common Stock to permit the Holder to make a Cashless Exercise, the Company
      shall use commercially reasonable efforts to obtain the necessary shareholder
      consent to increase the authorized number of shares of Common Stock to permit
      such Holder to make a Cashless Exercise pursuant to this Section
      1(b)(ii).

    

    (iii) Upon
      the
      exercise of this Warrant in compliance with the provisions of this Section
      1(b),
      and except as limited pursuant to the last paragraph of Section 1(b)(ii), the
      Company shall promptly issue and cause to be delivered to the Holder a
      certificate for the total number of shares of Common Stock for which this
      Warrant is being exercised. Each
      exercise of this Warrant shall be effective immediately prior to the close
      of
      business on the date that
      the
      Company has received each of the Notice of Exercise and the Aggregate Exercise
      Price (or notice of a Cashless Exercise in accordance with Section 1(b)(ii))
      (the “Exercise
      Delivery Documents”).
      Upon
      delivery of the Exercise Delivery Documents, the Holder shall be deemed for
      all
      corporate purposes to have become the holder of record of the shares of Common
      Stock issuable upon such exercise, irrespective of the date of delivery of
      the
      certificates evidencing such shares.

    

    (c) Partial
      Exercise.
      This
      Warrant shall be exercisable, either in its entirety or, from time to time,
      for
      part only of the number of Warrant Shares referenced by this Warrant. If this
      Warrant is exercised in part, the Company shall issue, at its expense, a new
      Warrant, in substantially the form of this Warrant, referencing such reduced
      number of Warrant Shares that remain subject to this Warrant.

    

    (d) Disputes.
      In the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall promptly issue
      to the Holder the number of Warrant Shares that are not disputed and resolve
      such dispute in accordance with Section 15.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    2. ISSUANCE
      OF WARRANT SHARES

    

    (a) The
      Company covenants that all Warrant Shares will, upon issuance in accordance
      with
      the terms of this Warrant, be (i) duly authorized, fully paid and
      non-assessable, and (ii) free from all liens, charges and security interests,
      with the exception of claims arising through the acts or omissions of the Holder
      and except as arising from applicable federal and state securities
      laws.

    

    (b) The
      Company shall register this Warrant upon records to be maintained by the Company
      for that purpose in the name of the record holder of such Warrant from time
      to
      time. The Company may deem and treat the registered Holder of this Warrant
      as
      the absolute owner thereof for the purpose of any exercise thereof, any
      distribution to the Holder thereof and for all other purposes.

    

    (c) The
      Company 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 Company, but will at all times in good faith assist in the
      carrying out of all the provisions of this Warrant and in the taking of all
      action necessary or appropriate in order to protect the rights of the Holder
      to
      exercise this Warrant, or against impairment of such rights.

    

    
      
        3.
          ADJUSTMENTS
          OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT SHARES

      

    

    

    (a) The
      Exercise Price and the number of shares purchasable upon the exercise of this
      Warrant shall be subject to adjustment from time to time upon the occurrence
      of
      certain events described in this Section 3(a); provided,
      that
      notwithstanding the provisions of this Section 3(a), the Company shall not
      be
      required to make any adjustment if and to the extent that such adjustment would
      require the Company to issue a number of shares of Common Stock in excess of
      its
      authorized but unissued shares of Common Stock, less all shares of Common Stock
      that have been reserved for issuance upon the conversion of all outstanding
      securities convertible into shares of Common Stock and the exercise of all
      outstanding options, warrants and other rights exercisable for shares of Common
      Stock. If the Company does not have the requisite number of authorized but
      unissued shares of Common Stock to make any adjustment, the Company shall use
      its commercially reasonable efforts to obtain the necessary shareholder consent
      to increase the authorized number of shares of Common Stock to make such an
      adjustment pursuant to this Section 3(a).

    

    (i) Subdivision
      or Combination of Stock.
      If the
      Company at any time after the date of issuance of this Warrant subdivides (by
      any stock split, stock dividend, recapitalization or otherwise) its outstanding
      shares of Common Stock into a greater number of shares, the Exercise Price
      in
      effect immediately prior to such subdivision shall be proportionately reduced
      and the number of Warrant Shares shall be proportionately increased. If the
      Company at any time after the date of issuance of this Warrant combines (by
      combination, reverse stock split or otherwise) its outstanding shares of Common
      Stock into a smaller number of shares, the Exercise Price in effect immediately
      prior to such combination will be proportionately increased and the number
      of
      Warrant Shares shall be proportionately decreased. Any adjustment under this
      Section 3(a)(i) shall become effective at the close of business on the date
      the
      subdivision or combination becomes effective. The Exercise Price and the Warrant
      Shares, as so adjusted, shall be readjusted in the same manner upon the
      happening of any successive event or events described in this Section
      3(a)(i).

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    (ii) Distribution
      of Assets.
      If the
      Company shall declare or make any dividend or other distribution of its assets
      (or rights to acquire its assets) to holders of Common Stock, by way of return
      of capital or otherwise (including, without limitation, any distribution of
      cash, stock or other securities, property or options by way of a dividend,
      spin
      off, reclassification, corporate rearrangement or other similar transaction)
      (a
“Distribution”),
      at
      any time after the issuance of this Warrant, then, in each such case the
      Exercise Price and the number of Warrant Shares in effect immediately prior
      to
      the close of business on the record date fixed for the determination of holders
      of Common Stock entitled to receive the Distribution shall be adjusted
      proportionately, and the Holder hereof shall, upon the exercise of this Warrant,
      be entitled to receive, in addition to the number of shares of Common Stock
      receivable thereupon, and without payment of any additional consideration
      therefor, the amount of assets that such Holder would hold on the date of such
      exercise had such Holder been the holder of record of such Common Stock as
      of
      such record date. The Exercise Price and the Warrant Shares, as so adjusted,
      shall be readjusted in the same manner upon the happening of any successive
      event or events described in this Section 3(a)(ii).

    

    (iii) Reorganization,
      Consolidation, Merger or Sale.
      If any
      recapitalization, reclassification or reorganization of the capital stock of
      the
      Company, or any consolidation or merger of the Company with another corporation,
      or the sale of all or substantially all of its assets or other
      transaction shall be effected in such a way that holders of Common Stock shall
      be entitled to receive stock, securities, or other assets or property (an
“Organic
      Change”),
      then,
      as a condition of such Organic Change, lawful and adequate provisions shall
      be
      made by the Company whereby the Holder hereof shall thereafter have the right
      to
      purchase and receive (in lieu of the shares of Common Stock of the Company
      immediately theretofore purchasable and receivable upon the exercise of the
      rights represented by this Warrant) such shares of stock, securities or other
      assets or property as may be issued or payable with respect to or in exchange
      for a number of outstanding shares of such Common Stock equal to the number
      of
      shares of such Common Stock immediately theretofore purchasable and receivable
      assuming the full exercise of the rights represented by this Warrant. In the
      event of any Organic Change, appropriate provision shall be made by the Company
      with respect to the rights and interests of the Holder of this Warrant to the
      end that the provisions hereof (including, without limitation, provisions for
      adjustments of the Exercise Price and of the number of shares purchasable and
      receivable upon the exercise of this Warrant) shall thereafter be applicable,
      in
      relation to any shares of stock, securities or other assets or property
      thereafter deliverable upon the exercise hereof. The Company will not effect
      any
      such consolidation, merger or sale unless, prior to the consummation thereof,
      the successor corporation (if other than the Company) resulting from such
      consolidation or merger
      or
the
      corporation purchasing such assets shall assume by written instrument reasonably
      satisfactory in form and substance to the Holder executed and mailed or
      delivered to the registered Holder hereof at the last address of such Holder
      appearing on the books of the Company, the obligation to deliver to such Holder
      such shares of stock, securities or other assets or property as, in accordance
      with the foregoing provisions, such Holder may be entitled to
      purchase. If
      there
      is an Organic Change, then the Company shall cause to be mailed to the Holder
      at
      its last address as it shall appear on the books and records of the Company,
      at
      least 10 calendar days before the effective date of the Organic Change, a notice
      stating the date on which such Organic Change is expected to become effective
      or
      close, and the date as of which it is expected that holders of Common Stock
      of
      record shall be entitled to exchange their shares for such shares of stock,
      securities or other assets or property delivered upon such Organic Change;
      provided,
      that
      the failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to exercise this Warrant during the
      10-day period commencing on the date of such notice to the effective date of
      the
      event triggering such notice. In
      any
      event, the successor corporation (if other than the Company) resulting from
      such
      consolidation or merger or the corporation purchasing such assets shall be
      deemed to assume such obligation to deliver to such Holder such shares of stock,
      securities or other assets or property even in the absence of a written
      instrument assuming such obligation to the extent such assumption occurs by
      operation of law.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    (iv) (A) In
      case
      the Company, at any time this Warrant is outstanding, shall issue shares of
      Common Stock or Common Stock Equivalents (as defined below) entitling any person
      to acquire shares of Common Stock, at a price per share (determined, reduced
      and
      adjusted in accordance with this subsection 3(a)(iv)) less than the then current
      Exercise Price (if the holder of the Common Stock or Common Stock Equivalent
      so
      issued shall at any time, whether by operation of purchase price adjustments,
      reset provisions, floating conversion, exercise or exchange prices or otherwise,
      or due to warrants, options or rights issued in connection with such issuance,
      be entitled to receive shares of Common Stock at a price less than the Exercise
      Price, such issuance shall be deemed to have occurred for less than the Exercise
      Price), then, the Exercise Price shall be reduced to equal such lower
      price.  “Common Stock Equivalents” shall mean any securities of the Company
      or the Subsidiaries which would entitle the holder thereof to acquire at any
      time Common Stock, including without limitation, any debt, preferred stock,
      rights, options, warrants or other instrument that is at any time convertible
      into or exchangeable for, or otherwise entitles the holder thereof to receive,
      Common Stock.  Such adjustment shall be made whenever such Common Stock or
      Common Stock Equivalents are issued.  The Company shall notify the Holder
      in writing, no later than the trading day following the issuance of any Common
      Stock or Common Stock Equivalent subject to this section, indicating therein
      the
      applicable issuance price, or of applicable reset price, exchange price,
      conversion price and other pricing terms.  In the event any Common Stock
      Equivalents are issued which have a Common Stock purchase price below the
      Exercise Price and such Common Stock Equivalents shall be cancelled, expire
      or
      otherwise be of no further force or effect, than any prior adjustment to the
      Exercise Price shall be rescinded.

    

    (B) For
      purposes of this subsection (iv), the following subsections shall also be
      applicable:

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    (1) Issuance
      of Rights or Options.  In case at any time the Company shall in any manner
      grant (directly and not by assumption in a merger or otherwise) any warrants
      or
      other rights to subscribe for or to purchase, or any options for the purchase
      of, Common Stock or any stock or security convertible into or exchangeable
      for
      Common Stock (such warrants, rights or options being called “Options” and such
      convertible or exchangeable stock or securities being called “Convertible
      Securities”) whether or not such Options or the right to convert or exchange any
      such Convertible Securities are immediately exercisable, and the price per
      share
      for which Common Stock is issuable upon the exercise of such Options or upon
      the
      conversion or exchange of such Convertible Securities (determined by dividing
      (i) the sum (which sum shall constitute the applicable consideration) of (x)
      the
      total amount, if any, received or receivable by the Company as consideration
      for
      the granting of such Options, plus (y) the aggregate amount of additional
      consideration payable to the Company upon the exercise of all such Options,
      plus
      (z), in the case of such Options which relate to Convertible Securities, the
      aggregate amount of additional consideration, if any, payable upon the issue
      or
      sale of such Convertible Securities and upon the conversion or exchange thereof,
      by (ii) the total maximum number of shares of Common Stock issuable upon the
      exercise of such Options or upon the conversion or exchange of all such
      Convertible Securities issuable upon the exercise of such Options) shall be
      less
      than the Exercise Price in effect immediately prior to the time of the granting
      of such Options, then the total number of shares of Common Stock issuable upon
      the exercise of such Options or upon conversion or exchange of the total amount
      of such Convertible Securities issuable upon the exercise of such Options shall
      be deemed to have been issued for such price per share as of the date of
      granting of such Options or the issuance of such Convertible Securities and
      thereafter shall be deemed to be outstanding for purposes of adjusting the
      Exercise Price.  Except as otherwise provided in subsection (C) below, no
      adjustment of the Exercise Price shall be made upon the actual issue of such
      Common Stock or of such Convertible Securities upon exercise of such Options
      or
      upon the actual issue of such Common Stock upon conversion or exchange of such
      Convertible Securities.

    

    (2) Issuance
      of Convertible Securities.  In case the Company shall in any manner issue
      (directly and not by assumption in a merger or otherwise) or sell any
      Convertible Securities, whether or not the rights to exchange or convert any
      such Convertible Securities are immediately exercisable, and the price per
      share
      for which Common Stock is issuable upon such conversion or exchange (determined
      by dividing (i) the sum (which sum shall constitute the applicable
      consideration) of (x) the total amount received or receivable by the Company
      as
      consideration for the issue or sale of such Convertible Securities, plus (y)
      the
      aggregate amount of additional consideration, if any, payable to the Company
      upon the conversion or exchange thereof, by (ii) the total number of shares
      of
      Common Stock issuable upon the conversion or exchange of all such Convertible
      Securities) shall be less than the Exercise Price in effect immediately prior
      to
      the time of such issue or sale, then the total maximum number of shares of
      Common Stock issuable upon conversion or exchange of all such Convertible
      Securities shall be deemed to have been issued for such price per share as
      of
      the date of the issue or sale of such Convertible Securities and thereafter
      shall be deemed to be outstanding for purposes of adjusting the Exercise Price,
      provided that (a) except as otherwise provided in subsection (C) below, no
      adjustment of the Exercise Price shall be made upon the actual issuance of
      such
      Common Stock upon conversion or exchange of such Convertible Securities and
      (b)
      no further adjustment of the Exercise Price shall be made by reason of the
      issue
      or sale of Convertible Securities upon exercise of any Options to purchase
      any
      such Convertible Securities for which adjustments of the Exercise Price have
      been made pursuant to the other provisions of subsection (A) above.  If the
      Company issues a variable rate security, the Company shall be deemed to have
      issued Common Stock at the price at which shares are actually issued upon
      conversion or exercise of such instrument.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    (3) Change
      in
      Option Price or Conversion Rate.  Upon the happening of any of the
      following events, namely, if the purchase price provided for in any Option
      referred to in subsection 3(a)(iv)(B) hereof, the additional consideration,
      if
      any, payable upon the conversion or exchange of any Convertible Securities
      referred to in subsections 3(a)(iv)(B)(1) or 3(a)(iv)(B)(2), or the rate at
      which Convertible Securities referred to in subsections 3(a)(iv)(B)(1) or
      3(a)(iv)(B)(2) are convertible into or exchangeable for Common Stock shall
      change at any time (including, but not limited to, changes under or by reason
      of
      provisions designed to protect against dilution), the Exercise Price in effect
      at the time of such event shall forthwith be readjusted to the Exercise Price
      which would have been in effect at such time had such Options or Convertible
      Securities still outstanding provided for such changed purchase price,
      additional consideration or conversion rate, as the case may be, at the time
      initially granted, issued or sold.  On the termination of any Option for
      which any adjustment was made pursuant to this subsection 3(a)(iv) or any right
      to convert or exchange Convertible Securities for which any adjustment was
      made
      pursuant to this subsection 3(a)(iv) (including without limitation upon the
      redemption or purchase for consideration of such Convertible Securities by
      the
      Company), the Exercise Price then in effect hereunder shall forthwith be changed
      to the Exercise Price which would have been in effect at the time of such
      termination had such Option or Convertible Securities, to the extent outstanding
      immediately prior to such termination, never been issued.

    

    (4) Stock
      Dividends.  In case the Company shall declare a dividend or make any other
      distribution upon any stock of the Company (other than the Common Stock) payable
      in Common Stock, Options or Convertible Securities, then any Common Stock,
      Options or Convertible Securities, as the case may be, issuable in payment
      of
      such dividend or distribution shall be deemed to have been issued or sold
      without consideration.

    

    (5) Consideration
      for Stock.  In case any shares of Common Stock, Options or Convertible
      Securities shall be issued or sold for cash, the consideration received
      therefore shall be deemed to be the net amount received by the Company
      therefore, after deduction therefrom of any expenses incurred or any
      underwriting commissions or concessions paid or allowed by the Company in
      connection therewith.  In case any shares of Common Stock, Options or
      Convertible Securities shall be issued or sold for a consideration other than
      cash, the amount of the consideration other than cash received by the Company
      shall be deemed to be the fair value of such consideration as determined in
      good
      faith by the Board of Directors of the Company, after deduction of any expenses
      incurred or any underwriting commissions or concessions paid or allowed by
      the
      Company in connection therewith.  In case any Options shall be issued in
      connection with the issue and sale of other securities of the Company, together
      comprising one integral transaction in which no specific consideration is
      allocated to such Options by the parties thereto, such Options shall be deemed
      to have been issued for such consideration as determined in good faith by the
      Board of Directors of the Company.  If Common Stock, Options or Convertible
      Securities shall be issued or sold by the Company and, in connection therewith,
      other Options or Convertible Securities (the “Additional Rights”) are issued,
      then the consideration received or deemed to be received by the Company shall
      be
      reduced by the fair market value of the Additional Rights (as determined using
      the Black-Scholes Pricing Model).

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (6) Record
      Date.  In case the Company shall take a record of the holders of its Common
      Stock for the purpose of entitling them to receive a dividend or other
      distribution payable in Common Stock, Options or Convertible Securities or
      to
      subscribe for or purchase Common Stock, Options or Convertible Securities,
      then
      such record date shall be seemed to be the date of the issue or sale of the
      shares of Common Stock deemed to have been issued or sold upon the declaration
      of such dividend or the making of such other distribution or the date of the
      granting of such right of subscription or purchase, as the case may
      be.

    

    (C) Notwithstanding
      the foregoing, no adjustment will be made under this Section 3(a)(iv) in respect
      of: (i) the issuance of securities upon the exercise or conversion of any Common
      Stock Equivalents issued by the Company prior to the date hereof (but this
      Section 3(a)(iv) will apply to any amendments, modifications, and reissuances
      thereof and as a result of any changes, resets or adjustments to a conversion,
      exercise or exchange price thereunder whether or not as a result of any
      amendment, modification or reissuance), or (ii) Common Stock issued pursuant
      to
      a Company’s stock incentive plan existing as of the date hereof, or (iii) Common
      Stock issued in connection with the acquisition of businesses or assets, other
      than transactions the purpose of which relate to capital raises.

    

    (b) Certificate
      as to Adjustments.
      Upon
      the occurrence of each adjustment or readjustment pursuant to this Section
      3,
      the Company at its expense shall promptly compute such adjustment or
      readjustment in accordance with the terms hereof and furnish to each Holder
      of
      this Warrant a certificate setting forth such adjustment or readjustment and
      showing in detail the facts upon which such adjustment or readjustment is based.
      The Company shall
      promptly
      furnish
      or cause to be furnished to such Holder a like certificate setting forth: (i)
      such adjustments and readjustments; and (ii) the number of shares and the
      amount, if any, of other property which at the time would be received upon
      the
      exercise of the Warrant.

    

    (c) Certain
      Events.
      If any
      event occurs as to which the other provisions of this Section 3 are not strictly
      applicable but the lack of any adjustment would not fairly protect the purchase
      rights of the Holder under this Warrant in accordance with the basic intent
      and
      principles of such provisions, or if strictly applicable would not fairly
      protect the purchase rights of the Holder under this Warrant in accordance
      with
      the basic intent and principles of such provisions, then the Company’s Board of
      Directors will, in good faith, make an appropriate adjustment to protect the
      rights of the Holder; provided,
      that no
      such adjustment pursuant to this Section 3(c) will increase the Exercise Price
      or decrease the number of Warrant Shares as otherwise determined pursuant to
      this Section 3.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    4. TRANSFERS
      AND EXCHANGES OF WARRANT AND WARRANT SHARES

    

    (a) Registration
      of Transfers and Exchanges.
      Subject
      to Section 4(c), upon the Holder’s surrender of this Warrant, with a duly
      executed copy of the Form of Assignment attached as Exhibit
      B,
      to the
      Secretary of the Company at its principal offices or at such other office or
      agency as the Company may specify in writing to the Holder, the Company shall
      register the transfer of all or any portion of this Warrant. Upon such
      registration of transfer, the Company shall issue a new Warrant, in
      substantially the form of this Warrant, evidencing the acquisition rights
      transferred to the transferee and a new Warrant, in similar form, evidencing
      the
      remaining acquisition rights not transferred, to the Holder requesting the
      transfer.

    

    (b) Warrant
      Exchangeable for Different Denominations.
      The
      Holder may exchange this Warrant for a new Warrant or Warrants, in substantially
      the form of this Warrant, evidencing in the aggregate the right to purchase
      the
      number of Warrant Shares which may then be purchased hereunder, each of such
      new
      Warrants to be dated the date of such exchange and to represent the right to
      purchase such number of Warrant Shares as shall be designated by the Holder.
      The
      Holder shall surrender this Warrant with duly executed instructions regarding
      such
      re-certification of this Warrant to the Secretary of the Company at its
      principal offices or at such other office or agency as the Company may specify
      in writing to the Holder.

    

    (c) Restrictions
      on Transfers.
      This
      Warrant may not be transferred at any time without (i) registration under the
      Securities Act or (ii) an exemption from such registration and a written opinion
      of legal counsel addressed to the Company that the proposed transfer of the
      Warrant may be effected without registration under the Securities Act, which
      opinion will be in form and from counsel reasonably satisfactory to the
      Company.

    

    (d) Permitted
      Transfers and Assignments.
      Notwithstanding any provision to the contrary in this Section 4, the Holder
      may
      transfer, with or without consideration, this Warrant or any of the Warrant
      Shares (or a portion thereof) to the Holder’s affiliates (as such term is
      defined under Rule 144 of the Securities Act) without obtaining the opinion
      from
      counsel that may be required by Section 4(c)(ii); provided
      that,
      the Holder delivers to the Company and its counsel certification, documentation
      and other assurances reasonably required by the Company’s counsel to enable the
      Company’s counsel to render an opinion that such transfer does not violate
      applicable securities laws.

    

    5. MUTILATED
      OR MISSING WARRANT CERTIFICATE

    

    If
      this
      Warrant is mutilated, lost, stolen or destroyed, upon request by the Holder,
      the
      Company will, at its expense,
      issue,
      in exchange for and upon cancellation of the mutilated Warrant, or in
      substitution for the lost, stolen or destroyed Warrant, a new Warrant, in
      substantially the form of this Warrant, representing the right to acquire the
      equivalent number of Warrant Shares; provided
      that, as
      a prerequisite to the issuance of a substitute Warrant, the Company may require
      satisfactory evidence of loss, theft or destruction as well as an indemnity
      from
      the Holder of a lost, stolen or destroyed Warrant.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    6. PAYMENT
      OF TAXES

    

    The
      Company will pay all transfer and stock issuance taxes attributable to the
      preparation, issuance and delivery of this Warrant and the Warrant Shares
(and
      replacement Warrants) including,
      without limitation, all documentary and stamp taxes; provided,
      however,
      that
      the Company shall not be required to pay any tax in respect of the transfer
      of
      this Warrant, or the issuance or delivery of certificates for Warrant Shares
      or
      other securities in respect of the Warrant Shares to any person or entity other
      than to the Holder.

     

    7. FRACTIONAL
      WARRANT SHARES

    

    No
      fractional Warrant Shares shall be issued upon exercise of this Warrant. The
      Company, in lieu of issuing any fractional Warrant Share, shall round up the
      number of Warrant Shares issuable to nearest whole share. The Company shall
      not
      be required to make any cash or other adjustment in respect of such fraction
      of
      a share to which the Holder would otherwise be entitled.

    

    8. NO
      EQUITY
      INTEREST RIGHTS AND LEGEND

    

    No
      holder
      of this Warrant, as such, shall be entitled to vote or be deemed the holder
      of
      any other securities of the Company that may at any time be issuable on the
      exercise hereof, nor shall anything contained herein be construed to confer
      upon
      the holder of this Warrant, as such, the rights of a shareholder of the Company
      or the right to vote for the election of directors or upon any matter submitted
      to shareholders at any meeting thereof,
      or give
      or withhold consent to any corporate action or to receive notice of meetings
      or
      other actions affecting shareholders (except as provided herein), or to receive
      dividends or subscription rights or otherwise (except as provide
      herein).

    

    Each
      certificate for Warrant Shares initially issued upon the exercise of this
      Warrant, and each certificate for Warrant Shares issued to any subsequent
      transferee of any such certificate, shall be stamped or otherwise imprinted
      with
      a legend in substantially the following form:

    

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
      SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE
      OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A
      REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES
      ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH
      REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER
      OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO
      THE
      COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR
      TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
      LAWS.”

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    9. NOTICES

    

    All
      notices, consents, waivers and other communications under this Warrant must
      be
      in writing and will be deemed given to a party when (a) delivered to the
      appropriate address by hand or by nationally recognized overnight courier
      service (costs prepaid); (b) sent by facsimile or e-mail with confirmation
      of
      transmission by the transmitting equipment; (c) received or rejected by the
      addressee, if sent by certified mail, return receipt requested, if to the
      registered Holder hereof; or (d) seven days after the placement of the notice
      into the mails (first class postage prepaid), to the Holder at the address,
      facsimile number or e-mail address furnished by the registered Holder to the
      Company in accordance with the Securities Purchase Agreement, or if to the
      Company, to it at 47395 Monroe Street, #274 Indio, CA 92201, Attention: Linda
      Farrell, President (or to such other address, facsimile number or e-mail address
      as the Holder or the Company as a party may designate by notice the other party)
      with a copy to Gottbetter & Partners, LLP, 488 Madison Avenue, New York, NY
      10022, Attention: Adam S. Gottbetter, Esq.

    

    10. SEVERABILITY

    

    If
      a
      court of competent jurisdiction holds any provision of this Warrant invalid
      or
      unenforceable, the other provisions of this Warrant will remain in full force
      and effect. Any provision of this Warrant held invalid or unenforceable only
      in
      part or degree will remain in full force and effect to the extent not held
      invalid or unenforceable.

    

    11. BINDING
      EFFECT

    

    This
      Warrant shall be binding upon and inure to the sole and exclusive benefit of
      the
      Company, its successors and assigns, the registered Holder or Holders from
      time
      to time of this Warrant and the Warrant Shares.

    

    12. SURVIVAL
      OF RIGHTS AND DUTIES

    

    This
      Warrant shall terminate and be of no further force and effect on the earlier
      of
      5:00 P.M., Eastern Time, on the Expiration Date or the date on which this
      Warrant has been exercised in full, or as provided in Section 9
      hereof.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    13. GOVERNING
      LAW

    

    This
      Warrant will be governed by and construed under the laws of the State of
New
      York
      without regard to conflicts of laws principles that would require the
      application of any other law.

     

    14. DISPUTE
      RESOLUTION

    

    In
      the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall submit the
      disputed determinations or arithmetic calculations via facsimile within two
      Business Days of receipt of the Notice of Exercise giving rise to such dispute,
      as the case may be, to the Holder. If the Holder and the Company are unable
      to
      agree upon such determination or calculation of the Exercise Price or the
      Warrant Shares within three Business Days of such disputed determination or
      arithmetic calculation being submitted to the Holder, then the Company shall,
      within two Business Days, submit via facsimile (a) the disputed determination
      of
      the Exercise Price to an independent, reputable investment bank selected by
      the
      Company and approved by the Holder or (b) the disputed arithmetic calculation
      of
      the Warrant Shares to the Company’s independent, outside accountant. The Company
      shall cause at its expense the investment bank or the accountant, as the case
      may be, to perform the determinations or calculations and notify the Company
      and
      the Holder of the results no later than ten Business Days from the time it
      receives the disputed determinations or calculations. Such investment bank’s or
      accountant’s determination or calculation, as the case may be, shall be binding
      upon all parties absent demonstrable error. 

    

    15. NOTICES
      OF RECORD DATE

    

    Upon
      (a)
      any establishment by the Company of a record date of the holders of any class
      of
      securities for the purpose of determining the holders thereof who are entitled
      to receive any dividend or other distribution, or right or option to acquire
      securities of the Company, or any other right, or (b) any capital
      reorganization, reclassification, recapitalization, merger or consolidation
      of
      the Company with or into any other corporation, any transfer of all or
      substantially all the assets of the Company, or any voluntary or involuntary
      dissolution, liquidation or winding up of the Company, or the sale, in a single
      transaction, of a majority of the Company’s voting equity securities (whether
      newly issued, or from treasury, or previously issued and then outstanding,
      or
      any combination thereof), the Company shall mail to the Holder at least ten
      Business Days, or such longer period as may be required by law, prior to the
      record date specified therein, a notice specifying (i) the date established
      as
      the record date for the purpose of such dividend, distribution, option or right
      and a description of such dividend, option or right, (ii) the date on which
      any
      such reorganization, reclassification, transfer, consolidation, merger,
      dissolution, liquidation or winding up, or sale is expected to become effective
      and (iii) the date, if any, fixed as to when the holders of record of Common
      Stock shall be entitled to exchange their shares of Common Stock for securities
      or other property deliverable upon such reorganization, reclassification,
      transfer, consolation, merger, dissolution, liquidation or winding
      up.

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    16. RESERVATION
      OF SHARES

    

    The
      Company shall reserve and keep available out of its authorized but unissued
      shares of Common Stock for issuance upon the exercise of this Warrant, free
      from
      pre-emptive rights, such number of shares of Common Stock for which this Warrant
      shall from time to time be exercisable.
      The
      Company will take all such reasonable action as may be necessary to assure
      that
      such Warrant Shares may be issued as provided herein without violation of any
      applicable law or regulation. Without limiting the generality of the foregoing,
      the Company covenants that it will use commercially reasonable efforts to take
      all such action as may be necessary or appropriate in order that the Company
      may
      validly and legally issue fully paid and nonassessable Warrant Shares upon
      the
      exercise of this Warrant and use commercially reasonable efforts to obtain
      all
      such authorizations, exemptions or consents, including but not limited to
      consents from the Company’s shareholders or Board of Directors or any public
      regulatory body, as may be necessary to enable the Company to perform its
      obligations under this Warrant.

    

    17. NO
      THIRD
      PARTY RIGHTS

    

    This
      Warrant is not intended, and will not be construed, to create any rights in
      any
      parties other than the Company and the Holder, and no person or entity may
      assert any rights as third-party beneficiary hereunder.

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as
      of
      the date first set forth above.

    

    

    
      	 	
              FEDERAL
                SPORTS & ENTERTAINMENT, INC.

            
	 	 
	 	 
	 	
              By:
                ___________________________

            
	 	
              Name:
                Linda Farrell

            
	 	
              Title:  
                President

            

    

    

    

    [SIGNATURE
      PAGE TO WARRANT]

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    

    NOTICE
      OF
      EXERCISE

    

    (To
      be
      executed by the Holder of Warrant if such Holder
      desires
      to exercise Warrant)

    

    To
      Federal Sports & Entertainment, Inc.:

    

    The
      undersigned hereby irrevocably elects to exercise this Warrant and to purchase
      thereunder, ___________________ full shares of common stock of Federal Sports
      & Entertainment, Inc. issuable upon exercise of the Warrant and delivery
      of:

    

    (1) $__________
      (in cash as provided for in the foregoing Warrant) and any applicable taxes
      payable by the undersigned pursuant to such Warrant; and

    

    (2) __________
      shares of Common Stock (pursuant to a Cashless Exercise in accordance with
      Section 1(b)(ii) of the Warrant) (check here if the undersigned desires to
      deliver an unspecified number of shares equal the number sufficient to effect
      a
      Cashless Exercise [___]).

    

    The
      undersigned requests that certificates for such shares be issued in the name
      of:

    

    _________________________________________

    (Please
      print name, address and social security or federal employer

    identification
      number (if applicable))

    

    _________________________________________

    

    _________________________________________

    

    If
      the
      shares issuable upon this exercise of the Warrant are not all of the Warrant
      Shares which the Holder is entitled to acquire upon the exercise of the Warrant,
      the undersigned requests that a new Warrant evidencing the rights not so
      exercised be issued in the name of and delivered to:

    

    _________________________________________

    (Please
      print name, address and social security or federal employer

    identification
      number (if applicable))

    

    _________________________________________

    

    _________________________________________

    
 

    
      	 	
              Name
                of Holder (print): _____________________________

            
	 	
              Signature:
                _______________________________________

            
	 	
              By:
                ____________________________________________

            
	 	
              Title:
                ___________________________________________

            
	 	
              Dated:
                __________________________________________

            

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    EXHIBIT
      B

    

    FORM
      OF
      ASSIGNMENT

    

    FOR
      VALUE
      RECEIVED, ___________________________________ hereby sells, assigns and
      transfers to each assignee set forth below all of the rights of the undersigned
      under the Warrant (as defined in and evidenced by the attached Warrant) to
      acquire the number of Warrant Shares set opposite the name of such assignee
      below and in and to the foregoing Warrant with respect to said acquisition
      rights and the shares issuable upon exercise of the Warrant:

    

    
      	
              Name
                of Assignee

            	
              Address

            	
              Number
                of Warrant Shares

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

    

    If
      the
      total of the Warrant Shares are not all of the Warrant Shares evidenced by
      the
      foregoing Warrant, the undersigned requests that a new Warrant evidencing the
      right to acquire the Warrant Shares not so assigned be issued in the name of
      and
      delivered to the undersigned.

     

     

     

    
      
        	 	
                Name
                  of Holder (print): _____________________________

              
	 	
                Signature:
                  _______________________________________

              
	 	
                By:
                  ____________________________________________

              
	 	
                Title:
                  ___________________________________________

              
	 	
                Dated:
                  __________________________________________

              

      

       

      
        
           

        

        
          17Unassociated Document

    SECURITIES
      PURCHASE AGREEMENT

     

    THIS SECURITIES
      PURCHASE AGREEMENT
      (this
“Agreement”), dated as of September ___, 2008, is entered into by and among
Federal
      Sports & Entertainment, Inc. (f/k/a
      Rite Time Mining, Inc.), a Nevada corporation (the “Company”), and the Buyer(s)
      set forth on the signature pages affixed hereto (individually, a “Buyer” or
      collectively “Buyers”).

     

     

    WITNESSETH:

     

    WHEREAS,
      the
      Company and the Buyer(s) are executing and delivering this Agreement in reliance
      upon an exemption from securities registration pursuant to Section 4(2) and/or
      Rule 506 of Regulation D (“Regulation D”) and/or Regulation S (“Regulation
      S”) as promulgated by the U.S. Securities and Exchange Commission (the “SEC”)
      under the Securities Act of 1933, as amended (the “Securities
      Act”);

     

    WHEREAS,
      the
      parties desire that, upon the terms and subject to the conditions contained
      herein, the Company shall sell to the Buyers, as provided herein, and the Buyers
      shall purchase a minimum (the “Minimum”) of Five Hundred Thousand Dollars
      ($500,000) (the “Minimum Purchase Price”) and a maximum (the “Maximum”) of up to
      One Million Dollars ($1,000,000) (the “Maximum Purchase Price” and, collectively
      with the Minimum Purchase Price, the “Purchase Price”) principal amount of
      Secured Convertible Promissory Notes (the “Notes”), which, at the option of the
      Holder and simultaneously upon the closing of the Merger (defined below), shall
      be convertible into units (“Units”) of the Company’s securities at a conversion
      price of $1.00 per Unit. Each Unit shall consist of one share of the Company’s
      common stock, par value $0.001 (the “Common Stock”) (as converted, the
“Conversion Shares”) and fifty percent (50%) of one common stock purchase
      warrant (“Conversion Warrants”), exercisable per whole Warrant at a price of
      $2.00 per share. The total Purchase Price shall be allocated among the Buyer(s)
      in the respective amounts set forth on the Buyer Counterpart Signature Page(s),
      affixed hereto (the “Subscription Amount”); 

     

    WHEREAS,
      all
      of
      the total principal amount of the Notes, subject to the deduction of any and
      all
      fees and expenses, shall be utilized by the Company to make a loan (the “Bridge
      Loan”) to Diamond Sports & Entertainment, Inc., doing business as Federal
      League Baseball (collectively with its affiliate, “FLB”); 

     

    WHEREAS,
      the
      Company (i) is currently negotiating a reverse triangular merger with FLB (the
      “Merger”) [Information Omitted];

     

    WHEREAS,
      in
      anticipation of the Merger [Information Omitted], the Company has (i) changed
      its name to “Federal Sports & Entertainment, Inc.”, (ii) increased its
      authorized capital stock (the “Recapitalization”) to 300,000,000 shares of
      Common Stock and 10,000,000 shares of preferred stock, $0.001 par value per
      share (“Preferred Stock”), and (iii) conducted a two for one forward stock split
      (the “Stock Split”) in the form of a stock dividend; 

     

    WHEREAS,
      all of
      the principal amount of the Notes shall be repaid in full (or converted)
      simultaneously with the closing of the [Information Omitted] (the Merger,
      [Information Omitted], the Stock Split and the transactions contemplated thereby
      are sometimes hereinafter referred to as the “Transactions”);

     

    WHEREAS,
      upon
      the closing of the Merger, the Company shall issue to the Buyers for each dollar
      of principal amount of the Notes (i) warrants to purchase one (1) share of
      the
      Common Stock exercisable for a period of five (5) years with an initial exercise
      price of $2.00 per share (the “Bridge Warrants”) and one (1) share of Common
      Stock (the “Bridge Shares”), subject to adjustment, as set forth in Section 4(i)
      hereof; and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    WHEREAS,
      the
      aggregate proceeds of the sale of the Notes shall be held in escrow pursuant
      to
      the terms of an escrow agreement substantially in the form of the Escrow
      Agreement among the Company, the Buyer(s), the Placement Agent (as hereinafter
      defined) and the Escrow Agent (as defined below) (the “Escrow
      Agreement”).

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and other agreements contained in this
      Agreement the Company and the Buyer(s) hereby agree as follows:

     

    1. PURCHASE
      AND SALE OF NOTES.

     

    (a) Purchase
      of Notes.
      Subject
      to the satisfaction (or waiver) of the terms and conditions of this Agreement,
      each Buyer agrees, severally and not jointly, to purchase at Closing (as defined
      herein below) and the Company agrees to sell and issue to each Buyer, severally
      and not jointly, at Closing, Notes in amounts set forth on the signature pages
      affixed hereto. Upon execution of this Agreement on the Buyer Counterpart
      Signature Page, attached hereto as Annex A, and completion of the Accredited
      Investor Certification, the Investor Profile, and if applicable, the Wire
      Transfer Authorization (each attached hereto) by a Buyer, the Buyer shall wire
      transfer the Subscription Amount set forth on the signature pages affixed hereto
      in same-day funds set forth immediately below, which Subscription Amount shall
      be held in escrow pursuant to the terms of the Escrow Agreement and disbursed
      in
      accordance therewith.

     

    Wire
      Instructions

     

    
      	 	
              Bank:
                

            	
              PNC
                Bank

            

    

    
      	 	
              ABA#:
                

            	
              031100089

            

    

    
      	 	
              Account
                Name: 

            	
              PNC
                Bank, on behalf of CSC Trust Company of Delaware as
                Escrow Agent for Federal Sports & Entertainment, Inc.;
                79-1152

            

    

    
      	 	
              Account#:
                

            	
              5605012373

            

    

    
      	 	
              FBO:
                

            	
              Buyer
                Name

            

    

    
      	 	 	
              Social
                Security Number

            

    

    
      	 	 	
              Address

            

    

    

    (b) Closing
      Date.
      The
      initial closing of the purchase and sale of the Notes (the “Closing”) shall take
      place at 10:00 a.m. Eastern Standard Time on or before the fifth (5th)
      business day following the receipt into escrow of acceptable subscriptions
      for
      at least the Minimum, subject to notification of satisfaction of the conditions
      to the Closing set forth herein and in Sections 7 and 8 below (or such later
      date as is mutually agreed to by the Company and the Buyer(s)). There may be
      multiple Closings until such time as subscriptions for the Maximum are accepted
      (the date of any such Closing is hereinafter referred to as a “Closing Date”).
      The Closing shall occur on the Closing Date at the offices of the Placement
      Agent, 488 Madison Avenue, New York, New York 10022 (or such other place as
      is
      mutually agreed to by the Company and the Buyer(s)). 

     

    (c) Escrow
      Arrangements; Form of Payment.
      Upon
      execution hereof by the Buyer and pending the Closing, the Purchase Price shall
      be deposited in a non-interest bearing escrow account with PNC Bank on behalf
      of
      CSC Trust Company of Delaware as escrow agent (the “Escrow Agent”), pursuant to
      the terms of the Escrow Agreement. Subject to the satisfaction of the terms
      and
      conditions of this Agreement, on the Closing Date, (i) the Escrow Agent shall
      deliver to the Company in accordance with the terms of the Escrow Agreement
      the
      Purchase Price for the Notes to be issued and sold to the Buyer(s) on such
      Closing Date, and (ii) the Company shall deliver to the Buyer(s), the Note,
      duly
      executed on behalf of the Company.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    2. BUYER’S
      REPRESENTATIONS AND WARRANTIES.

     

    Each
      Buyer represents and warrants, severally and not jointly, as to such Buyer,
      that:

     

    (a) Investment
      Purpose.
      Each
      Buyer is acquiring the Notes, and, upon closing of the Merger, the Buyer will
      acquire the Bridge Warrants, the Bridge Shares and/or the shares of Common
      Stock
      issuable upon exercise of the Bridge Warrants (the “Bridge Warrant Shares”),
      (and upon conversion of the Notes, if applicable, the Conversion Shares, the
      Conversion Warrants and/or the shares of Common Stock issuable upon exercise
      of
      the Warrants (the “Conversion Warrant Shares”)), for its own account for
      investment only and not with a view towards, or for resale in connection with,
      the public sale or distribution thereof, except pursuant to sales registered
      or
      exempted under the Securities Act; provided, however, that by making the
      representations herein, such Buyer reserves the right to dispose of the Bridge
      Warrants, the Bridge Shares and the Bridge Warrant Shares (and the Conversion
      Shares, the Conversion Warrants and the Conversion Warrant Shares) at any time
      in accordance with or pursuant to an effective registration statement covering
      such Bridge Warrants, the Bridge Shares and the Bridge Warrant Shares, and
      the
      Conversion Shares, the Conversion Warrants and the Conversion Warrant Shares,
      or
      an available exemption under the Securities Act. The Buyer agrees not to sell,
      hypothecate or otherwise transfer the Buyer’s securities unless such securities
      are registered under the federal and applicable state securities laws or unless,
      in the opinion of counsel satisfactory to the Company, an exemption from such
      law is available.

     

    (b) Residence
      of Buyer.
      Each
      Buyer resides in the jurisdiction set forth on the signature pages affixed
      hereto.

     

    (c) Non-US
      Person.
      If a
      Buyer is not a person in the United States or a U.S. Person (as defined in
      Rule
      902(k) of Regulation S) or is not purchasing the Notes on behalf of a person
      in
      the United States or a U.S. Person:

     

    (i) neither
      the Buyer nor any disclosed principal is a U.S. Person nor are they subscribing
      for the Notes for the account of a U.S. Person or for resale in the United
      States and the Buyer confirms that the Notes have not been offered to the Buyer
      in the United States and that this Agreement has not been signed in the United
      States;

     

    (ii) the
      Buyer
      acknowledges that the Notes have not been registered under the Securities Act
      and may not be offered or sold in the United States or to a U.S. Person unless
      the securities are registered under the U.S. Securities Act and all applicable
      state securities laws or an exemption from such registration requirements is
      available, and further agrees that hedging transactions involving such
      securities may not be conducted unless in compliance with the U.S. Securities
      Act;

     

    (iii) the
      Buyer
      and if applicable, the disclosed principal for whom the Buyer is acting,
      understands that the Company is the seller of the Notes and underlying
      securities and that, for purposes of Regulation S, a “distributor” is any
      underwriter, dealer or other person who participates pursuant to a contractual
      arrangement in the distribution of securities sold in reliance on Regulation
      S
      and that an “affiliate” is any partner, officer, director or any person directly
      or indirectly controlling, controlled by or under common control with any person
      in question. Except as otherwise permitted by Regulation S, the Buyer and if
      applicable, the disclosed principal for whom the Buyer is acting, agrees that
      it
      will not, during a one year distribution compliance period, act as a
      distributor, either directly or through any affiliate, or sell, transfer,
      hypothecate or otherwise convey the Notes or underlying securities other than
      to
      a non-U.S. Person;

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (iv) the
      Buyer
      and if applicable, the disclosed principal for whom the Buyer is acting,
      acknowledges and understands that in the event the Notes are offered, sold
      or
      otherwise transferred by the Buyer or if applicable, the disclosed principal
      for
      whom the Buyer is acting, to a non-U.S Person prior to the expiration of a
      one
      year distribution compliance period, the purchaser or transferee must agree
      not
      to resell such securities except in accordance with the provisions of Regulation
      S, pursuant to registration under the Securities Act, or pursuant to an
      available exemption from registration; and must further agree not to engage
      in
      hedging transactions with regard to such securities unless in compliance with
      the Securities Act; and

     

    (v) neither
      the Buyer nor any disclosed principal will offer, sell or otherwise dispose
      of
      the Notes or the underlying securities in the United States or to a U.S. Person
      unless (A) the Company has consented to such offer, sale or disposition and
      such
      offer, sale or disposition is made in accordance with an exemption from the
      registration requirements under the Securities Act and the securities laws
      of
      all applicable states of the United States or (B) the SEC has declared effective
      a registration statement in respect of such securities.

     

    (d) Accredited
      Investor Status.
      The
      Buyer meets the requirements of at least one of the suitability standards for
      an
“Accredited
      Investor”
as
      that
      term is defined in Rule 501(a)(3) of Regulation D, and as set forth on the
      Accredited Investor Certification attached hereto.

     

    (e) Accredited
      Investor Qualifications.
      The
      Buyer (i) if a natural person, represents that the Buyer has reached the age
      of
      21 and has full power and authority to execute and deliver this Agreement and
      all other related agreements or certificates and to carry out the provisions
      hereof and thereof; (ii) if a corporation, partnership, or limited liability
      company or partnership, or association, joint stock company, trust,
      unincorporated organization or other entity, represents that such entity was
      not
      formed for the specific purpose of acquiring the Notes, such entity is duly
      organized, validly existing and in good standing under the laws of the state
      of
      its organization, the consummation of the transactions contemplated hereby
      is
      authorized by, and will not result in a violation of state law or its charter
      or
      other organizational documents, such entity has full power and authority to
      execute and deliver this Agreement and all other related agreements or
      certificates and to carry out the provisions hereof and thereof and to purchase
      and hold the Notes, the execution and delivery of this Agreement has been duly
      authorized by all necessary action, this Agreement has been duly executed and
      delivered on behalf of such entity and is a legal, valid and binding obligation
      of such entity; or (iii) if executing this Agreement in a representative or
      fiduciary capacity, represents that it has full power and authority to execute
      and deliver this Agreement in such capacity and on behalf of the subscribing
      individual, ward, partnership, trust, estate, corporation, or limited liability
      company or partnership, or other entity for whom the Buyer is executing this
      Agreement, and such individual, partnership, ward, trust, estate, corporation,
      or limited liability company or partnership, or other entity has full right
      and
      power to perform pursuant to this Agreement and make an investment in the
      Company, and represents that this Agreement constitutes a legal, valid and
      binding obligation of such entity. The execution and delivery of this Agreement
      will not violate or be in conflict with any order, judgment, injunction,
      agreement or controlling document to which the Buyer is a party or by which
      it
      is bound;

     

    (f) Buyer
      Relationship with Placement Agent.
      The
      Buyer’s substantive relationship with Gottbetter Capital Markets, LLC as
      placement agent for the transactions contemplated hereby (“GCap,” or the
“Placement Agent”) or subagent through which the Buyer is subscribing for the
      Notes predates the Placement Agent’s or such subagent’s contact with the Buyer
      regarding an investment in the Notes;

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (g) Solicitation.
      The
      Buyer is unaware of, is in no way relying on, and did not become aware of the
      offering of the Notes through or as a result of, any form of general
      solicitation or general advertising including, without limitation, any article,
      notice, advertisement or other communication published in any newspaper,
      magazine or similar media or broadcast over television or radio, in connection
      with the offering and sale of the Notes and is not subscribing for the Notes
      and
      did not become aware of the offering of the Notes through or as a result of
      any
      seminar or meeting to which the Buyer was invited by, or any solicitation of
      a
      subscription by, a person not previously known to the Buyer in connection with
      investments in securities generally;

     

    (h) Brokerage
      Fees.
      The
      Buyer has taken no action that would give rise to any claim by any person for
      brokerage commissions, finders’ fees or the like relating to this Agreement or
      the transaction contemplated hereby (other than commissions to be paid by the
      Company to the Placement Agent (or its selected dealers);

     

    (i) Buyer’s
      Advisors.
      The
      Buyer and the Buyer’s attorney, accountant, purchaser representative and/or tax
      advisor, if any (collectively, the “Advisors”), as the case may be, has such
      knowledge and experience in financial, tax, and business matters, and, in
      particular, investments in securities, so as to enable it to utilize the
      information made available to it in connection with the Notes to evaluate the
      merits and risks of an investment in the Notes and the Company and to make
      an
      informed investment decision with respect thereto.

     

    (j) Buyer
      Liquidity.
      Each
      Buyer has adequate means of providing for such Buyer’s current financial needs
      and foreseeable contingencies and has no need for liquidity of its investment
      in
      the Notes for an indefinite period of time.

     

    (k) High
      Risk Investment; Review of Risk Factors.
      The
      Buyer is aware that an investment in the Notes, and upon closing of the Merger,
      the Bridge Shares, the Bridge Warrants and/or the Bridge Warrant Shares (and
      upon conversion of the Notes, the Conversion Shares, the Conversion Warrants
      and/or the Conversion Warrant Shares), involves a number of very significant
      risks and has carefully read and considered the matters set forth under the
      caption “Risk Factors” in the [Information Omitted], and in particular,
      acknowledges that the Company is a shell company and its ability to repay the
      Notes is based on the consummation of the Transactions.

     

    (l) Reliance
      on Exemptions.
      Each
      Buyer understands that the Notes are being offered and sold to it in reliance
      on
      specific exemptions from the registration requirements of United States federal
      and state securities laws and that the Company is relying in part upon the
      truth
      and accuracy of, and such Buyer’s compliance with, the representations,
      warranties, agreements, acknowledgments and understandings of such Buyer set
      forth herein in order to determine the availability of such exemptions and
      the
      eligibility of such Buyer to acquire such securities.

     

    (m) Information.
      Each
      Buyer and its Advisors have been furnished with all materials relating to the
      business, finances and operations of the Company and information it deemed
      material to making an informed investment decision regarding its purchase of
      the
      Notes and the underlying Units and the related Bridge Warrants and Bridge
      Shares, which have been requested by such Buyer. Each Buyer and its Advisors
      have been afforded the opportunity to review the [Information Omitted], as
      well
      as the Company’s SEC Filings, as such term is defined below (hard copies of
      which were made available to the Buyer upon request to the Company or the
      Placement Agent or were otherwise accessible to the Buyer via the SEC’s EDGAR
      system), and the information contained therein. Each Buyer and its Advisors
      have
      been afforded the opportunity to ask questions of the Company and its
      management. Neither such inquiries nor any other due diligence investigations
      conducted by such Buyer or its Advisors shall modify, amend or affect such
      Buyer’s right to rely on the Company’s representations and warranties contained
      in Section 3 below. Each Buyer has sought such accounting, legal and tax advice
      as it has considered necessary to make an informed investment decision with
      respect to its acquisition of the Notes.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (n) No
      Other Representations or Information.
      In
      evaluating the suitability of an investment in the Notes, the Buyer has not
      relied upon any representation or information (oral or written) other than
      as
      stated in the [Information Omitted]or in this Agreement. No oral or written
      representations have been made, or oral or written information furnished, to
      the
      Buyer or its Advisors, if any, in connection with the offering of the Notes
      which are in any way inconsistent with the information contained in the
      [Information Omitted];

     

    (o) No
      Governmental Review.
      Each
      Buyer understands that no United States federal or state agency or any other
      government or governmental agency has passed on or made any recommendation
      or
      endorsement of the Notes, the Bridge Warrants, the Bridge Warrant Shares or
      the
      Bridge Shares (or the Conversion Warrants, the Conversion Warrant Shares or
      the
      Conversion Shares), or the fairness or suitability of the investment in the
      Notes, the Bridge Warrants, the Bridge Warrant Shares or the Bridge Shares
      (and
      the Conversion Warrants, the Conversion Warrant Shares and the Conversion
      Shares), nor have such authorities passed upon or endorsed the merits of the
      offering of the Notes, the Bridge Warrants, the Bridge Warrant Shares or the
      Bridge Shares (or the Conversion Warrants, the Conversion Warrant Shares or
      the
      Conversion Shares). 

     

    (p) Transfer
      or Resale.
      Each
      Buyer understands that: (i) the Notes have not been and are not being registered
      under the Securities Act or any state securities laws, and may not be offered
      for sale, sold, assigned or transferred unless (A) subsequently registered
      thereunder, or (B) such Buyer shall have delivered to the Company an opinion
      of
      counsel, in a generally acceptable form, to the effect that such securities
      to
      be sold, assigned or transferred may be sold, assigned or transferred pursuant
      to an exemption from such registration requirements; (ii) any sale of such
      securities made in reliance on Rule 144 under the Securities Act (or a successor
      rule thereto) (“Rule 144”)
      may be
      made only in accordance with the terms of Rule 144 and further, if Rule 144
      is
      not applicable, any resale of such securities under circumstances in which
      the
      seller (or the person through whom the sale is made) may be deemed to be an
      underwriter (as that term is defined in the Securities Act) may require
      compliance with some other exemption under the Securities Act or the rules
      and
      regulations of the SEC thereunder; and (iii) except as otherwise set forth
      in
      this Agreement, neither the Company nor any other person is under any obligation
      to register such securities under the Securities Act or any state securities
      laws or to comply with the terms and conditions of any exemption thereunder.
      The
      Company reserves the right to place stop transfer instructions against the
      shares and certificates for the Bridge Shares and the Bridge Warrant Shares
      (and
      Conversion Shares and the Warrant Shares) to the extent specifically set forth
      under this Agreement. There can be no assurance that there will be any market
      or
      resale for the Notes, Bridge Shares, Bridge Warrants or Bridge Warrant Shares
      (or the Conversion Shares, Conversion Warrants or Conversion Warrant Shares),
      nor can there be any assurance that the Notes, Bridge Shares, Bridge Warrants
      or
      Bridge Warrant Shares (or the Conversion Shares, Conversion Warrants or
      Conversion Warrant Shares) will be freely transferable at any time in the
      foreseeable future.

     

    (q) Legends.
      Each
      Buyer understands that the certificates or other instruments representing the
      Notes, the Bridge shares, the Bridge Warrants and/or the Bridge Warrant Shares
      (and the Conversion Warrants, the Conversion Warrant Shares and/or the
      Conversion Shares) shall bear a restrictive legend in substantially the
      following form (and a stop transfer order may be placed against transfer of
      such
      stock certificates):

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SECURITIES MAY
      BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY,
      (B)
      OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER
      THE
      SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A THEREUNDER, IF
      AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) PURSUANT
      TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A TRANSACTION THAT DOES NOT
      REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES
      LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN
      OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY
      SATISFACTORY TO THE COMPANY. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES
      MAY
      NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES
      ACT.

     

    The
      legend set forth above shall be removed and the Company within three (3)
      business days shall issue a certificate without such legend to the holder of
      the
      Notes, Bridge Warrants, Bridge Warrant Shares and Bridge Shares (and the
      Conversion Warrants, Conversion Warrant Shares and Conversion Shares) upon
      which
      it is stamped, if, unless otherwise required by state securities laws, (i)
      the
      Buyer or its broker make the necessary representations and warranties to the
      transfer agent for the Common Stock that it has complied with the prospectus
      delivery requirements in connection with a sale transaction, provided the Notes,
      Bridge Warrants, Bridge Warrant Shares and Bridge Shares (and the Conversion
      Warrants, Conversion Warrant Shares and Conversion Shares) are registered under
      the Securities Act or (ii) in connection with a sale transaction, after such
      holder provides the Company with an opinion of counsel satisfactory to the
      Company, which opinion shall be in form, substance and scope customary for
      opinions of counsel in comparable transactions, to the effect that a public
      sale, assignment or transfer of the Notes, Bridge Warrants, Bridge Warrant
      Shares and Bridge Shares (or the Conversion Warrants, conversion Warrant Shares
      and Conversion Shares) may be made without registration under the Securities
      Act. 

     

    (r) Authorization,
      Enforcement.
      This
      Agreement has been duly and validly authorized, executed and delivered on behalf
      of such Buyer and is a valid and binding agreement of such Buyer enforceable
      in
      accordance with its terms, except as such enforceability may be limited by
      general principles of equity or applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation and other similar laws relating to,
      or
      affecting generally, the enforcement of applicable creditors’ rights and
      remedies.

     

    (s) Receipt
      of Documents.
      Each
      Buyer and its counsel have received and read in their entirety: (i) this
      Agreement and each representation, warranty and covenant set forth herein;
      and
      (ii) all due diligence and other information necessary to verify the accuracy
      and completeness of such representations, warranties and covenants; each Buyer
      has received answers to all questions such Buyer submitted to the Company
      regarding an investment in the Company; and each Buyer has relied on the
      information contained therein and has not been furnished any other documents,
      literature, memorandum or prospectus.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (t) Trading
      Activities.
      The
      Buyer’s trading activities with respect to the Company’s Common Stock shall be
      in compliance with all applicable federal and state securities laws, rules
      and
      regulations and the rules and regulations of the principal market on which
      the
      Company’s Common Stock is listed or traded. Neither the Buyer nor its affiliates
      has an open short position in the Common Stock of the Company and, except as
      set
      forth below, the Buyer shall not, and shall not cause any of its affiliates
      under common control with the Buyer, to engage in any short sale as defined
      in
      any applicable SEC or Financial Industry Regulatory Authority (FINRA) rules
      on
      any hedging transactions with respect to the Common Stock until the earlier
      to
      occur of (i) the third anniversary of the Closing Date and (ii) the Buyer(s)
      no
      longer own a principal balance of the Notes. Without limiting the foregoing,
      the
      Buyer agrees not to engage in any naked short transactions in excess of the
      amount of shares owned (or an offsetting long position) by the Buyer.

     

    (u) Regulation
      FD.
      Each
      Buyer acknowledges and agrees that all of the information received by it in
      connection with the transactions contemplated by this Agreement is of a
      confidential nature and may be regarded as material non-public information
      under
      Regulation FD promulgated by the SEC and that such information has been
      furnished to the Buyer for the sole purpose of enabling the Buyer to consider
      and evaluate an investment in the Notes. The Buyer agrees that it will treat
      such information in a confidential manner, will not use such information for
      any
      purpose other than evaluating an investment in the Notes, will not, directly
      or
      indirectly, trade or permit the Buyer’s agents, representatives or affiliates to
      trade in any securities of the Company while in possession of such information
      and will not, directly or indirectly, disclose or
      permit
      the Buyer’s agents, representatives or affiliates
      to
      disclose any of such information without the Company’s prior written consent.
      The Buyer shall make its agents, affiliates and representatives aware of the
      confidential nature of the information contained herein and the terms of this
      section including the Buyer’s agreement to not disclose such information, to not
      trade in the Company’s securities while in the possession of such information
      and to be responsible for any disclosure or other improper use of such
      information by such agents, affiliates or representatives. Likewise, without
      the
      Company’s prior written consent, the Buyer will not, directly or indirectly,
      make any statements, public announcements or other release or provision of
      information in any form to any trade publication, to the press or to any other
      person or entity whose primary business is or includes the publication or
      dissemination of information related to the transactions contemplated by this
      Agreement. In the event the Merger (or other business combination if such
      transaction assumes a different corporate form) is not entered into, the Company
      acknowledges that the information covered by this Section 2(u) will no longer
      be
      deemed material, non public information under Regulation FD. 

     

    (v) No
      Legal Advice from the Company.
      Each
      Buyer acknowledges that it had the opportunity to review this Agreement and
      the
      transactions contemplated by this Agreement with its own legal counsel and
      investment and tax advisors. Each Buyer is relying solely on such Advisors
      and
      not on any statements or representations of the Company or any of its
      representatives or agents for legal, tax or investment advice with respect
      to
      this investment, the transactions contemplated by this Agreement or the
      securities laws of any jurisdiction. 

     

    (w) No
      Group Participation. Each
      Buyer and its affiliates is not a member of any group, nor is any Buyer acting
      in concert with any other person, including any other Buyer, with respect to
      its
      acquisition of the Notes, Bridge Warrants, Bridge Warrant Shares or Bridge
      Shares (and the Conversion Warrants, Conversion Warrant Shares or Conversion
      Shares).

     

    (x) Reliance.
      Any
      information which the Buyer has heretofore furnished or is furnishing herewith
      to the Company or the Placement Agent is complete and accurate and may be relied
      upon by the Company and the Placement Agent in determining the availability
      of
      an exemption from registration under federal and state securities laws in
      connection with the offering of securities as described in the Transmittal
      Letter. The Buyer further represents and warrants that it will notify and supply
      corrective information to the Company and the Placement Agent immediately upon
      the occurrence of any change therein occurring prior to the Company’s issuance
      of the Notes. Within five (5) days after receipt of a request from the Company
      or the Placement Agent, the Buyer will provide such information and deliver
      such
      documents as may reasonably be necessary to comply with any and all laws and
      ordinances to which the Company or the Placement Agent is subject.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (y) (For
      ERISA plans only).
      The
      fiduciary of the ERISA plan represents that such fiduciary has been informed
      of
      and understands the Company’s investment objectives, policies and strategies,
      and that the decision to invest “plan assets” (as such term is defined in ERISA)
      in the Company is consistent with the provisions of ERISA that require
      diversification of plan assets and impose other fiduciary responsibilities.
      The
      Buyer fiduciary or Plan (a) is responsible for the decision to invest in the
      Company; (b) is independent of the Company or any of its affiliates; (c) is
      qualified to make such investment decision; and (d) in making such decision,
      the
      Buyer fiduciary or Plan has not relied primarily on any advice or recommendation
      of the Company or any of its affiliates;

     

    (z) The
      Buyer
      should check the Office of Foreign Assets Control (“OFAC”) website at
<http://www.treas.gov/ofac> before making the following representations.
      The Buyer represents that the amounts invested by it in the Company in the
      Notes
      were not and are not directly or indirectly derived from activities that
      contravene federal, state or international laws and regulations, including
      anti-money laundering laws and regulations. Federal regulations and Executive
      Orders administered by OFAC prohibit, among other things, the engagement in
      transactions with, and the provision of services to, certain foreign countries,
      territories, entities and individuals. The lists of OFAC prohibited countries,
      territories, persons and entities can be found on the OFAC website at
<http://www.treas.gov/ofac>. In addition, the programs administered by
      OFAC (the “OFAC Programs”) prohibit dealing with individuals1
      or
      entities in certain countries regardless of whether such individuals or entities
      appear on the OFAC lists;

     

    (aa) To
      the
      best of the Buyer’s knowledge, none of: (1) the Buyer; (2) any person
      controlling or controlled by the Buyer; (3) if the Buyer is a privately-held
      entity, any person having a beneficial interest in the Buyer; or (4) any person
      for whom the Buyer is acting as agent or nominee in connection with this
      investment is a country, territory, individual or entity named on an OFAC list,
      or a person or entity prohibited under the OFAC Programs. Please be advised
      that
      the Company may not accept any amounts from a prospective investor if such
      prospective investor cannot make the representation set forth in the preceding
      paragraph. The Buyer agrees to promptly notify the Company and the Placement
      Agent should the Buyer become aware of any change in the information set forth
      in these representations. The Buyer understands and acknowledges that, by law,
      the Company may be obligated to “freeze the account” of the Buyer, either by
      prohibiting additional subscriptions from the Buyer, declining any redemption
      requests and/or segregating the assets in the account in compliance with
      governmental regulations, and the Placement Agent may also be required to report
      such action and to disclose the Buyer’s identity to OFAC. The Buyer further
      acknowledges that the Company may, by written notice to the Buyer, suspend
      the
      redemption rights, if any, of the Buyer if the Company reasonably deems it
      necessary to do so to comply with anti-money laundering regulations applicable
      to the Company and the Placement Agent or any of the Company’s other service
      providers. These individuals include specially designated nationals, specially
      designated narcotics traffickers and other parties subject to OFAC sanctions
      and
      embargo programs;

     

     

      
        

      

    

    1
      These
      individuals include specially designated nationals, specially designated
      narcotics traffickers and other parties subject to OFAC sanctions and embargo
      programs.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (bb) To
      the
      best of the Buyer’s knowledge, none of: (1) the Buyer; (2) any person
      controlling or controlled by the Buyer; (3) if the Buyer is a privately-held
      entity, any person having a beneficial interest in the Buyer; or (4) any person
      for whom the Buyer is acting as agent or nominee in connection with this
      investment is a senior foreign political figure2, or
      any
      immediate family3
      member or
      close
      associate4
      of
      a
      senior foreign political figure, as such terms are defined in the footnotes
      below; and 

     

    (cc) If
      the
      Buyer is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or
      if the Buyer receives deposits from, makes payments on behalf of, or handles
      other financial transactions related to a Foreign Bank, the Buyer represents
      and
      warrants to the Company that: (1) the Foreign Bank has a fixed address, other
      than solely an electronic address, in a country in which the Foreign Bank is
      authorized to conduct banking activities; (2) the Foreign Bank maintains
      operating records related to its banking activities; (3) the Foreign Bank is
      subject to inspection by the banking authority that licensed the Foreign Bank
      to
      conduct banking activities; and (4) the Foreign Bank does not provide banking
      services to any other Foreign Bank that does not have a physical presence in
      any
      country and that is not a regulated affiliate.

     

    3. REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY.

     

    The
      Company represents and warrants to each of the Buyers that:

     

    (a) Organization
      and Qualification.
      The
      Company is a corporation duly organized and validly existing in good standing
      under the laws of the State of Nevada, and has the requisite corporate power
      to
      own its properties and to carry on its business as now being conducted. The
      Company is duly qualified as a foreign corporation to do business and is in
      good
      standing in every jurisdiction in which the nature of the business conducted
      by
      it makes such qualification necessary, except to the extent that the failure
      to
      be so qualified or be in good standing would not have a Material Adverse Effect,
      as defined below. The Company has no subsidiaries. 

     

    (b) Authorization,
      Enforcement, Compliance with Other Instruments.
      (i) The Company has the requisite corporate power and authority to enter
      into and perform this Agreement and the Escrow Agreement and all other documents
      necessary or desirable to effect the transactions contemplated hereby
      (collectively the “Transaction Documents”) and to issue the Notes, the Bridge
      Warrants, the Bridge Warrant Shares and the Bridge Shares (and the Conversion
      Warrants, the Conversion Warrant Shares and the Conversion Shares) in accordance
      with the terms hereof and thereof, (ii) the execution and delivery of the
      Transaction Documents by the Company and the consummation by it of the
      transactions contemplated hereby and thereby, including, without limitation,
      the
      issuance of the Notes, the Bridge Warrants, the Bridge Warrant Shares and the
      Bridge Shares (and the Conversion Warrants, the Conversion Warrant Shares and
      the Conversion Shares) and the reservation for issuance of the Bridge Warrant
      Shares issuable upon exercise of the Bridge Warrants (and the Conversion Shares
      and the Conversion Warrant Shares), have been duly authorized by the Company’s
      Board of Directors and no further consent or authorization is required by the
      Company, its Board of Directors or its stockholders, (iii) the Transaction
      Documents will be duly executed and delivered by the Company, (iv) the
      Transaction Documents when executed will constitute the valid and binding
      obligations of the Company enforceable against the Company in accordance with
      their terms, except as such enforceability may be limited by general principles
      of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
      liquidation or similar laws relating to, or affecting generally, the enforcement
      of creditors’ rights and remedies. 

     

    
      
        

      

    

    2
      A “senior
      foreign political figure” is defined as a senior official in the executive,
      legislative, administrative, military or judicial branches of a foreign
      government (whether elected or not), a senior official of a major foreign
      political party, or a senior executive of a foreign government-owned
      corporation. In addition, a “senior foreign political figure” includes any
      corporation, business or other entity that has been formed by, or for the
      benefit of, a senior foreign political figure.

    

    3“Immediate
      family” of a senior foreign political figure typically includes the
      figure’s parents, siblings, spouse, children and in-laws.

    

    4
      A “close
      associate” of a senior foreign political figure is a person who is widely and
      publicly known to maintain an unusually close relationship with the senior
      foreign political figure, and includes a person who is in a position to conduct
      substantial domestic and international financial transactions on behalf of
      the
      senior foreign political figure.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (c) Capitalization.
      The
      authorized capital stock of the Company, after giving effect to the
      Recapitalization, consists of 300,000,000 shares of Common Stock and 10,000,000
      shares of Preferred Stock. As of the date hereof, the Company has 5,005,000
      shares of Common Stock issued and outstanding (of which it is anticipated that
      2,505,000 shares will be retired in connection with the Merger) and 0 shares
      of
      preferred stock outstanding. All of such outstanding shares have been duly
      authorized, validly issued and are fully paid and nonassessable. No shares
      of
      Common Stock are subject to preemptive rights or any other similar rights or
      any
      liens or encumbrances suffered or permitted by the Company. As of the date
      of
      this Agreement, (i) there are no outstanding options, warrants, scrip, rights to
      subscribe to, calls or commitments of any character whatsoever relating to,
      or
      securities or rights convertible into, any shares of capital stock of the
      Company, or contracts, commitments, understandings or arrangements by which
      the
      Company is or may become bound to issue additional shares of capital stock
      of
      the Company or options, warrants, scrip, rights to subscribe to, calls or
      commitments of any character whatsoever relating to, or securities or rights
      convertible into, any shares of capital stock of the Company, (ii) there are
      no
      outstanding debt securities and (iii) there are no agreements or arrangements
      under which the Company is obligated to register the sale of any of their
      securities under the Securities Act (except in connection with the Merger and
      the [Information Omitted]), and (iv) there are no outstanding registration
      statements and there are no outstanding comment letters from the SEC or any
      other regulatory agency. There are no securities or instruments containing
      anti-dilution or similar provisions that will be triggered by the issuance
      of
      the Notes as described in this Agreement. The Notes, Bridge Warrants, Bridge
      Warrant Shares and Bridge Shares (and the Conversion Warrants, Conversion
      Warrant Shares and Conversion Shares) when issued, will be free and clear of
      all
      pledges, liens, encumbrances and other restrictions (other than those arising
      under federal or state securities laws as a result of the issuance of the
      Notes). No co-sale right, right of first refusal or other similar right exists
      with respect to the Notes, Bridge Warrants, Bridge Warrant Shares and Bridge
      Shares (or the Conversion Warrants, Conversion Warrant Shares and Conversion
      Shares) or the issuance and sale thereof. The issue and sale of the Notes,
      Bridge Warrants, Bridge Warrant Shares and Bridge Shares (and the conversion
      Warrants, Conversion Warrant Shares and Conversion Shares) will not result
      in a
      right of any holder of Company securities to adjust the exercise, exchange
      or
      reset price under such securities. The Company has made available to the Buyer
      true and correct copies of the Company’s Amended and Restated Articles of
      Incorporation, and as in effect on the date hereof (the “Articles of
      Incorporation”), and the Company’s By-laws, as in effect on the date hereof (the
“By-laws”), and the terms of all securities exercisable for Common Stock and the
      material rights of the holders thereof in respect thereto other than stock
      options issued to employees and consultants.

     

    (d) Issuance
      of Securities.
      The
      Notes are duly authorized and, upon issuance in accordance with the terms
      hereof, shall be duly issued, fully paid and nonassessable, are free from all
      taxes, liens and charges with respect to the issue thereof. The Bridge Shares
      and the Bridge Warrant Shares (and the Conversion Warrant Shares and Conversion
      Shares) have been duly authorized and reserved for issuance. Upon closing of
      the
      Merger in accordance with the Transaction Documents, the Bridge Shares and
      the
      Bridge Warrant Shares, upon exercise of the Bridge Warrants, will be duly
      issued, fully paid and nonassessable. Upon conversion or exercise in accordance
      with the Transaction Documents, the Conversion Shares and the Conversion Warrant
      Shares will be duly issued, fully paid and nonassessable.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (e) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated hereby
      will
      not (i) result in a violation of the Articles of Incorporation, any certificate
      of designations of any outstanding series of preferred stock of the Company
      or
      the By-laws or (ii) violate or conflict with, or result in a breach of any
      provision of, or constitute a default (or an event which with notice or lapse
      of
      time or both would become a default) under, or give to others any rights of
      termination, amendment, acceleration or cancellation of, any agreement,
      indenture or instrument to which the Company is a party, or result in a
      violation of any law, rule, regulation, order, judgment or decree (including
      federal and state securities laws and regulations and the rules and regulations
      of the OTC Bulletin Board (the “OTCBB”) on which the Common Stock is quoted)
      applicable to the Company or by which any property or asset of the Company
      is
      bound or affected except for those which could not reasonably be expected to
      have a material adverse effect on the assets, business, condition (financial
      or
      otherwise), results of operations or future prospects of the Company (a
“Material Adverse Effect”). Except those which could not reasonably be expected
      to have a Material Adverse Effect, the Company is not in violation of any term
      of or in default under its Articles of Incorporation or By-laws. Except those
      which could not reasonably be expected to have a Material Adverse Effect, the
      Company is not in violation of any term of or in default under any material
      contract, agreement, mortgage, indebtedness, indenture, instrument, judgment,
      decree or order or any statute, rule or regulation applicable to the Company.
      The business of the Company is not being conducted, and shall not be conducted
      in violation of any material law, ordinance, or regulation of any governmental
      entity. Except as specifically contemplated by this Agreement and as required
      under the Securities Act and any applicable state securities laws, the Company
      is not required to obtain any consent, authorization or order of, or make any
      filing or registration with, any court or governmental agency in order for
      it to
      execute, deliver or perform any of its obligations under or contemplated by
      this
      Agreement or the Escrow Agreement in accordance with the terms hereof or
      thereof. All consents, authorizations, orders, filings and registrations which
      the Company is required to obtain pursuant to the preceding sentence have been
      obtained or effected on or prior to the date hereof. The Company is unaware
      of
      any facts or circumstance, which might give rise to any of the
      foregoing.

     

    (f) SEC
      Filings; Financial Statements.
      The
      Company has timely filed (subject to 12b-25 filings with respect to certain
      periodic filings) all reports, schedules, forms, statements and other documents
      required to be filed by it with the SEC pursuant to the reporting requirements
      of the Exchange Act (as hereinafter defined) (all of the foregoing and all
      other
      documents filed with the SEC prior to the date hereof and all exhibits included
      therein and financial statements and schedules thereto and documents
      incorporated by reference therein, being hereinafter referred to herein as
      the
“SEC
      Filings”).
      The
      SEC Filings are available to the Buyers via the SEC’s EDGAR system. As of their
      respective dates, the SEC Filings complied in all material respects with the
      requirements of the Exchange Act and the rules and regulations of the SEC
      promulgated thereunder, and none of the SEC Filings, at the time they were
      filed
      with the SEC, contained any untrue statement of a material fact or omitted
      to
      state a material fact required to be stated therein or necessary in order to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading. As of their respective dates, the financial statements
      of
      the Company included in the Company’s SEC Filings with the SEC (the “Financial
      Statements”) for the year ended November 30, 2007 and the period from May 3,
      2006 (date of inception) to November 30, 2006 and any subsequent interim period
      complied as to form in all material respects with applicable accounting
      requirements and the published rules and regulations of the SEC with respect
      thereto. Such financial statements have been prepared in accordance with
      generally accepted accounting principles, consistently applied, during the
      periods involved (except (i) as may be otherwise indicated in such Financial
      Statements or the notes thereto, or (ii) in the case of unaudited interim
      statements, to the extent they may exclude footnotes or may be condensed or
      summary statements), and fairly present in all material respects the financial
      position of the Company as of the dates thereof and the results of its
      operations and cash flows for the periods then ended (subject, in the case
      of
      unaudited statements, to normal year-end audit adjustments). No other
      information provided by or on behalf of the Company to the Buyer including,
      without limitation, information referred to in this Agreement, contains any
      untrue statement of a material fact or omits to state any material fact
      necessary in order to make the statements therein, in the light of the
      circumstances under which they were made, not misleading.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (g) Absence
      of Litigation.
      There
      is no action, suit, proceeding, inquiry or investigation before or by any court,
      public board, government agency, self-regulatory organization or body pending
      against or affecting the Company or the Common Stock, wherein an unfavorable
      decision, ruling or finding would (i) adversely affect the validity or
      enforceability of, or the authority or ability of the Company to perform its
      obligations under, this Agreement or any of the documents contemplated herein,
      or (ii) have a Material Adverse Effect.

     

    (h) Acknowledgment
      Regarding Buyer’s Purchase of the Notes.
      The
      Company acknowledges and agrees that each Buyer is acting solely in the capacity
      of an arm’s length purchaser with respect to this Agreement and the transactions
      contemplated hereby. The Company further acknowledges that each Buyer is not
      acting as a financial advisor or fiduciary of the Company (or in any similar
      capacity) with respect to this Agreement and the transactions contemplated
      hereby and any advice given by such Buyer or any of their respective
      representatives or agents in connection with this Agreement and the transactions
      contemplated hereby is merely incidental to such Buyer’s purchase of the Notes,
      the Bridge Warrants, the Bridge Warrant Shares or the Bridge Shares (and the
      Convrsion Warrants, the Conversion Warrant Shares or the Conversion Shares).
      The
      Company further represents to the Buyers that the Company’s decision to enter
      into this Agreement has been based solely on the independent evaluation by
      the
      Company and its representatives.

     

    (i) No
      General Solicitation.
      Neither
      the Company, nor any of its affiliates, nor any person acting on its or their
      behalf, has engaged in any form of general solicitation or general advertising
      (within the meaning of Regulation D) in connection with the offer or sale of
      the
      Notes, the Bridge Warrants, the Bridge Warrant Shares or the Bridge
      Shares.

     

    (j) No
      Integrated Offering.
      Neither
      the Company, nor any of its affiliates, nor 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, under circumstances that would require
      registration of the Notes, the Bridge Warrants, the Bridge Warrant Shares or
      the
      Bridge Shares under the Securities Act or cause this offering of the Notes,
      the
      Bridge Warrants, the Bridge Warrant Shares or the Bridge Shares to be integrated
      with prior offerings by the Company for purposes of the Securities
      Act.

     

    (k) Employee
      Relations.
      The
      Company is not involved in any labor dispute nor, to the knowledge of the
      Company, is any such dispute threatened. None of the Company’s employees is a
      member of a union, and the Company believes that its relations with its one
      employee is good.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    (l) Intellectual
      Property Rights.
      The
      Company has no proprietary intellectual property. The Company has not received
      any notice of infringement of, or conflict with, the asserted rights of others
      with respect to any intellectual property that it utilizes.

     

    (m) Environmental
      Laws.
      

     

    (i) The
      Company has complied with all applicable Environmental Laws (as defined below),
      except for violations of Environmental Laws that, individually or in the
      aggregate, have not had and would not reasonably be expected to have a Material
      Adverse Effect. There is no pending or, to the knowledge of the Company,
      threatened civil or criminal litigation, written notice of violation, formal
      administrative proceeding, or investigation, inquiry or information request,
      relating to any Environmental Law involving the Company, except for litigation,
      notices of violations, formal administrative proceedings or investigations,
      inquiries or information requests that, individually or in the aggregate, have
      not had and would not reasonably be expected to have a Material Adverse Effect.
      For purposes of this Agreement, “Environmental Law” means any federal, state or
      local law, statute, rule or regulation or the common law relating to the
      environment or occupational health and safety, including without limitation
      any
      statute, regulation, administrative decision or order pertaining to (i)
      treatment, storage, disposal, generation and transportation of industrial,
      toxic
      or hazardous materials or substances or solid or hazardous waste; (ii) air,
      water and noise pollution; (iii) groundwater and soil contamination; (iv) the
      release or threatened release into the environment of industrial, toxic or
      hazardous materials or substances, or solid or hazardous waste, including
      without limitation emissions, discharges, injections, spills, escapes or dumping
      of pollutants, contaminants or chemicals; (v) the protection of wild life,
      marine life and wetlands, including without limitation all endangered and
      threatened species; (vi) storage tanks, vessels, containers, abandoned or
      discarded barrels, and other closed receptacles; (vii) health and safety of
      employees and other persons; and (viii) manufacturing, processing, using,
      distributing, treating, storing, disposing, transporting or handling of
      materials regulated under any law as pollutants, contaminants, toxic or
      hazardous materials or substances or oil or petroleum products or solid or
      hazardous waste. As used above, the terms “release” and “environment” shall have
      the meaning set forth in the Comprehensive Environmental Response, Compensation
      and Liability Act of 1980, as amended (“CERCLA”).

     

    (ii) To
      the
      knowledge of the Company there is no material environmental liability with
      respect to any solid or hazardous waste transporter or treatment, storage or
      disposal facility that has been used by the Company.

     

    (iii) The
      Company (i) has received all permits, licenses or other approvals required
      of
      them under applicable Environmental Laws to conduct its business and (ii) is
      in
      compliance with all terms and conditions of any such permit, license or
      approval.

     

    (n) Title.
      The
      Company does not own or lease any real or personal property.

     

    (o) Internal
      Accounting Controls.
      The
      Company is
      in
      material compliance with the provisions of the Sarbanes-Oxley Act of 2002
      currently applicable to the Company. The
      Company maintains a system of internal accounting controls sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with
      management’s general or specific authorizations, (ii) transactions are recorded
      as necessary to permit preparation of financial statements in conformity with
      generally accepted accounting principles and to maintain asset accountability,
      and (iii) the recorded amounts for assets is compared with the existing assets
      at reasonable intervals and appropriate action is taken with respect to any
      differences.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    (p) No
      Material Adverse Breaches, etc.
      Except
      as set forth in the SEC Filings, the Company is not subject to any charter,
      corporate or other legal restriction, or any judgment, decree, order, rule
      or
      regulation which in the judgment of the Company’s officers has or is expected in
      the future to have a Material Adverse Effect. Except as set forth in the SEC
      Filings, the Company is not in breach of any contract or agreement which breach,
      in the judgment of the Company’s officers, has or is expected to have a Material
      Adverse Effect.

     

    (q) Tax
      Status.
      The
      Company has made and filed all federal and state income and all other tax
      returns, reports and declarations required by any jurisdiction to which it
      is
      subject and (unless and only to the extent that the Company has set aside on
      its
      books provisions reasonably adequate for the payment of all unpaid and
      unreported taxes) has paid all taxes and other governmental assessments and
      charges that are material in amount, shown or determined to be due on such
      returns, reports and declarations, except those being contested in good faith
      and has set aside on its books provision reasonably adequate for the payment
      of
      all taxes for periods subsequent to the periods to which such returns, reports
      or declarations apply. There are no unpaid taxes in any material amount claimed
      to be due by the taxing authority of any jurisdiction, and the officers of
      the
      Company know of no basis for any such claim.

     

    (r) Certain
      Transactions.
      Except
      as set forth in the SEC Filings, and except for arm’s length transactions
      pursuant to which the Company makes payments in the ordinary course of business
      upon terms no less favorable than the Company could obtain from third parties,
      none of the officers, directors, or employees of the Company is presently a
      party to any transaction with the Company (other than for services as employees,
      officers and directors), including any contract, agreement or other arrangement
      providing for the furnishing of services to or by, providing for rental of
      real
      or personal property to or from, or otherwise requiring payments to or from
      any
      officer, director or such employee or, to the knowledge of the Company, any
      corporation, partnership, trust or other entity in which any officer, director,
      or any such employee has a substantial interest or is an officer, director,
      trustee or partner.

     

    (s) Rights
      of First Refusal.
      The
      Company is not obligated to offer the securities offered hereunder on a right
      of
      first refusal basis or otherwise to any third parties including, but not limited
      to, current or former stockholders of the Company, underwriters, brokers, agents
      or other third parties.

     

    (t) Reliance.
      The
      Company acknowledges that the Buyers are relying on the representations and
      warranties made by the Company hereunder and that such representations and
      warranties are a material inducement to the Buyer purchasing the Notes. The
      Company further acknowledges that without such representations and warranties
      of
      the Company made hereunder, the Buyers would not enter into this
      Agreement.

     

    (u) Brokers’
      Fees.
      The
      Company does not have any liability or obligation to pay any fees or commissions
      to any broker, finder or agent with respect to the transactions contemplated
      by
      this Agreement, except for the payment of a commission, to the Placement Agent,
      as more particularly described in the Term Sheet. 

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    4. COVENANTS.

     

    (a) Best
      Efforts.
      Each
      party shall use its best efforts timely to satisfy each of the conditions to
      be
      satisfied by it as provided in Sections 5 and 6 of this Agreement.

     

    (b) Form
      D.
      The
      Company agrees to file a Form D with respect to the offer and sale of the Notes
      as required under Regulation D. The Company shall, on or before the Closing
      Date, take such action as the Company shall reasonably determine is necessary
      to
      qualify the Notes, Bridge Warrants, Bridge Warrant Shares and Bridge Shares
      (and
      the Conversion Warrants, Conversion Warrant Shares and Conversion Shares),
      or
      obtain an exemption for the Notes, Bridge Warrants, Bridge Warrant Shares and
      Bridge Shares (and the Conversion Warrants, Conversion Warrant Shares and
      Conversion Shares) for sale to the Buyers at the Closing pursuant to this
      Agreement under applicable securities or “Blue Sky” laws of the states of the
      United States, and shall provide evidence of any such action so taken to the
      Buyers on or prior to the Closing Date.

     

    (c) Reporting
      Status.
      Until
      the earlier of (i) the date as of which the Buyer(s) may sell all of the Bridge
      Warrants, the Bridge Warrant Shares, and the Bridge Shares (and the Conversion
      Warrants, Conversion Warrant Shares and Conversion Shares) without restriction
      pursuant to Rule 144 promulgated under the Securities Act (or successor
      thereto), or (ii) the date on which (A) the Buyer(s) shall have sold all the
      Bridge Warrants, the Bridge Warrant Shares and the Bridge Shares (and the
      Conversion Warrants, Conversion Warrant Shares and Conversion Shares) and (B)
      none of the Notes are outstanding, the Company shall file in a timely manner
      all
      reports required to be filed with the SEC pursuant to the Securities Exchange
      Act of 1934, as amended (the “Exchange Act”), and the regulations of the SEC
      thereunder, and the Company shall not terminate its status as an issuer required
      to file reports under the Exchange Act even if the Exchange Act or the rules
      and
      regulations thereunder would otherwise permit such termination.

     

    (d) Use
      of
      Proceeds.
      The
      Company shall use 100% of the net proceeds from the sale of the Notes (deducting
      $15,000 payable to Brewer & Prichard, P.C., $[50,000] payable to the
      Placement Agent, $96,161.75 payable to Gottbetter & Partners, LLP and fees
      payable to the Escrow Agent) to make the Bridge Loan to FLB. The principal
      amount of the Bridge Loan shall equal to the gross proceeds from the sale of
      the
      Notes.

     

    (e) Reservation
      of Shares.
      The
      Company shall take all action reasonably necessary to at all times have
      authorized, and reserved for the purpose of issuance, that number of shares
      of
      Common Stock equal to equal to the sum of (i) the number of Bridge Shares,
      plus
      (ii) the number of shares of Common Stock for which the Bridge Warrants are
      exercisable from time to time based upon an exercise price (the “Exercise
      Price”) per whole Bridge Warrant of $2.00 per share.

     

    (f) Listings
      or Quotation.
      The
      Company shall use its best efforts to maintain the listing or quotation of
      its
      Common Stock upon the OTC Bulletin Board.

     

    (g) Corporate
      Existence.
      So long
      as any of the Notes remain outstanding, the Company shall not directly or
      indirectly consummate any merger, reorganization, restructuring, reverse stock
      split consolidation, sale of all or substantially all of the Company’s assets,
      enter into a change of control transaction, or any similar transaction or
      related transactions (each such transaction, an “Organizational Change”), other
      than the Recapitalization, the Stock Split, [Information Omitted] and the
      Merger, unless, prior to the consummation of an Organizational Change, the
      Company obtains the written consent of each Buyer. In any such case, the Company
      will make appropriate provision with respect to such holders’ rights and
      interests to insure that the provisions of this Section 4(g) will thereafter
      be
      applicable to the Notes. The provisions of this Section 4(g) shall be
      inapplicable with respect to any Organizational Change, including the
      Recapitalization, the Stock Split and the [Information Omitted], effected in
      connection with the Merger.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    (h) Resales
      Absent Effective Registration Statement.
      Each of
      the Buyers understands and acknowledges that (i) this Agreement and the
      agreements contemplated hereby may require the Company to issue and deliver
      Bridge Shares or Bridge Warrant Shares (and the Conversion Shares or Conversion
      Warrant Shares) to the Buyers with legends restricting their transferability
      under the Securities Act, and (ii) it is aware that resales of such Bridge
      Shares or Bridge Warrant Shares (or Conversion Shares or Conversion Warrant
      Shares) may not be made unless, at the time of resale, there is an effective
      registration statement under the Securities Act covering such Buyer’s resale(s)
      or an applicable exemption from registration. 

     

    (i) Issuance
      of Bridge Shares and Bridge Warrants.
      Concurrently
      upon the
      closing of the Merger (or such other business combination if such a transaction
      assumes a different corporate form), the Company will issue to the Buyer(s)
      the
      Bridge Shares and Bridge Warrants. The Bridge Shares shall consist of one (1)
      share of Company Common Stock for each dollar of principal amount of the Notes,
      such number of shares assumes that the [Information Omitted] of the one share
      of
      Common Stock component is $1.00 per share or greater. If the [Information
      Omitted] per share of Common Stock in the Units [Information Omitted] is less
      than $1.00 (“Re-Set Offering Price”), then the number of Bridge Shares shall
      increase to equal the aggregate principal amount of the Notes divided by Re-Set
      Offering Price. The Bridge Warrant shall be in the form attached as Exhibit
      A to
      this Agreement and the number of shares of Company Common Stock to which the
      Bridge Warrant shall be exercisable shall equal the number of Bridge Shares
      actually issued. In the event that the Merger or other business combination
      with
      FLB does not close, Buyer shall be entitled to receive Bridge Shares and Bridge
      Warrants upon the closing of any subsequent business combination by the Company
      with an operating company. 

     

    (j) Disclosure
      of Information in Form 8-K.
       Company will disclose in the Form 8-K filed with the SEC within 4 business
      days of closing the Merger (or business combination if such transaction assumes
      a different corporate form) all of the confidential information provided to
      Buyers as described in Section 2(u) of this Agreement so that Buyers will not
      be
      privy to any confidential information not made generally available to the public
      (it being understood that information not disclosed in the Form 8-K filing
      will
      no longer be deemed material, non public information under Regulation FD).
      

    

    5. CONDITIONS
      TO THE COMPANY’S OBLIGATION TO SELL.

     

    The
      obligation of the Company hereunder to issue and sell the Notes to the Buyer(s)
      at the Closing is subject to the satisfaction, at or before the Closing Date,
      of
      each of the following conditions, provided that these conditions are for the
      Company’s sole benefit and may be waived by the Company at any time in its sole
      discretion:

     

    (a) Each
      Buyer shall have executed this Agreement and completed and executed the
      Accredited Investor Certification and the Investor Profile and delivered them
      to
      the Company.

     

    (b) The
      Buyer(s) shall have delivered to the Escrow Agent the Purchase Price for Notes
      in respective amounts as set forth on the signature pages affixed hereto and
      the
      Escrow Agent shall have delivered the net proceeds to the Company by wire
      transfer of immediately available U.S. funds pursuant to the wire instructions
      provided by the Company; it being understood that the sale of the Notes shall
      not close unless the Minimum principal amount of Notes (i.e., $500,000) is
      subscribed for.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    (c) The
      representations and warranties of the Buyer(s) contained in this Agreement
      shall
      be true and correct in all material respects as of the date when made and as
      of
      the Closing Date as though made at that time (except for representations and
      warranties that speak as of a specific date), and the Buyer(s) shall have
      performed, satisfied and complied in all material respects with the covenants,
      agreements and conditions required by this Agreement to be performed, satisfied
      or complied with by the Buyer(s) at or prior to the Closing Date.

     

    6. CONDITIONS
      TO THE BUYER’S OBLIGATION TO PURCHASE.

     

    (a) The
      obligation of the Buyer(s) hereunder to purchase the Notes at the Closing is
      subject to the satisfaction, at or before the Closing Date, of each of the
      following conditions: 

     

    (i) Those
      stockholders of FLB listed on Schedule 1 to the Pledge Agreement (defined below)
      beneficially owning in the aggregate one million shares of the capital stock
      of
      FLB on a fully converted basis (such shares constituting the “FLB Control
      Shares”) shall have entered into a pledge agreement of even date herewith (the
“Pledge Agreement”) with the Company and Gottbetter & Partners, LLP as
      collateral agent (the “Collateral Agent”) pursuant to which such stockholders
      shall have pledged to, and deposited with, the Collateral Agent the FLB Control
      Shares, for the benefit of the Buyers, and the Collateral Agent, Buyers and
      holders of the FLB Control Shares shall have entered into a Pledge Shares Escrow
      Agreement.

     

    (ii) FLB
      shall
      have entered into a security agreement and intercreditor agreement (if
      applicable) of even date herewith with the Buyers pursuant to which FLB shall
      have granted and conveyed to the Buyers a security interest in all of the
      tangible and intangible assets of FLB now owned by FLB, as security for the
      full
      and timely repayment of the Notes in accordance with the terms of the
      Notes.

     

    (iii) The
      representations and warranties of the Company contained in this Agreement shall
      be true and correct in all material respects (except to the extent that any
      of
      such representations and warranties is already qualified as to materiality
      in
      Section 3 above, in which case, such representations and warranties shall be
      true and correct without further qualification) as of the date when made and
      as
      of the Closing Date as though made at that time (except for representations
      and
      warranties that speak as of a specific date) and the Company shall have
      performed, satisfied and complied in all material respects with the covenants,
      agreements and conditions required by this Agreement to be performed, satisfied
      or complied with by the Company at or prior to the Closing Date. The Company
      shall have obtained and delivered to the Placement Agent (on behalf of the
      Buyers) any and all consents, permits, approvals, registrations and waivers
      necessary or appropriate for consummation of the purchase and sale of the Notes,
      all of which shall be in full force and effect. The Placement Agent (on behalf
      of the Buyers) shall have received a certificate, executed by the President
      of
      the Company, dated as of the Closing Date, to the foregoing effect and as to
      such other matters as may be reasonably requested by the Placement Agent (on
      behalf of the Buyers), including, without limitation, an update as of the
      Closing Date regarding the representation contained in Section 3(c)
      above.

     

    (iv) The
      Company shall have executed and delivered to the Placement Agent (on behalf
      of
      the Buyers) the Notes in the respective amounts set forth on the signature
      pages
      affixed hereto and the Disbursement of Funds Memotrandum.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    (v) The
      Company shall have reserved out of its authorized and unissued Common Stock,
      solely for the purpose of effecting the issuance of the Bridge Shares and the
      exercise of the Bridge Warrants, sufficient shares of Common Stock to effect
      the
      issuance of the Bridge Shares and the exercise of the Bridge Warrants.

     

    (vi) The
      Company shall have delivered to the Placement Agent (on behalf of the Buyers)
      a
      certificate, executed on behalf of the Company by its Secretary, dated as of
      the
      Closing Date, certifying the resolutions adopted by the Board of Directors
      of
      the Company approving the transactions contemplated by this Agreement and the
      issuance of the Notes, certifying the current versions of the Articles of
      Incorporation and By-laws of the Company and certifying as to the signatures
      and
      authority of persons signing this Agreement on behalf of the Company. The
      foregoing certificate shall only be required to be delivered on the first
      Closing Date, unless any information contained in the certificate has changed.
      

     

    (vii) The
      Buyer(s) shall have received an opinion from the Company’s counsel, dated as of
      the Closing Date, in form and substance reasonably acceptable to the
      Buyers.

     

    (viii) The
      Placement Agent shall have completed all legal due diligence on FLB, to the
      extent reasonably satisfactory to the Placement Agent.

     

    (ix) FLB
      shall
      have performed and complied in all material respects with all agreements,
      covenants and conditions to closing required to be performed and complied by
      it
      under the Bridge Loan Agreement between the Company and FLB, unless such
      agreements, covenants and conditions have been waived by the Company under
      the
      Bridge Loan Agreement.

     

    (x) The
      Buyers shall have completed their legal due diligence of the Company and FLB
      to
      their satisfaction and received from the Company and FLB all executed documents
      necessary to close the contemplated transactions.

     

    (b) INDEMNIFICATION
      OF BUYERS.
      In
      consideration of the Buyer’s execution and delivery of this Agreement and
      acquiring the Notes, the Bridge Warrants, the Bridge Warrant Shares and the
      Bridge Shares (and the Conversion Warrants, the Conversion Warrant Shares and
      the Conversion Shares) hereunder, and in addition to all of the Company’s other
      obligations under this Agreement, the Company shall defend, protect, indemnify
      and hold harmless the Buyer(s) and each other holder of the Notes, the Bridge
      Warrants, the Bridge Warrant Shares and the Bridge Shares (and the Conversion
      Warrants, the Conversion Warrant Shares and the Conversion Shares), and all
      of
      their officers, directors, employees and agents (including, without
      limitation, those retained in connection with the transactions contemplated
      by
      this Agreement) (collectively, the “Buyer Indemnitees”) from and against any and
      all actions, causes of action, suits, claims, losses, costs, penalties, fees,
      liabilities and damages, and expenses in connection therewith (irrespective
      of
      whether any such Buyer Indemnitee is a party to the action for which
      indemnification hereunder is sought), and including reasonable attorneys’ fees
      and disbursements (the “Indemnified Liabilities”), incurred by the Buyer
      Indemnitees or any of them as a result of, or arising out of, or relating to
      (a)
      any material misrepresentation made by the Company in the [Information Omitted],
      (b) any material breach of any covenant, agreement or obligation of the Company
      contained in this Agreement, or (c) any cause of action, suit or claim brought
      or made against such Buyer Indemnitee and arising out of or resulting from
      the
      execution, delivery, performance or enforcement of this Agreement by any of
      the
      Buyer Indemnitees. To the extent that the foregoing undertaking by the Company
      may be unenforceable for any reason, the Company shall make the maximum
      contribution to the payment and satisfaction of each of the Indemnified
      Liabilities, which is permissible under applicable law.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    7. “PIGGYBACK”
      REGISTRATION RIGHTS.
      

     

    (a)
       Piggyback
      Registration.
      If the
      Company shall determine to register for sale for cash any of its Common Stock,
      for its own account or for the account of others (other than the any of the
      Buyers), other than (i) a registration relating solely to employee benefit
      plans
      or securities issued or issuable to employees, consultants (to the extent the
      securities owned or to be owned by such consultants could be registered on
      Form
      S-8) or any of their family members (including a registration on Form S-8)
      or
      (ii) a registration relating solely to a Securities Act Rule 145 transaction
      or
      a registration on Form S-4 in connection with a merger, acquisition,
      divestiture, reorganization or similar event, the Company shall promptly give
      to
      each of the Buyers written notice thereof (and in no event shall such notice
      be
      given less than 20 calendar days prior to the filing of such registration
      statement), and shall include as a piggyback registration (the “Piggyback
      Registration”)
      all of
      the Bridge Shares and Bridge Warrant Shares (together, the “Shares”) specified
      in a written request delivered by each of the Buyers to the Company within
      10
      calendar days after receipt of such written notice from the Company. However,
      the Company may, without the consent of the Buyers, withdraw such registration
      statement prior to its becoming effective if the Company or such other
      stockholders have elected to abandon the proposal to register the securities
      proposed to be registered thereby. In the event that the SEC limits the number
      of shares of Common Stock that may be sold in such registration statement,
      the
      Company may scale back from the registration statement such number of Shares
      on
      a pro-rata basis. In such event, the Company shall give the Buyers prompt notice
      of the number of Shares excluded therein.

     

    (b) Underwriting.
      If a
      Piggyback Registration is for a registered public offering that is to be made
      by
      an underwriting, the Company shall so advise the Buyers of the Shares eligible
      for inclusion in such registration statement pursuant to Section 7(a). In that
      event, the right of any Buyer to Piggyback Registration shall be conditioned
      upon such Buyer’s participation in such underwriting and the inclusion of such
      Buyer’s Shares in the underwriting to the extent provided herein. The Buyer
      proposing to sell any of his Shares through such underwriting shall (together
      with the Company and any other stockholders of the Company selling their
      securities through such underwriting) enter into an underwriting agreement
      in
      customary form with the underwriter selected for such underwriting by the
      Company or the selling stockholders, as applicable. Notwithstanding any other
      provision of this Section, if the underwriter or the Company determines that
      marketing factors require a limitation on the number of shares of Common Stock
      or the amount of other securities to be underwritten, the underwriter may
      exclude some or all Shares from such registration and underwriting. The Company
      shall so advise the Buyer (unless the Buyer failed to timely elect to include
      his Shares through such underwriting or has indicated to the Company his
      decision not to do so), and indicate to such Buyer the number of Shares that
      may
      be included in the registration and underwriting, if any. The number of Shares
      to be included in such registration and underwriting shall be allocated among
      all of the Buyers as follows:

     

    (i) If
      the
      Piggyback Registration was initiated by the Company, the number of shares that
      may be included in the registration and underwriting shall be allocated first
      to
      the Company and then, subject to obligations and commitments existing as of
      the
      date hereof, to all selling stockholders, including the Buyers, who have
      requested to sell in the registration on a pro rata basis according to the
      number of shares requested to be included therein; and

    (ii) If
      the
      Piggyback Registration was initiated by the exercise of demand registration
      rights by a stockholder or stockholders of the Company (other than the any
      of
      the Buyers), then the number of shares that may be included in the registration
      and underwriting shall be allocated first to such selling stockholders who
      exercised such demand and then, subject to obligations and commitments existing
      as of the date hereof, to all other selling stockholders, including the Buyers,
      who have requested to sell in the registration on a pro rata basis according
      to
      the number of shares requested to be included therein.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    8. CONFLICT
      WAIVER

     

    The
      Buyers hereby acknowledge that the Collateral Agent is counsel to the Company
      in
      connection with the transactions contemplated and referred to herein. The Buyers
      agree that in the event of any dispute arising in connection with this
      Agreement, the Pledge Agreement or otherwise in connection with any transaction
      or agreement contemplated and referred herein, the Collateral Agent shall be
      permitted to continue to represent the Company, and the Buyers will not seek
      to
      disqualify such counsel and waive any objection the Buyers might have with
      respect to the Collateral Agent acting as the Collateral Agent pursuant to
      this
      Agreement and the Pledge Agreement.

     

    9. GOVERNING
      LAW: MISCELLANEOUS.

     

    (a) Governing
      Law.
      This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of New York without regard to the principles of conflict of laws.
      The
      parties further agree that any action between them shall be heard exclusively
      in
      federal or state court sitting in the New York County, New York, and expressly
      consent to the jurisdiction and venue of the Supreme Court of New York, sitting
      in New York County and the United States District Court for the Southern
      District of New York for the adjudication of any civil action asserted pursuant
      to this paragraph.

     

    (b) Counterparts.
      This
      Agreement may be executed in two or more identical counterparts, all of which
      shall be considered one and the same agreement and shall become effective when
      counterparts have been signed by each party and delivered to the other party.
      In
      the event any signature page is delivered by facsimile transmission, the party
      using such means of delivery shall cause four (4) additional original executed
      signature pages to be physically delivered to the other party within five (5)
      days of the execution and delivery hereof.

     

    (c) Headings.
      The
      headings of this Agreement are for convenience of reference and shall not form
      part of, or affect the interpretation of, this Agreement.

     

    (d) Severability.
      If any
      provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement in that jurisdiction or
      the
      validity or enforceability of any provision of this Agreement in any other
      jurisdiction.

     

    (e) Entire
      Agreement, Amendments.
      This
      Agreement supersedes all other prior oral or written agreements between the
      Buyer(s), the Company, their affiliates and persons acting on their behalf
      with
      respect to the matters discussed herein (including any term sheet), and 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
      any
      Buyer makes any representation, warranty, covenant or undertaking with respect
      to such matters. No provision of this Agreement may be waived or amended other
      than by an instrument in writing signed by the party to be charged with
      enforcement.

     

    (f) Notices.
      Any
      notices, consents, waivers, or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered (i) upon receipt, when delivered personally; (ii) upon
      confirmation of receipt, when sent by facsimile; (iii) upon receipt when sent
      by
      U.S. certified mail, return receipt requested, or (iv) one (1) day after deposit
      with a nationally recognized overnight delivery service, in each case properly
      addressed to the party to receive the same. The addresses and facsimile numbers
      for such communications shall be:

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    
      	
              If
                to the Company, to:

            	
              Federal
                Sports & Entertainment, Inc.

            
	 	
              47395
                Monroe Street, #274

            
	 	
              Indio,
                California

            
	 	
              Attention:  
                Linda Farrell, President

            
	 	
              Telephone:
                

            
	 	 
	
              With
                a copy to:

            	
              Gottbetter
                & Partners, LLP

            
	 	
              488
                Madison Avenue, 12th
                Floor

            
	 	
              New
                York, New York 10022

            
	 	
              Attention:  
                   Adam S. Gottbetter, Esq.

            
	 	
              Telephone: (212)
                400-6900

            
	 	
              Facsimile:   
                (212) 400-6901

            

    

     

    If
      to the
      Buyer(s), to its address and facsimile number set forth on the signature pages
      affixed hereto. Each party shall provide five (5) days’ prior written notice to
      the other party of any change in address or facsimile number.

     

    (g) Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and assigns. Neither the Company nor any Buyer
      shall
      assign this Agreement or any rights or obligations hereunder without the prior
      written consent of the other party hereto.

     

    (h) No
      Third Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other person.

     

    (i) Survival.
      Unless
      this Agreement is terminated under Section 9(l), the representations and
      warranties of the Company and the Buyer(s) contained in Sections 2 and 3, the
      agreements and covenants set forth in Sections 4, 5 and 9, and the
      indemnification provisions set forth in Section 6, shall survive the Closing
      for
      a period of two (2) years following the date on which the Notes are repaid
      in
      full. The Buyer(s) shall be responsible only for its own representations,
      warranties, agreements and covenants hereunder.

     

    (j) Publicity.
      The
      Company and the Placement Agent shall have the right to approve, before issuance
      any press release or any other public statement with respect to the transactions
      contemplated hereby made by any party; provided, however, that the Company
      shall
      be entitled, without the prior approval of the Placement Agent, to issue any
      press release or other public disclosure with respect to such transactions
      required under applicable securities or other laws or regulations (the Company
      shall use its best efforts to consult the Buyer(s) in connection with any such
      press release or other public disclosure prior to its release and the Buyer(s)
      shall be provided with a copy thereof upon release thereof).

     

    (k) Further
      Assurances.
      Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    (l) Termination.
      In the
      event that the Closing shall not have occurred with respect to the Buyers on
      or
      before five (5) business days from the date hereof due to the Company’s or the
      Buyer’s failure to satisfy the conditions set forth in Sections 5 and 6 above
      (and the non-breaching party’s failure to waive such unsatisfied condition(s)),
      the non-breaching party shall have the option to terminate this Agreement with
      respect to such breaching party at the close of business on such date without
      liability of any party to any other party.

     

    (m) No
      Strict Construction.
      The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

     

    (n) Remedies.
      In
      addition to being entitled to exercise all rights provided herein or granted
      by
      law, including recovery of damages, the Buyer and the Company will be entitled
      to specific performance under this Agreement. The parties agree that monetary
      damages may not be adequate compensation for any loss incurred by reason of
      any
      breach of obligations described in the foregoing sentence and hereby agree
      to
      waive in any action for specific performance of any such obligation the defense
      that a remedy at law would be adequate.

     

    (o) ANTI
      MONEY LAUNDERING REQUIREMENTS

     

    
      	
              The
                USA PATRIOT Act

            	
              What
                is money laundering?

            	
              How
                big is the problem and why is it important?

            
	
               

              The
                USA PATRIOT Act is designed to detect, deter, and punish terrorists
                in the
                United States and abroad. The Act imposes new anti-money laundering
                requirements on brokerage firms and financial institutions. Since
                April
                24, 2002 all brokerage firms have been required to have new, comprehensive
                anti-money laundering programs.

               

              To
                help you understand theses efforts, we want to provide you with some
                information about money laundering and our steps to implement the
                USA
                PATRIOT Act.

            	
               

              Money
                laundering is the process of disguising illegally obtained money
                so that
                the funds appear to come from legitimate sources or activities. Money
                laundering occurs in connection with a wide variety of crimes, including
                illegal arms sales, drug trafficking, robbery, fraud, racketeering,
                and
                terrorism.

            	
               

              The
                use of the U.S. financial system by criminals to facilitate terrorism
                or
                other crimes could well taint our financial markets. According to
                the U.S.
                State Department, one recent estimate puts the amount of worldwide
                money
                laundering activity at $1 trillion a
                year.

            

    

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    

    
      	
              What
                are we required to do to eliminate money
                laundering?

            
	
               

              Under
                new rules required by the USA PATRIOT Act, our anti-money laundering
                program must designate a special compliance officer, set up employee
                training, conduct independent audits, and establish policies and
                procedures to detect and report suspicious transaction and ensure
                compliance with the new laws.

            	
               

              As
                part of our required program, we may ask you to provide various
                identification documents or other information. Until you provide
                the
                information or documents we need, we may not be able to effect any
                transactions for you.

            

    

    

     

    (p) Expenses.
      The
      Company acknowledges and agrees that it will pay $10,000 of Buyers’ legal fees
      and that Buyers shall deduct such amount from the proceeds wired to the Escrow
      Agent.

     

    

    [REMAINDER
      PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have caused this Securities Purchase Agreement to be
      duly
      executed as of the date first written above.

     

    

    
      	 	
              COMPANY:

            
	 	
              Federal
                Sports & Entertainment, Inc.

            
	 	 
	 	
              By:_________________________________

            
	 	
              Name:
                Linda Farrell

            
	 	
              Title:  
                President

            
	 	 

    

    

    

    
      	
               

            	
              BUYERS:

               

              The
                Buyers executing the Signature Page in the form attached hereto as
                Annex
                A
                and delivering the same to the Company or its agents shall be deemed
                to
                have executed this Agreement and agreed to the terms
                hereof.

            

    

    

    

    [SIGNATURE
      PAGE TO SECURITIES PURCHASE AGREEMENT]

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    

    Annex
      A

    

    Securities
      Purchase Agreement

    Buyer
      Counterpart Signature Page

    

    The
      undersigned, desiring to: (i) enter into the Securities Purchase Agreement
      dated
      as of September ___5,
      2008
      (the “Agreement”),
      between the undersigned, Federal Sports & Entertainment, Inc. (f/k/a Rite
      Time Mining, Inc.), a Nevada corporation (the “Company”),
      and
      the other parties thereto, in or substantially in the form furnished to the
      undersigned and (ii) purchase the Notes of the Company as set forth below,
      hereby agrees to purchase such Notes from the Company and further agrees to
      join
      the Agreement as a party thereto, with all the rights and privileges
      appertaining thereto, and to be bound in all respects by the terms and
      conditions thereof. The undersigned specifically acknowledges having read the
      representations section in the Agreement entitled “Buyer’s Representations and
      Warranties,” and hereby represent that the statements contained therein are
      complete and accurate with respect to the undersigned as a Buyer.

    

    The
      Buyer
      hereby elects to purchase $____________ Notes (to be completed by the Buyer)
      under the Securities Purchase Agreement.

    

    

    
      	 	
              Name
                of Buyer:

            
	 	 
	 	
              If
                an entity:

            
	 	 
	 	
              Print
                Name of Entity:

            
	 	 
	 	____________________________________
	 	 
	 	
              By:
                ______________________________________

            
	 	
                    
                Name:

            
	 	
                    
                Title:

            
	 	 
	 	
              If
                an individual:

            
	 	 
	 	
              Print
                Name: ________________________________

            
	 	 
	 	
              Signature:
                _________________________________

            
	 	 
	 	
              All
                Buyers:

            
	 	 
	 	
              Address:
                _________________________________

            
	 	 
	 	____________________________________
	 	 
	 	
              Telephone
                No.: _____________________________

            
	 	 
	 	
              Facsimile
                No.: ______________________________

            
	 	 
	 	
              Email
                Address:
                _____________________________

            

    

    

    
       

      
        

      

    

    5
      Will reflect the Closing Date. Not to be completed by
      Buyer.

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

     

    SCHEDULE
      I

     

    SCHEDULE
      OF BUYERS 

    

    
      	
              Name

            	
              Amount
                of Subscription

            
	 	 
	 	 
	 	 
	 	 
	 	 

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    FEDERAL
      SPORTS & ENTERTAINMENT, INC.

    ACCREDITED
      INVESTOR CERTIFICATION

    

    For
      Individual Investors Only

    (all
      Individual Investors must INITIAL
      where appropriate):

    

    
      	
              Initial
                _______ 

            	
              I
                have a net worth (including home, furnishings and automobiles) of
                at least
                $1 million either individually or through aggregating my individual
                holdings and those in which I have a joint, community property or
                other
                similar shared ownership interest with my
                spouse.

            

    

    
      	
              Initial
                _______

            	
              I
                have had an annual gross income for the past two years of at least
                $200,000 (or $300,000 jointly with my spouse) and expect my income
                (or
                joint income, as appropriate) to reach the same level in the current
                year.

            

    

    
      	
              Initial
                _______

            	
              I
                am a director or executive officer of Federal Sports & Entertainment,
                Inc. (f/k/a Axxent Media
                Corporation).

            

    

    

    For
      Non-Individual Investors

    (all
      Non-Individual Investors must INITIAL
      where appropriate):

    

    
      	
              Initial
                _______

            	
              The
                investor certifies that it is a partnership, corporation, limited
                liability company or business trust that is 100% owned by persons
                who meet
                at least one of the criteria for Individual Investors set forth above.
                

            

    

    
      	
              Initial
                _______

            	
              The
                investor certifies that it is a partnership, corporation, limited
                liability company or business trust that has total assets of at least
                $5
                million and was not formed for the purpose of investing the
                Company.

            

    

    
      	
              Initial
                _______

            	
              The
                investor certifies that it is an employee benefit plan whose investment
                decision is made by a plan fiduciary (as defined in ERISA §3(21)) that is
                a bank, savings and loan association, insurance company or registered
                investment advisor.

            

    

    
      	
              Initial
                _______

            	
              The
                investor certifies that it is an employee benefit plan whose total
                assets
                exceed $5,000,000 as of the date of this
                Agreement.

            

    

    
      	
              Initial
                _______

            	
              The
                undersigned certifies that it is a self-directed employee benefit
                plan
                whose investment decisions are made solely by persons who meet at
                lease
                one of the criteria for Individual
                Investors.

            

    

    
      	
              Initial
                _______

            	
              The
                investor certifies that it is a U.S. bank, U.S. savings and loan
                association or other similar U.S. institution acting in its individual
                or
                fiduciary capacity.

            

    

    
      	
              Initial
                _______

            	
              The
                undersigned certifies that it is a broker-dealer registered pursuant
                to
                §15 of the Securities Exchange Act of
                1934.

            

    

    
      	
              Initial
                _______

            	
              The
                investor certifies that it is an organization described in §501(c)(3) of
                the Internal Revenue Code with total assets exceeding $5,000,000
                and not
                formed for the specific purpose of investing in the
                Company.

            

    

    
      	Initial
              _______	
              The
                investor certifies that it is a trust with total assets of at least
                $5,000,000, not formed for the specific purpose of investing in the
                Company, and whose purchase is directed by a person with such knowledge
                and experience in financial and business matters that such person
                is
                capable of evaluating the merits and risks of the prospective
                investment. 

            

    

    
      	
              Initial
                _______

            	
              The
                investor certifies that it is a plan established and maintained by
                a state
                or its political subdivisions, or any agency or instrumentality thereof,
                for the benefit of its employees, and which has total assets in excess
                of
                $5,000,000.

            

    

    
      	Initial
              _______	
              The
                investor certifies that it is an insurance company as defined in
§2(13) of
                the Securities Act of 1933, or a registered investment
                company. 

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Investment
      Objectives:
      The
      typical investment listed with each objective are only some examples of the
      kinds of investments that have historically been consistent with the listed
      objectives. However, neither Federal Sports & Entertainment, Inc. nor
      Gottbetter Capital Markets, LLC can assure that any investment will achieve
      your
      intended objective. You must make your own investment decisions and determine
      for yourself if the investments you select are appropriate and consistent with
      your investment objectives. 

    

    Neither
      Federal Sports & Entertainment, Inc. nor Gottbetter Capital Markets, LLC
      assumes responsibility to you for determining if the investments you selected
      are suitable for you.

    

    Preservation
      of Capital:
      An
      investment objective of Preservation
      of Capital
      indicates you seek to maintain the principal value of your investments and
      are
      interested in investments that have historically demonstrated a very low degree
      of risk of loss of principal value. Some examples of typical investments might
      include money market funds and high quality, short-term fixed income
      products.

    

    Income:
      An
      investment objective of
      Income indicates
      you seek to generate from investments and are interested in investments that
      have historically demonstrated a low degree of risk of loss of principal value.
      Some examples of typical investments might include high quality, short and
      medium-term fixed income products, short-term bond funds and covered call
      options. 

    

    Capital
      Appreciation:
      An
      investment objective of Capital
      Appreciation
      indicates you seek to grow the principal value of your investments over time
      and
      are willing to invest in securities that have historically demonstrated a
      moderate to above average degree of risk of loss of principal value to pursue
      this objective. Some examples of typical investments might include common
      stocks, lower quality, medium-term fixed income products, equity mutual funds
      and index funds. 

    

    Trading
      Profits:
      An
      investment objective of Trading
      Profits
      indicates you seek to take advantage of short-term trading opportunities, which
      may involve establishing and liquidating positions quickly. Some examples of
      typical investments might include short-term purchases and sales of volatile
      or
      low prices common stocks, put or call options, spreads, straddles and/or
      combinations on equities or indexes. This is a high-risk strategy.

    

    Speculation:
      An
      investment objective of Speculation
      indicates
      you seek a significant increase in the principal value of your investments
      and
      are willing to accept a corresponding greater degree of risk by investing in
      securities that have historically demonstrated a high degree of risk of loss
      of
      principal value to pursue this objective. Some examples of typical investments
      might include lower quality, long-term fixed income products, initial public
      offerings, volatile or low priced common stocks, the purchase or sale of put
      or
      call options, spreads, straddles and/or combinations on equities or indexes,
      and
      the use of short-term or day trading strategies. 

    

    Other:
      Please
      specify.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]