Document:

Exhibit
      10.3

     

    TERMINATION
      OF LETTER OF INTENT

     

    May
      10,
      2007

    

    Youssef
      M
      Habib, CEO

    Illuminex
      Corporation

    1064
      New
      Holland Ave.

    Lancaster,
      PA 17601

    

    Dear
      Mr.
      Habib:

     

    The
      undersigned, Samdrew IV, Inc. (“Samdrew”), has entered into that certain Letter
      of Intent
      for
      Reverse Merger
      with
Illuminex
      Corporation (“Illuminex”)
      dated
      June 20, 2006 (the “Letter of Intent”) and has entered into the Amendment to the
      Letter of Intent, dated January 9, 2007 (the “Amendment”). 

    

    As
      of the
      date hereof, both Samdrew and Illuminex have not entered into the Definitive
      Agreements (as defined in the Letter of Intent). Accordingly, pursuant to clause
      4 of the Amendment, Samdrew hereby terminates the Letter of Intent and the
      Amendment, and obligations thereunder, effective immediately. 

     

    
      	 	 	 
	 	
              Very
                truly yours,

               

              
                SAMDREW
                  IV, INC.

              

            
	 
 	 
 	 
 
	
            	By:  	/s/
              David N.
              Feldman 
	 	
              

              Name:
                David N. Feldman

              Title:
                PresidentUnassociated Document

    

      SECURITIES
        PURCHASE AGREEMENT

       

      Securities
        Purchase Agreement dated as of May 8, 2007 (this “Agreement”)
        by and
        between GPS Industries, Inc., a Nevada corporation, with principal executive
        offices located at Suite 214, 5500 152nd Street. Surrey, British Columbia,
        Canada V35 S59 (the “Company”),
        and
        the entities listed on the signature page hereof (individually referred to
        as a
“Buyer”
and
        collectively the “Buyers”).

       

      WHEREAS,
        on November 13, 2006 the Company entered into that certain Securities Purchase
        Agreement (the “2006
        Purchase Agreement”)
        with
        Great White Shark Enterprises, Inc., a Florida corporation (“GWSE”),
        and
        Leisurecorp LLC, a Dubai limited liability company (“Leisurecorp”),
        in
        connection with the purchase by GWSE and Leisurecorp of shares of the Company’s
        Series B Convertible Preferred Stock (the “Preferred
        Shares”)
        and
        warrants to purchase shares of the Company’s common stock (the “Common
        Stock”)
        at an
        exercise price per share of $.122 (the “Warrants”);
        and

       

      WHEREAS,
        under the 2006 Purchase Agreement, each of the Buyers has the right, exercisable
        until April 28, 2007, to purchase additional Preferred Shares and Warrants
        on
        the same terms as set forth in the 2006 Purchase Agreement; and 

       

      WHEREAS,
        the Buyers have exercised their rights to purchase from the Company additional
        Preferred Shares and Warrants; and

       

      WHEREAS,
        as set forth herein, the Company and the Buyers have agreed to modify the
        terms
        upon which the Buyers are purchasing the additional Preferred Shares and
        Warrants;

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants contained
        herein, the parties hereto, intending to be legally bound, hereby agree as
        follows:

       

      I.

      PURCHASE
        AND SALE OF PREFERRED SHARES AND WARRANT

       

      A.  
Transaction.
        Subject
        to the satisfaction of the conditions set forth in Articles VI and VII, at
        the
        Closing (as defined below), each Buyer hereby severally agrees to purchase
        from
        the Company, and the Company hereby agrees to issue and sell to each Buyer
        in a
        transaction exempt from the registration and prospectus delivery requirements
        of
        the Securities Act of 1933, as amended (the “Securities
        Act”),
        the
        Preferred Shares and Warrants listed under each Buyer’s name on the signature
        page of this Agreement.

       

      B.  
Purchase
        Price; Form of Payment.
        The
        purchase price for the Preferred Shares and Warrants purchased pursuant to
        this
        Agreement shall be paid by Leisurecorp and GWSE as follows: (i) At the Closing,
        Leisurecorp shall pay the entire $10,000,000 purchase price for the Preferred
        Shares and Warrants purchased hereunder by delivering to the Company an
        interest-free promissory note, the form of which is attached hereto as Appendix
        A, having an initial principal balance of $10,000,000 (the “Note”),
        and a
        pledge and security agreement (the “Security
        Agreement”)
        in the
        form attached hereto as Appendix B; (ii) GWSE shall pay the $2,500,000 purchase
        price for the Preferred Shares and Warrants purchased hereunder by issuing
        a
        $1,500,000 wire transfer of immediately available funds to the account of
        the
        Company as notified by the Company and by canceling $1,000,000 of the currently
        outstanding balance that the Company owes to GWSE under that certain Endorsement
        Agreement, dated April 1, 2003, as amended (the “Endorsement
        Agreement”).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      C.  
Closing
        Deliveries.
        At the
        closing of the purchase and sale of the Preferred Shares and the Warrants
        (the
“Closing”)
        that
        will occur immediately following the execution and delivery of this Agreement,
        (i) the Company shall issue to the Buyers the Preferred Shares and Warrants
        listed on the signature pages of this Agreement, (ii) Leisurecorp shall deliver
        to the Company the fully executed Note and the fully executed Security
        Agreement, (iii) GWSE shall pay $1,500,000 of its $2,500,000 purchase price
        by
        issuing a $1,500,000 wire transfer of immediately available funds to the
        account
        of the Company as specified by the Company, and (iv) GWSE shall execute a
        debt
        exchange agreement (the “Debt
        Exchange Agreement”),
        the
        form of which is attached hereto as Appendix C, that effects and evidences
        the
        cancellation of $1,000,000 of the currently outstanding balance of the amounts
        due under the Endorsement Agreement. The stock certificate representing the
        Preferred Shares and the agreement evidencing the Warrant purchased by GWSE
        shall be delivered to GWSE at the Closing. The stock certificate representing
        the 1,000,000 Preferred Shares purchased by Leisurecorp shall be issued as
        three
        stock certificates (two for 400,000 shares each, and one for 200,000 shares),
        and the Warrant purchased by Leisurecorp shall be issued as three separate
        warrants (two representing the right to purchase 16,393,442 shares each,
        and one
        representing the right to purchase 8,196,723 shares). The three stock
        certificates and the three warrants registered in the name of Leisurecorp
        shall
        be retained by the Company under the Security Agreement and shall be released
        to
        Leisurecorp in accordance with the terms of the Security Agreement.

       

      II.

      BUYER’S
        REPRESENTATIONS AND WARRANTIES

       

      Except
        as
        set forth in Articles II. G and H, which representations and warranties shall
        be
        made solely by the Buyer referenced in such section, each Buyer severally
        represents and warrants to and covenants and agrees with the Company as
        follows:

       

      A.  
Buyer
        is
        purchasing the Preferred Shares, the Common Stock issuable upon conversion
        of
        the Preferred Shares (the “Conversion
        Shares”),
        the
        Warrants and the Common Stock issuable upon exercise of the Warrants (the
        “Warrant
        Shares”
and,
        collectively with the Preferred Shares, the Conversion Shares and the Warrants
        subject to this Agreement, the “Securities”),
        for
        its own account, for investment purposes only and not with a view towards
        or in
        connection with the public sale or distribution thereof in violation of the
        Securities Act.

       

      B.  
Buyer
        is
        (i) an “accredited investor” within the meaning of Rule 501 of Regulation D
        under the Securities Act, (ii) experienced in making investments of the kind
        contemplated by this Agreement, (iii) capable, by reason of its business
        and
        financial experience, of evaluating the relative merits and risks of an
        investment in the Securities, and (iv) able to afford the loss of its investment
        in the Securities.

       

      C.  
Buyer
        understands that the Securities are being offered and sold by the Company
        in
        reliance on an exemption from the registration requirements of the Securities
        Act and equivalent state securities and “blue sky” laws, and that the Company is
        relying upon the accuracy of, and Buyer’s compliance with, Buyer’s
        representations and warranties set forth in this Agreement to determine the
        availability of such exemption and the eligibility of Buyer to purchase the
        Securities;

       

      
        
          
          

        

        
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      D.  
Buyer
        understands that the Securities have not been approved or disapproved by
        the
        Securities and Exchange Commission (the “Commission”)
        or any
        state or provincial securities commission.

       

      E.  
This
        Agreement has been duly and validly authorized, executed and delivered by
        Buyer
        and is a valid and binding agreement of Buyer enforceable against it in
        accordance with its terms, subject to applicable bankruptcy, insolvency,
        fraudulent conveyance, reorganization, moratorium and similar laws affecting
        creditors’ rights and remedies generally and except as rights to indemnity and
        contribution may be limited by federal or state securities laws or the public
        policy underlying such laws.

       

      F.  
Since
        June 1, 2006, neither such Buyer nor any person over which such Buyer has
        control which (x) had knowledge of the transactions contemplated hereby,
        (y) has
        or shares discretion relating to such Buyer’s investments or trading or
        information concerning such Buyer’s investments, including in respect of the
        Securities, or (z) is subject to such Buyer’s review or input concerning such
        affiliate’s investments or trading (collectively, “Trading
        Affiliates”)
        has,
        directly or indirectly, effected or agreed to effect any short sale, whether
        or
        not against the box, established any “put equivalent position” (as defined in
        Rule 16a-1(h) under the Securities Exchange Act of 1934, as amended (the
        “1934
        Act”))
        with
        respect to the Common Stock, granted any other right (including, without
        limitation, any put or call option) with respect to the Common Stock or with
        respect to any security that includes, relates to or derived any significant
        part of its value from the Common Stock. 

       

      G.  
Leisurecorp,
        on its own behalf, hereby represents and warrants that the Note and Security
        Agreement have been duly and validly authorized, executed and delivered by
        Leisurecorp and that each of the Note and the Security Agreement is a valid
        and
        binding agreement of Leisurecorp enforceable against it in accordance with
        their
        respective terms, subject to applicable bankruptcy, insolvency, fraudulent
        conveyance, reorganization, moratorium and similar laws affecting creditors’
rights and remedies generally.

       

      H.  
GWSE,
        on
        its own behalf, hereby represents and warrants that the Debt Exchange Agreement
        has been duly and validly authorized, executed and delivered by GWSE and
        that
        Debt Exchange Agreement is a valid and binding agreement of GWSE enforceable
        against it in accordance with its terms, subject to applicable bankruptcy,
        insolvency, fraudulent conveyance, reorganization, moratorium and similar
        laws
        affecting creditors’ rights and remedies generally.

       

      III.

      THE
        COMPANY’S REPRESENTATIONS

       

      The
        Company represents and warrants to Buyers that:

       

      A.  
Organization
        and Qualification.
        The
        Company and each of its Subsidiaries (as defined below), if any, is a
        corporation duly organized, validly existing and in good standing under the
        laws
        of the jurisdiction in which it is incorporated, with full power and authority
        (corporate and other) to own, lease, use and operate its properties and to
        carry
        on its business as and where now owned, leased, used, operated and conducted.
        The Company and each of its Subsidiaries is duly qualified as a foreign
        corporation to do business and is in good standing in every jurisdiction
        in
        which its ownership or use of property or the nature of the business conducted
        by it makes such qualification necessary except where the failure to be so
        qualified or in good standing would not have a Material Adverse Effect.
“Material
        Adverse Effect”
means
        any of (i) a material and adverse effect on the legality, validity or
        enforceability of any document executed by the Company in connection with
        the
        transactions contemplated by this Agreement and the Warrants (the foregoing
        documents are herein collectively referred to as the “Transaction
        Documents”),
        (ii)
        a material and adverse effect on the results of operations, assets, prospects,
        business or condition (financial or otherwise) of the Company and the
        Subsidiaries, taken as a whole, or (iii) an adverse impact on the Company’s
        ability to perform under any of the Transaction Documents. “Subsidiary”
or
        “Subsidiaries”
means
        any corporation(s) or other organization(s), whether incorporated or
        unincorporated, in which the Company owns, directly or indirectly, any equity
        or
        other ownership interest.

       

      
        
          
          

        

        
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      B.  
Authorization;
        Enforcement.
        (i) The
        Company has all requisite corporate power and authority to enter into and
        perform this Agreement and the other Transaction Documents and to consummate
        the
        transactions contemplated hereby and thereby and to issue the Preferred Shares,
        the Warrants, the Conversion Shares, and the Warrant Shares, in accordance
        with
        the terms hereof and thereof, (ii) the execution and delivery of this Agreement
        and the other Transaction Documents by the Company and the consummation by
        it of
        the transactions contemplated hereby and thereby (including without limitation,
        the issuance of the Conversion Shares and the Warrant Shares) have been duly
        authorized by the Company’s Board of Directors and no further consent or
        authorization of the Company, its Board of Directors, its shareholders or
        any
        third party is required, (iii) this Agreement has been, and the other
        Transaction documents when executed, will be duly executed and delivered
        by the
        Company, and (iv) this Agreement constitutes, and upon execution and delivery
        by
        the Company of the other Transaction Documents, each of such instruments
        will
        constitute, a legal, valid and binding obligation of the Company enforceable
        against the Company in accordance with its terms.

       

      C.  
Capitalization.
        

       

      (i)  
As
        of the
        date hereof, the authorized capital stock of the Company consists solely
        of (i)
        1,600,000,000 shares of Common Stock, of which 376,533,966 shares are issued
        and
        outstanding, 40 million shares are reserved for issuance pursuant to the
        Company’s stock option plans, of which options for the purchase of 24,290,000
        are outstanding, and 411,432,650 shares are reserved for issuance pursuant
        to
        securities exercisable for, or convertible into or exchangeable for shares
        of
        Common Stock (including the shares issuable upon conversion of the Preferred
        Shares and exercise of the Warrants issued to GWSE and Leisurecorp under
        the
        2006 Purchase Agreement); and (ii) 50,000,000 shares of preferred stock (the
        “Preferred
        Stock”),
        of
        which 15,000,000 shares have been designated “Series A Preferred Stock,” and
        4,000,000 have been designated “Series B Convertible Preferred Stock.” As of the
        date hereof, no shares of Series A Preferred Stock are outstanding, and a
        total
        of 1,874,089 shares of Series B Convertible Preferred Stock are issued and
        outstanding. Except as set forth in this paragraph and in Schedule C(i),
        as of
        the date hereof there are no other securities exercisable for, or convertible
        into or exchangeable for shares of capital stock of the Company, and the
        Company
        has no contractual or other obligation to issue any shares of capital stock.
        There are no other authorized shares of capital stock or voting securities.
        The
        Company currently has a sufficient number of authorized shares of Common
        Stock
        to cover all shares of Common Stock that are issuable as of the date of this
        Agreement if all currently issued and outstanding options, warrants and
        convertible or exchangeable securities were exercised, converted or exchanged
        on
        the date hereof.

       

      
        
          
          

        

        
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      (ii)  Immediately
        after giving effect to the transactions contemplated by this Agreement, the
        authorized capital stock of the Company will consist of (a) 1,600,000,000
        shares
        of Common Stock, of which a maximum of 376,533,966 shares will be issued
        and
        outstanding (assuming no exercise of currently outstanding options or warrants,
        a true and complete schedule of which is attached hereto as Schedule C(ii)),
        40
        million shares will be reserved for issuance pursuant to the Company’s stock
        option plans, of which options for the purchase of 24,290,000 will be
        outstanding (assuming no exercise of currently outstanding options), and
        667,580,191 shares will be reserved for issuance pursuant to then outstanding
        agreements or then outstanding securities exercisable for, or convertible
        into
        or exchangeable for shares of Common Stock; and (b) 50,000,000 shares of
        preferred stock, of which 15,000,000 shares have been designated “Series A
        Preferred Stock” (none of which will be outstanding), and 4,000,000 shares have
        been designated “Series B Convertible Preferred Stock,” of which 3,124,089
        shares will be issued and outstanding. As of the Closing Date, except as
        set
        forth in this paragraph and on Schedule C(ii), there will be no other securities
        exercisable for, or convertible into or exchangeable for shares of Common
        Stock
        or Preferred Stock, the Company will have no contractual or other obligation
        to
        issue any shares of capital stock, and there will be no other authorized
        shares
        of capital stock or voting securities. 

       

      (iii)       
        All of the Company’s outstanding shares of capital stock are duly and validly
        issued, fully paid and nonassessable and were issued in compliance with state
        and federal securities laws and were not issued in violation of any preemptive
        or similar rights. 

       

      (iv)  
The
        Warrants and the Preferred Shares to be issued pursuant to this Agreement
        have
        been duly authorized and when issued in accordance with the terms of this
        Agreement will be fully paid and non-assessable and will be free and clear
        of
        any liens other than any liens created by the holder thereof, and will not
        be
        issued in violation of any preemptive or similar rights and will be issued
        in
        compliance with federal and state securities laws. The Common Stock issuable
        upon conversion of the Preferred Shares and exercise of the Warrants will
        be
        duly and validly, fully paid and non-assessable and will be free and clear
        of
        any liens other than any liens created by the holder thereof, and will not
        be
        issued in violation of any preemptive or similar rights and will be issued
        in
        compliance with federal and state securities laws. 

       

      (v)  
The
        Company has issued options to purchase Common Stock and warrants exercisable
        for
        Common Stock on the terms and in the amounts set forth on Schedule C (the
        “Convertible
        Securities”).
        Except for the Convertible Securities and except as otherwise set forth on
        Schedule C, there are no outstanding options, warrants, rights (including
        conversion or preemptive rights and other similar rights) or agreements,
        orally
        or in writing for the purchase or acquisition from the Company of any of
        its
        shares of capital stock.

       

      
        
          
          

        

        
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      (vi)  
The
        holders of Series B Preferred Shares will be entitled to the rights, preferences
        and privileges as set forth in the Certificate of Designation of the Series
        B
        Convertible Preferred Stock (the “Certificate
        of Designation”).
        The
        Company has furnished to the Buyers true and correct copies of the Company's
        Articles of Incorporation as in effect on the date hereof ("Articles
        of Incorporation")
        and
        the Company's By-laws, as in effect on the date hereof (the "By-laws"),
        

       

      (vii)  
Except
        for the Shareholder Agreement entered into as of December 29, 2006 by and
        between the Company, GWSE, Leisurecorp, Robert C. Silzer, Sr., and Douglas
        Wood,
        the Company is not a party or subject to any agreement or understanding relating
        to the voting or giving of written consents with respect to any capital stock
        or
        by a director of the Company. 

       

      D.  
Acknowledgment
        of Dilution.
        The
        Company understands and acknowledges the potentially dilutive effect to the
        Conversion Shares and Warrant Shares issuable upon conversion of the Preferred
        Shares or exercise of the Warrants. The Company further acknowledges that,
        except as set forth in Article IV.F., its obligation to issue the Conversion
        Shares and Warrant Shares in accordance with this Agreement, the Articles
        of
        Incorporation, the Certificate of Designation, and the Warrants is absolute
        and
        unconditional regardless of the dilutive effect that such issuance may have
        on
        the ownership interests of other shareholders of the Company. 

       

      E.  
No
        Conflicts.
        The
        execution, delivery and performance of this Agreement and the other Transaction
        Documents by the Company and the consummation by the Company of the transactions
        contemplated hereby and thereby (including, without limitation, the issuance
        and
        reservation for issuance of the Conversion Shares and Warrant Shares) will
        not
        (i) conflict with or result in a violation of any provision of the Articles
        of
        Incorporation or 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 could become a default) under, or give to others any
        rights of termination, amendment, acceleration or cancellation of, any material
        agreement, indenture, patent, patent license or instrument to which the Company
        or any of its Subsidiaries is a party, or (iii) result in a violation of
        any
        law, rule, regulation, order, judgment or decree (including federal and state
        securities laws and regulations and regulations of any self-regulatory
        organizations to which the Company or its securities are subject) applicable
        to
        the Company or any of its Subsidiaries or by which any property or asset
        of the
        Company or any of its Subsidiaries is bound or affected. The businesses of
        the
        Company and its Subsidiaries, if any, are not being conducted, and shall
        not be
        conducted so long as a Buyer owns any of the Securities, in violation of
        any
        law, ordinance or regulation of any governmental entity. Neither the Company
        nor
        any of its Subsidiaries is in violation of its Certificate or Articles of
        Incorporation, By-laws or other organizational documents and neither the
        Company
        nor any of its Subsidiaries is in default under any material contract, agreement
        or understanding to which it is a party or by which it or its assets or
        properties is bound. 

       

      F.  
SEC
        Documents; Financial Statements.
        Since
        December 31, 2004 the Company has timely filed all reports, schedules, forms,
        statements and other documents required to be filed by it with the SEC pursuant
        to the reporting requirements of the 1934 Act (all of the foregoing 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
        Documents”).
        As of
        their respective dates, the SEC Documents complied in all material respects
        with
        the requirements of the 1934 Act and the rules and regulations of the SEC
        promulgated thereunder applicable to the SEC Documents, and none of the SEC
        Documents, 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. None of the
        statements made in any such SEC Documents is, or has been, required to be
        amended or updated under applicable law (except for such statements as have
        been
        amended or updated in subsequent filings prior the date hereof). As of their
        respective dates, the financial statements of the Company included in the
        SEC
        Documents, including the notes thereto (the “Financial
        Statements”),
        complied as to form in all material respects with applicable accounting
        requirements and the published rules and regulations of the SEC with respect
        thereto, were complete and correct in all material respects as of their
        respective dates, and were prepared in accordance with generally accepted
        accounting principles applied on a consistent basis throughout the periods
        indicated. The Financial Statements fairly present the consolidated financial
        condition and operating results of the Company at the dates and during the
        periods indicated therein (subject in the case of unaudited statements, to
        normal and recurring year-end adjustments) Except as set forth in the Financial
        Statements, the Company has no liabilities, contingent or otherwise, other
        than
        (i) liabilities incurred in the ordinary course of business subsequent to
        June
        30, 2006 and (ii) obligations under contracts and commitments incurred in
        the
        ordinary course of business and not required under generally accepted accounting
        principles to be reflected in such financial statements, which in the case
        of
        (i) or (ii), individually or in the aggregate, are not material to the financial
        condition or operating results of the Company. 

       

      
        
          
          

        

        
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      G.  
Absence
        of Certain Changes.
        Since
        December 31, 2005, there has been no material adverse change and no material
        adverse development in the assets, liabilities, business, properties,
        operations, financial condition, results of operations or prospects of the
        Company or any of its Subsidiaries.

       

      H.  
Absence
        of Litigation.
        Except
        as set forth in the SEC Documents and Schedule H, there is no action, suit,
        claim, proceeding, inquiry, or investigation before or by any court, public
        board, government agency, self-regulatory organization or body pending or,
        to
        the knowledge of the Company or any of its Subsidiaries, threatened against
        or
        affecting the Company or any of its Subsidiaries, or their officers or directors
        in their capacity as such, that could have a Material Adverse Effect. There
        is
        no judgment, decree or order against the Company, or to the knowledge of
        the
        Company or any of its Subsidiaries, against its officers or directors (in
        their
        capacities as such) that could have a Material Adverse Effect.

       

      I.  
Tax
        Status.
        Except
        as set forth in Schedule I, the Company and each of its Subsidiaries has
        made or
        filed all federal, state, local and foreign income and all other tax returns,
        reports and declarations required by any jurisdiction to which it is subject
        (unless and only to the extent that the Company and each of its Subsidiaries
        has
        set aside on its books provisions reasonably adequate for the payment of
        all
        unpaid and unreported taxes) and 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 provisions 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. The
        Company
        has not executed a waiver with respect to the statute of limitations relating
        to
        the assessment or collection of any foreign, federal, state or local tax.
        

       

      
        
          
          

        

        
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      J.  
Disclosure.
        All
        information relating to or concerning the Company or any of its Subsidiaries
        set
        forth in this Agreement is true and correct in all material respects and
        the
        Company has not omitted to state any material fact necessary in order to
        make
        the statements made herein or therein, in light of the circumstances under
        which
        they were made, not misleading. No event or circumstance known to the Company
        has occurred or exists with respect to the Company or any of its Subsidiaries
        or
        its or their business, properties, prospects, operations or financial
        conditions, which, under applicable law, rule or regulation, requires public
        disclosure or announcement by the Company but which has not been so publicly
        announced or disclosed.

       

      K.  
Patents,
        Copyrights, etc.
        (i) The
        Company and each of its Subsidiaries owns or possesses the requisite licenses
        or
        rights to use all patents, patent applications, patent rights, inventions,
        know-how, trade secrets, trademarks, trademark applications, service marks,
        service names, trade names and copyrights ("Intellectual Property") necessary
        to
        enable it to conduct its business as now operated; there is no claim or action
        by any person pertaining to, or proceeding pending, or to the Company's
        knowledge threatened, which challenges the right of the Company or of a
        Subsidiary with respect to any Intellectual Property necessary to enable
        it to
        conduct its business as now operated; to the best of the Company's knowledge,
        the Company's or its Subsidiaries' current and intended products, services
        and
        processes do not infringe on any Intellectual Property or other rights held
        by
        any person; and the Company is unaware of any facts or circumstances which
        might
        give rise to any of the foregoing. The Company and each of its Subsidiaries
        have
        taken reasonable security measures to protect the secrecy, confidentiality
        and
        value of their Intellectual Property.

       

      L.  
Acknowledgment
        Regarding Buyers’ Purchase of Securities.
        The
        Company acknowledges and agrees that the Buyers are acting solely in the
        capacity of arm’s length purchasers with respect to this Agreement and the
        transactions contemplated hereby. The Company further acknowledges that no
        Buyer
        is 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 statement made by any Buyer or any of their respective
        representatives or agents in connection with this Agreement and the transactions
        contemplated hereby is not advice or a recommendation and is merely incidental
        to the Buyers’ purchase of the Securities. The Company further represents to
        each Buyer that the Company’s decision to enter into this Agreement has been
        based solely on the independent evaluation of the Company and its
        representatives. 

       

      M.  
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 in any security
        or
        solicited any offers to buy any security under circumstances that would require
        registration under the Securities Act of the issuance of the Securities to
        the
        Buyers. 

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      N.  
No
        Brokers.
        The
        Company has taken no action which would give rise to any claim by any person
        for
        brokerage commissions, transaction fees or similar payments relating to this
        Agreement or the transactions contemplated hereby.

       

      O.  
Environmental
        Matters.

       

      (i) 
There
        are, to the best of the Company’s knowledge, with respect to the Company or any
        of its Subsidiaries or any predecessor of the Company, no past or present
        violations of Environmental Laws (as defined below), releases of any material
        into the environment, actions, activities, circumstances, conditions, events,
        incidents, or contractual obligations which may give rise to any common law
        environmental liability or any liability under the Comprehensive Environmental
        Response, Compensation and Liability Act of 1980 or similar federal, state,
        local or foreign laws and neither the Company nor any of its Subsidiaries
        has
        received any notice with respect to any of the foregoing, nor is any action
        pending or, to the Company’s knowledge, threatened in connection with any of the
        foregoing. The term “Environmental Laws” means all federal, state, local or
        foreign laws relating to pollution or protection of human health or the
        environment (including, without limitation, ambient air, surface water,
        groundwater, land surface or subsurface strata), including, without limitation,
        laws relating to emissions, discharges, releases or threatened releases of
        chemicals, pollutants contaminants, or toxic or hazardous substances or wastes
        (collectively, “Hazardous Materials”) into the environment, or otherwise
        relating to the manufacture, processing, distribution, use, treatment, storage,
        disposal, transport or handling of Hazardous Materials, as well as all
        authorizations, codes, decrees, demands or demand letters, injunctions,
        judgments, licenses, notices or notice letters, orders, permits, plans or
        regulations issued, entered, promulgated or approved thereunder.

       

      (ii) 
Other
        than those that are or were stored, used or disposed of in compliance with
        applicable law, no Hazardous Materials are contained on or about any real
        property currently owned, leased or used by the Company or any of its
        Subsidiaries, and no Hazardous Materials were released on or about any real
        property previously owned, leased or used by the Company or any of its
        Subsidiaries during the period the property was owned, leased or used by
        the
        Company or any of its Subsidiaries, except in the normal course of the Company’s
        or any of its Subsidiaries’ business. 

       

      (iii) 
To
        the
        best of the Company’s knowledge there are no underground storage tanks on or
        under any real property owned, leased or used by the Company or any of its
        Subsidiaries that are not in compliance with applicable law.

       

      P.  
Title
        to Property.
        The
        Company and its Subsidiaries have good and marketable title in fee simple
        to all
        real property and good and marketable title to all personal property owned
        by
        them which is material to the business of the Company and its Subsidiaries.
        Any
        real property and facilities held under lease by the Company and its
        Subsidiaries are held by them under valid, subsisting and enforceable leases
        with such exceptions as would not have a Material Adverse Effect. 

       

      Q.  
Internal
        Accounting Controls.
        The
        Company and each of its Subsidiaries maintain a system of internal accounting
        controls sufficient, in the judgment of the Company’s board of directors, 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, (iii) access to assets is permitted only in accordance with
        management’s general or specific authorization and (iv) the recorded
        accountability for assets is compared with the existing assets at reasonable
        intervals and appropriate action is taken with respect to any
        differences.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      R.  
Permits;
        Compliance.
        The
        Company and each of its Subsidiaries is in possession of all franchises,
        grants,
        authorizations, licenses, permits, easements, variances, exemptions, consents,
        certificates, approvals and orders necessary to own, lease and operate its
        properties and to carry on its business as it is now being conducted
        (collectively, the "Company
        Permits"),
        and
        there is no action pending or, to the knowledge of the Company, threatened
        regarding suspension or cancellation of any of the Company Permits. Neither
        the
        Company nor any of its Subsidiaries is in conflict with, or in default or
        violation of, any of the Company Permits, except for any such conflicts,
        defaults or violations which, individually or in the aggregate, would not
        reasonably be expected to have a Material Adverse Effect. Since December
        31,
        2005, neither the Company nor any of its Subsidiaries has received any
        notification with respect to possible conflicts, defaults or violations of
        applicable laws, except for notices relating to possible conflicts, defaults
        or
        violations, which conflicts, defaults or violations would not have a Material
        Adverse Effect.

       

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

       

      T.  
OTCBB.
        The
        Company is not in violation of the quotation requirements of the
        Over-the-Counter Bulletin Board (the "OTCBB")
        and
        does not reasonably anticipate that the Common Stock will be removed by the
        OTCBB in the foreseeable future. The Company and its Subsidiaries are unaware
        of
        any facts or circumstances which might give rise to any of the
        foregoing.

       

      U.  
No
        Investment Company.
        The
        Company is not, and upon the issuance and sale of the Securities as contemplated
        by this Agreement will not be an “investment company” required to be registered
        under the Investment Company Act of 1940. 

       

      V.  
Certain
        Registration Matters.
        Assuming the accuracy of the Buyers’ representations and warranties set forth in
        Article II, no registration under the Securities Act is required for the
        offer
        and sale of the Conversion Shares and Warrant Shares by the Company to the
        Buyers under the transaction documents. 

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      W.  
Antitakeover
        Matters.

       

      (i)  
The
        Company does not have 100 or more stockholders of record who have addresses
        in
        the State of Nevada appearing on the stock ledger of the Company.

       

      (ii)  
The
        Company, its stockholders, and its Board of Directors have taken all actions
        required by Sections 78.378-78.3793 (inclusive) and Sections 78.411-78.444
        (inclusive) (collectively, the Takeover Provisions) of the General Corporation
        Law of the State of Nevada in connection with the transactions contemplated
        by
        this Agreement and the other Transaction Documents and no actions need be
        taken
        by any other person or entity for the transactions contemplated by this
        Agreement and the other Transaction Documents to be in compliance with the
        Takeover Provisions.

       

      X.  
Offering.
        Subject
        in part to the truth and accuracy of each Buyer’s representations and warranties
        set forth in Article II, the offer, sale and issuance of the Securities as
        contemplated by this Agreement are exempt from the registration requirements
        of
        the Securities Act and applicable state securities and “blue sky” laws, and
        neither the Company nor any authorized agent acting on its behalf will take
        any
        action hereafter that would cause the loss of such exemption. 

       

      Y.  
Indebtedness.
        Attached hereto as Schedule Y is a true, complete and correct list of all
        outstanding secured and unsecured Indebtedness of the Company or any Subsidiary,
        or for which the Company or any Subsidiary has commitments as of April 27,
        2007.
        The total amount of all Indebtedness (including, for this purpose, amounts
        less
        than $50,000 and including all principal and accrued interest) outstanding
        as of
        the date of this Agreement is $7,321,473, which number has not increased
        in the
        aggregate by more than $100,000 from April 27, 2007 through the date of this
        Agreement. For the purposes of this Agreement, “Indebtedness”
shall
        mean (a) any liabilities for borrowed money or amounts owed in excess of
        $50,000
        (other than trade accounts payable incurred in the ordinary course of business),
        (b) all guaranties, endorsements and other contingent obligations in respect
        of
        Indebtedness of others; and (c) the present value of any lease and other
        similar
        payments in excess of $50,000.

       

      Z.  
Signing
        Authority.
        Bart
        Collins has been appointed as, and currently is serving as the special Executive
        Vice President of the Company designated under Article IV, Section 8 of the
        Company’s Bylaws. As the Executive Vice President, Mr. Collins has the
        authority, and is required, to sign and approve the transactions described
        in
        Article IV.J of the 2006 Purchase Agreement. The covenant described in Article
        IV.J of the 2006 Purchase Agreement remains in full force and effect in
        accordance with its terms and the Company is in compliance with such
        covenant.

       

      IV.

      CERTAIN
        COVENANTS AND ACKNOWLEDGMENTS

       

      A.  
Restrictive
        Legend.
        Each
        Buyer acknowledges and agrees that, upon issuance pursuant to this Agreement,
        the Securities (including any Warrant Shares and Conversion Shares) shall
        have
        endorsed thereon a legend in substantially the following form (and a stop
        transfer order may be placed against transfer of the Securities until such
        legend has been removed):

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      “NEITHER
        THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
        [CONVERTIBLE] HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
        OR THE SECURITIES COMMISSION OF ANY STATE OR FOREIGN COUNTRY IN RELIANCE
        UPON AN
        EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
        (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR
        FOREIGN COUNTRY. THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED OR
        SOLD IN
        THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
        APPLICABLE SECURITIES LAWS UNLESS OFFERED, SOLD OR TRANSFERRED UNDER AN
        AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THOSE
        LAWS.”

       

      At
        the
        written request of any Buyer, the legend set forth above shall be removed
        and
        the Company shall issue a certificate without such legend to the holder of
        any
        Security upon which it is stamped, if, (a) such Security is registered for
        sale under an effective registration statement filed under the Securities
        Act or
        may otherwise be sold under Rule 144 or Regulation S without any
        restriction as to the number of securities as of a particular date that can
        be
        immediately sold, or (b) such holder provides the Company with an opinion
        of counsel, in form, substance and scope customary for opinions of counsel
        in
        comparable transactions, which opinion shall be reasonably acceptable to
        the
        Company’s counsel, to the effect that a public sale or transfer of such security
        may be made without registration under the Securities Act, which opinion
        shall
        be accepted by the Company so that the sale or transfer is effected, or
        (c) such holder provides the Company with reasonable assurances that such
        Security can be sold pursuant to Rule 144 or
        Regulation S.

       

      B.  
Filings.
        The
        Company shall timely make all necessary filings with the Commission, including
        by not limited to a Form D with respect to the Securities as required under
        Regulation D, and “blue sky” filings required to be made by the Company in
        connection with the sale of the Securities to Buyer as required by all
        applicable Laws, and shall provide a copy thereof to Buyer promptly after
        such
        filing.

       

      The
        Company also agrees that it shall, on or prior to the Closing Date, take
        any
        other such action as the Company shall reasonably determine is necessary
        to
        qualify the Securities for sale to Buyers under such “blue sky” laws (or to
        obtain an exemption therefrom), and shall provide evidence of any such action
        so
        taken to Buyers on or prior to the Closing Date; provided that Company shall
        not
        be required to (a) qualify to generally do business in any jurisdiction
        where it would not otherwise be required to qualify but for this subsection
        or
        (b) subject itself to taxation in any such jurisdiction.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      C.  
Reporting
        Status.
        So long
        as Buyers beneficially own any of the Securities, the Company shall file
        all
        reports required to be filed by it with the Commission pursuant to Section
        13 or
        15(d) of the Exchange Act or any reports or filings that are required by
        the
        OTCBB. 

       

      D.  
Use
        of
        Proceeds.
        The
        Company intends in good faith to use all of the cash portion of the purchase
        price that it receives from the sale of the Preferred Shares and Warrants
        (at
        the Closing or from time to time under the Note) to (i) extinguish the
        $5,544,345 of indebtedness identified on Schedule Y (the "Identified
        Indebtedness")
        by no
        later than December 31, 2007, (ii) eliminate all indebtedness (other than
        (x)
        trade accounts payable and accrued operating liabilities incurred in the
        ordinary course of operations, and (y) real estate lease obligations) as
        of
        December 31, 2007, (iii) increase its stockholders equity on its audited
        balance
        sheet as of December 31, 2007 (after the full payment of the Note) to not
        less
        than $5,000,000, and (iv) have no less than approximately $950,000 of cash,
        or
        cash equivalents available as of December 31, 2007. The Company is currently
        considering repaying a portion of the Identified Indebtedness by exchanging
        such
        indebtedness for shares of Common Stock, and nothing herein shall obligate
        the
        Company to use the proceeds of this offering to repay the Identified
        Indebtedness if such indebtedness is repaid through the issuance of shares
        of
        Common Stock. The Company may modify its use of the proceeds received from
        the
        sale of the Preferred Shares and Warrants if such modification (including
        any
        final authorization to repay the Identified Indebtedness through issuance
        of
        shares of Common Stock) is approved by a majority of the Board of Directors,
        which majority shall include at least one of the Reviewing Preferred Directors
        (as such term is defined in the Certificate of Designation). 

       

      E.  
No
        Integration.
        The
        Company shall not make any offers or sales of any security (other than the
        Preferred Shares and the Warrants offered hereby) under circumstances that
        would
        require registration of the Preferred Shares, the Warrants, the Conversion
        Shares or the Warrant Shares under the Securities Act or cause the offering
        of
        the Preferred Shares and the Warrants to be integrated with any other offering
        of securities by the Company for the purpose of any stockholder approval
        provision application to the Company or its securities.

       

      F.  
Securities
        Laws Disclosure; Publicity.
        The
        Company shall not publicly disclose the name of a Buyer, or issue a press
        release or otherwise make a public statement or a filing with the Commission
        or
        any regulatory agency or trading market regarding the transactions contemplated
        by this Agreement or the fact that the Buyer is an investor in the Company
        without the prior consent of such Buyer in each instance (each a “Public
        Statement”), unless such Public Statement is required by applicable law or the
        rules of any securities exchange on which the securities of the Company are
        then
        listed or traded, in which case the Buyer shall have the right to review
        such
        Public Statement at least 96 hours in advance of the proposed release or
        filing
        and the Buyer may not unreasonably withhold or delay its consent to such
        release
        or filing. No Buyer may make a Public Statement without the prior consent
        of the
        Company, such consent not to be unreasonably withheld or delayed. 

       

      G.  
Limitation
        on Conversion/Exercise.
        Leisurecorp hereby agrees that, notwithstanding anything contained in the
        Certificate of Designation and in the Warrant issued to Leisurecorp to the
        contrary, Leisurecorp shall not (i) convert, or attempt to convert, any of
        the
        Pledged Shares or (ii) exercise, or attempt to exercise, any Pledged Warrant.
        For the purposes hereof, the term “Pledged Shares” shall mean those shares of
        Preferred Stock that are at that time still subject to the Security Agreement,
        and the term “Pledged Warrant” shall mean any warrant agreement that is at that
        time still subject to the Security Agreement. For the purposes of clarification,
        shares of Preferred Stock and Warrants that are, from time to time, released
        under the Security Agreement and delivered to Leisurecorp shall no longer
        be
        deemed to be Pledged Shares of Pledged Warrants and may, after their release
        from the Security Agreement, be converted and exercised in accordance with
        their
        terms. 

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      H.  
Additional
        Listings.
        In the
        event that the Note is paid in full in accordance with its terms, the Company
        shall use its best efforts to cause its Common Stock to be listed on (i)
        the
        Nasdaq Global Market or the Nasdaq Capital Market on or before March 31,
        2008,
        and (ii) the Dubai International Financial Exchange by September 30,
        2008.

       

      I.  
Additional
        Executive Officers.
        The
        Company shall use its best efforts to hire a new Chief Operating Officer
        and a
        new Chief Financial Officer (the “New
        Officers”)
        by no
        later than December 31, 2007. The New Officers, and the terms of their
        employment shall be acceptable to, and approved by a majority of the Board
        of
        Directors including, if required by the Certificate of Designation, by at
        least
        one of the Reviewing Preferred Directors (as such term is defined in the
        Certificate of Designation).

       

      V.

      CLOSING
        

       

      Subject
        to the satisfaction or waiver of the closing conditions in Article VI and
        VII
        and the deliveries referenced in Article I.C, the Closing shall take place
        at
        the offices of the Company at 5500 152nd Street, Suite 214, Surrey, B.C.
        V3S 5J9
        Canada, on the date of this Agreement immediately following the execution
        and
        delivery of this Agreement, or at such other times as agreed to by all Buyers
        and the Company. The date on which the Closing occurs is referred to in this
        Agreement as the “Closing
        Date.”

       

      VI.

      CONDITIONS
        TO THE COMPANY’S OBLIGATIONS

       

      Each
        Buyer understands that the Company’s obligation to sell the Preferred Shares and
        issue the Warrants on the Closing Date to such Buyer pursuant to this Agreement
        is conditioned upon:

       

      A.  
Payment
        by each Buyer to Company of the purchase price in the manner specified in
        Article I. B., including the execution and delivery by (i) Leisurecorp of
        the
        Note and (ii) GWSE of the Debt Exchange Agreement. 

       

      B.  
Leisurecorp
        executing and delivering to the Company the Security Agreement.

       

      C.  
The
        representations and warranties of such Buyer contained in this Agreement
        shall
        be true and correct as of the Closing Date as if made on the Closing Date
        (except for representations and warranties which, by their express terms,
        speak
        as of and relate to a specified date, in which case such representations
        and
        warranties shall be true and correct as of such specified date) and the Buyer
        shall have performed, in all material respects, all covenants and agreements
        of
        Buyer required to be performed by it pursuant to this Agreement on or before
        the
        Closing Date.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      D.  
There
        shall not be in effect any law or order, ruling, judgment or writ of any
        court
        or public or governmental authority or self regulatory organization restraining,
        enjoining or otherwise prohibiting any of the transactions contemplated by
        this
        Agreement. 

       

      VII.

      CONDITIONS
        TO BUYERS’ OBLIGATIONS

       

      The
        Company understands that Buyers’ obligation to purchase the Securities on the
        Closing Date pursuant to this Agreement is conditioned upon:

       

      A.  
Issuance
        by the Company of the Preferred Shares and the Warrants (I/N/O Buyers or
        I/N/O
        Buyers’ nominee) in the amounts and denominations set forth in Article
        I.B.

       

      B.  
The
        representations and warranties of the Company contained in this Agreement
        shall
        be true and correct on the Closing Date as if made on the Closing Date (except
        for representations and warranties which, by their express terms, speak as
        of
        and relate to a specified date, in which case such representations and
        warranties shall be true and correct as of such specified date) and the Company
        shall have performed, in all respects, all covenants and agreements of the
        Company required to be performed by it pursuant to this Agreement on or before
        the Closing Date. 

       

      C.  
The
        Chief
        Executive Officer of the Company shall have delivered a certificate to the
        Buyers, dated as of the Closing Date, certifying that all conditions set
        forth
        in this Article VII have been fulfilled. 

       

      D. 
 There
        shall not be in effect any law or order, ruling, judgment or writ of any
        court
        or public or governmental authority or self regulatory organization restraining,
        enjoining or otherwise prohibiting any of the transactions contemplated by
        this
        Agreement.

       

      E.   Receipt
        by Buyers of a legal opinion, in a form reasonably satisfactory to Buyers,
        from
        each of the Company’s corporate counsel and the Company’s Nevada
        counsel.

       

      VIII.

      SURVIVAL;
        INDEMNIFICATION

       

      The
        representations, warranties and covenants made by each of the Company and
        each
        Buyer in this Agreement, the annexes, schedules and exhibits hereto and in
        each
        instrument, agreement and certificate entered into and delivered by them
        pursuant to this Agreement shall survive the Closing and the consummation
        of the
        transactions contemplated hereby. In the event of a breach or violation of
        any
        of such representations, warranties or covenants, the party to whom such
        representations, warranties or covenants have been made shall have all rights
        and remedies for such breach or violation available to it under the provisions
        of this Agreement or otherwise, whether at law or in equity, irrespective
        of any
        investigation made by or on behalf of such party on or prior to the Closing
        Date.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      IX.

      GOVERNING
        LAW; JURISDICTION

       

      This
        Agreement shall be governed by and interpreted in accordance with the laws
        of
        the State of New York. Each party hereby irrevocably submits to the exclusive
        jurisdiction of the state and federal courts sitting in The City of New York,
        Borough of Manhattan, for the adjudication of any dispute hereunder or in
        connection herewith or with any transaction contemplated hereby or discussed
        herein, and hereby irrevocably waives, and agrees not to assert in any suit,
        action or proceeding, any claim that it is not personally subject to the
        jurisdiction of any such court, that such suit, action or proceeding is brought
        in an inconvenient forum or that the venue of such suit, action or proceeding
        is
        improper.

       

      X.

      COUNTERPARTS;
        EXECUTION

       

      This
        Agreement may be executed in two (2) or more counterparts, each of which
        when so
        executed and delivered shall be an original, but both of which counterparts
        shall together constitute one and the same instrument. A facsimile transmission
        of this signed Agreement shall be legal and binding on all parties
        hereto.

       

      XI.

      HEADINGS

       

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

       

      XII.

      SEVERABILITY

       

      This
        Agreement shall be deemed severable, and the invalidity or unenforceability
        of
        any term or provision hereof shall not affect the validity or enforceability
        of
        this Agreement or of any other term or provision hereof. Furthermore, in
        lieu of
        any such invalid or unenforceable term or provision, the parties hereto intend
        that there shall be added as a part of this Agreement a provision as similar
        in
        terms to such invalid or unenforceable provision as may be possible and be
        valid
        and enforceable.

       

      XIII.

      ENTIRE
        AGREEMENT; REMEDIES, AMENDMENTS AND WAIVERS

       

      This
        Agreement, the Warrants, the Note, the Security Agreement, and the Debt Exchange
        Agreement constitute the entire agreement between the parties hereto pertaining
        to the subject matter hereof and supersede all prior agreements, understandings,
        negotiations and discussions, whether oral or written, of such parties. No
        supplement, modification or waiver of this Agreement shall be binding unless
        executed in writing by both parties. No waiver of any of the provisions of
        this
        Agreement shall be deemed or shall constitute a waiver of any other provision
        hereof (whether or not similar), nor shall such waiver constitute a continuing
        waiver unless otherwise expressly provided.

       

      
        
          
          

        

        
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      XIV.

      NOTICES

       

      Except
        as
        may be otherwise provided herein, any notice or other communication or delivery
        required or permitted hereunder shall be in writing and shall be delivered
        personally, or sent by telecopier machine or by a nationally recognized
        overnight courier service, and shall be deemed given when so delivered
        personally, or by telecopier machine or overnight courier service as
        follows:

       

      A.  
if
        to the
        Company, to:

      

        GPS
          Industries, Inc.

        Suite
          214

        5500
          152nd Street

        Surrey,
          British Columbia

        Canada
          V3S 5J9

        Attn:
          Chief Executive Officer

        Telecopier:
          (604) 576-7460 

        

        with
          a
          copy to:

        

        Troy
          & Gould

        1801
          Century Park East, 26th Floor

        Los
          Angeles, California 90067

        ATTN:
          David L. Ficksman, Esq.

        Telecopier:
          (310) 789-1490

      

       

      B.  
If
        to a
        Buyer, to the address set forth on the Buyer’s signature page.

       

      The
        Company or any Buyer may change the foregoing address by notice given pursuant
        to this Article XIV.

       

      XV.

      ASSIGNMENT

       

      This
        Agreement shall not be assignable by either of the parties hereto without
        the
        prior written consent of the other party, and any attempted assignment contrary
        to the provisions hereby shall be null and void; provided, however, that
        any
        Buyer may assign its rights and obligations hereunder, in whole or in part,
        to
        any affiliate of such Buyer.

       

      XVI.

      REMEDIES
        CUMULATIVE

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      In
        the
        event that the Company fails to observe or perform any covenant or agreement
        to
        be observed or performed under this Agreement, any Buyer may proceed to protect
        and enforce its rights by suit in equity or action at law, whether for specific
        performance of any term contained in this Agreement or for an injunction
        against
        the breach of any such term or in aid of the exercise of any power granted
        in
        this Agreement or to enforce any other legal or equitable right, or to take
        any
        one or more of such actions, without being required to post a bond. None
        of the
        rights, powers or remedies conferred under this Agreement shall be mutually
        exclusive, and each such right, power or remedy shall be cumulative and in
        addition to any other right, power or remedy, whether conferred by this
        Agreement or now or hereafter available at law, in equity, by statute or
        otherwise.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the parties hereto have duly caused this Agreement to be
        executed and delivered on the date first above written.

       

       

      
        	 	 	 
	 	“COMPANY”
	 	 	 
	 	
                GPS
                  Industries, Inc., 

                a
                  Nevada corporation

              
	 	 	 
	 	By:  	 
	 	
                
Name:
	 	Title:

      

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK

      BUYER
        SIGNATURE PAGES FOLLOW]

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 
	 	“BUYER”
	 	 	 
	 	LEISURECORP LLC
	 	 	 
	 	By:  	 
	 	
                
Name:

	 	Title:

      

       

      Investment
        Amount: $10,000,000

      Number
        of
        Preferred Shares: 1,000,000

      Number
        of
        Warrant Shares: 40,983,607

      

      Address
        for Notice:

      David
        Spencer 

      Chief
        Executive Officer 

      Istithmar
        Leisure 

      P.O.
        Box
        17000, Dubai, UAE 

      Telephone:
        +9714-3687630 

      Telecopy:
        +9714-3687654

      E-mail: David.Spencer@istithmar.ae

      

      [SIGNATURE
        PAGE TO SECURITIES PURCHASE AGREEMENT]

      

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

         

      

      
        	
              	 	 
	 	“BUYER”
	 	 	 
	 	GREAT WHITE SHARK ENTERPRISES,
                INC.
	 	 	 
	 	By:  	 
	 	
                
Name:

	 	Title:

      

       

      Investment
        Amount: $2,500,000 cash

      Number
        of
        Preferred Shares: 250,000

      Number
        of
        Warrant Shares: 10,245,902

      

      Address
        for Notice:

      Great
        White Shark Enterprises, Inc.

      501
        North
        A1A, Jupiter, FL 33477

      Attn:
        Bart Collins

      Telephone:
        (561) 743-8818

      Telecopy:
        (561) 743-8831

      E-mail:
        Bart.Collins@gwse.com

      

      [SIGNATURE
        PAGE TO SECURITIES PURCHASE AGREEMENT]

      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      

      DISCLOSURE
        SCHEDULES

       

      These
        disclosure schedules (these “Schedules”) are furnished by GPS Industries, Inc.,
        a Nevada corporation (the “Company”), pursuant to the Securities Purchase
        Agreement dated as of May 8, 2007 (the “Purchase Agreement”), by and among the
        Company and the Buyers identified on the signatures pages thereto.

       

      Nothing
        in the Schedules constitutes an admission of any liability or obligation
        of the
        Company to any third party, nor an admission to any third party against the
        Company’s interests. Unless otherwise stated, all statements made herein are
        made as of the date of execution of the Purchase Agreement. The Schedules
        are
        qualified in their entirety by reference to specific provisions of the Purchase
        Agreement. The disclosures in these Schedules are deemed disclosures against
        the
        representations and warranties in the section of the Purchase Agreement to
        which
        they expressly relate and to no other representation or warranty in the Purchase
        Agreement.

       

      The
        representations and warranties made by the Company in the Purchase Agreement
        are
        qualified by, and subject to the exceptions noted in, the information set
        forth
        in these Schedules. The inclusion or disclosure of any item or information
        in
        the Schedules shall not be construed as an admission that such item or
        information is material to the Company, and any inclusion in the Schedules
        shall
        expressly not be deemed to constitute an admission, or otherwise imply, that
        any
        such item or information is material or creates measures for materiality
        for the
        purposes of the Purchase Agreement.

       

      Headings
        have been inserted on the sections of the Schedules for convenience of reference
        only and shall to no extent have the effect of amending or changing the express
        description of the sections as set forth in the Purchase Agreement. Capitalized
        terms used herein but not otherwise defined shall have the meanings set forth
        in
        the Purchase Agreement.

       

      Schedule
        C    Capitalization

       

      (i) 
Warrants
        to purchase 103,954,945 shares of Common Stock are currently issued and
        outstanding.

       

      The
        Company has entered into an arrangement with GWSE (the “GWSE Purchase Order
        Facility”) for purchase order inventory financing whereby GWSE advances funds on
        signed purchase orders, secured by the contract inventory and receivable.
        These
        advances bear interest at 18% per annum. In addition, as additional
        consideration for the advances, the Company has agreed to issue to GWSE shares
        of Common Stock at the rate of 100,000 shares per $250,000 advanced, adjusted
        proportionately for the actual contract advance. As of March 30, 2007, the
        Company was committed to issue 659,034 shares under this arrangement, although
        the actual issuances have not taken place and will not take place until the
        repayment of the advances. 

       

      On
        November 5, 2006 the Company was notified that its obligation to pay $2,000
        of
        fees for services rendered to an advisor involved in the recent UK patent
        litigation has become due and owing. Accordingly, the Company is obligated
        to
        issue shares for the $2,000 obligation, by issuing 32,258 shares at a price
        of
        $0.062 per share. 

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      (ii)
         
        The
        following warrants and options will be outstanding immediately following
        the
        Closing:

       

      

      

        
          	
                  Outstanding
                    Warrants

                	 	
                  Expiry
                    Date

                	 	
                  Exercise

                  Price

                	 	
                  Number
                    of Shares

                	 
	 	 	 	 	 	 	 	 
	
                  Convertible
                    Preferred Series A

                	 	 	 	 	 	 	 
	
                  -
                    Warrant conversion, 3yr term

                	 	 	
                  Expires
                    Aug 3 2007

                	 	
                  $

                	
                  0.167

                	 	 	
                  880,281
                    

                	 
	
                  -
                    Warrant conversion 3yr term

                	 	 	
                  Expires
                    Oct 27, 2007

                	 	
                  $

                	
                  0.124

                	 	 	
                  592,978
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  Other
                    Warrants

                	 	 	 	 	 	 	 	 	 	 
	
                  Cameron
                    L. Truesdell Warrants For $200,000 Common Shares

                	 	 	 	 	 	 
	
                  2,857,143
                    common shs x .25%

                	 	 	
                  Expires
                    Aug 24, 2007

                	 	
                  $

                	
                  0.10

                	 	 	
                  714,285
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  Shaar
                    Fund 

                	 	 	
                  Expires
                    Oct 29, 2007

                	 	
                  $

                	
                  0.32

                	 	 	
                  200,000
                    

                	 
	
                  Hansen
                    Inc.

                	 	 	
                  Expires
                    Jun/08

                	 	
                  $

                	
                  0.05

                	 	 	
                  1,000,000
                    

                	 
	
                  Hansen
                    Inc. - Dec. 27, 2004 LOC renewal

                	 	 	
                  Expires
                    Dec/09

                	 	
                  $

                	
                  0.05

                	 	 	
                  500,000
                    

                	 
	
                  Hansen
                    Inc. - March 14, 2005 LOC renewal

                	 	 	
                  Expires
                    Mar/08

                	 	
                  $

                	
                  0.10

                	 	 	
                  1,000,000
                    

                	 
	
                  Hansen
                    Inc. - October 2005 LOC renewal

                	 	 	
                  Expires
                    Sep/08

                	 	
                  $

                	
                  0.10

                	 	 	
                  1,000,000
                    

                	 
	
                  Windsor
                    Capital Finance

                	 	 	
                  Expires
                    Mar/09

                	 	
                  $

                	
                  0.06

                	 	 	
                  250,000

                	 
	
                  Windsor
                    Capital Finance

                	 	 	
                  Expires
                    Mar/09

                	 	
                  $

                	
                  0.07

                	 	 	
                  250,000

                	 
	
                  Windsor
                    Capital Finance

                	 	 	
                  Expires
                    Mar/09

                	 	
                  $

                	
                  0.09

                	 	 	
                  500,000

                	 
	
                  Doug
                    Wood

                	 	 	
                  Expires
                    March 23/09

                	 	
                  $

                	
                  0.15

                	 	 	
                  666,667

                	 
	
                  Norton
                    Lane Advisors

                	 	 	
                  Expires
                    May 3, 2008

                	 	
                  $

                	
                  0.20

                	 	 	
                  2,250,000

                	 
	
                  Norton
                    Lane Advisors 

                	 	 	
                  Expires
                    May 3, 2008

                	 	
                  $

                	
                  0.30

                	 	 	
                  2,350,000

                	 
	
                  JMS
                    Capital Investors With Warrants

                	 	 	
                   

                	 	 	 	 	 	 	 
	
                  WWG
                    Trust #13

                	 	 	
                  Expires
                    Dec/07

                	 	
                  $

                	
                  0.15

                	 	 	
                  500,000
                    

                	 
	
                  Great
                    White Shark Enterprises Loan For $3,000,000

                	 	 	 	 	 	 
	
                  Warrants
                    Owing Per Agmt, 3 Yr Term

                	 	 	
                  Expires
                    Dec/07

                	 	
                  $

                	
                  0.15

                	 	 	
                  2,000,000
                    

                	 
	
                  3
                    Year Warrants issued to Agent Demetrios Tsouvelekakis

                	 	 	
                  Expires
                    Jun/08

                	 	
                  $

                	
                  0.25

                	 	 	
                  2,187,500
                    

                	 

        

         

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

         

        
          	
                  3
                    Year Warrants issued to Agent Blue Capital Inc.

                	 	 	
                  Expires
                    Jun/08

                	 	
                  $

                	
                  0.18

                	 	 	
                  1,640,625
                    

                	 
	
                  3
                    Year Warrants issued to Agent Blue Capital Inc.

                	 	 	
                  Expires
                    Jun/08

                	 	
                  $

                	
                  0.12

                	 	 	
                  928,571
                    

                	 
	
                  3
                    Year Warrants issued to Lionheart Associates

                	 	 	
                  Expires
                    Sep/08

                	 	
                  $

                	
                  0.25

                	 	 	
                  324,000
                    

                	 
	
                  3
                    Year Warrants issued to Ocean Avenue Advisors

                	 	 	
                  Expires
                    Sep/08

                	 	
                  $

                	
                  0.25

                	 	 	
                  216,000
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  NIR
                    Warrants @ $0.25 (Subject to Anti-dilution
                    provisions)

                	 	 	 	 	 	 
	
                  -
                    1st Tranche

                	 	 	
                  Expires
                    Sep 20, 2010

                	 	
                  $

                	
                  0.25

                	 	 	
                  3,000,000

                	 
	
                  -
                    2nd Tranche

                	 	 	
                  Expires
                    Oct 28, 2010

                	 	
                  $

                	
                  0.25

                	 	 	
                  1,500,000

                	 
	
                  -
                    3rd Tranche

                	 	 	
                  Expires
                    Dec 9, 2010

                	 	
                  $

                	
                  0.25

                	 	 	
                  1,500,000

                	 
	 	 	 	
                   

                	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  Granted
                    on payout of Convertible Notes

                	 	 	
                  Expires
                    Nov 6, 2011

                	 	
                  $

                	
                  0.122

                	 	 	
                  3,000,000

                	 
	 	 	 	
                   

                	 	 	 	 	 	 	 
	
                  Warrants
                    Issued to Buyers/Directors 

                	 	 	
                   

                	 	 	 	 	 	 	 
	
                  Leisurecorp
                    LLC

                	 	 	
                  Expires
                    Dec 29, 2011

                	 	
                  $

                	
                  0.122

                	 	 	
                  40,983,607

                	 
	
                  Great
                    White Shark Enterprises

                	 	 	
                  Expires
                    Dec 29, 2011

                	 	
                  $

                	
                  0.122

                	 	 	
                  18,901,579

                	 
	
                  Doug
                    Wood

                	 	 	
                  Expires
                    Dec 29, 2011

                	 	
                  $

                	
                  0.122

                	 	 	
                  12,295,082

                	 
	
                  Bob
                    Silzer Sr.

                	 	 	
                  Expires
                    Dec 29, 2011

                	 	
                  $

                	
                  0.122

                	 	 	
                  3,073,770

                	 
	
                  Great
                    White Shark Enterprises, Inc.

                	 	 	
                  Expires
                    May 8, 2012

                	 	
                  $

                	
                  0.122

                	 	 	
                  10,245,902

                	 
	
                  Leisurecorp
                    LLC

                	 	 	
                  Expires
                    May 8, 2012

                	 	
                  $

                	
                  0.122

                	 	 	
                  40,983,607

                	 
	 	 	 	
                   

                	 	 	 	 	 	 	 
	
                  Total
                    Outstanding Warrants

                	 	 	
                   

                	 	 	 	 	 	
                  155,434,453

                	 
	 	 	 	
                   

                	 	 	 	 	 	 	 
	
                  Stock
                    Options Outstanding

                	 	 	
                   

                	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  Issued
                    Oct. 10, 2003

                	 	 	
                  580,000

                	 	
                  $

                	
                  0.100

                	 	 	 	 
	
                  Issued
                    Dec 21, 2005

                	 	 	
                  6,010,000

                	 	
                  $

                	
                  0.05
                    - $0.08

                	 	 	 	 
	
                  Issued
                    September 2006

                	 	 	
                  2,700,000

                	 	
                  $

                	
                  0.05
                    - $0.07

                	 	 	 	 
	
                  Issued
                    December 2006

                	 	 	
                  15,000,000

                	 	
                  $

                	
                  0.074

                	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  Total
                    Outstanding Options

                	 	 	 	 	 	 	 	 	
                  24,290,000

                	 

        

      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

         

      

      Schedule
        H   Litigation

       

      On
        February 5, 2007 David Stratton filed a lawsuit against the Company in the
        Supreme Court of British Columbia, Vancouver, Canada. Mr. Stratton entered
        into
        a written employment agreement with the Company on June 12, 2006 pursuant
        to
        which Mr. Stratton was employed as our Vice President, Sales. The employment
        agreement had a three-year term, renewable each year. Under the employment,
        Mr.
        Stratton was entitled to an annual base salary of CDN $150,000, options to
        purchase up to 1,500,000 shares of common stock at an exercise price of $0.05
        per share, a signing bonus of 300,000 shares of common stock, certain bonuses
        (including bonuses based on gross sales), and sales commissions. On November
        8,
        2006, Mr. Stratton’s employment was terminated. Mr. Stratton has set forth his
        claims in the Statement of Claims, which claims principally consist of the
        following: (i) a judgment equal to the amount of his base salary that he
        would
        have earned, (ii) the option to purchase up to 1,500,000 shares of common
        stock
        at an exercise price of $0.05 per share, (iii) the 300,000 signing bonus
        shares,
        (iv) special damages and punitive damages, and (v) legal fees. The Company
        has
        filed a statement of defense denying the allegations and claims in the lawsuit.
        

       

      Schedule
        I   Tax
        Status

       

      The
        Company has not filed tax returns in Canada. The Company has accumulated
        significant losses in Canada and does not believe there is any amount payable
        to
        the Canadian tax authorities.

      

      
        
          
          

        

        
          25

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