Document:

Unassociated Document

     

    Exhibit
      10.03 - Resignation of Bray

    

    TERESA
      J. BRAY

    PO
      BOX 1733

    LAKELAND,
      FL 33802

     

    June
      19,
      2007

     

    Philip
      M.
      Cohen, Chairman

    Medical
      Media Television, Inc.

    8406
      Benjamin Road, Suite C

    Tampa,
      FL
      33634

    

    Re: Resignation

    

    Dear
      Phil:

    

    Please
      accept this letter as my resignation as Vice President Administration/Compliance
      and Corporate Secretary of Medical Media Television, Inc. 

    

    This
      resignation is effective immediately and is not the result of a disagreement
      with the Company on any matter relating to the Company’s operations, policies,
      or practices. 

    

    Sincerely,

    

    

    /s/
      Teresa J. Bray

    

    Teresa
      J.
      BrayUnassociated Document

    Exhibit
      4.5

    

    FLORIDA
      GAMING CORPORATION

    

    STOCK
      SUBSCRIPTION AGREEMENT

    

    

    Florida
      Gaming Corporation

    1750
      Kings Highway

    Fort
      Pierce, Florida 34945-3099

    

    Attn:
      Mr.
      W. Bennett Collett

    

    Gentlemen:

    

    1. Application.
      Prides
      Capital Fund I, L.P., a Delaware limited partnership (“Prides”) and Florida
      Gaming Corporation, a Delaware corporation (the "Company"), intending to be
      legally bound, hereby agree that on the date hereof, subject to the terms and
      conditions hereof, Prides shall purchase from the Company and the Company shall
      issue 5,000 shares (the "Preferred Shares") of Series AA 7% Cumulative
      Convertible Preferred Stock (the "Series AA Preferred Stock") of the Company.
      The purchase price of each Preferred Share is $1,000.00. 

    

    2. Closing.

    

    (a) The
      closing of the sale of the Preferred Shares (the “Closing”) shall take place on
      the date hereof at the offices of Frost Brown Todd, LLC, or at such other time
      or place as the Company and Prides may mutually agree.

    

    (b) Prior
      to
      the Closing, the Company shall have filed with the Secretary of State of the
      State of Delaware the Certificate of Designation to be effective in accordance
      with applicable law at or prior to Closing.

    

    (c) At
      the
      Closing, subject to the terms and conditions hereof, (i) the Company will
      deliver to Prides stock certificates representing the Preferred Shares to be
      purchased at such Closing, free and clear of any encumbrances, (ii) Prides
      will
      make payment to the Company of five million dollars ($5,000,000) by wire
      transfer of immediately available funds to an account that the Company has
      designated prior to the date hereof and (iii) the Company and Prides will
      execute and deliver the Stockholders Agreement.

    

    3. Representations
      and Warranties of the Subscriber.
      Prides
      represents and warrants to the Company as follows:

    

    (a) Prides,
      in making the decision to purchase the Preferred Shares subscribed for, has
      relied upon independent investigations made by it and its representatives,
      if
      any. The only agreements between the Company and Prides with respect to the
      investment in the Preferred Shares are: (i) the form of Certificate of
      Designations attached hereto as Exhibit
      A;
      (ii)
      the form of Stockholders Agreement attached hereto as Exhibit
      B
      (the
“Stockholders Agreement”); (iii) the form of Warrant issued to Prides attached
      hereto as Exhibit
      C
      and (iv)
      this Subscription Agreement. No oral representations have been made or furnished
      to Prides by the Company or any representative of the Company. Prides and/or
      its
      advisors have had a reasonable opportunity to ask questions of and receive
      answers from the Company concerning the Preferred Shares.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    (b) Prides
      has sufficient access to all information, including all public filings with
      the
      Securities and Exchange Commission and all publicly available financial
      statements and other financial information of the Company, and has been afforded
      with an opportunity to ask questions of and receive answers from an officer
      of
      the Company concerning information to which a reasonable investor would attach
      significance in making investment decisions, so that as a reasonable investor
      Prides has been able to make Prides’ decision to purchase the Preferred Shares.
      Prides has relied on, or consulted with, Prides’ advisors, including legal
      counsel, with respect to Prides’ decision to purchase the Preferred
      Shares.

    

    (c) Prides
      is
      not subscribing for the Preferred Shares as a result of or subsequent to any
      advertisement, article, notice or other communication published in any
      newspaper, magazine or similar media or broadcast over television or radio,
      or
      presented at any seminar or meeting, or any solicitation of a subscription
      by a
      person not previously known to Prides in connection with investments in
      securities generally.

    

    (d) Prides
      is
      able to bear the substantial economic risks of an investment in the Preferred
      Shares and the shares of Common Stock issuable upon conversion of the Preferred
      Shares (the "Conversion Shares") for an indefinite period of time, has no need
      for liquidity in such investment, has made commitments to investments that
      are
      not readily marketable which are reasonable in relation to Prides’ net worth
      and, at the present time, could afford a complete loss of such
      investment.

    

    (e) Prides
      has such knowledge and experience in financial, tax and business matters so
      as
      to enable it to utilize the information available to Prides in connection with
      the offering of the Preferred Shares to evaluate the merits and risks of an
      investment in such equity and to make an informed investment decision with
      respect thereto.

    

    (f) Prides
      acknowledges that the purchase of the Preferred Shares involves a high degree
      of
      risk and further acknowledges that it can bear the economic risk of the purchase
      of the Preferred Shares, including the total loss of its investment. Prides
      is
      not relying on the Company with respect to the tax and other economic
      considerations of an investment in the Preferred Shares, and Prides has relied
      on the advice of, or has consulted with, only Prides’ own advisor(s) with
      respect thereto.

    

    (g) Prides
      has full right and power to perform pursuant to this Subscription Agreement
      and
      make an investment in the Company and is authorized and otherwise duly qualified
      to purchase and hold the Preferred Shares and to enter into this Subscription
      Agreement.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    (h) Prides
      will not sell or otherwise transfer the Preferred Shares or the Conversion
      Shares without registration under the Securities Act of 1933, as amended (the
      "Securities Act") or an exemption therefrom and fully understands and agrees
      that Prides may bear the economic risk of Prides’ purchase for an indefinite
      period of time because, among other reasons, the Preferred Shares and the
      Conversion Shares have not been registered under the Securities Act or under
      the
      securities laws of certain states and, therefore, cannot be resold, pledged,
      assigned or otherwise disposed of unless the securities are subsequently
      registered under the Securities Act and under the applicable securities laws
      of
      such states or unless an exemption from such registration is available in the
      opinion of counsel for the holder, which counsel and opinion are reasonably
      satisfactory to counsel for the Company. Prides is purchasing the Preferred
      Shares for Prides’ own account, for investment and not with a view to resale or
      distribution except in compliance with the Securities Act. Prides is aware
      that
      an exemption from the registration requirements of the Securities Act pursuant
      to Rule 144 promulgated thereunder is not presently available; that, except
      as
      contemplated by section 6 hereof, the Company has no obligation to make
      available an exemption from the registration requirements pursuant to such
      Rule
      144 or any successor rule for resale of the Shares and the Conversion Shares,
      and that even if an exemption under Rule 144 were available, Rule 144 permits
      only routine sales of securities in limited amounts in accordance with the
      terms
      and conditions of such Rule 144.

    

    (i) Prides
      agrees to the placement of a legend on any certificate or other document
      evidencing the Preferred Shares or the Conversion Shares stating that they
      have
      not been registered under the Securities Act (and a stop transfer order may
      be
      placed with respect thereto).

    

    (j) Prides
      understands and acknowledges that Florida law prohibits any person or entity
      from acquiring a 5% or greater equity interest in a pari-mutuel -operator and
      exercising control with respect to those shares until such person has received
      the approval of the Florida Department of Business and Professional Regulation,
      Division of Pari-Mutuel Wagering, and therefore that the acquisition of 5%
      or
      more of the Company's Common Stock upon the conversion of the Preferred Shares
      could require such approval. In the event such approval is required upon Pride's
      conversion of Preferred Shares, the Company will use its reasonable best efforts
      to assist Prides in obtaining such consent.

    

    (k) Prides
      understands that the Preferred Shares are being offered and sold to him or
      it in
      reliance on specific exemptions from the registration requirements of federal
      and state securities laws and that the Company is relying upon the truth and
      accuracy of the representations, warranties, agreements, acknowledgments and
      understandings of Prides set forth herein in order to determine the
      applicability of such exemptions and the suitability of Prides to acquire the
      Preferred Shares. The representations, warranties and agreements of Prides
      contained herein are true and correct as of the date hereof and may be relied
      upon by the Company. The representations, warranties and agreements of Prides
      contained herein shall survive the execution and delivery of this Subscription
      Agreement and the purchase of the Preferred Shares.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    (l) Prides
      shall comply with all applicable securities laws with respect to the sale of
      the
      Preferred Shares and the Conversion Shares, including but not limited to the
      filing of all reports required to be filed by Prides in connection therewith
      with the U.S. Securities and Exchange Commission (the “SEC”) or any other
      applicable regulatory authority.

    

    4. Accredited
      Investor Status.
      Prides
      further represents and warrants that it is an “accredited investor” within the
      meaning of Regulation D, Rule 501(a), promulgated by the SEC.

    

    5. Representations
      and Warranties of the Company.
      The
      Company represents and warrants to, and agrees with, Prides as
      follows:

    

    (a) Each
      of
      the Company and its subsidiaries is a corporation or other entity duly
      organized, validly existing and in good standing under the laws of the State
      of
      Delaware or its jurisdiction of incorporation or formation and has all
      requisite, corporate power and authority to carry on its business as now
      conducted and as proposed to be conducted. The Company and each of its
      subsidiaries is duly qualified to transact business and is in good standing
      in
      the State of Florida and in each other jurisdiction in which the failure to
      so
      qualify would be reasonably likely to have a Material Adverse Effect on the
      Company. None of the Company nor any of its subsidiaries is the subject of
      any
      pending or, to the knowledge of the Company, threatened material investigation
      or administrative or legal proceeding by the Internal Revenue Service, the
      taxing authorities of any state or local jurisdiction or the SEC which have
      not
      been disclosed in the SEC Reports (as defined below).

    

    (b) All
      corporate action on the part of the Company, its officers, directors and
      stockholders necessary for the authorization, execution and delivery of this
      Subscription Agreement, the Certificate of Designations and the Stockholders
      Agreement (the “Transaction Documents”), the performance of all obligations of
      the Company hereunder and thereunder and the authorization, issuance (or
      reservation for issuance) and delivery of the Preferred Shares and the
      Conversion Shares have been taken, and this Subscription Agreement and each
      of
      the other Transaction Documents constitutes a valid and legally binding
      obligation of the Company, enforceable in accordance with its terms, except
      to
      the extent adjustments to the conversion price of the shares of Series AA
      Preferred Stock and other shares of the Company's convertible preferred stock
      would result in the issuance of a number of shares of Common Stock in excess
      of
      the Company's authorized number of shares of Common Stock.

    

    (c) The
      Preferred Shares, when issued, sold and delivered in accordance with the terms
      hereof for the consideration expressed herein, will be validly issued, fully
      paid and nonassessable and, subject to the accuracy of the representations
      of
      Prides in this Subscription Agreement, will be issued in compliance with all
      applicable United States federal and state securities laws. The Conversion
      Shares if issued in accordance with the terms of the Certificate of
      Designations, Voting Powers, Preferences, Limitations, Restrictions, and
      Relative Rights of Series AA 7% Cumulative Convertible Preferred Stock (the
      "Certificate of Designation") shall be duly and validly issued and outstanding,
      fully paid and nonassessable, and subject to the accuracy of the representations
      and warranties of Prides and any transferee of the Preferred Shares, will be
      in
      compliance with all applicable United States federal and state securities laws.
      The Preferred Shares and Conversion Shares, when and if issued, sold and
      delivered pursuant to this Agreement or the Certificate of Designation (as
      applicable), will be delivered free and clear of all encumbrances, excluding
      encumbrances imposed by the Stockholders Agreement.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    

    (d) The
      execution and delivery of this Subscription Agreement and the other Transaction
      Documents and the consummation of the transactions contemplated hereby and
      thereby, including the issuance of the Preferred Shares and the Conversion
      Shares, do not and will not (i) conflict with or result in a breach by the
      Company of any of the terms or provisions of, or constitute a default under,
      the
      Certificate of Incorporation or By-Laws of the Company, or any indenture,
      mortgage, deed of trust or other material instrument to which the Company is
      a
      party or by which it or any of its properties or assets are bound, or any
      applicable law, permit or decree, judgment or order of any court, federal or
      state regulatory body, administrative, agency or other governmental body having
      jurisdiction over the Company or any of its properties or assets or (ii) require
      any declaration, filing or registration with, or notice to, or authorization,
      consent, approval, order or permit of, any governmental or regulatory body
      or
      authority or any other Person, except to the extent that the failure to obtain
      any such authorization, consent, approval or order or to make any such
      registration, declaration, filing or notice, would not have a Material Adverse
      Effect.

    

    (e) As
      of the
      date hereof, the conduct of the business of the Company and its subsidiaries
      complies in all material respects with all statutes, laws, regulations,
      ordinances, rules, judgments, orders or decrees applicable thereto. None of
      the
      Company nor any of its subsidiaries has received notice of any alleged violation
      of any statute, law, regulation, ordinance, rule, judgment, order or decree
      from
      any governmental authority. The Company and its subsidiaries hold all licenses,
      permits, orders, consents, approvals, registrations, authorizations,
      qualifications and filings permits (collectively, “Permits”) necessary for the
      lawful conduct of their respective businesses as they are presently being
      conducted, all such Permits are in full force and effect, the Company and its
      subsidiaries are in compliance with the terms of such Permits, there are no
      pending or, to the knowledge of the Company, threatened, modifications,
      amendments, cancellations, suspensions, limitations, nonrenewals or revocations
      of any Permit and there has occurred no event which (whether with notice or
      lapse of time or both) could reasonably be expected to result in or constitute
      the basis for such a modification, amendment, cancellation, suspension,
      limitation, nonrenewal or revocation thereof. The Company shall comply with
      all
      applicable securities laws with respect to the sale of the Preferred Shares
      and
      the Conversion Shares, including but not limited to the filing of all reports
      required to be filed in connection therewith with the SEC or any other
      applicable regulatory authority.

    

    (f) Except
      as
      disclosed in reasonable detail in the Company's public securities filings filed
      prior to the date hereof with the SEC (the “SEC Reports”), there is no action,
      suit or proceeding before or by any court or governmental agency or body,
      domestic or foreign, now pending or, to the knowledge of the Company,
      threatened, against or affecting the Company or its subsidiaries, or any of
      their properties, which, individually or in the aggregate could reasonably
      be
      expected to result in any material adverse change in the business, financial
      condition or results of operations of the Company and its subsidiaries, taken
      as
      a whole, or which could reasonably be expected to materially and adversely
      affect the properties or assets of the Company and its subsidiaries, taken
      as a
      whole (a “Material Adverse Effect”).

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    (g) For
      so
      long as any shares of Preferred Shares or Conversion Shares held by Prides
      remain outstanding, the Company will reserve from its authorized but unissued
      shares of Common Stock a sufficient number of shares of common stock to permit
      the issuance of all of the Conversion Shares; 

    
       

      (h) As
        of
        March 31, 2007, the authorized capital of the Company consisted of (i) 7,500,00
        shares of Common Stock, par value $.20 per share, (ii) 1,200,000 Series A
        Convertible Preferred Stock (“Series A Preferred Stock”), par value $.10 per
        share, (iii) 50 shares of Series B Preferred Stock, par value $.10 per share
        ("Series B Preferred Stock"), (iv) 300 shares of Series E Preferred Stock,
        par
        value $.10 per share ("Series E Preferred Stock") and (v) 2,500 shares of
        Series
        F Preferred Stock, par value $.10 per share ("Series F Preferred Stock").
        Of
        such authorized capital stock, as of March 31, 2007, (i) 3,339,178 shares
        of Common Stock were issued and outstanding, all of which were validly issued
        and fully paid, nonassessable and free of preemptive rights, (ii) 28,235
        shares of Series A Preferred Stock were issued and outstanding, (iii) 45
        shares
        of Series B Preferred Stock were issued and outstanding, (iv) 200 shares
        of
        Series E Preferred Stock were issued and outstanding, (v) 2,000 shares of
        Series
        F Preferred Stock were issued and outstanding, (vi) a total of 315,990 shares
        of
        Common Stock were reserved for issuance to pursuant to conversion of Series
        A,
        Series B, Series E, and Series F Preferred Stock and (vii) 1,488,625 shares
        of
        Common Stock were reserved for issuance pursuant to the exercise of outstanding
        options to purchase Common Stock. The Company has not issued any capital
        stock
        or granted options to purchase capital stock since March 31, 2007 other than
        pursuant to the grant of equity compensation under the Company’s Benefit Plans
        and the exercise of outstanding stock options granted thereunder.

       

    

    (i) Except
      with respect to the Preferred Shares, warrants to purchase a total of 25,000
      shares of Common Stock issued pursuant to the transactions the subject of this
      Agreement, or as set forth in subsection 5(h) above, there are no outstanding
      options, warrants, subscriptions, calls, convertible securities or other rights,
      agreements, arrangements or commitments (contingent or otherwise) (including
      any
      right of conversion or exchange under any outstanding security, instrument
      or
      other agreement) obligating the Company or any of its direct or indirect
      subsidiaries to issue, deliver or sell, or cause to be issued, delivered or
      sold, any shares or obligating them to grant, extend or enter into any such
      agreement or commitment. There are no outstanding contractual obligations of
      the
      Company or any of its direct or indirect subsidiaries to repurchase, redeem
      or
      otherwise acquire any shares or make any investment (in the form of a loan,
      capital contribution or otherwise) in any other person or entity other than
      a
      wholly-owned subsidiary of the Company.

     

    (j) The
      Company has filed with the SEC all forms, reports, schedules, proxy statements
      (in each case including all exhibits and schedules thereto and documents
      incorporated by reference therein and including all registration statements
      and
      prospectuses filed with the SEC) required to be filed by the Company with the
      SEC since January 1, 2004. As of its date of filing, each SEC Report complied
      in
      all material respects with the requirements of the Securities Exchange Act
      of
      1934, as amended (the “Exchange Act”), or the Securities Act of 1933, as amended
      (the “Securities Act”), and the rules and regulations promulgated thereunder and
      none of such SEC Reports (including any and all financial statements included
      therein) contained when filed (except to the extent revised or superseded by
      a
      subsequent filing with the SEC that is publicly available prior to the date
      hereof) any untrue statement of a material fact or omitted or omits to state
      a
      material fact required to be stated therein or necessary to make the statements
      made therein, in light of the circumstances under which they were made, not
      misleading.
      Each of
      the consolidated financial statements (including the notes thereto) included
      in
      the SEC Reports complied (i) as to form required by published rules and
      regulations of the SEC related thereto as of its date of filing with the SEC,
      (ii) in all material respects with applicable accounting requirements and the
      published rules and regulations of the SEC with respect thereto, (iii) has
      been
      prepared in accordance with U.S. generally accepted accounting principles
      applied on a consistent basis during the periods involved (except as may be
      indicated in the notes thereto or otherwise permitted by the SEC on Form 10-Q
      or
      any successor form under the Exchange Act) and (iv) presents fairly in all
      material respects the consolidated financial position of Company and its
      consolidated subsidiaries as of the dates thereof and the consolidated results
      of their operations and cash flows for the periods then ended, subject (in
      the
      case of unaudited financial statements) to normal year-end adjustments and
      any
      other adjustments described therein or in the notes or schedules thereto or
      the
      absence of footnotes.

    
      
        
        

      

      
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    (k) The
      Company and its subsidiaries have designed and maintain (i) disclosure controls
      and procedures that are effective for gathering, analyzing and disclosing in
      a
      timely manner the information which the Company is required to disclose in
      the
      reports filed under the Securities Exchange Act of 1934 and (ii) a system of
      internal controls over financial reporting sufficient to provide reasonable
      assurances regarding the reliability of financial reporting and the preparation
      of financial statements for external purposes in accordance with GAAP. The
      Company has disclosed, based on its most recent evaluation of disclosure
      controls and procedures prior to the date hereof, to the Company’s auditors and
      the audit committee of the Company’s Board of Directors, (x) any significant
      deficiencies and material weaknesses in the design or operation of internal
      controls over financial reporting that are reasonably likely to adversely affect
      in any material respect the Company’s ability to record, process, summarize and
      report financial information and (y) any fraud, whether or not material, that
      involves management or other employees who have a significant role in the
      Company’s internal controls over financial reporting.

    

    (l) Except
      for liabilities included or reserved for in the consolidated balance sheet
      of
      the Company as of March 31, 2007, as filed with the SEC, neither the Company
      nor
      any of its subsidiaries had, and since such date none of them has incurred,
      liabilities, including contingent liabilities, or any other obligations
      whatsoever that are or could be material (individually or in the aggregate)
      to
      the Company and its subsidiaries of a nature required to be disclosed on a
      consolidated balance sheet or in the related notes thereto, taken as a whole,
      except current liabilities incurred in the ordinary course of business
      subsequent March 31, 2007 and except for such liabilities that would not,
      individually or in the aggregate, reasonably be expected to result in a Material
      Adverse Effect.

    

    (m)
       Except
      as
      disclosed in reasonable detail in the SEC Reports, neither the Company nor
      any
      of its subsidiaries is in material breach or violation of or in default in
      the
      performance or observance of any terms or provisions of, and no event has
      occurred which, with notice, lapse of time or both, could result in a default
      under any contract, agreement, lease or deed that is material to the business
      or
      operation of the Company and its subsidiaries taken as a whole, including any
      “material contract” within the meaning of Item 601 of Regulation S-K of the SEC
      (a "Material Contract"). To the knowledge of the Company, no other party to
      any
      Material Contract is in material breach thereof or default
      thereunder.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    

    (n) Except
      as
      disclosed in reasonable detail in the SEC Reports, no
      transaction has occurred between or among the Company or any of its affiliates,
      officers or directors or any affiliate of any such officer or director that
      is
      required to be disclosed pursuant to Section 13, 14 or 15(d) of the Exchange
      Act.

    

    (o) Except
      as
      disclosed in reasonable detail in the SEC Reports, during the period from March
      31, 2007 to the date hereof, the business of the Company and its subsidiaries
      has been conducted in the ordinary course consistent with past practice and
      there has not been any event, occurrence or development that has had, or could
      reasonably be expected to have, individually or in the aggregate, a Material
      Adverse Effect.

    

    (p) Except
      as
      disclosed in reasonable detail in the SEC Reports, the Company and each of
      its
      subsidiaries have good and marketable title to their respective owned properties
      and assets, and good title to their respective leasehold estates in leased
      properties and assets, in each case subject to no encumbrance, other than
      encumbrances that would not reasonably be expected to result in, individually
      or
      in the aggregate, a Material Adverse Effect. The properties and assets owned
      and
      leased by the Company and its subsidiaries are sufficient to carry on their
      businesses as they are now being conducted, except as would not reasonably
      be
      expected to result, individually or in the aggregate, in a Material Adverse
      Effect.

    

    (q) Except
      as
      disclosed in reasonable detail in the SEC Reports, the Company and each of
      its
      subsidiaries own or have a valid license or other right to use each trademark,
      service mark, trade name, domain name or other source indicator, invention,
      patent, design, trade secret, customer list, copyright, software, or work of
      authorship in any media, know-how (including any registrations or applications
      for registration of any of the foregoing) or any other similar type of
      proprietary intellectual property right used in or necessary to carry on the
      business of the Company and each of its subsidiaries, taken as a whole, as
      currently conducted (collectively, the “Company Intellectual Property”), free
      and clear of all encumbrances (other than other than encumbrances that would
      not
      reasonably be expected to result in, individually or in the aggregate, a
      Material Adverse Effect). The Company Intellectual Property is (i) valid and
      enforceable, and (ii) to the knowledge of the Company, not being infringed,
      misappropriated or otherwise violated by any third party. Neither the Company
      nor any of its subsidiaries has received any written notice of infringement
      of
      or challenge to, and there are no claims or orders pending or threatened with
      respect to the rights of others to the use of, any Company Intellectual
      Property. The Company and each of its subsidiaries take all reasonable actions
      to protect the Company Intellectual Property.

    

    (r) Except
      for matters which are not reasonably likely have a Material Adverse Effect,
      each
      of the Company and its subsidiaries has filed all necessary federal, state
      and
      foreign income and franchise tax returns and has paid or accrued all taxes
      whether or not shown as due.
      The
      Company has no knowledge of any tax deficiency which has been asserted or
      threatened against the Company or any of its subsidiaries. On the date hereof,
      all stock transfer or other taxes (other than income taxes) which are required
      to be paid in connection with the sale and transfer of the Shares hereunder
      will
      be, or have been, fully paid or provided for by the Company and the Company
      has
      complied and will comply with all laws imposing such taxes.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    

    (s) With
      respect to the Benefit Plans, to the knowledge of the Company and except as
      disclosed in reasonable detail in the SEC Reports, no event has occurred and
      no
      condition or set of circumstances exist, in connection with which the Company
      could be subject to any liability that would have a material adverse effect
      on
      it or its business under ERISA, the United States Internal Revenue Code of
      1986,
      as amended, or any other applicable law. The term “Benefit Plan” means each
“employee benefit plan” (within the meaning of Section 3(3) of the Employee
      Retirement Income Security Act of 1974, as amended (“ERISA”), including, without
      limitation, multiemployer plans within the meaning of Section 3(37) of
      ERISA), and all stock purchase, stock option, severance, employment,
      change-in-control, fringe benefit, collective bargaining, bonus, incentive,
      deferred compensation, employee loan and all other employee benefit plans,
      agreements, programs, policies or other arrangements, whether or not subject
      to
      ERISA, under which (i) any current or former employee, director or
      consultant of the Company or its subsidiaries has any present or future right
      to
      benefits and which are contributed to, sponsored by or maintained by the Company
      or any of its respective subsidiaries or (ii) the Company or any of its
      respective subsidiaries has had or has any present or future liability. The
      transactions contemplated by this Agreement will not result in any severance,
      change of control or termination pay or termination benefits or otherwise
      require the Company to make any cash payments to any of its directors, officers,
      employees or other affiliates. There are no pending or, to the knowledge of
      the
      Company, threatened, labor strikes, walkouts, work stoppages, slow-downs or
      lockouts involving the Company or any of its subsidiaries that would reasonably
      be expected to have, individually or in the aggregate, a Material Adverse
      Effect.

    

    (t) Except
      for the Agreement with National Securities Corporation, which has been disclosed
      to Prides, the Company is not a party to or bound by any contract, arrangement
      or understanding with, or subject to any claim by, any person or firm which
      may
      result in an obligation of the Company to pay any finder's fees, brokerage
      or
      agent commissions or other like payments in connection with the transactions
      contemplated hereby.

    

    (u) No
      shareholder vote under the organizational documents of the Company or any
      listing requirements applicable to the Company is necessary for the issuance
      of
      the Preferred Shares or the conversion of the Preferred Shares into the
      Conversion Shares.

    

    (v) The
      board
      of directors of the Company has determined that the transactions contemplated
      by
      this Agreement and the Transaction Documents are in the best interests of the
      Company. There are no anti-takeover laws of any state, federal or foreign
      jurisdiction that would apply to the execution, delivery or performance of
      this
      Agreement or the consummation the transactions contemplated hereby. The Company
      is not party to any contract or agreement with respect to, and does not maintain
      any, stockholders rights plan, poison pill or similar agreement, plan or
      arrangement with respect to its capital stock of the Company.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    (w) The
      Company undertakes and agrees to make all necessary filings in connection with
      the sale of the Preferred Shares and the Conversion Shares as required by the
      laws and regulations of all appropriate jurisdictions. The Company’s Common
      Stock is registered pursuant to the Exchange Act, and is listed on the OTC
      Bulletin Board, and the Company has taken no action intended to, or which to
      its
      knowledge could have the effect of, terminating the registration of the Common
      Stock under the Exchange Act or delisting the Common Stock from the OTC Bulletin
      Board.

    

    (x) The
      Company shall consult with its legal counsel regarding its Exchange Act filing
      requirements including, but not limited to, the obligation of the Company to
      file Form 8-K in connection with the offering of the Preferred Shares, and
      timely make any and all necessary filings.

    

    (y) The
      Company understands that Prides is relying upon the truth and accuracy of the
      representations, warranties, agreements, acknowledgments and understandings
      of
      the Company set forth herein. The representations, warranties and agreements
      of
      the Company contained herein are true and correct as of the date hereof and
      may
      be relied upon by Prides. The representations, warranties and agreements of
      the
      Company contained herein shall survive the execution and delivery of this
      Subscription Agreement and the purchase of the Preferred Shares.

    

    6. Miscellaneous.

    

    (a) This
      Subscription Agreement has been duly and validly authorized, executed and
      delivered by Prides and constitutes the valid, binding and enforceable agreement
      of Prides. This Subscription Agreement has been completed and executed by an
      authorized corporate officer, general partner or trustee of Prides.

    

    (b) This
      Subscription Agreement and the documents referred to herein constitute the
      entire agreement between the parties hereto with respect to the subject matter
      hereof and together supersede all prior discussions or agreements in respect
      thereof.

    

    (c) Subject
      to the terms and conditions herein provided, each party hereto shall use its
      reasonable best efforts to take, or cause to be taken, all actions and to do,
      or
      cause to be done, and to assist and cooperate with the other party in doing,
      all
      things necessary, proper or advisable consistent with applicable laws and
      regulations to consummate and make effective the transactions contemplated
      by
      this Agreement; provided,
      however,
      that
      nothing in this Section 6(c) shall require any party to agree to any
      modification of this Agreement or any of the Transaction Documents or cause
      Prides to make any payment or investment in the Company that is greater than
      the
      amount set forth herein.

    

    (d) No
      covenant or other provision hereof may be waived otherwise than by a written
      instrument signed by the party so waiving such covenant or other provision.
      The
      waiver or failure to insist upon strict compliance with any condition or
      provision hereof shall not operate as a waiver of, or estoppel with respect
      to,
      any subsequent or other waiver or failure. This Agreement may not be amended
      or
      modified except by an instrument in writing signed by the Company and each
      of
      the Investors.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    (e) This
      Agreement shall be deemed to be a contract made under, and shall be construed
      in
      accordance with, the laws of the State of Delaware (without giving effect to
      principles of conflicts of law the effect of which would cause the application
      of domestic substantive laws of any other jurisdiction).

     

    (f) All
      notices and other communications required or permitted hereunder shall be deemed
      given if in writing and mailed by registered or certified mail, postage prepaid,
      or otherwise delivered by hand or by messenger, addressed (a) if to Prides,
      at
      such address as Prides shall have furnished to the Company in writing, or (b)
      if
      to the Company, at the address of its principal offices and addressed to the
      attention of the Corporate Secretary and with a copy to Frost Brown Todd LLC,
      400 West Market Street, 32nd
      Floor,
      Louisville, Kentucky 40202-3363, Attention: R. James Straus, Esq., or at such
      other address as the Company shall have furnished to Prides in
      writing.

     

    (g) Whenever
      possible, each provision of this Agreement shall be interpreted in such a manner
      as to be effective and valid under applicable law, but if any provision of
      this
      Agreement shall be deemed prohibited or invalid under such applicable law,
      such
      provision shall be ineffective to the extent of such
      prohibition or invalidity, and such prohibition or invalidity shall not
      invalidate the remainder of such provision or the other provisions of this
      Agreement.

    

    (h) This
      Agreement may be not assigned, pledged, hypothecated or otherwise transferred
      by
      the Company or Prides.

    

    (i) Nothing
      expressed or implied in this Agreement is intended or shall be construed to
      confer upon or give any person other than the parties hereto any rights or
      remedies under or by reason of this Agreement or any transaction contemplated
      hereby.

    

    (d) This
      Subscription Agreement may be executed in two or more counterparts, each of
      which shall be deemed to be an original, but all of which shall constitute
      a
      single document.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, Prides has executed this Subscription Agreement this
      15th
      day of
      June, 2007.

    

    

    
      	 	
              Prides
                Capital Fund I, L.P.

            
	 	 	 
	 	
              By:
                

            	Prides
              Capital
              Partners, LLC,
	 	
               

            	
              its
                sole general partner

            
	 	 	 
	 	
              
                By:
                  

              

            	
               
                

            
	 	 	 
	 	
              Name:

            	  

	 	 	 
	 	
              Title:

            	  

    

    

    

      
        	
                ACCEPTED
                  AND AGREED TO:

              	 
	
                FLORIDA
                  GAMING CORPORATION

              	 
	 	 	 
	 	 	 
	 	 	 
	
                By:

              	  
	 
	 	 	 
	
                Name:

              	  
	 
	 	 	 
	
                Title:

              	  
	 
	 	 	 
	
                Date:

              	
                June
                  15, 2007

              	 

      

    
 

    
      
        
        

        
        

      

      
        12

        
          

        

      

      
        
        

        
        

      

    

     

    
      
        Exhibit
          A

        

        Certificate
          of Designations,

        Voting
          Powers, Preferences, Limitations,

        Restrictions,
          and Relative Rights of

        Series
          AA
          7% Cumulative Convertible 

        Preferred
          Stock, $0.10 Par Value

         

         

        
          
            

          

        

        

        Pursuant
          to Section 151 of the

        General
          Corporation Law of the State of Delaware

         

        
          

        

        
 

        
          Florida
            Gaming Corporation, a Delaware corporation (the "Corporation"), does
            hereby
            certify that the following resolution has been duly adopted by the Board
            of
            Directors of the Corporation (the "Board"):

          

          RESOLVED,
            that, pursuant to the authority expressly granted to and vested in the
            Board by
            the provisions of the Certificate of Incorporation (the "Certificate
            of
            Incorporation") of the Corporation, there hereby is created a new series
            of
            Preferred Stock, $0.10 par value, which series shall have the following
            designations, powers, preferences, rights, qualifications, limitations
            and
            restrictions (in addition to the designations, powers, preferences, rights,
            qualifications, limitations and restrictions set forth in the Certificate
            of
            Incorporation which are applicable to the Preferred Stock).

          

          
            	 	
                    1.

                  	
                    Designation:
                      Number of Shares.
                      

                  

          

          

          The
            designation of said series of Preferred Stock shall be Series AA 7% Cumulative
            Convertible Preferred Stock (the "Series AA Preferred Stock"). The number
            of
            shares of Series AA Preferred Stock shall be 5,000. Each share of Series
            AA
            Preferred Stock shall have a stated value (the "Stated Value") equal
            to $1,000
            (as adjusted for any stock dividends, combinations or splits with respect
            to
            such shares). The Series AA Preferred Stock shall be equal in rank to
            the Class
            A Convertible Preferred Stock, the Series B Convertible Preferred Stock,
            the
            Series E 8% Cumulative convertible Preferred Stock ("Series E Preferred
            Stock"),
            and the Series F 8% Cumulative Convertible Preferred Stock ("Series F
            Preferred
            Stock") in all respects.

          

          
            	 	
                    2.

                  	
                    Dividends.

                  

          

          

          (a) The
            holders of outstanding shares of Series AA Preferred Stock shall be entitled
            to
            receive preferential dividends in cash, out of any funds of the Corporation
            legally available at the time of dividends, before any dividend or other
            distribution will be paid or declared and set apart for payment on any
            shares of
            any Common Stock or other class of stock which does not expressly provide
            that
            it ranks senior in preference or priority to or on parity with the Series
            AA
            Preferred Stock (the Common Stock and such junior stock being hereinafter
            collectively the "Junior Stock") at the greater of (i) the rate of 7%
            per annum
            on the Stated Value per share plus any accrued and unpaid dividends that
            are
            payable (“Regular Dividends”) and (ii) the amount of any dividend paid or
            payable on any Junior Stock (on an as-converted basis), payable quarterly
            on the
            last day of a fiscal quarter, commencing June 30, 2007. Regular Dividends
            will
            accrue and accumulate whether or not the Corporation has earnings or
            profits,
            whether or not there are funds legally available for the payment of Regular
            Dividends and whether or not Regular Dividends are declared.

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          

          (b) The
            dividends on the Series AA Preferred Stock at the rate provided above
            shall be
            cumulative whether or not earned, so that if at any time full cumulative
            dividends at the rate aforesaid on all shares of the Series AA Preferred
            Stock
            then outstanding from the date from and after which dividends thereon
            are
            cumulative to the end of the quarterly dividend period next preceding
            such time
            shall not have been paid or declared and set apart for payment, or if
            the full
            dividend on all such outstanding Series AA Preferred Stock for the then
            current
            dividend period shall not have been paid or declared and set apart for
            payment,
            the amount of the deficiency shall be paid or declared and set apart
            for payment
            before any sum shall be set apart for or applied by the Corporation or
            a
            subsidiary of the Corporation to the purchase, redemption or other acquisition
            of the Series AA Preferred Stock or any shares of any other class of
            stock
            ranking on a parity with the Series AA Preferred Stock ("Parity Stock")
            and
            before any dividend or other distribution shall be paid or declared and
            set
            apart for payment on any Junior Stock and before any sum shall be set
            aside for
            or applied to the purchase, redemption or other acquisition of Junior
            Stock.

          

          (c) Dividends
            on all shares of the Series AA Preferred Stock shall begin to accrue
            and be
            cumulative from and after the date of issuance thereof (the "Dividend
            Commencement Date"). A dividend period shall be deemed to commence on
            the day
            following a quarterly dividend payment date herein specified and to end
            on the
            next succeeding quarterly dividend payment date herein specified.

          

          (d) Unless
            all accrued and unpaid dividends for all past Dividend Periods on outstanding
            shares of Series AA Preferred Stock have been declared and paid or set
            aside for
            payment in full, the Corporation shall not redeem or purchase less than
            all of
            the outstanding shares of Series AA Preferred Stock, except through an
            offer
            made on the same terms to all holders of at least a majority of all shares
            of
            Series AA Preferred Stock at the time of standing voting in person or
            by proxy
            at an annual meeting of the Corporation's stockholders or at a special
            meeting
            called for such purpose, or by the execution of a written consent by
            the record
            holders of a majority of the outstanding shares of Series AA Preferred
            Stock.

          

          
            	 	
                    3.

                  	
                    Voting.
                      

                  

          

          

          Except
            as
            otherwise provided in Section 2(d) the holders of shares of Series AA
            Preferred
            Stock shall not be entitled to vote for the election of directors or
            on any
            other matters except as otherwise provided by law. 

          
            
              
              

            

            
              2

              
                

              

            

            
              
              

            

          

          

           

          

          
            	 	
                    4.

                  	
                    Liquidation
                      Rights.

                  

          

          

          (a) Upon
            the
            dissolution, liquidation or winding-up of the Corporation, whether voluntary
            or
            involuntary, the holders of the Series AA Preferred Stock shall be entitled
            to
            receive, before any payment or distribution shall be made on the Junior
            Stock,
            out of the assets of the Corporation available for distribution to stockholders,
            an amount in cash per share equal to the greater of (i) the Stated Value
            per
            share of Series AA Preferred Stock and all accrued and unpaid dividends
            to and
            including the date of payment thereof and (ii) the amount the holders
            of Series
            AA Preferred Stock would have received upon dissolution, liquidation
            or winding
            up of the Corporation had such holders converted their shares of Series
            AA
            Preferred Stock into shares of Common Stock. After the payment to the
            holders of
            the shares of Series AA Preferred Stock of the full preferential amounts
            provided for in this Section 4, the holders of the shares of Series AA
            Preferred
            Stock shall have no other right or claim to, and shall not be entitled
            to
            participate further in any distribution of the assets of the Corporation.
            If the
            assets of the Corporation available for distribution to the holders of
            the
            Series AA Preferred Stock shall be insufficient to permit payment in
            full of the
            amounts payable as aforesaid to the holders of Series AA Preferred Stock
            upon
            such liquidation, dissolution or winding-up, whether voluntary or involuntary,
            then all such assets of the Corporation shall be distributed, to the
            exclusion
            of the holders of shares of Junior Stock, ratably among the holders of
            the
            Series AA Preferred Stock and any other stock of equal ranking.

          

          (b) The
            (i)
            merger or consolidation of the Corporation with or into any other corporation
            or
            corporations and the sale or transfer by the Corporation of all or substantially
            all of its assets (but only in each instance if W. Bennett Collett does
            not
            remain as the chief executive officer of the Corporation following such
            transaction) and (ii) any Change of Control of the Corporation, shall
            be deemed
            to be a liquidation, dissolution or winding-up of the Corporation for
            the
            purposes of this Section 4. Holders of the Series AA Preferred Stock
            shall be
            entitled, upon the liquidation, dissolution or winding-up of the Corporation,
            to
            receive any amounts with respect to such stock as referred to in this
            Section
            4.

          

          
            	 	
                    5.

                  	
                    Conversion
                      into Common Stock.

                  

          

          

          Shares
            of
            Series AA Preferred Stock shall have the following conversion rights
            and
            obligations:

          

          (a) Subject
            to the further provisions of this Section 5, each holder of shares of
            Series AA
            Preferred Stock shall have the right during the period beginning on the
            date of
            issuance of the Series AA Preferred Stock (the "Conversion Period") to
            convert
            some or all such shares into fully paid and non-assessable shares of
            Common
            Stock of the Corporation (as defined in Section 5(h) below) determined
            in
            accordance with paragraph 5(b) below.

          

          (b) Each
            share of Series AA Preferred Stock shall be converted into a number of
            shares of
            Common Stock equal to 40.00, which is the Stated Value of each share
            of Series
            AA Preferred Stock divided by a designated rate of $25 per share of Common
            Stock
            (the "Conversion Stock"). The number of shares of Conversion Stock into
            which
            each share of Series AA Preferred Stock shall be converted shall be
            proportionately adjusted for any increase or decrease in the number of
            shares of
            Common Stock or Series AA Preferred Stock, as the case may be, outstanding
            arising from any division or consolidation of shares, stock dividend,
            reverse
            stock split, or other similar increase or decrease in the number of shares
            of
            Common Stock or Series AA Preferred Stock, as the case may be, outstanding
            without receipt of consideration by the Corporation. Within five business
            days
            of the effective date of any conversion of a share of Series AA Preferred
            Stock
            into Common Stock, the Corporation shall pay the holder of such converted
            share
            of Series AA Preferred stock all accrued but unpaid dividends through
            the
            conversion date on such share.

          
            
              
              

            

            
              3

              
                

              

            

            
              
              

            

          

          

          

          (c)    (i) The
            holder of any certificate for shares of Series AA Preferred Stock desiring
            to
            convert any of such shares shall surrender such certificate, at the principal
            office of any transfer agent for said stock (the "Transfer Agent"), with
            a
            written notice (the "Notice of Conversion") of such election to convert
            such
            shares into Common Stock duly filled out and executed, and if necessary
            under
            the circumstances of such conversion, with such certificate properly
            endorsed
            for, or accompanied by duly executed instruments of, transfer (and such
            other
            transfer papers as said Transfer Agent may reasonably require). The holder
            of
            the shares so surrendered for conversion shall be entitled to receive
            within
            three (3) business days of the Notice of Conversion (except as otherwise
            provided herein) a certificate or certificates, which shall be expressed
            to be
            fully paid and non-assessable, for the number of shares of Common Stock
            to which
            such stockholder shall be entitled upon such conversion, registered in
            the name
            of such holder or in such other name or names as such stockholder in
            writing may
            specify (provided, that the Corporation shall not be required to issue
            the
            Common Stock in any name other than the holder of the Series AA Preferred
            Stock
            unless an exemption from registration for the transfer of such shares
            is
            available under the Securities Act of 1933 and any applicable state securities
            laws). In the case of any Series AA Preferred Stock which is converted
            in part
            only, the holder of shares of Series AA Preferred Stock shall upon delivery
            of
            the certificate or certificates representing Common Stock also receive
            a new
            share certificate representing the unconverted portion of the shares
            of Series
            AA Preferred Stock. Nothing herein shall be construed to give any holder
            of
            shares of Series AA Preferred Stock surrendering the same for conversion
            the
            right to receive any additional shares of Common Stock or other property
            which
            results from an adjustment in conversion rights under the provisions
            of
            subparagraph (f) of this Section 5 until holders of Common Stock are
            entitled to
            receive the shares or other property giving rise to the adjustment.

          

          (ii) In
            the
            case of the exercise of the conversion rights set forth in Section 5(a),
            the
            conversion privilege shall be deemed to have been exercised, and the
            shares of
            Common Stock issuable upon such conversion shall be deemed to have been
            issued,
            upon the date of receipt by such Transfer Agent for conversion of the
            certificate for such shares of Series AA Preferred Stock. The person
            or entity
            entitled to receive Common Stock issuable upon such conversion shall
            on the date
            such conversion privilege is deemed to have been exercised and thereafter
            be
            treated for all purposes as the record holder of such Common Stock and
            shall on
            the same date cease to be treated for any purpose as the record holder
            of such
            shares of Series AA Preferred Stock so converted.

          
            
              
              

            

            
              4

              
                

              

            

            
              
              

            

          

          

          (iii) Notwithstanding
            the foregoing, if the stock transfer books are closed on the date such
            shares
            are received by the Transfer Agent, the conversion privilege shall be
            deemed to
            have been exercised, and the person or entity shall be treated as a record
            holder of shares of Common Stock, on the next succeeding date on which
            the
            transfer books are open. The Corporation shall not be required to deliver
            certificates for shares of its Common Stock or new certificates for unconverted
            shares of its Series AA Preferred Stock while the stock transfer books
            for such
            respective classes of stock are duly closed for any purpose, but the
            right of
            surrendering shares of Series AA Preferred Stock for conversion shall
            not be
            suspended during any period that the stock transfer books of either of
            such
            classes of stock are closed.

          

          (iv) Upon
            the
            conversion of any shares of Series AA Preferred Stock, no adjustment
            or payment
            shall be made with respect to such converted shares on account of any
            dividend
            thereafter on shares of such stock or on account of any dividend on the
            Common
            Stock, except that the holder of such converted shares shall be entitled
            to be
            paid any dividends declared on shares of Common Stock after conversion
            thereof.

          

          (v) If
            the
            Corporation shall at any time be liquidated, dissolved or wound-up, the
            conversion privilege shall terminate at the close of business on the
            last
            business day next preceding the effective date of such liquidation, dissolution
            or winding up.

          

          (vi) The
            Corporation shall not be required, in connection with any conversion
            of Series
            AA Preferred Stock, to issue a fractional shares of its common Stock
            nor to
            deliver any stock certificate representing a fraction thereof, but in
            lieu
            thereof the Corporation may make a cash payment equal to such fraction
            multiplied by $25.00.

          

          (d)    (i) In
            case
            of any consolidation or merger of the Corporation with or into any other
            corporation (other than a merger or consolidation in which the Corporation
            is
            the surviving or continuing corporation and which does not result in
            any
            reclassification, conversion or change of the outstanding shares of Common
            Stock), then lawful provision shall be made so that holders of Series
            AA
            Preferred Stock shall thereafter have the right to convert each share
            of Series
            AA Preferred Stock into the kind and amount of shares of stock and/or
            other
            securities or property receivable upon such consolidation or merger by
            a holder
            of the number of shares of Common Stock into which such shares of Series
            AA
            Preferred Stock might have been converted immediately before such consolidation
            or merger. The foregoing provisions of this Section 5(d) shall similarly
            apply
            to successive consolidations and mergers.

          

          (ii) In
            case
            of any sale or conveyance to another person or entity of the property
            of the
            Corporation as an entirety, or substantially as an entirety, in connection
            with
            which shares or other securities or cash or other property shall be issuable,
            distributable, payable or deliverable for outstanding shares of Common
            Stock,
            then, unless the right to convert such shares shall have terminated,
            lawful
            provision shall be made so that the holders of Series AA Preferred Stock
            shall
            thereafter have the right to convert each share of the Series AA Preferred
            Stock
            into the kind and amount of shares of stock or other securities or cash
            or
            property that shall be issuable, distributable, payable or deliverable
            upon such
            sale or conveyance with respect to each share of Common Stock immediately
            before
            such conveyance.

          
            
              
              

            

            
              5

              
                

              

            

            
              
              

            

          

          

          

          (iii) In
            case
            of any issuance of Equity Securities of the Corporation after the date
            hereof
            (other than (a) issuances to employees of the Company or any of its subsidiaries
            in connection with such person's employment arrangements, (b) registered
            public
            offerings, (c) issuances directly related to any business combination,
            recapitalization or acquisition transaction involving the Company or any of
            its subsidiaries and (d) issuances directly related to any joint venture,
            strategic partnership or alliance, in each case to the extent approved
            by the
            Board) at a purchase price (including any implied purchase price based
            upon
            conversion into Common Stock) less than the applicable conversion price
            of the
            Series AA Preferred Stock, the number of shares of Conversion Stock into
            which
            each share of Series AA Preferred Stock may be converted shall be adjusted
            downward to a conversion price calculated by multiplying the conversion
            price
            immediately prior to such issuance by a fraction, the numerator of which
            equals
            the sum of (i) the conversion price prior to such issuance multiplied
            by the
            number of shares of Common Stock of the Corporation that are outstanding
            immediately prior to such issuance (on a fully diluted basis) plus (ii)
            the
            aggregate consideration received (or receivable upon conversion into
            Common
            Stock) by the Corporation with respect to such issuance and the denominator
            of
            which equals (x) the number of shares of Common Stock of the Corporation
            that
            are outstanding immediately after such issuance (on a fully diluted basis)
            multiplied by the conversion price of the Series AA Preferred immediate
            prior to
            such issuance.

          

          (e) Whenever
            the number of shares to be issued upon conversion of the Series AA Preferred
            Stock is required to be adjusted as provided in this Section 5, the Corporation
            shall forthwith compute the adjusted number of shares to be so issued
            and
            prepare a certificate setting forth such adjusted conversion amount and
            the
            facts upon which such adjustment is based, and such certificate shall
            be
            forthwith be filed with the Transfer Agent for the Series AA Preferred
            Stock and
            the Common Stock; and the Corporation shall mail to each holder of record
            of
            Series AA Preferred Stock notice of such adjusted conversion price.

          

          (f) In
            case
            at any time the Corporation shall propose:

          

          (i) to
            pay
            any dividend or distribution payable in shares upon its Common Stock
            or make any
            distribution (other than cash dividends) to the holders of its Common
            Stock,
            Class A Convertible Preferred Stock, Series B Convertible Preferred Stock,
            Series C Preferred Stock, Series D Preferred Stock, or Series E Preferred
            Stock,
            other than in accordance with the terms hereof; or

          

          (ii) to
            offer
            for subscription to the holders of its Common Stock, Class A Convertible
            Preferred Stock, Series B Convertible Preferred Stock, Series C Preferred
            Stock,
            Series D Preferred Stock, or Series E Preferred Stock, or other than
            in
            accordance with the terms thereof, any additional shares of any class
            or any
            other rights; or

          

          (iii) any
            capital reorganization or reclassification of its shares, or the consolidation
            or merger of the Corporation with another corporation; or 

          

          (iv) the
            voluntary dissolution, liquidation or winding-up of the Corporation;
            

          
            
              
              

            

            
              6

              
                

              

            

            
              
              

            

          

          

          then,
            and
            in any one or more of said cases, the Corporation shall cause at least
            fifteen
            (15) days prior notice of the date on which (A) the books of the Corporation
            shall close, or a record be taken for such stock dividend, distribution
            or
            subscription rights, or (B) such capital reorganization, reclassification,
            consolidation, merger, dissolution, liquidation or winding-up shall take
            place,
            as the case may be, to be mailed to the Transfer Agent for the Series
            AA
            Preferred Stock and for the Common Stock and to the holders of record
            of the
            Series AA Preferred Stock. 

          

          (g) So
            long
            as any shares of Series AA Preferred Stock shall remain outstanding and
            the
            holders thereof shall have the right to convert the same in accordance
            with
            provisions of this Section 5, the Corporation shall at all times reserve
            from
            the authorized and unissued shares of its Common Stock a sufficient number
            of
            shares to provide for such conversions.

          

          (h) The
            term
            "Common Stock" as used in this Section 5 shall mean Common Stock of the
            Corporation as such stock is constituted at the date of issuance thereof
            or as
            it may from time to time be changed, or shares of stock of any class,
            other
            securities and/or property into which the shares of Series AA Preferred
            Stock
            shall at any time become convertible pursuant to the provisions of this
            Section
            5. 

          

          (i) The
            Corporation shall pay the amount of any and all issue taxes which may
            be imposed
            in respect of any issue or delivery of stock upon the conversion of any
            shares
            of Series AA Preferred Stock, but all transfer taxes that may be payable
            in
            respect of any change of ownership of Series AA Preferred Stock, or any
            rights
            represented thereby, or of stock receivable upon conversion thereof,
            shall be
            paid by the person or persons surrendering such stock for
            conversion.

          

          
            	 	
                    6.

                  	
                    Status
                      of Converted Stock.

                  

          

          

          In
            case
            any shares of Series AA Preferred Stock shall be converted pursuant to
            Section 5
            hereof, or otherwise repurchased or reacquired, the shares so redeemed,
            converted or reacquired shall resume the status of authorized but unissued
            shares of Preferred Stock and shall no longer be designated as Series
            AA
            Preferred Stock. 

          

          
            	 	
                    7.

                  	
                    Defined
                      Terms.

                  

          

          

          "Change
            in Control" means a transaction involving the occurrence of (i) any merger,
            consolidation, stock or asset purchase, recapitalization or other business
            combination transaction as a result of which the stockholders of the
            Corporation
            immediately prior to such transaction in the aggregate cease to own more
            than
            50% of the total voting power of all shares of capital stock of the Corporation
            that are entitled to vote generally in the election of directors of the
            entity
            surviving or resulting from such transaction (or ultimate parent thereof);
            (ii)
            any person or group, together with any affiliates thereof, has, directly
            or
            indirectly, become the beneficial owner of more than 50% of the total
            voting
            power of all shares of capital stock of the Corporation that are entitled
            to
            vote generally in the election of directors; (iii) during any period
            of two
            consecutive years, individuals who at the beginning of such period constitute
            the board of directors of the Corporation (together with any new directors
            whose
            election by such board or whose nomination for election by the stockholders
            of
            the Corporation was approved by a vote of a majority of the directors
            of the
            Corporation then still in office who were either directors at the beginning
            of
            such period or whose election or nomination for election was previously
            so
            approved) cease for any reason (other than death) to constitute a majority
            of
            the board then in office; (iv) the sale, lease, encumbrance, transfer
            or
            disposition, including but not limited to any spin-off or in-kind distribution
            (a “Divestiture”), by the Corporation or by one or more of its Subsidiaries of
            all or substantially all of the assets, business or securities of the
            Corporation (on a consolidated basis) to any person or group (other than
            the
            Corporation or its wholly-owned subsidiaries); provided
            that a
            Divestiture, the fair market value of the assets, business and securities
            of
            which is in excess of 50% of the Corporation’s market capitalization as of the
            consummation of the Divestiture, shall be deemed a Divestiture of all
            or
            substantially all of the assets, business or securities of the Corporation
            (on a
            consolidated basis).

          
            
              
              

            

            
              7

              
                

              

            

            
              
              

            

          

          
 

          “Equity
            Securities” means (x) any shares of capital stock of the Corporation, (y) any
            rights, options, warrants or similar securities to subscribe for, purchase
            or
            otherwise acquire any shares of capital stock of the Corporation, and
            (z)
            capital stock or other equity securities directly or indirectly convertible
            into
            or exercisable or exchangeable for any shares of capital stock of the
            Corporation.

          

          “Senior
            Stock” means each class or series of Equity Security of the Corporation the
            that
            rank senior in preference or priority to the Series AA Preferred Stock
            with
            respect to dividend rights or rights upon liquidation, dissolution or
            winding up
            of the Corporation.

          

          
            
              
              

            

            
              8

              
                

              

            

            
              
              

            

          

          IN
            WITNESS WHEREOF, the Corporation has caused this Certificate to be duly
            executed
            on its behalf by its Chairman and Chief Executive Officer this 15th day
            of June,
            2007.

          

          
            	 	
                    FLORIDA
                      GAMING CORPORATION

                  
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	
                    By:

                  	  

	 	 	
                    W.
                      Bennett Collett

                  

          

        

      

    

    
 

    
      
        
        

        
        

      

      
        9

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      B

    

    Stockholders
      Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    

    Warrant

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