Document:

REDEMPTION
        TECHNOLOGY AND SUPPLY AGREEMENT

       

      This
        redemption techonology and supply Agreement
        (this
“Agreement”) is entered into effective May 24, 2005 (“Effective
        Date”), by and between Bally Gaming Inc., a Nevada corporation (“Bally”) and
        Spectre Gaming, Inc., a Minnesota corporation (“Spectre”). Bally and Spectre may
        be referred to individually as a “Party” and collectively as the
“Parties.”

       

      WHEREAS,
        Bally is in the business of developing, manufacturing and distributing
        redemption technology and equipment, and Spectre is a developer and distributor
        of redemption technology and equipment; and

       

      WHEREAS,
        Spectre desires to obtain, and Bally desires to grant to Spectre, a license
        to
        use the Enabling Technology, the right to develop certain games using Enabling
        Technology (as defined below), to market and distribute Bally equipment
        including such redemption games, and to operate or allow the operation of
        jurisdictionally compliant redemption games and redemption gaming systems
        in a
        territory.

       

      NOW,
        THEREFORE, in consideration of the mutual covenants contained herein and
        other
        good and valuable consideration, the receipt and sufficiency of which are
        hereby
        acknowledged, the Parties, intending to be legally bound, covenant and agree
        as
        follows:

       

      1. DEFINITIONS

       

      
        	a)  	
                “Alpha
                  *** ” ***.

              

      

       

      
        	b)  	
                 “Bally
                  Cabinet”means
                  a gaming device, player station, cabinet or similar equipment utilizing
                  Bally’s Alpha ***, on which a Redemption Games may be operated or played,
                  which cabinet is manufactured by Bally and sold to Spectre under
                  the terms
                  of this Agreement. 

              

      

       

      
        	c)  	
                “Bally
                  Product”means
                  the Bally Cabinets, Alpha ***, Enabling Technology, Licensed Themes,
                  Licensed Theme Materials, and Bally games identified on Exhibit
                  A, as well
                  as any part of any of the
                  foregoing.

              

      

       

      
        	d)  	
                “Change
                  of Control”means
                  change of ownership of a Controlling
                  Interest
                  in
                  Spectre.

              

      

       

      
        	e)  	
                “Controlling
                  Interest in Spectre”means
                  ownership of a 50% voting interest in
                  Spectre.

              

      

       

      
        	f)  	
                “Confidential
                  Information”
                  means all data and information of a confidential nature, including
                  know-how and trade secrets, relating to the business, the affairs,
                  any
                  development projects or other equipment, programs, software, products
                  or
                  services of either party, whether developed by or for Bally or
                  Spectre or
                  any of their respective Licensor’s, contractors or successors-in-interest.
                  Confidential Information may be communicated to the other party
                  orally, in
                  writing or in any other recorded or tangible form. Data and information
                  shall be considered to be Confidential Information: (i) if marked
                  as such;
                  (ii) if a party has been advised of their confidential nature,
                  orally or
                  in writing; or (iii) if, due to their character or nature, they
                  should be
                  treated as secret and confidential.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	g)  	
                “Conversion
                  Kit”***.

              

      

       

      
        	h)  	
                “Enabled
                  Redemption Unit”, or “ERU”,
                  means a gaming device, player station, cabinet or similar equipment
                  produced by or for Spectre that incorporates an Alpha *** on which
                  Redemption Games developed by Spectre using the Enabling Technology
                  pursuant to Section 3(a) are installed, which gaming device, player
                  station, cabinet or similar equipment is not capable of being used
                  for any
                  purpose other than playing such Redemption
                  Games.

              

      

       

      
        	i)  	
                “Enabling
                  Technology”
                  ***. 

              

      

       

      
        	j)  	
                “Installed
                  Base”means
                  the total number of ERUs theretofore sold, leased or otherwise
                  distributed
                  by Spectre or any of its distributors, or subdistributors, hereunder
                  at
                  any time during the Term hereof, other than any ERUs that have
                  been
                  deactivated or are for some other reason not operating in the
                  Territory.

              

      

       

      
        	k)  	
                “Intellectual
                  Property Rights”means
                  and include all United States and other patents, copyrights, designs,
                  mask
                  work rights, Trademarks, trade secrets and other proprietary rights,
                  any
                  applications therefor, any registrations thereof, and any applications
                  for
                  registration thereof.

              

      

       

      
        	l)  	
                “Kiosk”means
                  a kiosk placed at an Establishment at which Authorized Redemption
                  Games
                  are deployed for use by users of Authorized Redemption Games to
                  redeem
                  coupons or other representations of value received from an Authorized
                  Redemption Game for cash or
                  merchandise.

              

      

       

      
        	m)  	
                “Establishment”means
                  any business or establishment in which no Class III or Class II
                  gaming (as
                  those terms are defined in the Indian Gaming Regulatory Act, at
                  25 U.S.C.
                  § 2703) occurs.

              

      

       

      
        	n)  	
                “Licensed
                  Theme Materials”
                  ***.

              

      

       

      
        	o)  	
                “Licensed
                  Themes”
                  means the Themes for the Bally games set forth on Exhibit
                  A.

              

      

       

      
        	p)  	
                “Redemption
                  Games”means
                  games in which the user wagers money and, if the outcome is such
                  that the
                  game dispenses or displays a coupon or other representation of
                  value that
                  is redeemable for cash or merchandise, where (i) the retail value
                  of the
                  merchandise redeemable using any such coupon or other representation
                  of
                  value is materially greater than the value of cash redeemable using
                  such
                  coupon, (ii) the maximum wholesale value of merchandise available
                  from a
                  single play of the game or device is no more than the maximum value
                  allowed by applicable law in the respective jurisdiction, and (iii)
                  the
                  game is not a , Class III game, Class II game, bingo-based, electronic
                  pull-tab or charitable game, or a game that is operated in a private
                  home
                  or on a personal wireless digital device. (as those terms are defined
                  in
                  the Indian Gaming Regulatory Act, at 25 U.S.C. § 2703), or not otherwise a
                  gaming device found in casino environments. Redemption Games shall
                  include
                  Authorized Redemption Games and other jurisdictionally compliant
                  games
                  developed by Spectre for use with the Enabling
                  Technology.

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	q)  	
                “Term”
                  shall have the meaning provided in Section
                  12.a.

              

      

       

      
        	r)  	
                “Territory”means
                  the United States of America. 

              

      

       

      
        	s)  	
                “Theme”
                  means the theme and subject matter underlying one or more
                  games.

              

      

       

      
        	t)  	
                “Transition
                  Services”***.

              

      

       

      
        	u)  	
                “Video
                  Lottery Terminal”means
                  a video or electromechanical game of skill or chance that accepts
                  wagers,
                  sponsored by an agency of a state government and controlled by
                  such
                  state’s lottery, that is classified by the applicable state agency as
                  a
                  Video Lottery Terminal.

              

      

       

      2. CONDITIONS
        PRECEDENT. 

       

      This
        Agreement is subject to the following conditions being met before the Agreement
        can take effect:

       

      
        	a)  	
                Approval
                  of Bally Compliance Committee of the Agreement;

              

      

       

      
        	b)  	
                Approval
                  of the Alliance Board of Directors;
                  and

              

      

       

      
        	c)  	
                Spectre
                  to provide Bally with earnest money of $100,000 at time of signing.
                  

              

      

       

      Should
        any of these conditions not be met then the agreement is void. Bally agrees
        to
        provide a written response to address section a) and b) above within 10 business
        days of full execution of this Agreement or this Agreement shall be of no
        further force and effect between the parties. All Earnest money including
        $100,000 previously provided by Spectre will be returned if these conditions
        are
        not satisfied.

       

      3. GRANT
        OF LICENSE TO USE THE ENABLING TECHNOLOGY

       

      
        	a)  	
                Licenses:
                  Bally hereby grants to Spectre (i) an exclusive (except as provided
                  in
                  Section 3(b)) license to distribute jurisdictionally compliant
                  Redemption
                  Games that are installed on ERUs, (ii) an exclusive license to
                  utilize,
                  exploit and develop Bally’s Enabling Technology to develop
                  jurisdictionally compliant Redemption Games that use Bally’s Enabling
                  Technology and to create one or more gaming and redemption systems
                  for the
                  conduct of redemption or amusement with prize gaming activities
                  in legal
                  jurisdictions within the Territory, with the exception of research
                  and
                  development performed by Bally with the Enabling Technology for
                  products
                  to be deployed outside of the Territory or that are not Redemption
                  Games,
                  and (iii) a nonexclusive license to use the Enabling Technology
                  for other
                  legal purposes which are necessary to allow Spectre to develop
                  and deploy
                  Redemption Games as expressly authorized hereunder.
                  

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	b)  	
                During
                  the term of this Agreement, Spectre shall only obtain or otherwise
                  use
                  Enabling Technology from Bally, and shall be prohibited from otherwise
                  obtaining from any third party(ies) any products similar to or
                  directly or
                  indirectly competitive with Enabling Technology obtained from Bally,
                  subject to Sections 3(c) and Sec.
                  15

              

      

       

      
        	c)  	
                The
                  exclusive licenses and rights granted in clause (i) of Section
                  3(a) and
                  3(b) shall become nonexclusive on (i) December 31, 2006, if the
                  Installed
                  Base as of that date is less than ***
                  ERUs, (ii) December 31, 2007, if the Installed Base as of that
                  date is
                  less than ***
                  ERUs, and (iii) December 31, 2008, if the Installed Base as of
                  that date
                  is less than ***
                  ERUs.

              

      

       

      
        	d)  	
                No
                  right is granted hereunder, and Licensee agrees not, to (i) use
                  any
                  Enabling Technology in connection with the development of any games
                  other
                  than Redemption Games, (ii) market or distribute any Redemption
                  Games
                  except as incorporated into an Alpha *** that Spectre procures
                  from Bally
                  directly or indirectly, (iii) market or distribute or permit any
                  of its
                  sublicensees or subdistributors to market or distribute any ERUs
                  that do
                  not include a Redemption Game or for use in any location, business
                  or
                  establishment other than an Establishment, (iv) market or distribute
                  or
                  permit any of its sublicensees or subdistributors to market or
                  distribute
                  any ERUs outside of the Territory, or (v) to market or distribute
                  ERUs or
                  any other Bally Products that include any games other than Redemption
                  Games. Spectre shall not obscure or destroy any branding, logo,
                  trademark
                  or proprietary marking placed by or for Bally on any Bally Cabinets,
                  if
                  any.

              

      

       

      
        	e)  	
                Subject
                  to the approval of the Alliance Gaming Corporation Compliance Committee,
                  Bally grants Spectre an exclusive license to develop Redemption
                  Games
                  based on the Licensed Themes in accordance with any guidelines,
                  instructions, and processes specified in the Enabling Technology
                  or
                  otherwise provided by Bally to Spectre.

              

      

       

      ***.

       

      
        	f)  	
                ***.
                  

              

      

       

      
        
          	g)  	
                  Permits,
                    etc. Notwithstanding
                    any other terms and conditions hereof to the contrary, the obligations
                    of
                    the Parties hereunder are subject to all gaming licenses, permits
                    and
                    other approvals necessary to consummate the transactions contemplated
                    hereunder and to operate ERUs within the Territory. Spectre or
                    Spectre's
                    customers shall, at its or their sole expense, be responsible
                    for
                    obtaining any regulatory approval to operate Authorized Redemption
                    Games
                    within the Territory, and upon request from Bally, Spectre shall
                    provide
                    Bally with all available written documentation from any applicable
                    regulatory entities approving the use of ERUs in the
                    Territory.

                

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

      

      
        	h)  	
                ***.

              

      

       

      
        	i)  	
                Licensed
                  Cashless Gaming Systems and Games. In
                  the event that the Redemption Gaming activities developed and carried
                  on
                  by Spectre utilizing ERUs or Bally Cabinets fall under the definition
                  of
                  licensed cashless gaming systems or licensed cashless games, as
                  those
                  terms are defined in Exhibit G, Spectre agrees to abide by the
                  license
                  requirements set forth in Exhibit G. Bally reserves all rights
                  not
                  expressly granted hereunder.

              

      

       

      4. BALLY
        SERVICES

       

      a)
        Merchandise Fulfillment. Bally
        and
        Spectre shall mutually discuss and negotiate in good faith, future arrangements
        wherein either
        party may provide (1) fulfillment services for merchandise redeemed by users
        of
        Redemption Games in the Territory or (2) collect transaction processing fees
        for
        such Redemption Games ***. 

       

      b)
        Hardware Engineering, Software Development, Maintenance,
        etc.
        ***.

       

      c)
        Transition Services.
        ***.

       

      5. KIOSKS

       

      At
        Spectre’s election, Bally may supply Spectre with Kiosks by sale, lease or other
        means as Bally and Spectre shall agree. Such Kiosks shall be supplied under
        Bally’s then current applicable standard terms and conditions.

       

      6. VIDEO
        LOTTERY TERMINALS AND CONVERSION KITS

       

      
        	a)  	
                Future
                  VLT Market in Texas.
                  During
                  the Term of this Agreement, the parties agree that if the State
                  of Texas,
                  through the Texas Lottery, legalizes the operation of Video Lottery
                  Terminals (“VLTs”), Bally will make VLT’s exclusively available to Spectre
                  under mutually agreed upon pricing consistent with normal and customary
                  practices in other similar markets, and Spectre shall be Bally’s exclusive
                  VLT distributor in Texas except that Bally shall have no obligation
                  to
                  supply Video Lottery Terminals to Spectre under a distribution
                  agreement,
                  if the State of Texas adopts the public VLT distribution and control
                  model, wherein the Texas Lottery purchases or leases the system
                  and
                  devices directly from the manufacturer. In all other situations
                  in the
                  State of Texas, such as the private VLT distribution and control
                  models,
                  whereby a licensed operator is authorized to purchase VLT’s directly from
                  a distributor, Spectre shall have the exclusive rights to purchase
                  Conversion kits from Bally and convert its ERU’s to VLT’s and expand its
                  business as Bally’s exclusive VLT distributor in Texas for all markets in
                  Texas at which Spectre is conducting its redemption business, or
                  would
                  have naturally expanded its redemption business in Texas. Bally
                  will
                  retain the right to select a separate distributor for such other
                  VLT
                  customers in Texas, including but not limited to, race tracks that
                  are not
                  then-being serviced by Spectre. Any such agreement for Spectre’s
                  distribution rights as described in this Section 6(a) shall be
                  set forth
                  in a separate agreement entered into between the parties and subject
                  to
                  all applicable laws and findings of suitability as may be required
                  by the
                  Texas Lottery. 

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	b)  	
                Future
                  VLT Markets in States in the Territory other than
                  Texas. During
                  the Term of this Agreement, if Spectre conducts redemption activities
                  in a
                  state within the Territory and that state’s applicable state lottery
                  authorizes VLTs, Spectre and Bally may enter into a mutually exclusive
                  distribution agreement for VLTs in that particular state. Any other
                  states
                  within the Territory may be mutually agreed upon on a case-by-case
                  basis
                  as Spectre creates redemption opportunities in other states. Both
                  parties
                  acknowledge that if Bally currently has existing business in a
                  state in
                  which Spectre pursues redemption business that this will be a factor
                  in
                  determining whether Spectre is granted a distributorship, however
                  in all
                  states in which Spectre conducts redemption business, Spectre will
                  be
                  given primary but not exclusive consideration to become Bally’s
                  distributor for the VLT market in that state. Any such agreement
                  for
                  Spectre’s distribution rights as described in this Section 6(b) shall be
                  set forth in a separate agreement entered into between the parties
                  and
                  subject to all applicable laws.

              

      

       

      
        	c)  	
                During
                  the Term of this Agreement, Bally agrees that it will be supportive
                  of
                  Spectre efforts in any redemption market in the Territory to converting
                  the market to the private VLT approach, and Bally will not lobby,
                  or
                  directly or indirectly participate in or support efforts for the
                  consideration of a state to follow the public VLT model. However,
                  this
                  provision shall not limit Bally from supporting VLT legislation
                  that may
                  result in a public model but Bally cannot do so at the exclusion
                  of the
                  private model, and shall not require Bally to violate the terms
                  and
                  conditions of any other existing obligations of
                  Bally.

              

      

       

      
        	d)  	
                In
                  the event a state in which Spectre is conducting redemption activities
                  selects the public VLT model and Spectre’s business is materially impacted
                  as a result, Bally will allow Spectre to purchase a Bally Conversion
                  Kit
                  and convert its redemption games within the state to Class III
                  games for
                  sale or use into other legal jurisdictions
                  worldwide.

              

      

       

      
        	e)  	
                Bally
                  may, in the exercise of reasonable discretion, elect to supply
                  Spectre
                  with kits that Spectre may use to convert Redemption Games and
                  Bally
                  Cabinets into Class II or Class III games (as
                  that term is defined in the Indian Gaming Regulatory Act, at 25
                  U.S.C. §
                  2703). If Bally elects to supply such kits, Spectre’s rights with respect
                  thereto and other applicable terms, conditions and restrictions
                  shall be
                  as Bally and Spectre shall mutually agree in
                  writing.

              

      

       

      7. CONSIDERATION

       

      --
        ENABLING TECHNOLOGY CONSIDERATION --

       

      (a)
        Upfront License Fee. Spectre
        shall pay Bally (i) One Million Dollars ($1,000,000) in immediately available
        funds (less any deposits or advances received pursuant to negotiations of
        this
        Agreement) within thirty days of the date of execution of this Agreement,
        and
        (ii) an additional One Million Dollars ($1,000,000) in immediately available
        funds no later than August 15, 2005, or sooner as Spectre’s best efforts may
        cause. In addition, upon execution of this Agreement, Spectre shall deliver
        to
        Bally a Promissory Note in the form attached hereto as Exhibit E. Such unsecured
        Promissory Note shall be in the principal amount of Three Million Dollars
        ($3,000,000) and shall provide for payment of such amount plus accrued interest
        thereunder over the two (2) year period commencing on the Effective Date
        in four
        equal semi-annual installments, with the first installment due six (6) months
        after the Effective Date. 

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

         

      

      (b)
        On-Going Royalty For Authorized Redemption Games.
        ***.

       

      (c)
        ***.
        

       

      --
        OTHER ADDITIONAL OPTIONS--

       

      (d)
        ***.
        

       

      (e)
        Redemption and Fulfillment.“Fulfillment
        Fee” means a reasonable fee, including a reasonable margin for profit, mutually
        agreed-upon by the parties to provide the fulfillment services referenced
        in
        Section 4(a). 

       

      (f)
        Other Services.
        Except
        as otherwise expressly provided herein, the cost of other services provided
        by
        Bally pursuant to Section 3 shall be ***,
        provided that Bally may increase such *** after the first anniversary of
        the
        Effective Date upon sixty (60) days prior written notice to
        Spectre.

       

      (g) Conversion
        Kit.
        The
        price of each Conversion Kit provided hereunder shall be ***
        and may
        be used for converting ERU’s or as offered by Bally on cabinets approved by
        Bally for implementation of such Conversion Kits. The Conversion Kits shall
        consist of glass and computer software and any other components and peripherals,
        shall be purchased separately from Bally unless such components and peripherals
        are otherwise provided by Spectre. 

       

      (h)
        Annual
        System Maintenance. At
        the
        mutual agreement of the parties as to timing, scope of services and cost,
        the
        parties shall negotiate in good faith to reach an agreement on the terms
        and
        conditions of ongoing maintenance provided by Bally of the Enabling Technology.
        

       

      (i)
        Payment Terms.
        Except
        as otherwise provided herein, payment of each invoice shall be due within
        thirty
        (30) days after the Effective Date. Late fees shall accrue with respect to
        any
        amounts not paid when due hereunder at the rate of one and a half percent
        (1.5%)
        per month or, if lower, the highest rate permitted under applicable
        law. Spectre
        shall pay all of Bally’s costs and expenses (including reasonable attorneys'
        fees) to effect collection of any billings or to enforce and preserve Bally’s
        rights under this Section 7(i) and hereby consents to have any payments applied
        first to any outstanding costs and expenses referred to above, then to
        outstanding billings for interest and then to amounts otherwise owed hereunder.
        Spectre shall pay or, at Bally’s option, to reimburse Bally for, any sales, use,
        or other tax, duty or assessment that may become due or owing in connection
        with
        the transactions contemplated under this Agreement, other than taxes based
        on
        Bally’s net income. Spectre shall provide Bally with copies of resale
        certificates or other documents evidencing to the reasonable satisfaction
        of
        Bally any exemption which Spectre claims from any such tax, tariff, duty
        or
        assessment which Bally reasonably determines it would have to pay or collect
        arising out of or related to any of the transactions contemplated under this
        Agreement in the absence of such an exemption.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

         

      

      (j)
        Spectre Financial Condition.
        Spectre
        warrants and represents that it is in good financial condition, solvent and
        able
        to pay its bills when due. Spectre will maintain and employ in connection
        with
        its business under this Agreement such working capital and net worth as may
        be
        required to enable Spectre to carry out and perform all of Spectre’s obligations
        under this Agreement. 

       

      8. ORDERS

       

      
        	a)  	
                Written
                  Orders.
                  All orders for Bally Products, Kiosks or Conversion Kits shall
                  be placed
                  by Spectre's central purchasing point and shall be in writing.
                  All orders
                  shall be for shipment immediately or as soon as product is available.
                  All
                  orders are subject to acceptance by Bally; provided that Bally
                  shall make
                  commercially reasonable efforts to assist Spectre to find alternate
                  sources of supply of cabinets if Bally is unable to accept any
                  order for
                  Bally Products submitted by Spectre for shipment within a reasonable
                  time.
                  Bally shall have five business days from date of receipt of an
                  order, to
                  accept or reject the order, and also to provide an expected delivery
                  date
                  of the order to Spectre. Except to the extent expressly provided
                  herein to
                  the contrary, Spectre may not cancel or change any order after
                  acceptance.
                  Any order not shipped by Bally within thirty days of the expected
                  delivery
                  date shall be subject to a late charge/discount in Spectre’s favor, which
                  shall be a ten percent discount from the invoice total, unless
                  such
                  particular order has been changed, altered or otherwise revised
                  by Spectre
                  after Bally accepts the initial
                  order.

              

      

       

      
        	b)  	
                Controlling
                  Terms.
                  The parties shall agree as to a form of order, invoice, confirmation
                  and
                  acceptance terms and conditions for performance of this Agreement.
                  

              

      

       

      
        	c)  	
                Bally
                  Cancellation.
                  Bally reserves the right to cancel any orders placed by Spectre
                  and
                  accepted by Bally as set forth above, or to refuse or delay shipment
                  thereof or require payment on delivery, and Bally further reserves
                  the
                  right to refuse to accept orders notwithstanding its obligations
                  under
                  this Section 8, if Spectre unreasonably (i) fails to make any payment
                  as
                  provided herein or under the terms of payment set forth in any
                  invoice or
                  otherwise agreed to by Bally and Spectre, (ii) fails to meet reasonable
                  credit or financial requirements established by Bally, including
                  any
                  limitations on allowable credit, or (iii) otherwise fails to comply
                  with
                  the terms and conditions of this Agreement.

              

      

       

      9. SHIPPING 

       

      
        
          	(a)  	
                  Shipment.
                    All Bally Cabinets and Bally Products will be shipped by Bally
                    F.O.B. Las
                    Vegas, Nevada or any other U.S. point of origin as designated
                    by Bally.
                    Bally will select the mode of shipment and the carrier unless
                    otherwise
                    instructed in writing by Spectre. Spectre will pay all shipping
                    costs or,
                    if Bally advances such costs, will reimburse Bally therefor.
                    Spectre will
                    bear all costs of shipping and the risk of loss or damage in
                    transit upon
                    shipment by Bally.

                

        

         

      

      
        	(b)  	
                Partial
                  Delivery.
                  Unless Spectre clearly advises Bally to the contrary in writing,
                  Bally may
                  make partial shipments of Spectre's orders, to be separately invoiced
                  and
                  paid for when due. Delay in delivery of any installment delivery
                  shall not
                  relieve Spectre of its obligation to accept any remaining
                  deliveries.

              

 

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      10. SALES;
        MARKETING; OTHER DUTIES OF SPECTRE

       

      
        
          
            	(a)  	
                    Sales
                      and Marketing Obligations of Spectre. Spectre
                      shall use its best efforts to promote and market the ERUs with
                      Redemption
                      Games in the Territory and to generate sales and respond to
                      inquiries
                      concerning ERUs with Redemption Games originating in the Territory.
                      

                  

          

           

          
            
              
                	(b)  	
                        
                          Other
                            Sales and Marketing Obligations of Spectre
                            In
                            addition to any other actions which are necessary or
                            appropriate to
                            perform its obligations under this Agreement, Spectre
                            agrees specifically
                            to:

                        

                      

              

               

            

          

        

      

      
        	i)  	
                Maintain
                  adequate facilities and trained personnel to develop, support and
                  maintain
                  the Authorized Redemption Game and to distribute, maintain and
                  support the
                  Bally Cabinets.

              

      

       

      
        	ii)  	
                Handle
                  all customer inquiries, quotations, and orders promptly and
                  efficiently.

              

      

       

      
        
          
            	(c)  	
                    
                      Warranty
                        and Support Obligations of Spectre.
                        Spectre shall provide all necessary and appropriate sales,
                        technical,
                        repair, service and warranty support to the customers to
                        whom Spectre
                        distributes ERUs or Bally Cabinets (whether directly or through
                        subdistributors or other intermediaries), in accordance with
                        its warranty
                        obligations and applicable law. Spectre shall be solely responsible
                        for
                        providing support for the ERUs, or Bally Cabinets if applicable,
                        in the
                        Territory to customers who acquire them from Spectre (or
                        any such
                        subdistributor or other intermediary). Without limiting the
                        generality of
                        the foregoing, Spectre
                        shall:

                    

                  

          

           

        

      

      
        	i)  	
                Provide
                  appropriate levels of support and maintenance to purchasers of
                  ERUs or
                  Bally Cabinets in the Territory to assure the satisfactory installation,
                  use and operation of the Bally Cabinets. Terms of providing support
                  and
                  maintenance shall be consistent with Bally’s policies and shall be
                  competitive in terms of price, quality, and availability to the
                  support
                  and maintenance provided with respect to leading competitive products
                  in
                  the Territory.

              

 

      
        	d)  	
                Spectre
                  Restrictions.
                  Except as expressly set forth herein to the contrary, Spectre will
                  not:

              

      

       

      
        	i)  	
                Reverse
                  engineer, disassemble, decompile, copy, modify, or otherwise change
                  any
                  Bally Cabinet or Enabling Technology, in whole or in part, nor
                  assist in
                  any way, directly or indirectly, in any effort to do so. Spectre
                  shall
                  receive only that source code necessary to create games, necessary
                  interfaces, and related system modules from the Enabling Technology,
                  and
                  under no circumstances have any right to receive source code for
                  any
                  software included in any Bally
                  Cabinet.

              

      

       

      
        	ii)  	
                Materially
                  alter or modify any Bally Cabinet or Enabling
                  Technology.

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        	iii)  	
                Sell,
                  lease or otherwise distribute any Cabinet, except in accordance
                  with any
                  terms of sale, lease or other transfer reasonably required by
                  Bally.

              

      

       

      
        	iv)  	
                Make
                  any representation, guarantee or warranty regarding the performance
                  or
                  functional characteristics of the Bally Products inconsistent with
                  or
                  beyond those expressly contained in Bally's printed literature.
                  

              

      

       

      
        	v)  	
                Disclose
                  the terms of this Agreement to any third party, except as required
                  by
                  applicable law (including applicable securities laws) or with,
                  and only to
                  the extent permitted by, the express prior written approval of
                  Bally.
                  Whenever possible, prior to making any disclosure required by any
                  governmental agency in connection with this Agreement, Spectre
                  shall
                  advise Bally of the proposed disclosure, and may allow Bally to
                  contribute
                  suggestions concerning the text of the draft, as it applies to
                  representations concerning Bally. Nothing in this Agreement shall
                  prohibit
                  disclosure to Spectre’s legal, financial or business advisors who agree to
                  maintain the confidentiality of the terms of this Agreement. Bally
                  understands that Spectre is a public reporting company and files
                  periodic
                  disclosure reports with the United States Securities and Exchange
                  Commission, and that this Agreement will need to be filed with
                  such
                  commission by Spectre in one or more of its periodic reports.
                  Nothing in this Agreement shall prohibit disclosure to Spectre’s legal,
                  financial or business advisors who agree to maintain the confidentiality
                  of the terms of this Agreement.

              

      

       

      
        	vi)  	
                Must
                  purchase and use Alpha *** for every ERU or Bally Cabinet, if applicable,
                  use, produced, distributed, sold or otherwise placed by Spectre
                  under this
                  Agreement.

              

      

       

      
        	e)  	
                Expenses
                  and Reimbursement.
                  Except as otherwise provided, it is expressly understood and agreed
                  that
                  Bally is under no obligation to reimburse Spectre for any expenses
                  or
                  costs incurred by Spectre in the performance of any of its
                  responsibilities under this Agreement, whether or not Spectre is
                  obligated
                  hereunder to incur such costs or expenses. Any costs or expenses
                  incurred
                  by Spectre shall be at Spectre’s sole
                  risk.

              

      

       

      
        	f)  	
                Ethical/Legal
                  Requirements. Spectre
                  shall, at all times during the term of this Agreement, conduct
                  its
                  business in a professional and ethical manner in accordance with
                  and
                  subject to the laws and regulations in effect in the Territory,
                  at all
                  times refraining from any illegal, unfair, or deceptive trade practices,
                  or unethical business practices of whatever form, or any type of
                  practice
                  which could reflect unfavorably on Bally’s Trademarks (as defined below)
                  and/or products. 

              

      

       

      11.
        WARRANTY

       

      
        
          
            	(a)  	
                    
                      Scope.
                        In
                        the event Bally provides Bally Cabinets or Alpha *** to Spectre,
                        Bally
                        warrants that each Bally Cabinet supplied hereunder shall
                        be free of
                        defects in materials and workmanship for a period of ninety
                        (90) days from
                        shipment thereof. This warranty for Bally Cabinets or Alpha
                        *** shall not
                        be extended in any manner to any third party fabrications
                        or construction
                        of any ERUs. Minor deviations from any specifications or
                        standards that do
                        not materially affect the performance of the Bally Cabinets,
                        or Alpha ***
                        and Enabling Technology shall not be considered to be defects
                        in materials
                        or workmanship. All component parts provided Bally, regardless
                        of
                        manufacturer, are included in this warranty. This warranty
                        shall be void
                        with respect to any Bally Cabinet that is not operated and
                        maintained in
                        accordance with the Bally product literature and
                        manuals.

                    

                  

          

           

        

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        
          
            	(b)   	
                    
                      
                        Exclusive
                          Remedy. If
                          Spectre reports any breach of the foregoing warranty to
                          Bally during the
                          warranty period for such Bally Cabinet or Alpha ***, Spectre
                          shall ship
                          such Bally Cabinet or Alpha *** to Bally at Spectre’s expense. Spectre
                          shall bear the risk of loss or damage in transit to Bally.
                          Bally shall
                          inspect and test such Bally Cabinet or Alpha *** and, if
                          it is able to
                          confirm the defect reported by Spectre, Bally shall make
                          commercially
                          reasonable efforts to repair or replace the defective Bally
                          Cabinet. If
                          Bally confirmed the defect, it shall ship the Bally Cabinet
                          or Alpha ***
                          back to Spectre or its customer at Bally’s sole expense, Bally shall
                          reimburse Spectre for the original return shipping costs,
                          and Bally shall
                          bear any risk of loss or damage in transit to Spectre or
                          its customer. If
                          Bally does not confirm the defect, it shall ship the Bally
                          Cabinet or
                          Alpha *** back to Spectre or its customer at Spectre’s sole expense, and
                          Spectre shall bear any risk of loss or damage in transit
                          to Spectre or its
                          customer. The
                          foregoing sets forth Bally’s sole liability and Spectre’s sole and
                          exclusive remedy for any breach of any warranty by Bally
                          hereunder.

                      

                    

                  

          

           

        

      

      
        	(c)  	
                Warranty
                  of Enabling Technology. Bally
                  hereby represents and warrants to Spectre that Bally (1) is the
                  lawful
                  owner of the Enabling Technology and its underlying intellectual-property
                  rights, (2) will enforce and maintain such rights to the Enabling
                  Technology in full force and effect at all times during the Term
                  hereof,
                  and (3) it has the right to grant Spectre the license rights as
                  provided
                  herein. Bally further represents and warrants to Spectre that (i)
                  there is
                  no claim, litigation or proceeding pending or threatened against
                  Bally
                  with respect to the Enabling Technology or any component thereof,
                  alleging
                  infringement of any third party’s intellectual property rights, (ii)
                  neither the performance of Bally’s obligations hereunder (or any other
                  term or provision hereof) will in any way infringe or otherwise
                  violate
                  any third party’s intellectual property rights or a non-disclosure
                  obligation by which Bally is bound.

              

      

       

      
        	(d)  	
                Disclaimer.
                  Except to the extent expressly provided in this Section 11, Bally
                  makes no
                  warranties hereunder of any type or nature. Without limiting the
                  generality of the foregoing, Bally disclaims all implied warranties,
                  including without limitation any warranty of merchantability, fitness
                  for
                  a particular purpose, title or non-infringement, as well as any
                  warranty
                  that might otherwise arise from the course of dealing between the
                  parties
                  or usage of trade.

              

      

       

      12.
        TERM OF AGREEMENT AND TERMINATION

       

      
        	a.  	
                Agreement
                  Term.
                  The Term of this Agreement (the “Term”) shall commence on the Effective
                  Date and shall continue for five (5) years plus the Term Extension,
                  if
                  any, unless sooner terminated as provided hereunder. The Term Extension
                  shall be one (1) year multiplied by the number of the following
                  three (3)
                  Installed Base targets that Spectre satisfies: (i) Installed Base
                  target 1
                  is ***
                  ERUs as of December 31, 2007, (ii) Installed Base target 2 is ***
                  ERUs as of December 31, 2008, and (iii) Installed Base target 3
                  is
                  ***
                  ERUs as of December 31, 2009. Accordingly, the maximum length of
                  the term
                  of this Agreement shall be Eight (8)
                  years.

              

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	b.  	
                Termination
                  for Cause.
                  This Agreement may be terminated at any time (i) by either party
                  upon
                  written notice to the other party in the event of such other party's
                  failure to perform any provision of this Agreement, provided such
                  failure
                  to perform has continued for not less than thirty (30) days after
                  written
                  notice of such failure, (ii) by Bally as provided in Section 16.
                  Additionally, Bally may terminate this Agreement, effective upon
                  written
                  notice of termination, upon Spectre’s inability to pay after a thirty day
                  notice and cure period, for any Bally Products which have been
                  delivered
                  or to pay any other fees in a timely manner when due. In the event
                  of the
                  appointment of a trustee or receiver or the equivalent for either
                  party,
                  or upon the institution of voluntary proceedings relating to either
                  party’s dissolution, liquidation, winding up, bankruptcy, insolvency
                  or
                  relief from creditors, if such proceedings are not terminated or
                  discharged within ninety (90) calendar days of their inception,
                  the other
                  party may terminate this Agreement, upon written notice of termination.
                  

              

      

       

      
        	c.  	
                Effect
                  of Termination for Cause by either party or Termination upon
                  Expiration.
                  Upon termination of this Agreement by either party for Cause, or
                  upon the
                  expiration of this Agreement, with the exception of termination
                  of this
                  Agreement due to a decision of the Alliance Gaming Corporation
                  Compliance
                  Committee in which instance the effect of termination of this Agreement
                  shall be determined pursuant to Section 16, the following events
                  shall
                  occur.

              

      

       

      
        	1.  	
                Spectre
                  shall cease all marketing or promotion of any Bally Cabinets, Licensed
                  Themes and Licensed Theme Materials.

              

      

       

      
        	2.  	
                Spectre
                  shall have no further right to purchase Bally Cabinets or Alpha
                  ***.

              

      

       

      
        	3.  	
                Spectre
                  shall retain the right to maintain and use the license granted
                  in this
                  Agreement for the Enabling Technology for one year following termination
                  of this Agreement, however this license right shall be limited
                  to those
                  ERUs, Bally Cabinets or Alpha *** then in Spectre’s inventory or
                  previously distributed into use. Further, Spectre shall satisfy
                  any
                  ongoing or continued payment obligation owed to Bally related to
                  Spectre’s
                  continued use of the Enabling Technology in accordance with this
                  Agreement
                  during this one year period, including the on-going royalty provisions
                  of
                  Section 7(b) of this Agreement. 

              

      

       

      
        	4.  	
                Upon
                  expiration of the one year period described in Section 12(c)(3)
                  above, any
                  further use by Spectre of any Enabling Technology, , including
                  Alpha ***,
                  Licensed Themes, Licensed Theme Materials, or other technology,
                  materials,
                  or Confidential Information provided by Bally to Spectre, shall
                  immediately cease and Spectre shall, at its expense immediately
                  (1) return
                  to Bally all copies of Enabling Technology, including all Alpha
                  *** placed
                  for use in the Territory by Spectre, or other technology, materials,
                  or
                  Confidential Information provided by Bally to Spectre in its possession
                  or
                  under its control, or alternatively provide satisfactory proof
                  to Bally
                  that all copies of Enabling Technology and all Alpha ***, along
                  with other
                  technology have been removed from the Territory and are no longer
                  in use
                  in the Territory, and will retain no interest in or possession
                  of any of
                  the foregoing, with the exception of the Alpha *** and (2) deliver
                  to
                  Bally a statement executed by an officer of Spectre certifying
                  that
                  Spectre has complied with all of its obligations under this Section
                  12(c).
                  

              

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	5.  	
                Bally
                  shall return all confidential information and materials of Spectre
                  in
                  Bally’s possession to Spectre.

              

      

       

      
        	d.  	
                No
                  Liability.
                  In
                  no event will either party be liable to the other for any additional
                  compensation or other payment on account of termination of this
                  Agreement
                  for any reason provided that the Agreement terminates in accordance
                  with
                  the terms hereof. Termination of this Agreement, however, shall
                  not
                  relieve the parties of any obligations accrued prior to termination.
                  Each
                  party acknowledges and agrees that it will not be entitled to any
                  compensation, damages, or payments in respect of goodwill that
                  has been
                  established or for any damages on account of prospective profits
                  or
                  anticipated sales, and that each party shall not be entitled to
                  reimbursement in any amount for any training, advertising, market
                  development, technology development, investments, leases, or other
                  costs
                  that shall have been incurred by either party before the termination
                  of
                  this Agreement. Each party hereby waives its rights, if any, under
                  applicable laws for any such compensation, damages or
                  payments.

              

      

       

      
        	e.  	
                Survival.
                  Sections 13, 14, 15, 16 and 17, inclusive, shall survive any termination
                  or expiration of this Agreement and shall remain fully enforceable
                  thereafter in perpetuity, except that Bally's indemnity obligations
                  shall
                  only apply with respect to claims relating solely to the use of
                  the
                  Enabling Technology and the distribution of Bally Cabinets under
                  this
                  Agreement. Further, Spectre's obligations under Section 10(c) shall
                  continue for two (2) years after any termination or expiration
                  of this
                  Agreement, but solely with respect to persons or entities that
                  obtained
                  Bally Cabinets or rights to use Bally Cabinets directly or indirectly
                  from
                  Spectre during the term of this Agreement.

              

      

       

      13.
        INTELLECTUAL PROPERTY

       

      
        
          
            
              	(a)  	
                      Copyrights,
                        Patents, Trade Secrets,
                        Etc.

                    

            

             

          

        

      

      
        	i.  	
                As
                  between Spectre or any affiliate thereof and Bally, Bally shall
                  own all
                  Intellectual Property Rights (including, without limitation, Trademarks,
                  as defined below) in or relating to any Bally Product or other
                  Bally
                  technology or Bally information supplied by Bally hereunder and
                  any aspect
                  of any Bally Product or Bally technology incorporated in any derivative
                  works based to any extent on any of the foregoing, and any work
                  product
                  created by Bally in providing services hereunder. Spectre for itself
                  and
                  its affiliates, employees and agents hereby waives any ownership
                  or other
                  proprietary interest or intellectual property right in any of the
                  foregoing, which Spectre intends to remain always with Bally or
                  its
                  licensors. Spectre for itself and its affiliates, employees and
                  agents
                  hereby assigns and transfers all such rights to Bally, and agrees
                  that it
                  will promptly execute and deliver any document requested by Bally
                  to fully
                  effect, perfect and evidence such assignment to, or vesting of
                  rights in,
                  Bally.

              

      

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      
        	ii.  	
                Each
                  party shall promptly notify the other of any and all confirmed
                  or
                  potential infringement, imitation, misappropriation, illegal use
                  or misuse
                  by any person of any Confidential Information or of any Intellectual
                  Property Right in or relating to intellectual property of that
                  party which
                  comes to its attention; provided, however, that neither party will
                  not
                  take any legal action relating to the protection of any Confidential
                  Information or any such Intellectual Property Rights without the
                  prior
                  written approval of the other party (which party may grant or withhold
                  in
                  the exercise of its sole and absolute discretion); and provided
                  further
                  that the other party shall use its best efforts to provide any
                  support or
                  assistance or take other actions approved by infringed party to
                  protect
                  and defend the infringed party’s Confidential Information and Intellectual
                  Property Rights in the Territory.

              

      

       

      In
        the
        event of any infringement or other illegal use by a third-party of any
        Confidential Information, Intellectual Property or the Enabling Technology,
        Bally shall have the sole right, exercisable in its absolute and sole
        discretion, to defend or prosecute any infringement or illegal use claim.
        All
        fees, costs and expenses for such defense or prosecution shall be the burden
        of
        Bally, and Bally shall retain any award for any such claim. 

      

      
        	iii.  	
                During
                  the term of this Agreement, each party may disclose Confidential
                  Information to the other solely to permit the other party to perform
                  its
                  obligations under this Agreement. Each party shall refrain from
                  using or
                  exploiting any Confidential Information for any purposes or activities
                  other than those specifically authorized by the other party in
                  this
                  Agreement. All files, lists, records, documents, notes, drawings,
                  specifications, equipment, computer programs and other materials
                  that
                  incorporate or refer to all or a portion of the Confidential Information
                  shall remain the sole property of the disclosing party. Such materials
                  shall be promptly returned to the disclosing party: (1) upon the
                  disclosing party’s request or (2) upon termination of this Agreement,
                  whichever is earlier. Neither party shall disclose the Confidential
                  Information to any individual or entity not employed or controlled
                  by or
                  under contract to the other party, and may only provide the Confidential
                  Information to such individuals or entities on a need-to-know basis
                  and
                  only if such individuals or entities have agreed in writing to
                  refrain
                  from using or disclosing the Confidential Information except as
                  permitted
                  hereunder pursuant to a form of nondisclosure agreement approved
                  in form
                  and substance by the disclosing party. A party may disclose Confidential
                  Information to the extent required by any statutory or regulatory
                  provision or court order, provided that prior to any such disclosure,
                  that
                  party shall provide the other with a proposed draft of the disclosure,
                  shall reasonably cooperate with the party in any efforts to obtain
                  protective orders or otherwise protect the confidentiality of such
                  Confidential Information, and shall make such disclosure only after
                  receiving that party's consent, which shall not be unreasonably
                  withheld.
                  

              

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      
        
          	(b)  	
                  Trademarks.

                

        

         

      

      
        	iv.  	
                "Trademark"
                  means any trade name, trademark, service mark, trade dress, logo
                  or other
                  designation of source, origin, sponsorship, endorsement or certification
                  used, licensed or owned by Bally and any confusingly similar designation
                  or mark.

              

      

       

      
        	v.  	
                Spectre
                  agrees to use the Trademarks (as defined above) solely for the
                  purpose of
                  identifying Bally as the source of the Bally Cabinets or of any
                  related
                  services provided by Bally. All uses of any Trademark, whether
                  on Bally
                  Cabinets, any advertising or promotional materials relating thereto,
                  or
                  otherwise, shall be subject to Bally’s prior written approval. Spectre
                  shall market, promote and advertise the Bally Products and related
                  services under the Trademarks and Spectre’s trademark and under no other
                  trademark, service mark, logo, trade name, or other designation
                  of source,
                  origin, sponsorship, endorsement or certification.
                  

              

      

       

      
        	vi.  	
                Spectre's
                  use of the Trademarks shall be in accordance with applicable laws
                  and any
                  policies regarding advertising and trademark usage supplied by
                  Bally, as
                  established and amended from time to
                  time.

              

      

       

      
        	vii.  	
                Spectre
                  shall not register or attempt to file any trademark or similar
                  application
                  with respect to any Trademark (or similar marks) of Bally with
                  any agency
                  or association anywhere in the world, and shall, at the request
                  of Bally,
                  assign or otherwise transfer the ownership and ancillary rights
                  to such
                  applications to Bally or any person designated by Bally. Spectre
                  agrees
                  that the Trademarks are and will remain the sole property of Bally,
                  and
                  agrees not to do anything inconsistent with that ownership or to
                  contest
                  ownership of the Trademarks. Spectre agrees always to identify
                  the
                  Trademarks as being the property of Bally. Spectre agrees that
                  all use of
                  the Trademarks by Spectre or its sublicensees or contractors will
                  inure to
                  the sole benefit of, and be on behalf of,
                  Bally.

              

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      
        	viii.  	
                Spectre
                  agrees to notify Bally promptly of any unauthorized use of any
                  Trademarks
                  by others.

              

      

       

      
        	ix.  	
                Spectre
                  agrees that any system or service provided, marketed or distributed
                  by
                  Spectre bundled with or which contains the Bally Cabinets and displays
                  the
                  Trademarks must conform to Bally's quality standards, and Spectre
                  agrees
                  to cooperate with Bally in monitoring the nature and quality of
                  such
                  systems and services.

              

      

       

      
        	x.  	
                Publicity.
                  Each party agrees that it shall be required to obtain the written
                  approval
                  of the other party prior to that party issuing any press releases,
                  public
                  statement, or other publicly disclosed media information related
                  to this
                  Agreement and the other party, including but not limited to any
                  uses of
                  the other party’s Trademarks or other proprietary branding property in
                  such media releases. Each party shall provide the other with a
                  copy of the
                  proposed media release(s) for review, as a condition of that party
                  granting approval of the proposed media release.
                  

              

      

       

       

      14.
        INDEMNIFICATION; INSURANCE

       

      (a)
        Bally Indemnity.
        Subject
        to the limitations set forth in this Agreement, Bally will, and Spectre agrees
        to allow Bally to, defend, at its own expense, any claim, suit or proceeding
        brought against Spectre to the extent it is based upon a claim that the Enabling
        Technology and the Bally Cabinets infringe any patent, trademark, copyright
        or
        trade secret of any third party. Spectre agrees that it shall promptly notify
        Bally in writing of any such claim or action and give Bally full information
        and
        assistance in connection therewith. Bally will pay all damages, costs and
        expenses finally awarded from a court of competent jurisdiction from which
        no
        appeal lies to third parties against Spectre in such action or any settlement
        of
        such claims made by Bally. Bally shall have the exclusive right to settle
        or
        compromise any such claim or action, subject to Spectre’s consent which shall
        not be unreasonably withheld. If Spectre itself settles or purports to settle
        any such claim or action, then, without limiting Bally’s other rights or
        remedies, Bally shall have no obligations whatsoever under this Section 14.
        If a
        Bally Product is, or in Bally's opinion might be, held to infringe as set
        forth
        above, Bally may, at its option, replace or modify such Bally Product so
        as to
        avoid infringement, in which event Spectre will cease all further use or
        distribution of the replaced version of the Bally Product, or procure the
        right
        for Spectre to continue to exploit the Bally Product as provided herein.
        

       

      (b)
        Limitations.
        Bally
        will not have any liability for any claim of infringement arising as a result
        of
        use of the Bally Products in combination with any items not supplied by Bally,
        any modification of the Bally Products by Spectre or third parties if the
        Bally
        Products would not have been infringing but for such modifications, or the
        use
        of other than the most recent release of the Bally Products provided by Bally
        to
        Spectre, if such claim would have been avoided by the use of the most recent
        release.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      (c)
        Entire Liability. The
        foregoing states the entire liability of Bally concerning infringement or
        misappropriation of any Intellectual Property Right, including without
        limitation any U.S. or other patent, trademark, copyright, or trade
        secret.

       

      (d)
        Spectre Indemnity.
        Spectre
        agrees to indemnify and hold Bally harmless from and against any claims,
        damages, expenses or costs arising as a result of the use of or otherwise
        in
        connection with the Bally Products or any distribution or other exploitation
        of
        the foregoing by Spectre or any of its subdistributors, dealers or other
        contractors or other exercise by any of the foregoing of any rights under
        this
        Agreement; provided that the foregoing indemnity shall not apply to any claims,
        damages, expenses or costs based solely on or arising solely as a result
        claims
        of infringement that are subject to indemnification under Section
        14(a).

       

      (e)
        Insurance.
        Each
        party agrees that it will obtain and maintain during the Term at its own
        expense, general liability insurance (including coverage for product liability)
        from a recognized and qualified insurance company naming the other as additional
        insured in the amount of at least Two Million Dollars ($2,000,000.00) per
        occurrence against any claims, suits, losses or damages, including attorneys'
        fees, arising out of any alleged defects in the Bally Cabinets or the
        manufacture, marketing, distribution, sale or use of the Bally Cabinets.
        Such
        policy shall be non-cancelable except after thirty (30) days' prior written
        notice to the other party. As proof of such insurance, a fully paid certificate
        of insurance will be submitted to the other party for its prior written approval
        before any Bally Cabinet is distributed or sold, and at the latest within
        thirty
        (30) days after the Effective Date.

       

      15.
        LIMITATION OF LIABILITY

       

      (a)
        In no event shall either party be liable for any incidental, special, indirect,
        punitive, exemplary or consequential damages of whatever nature arising out
        of
        or in connection with this Agreement, even if such party has been notified
        of
        the possibility of such damages, and (ii) in no event shall Bally’s liability
        arising out of or relating to this Agreement, whether arising under contract,
        tort or any other theory of liability, exceed the amounts actually paid by
        Spectre to Bally under this Agreement during the one hundred eighty (180)
        day
        period immediately before such liability first accrues. Nothing in this Section
        15(a) or otherwise in this Agreement shall limit or exclude any liability
        or
        remedy for any infringement or misappropriation of any Intellectual Property
        Rights.

       

      (b)
        The
        parties acknowledge
        and agree that the provisions hereof that limit liability, disclaim warranties
        or exclude consequential damages or other damages or remedies are essential
        terms of this Agreement that are fundamental to the parties' understanding
        regarding allocation of risk. Accordingly, such provisions shall be severable
        and independent of any other provisions and shall be fully enforced regardless
        of any breach or other occurrence hereunder. Without limiting the generality
        of
        the foregoing, the
        parties agree that all limitations of liability, disclaimers of warranties
        and
        exclusions of consequential damages or other damages or remedies shall remain
        fully valid, effective and enforceable in accordance with their respective
        terms, even under circumstances that cause any exclusive remedy under this
        Agreement to fail of its essential purpose.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      16. COMPLIANCE
        WITH LAWS

       

      (a)
        Contingency.
        This
        Agreement is contingent on any necessary initial and continued approvals
        and
        licenses from any regulatory authorities having jurisdiction over the Parties
        or
        the subject matter of this Agreement. Each Party shall promptly apply to
        the
        appropriate regulatory authorities for any licenses and approvals necessary
        for
        that Party to perform under this Agreement, shall diligently pursue its
        applications and pay all associated costs and fees, and shall otherwise
        cooperate with any requests, inquiries, or investigations of any regulatory
        authorities or law enforcement agencies in connection with Spectre, Bally
        or
        their affiliates, or this Agreement. If any material license or approval
        necessary for either Party to perform under this Agreement is denied, suspended,
        or revoked, this Agreement shall be void effective the date of the denial,
        suspension, or revocation for the portion of the Territory affected, provided,
        however, that if the denial, suspension, or revocation affects performance
        of
        the Agreement in part only, the Parties may by mutual agreement continue
        to
        perform under this Agreement to the extent it is unaffected by the denial,
        suspension, or revocation.

       

      (b)
        Alliance Compliance Program. Spectre
        acknowledges that Alliance Gaming Corporation (Bally's parent company), as
        a
        company operating under privileged licenses in a highly regulated industry,
        maintains the "Alliance Compliance Program" as part of a compliance program
        to
        protect and preserve the name, reputation, integrity, and good will of Alliance
        Gaming Corporation (“Alliance”) and its subsidiaries and affiliates (including
        Bally) through a thorough review and determination of the integrity and fitness,
        both initially and thereafter, of any person or company that performs work
        for
        those companies or with which those companies are otherwise associated, and
        to
        monitor compliance with the requirements established by gaming regulatory
        authorities in various jurisdictions around the world. This Agreement and
        Bally's association with Spectre or Spectre's Customers are contingent on
        the
        continued approval under the Alliance Compliance Program and its compliance
        committee (the "Compliance Committee"). Spectre shall cooperate with Alliance
        and the Compliance Committee as requested by Alliance or the Committee and
        provide the Committee with such information as it may request. If Alliance,
        acting on the reasonable recommendation of the Compliance Committee, withdraws
        its approval of this Agreement or Spectre for reasons reasonably related
        to
        Spectre's suitability, then this Agreement shall be void and neither Party
        shall
        have any rights hereunder, with the exception of Spectre’s applicable
        termination rights set forth in Section 16(d) below. In addition, Spectre
        shall
        promptly provide Bally with all information reasonably requested by the
        Compliance Committee of Bally with respect to Spectre's (including Spectre's
        officers', directors' and controlling shareholders') financial condition,
        litigation, indictments, criminal proceedings, and the like, in which they
        are
        or may have been involved, if any, in order for the Compliance Committee
        to
        determine that no such information would disclose any fact which would
        jeopardize, in any manner, any gaming licenses or permits held by Bally or
        its
        affiliates with any gaming commission, board or similar regulatory agency.
        It
        shall be cause for early termination under Section 12(b) if Alliance Gaming
        Corporation or the Compliance Committee obtains from any source information
        with
        respect to Spectre or this Agreement that would, in the reasonable opinion
        of
        Alliance or the Committee or both, jeopardize the gaming licenses, permits,
        or
        status of Alliance or any of its subsidiaries or affiliates (including Spectre),
        with any gaming commission, board, or similar regulatory or law enforcement
        authority, however Spectre’s rights on such termination shall be determined
        under Section 16(d), below. Alliance shall be a third party beneficiary of
        Spectre’s obligations under this Section 16.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

         

      

      (c)
        During
        the term of this Agreement, upon approval by the Compliance Committee, at
        its
        sole discretion, of Bally’s sale of Bally Cabinets and Licensed Themes to
        Spectre, the parties shall negotiate any required supplemental provisions
        to
        this Agreement to govern such transactions. Bally shall grant Spectre exclusive
        rights to purchase Bally Cabinets and Licensed Themes for the redemption
        markets
        described herein. The Compliance Committee shall have no obligation to grant
        such approval and any information provided to the Compliance Committee shall
        be
        provided by Spectre.

       

      (d)
        On
        termination of this Agreement pursuant to this Section 16, Spectre shall
        have
        the right to the following:

       

      (i)
        To
        the extent permitted by law, a continued license to the Enabling Technology
        for
        what would have been the then-remaining Term of this Agreement as of the
        date of
        termination, unless such termination is related to Spectre’s suitability, in
        which instance Spectre shall only retain the rights to the license for the
        Enabling Technology in ERU then-placed by Spectre in the Territory.

       

      (ii)
        To
        the extent permitted by law, a continued right to purchase Bally Alpha ***
        from
        a third-party vendor approved by Bally for the then-remaining Term of this
        Agreement as of the date of termination, unless such termination is related
        to
        Spectre’s suitability, in which instance Spectre shall not be permitted to
        continue to purchase Bally Alpha ***. 

       

      17.
        NON-SOLICITATION

       

      Neither
        party shall hire, solicit or employ any person who, at the time or within
        one
        (1) year prior to such hiring, solicitation or employment, was employed or
        engaged by the other.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      18.
        GENERAL PROVISIONS

       

      a. Independent
        Contractors.
        Spectre
        is an independent contractor under this Agreement, and nothing herein shall
        be
        construed to create a partnership, joint venture or agency relationship between
        the parties hereto. Neither party shall have authority to enter into agreements
        of any kind on behalf of the other or otherwise to bind or obligate the other
        to
        any third party in any manner whatsoever.

       

      b.
        Notices.
        All
        notices hereunder shall be in writing and shall be deemed to have been given
        or
        made when (i) delivered by hand; (ii) delivered by facsimile or overnight
        delivery service; or (iii) delivered or mailed by registered or certified
        mail,
        postage prepaid, addressed as follows, until notice of another address and/or
        facsimile number shall have been received by the other Party.

       

      If
        to
        Bally: 

      Bally
        Gaming, Inc.

      ATTN:
        General Counsel

      6601
        South Bermuda Road

      Las
        Vegas, NV 89119

      Telephone:
        (702) 896-7700 

      Facsimile
        No.: (702) 896-7990

       

      If
        to
        Spectre: 

      Spectre
        Gaming, Inc. 

      Attn:
        Russell Mix

      1466
        Pioneer Way #10 

      El
        Cajon,
        CA 92020 

      Telephone:
        (619) 440-6183

      Facsimile
        No.: (619) 440-6231

      

      c. Governing
        Law.
        This
        Agreement shall be construed and enforced in accordance with the internal
        laws
        of the state of Nevada applicable to contracts entered into and wholly performed
        in Nevada by residents thereof. Any
        action or proceeding brought by either party against the other under or relating
        to this Agreement or the Bally Products shall be brought in a state or federal
        court of competent jurisdiction located in Nevada, and each party hereto
        hereby
        submits to the personal jurisdiction of, and consents to venue in, such courts
        for purposes of any such action or proceeding. Notwithstanding the foregoing,
        either party may bring an administrative or other non-judicial claim or action
        before an appropriate agency or non-judicial tribunal, wherever
        located.

       

      d.
         Entire
        Agreement.
        This
        Agreement, including the Exhibits hereto, constitutes the entire agreement
        between the parties relating to the subject matter hereof and supersedes
        any
        prior or contemporaneous oral or written communication relating to the subject
        matter hereof. 

       

      e. Amendments.
        No
        purported amendment to this Agreement shall be valid or enforceable unless
        it is
        in writing and signed by an authorized representative of each of the parties
        hereto.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

         

      

      f. No
        Waiver.
        To the
        maximum extent permitted by applicable law, the failure of either party to
        require performance of any provision hereof will not affect in any way the
        right
        to require such performance at any time thereafter, nor will the waiver by
        either party of a breach of any provision of this Agreement be construed
        as a
        waiver of any future breach, nor will any waiver be deemed effective unless
        it
        is in a writing signed by the party charged therewith. 

       

      g. Severability.
        If any
        term, covenant or condition of this Agreement is held to be invalid or
        unenforceable for any reason, the remainder of this Agreement will continue
        in
        full force and effect as if this Agreement has been executed without the
        invalidated provision. In addition, the parties agree to substitute for the
        invalidated provision a valid provision that most closely approximates the
        intent and economic effect of the invalidated provision. 

       

      h. Assignment. Except
        as
        expressly provided above, neither party shall transfer this Agreement or
        any of
        its rights, obligations or duties of performance hereunder by assignment,
        sublicense, delegation or any other means, and any purported transfer in
        violation of this Section 18(h) shall be null and void and of no force and
        effect.

       

      i. Headings.
        Section
        headings in this Agreement are solely for convenience and will not be considered
        in its interpretation.

       

      j. Force
        Majeure.
        Each
        Party shall have no liability hereunder for any failure to perform its
        obligations hereunder to the extent such failure is caused by any factor
        beyond
        that Party’s reasonable control, including, without limitation: acts of God;
        fire; casualty; government codes, ordinances, laws, rules, regulations or
        restrictions; war or civil disorder; act or decision of a governmental
        authority; injunction; technical difficulties; failure of satellite
        communications or electrical or telephone power transmission lines or
        facilities; strike or labor dispute; or any other cause beyond the control
        of
        either Party or its contractors, sub-contractors, representatives and agents.
        

       

      k. Counterparts.
        This
        Agreement may be executed in two or more counterparts, each of which shall
        be
        deemed an original and all of which, taken together, shall constitute one
        and
        the same instrument. Any such counterpart may be executed by facsimile signature
        with only verbal confirmation, and when so executed and delivered shall be
        deemed an original and such counterpart(s) together shall constitute only
        one
        original.

       

      19. CHANGE
        OF CONTROL IN SPECTRE. 

       

      a)
        Change of control of Spectre, Notice.
        Spectre
        is required to provide Bally with written notice of a Change of Control of
        Spectre within 24 hrs of the occurrence of a Change of Control, which notice
        shall disclose the identity of the party obtaining a Controlling Interest
        in
        Spectre. Bally may, in a written notice given not later than 30 calendar
        days
        after receiving the Change
        of
        Control
        notice
        from Spectre, terminate this Agreement.
        

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        the
        parties to this Agreement have executed this Agreement as of the date first
        set
        forth above.

       

      
        	Bally : Bally Gaming
                Inc. 	 	 	Spectre: Spectre Gaming,
                Inc. 
	 	 	 	 
	 	 	 	 
	by:
                /s/ Paul Lofgren	 	 	by:
                /s/ Russell Mix
	
              	 	 	
              
	name: Paul
                Lofgren 	 	 	Name: 
                Russell Mix
	 	 	 	 
	 	 	 	 
	
                title:

              	 	 	
                Title:
                  Chief Executive Officer

              
	 	 	 	 
	Address: 	 	 	Address: 
	 	 	 	 
	Tel: 	 	 	Tel: 
	 	 	 	 
	Fax: 	 	 	
                Fax:

              

      

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

       

      Licensed
        Bally Games

       

      

       

      ***

       

      

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        B

       

      Enabling
        Technology

      

      

      ***

      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        C

       

      Pricing
        Schedule

      
        	 	 	 	 	 	 	 
	 	 	
                Cabinet
                  

              	 	
                Alpha
                  ***

              	 	
                License

              
	
                Price
                  without Licensed Theme

              	 	
                N/A

              	 	
                $***

              	 	
                N/A

              
	
                Price
                  with Licensed Theme

              	 	
                $***
                  (1)

              	 	
                $***
                  (2)

              	 	
                Included
                  in Alpha *** or Cabinet

              
	 	 	 	 	 	 	 

      

       

      Notes:
        

       

      
        	1.  	
                The
                  Cabinets may be cost reduced by removing components such as printers
                  and
                  Bill acceptors and those cost reductions will be passed on to Spectre.
                  Additionally, the first ***
                  units are reduced by $***.
                  Price includes one license to a standard Bally
                  theme

              

      

       

      
        	2.  	
                Price
                  includes one license to a standard Bally
                  theme

              

      

       

      
        	3.  	
                Spectre
                  can purchase additional game conversions at $***,
                  if Compliance Approval is
                  received.

              

      

       

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      

       

      EXHIBIT
        D

       

      ***

      

      ***

      

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        E

       

      Secured
        Promissory Note

      PROMISSORY
        NOTE
        (“Note”)

      

      
        	$3,000,000.00 	
                 May
                  18,
                  2005

              

      

               

      For
        valuable consideration, Spectre Gaming, Inc., a Minnesota corporation
        ("Promisor") does hereby promise to pay to the order of Bally Gaming, Inc.,
        a
        Nevada corporation ("Promisee" or “Lender”) the principal sum of Three Million
        and No/100 ($3,000,000.00 U.S.)
        together
        with interest accruing thereon at the rate of twelve percent (12.00%) per
        annum
        starting on the date of this Note, with principal and interest payable as
        follows,
        for the
        purchase of certain technology rights from Promisee under the conditions
        of the
        Redemption Technology and Supply Agreement dated May __, 2005, (“Agreement”)
        entered into between Promisor and Promisee. This Note, together with any
        interest thereon, shall be payable upon demand (a) in the event of default
        under
        the Agreement between Promisor and Promisee or (b) in the Event of Default
        (as
        defined below) hereunder. 

       

      The
        principal sum of this Note, and
        any
        interest thereon,
        shall
        become due in full from Promisor to Promissee no later than the end of a
        two (2)
        year period beginning on the Effective Date of the Agreement (the “Term”).
        Promisor shall make four equal, consecutive semi-annual payments to Promisee
        during the Term of this Note, in the amount of Seven Hundred and Fifty Thousand
        and No/100 ($750,000.00 (U.S.)), plus any interest owing and accruing under
        this
        Note at the time of such payment, with the first payment of principal and
        interest due and owing six months after the Effective Date of the Agreement.
        Principal and interest are payable at the office of Promisee, at 6601 South
        Bermuda Road, Las Vegas, Nevada 89119, or at such place as the holder hereof
        may
        from time to time designate in writing.

       

      Should
        any event of default, as hereinafter de-fined, occur, the whole sum of principal
        and interest hereunder shall, after notice and ten days to cure, immediately
        become due at the option of the holder hereof. An event of default by Promisor
        (“Event of Default”) hereunder shall include, but not be limited to the
        following:

      (a)
        an
        uncured default by Promisor under the Agreement;

      (b)
        any
        representation or statement made or furnished to Promisee by Promisor made
        prior
        to the date hereof proves to have been false in any material respect when
        made
        or furnished; 

      (c)
        dissolution, insolvency, appointment of a receiver, or commencement of any
        proceeding under any bankruptcy or insolvency laws by or against Promisor;
        or

      (d)
        expiration (without immediate renewal) or revocation of any material licenses
        of
        Promisor. 

      (e)
        failure to pay any sums due Promisee as set forth under this Note when due
        and
        owing.

      

      In
        the
        Event of Default under this Note, interest shall be payable on the whole
        of the
        sum outstanding at the rate of eighteen percent (18%) per annum (the "Agreed
        Rate") for the duration of such Event of Default.

      

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

         

      

      Promisor
        and all others who may become liable for the payment of all or any part of
        this
        obligation do hereby severally waive presentment for payment, protest and
        demand, notice of protest, demand and dishonor, and nonpayment of this Note
        and
        expressly agree that the maturity of this Note or any payment hereunder may
        be
        extended from time to time, at the option of the holder hereof, without in
        any
        way affecting the liability of each. Promisor agrees that the holder hereof
        may
        release all or part of the security for the payment thereof or release any
        party
        liable for this obligation. Any such extension or release may be made without
        notice to any of the parties and without discharging their
        liability.

       

      Promisor
        promises to pay all costs incurred in col-lec-tion and/or enforcement of
        this
        Note or any part thereof or oth-er-wise in connection herewith, including,
        but
        not limited to, reasonable attorneys' fees, and, in the event of court action,
        all costs and such additional sums and attorneys' fees as the court may adjudge
        reasonable.

       

      If
        any
        term, provision, covenant or condition of this Note, or any application thereof,
        should be held by a court of competent jurisdiction to be invalid, void,
        or
        unenforceable, all provisions, covenants and conditions of this Note and
        all
        ap-pli-ca-tions thereof not held invalid, void or unenforceable, shall continue
        in full force and effect and shall in no way be af-fected, impaired or
        invalidated thereby.

       

      Promisor
        hereby waives notice of default, diligence, demand, presentment, notice of
        nonpayment and protest. The obligations of Promisor hereunder are joint and
        several.

       

      This
        Note
        shall be construed according to Nevada law without regard to its choice of
        law
        rules. Promisor expressly consents to suit in the federal courts of Nevada
        for
        the sole purpose of resolving any claims or causes of action arising solely
        under this Note. If
        any
        action is taken by Promissee (whether by Court proceeding or otherwise) to
        enforce payment of this Note, Promisor promises to pay to Promissee any and
        all
        costs of such action, including all reasonable attorneys’ fees and costs
        incurred therein.

       

      
        	PROMISOR: 	 
	 	 
	Spectre Gaming, Inc., a Minnesota
                corporation 	 
	 	 
	By:
                __________________________________	 
	 	 
	Its: __________________________________	 
	 	 
	Print
                name:_________________________________ 	 
	 	 
	Date: ________________________________	 

      

        

      
         

        
          
            
            

          

          
            28

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        F

       

      Standard
        Bally Cabinet Configuration 

       

      ***

      

       

      

       

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      Exhibit
        G

       

      Licensed
        Cashless Gaming Systems and Games

      
        	a.  	
                Each
                  gaming system obtained hereunder with cashless capability (a “Licensed
                  Cashless Gaming System”) is provided under a limited license to one or
                  more of the following U.S. Patent Nos. 5,290,033; 5,265,874; 6,048,269;
                  5,429,361; 5,470,079; 6,729,957; 6,729,958 and 6,736,725. Any use
                  of a
                  Licensed Cashless Gaming System constitutes the acknowledgement
                  of and
                  agreement to the following “Limited
                  License”:

              

      

       

      
        	i.  	
                Licensed
                  Cashless Gaming System License Rights. Licensed Cashless Gaming
                  Systems
                  are licensed solely for use to facilitate the cashless aspects
                  of gaming
                  machines that are separately licensed under these patents (“Licensed
                  Gaming Machines”). The use of a Licensed Cashless Gaming System to
                  facilitate cashless transactions by an unlicensed gaming machine
                  is an
                  unlicensed use.

              

      

       

      
        	ii.  	
                Other
                  License Limitations. Each Limited License is expressly limited
                  to the
                  original Licensed Cashless Gaming System (i.e., one serial number
                  per
                  license). A license may not be transferred from one gaming system
                  to
                  another. Any unauthorized transfer voids this license.
                  

              

      

       

      
        	iii.  	
                Transferred
                  Cashless Gaming Machines. Any Cashless Gaming Machine (other than
                  a Bally
                  Licensed Cashless Gaming Machine or an IGT Licensed Cashless Gaming
                  Machine) transferred to Spectre from an Affiliated Property must
                  have a
                  transfer authorization certificate issued by IGT before such Cashless
                  Gaming Machine can be considered a Licensed Cashless Gaming Machine
                  and
                  connected to a Licensed Cashless Gaming System; without such transfer
                  authorization certificate such Cashless Gaming Machines shall be
                  deemed an
                  unlicensed Cashless Gaming Machine. Any Cashless Gaming Machine
                  (other
                  than a Bally Licensed Cashless Gaming Machine or an IGT Licensed
                  Cashless
                  Gaming Machine) acquired by Spectre from a non-Affiliated Property
                  shall
                  be deemed an unlicensed Cashless Gaming Machine, even if such Cashless
                  Gaming Machine was previously licensed because such license is
                  not
                  transferable between non-Affiliated Properties. For purposes of
                  this
                  Limited License, Affiliated Properties are properties with a common
                  owner
                  who has a majority interest in both
                  properties.

              

      

       

      
        	b.  	
                Each
                  gaming machine obtained hereunder with cashless capability (a “Licensed
                  Cashless Gaming Machine”) is provided under a limited license to one or
                  more of the following U.S. Patent Nos. 5,290,033; 5,265,874; 6,048,269;
                  5,429,361; 5,470,079; 6,729,957; 6,729,958; and 6,736,725. Any
                  use of a
                  Licensed Cashless Gaming Machine constitutes the acknowledgement
                  of and
                  agreement to the following “Limited License”:

              

      

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

      
        	i.  	
                Licensed
                  Cashless Gaming Machine License Rights.
                  Licensed Cashless Gaming Machines are licensed for use solely in
                  connection with a cashless gaming system that is separately licensed
                  under
                  these patents (a “Licensed Cashless Gaming System”). The use of a Licensed
                  Cashless Gaming Machine with an unlicensed gaming system that has
                  cashless
                  capability is an unlicensed use.

              

      

       

      
        	ii.  	
                Other
                  License Limitations.
                  Each Limited License is expressly limited to the original Licensed
                  Cashless Gaming Machine (i.e.,
                  one serial number per license). A license may not be transferred
                  from one
                  gaming machine to another. Any unauthorized transfer voids this
                  license.

              

      

       

       

      
        
          
          

        

        31EXHIBIT 4.1

                                CLASS A WARRANT

THE WARRANT EVIDENCED OR CONSTITUTED HEREBY, AND ALL SHARES OF COMMON STOCK
DELIVERABLE UPON EXERCISE HEREUNDER, HAVE BEEN AND WILL BE ISSUED WITHOUT
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("THE ACT") AND MAY
NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED WITHOUT
REGISTRATION UNDER THE ACT UNLESS EITHER (A) THE COMPANY HAS RECEIVED AN OPINION
OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, TO THE
EFFECT THAT REGISTRATION IS NOT REQUIRED IN CONNECTION WITH SUCH DISPOSITION OR
(B) THE SALE OF SUCH SECURITIES IS MADE PURSUANT TO SECURITIES AND EXCHANGE
COMMISSION RULE 144.

Date:    June 16, 2005

                    CLASS A WARRANT TO PURCHASE COMMON STOCK

                                       OF

                             THE BERMAN CENTER, INC.

                             (Subject to Adjustment)

NO. A-___

      THIS CERTIFIES THAT, for value received, _______________ ("Holder"), is
entitled, subject to the terms and conditions of this Warrant, at any time or
from time to time after the date hereof (the "Effective Date"), to purchase up
to ________________ shares of common stock, par value $0.001 per share (the
"Common Stock"), from The Berman Center, Inc., a Delaware corporation (the
"Company"), at an exercise price per share equal to One Dollar and Five Cents
($1.05) (the "Purchase Price"). This Warrant shall expire at 5:00 p.m. Pacific
time on that date which is thirty-six (36) months from the date of this Warrant
(the "Expiration Date"). Both the number of shares of Common Stock purchasable
upon exercise of this Warrant (the "Warrant Shares") and the Purchase Price are
subject to adjustment and change as provided herein. This Warrant is issued in
connection with that certain Subscription Application and Agreement executed by
and between the Company and Holder. The Company intends to effect up to a six
million dollar Private Placement of its Common Stock and Warrants to purchase
its Common Stock.

1.    CERTAIN DEFINITIONS. As used in this Warrant the following terms shall
have the following respective meanings:

      "1933 Act" shall mean the Securities Act of 1933, as amended.

      "Common Stock" shall mean the Common Stock of the Company and any other
securities at any time receivable or issuable upon exercise of this Warrant.

      "Fair Market Value" or "FMV" of a share of Common Stock as of a particular
date shall mean:

<PAGE>

      (a) If traded on a securities exchange, the Nasdaq National Market or the
Nasdaq SmallCap Market, the Fair Market Value shall be deemed to be the average
of the closing prices of the Common Stock of the Company on such exchange or
market over the five (5) business days ending immediately prior to the
applicable date of valuation;

      (b) If actively traded over-the-counter, the Fair Market Value shall be
deemed to be the average of the closing bid prices over the 30-day period ending
immediately prior to the applicable date of valuation; and

      (c) If there is no active public market, the Fair Market Value shall be
the value as determined in good faith by the Company's Board of Directors upon a
review of relevant factors, including due consideration of the Registered
Holders' determination of the value of the Company.

      "SEC" shall mean the Securities and Exchange Commission.

2.    EXERCISE OF WARRANT

      2.1   Payment. Subject to compliance with the terms and conditions of this
Warrant and applicable securities laws, this Warrant may be exercised, in whole
or in part at any time or from time to time, on or before the Expiration Date by
the delivery (including, without limitation, delivery by facsimile) of the form
of Notice of Exercise attached hereto as EXHIBIT 1 (the "Notice of Exercise"),
duly executed by the Holder, at the address of the Company as set forth herein,
and as soon as practicable after such date,

      (a)   surrendering this Warrant at the address of the Company, and either

      (b)   providing payment, by check or by wire transfer, of an amount equal
to the product obtained by multiplying the number of shares of Common Stock
being purchased upon such exercise by the then effective Purchase Price (the
"Exercise Amount"), or

      (c)   electing, by written notice to the Company on the Notice of Exercise
duly executed by the Holder, to receive a number of Warrant Shares, determined
in accordance with the formula set forth below, at a price of $0.001 per Warrant
Share (the "Election"), in which event the Company shall issue to the Holder a
number of Warrant Shares computed using the following formula, upon payment of
an amount equal to the product obtained by multiplying the Warrant Shares to be
issued by $0.001 (the "Election Exercise Amount"):

                                    X =     Y (A - B)
                                            ---------
                                                A

Where    X = The number of Warrant Shares to be issued to the Holder upon
             an Election.

         Y = The number of Warrant Shares in respect of which this Warrant is
             being exercised as adjusted to the date of the Election.

         A = The FMV of one Warrant Share on the date that the relevant Notice
             of Exercise is received by the Company.

         B = The Purchase Price (as adjusted to the date of the Election) in
             accordance with Section 4 hereof.

                                       2
<PAGE>

      2.2   Common Stock Certificates; Fractional Shares. As soon as practicable
on or after the date of an exercise of this Warrant, the Company shall deliver
to the person or persons entitled to receive the same a certificate or
certificates for the number of whole shares of Common Stock issuable upon such
exercise. No fractional shares or scrip representing fractional shares of Common
Stock shall be issued upon an exercise of this Warrant.

      2.3   Partial Exercise; Effective Date of Exercise. In case of any partial
exercise of this Warrant, the Holder and the Company shall cancel this Warrant
upon surrender hereof and shall execute and deliver a new Warrant of like tenor
and date for the balance of the shares of Common Stock purchasable hereunder.
This Warrant shall be deemed to have been exercised immediately prior to the
close of business on the date of its surrender for exercise as provided above.
The Company acknowledges that the person entitled to receive the shares of
Common Stock issuable upon exercise of this Warrant shall be treated for all
purposes as the holder of record of such shares as of the close of business on
the date the Holder is deemed to have exercised this Warrant.

3.    TAXES. The Company shall pay all taxes and other governmental charges that
may be imposed in respect of the delivery of shares upon exercise of this
Warrant; provided, however, that the Company shall not be required to pay any
tax or other charge imposed in connection with any transfer involved in the
delivery of any certificate for shares of Common Stock in any name other than
that of the Holder of this Warrant, and in such case the Company shall not be
required to deliver any stock certificate until such tax or other charge has
been paid, or it has been established to the Company's reasonable satisfaction
that no tax or other charge is due.

4.    ADJUSTMENT OF PURCHASE PRICE AND NUMBER OF COMMON STOCK. The number of
shares of Common Stock deliverable upon exercise of this Warrant (or any shares
of stock or other securities or property receivable upon exercise of this
Warrant) and the Purchase Price are subject to adjustment upon occurrence of the
following events:

      4.1   Adjustment for Stock Splits, Stock Subdivisions or Combinations of
Shares of Common Stock. The Purchase Price of this Warrant shall be
proportionally decreased and the number of shares of Common Stock deliverable
upon exercise of this Warrant (or any shares of stock or other securities at the
time deliverable upon exercise of this Warrant) shall be proportionally
increased to reflect any stock split or subdivision of the Company's Common
Stock. The Purchase Price of this Warrant shall be proportionally increased and
the number of shares of Common Stock deliverable upon exercise of this Warrant
(or any shares of stock or other securities at the time deliverable upon
exercise of this Warrant) shall be proportionally decreased to reflect any
combination of the Company's Common Stock.

      4.2   Adjustment for Dividends or Distributions of Stock or Other
Securities or Property. In case the Company shall make or issue, or shall fix a
record date for the determination of eligible holders entitled to receive, a
dividend or other distribution with respect to the Common Stock (or any shares
of stock or other securities at the time issuable upon exercise of the Warrant)
payable in (a) securities of the Company or (b) assets (excluding cash dividends
paid or payable solely out of retained earnings), then, in each such case, the
Registered Holder of this Warrant on exercise hereof at any time after the

                                       3
<PAGE>

consummation, effective date or record date of such dividend or other
distribution, shall receive, in addition to the shares of Common Stock (or such
other stock or securities) issuable on such exercise prior to such date, and
without the payment of additional consideration therefor, the securities or such
other assets of the Company to which such Holder would have been entitled upon
such date if such Holder had exercised this Warrant on the date hereof and had
thereafter, during the period from the date hereof to and including the date of
such exercise, retained such shares and/or all other additional stock available
by it as aforesaid during such period giving effect to all adjustments called
for by this Section 4.

      4.3   Reclassification. If the Company, by reclassification of securities
or otherwise, shall change any of the securities as to which purchase rights
under this Warrant exist into the same or a different number of securities of
any other class or classes, this Warrant shall thereafter represent the right to
acquire such number and kind of securities as would have been issuable as the
result of such change with respect to the securities that were subject to the
purchase rights under this Warrant immediately prior to such reclassification or
other change and the Purchase Price therefore shall be appropriately adjusted,
all subject to further adjustment as provided in this Section 4. No adjustment
shall be made pursuant to this Section 4.3 upon any conversion or redemption of
the Common Stock which is the subject of Section 4.5.

      4.4   Adjustment for Capital Reorganization, Merger or Consolidation. In
case of any capital reorganization of the capital stock of the Company (other
than a combination, reclassification, exchange or subdivision of shares
otherwise provided for herein), or any merger or consolidation of the Company
with or into another corporation, or the sale of all or substantially all the
assets of the Company then, and in each such case, as a part of such
reorganization, merger, consolidation, sale or transfer, lawful provision shall
be made so that the Holder of this Warrant shall thereafter be entitled to
receive upon exercise of this Warrant, during the period specified herein and
upon payment of the Purchase Price then in effect, the number of shares of stock
or other securities or property of the successor corporation resulting from such
reorganization, merger, consolidation, sale or transfer that a holder of the
shares deliverable upon exercise of this Warrant would have been entitled to
receive in such reorganization, consolidation, merger, sale or transfer if this
Warrant had been exercised immediately before such reorganization, merger,
consolidation, sale or transfer, all subject to further adjustment as provided
in this Section 4. The foregoing provisions of this Section 4.4 shall similarly
apply to successive reorganizations, consolidations, mergers, sales and
transfers and to the stock or securities of any other corporation that are at
the time receivable upon the exercise of this Warrant. If the per-share
consideration payable to the Holder hereof for shares in connection with any
such transaction is in a form other than cash or marketable securities, then the
value of such consideration shall be determined in good faith by the Company's
Board of Directors. In all events, appropriate adjustment (as determined in good
faith by the Company's Board of Directors) shall be made in the application of
the provisions of this Warrant with respect to the rights and interests of the
Holder after the transaction, to the end that the provisions of this Warrant
shall be applicable after that event, as near as reasonably may be, in relation
to any shares or other property deliverable after that event upon exercise of
this Warrant.

      4.5   Conversion of Common Stock. In case all or any portion of the
authorized and outstanding shares of Common Stock of the Company are redeemed or
converted or reclassified into other securities or property pursuant to the
Company's Certificate of Incorporation or otherwise, or the Common Stock

                                       4
<PAGE>

otherwise ceases to exist, then, in such case, the Registered Holder of this
Warrant, upon exercise hereof at any time after the date on which the Common
Stock is so redeemed or converted, reclassified or ceases to exist (the
"Termination Date"), shall receive, in lieu of the number of shares of Common
Stock that would have been deliverable upon such exercise immediately prior to
the Termination Date, the securities or property that would have been received
if this Warrant had been exercised in full and the Common Stock received
thereupon had been simultaneously converted immediately prior to the Termination
Date, all subject to further adjustment as provided in this Warrant.
Additionally, the Purchase Price shall be immediately adjusted to equal the
quotient obtained by dividing (x) the aggregate Purchase Price of the maximum
number of shares of Common Stock for which this Warrant was exercisable
immediately prior to the Termination Date by (y) the number of shares of Common
Stock of the Company for which this Warrant is exercisable immediately after the
Termination Date, all subject to further adjustment as provided herein.

      4.6   Redemption at Company's Election. The Company may, at its option, by
at least thirty-days' ("Notice Period") written notice to the Holder (the
"Redemption Notice"), redeem this Warrant, in whole or part, provided that (i)
the closing price of the shares of Common Stock for twenty (20) of the preceding
(30) thirty consecutive trading days immediately preceding the Redemption Notice
("Pricing Period") is equal to or greater than $1.575 (as may be adjusted for
any stock splits, etc.), (ii) all of the Warrant Shares underlying this Warrant
to be redeemed are then registered under an effective registration statement,
(iii) sufficient Common Stock of the Company are authorized and reserved for
issuance upon the full exercise of this Warrant and (iv) all of the Warrant
Shares issuable upon exercise of this Warrant are then listed on either the OTC
Bulletin Board, Nasdaq Small Cap Market, Nasdaq National Market System, American
Stock Exchange or New York Stock Exchange, as the case may be. The Redemption
Notice shall set forth a date, not less than thirty (30) days after the date of
the Redemption Notice, on which the redemption of this Warrant shall occur (the
"Redemption Date"). On the Redemption Date, (i) the Company shall pay the Holder
by certified check an amount equal to the product of (x) $0.05 (as adjusted in
proportion to any adjustment Common Stock pursuant to the provisions of this
Warrant) multiplied by (y) the number of Warrant Shares so redeemed; and (ii)
the Holder shall deliver the original copy of this Warrant marked "REDEEMED" to
the Company. If the Company shall redeem this Warrant in part, the Company
shall, at the Redemption Date, provided that the Holder shall have delivered the
original copy of this Warrant marked "REDEEMED" to the Company, deliver to the
Holder a new Warrant evidencing the rights of the Holder to purchase the
unredeemed Common Stock called for by this Warrant, which new Warrant shall in
all other respects be identical with this Warrant. Nothing in this Section 4.6
shall prevent the exercise of the Warrants at any time prior to the Redemption.

5.    LOSS OR MUTILATION. Upon receipt of evidence reasonably satisfactory the
Company of the ownership of and the loss, theft, destruction or mutilation of
this Warrant, and of indemnity reasonably satisfactory to him, and (in the case
of mutilation) upon surrender and cancellation of this Warrant, the Company will
cause to be executed and delivered in lieu thereof a new Warrant of like tenor
as the lost, stolen, destroyed or mutilated Warrant.

6.    REPRESENTATION. The Company hereby covenants that all shares issuable upon
exercise of this Warrant, when delivered upon such exercise, shall be free and
clear of all liens, security interests, charges and other encumbrances or
restrictions on sale and free and clear of all preemptive rights, except
encumbrances or restrictions arising under federal or state securities laws.
Further, the Company hereby covenants to reserve such number of authorized but
unissued shares of Common Stock for issuance upon exercise of this Warrant.

                                       5
<PAGE>

7.    TRANSFER. This Warrant may not be transferred by the Holder without the
prior written consent of the Company, which consent may not be unreasonably
withheld. In the event of a transfer to which the Company has previously
consented in writing, this Warrant and all rights hereunder may be transferred
by the Holder upon delivery of the form of Assignment attached hereto as EXHIBIT
2 (the "Assignment"), duly executed by the Holder, surrender of this Warrant
properly endorsed at the address of the Company and payment of any necessary
transfer tax or other governmental charge imposed upon such transfer. Upon any
partial transfer, the Holder and Company will cause to be issued and delivered
to the Holder a new Warrant or Warrants with respect to the portion of this
Warrant not so transferred. Each taker and holder of this Warrant, by taking or
holding the same, consents and agrees that when this Warrant shall have been so
endorsed, the person in possession of this Warrant may be treated by the
Company, and all other persons dealing with this Warrant, as the absolute owner
hereof for any purpose and as the person entitled to exercise the rights
represented hereby, any notice to the contrary notwithstanding; provided,
however that until a transfer of this Warrant is duly registered on the books of
the Company, the Company may treat the Holder hereof as the owner for all
purposes.

8.    REGISTRATION. The Company shall register the Common Stock issued or
issuable upon exercise hereof under the 1933 Act concurrently with the
securities issued further to the Private Placement.

9.    RESTRICTIONS ON TRANSFER. The Holder, by acceptance hereof, agrees that,
absent an effective registration statement filed with the SEC under the 1933
Act, covering the disposition or sale of this Warrant or the Common Stock issued
or issuable upon exercise hereof or the Common Stock issuable upon conversion
thereof, as the case may be, and registration or qualification under applicable
state securities laws, such Holder will not sell, transfer, pledge, or
hypothecate any or all such Warrants or Common Stock, as the case may be, unless
either (i) the Company has received an opinion of counsel, in form and substance
reasonably satisfactory to the Company, to the effect that such registration is
not required in connection with such disposition or (ii) the sale of such
securities is made pursuant to SEC Rule 144.

10.   COMPLIANCE WITH SECURITIES LAWS. By acceptance of this Warrant, the Holder
hereby represents, warrants and covenants that he/she/it is an "accredited
investor" as that term is defined under Rule 501 of Regulation D, that any
shares of stock purchased upon exercise of this Warrant or acquired upon
conversion thereof shall be acquired for investment only and not with a view to,
or for sale in connection with, any distribution thereof; that the Holder has
had such opportunity as such Holder has deemed adequate to obtain from
representatives of the Company such information as is necessary to permit the
Holder to evaluate the merits and risks of its investment in the Company; that
the Holder is able to bear the economic risk of holding such shares as may be
acquired pursuant to the exercise of this Warrant for an indefinite period; that
the Holder understands that the shares of stock acquired pursuant to the
exercise of this Warrant or acquired upon conversion thereof will not be
registered under the 1933 Act (unless otherwise required pursuant to exercise by
the Holder of the registration rights, if any, previously granted to the Holder)
and will be "restricted securities" within the meaning of Rule 144 under the
1933 Act and that the exemption from registration under Rule 144 will not be
available for at least one year from the date of exercise of this Warrant, and
even then will not be available unless a public market then exists for the

                                       6
<PAGE>

stock, adequate information concerning the Company is then available to the
public, and other terms and conditions of Rule 144 are complied with; and that
all stock certificates representing shares of stock issued to the Holder upon
exercise of this Warrant or upon conversion of such shares may have affixed
thereto a legend substantially in the following form:

                  THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
                  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
                  UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE
                  SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY
                  NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT
                  AND ANY APPLICABLE STATE SECURITIES LAWS, PURSUANT TO
                  REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE
                  THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS
                  INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF
                  THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND
                  SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY
                  PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND
                  ANY APPLICABLE STATE SECURITIES LAWS.

11.   NO RIGHTS OR LIABILITIES AS STOCKHOLDERS. This Warrant shall not entitle
the Holder to any voting rights or other rights as a stockholder of the Company.
In the absence of affirmative action by such Holder to purchase Common Stock by
exercise of this Warrant, no provisions of this Warrant, and no enumeration
herein of the rights or privileges of the Holder hereof shall cause such Holder
hereof to be a holder of the Company for any purpose.

12.   NOTICES. All notices and other communications required or permitted
hereunder shall be in writing and shall be mailed by registered or certified
mail, postage prepaid, return receipt requested, or by telecopier, or by email
or otherwise delivered by hand or by messenger, addressed or telecopied to the
person to whom such notice or communication is being given at its address set
forth after its signature hereto. In order to be effective, a copy of any notice
or communication sent by telecopier or email must be sent by registered or
certified mail, postage prepaid, return receipt requested, or delivered
personally to the person to whom such notice or communication is being at its
address set forth after its signature hereto. If notice is provided by mail,
notice shall be deemed to be given five (5) business days after proper deposit
with the United States mail or nationally recognized overnight courier, or
immediately upon personally delivery thereof, to person to whom such notice or
communication is being at such address. If notice is provided by telecopier,
notice shall be deemed to be given upon confirmation by the telecopier machine
of the receipt of such notice at the telecopier number provided above. If notice
is provided by email, notice shall be deemed to be given upon confirmation by
the sender's email program of the receipt of such notice at the email address
provided after the signature of the person to whom such notice or communication
is being. The addresses set forth after the signatures hereto may be changed by
written notice complying with the terms of this Section 12.

                                       7
<PAGE>

13.   HEADINGS. The headings in this Warrant are for purposes of convenience in
reference only, and shall not be deemed to constitute a part hereof.

14.   LAW GOVERNING. This Warrant shall be construed and enforced in accordance
with, and governed by, the laws of the State of Delaware.

15.   NOTICES OF RECORD DATE. In case:

      15.1  the Company shall take a record of the holders of its Common Stock
(or other stock or securities at the time receivable upon the exercise of this
Warrant), for the purpose of entitling them to receive any dividend or other
distribution, or any right to subscribe for or purchase any shares of stock of
any class or any other securities or to receive any other right; or

      15.2  of any consolidation or merger of the Company with or into another
corporation, any capital reorganization of the Company, any reclassification of
the capital stock of the Company, or any conveyance of all or substantially all
of the assets of the Company to another corporation in which holders of the
Company's stock are to receive stock, securities or property of another
corporation; or

      15.3  of any voluntary dissolution, liquidation or winding-up of the
            Company; or

      15.4  of any redemption of any outstanding capital stock of the Company;

then, and in each such case, the Company will mail or cause to be mailed to the
Holder of this Warrant a notice specifying, as the case may be, (i) the date on
which a record is to be taken for the purpose of such dividend, distribution or
right, or (ii) the date on which such reorganization, reclassification,
consolidation, merger, conveyance, dissolution, liquidation, winding-up,
redemption or conversion is to take place, and the time, if any is to be fixed,
as of which the holders of record of Common Stock (or such stock or securities
as at the time are receivable upon the exercise of this Warrant) shall be
entitled to exchange their shares of Common Stock (or such other stock or
securities) for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, conveyance,
dissolution, liquidation or winding-up. Such notice shall be delivered at least
thirty (30) days prior to the date therein specified.

16.   SEVERABILITY. If any term, provision, covenant or restriction of this
Warrant is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Warrant shall remain in full force and effect and shall in
no way be affected, impaired or invalidated.

17.   COUNTERPARTS. For the convenience of the parties, any number of
counterparts of this Warrant may be executed by the parties hereto and each such
executed counterpart shall be, and shall be deemed to be, an original
instrument.

18.   SATURDAYS, SUNDAYS AND HOLIDAYS. If the Expiration Date falls on a
Saturday, Sunday or legal holiday, the Expiration Date shall automatically be
extended until 5:00 p.m. on the next business day.

                           [SIGNATURE PAGE TO FOLLOW]

                                       8
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Class A Warrant
as of this 16th day of June, 2005.

THE BERMAN CENTER, INC.

By:                                            By:
  -----------------------                        ----------------------------
  Name:  Samuel Chapman                          Name:_______________________
  Title:  Managing Member

  Address for Notices:                           Address for Notices:

  211 East Ontario
  Suite 800
  Chicago, IL 60611

                            SIGNATURE PAGE TO WARRANT

                                       9
<PAGE>

                                    EXHIBIT 1

                               NOTICE OF EXERCISE

                    (To be executed upon exercise of Warrant)

___________________                                            WARRANT NO. A-___

The undersigned hereby irrevocably elects to exercise the right of purchase
represented by the within Warrant Certificate for, and to purchase thereunder,
securities of The Berman Center, Inc., as provided for therein, and (check the
applicable box):

|_|   Tenders herewith payment of the exercise price in full in the form of cash
      or a certified or official bank check in same-day funds in the amount of
      $____________ for _________ such securities.

|_|   Tenders herewith payment of $____________ representing $0.001 per Warrant
      Share to be issued pursuant to the Election provided for in Section 2.1(c)
      of the Warrant, and accordingly requests delivery of a net of
      ______________ of such securities, according to the following calculation:

         X = Y (A-B)               (       ) =  (____) [(_____) - (_____)]
             -------                           ---------------------------
                A                                         (_____)

Where   X = The number of Warrant Shares to be issued to the Holder upon an
            Election.

        Y = The number of Warrant Shares in respect of which this Warrant is
            being exercised as adjusted to the date of the Election.

        A = The FMV of one Warrant Share on the date that the relevant Notice
            of Exercise is received by the Company.

        B = The Purchase Price (as adjusted to the date of the Election)
            in accordance with Section 4 hereof.

Please issue a certificate or certificates for such securities in the name of,
and pay any cash for any fractional share to (please print name, address and
social security number):

Name:
                  -----------------------------------------------------

Address:
                  -----------------------------------------------------

Signature:
                  -----------------------------------------------------

Note: The above signature should correspond exactly with the name on the first
page of this Warrant Certificate or with the name of the assignee appearing in
the assignment form below.

If said number of shares shall not be all the shares purchasable under the
within Warrant Certificate, a new Warrant Certificate is to be issued in the
name of said undersigned for the balance remaining of the shares purchasable
thereunder rounded up to the next higher whole number of shares.

                                       10
<PAGE>

                                    EXHIBIT 2

                                   ASSIGNMENT

(TO BE EXECUTED ONLY UPON ASSIGNMENT OF WARRANT CERTIFICATE)   WARRANT NO. A-___

For value received, hereby sells, assigns and transfers unto
________________________ the within Warrant Certificate, together with all
right, title and interest therein, and does hereby irrevocably constitute and
appoint ____________________________ attorney, to transfer said Warrant
Certificate on the books of the within-named Company with respect to the number
of Warrants set forth below, with full power of substitution in the premises:

--------------------------------------------------------------------------------

NAME(S) OF ASSIGNEE(S)   ADDRESS               # OF WARRANTS
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

And if said number of Warrants shall not be all the Warrants represented by the
Warrant Certificate, a new Warrant Certificate is to be issued in the name of
said undersigned for the balance remaining of the Warrants registered by said
Warrant Certificate.

Dated:______________________________, 200__

Signature:__________________________________

Notice: The signature to the foregoing Assignment must correspond to the name as
written upon the face of this security in every particular, without alteration
or any change whatsoever; signature(s) must be guaranteed by an eligible
guarantor institution (banks, stock brokers, savings and loan associations and
credit unions with membership in an approved signature guarantee medallion
program) pursuant to Securities and Exchange Commission Rule 17Ad-15.

                                       11
<PAGE>

               SCHEDULE TO FORM OF CLASS A STOCK PURCHASE WARRANT

--------------------------------------------------------------------------------
                                    NUMBER OF SHARES OF COMMON STOCK ISSUABLE
WARRANT HOLDER                      UPON EXERCISE OF WARRANT
--------------------------------------------------------------------------------
Corporate Advisors Europe           1,428,572
--------------------------------------------------------------------------------
Petr Ondrousek                      1,428,571
--------------------------------------------------------------------------------
Christopher P. Baker                95,238
--------------------------------------------------------------------------------

                                       12

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