Document:

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                                                                    EXHIBIT 10.2

Warrant No. ________

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
      INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
      AS AMENDED (THE "SECURITIES ACT"). THE SECURITIES MAY NOT BE SOLD,
      TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS REGISTERED UNDER THE
      SECURITIES ACT AND QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS OR
      UNLESS SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION
      REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS OR UNLESS THE COMPANY
      RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
      REGISTRATION AND QUALIFICATION ARE NOT REQUIRED. THE SECURITIES
      REPRESENTED BY THIS CERTIFICATE AND THE RIGHTS OF HOLDERS (INCLUDING ANY
      FUTURE HOLDERS) THEREOF ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER
      AND OTHER RESTRICTIONS.

                   WARRANT TO PURCHASE SHARES OF COMMON STOCK
                     OF POWERHOUSE TECHNOLOGIES GROUP, INC.

      This certifies that [Warrant Holder Name] located at [Warrant Holder
Address], its successors or assigns (the "Holder"), for value received is
entitled to purchase from PowerHouse Technologies Group, Inc., a Delaware
corporation (the "Company"), up to [Number of Shares] [(_________)] fully paid
and nonassessable shares of the Company's Common Stock (the "Warrant Shares") at
a price per share equal to $0.40 (the "Exercise Price") upon the terms and
conditions set forth herein. This Warrant shall become exercisable for the
Warrant Shares commencing on September [___], 2005 (the "Commencement Date") and
shall terminate and be of no further force or effect at 5:00 p.m. (Pacific Time)
on the date (the "Termination Date") that is the earlier of (i) the date three
years after the date of this Warrant or (ii) the effective date of a
liquidation, dissolution or winding-up of the Company; provided, however, that
if the Termination Date is determined by application of clause (ii) above, the
Commencement Date shall be determined under Section 3.7 hereof. Such period of
time during which this Warrant is exercisable shall hereinafter be referred to
as the "Exercise Period." During the Exercise Period, the Warrant shall be
exercisable upon surrender to the Company at its principal office at 555 Twin
Dolphin Drive, Redwood City, California (or at such other location as the
Company may advise Holder in writing) of this Warrant properly endorsed with the
Form of Subscription attached hereto duly filled in and signed and upon payment
by "Net Issue Exercise," cash, cashier's check or wire transfer of immediately
available funds of the aggregate Exercise Price for the number of shares for
which this Warrant is being exercised determined in accordance with the
provisions hereof, such exercise to be conditioned upon the accuracy of all
representations and warranties contained in such Form of Subscription. The
Exercise Price and the number of shares purchasable hereunder are subject to
adjustment as provided in Section 3 of this Warrant. CAPITALIZED TERMS USED AND
NOT OTHERWISE DEFINED HEREIN SHALL HAVE THE MEANINGS SET FORTH IN THAT CERTAIN
COMMON STOCK

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AND WARRANT PURCHASE AGREEMENT (THE "PURCHASE AGREEMENT"), OF EVEN DATE HEREWITH
BETWEEN THE COMPANY AND THE HOLDER.

      This Warrant is subject to the following terms and conditions:

      1. Exercise of Warrant

      1.1 Issuance of Certificates. Exercise of the purchase rights represented
by this Warrant may be made at any time or times on or after the Commencement
Date and on or before the Termination Date by delivery to the Company of a duly
executed facsimile copy of the Form of Subscription annexed hereto (or such
other office or agency of the Company as it may designate by notice in writing
to the registered Holder at the address of such Holder appearing on the books of
the Company); provided, however, within five (5) Trading Days of the date said
Form of Subscription is delivered to the Company, the Holder shall have
surrendered this Warrant to the Company and the Company shall have received
payment of the aggregate Exercise Price of the shares thereby purchased by wire
transfer or cashier's check drawn on a United States bank. Certificates for
shares purchased hereunder shall be delivered to the Holder within the earlier
of (i) five (5) Trading Days after the date on which the Form of Subscription
shall have been delivered by facsimile copy or (ii) three (3) Trading Days from
the delivery to the Company of the Form of Subscription by facsimile copy,
surrender of this Warrant and payment of the aggregate Exercise Price as set
forth above ("Warrant Share Delivery Date"); provided, however, in the event the
Warrant is not surrendered or the aggregate Exercise Price is not received by
the Company within five (5) Trading Days after the date on which the Form of
Subscription shall be delivered by facsimile copy, the Warrant Share Delivery
Date shall be extended to the extent such five (5) Trading Day period is
exceeded. This Warrant shall be deemed to have been exercised on the later of
the date the Form of Subscription is delivered to the Company by facsimile copy
and the date the Exercise Price is received by the Company. The Warrant Shares
shall be deemed to have been issued, and Holder or any other person so
designated to be named therein shall be deemed to have become a holder of record
of such shares for all purposes, as of the date the Warrant has been exercised
by payment to the Company of the Exercise Price and all taxes required to be
paid by the Holder, if any, pursuant to Section 3.6 prior to the issuance of
such shares, have been paid. If the Company fails to deliver to the Holder a
certificate or certificates representing the Warrant Shares pursuant to this
Section 1.1 by the third Trading Day following the Warrant Share Delivery Date,
then the Holder will have the right to rescind such exercise. In addition to any
other rights available to the Holder, if the Company fails to deliver to the
Holder a certificate or certificates representing the Warrant Shares pursuant to
an exercise by the fifth (5th) Trading Day after the Warrant Share Delivery
Date, and if after such day the Holder is required by its broker to purchase (in
an open market transaction or otherwise) shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a "Buy-In"), then the Company shall
(1) pay in cash to the Holder the amount by which (x) the Holder's total
purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the
number of Warrant Shares that the Company was required to deliver to the Holder
in connection with the exercise at issue times (B) the price at which the sell
order giving rise to such purchase obligation was executed, and (2) at the
option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for

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which such exercise was not honored or deliver to the Holder the number of
shares of Common Stock that would have been issued had the Company timely
complied with its exercise and delivery obligations hereunder. For example, if
the Holder purchases Common Stock having a total purchase price of $11,000 to
cover a Buy-In with respect to an attempted exercise of shares of Common Stock
with an aggregate sale price giving rise to such purchase obligation of $10,000,
under clause (1) of the immediately preceding sentence the Company shall be
required to pay the Holder $1,000. The Holder shall provide the Company written
notice indicating the amounts payable to the Holder in respect of the Buy-In,
together with applicable confirmations and other evidence reasonably requested
by the Company. Nothing herein shall limit a Holder's right to pursue any other
remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with
respect to the Company's failure to timely deliver certificates representing
shares of Common Stock upon exercise of the Warrant as required pursuant to the
terms hereof.

      1.2 Partial Exercise. If this Warrant shall have been exercised in part,
the Company shall, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

      1.3 Limitations on Exercise.

      (a) Notwithstanding anything to the contrary contained herein, the number
of Warrant Shares that may be acquired by the Holder upon any exercise of this
Warrant (or otherwise in respect hereof) shall be limited to the extent
necessary to insure that, following such exercise (or other issuance), the total
number of shares of Common Stock then beneficially owned by such Holder and its
Affiliates (as defined in Rule 144 of the Securities Act) and any other persons
whose beneficial ownership of Common Stock would be aggregated with the Holder's
for purposes of Section 13(d) of the Exchange Act, does not exceed 4.9% of the
total number of issued and outstanding shares of Common Stock (including for
such purpose the shares of Common Stock issuable upon such exercise). For such
purposes, beneficial ownership shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")
and the rules and regulations promulgated thereunder. This provision shall not
restrict the number of shares of Common Stock which a Holder may receive or
beneficially own in order to determine the amount of securities or other
consideration that such Holder may receive in the event of a reclassification,
reorganization, merger or similar transaction as contemplated in Section 3.3 of
this Warrant. By written notice to the Company, an Investor may waive the
provisions of this Section 1.3 as to itself but any such waiver will not be
effective until the 61st day after delivery thereof and such waiver shall have
no effect on any other Investor.

      (b) Notwithstanding anything to the contrary contained herein, the number
of Warrant Shares that may be acquired by the Holder upon any exercise of this
Warrant (or otherwise in respect hereof) shall be limited to the extent
necessary to insure that, following such exercise (or other issuance), the total
number of shares of Common Stock then beneficially owned by such Holder and its
Affiliates and any other persons whose beneficial ownership of Common Stock
would be aggregated with the Holder's for purposes of Section

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13(d) of the Exchange Act, does not exceed 9.9% of the total number of issued
and outstanding shares of Common Stock (including for such purpose the shares of
Common Stock issuable upon such exercise). For such purposes, beneficial
ownership shall be determined in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. This provision shall
not restrict the number of shares of Common Stock which a Holder may receive or
beneficially own in order to determine the amount of securities or other
consideration that such Holder may receive in the event of a reclassification,
reorganization, merger or similar transaction as contemplated in Section 3.3 of
this Warrant. This restriction may not be waived.

      1.4 Limited Net Issue Exercise. If at any time after one year from the
date of issuance of this Warrant there is no effective Registration Statement
registering the resale of the Warrant Shares by the Holder, this Warrant may
also be exercised at such time by means of a "Net Issue Exercise" in which the
Holder shall be entitled to receive Warrant Shares equal to the value of this
Warrant (or the portion thereof being exercised by Net Issue Exercise) by
surrender of this Warrant to the Company together with notice of such Net Issue
Exercise, in which event the Company shall issue to Holder a number of Warrant
Shares computed as of the date of surrender of this Warrant to the Company using
the following formula:

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

            Where:

                  X =   the number of Warrant Shares to be issued to Holder
                        pursuant to this Section 1.4;

                  Y =   the number of Warrant Shares otherwise purchasable under
                        this Warrant, or any lesser number of Warrant Shares as
                        to which this Warrant is being exercised (at the date of
                        such calculation);

                  A =   the fair market value of one share of the Company's
                        Common Stock (at the date of such calculation);

                  B =   the Exercise Price (as adjusted to the date of such
                        calculation).

      2. Shares to be Fully Paid; Reservation of Shares. The Company covenants
and agrees that all Warrant Shares which may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be duly authorized,
validly issued, fully paid and nonassessable and free from all preemptive rights
of any stockholder and free of all taxes, liens and charges with respect to the
issue thereof. The Company further covenants and agrees that during the period
within which the rights represented by this Warrant may be exercised, the
Company will at all times have authorized and reserved, for the purpose of issue
or transfer upon exercise of this Warrant, a sufficient number of shares of
authorized but unissued Common Stock. When and as required to provide for the
exercise of the rights represented by this Warrant, the Company will take all
such action as may be necessary to assure that such shares of Common Stock may
be issued as provided herein without violation of any applicable law or
regulation, or of any requirements of any domestic securities exchange or
automated

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quotation system upon which the Common Stock may be listed. For purposes of this
Warrant, the fair market value of one Warrant Share shall mean, to the extent it
applies to the Company's Common Stock, the average of the daily high and low
trading prices of the Company's Common Stock on the Over The Counter Bulletin
Board (or other exchange or market that is the primary trading market for the
Company's Common Stock at that time (the "Trading Market"), as determined by the
Company's Board of Directors in good faith) on the 10 Trading Days ending on the
date prior to the date the Warrant is exercised and, to the extent it applies to
other securities or property, as determined by the Company's Board of Directors
in good faith.

      3.1 Exercise Price Adjustments. In the event that on or subsequent to the
Commencement Date, the Company issues or sells any Common Stock, any Convertible
Securities (as defined herein), or any warrants or other rights to subscribe for
or to purchase or any options for the purchase of its Common Stock or any such
Convertible Securities (other than (i) shares which are issued pursuant to the
Securities, (ii) shares of Common Stock or options to purchase such shares
issued to employees, consultants, officers or directors in accordance with stock
plans approved by the Board of Directors, and shares of Common Stock issuable
under options or warrants that are outstanding as of the date of the Purchase
Agreement and (iii) shares of Common Stock issued pursuant to a stock dividend,
split, combination, reclassification, reorganization, merger or other similar
transactions), and at an effective price per share which is less than eighty
percent (80%) of the then applicable Exercise Price (such effective price per
share, the "New Issuance Price"), then the Exercise Price in effect immediately
prior to such issue or sale shall be reduced effective concurrently with such
issue or sale to an amount equal to one hundred twenty five percent (125%) of
the New Issuance Price. For the purposes of the foregoing adjustments, in the
case of the issuance of any convertible securities, warrants, options or other
rights to subscribe for or to purchase or exchange for, shares of Common Stock
("Convertible Securities"), the maximum number of shares of Common Stock
issuable upon exercise, exchange or conversion of such Convertible Securities
shall be deemed to be outstanding, provided that no further adjustment shall be
made upon the actual issuance of Common Stock upon exercise, exchange or
conversion of such Convertible Securities.

      If such Convertible Securities, warrants, options or other rights to
subscribe for or to purchase or any options for the purchase of its Common Stock
by their terms provide, with the passage of time or otherwise, for any increase
or decrease in the consideration payable to this Company, or decrease or
increase in the number of shares of Common Stock issuable, upon the exercise,
conversion or exchange thereof, the Exercise Price for the Warrant computed upon
the original issue thereof (or upon the occurrence of a record date with respect
thereto), and any subsequent adjustments based thereon, shall, upon any such
increase or decrease becoming effective, be recomputed to reflect such increase
or decrease insofar as it affects such Convertible Securities, warrants, options
or other rights (provided, however, that no such adjustment of such Exercise
Price shall affect Common Stock previously issued upon the exercise of the
Warrant).

      3.2 Adjustments to Exercise Prices for Stock Dividends and for
Combinations or Subdivisions of Common Stock. (a) In the event that the Company
at any time or from time to time after the Commencement Date shall declare or
pay, without consideration, any dividend on the Common Stock payable in Common
Stock or in any right to acquire Common Stock for

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no consideration, or shall effect a subdivision of the outstanding shares of
Common Stock into a greater number of shares of Common Stock (by stock split,
reclassification or otherwise than by payment of a dividend in Common Stock or
in any right to acquire Common Stock), or in the event the outstanding shares of
Common Stock shall be combined or consolidated, by reclassification or
otherwise, into a lesser number of shares of Common Stock, then the Exercise
Price for the Warrant in effect immediately prior to such event shall,
concurrently with the effectiveness of such event, be proportionately decreased
or increased, as appropriate. In the event that the Company shall declare or
pay, without consideration, any dividend on the Common Stock payable in any
right to acquire Common Stock for no consideration, then the Company shall be
deemed to have made a dividend payable in Common Stock in an amount of shares
equal to the maximum number of shares issuable upon exercise of such rights to
acquire Common Stock.

      (b) Upon each adjustment of the Exercise Price under Section 3.2(a), the
Holder shall thereafter be entitled to purchase, at the Exercise Price resulting
from such adjustment, the number of shares of Common Stock obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the number of shares of Common Stock purchasable pursuant hereto immediately
prior to such adjustment and dividing the product thereof by the Exercise Price
resulting from such adjustment.

      3.3 Adjustments for Reclassifications, and Reorganizations, Mergers, Etc.
If any: (a) capital reorganization or reclassification of the capital stock of
the Company, (b) consolidation or merger of the Company with another person, (c)
exchange, or (d) sale of all or substantially all of the Company's assets to
another person shall be effected after the Commencement Date in such a way that
holders of the Common Stock shall be entitled to receive securities, money or
other property with respect to or in exchange for such Common Stock, then, as a
condition of such reorganization, reclassification, consolidation, merger,
exchange or sale, the Holder shall have the right to purchase and receive upon
the basis and upon the terms and conditions specified in this Warrant and in
lieu of the shares of Common Stock immediately theretofore purchasable and
receivable upon the exercise of the Warrant, such securities, money or other
property as would have been issued or delivered to the Holder if it had
exercised this warrant and had received such shares of Common Stock prior to
such reorganization, reclassification, consolidation, merger, exchange or sale.
The Company shall not effect any such consolidation, merger, exchange or sale,
unless prior to the consummation thereof the successor corporation (if other
than the Company) resulting from such consolidation or merger, the person with
whom the exchange is effected or the person purchasing such assets shall assume
by written instrument executed and mailed to the registered Holder at the last
address of such Holder appearing on the books of the Company, the obligation to
deliver to such Holder such securities, money or other property as, in
accordance with the foregoing provisions, such Holder may be entitled to
purchase.

      3.4 Other Distributions. In the event that the Company shall declare a
distribution payable in securities of other persons, evidence of indebtedness
issued by this Company or other persons, or assets (excluding cash dividends),
then, in each such case the holder of the Warrant shall be entitled to receive
upon exercise of this Warrant, a proportionate share of any such distribution as
though the holder were the holder of the number of shares of Common Stock of
this Company into which the holder's shares the Warrant was exercisable as of
the

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record date fixed for the determination of the holders of Common Stock of this
Company entitled to receive such distribution.

      3.5 No Adjustment. No adjustment of the Exercise Price for the Warrant
shall be made in an amount less than one cent per share, provided that any
adjustments which are not required to be made by reason of this sentence shall
be carried forward and shall be either taken into account in any subsequent
adjustment made prior to three (3) years from the date of the event giving rise
to the adjustment being carried forward, or shall be made at the end of three
(3) years from the date of the event giving rise to the adjustment being carried
forward.

      3.6 Fractional Shares and Certificate as to Adjustments.

            (a) No fractional shares shall be issued upon exercise of the
Warrant. The Company shall pay in cash the fair value of such fractional shares
(as determined by the Board of Directors of the Company) to the holder otherwise
entitled to receive such fractional shares. Whether or not fractional shares are
issuable upon such exercise shall be determined on the basis of the percentage
of the Warrant the holder is at the time exercising and the number of shares of
Common Stock issuable upon such exercise.

            (b) Upon the occurrence of each adjustment or readjustment of the
Exercise Price of the Warrant, pursuant to this Section 3, this Company, at its
expense, shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and prepare and furnish to the holder of the Warrant a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based. This Company
shall, upon the written request at any time of the holder of the Warrant furnish
or cause to be furnished to such holder a like certificate setting forth (A)
such adjustment and readjustment, (B) the Exercise Price at the time in effect,
and (C) the number of shares of Common Stock and the amount, if any, of other
property which at the time would be received upon the exercise of the Warrant.

      3.7 Notices of Record Date. In the event of any taking by this Company of
a record of the holders of the Common Stock for the purpose of determining the
holders thereof who are entitled to receive any dividend (other than a cash
dividend) or other distribution, any right to subscribe for, purchase or
otherwise acquire any shares of stock of any class or any other securities or
property, or to receive any other right, this Company shall mail to the holder
of the Warrant at least 20 days prior to the date specified therein, a notice
specifying the date on which any such record is to be taken for the purpose of
such dividend, distribution or right, and the amount and character of such
dividend, distribution or right. In the event that any such record is to be
taken in connection with the liquidation, dissolution or winding up of the
Company, then, notwithstanding anything herein to the contrary, the Warrant, if
it is not then exercisable, shall become immediately exercisable on the date the
Company is required to mail such notice and such date shall be deemed the
"Commencement Date".

      4. Issue Tax. The issuance of certificates for the Warrant Shares upon the
exercise of the Warrant shall be made without charge to the holder of the
Warrant for any issue tax in respect thereof; provided, however, that the
Company shall not be required to pay any tax

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which may be payable in respect of any transfer involved in the issuance and
delivery of any certificate in a name other than that of the then holder of the
Warrant being exercised.

      5. No Voting or Dividend Rights; Limitation of Liability. Nothing
contained in this Warrant shall be construed as conferring upon the holder
hereof the right to vote or to consent or to receive notice as a stockholder in
respect of meetings of stockholders for the election of directors of the Company
or any other matters or any rights whatsoever as a stockholder of the Company.
Except for the adjustment to the Exercise Price pursuant to Section 3, in the
event of a dividend on the Common Stock payable in shares of Common Stock, no
dividends or interest shall be payable or accrued in respect of this Warrant or
the interest represented hereby or the shares purchasable hereunder until, and
only to the extent that, this Warrant shall have been exercised. No provisions
hereof, in the absence of affirmative action by the Holder to purchase shares of
Warrant Shares, and no mere enumeration herein of the rights or privileges of
the Holder hereof, shall give rise to any liability of such Holder for the
Exercise Price or as a stockholder of the Company whether such liability is
asserted by the Company or by its creditors.

      6. Restrictions on Transferability of Securities: Compliance With
Securities Act.

      6.1 Restrictions on Transferability. The Holder of this Warrant, by
acceptance hereof, agrees to comply in all respects with the provisions of this
Section 6. Neither this Warrant nor any of the rights, interests or obligations
hereunder may be transferred or assigned in an amount exercisable for less than
1,000 shares of Common Stock. Prior to any proposed transfer of this Warrant or
any Warrant Shares (collectively the "Securities"), unless there is in effect a
registration statement under the Securities Act covering the proposed transfer,
the Holder of such securities shall give written notice to the Company of such
Holder's intention to effect such transfer. Each such notice shall describe the
manner and circumstances of the proposed transfer in sufficient detail and shall
be accompanied by either (i) a written opinion of legal counsel who shall be
reasonably satisfactory to the Company addressed to the Company and reasonably
satisfactory in form and substance to the Company's counsel to the effect that
the proposed transfer of the Warrant and/or Warrant Shares may be effected
without registration under the Securities Act, or (ii) a "no action" letter from
the U.S. Securities and Exchange Commission (the "Commission") to the effect
that the transfer of such securities without registration will not result in a
recommendation by the staff of the Commission that enforcement action be taken
with respect thereto, whereupon (subject to the restrictions set forth in this
Section 6) the Holder of such securities shall be entitled to transfer such
securities in accordance with the terms of the notice delivered by the Holder to
the Company. Each new certificate evidencing the Warrant and/or Warrant Shares
so transferred shall bear the appropriate restrictive legends set forth in
Section 6.2 below, except that such certificate shall not bear such restrictive
legend if, in the opinion of counsel for the Company, such legend is not
required in order to establish or assist in compliance with any provisions of
the Securities Act or any applicable state securities laws.

      6.2 Restrictive Legend. Each certificate representing the Securities or
any other securities issued in respect of the Securities upon any stock split,
stock dividend, recapitalization, consolidation or similar event, shall be
stamped or otherwise imprinted with a

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legend substantially in the following form (in addition to any legend required
under applicable state securities laws):

      In the Case of Warrant and Warrant Shares:

            THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED
            FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
            OF 1933, AS AMENDED (THE "SECURITIES ACT"). THE SECURITIES MAY NOT
            BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS REGISTERED
            UNDER THE SECURITIES ACT AND QUALIFIED UNDER APPLICABLE STATE
            SECURITIES LAWS OR UNLESS SUCH SALE, TRANSFER, ASSIGNMENT OR
            HYPOTHECATION IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
            SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS OF APPLICABLE
            STATE SECURITIES LAWS OR UNLESS THE COMPANY RECEIVES AN OPINION OF
            COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND
            QUALIFICATION ARE NOT REQUIRED. THE SECURITIES REPRESENTED BY THIS
            CERTIFICATE AND THE RIGHTS OF HOLDERS (INCLUDING ANY FUTURE HOLDERS)
            THEREOF ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OTHER
            RESTRICTIONS.

      6.3 Exchange of Warrant. Subject to the terms and conditions hereof,
including the restrictions on transfer in this Section 6, upon surrender of this
Warrant to the Company with a duly executed Assignment Form in the form attached
hereto and funds sufficient to pay any transfer tax, the Company shall, without
charge, execute and deliver a new Warrant or Warrants of like tenor in the name
of the assignee named in such Assignment Form and this Warrant shall promptly be
canceled. The term "Warrant" as used herein shall be deemed to include any
Warrants issued in exchange for this Warrant.

      6.4 Ownership of Warrant. The Company may deem and treat the person in
whose name this Warrant is registered as the holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary, until presentation of this Warrant for registration of transfer
as provided in Section 6.

      7. Redemption. At any time eighteen (18) months after the Commencement
Date, this Warrant may be redeemed at the option of the Company at a redemption
price of $0.01 (subject to adjustment in good faith by the Company's Board of
Directors in the event of stock splits or other events described in Sections
3.2, 3.3 and 3.4) (the "Redemption Price"), per Warrant Share provided that (i)
the closing price per share of the Company's Common Stock shall have been
greater than or equal to $2.00 (subject to adjustment for reverse and forward
stock splits, stock dividends, stock combinations and other similar events with
respect to the Common Stock that occur after the Commencement Date) for each
Trading Day of any twenty (20) consecutive Trading Days and the average daily
trading volume of the Company's Common Stock shall have been greater than or
equal to 100,000 shares (a "Triggering Event")

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during a period ending within two (2) Trading Days prior to the Redemption
Notice Date (as defined below), (ii) during the period from the Redemption
Notice Date to the Redemption Date the Company shall have honored in accordance
with the terms of this Warrant all Forms of Subscription delivered by the
Redemption Date, (iii) during the period from the Redemption Notice Date to the
Redemption Date the Registration Statement shall be effective as to all Warrant
Shares and the prospectus thereunder available for use by the Holder for the
resale of all such Warrant Shares, and (iv) during the period from the
Redemption Notice Date to the Redemption Date the Common Stock shall be listed
or quoted for trading on the Trading Market. The Company shall provide written
notice of redemption which shall specify the Redemption Date (the "Notice of
Redemption") to the Holder not later than two (2) Trading Days after a
Triggering Event. On or after the date fixed for redemption (the "Redemption
Date") which shall be no less than thirty (30) days after the date that the
Notice of Redemption is sent to the Holder (the "Redemption Notice Date"), the
Holder shall have no rights with respect to this Warrant except to receive the
Redemption Price upon surrender of this Warrant Certificate.

      8. Amendments and Waiver. This Warrant may not be modified or amended
except by an instrument or instruments in writing signed by the Company and the
Holder of this Warrant. Either the Company or the Holder of this Warrant may, by
an instrument in writing, waive compliance by the other party with any term or
provision of this Warrant on the part of such other party hereto to be performed
or complied with. The waiver by any such party of a breach of any term or
provision of this Warrant shall not be construed as a waiver of any subsequent
breach.

      9. Notices. Any notice required to be given to the holder of the Warrant
shall be deemed given upon personal delivery to the party to be notified (or
upon the date of attempted delivery where delivery is refused) or, if sent by
telecopier, telex, telegram, or other facsimile means, upon receipt of
appropriate electronic confirmation successfully transmitted, or three days
after deposit with the United States Postal Service, by registered or certified
mail, postage prepaid, or one day after deposit with next day air courier, with
postage and fees prepaid and addressed to the holder of record at the address of
such holder appearing on the books of this Company.

      10. Attorneys Fees. If legal action is brought to enforce or interpret
this Warrant, the prevailing party shall be entitled to recover its reasonable
attorneys' fees and legal costs in connection therewith.

      11. Descriptive Headings and Governing Law. The descriptive headings of
the several sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. This Warrant shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the State of New York (without regard to its
conflicts of law provisions).

      12. Lost Warrants or Stock Certificates. The Company represents and
warrants to Holder that upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction, or mutilation of any Warrant or stock
certificate and, in the case of any such loss, theft or destruction, upon
receipt of an indemnity and, if requested, bond reasonably

                                     - 10 -
<PAGE>

satisfactory to the Company, or, in the case of any such mutilation, upon
surrender and cancellation of such Warrant or stock certificate, the Company at
its expense will make and deliver a new Warrant or stock certificate, of like
tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant or stock
certificate.

      13. Binding Effect; Benefits. This Warrant shall inure to the benefit of
and shall be binding upon the Company and the Holder and their respective heirs,
legal representatives, successors and assigns. Nothing in this Warrant,
expressed or implied, is intended to or shall confer on any person other than
the Company and the Holder, or their respective heirs, legal representatives,
successors or assigns, any rights, remedies, obligations or liabilities under or
by reason of this Warrant.

                                     - 11 -
<PAGE>

      IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its officers, thereunto duly authorized this ___ day of September, 2005.

                                          PowerHouse Technologies Group, Inc.

                                          By: __________________________________
                                               Name:  __________________________
                                               Title: __________________________

                                     - 12 -
<PAGE>

                              FORM OF SUBSCRIPTION

                  (To be signed only upon exercise of Warrant)

To:   PowerHouse Technologies Group, Inc.

      The undersigned, the Holder of the within Warrant, hereby irrevocably
elects to exercise such Warrant for, and to purchase thereunder,
________________ (________) shares of Common Stock of PowerHouse Technologies
Group, Inc. (the "Company"), and herewith makes payment in the amount of
$________ therefor or, subject to satisfaction of the conditions set forth in
Section 1.4 of the Warrant, by initial here _____, Holder elects to exercise
under the Net Issue Exercise provisions of Section 1.4 of the Warrant.

      The certificates for such shares should be issued in the name of, and
delivered to, ________________ whose address is:
________________________________________________________________________________
________________________________________________________________________________

      The undersigned represents, unless the exercise of this Warrant has been
registered under the Securities Act of 1933, as amended (the "Securities Act"),
that (i) the undersigned is acquiring such Common Stock for his or its own
account for investment and not with a view to or for sale in connection with any
distribution thereof (except for any resale pursuant to a registration statement
under the Securities Act), (ii) the undersigned has such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of the undersigned's investment in the shares of Common Stock,
(iii) the undersigned has received all of the information the undersigned
requested from the Company and the undersigned considers necessary or
appropriate for deciding whether to purchase the shares, (iv) the undersigned
has the ability to bear the economic risks of the undersigned's prospective
investment and (v) the undersigned is able, without materially impairing his
financial condition, to hold the shares of Common Stock for an indefinite period
of time and to suffer complete loss on the undersigned's investment.

DATED: _______________________________

                                          ______________________________________
                                          (Signature must conform in all
                                          respects to name of holder as
                                          specified on the face of the Warrant)

                                          ______________________________________
                                          ______________________________________
                                          (Address)

                                     - 13 -
<PAGE>

THIS WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT FILED UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER SUCH ACT.

                                 ASSIGNMENT FORM

               (To be executed only upon transfer of this Warrant)

      For value received, the undersigned registered holder of the within
Warrant hereby sells, assigns and transfers unto ____________________ (the
"Assignee") the right represented by such Warrant to purchase __________ Warrant
Shares and all other rights of the Warrantholder with respect thereto under the
within Warrant, and appoints _________________ as Attorney to make such transfer
on the books of PowerHouse Technologies Group, Inc. maintained for such purpose,
with full power of substitution in the premises.

      The undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the Warrant Shares to be issued upon exercise
hereof are being acquired for investment and that the Assignee will not offer,
sell or otherwise dispose of this Warrant or any Warrant Shares to be issued
upon exercise hereof except under circumstances that will not result in a
violation of the Securities Act of 1933, as amended, or any state securities
laws. Further, the Assignee has acknowledged that upon exercise of this Warrant,
the Assignee shall, if requested by the Company, confirm in writing, in a form
satisfactory to the Company, that the Warrant Shares so purchased are being
acquired for investment and not with a view toward distribution or resale.

Dated: _______________________________

                                          ______________________________________

                                          (Signature)

                                          ______________________________________
                                          (Print Name)

                                          ______________________________________
                                          (Street Address)

                                          ______________________________________
                                          (City) (State) (Zip Code)

[Medallion Guaranty]

                                     - 14 -<PAGE>

                                                                    EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement ("AGREEMENT") is entered into as of September
21, 2005, between PowerHouse Technologies Group, Inc., a Delaware corporation
with offices at 555 Twin Dolphin Drive, Suite 650, Redwood City, California,
94065 (the "COMPANY"), and each of the parties listed under "Purchasers" hereto
(each individually, the "PURCHASER" and collectively, the "PURCHASERS").

                              W I T N E S S E T H:

      WHEREAS, the Company has entered into those certain Common Stock and
Warrant Purchase Agreements, dated on or about the date hereof, by and between
the Company and certain of the Purchasers (the "PURCHASE AGREEMENT") of shares
(the "COMMON SHARES") of the Company's Common Stock, par value $0.0001 per share
(the "COMMON STOCK"), A Warrants (the "A WARRANTS") to purchase Common Shares,
subject to the terms and conditions set forth therein and B Warrants (the "B
WARRANTS") to purchase Common Shares, subject to the terms and conditions set
forth therein.

      WHEREAS, a condition to the issuance of the Common Shares and Warrants to
the Purchasers pursuant the Purchase Agreements is the conversion of the
outstanding shares of the Series A Senior Preferred Stock of the Company (the
"SENIOR PREFERRED STOCK") into Common Shares.

      WHEREAS, a condition to the issuance of the Common Shares, A Warrants and
B Warrants to the Purchasers pursuant the Purchase Agreements is the conversion
or redemption of the Company's outstanding Secured Convertible Promissory Notes,
each dated June 9, 2005 (the "NOTES"), into Common Shares, A Warrants and B
Warrant pursuant to the Purchase Agreement and the termination of the Series A
Senior Preferred Equity Security Agreement dated as of April 23, 2004. Whereas
the Notes provide for the issuance of additional A Warrants and B Warrant to the
Note holders upon such conversion (the "ADDITIONAL WARRANTS", together with the
A Warrants and the B Warrants, the "WARRANTS"). The Common Shares and Warrants
are collectively referred to as the "SECURITIES".

      NOW, THEREFORE, in consideration of the mutual promises, representations,
warranties, covenants and conditions set forth in the Purchase Agreement, the
Warrants and this Agreement, the Company and each Purchaser agree as follows:

            1. Certain Definitions. Unless defined herein, capitalized terms
used herein and not otherwise defined shall have the meaning ascribed thereto in
the Purchase Agreement, the Note or Warrant, as the case may be. As used in this
Agreement, the following terms shall have the following respective meanings:

      "CLOSING DATE" shall have the meaning ascribed to it in the Purchase
Agreement.

      "COMMISSION" or "SEC" shall mean the Securities and Exchange Commission or
any other federal agency at the time administering the Securities Act.

<PAGE>

      "HOLDER" and "HOLDERS" shall include each Purchaser and any permitted
transferee or transferees of Registrable Securities (as defined below) and the
Securities which have not been sold to the public to whom the registration
rights conferred by this Agreement have been transferred in compliance with this
Agreement and/or the Purchase Agreement.

      The terms "REGISTER," "REGISTERED" and "REGISTRATION" shall refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act and applicable rules and regulations
thereunder, and the declaration or ordering of the effectiveness of such
registration statement.

      "REGISTRABLE SECURITIES" shall mean: (i) the Common Shares (without regard
to any limitations on beneficial ownership contained in the Warrants) or other
securities issued or issuable to each Holder or its permitted transferee or
designee (a) upon conversion of the Warrants, or (b) upon any distribution with
respect to, any exchange for or any replacement of a Warrant, or (c) upon any
conversion, exercise or exchange of any securities issued in connection with any
such distribution, exchange or replacement, (ii) securities issued or issuable
upon any stock split, stock dividend, recapitalization or similar event with
respect to the foregoing; (iii) securities issued or issuable as payment in
accordance with the terms of the Purchase Agreement or this Agreement; and (iv)
any other security issued as a dividend or other distribution with respect to,
in exchange for or in replacement of the securities referred to in the preceding
clauses; provided that all such shares shall cease to be Registrable Securities
at such time as they have been sold under a Registration Statement or pursuant
to Rule 144 under the Securities Act or otherwise or at such time as they are
eligible to be sold pursuant to Rule 144(k). For purposes of this Agreement, the
terms "Registrable Securities" and "Common Shares" shall include any shares of
the Company's Common Stock that are issued pursuant to the terms of that certain
Placement Agent Common Stock Purchase Warrant of even date herewith between the
Company and C.E. Unterberg Towbin, LLC.

      "REGISTRATION EXPENSES" shall mean all expenses, exclusive of underwriting
discounts and commissions, to be incurred in connection with each Holder's
registration rights under this Agreement not included in Selling Expenses,
including, without limitation, all registration and filing fees, printing
expenses, fees and disbursements of counsel for the Company and one counsel for
the Holders, blue sky fees and expenses, and the expense of any special audits
incident to or required by any such registration (but excluding the compensation
of regular employees of the Company, which shall be paid in any event by the
Company).

      "REGISTRATION STATEMENT" shall have the meaning set forth in Section 2(a)
herein.

      "REGULATION D" shall mean Regulation D as promulgated pursuant to the
Securities Act, and as subsequently amended.

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

      "SELLING EXPENSES" shall mean all underwriting discounts and selling
commissions applicable to the sale of Registrable Securities.

            2. Registration Requirements. The Company shall use its best efforts
to effect the registration of the Registrable Securities (including, without
limitation, the execution

                                       2
<PAGE>

of an undertaking to file post-effective amendments, appropriate qualification
under applicable blue sky or other state securities laws and appropriate
compliance with applicable regulations issued under the Securities Act) as would
permit or facilitate the sale or distribution of all the Registrable Securities
in the manner (including manner of sale) and in all states reasonably requested
by the Holder. Such best efforts by the Company shall include, without
limitation, the following:

            (a) The Company shall, as expeditiously as possible after the
Closing Date:

                  (i) But in any event by the later of September [__], 2005, or
      thirty (30) calendar days after the Closing Date ("REQUIRED FILING DATE"),
      prepare and file a registration statement with the Commission pursuant to
      Rule 415 under the Securities Act on Form SB-2 under the Securities Act
      (or in the event that the Company is ineligible to use such form, such
      other form as the Company is eligible to use under the Securities Act
      provided that such other form shall be converted into an SB-2 as soon as
      Form SB-2 becomes available to the Company) covering resales by the
      Holders as selling stockholders (not underwriters) of the Registrable
      Securities ("REGISTRATION STATEMENT"), which Registration Statement, to
      the extent allowable under the Securities Act and the rules promulgated
      thereunder (including Rule 416), shall state that such Registration
      Statement also covers such indeterminate number of additional shares of
      Common Stock as may become issuable upon exercise of the Warrants. The
      number of shares of Common Stock initially included in such Registration
      Statement shall be no less than the sum of 1.5 times the number of
      Registrable Securities as of the Closing Date. Thereafter the Company
      shall use its best efforts to cause such Registration Statement and other
      filings to be declared effective as soon as possible, and in any event at
      5:00 p.m. (New York City time) on the date the Registration Statement is
      declared effective and no later than (i) the 90th calendar day following
      the Closing Date or (ii) if the Registration Statement receives SEC
      review, then the one hundred twentieth (120th) calendar day after the
      Closing Date (the "REQUIRED EFFECTIVE DATE"). Without limiting the
      foregoing, the Company will promptly respond to all SEC comments,
      inquiries and requests, and shall request acceleration of effectiveness at
      the earliest possible date.

                  (ii) Prepare and file with the SEC such amendments and
      supplements to such Registration Statement and the prospectus used in
      connection with such Registration Statement as may be necessary to comply
      with the provisions of the Securities Act with respect to the disposition
      of all securities covered by such Registration Statement and notify the
      Holders of the filing and effectiveness of such Registration Statement and
      any amendments or supplements.

                  (iii) By 9:00 a.m. (New York City time) on the first business
      day after the effectiveness of the Registration Statement or the filing
      date of any amendments or supplements, as the case may be, furnish, by
      email to the

                                       3
<PAGE>

      respective email addresses set forth on the signature pages hereto, to
      each Holder that has Common Shares included in the Registration Statement
      such numbers of copies of a current prospectus conforming with the
      requirements of the Securities Act, copies of the Registration Statement,
      any amendment or supplement thereto and any documents incorporated by
      reference therein and such other documents as such Holder may reasonably
      request in order to facilitate the disposition of Registrable Securities
      owned by such Holder.

                  (iv) Register and qualify the securities covered by such
      Registration Statement under the securities or "Blue Sky" laws of all
      domestic jurisdictions; provided that the Company shall not be required in
      connection therewith or as a condition thereto to qualify to do business
      or to file a general consent to service of process in any such states or
      jurisdictions.

                  (v) Notify promptly each Holder that has Registrable
      Securities included in the Registration Statement of the happening of any
      event (but not the substance or details of any such event) of which the
      Company has knowledge as a result of which the prospectus (including any
      supplements thereto or thereof) included in such Registration Statement,
      as then in effect, includes an untrue statement of material fact or omits
      to state a material fact required to be stated therein or necessary to
      make the statements therein not misleading in light of the circumstances
      then existing (each an "EVENT"), and use its best efforts to promptly
      update and/or correct such prospectus. Each Holder will hold in confidence
      and will not make any disclosure of any such Event and any related
      information disclosed by the Company.

                  (vi) Notify each Holder of the issuance by the Commission or
      any state securities commission or agency of any stop order suspending the
      effectiveness of the Registration Statement or the threat or initiation of
      any proceedings for that purpose. The Company shall use its best efforts
      to prevent the issuance of any stop order and, if any stop order is
      issued, to obtain the lifting thereof at the earliest possible time.

                  (vii) List the Registrable Securities covered by such
      Registration Statement with all securities exchange(s) and/or markets on
      which the Common Stock is then listed and prepare and file any required
      filings with the Over The Counter Bulletin Board (the "OTCBB"), if any, or
      any other exchange or market where the Common Shares are traded.

                  (viii) Take all steps reasonably necessary to enable Holders
      to avail themselves of the prospectus delivery mechanism set forth in Rule
      153 (or successor thereto) under the Act.

            (b) Notwithstanding the obligations under Section 2(a)(v) or any
provision of this Agreement, if (i) in the good faith judgment of the Company,
following consultation with legal counsel, it would be detrimental to the
Company and its stockholders for resales of Registrable Securities to be made
pursuant to the Registration Statement due to the existence of a

                                       4
<PAGE>

material development or potential material development involving the Company
that the Company would be obligated to disclose in the Registration Statement,
which disclosure would be premature or otherwise inadvisable at such time or
would have a material adverse effect upon the Company and its stockholders, or
(ii) in the good faith judgment of the Company, it would adversely affect or
require premature disclosure of the filing of a Company-initiated registration
of any class of its equity securities, then the Company will have the right to
suspend the use of the Registration Statement for one period of not more than 20
calendar days in any 12 month period, but only if the Company reasonably
concludes, after consultation with outside legal counsel, that the failure to
suspend the use of the Registration Statement as such would create a material
liability or violation under applicable securities laws or regulations.

            (c) Set forth below in this Section 2(c) are (I) events that may
arise that the Purchasers consider will interfere with the full enjoyment of
their rights under this Agreement, the Purchase Agreement and the Warrants (the
"INTERFERING EVENTS"), and (II) certain remedies applicable in each of these
events.

                  (i) Payments by the Company. If (i) at any time after
      effectiveness of the Registration Statement, sales thereunder during the
      registration period (as described in Section 5) cannot be made for any
      reason, other than by reason of the operation of Section 2(b), for a
      period of more than 10 consecutive business days, (ii) at any time after
      effectiveness of the Registration Statement, sales thereunder during the
      Registration Period cannot be made for a period of time that exceeds the
      limitations set forth in Section 2(b), or (iii) at any time the Common
      Shares are not listed or included for quotation on the OTCBB or other
      exchange or market where shares of the Company's common stock are then
      traded for more than 10 consecutive calendar days, then the Company will
      thereafter make a payment to each Holder equal to 3% of the purchase price
      paid for (1) the Common Shares and Warrants then held by the Holder and
      (2) Common Shares obtained upon exercise of the Warrants for each 30
      business days that either (i) sales cannot be made under the effective
      Registration Statement or (ii) the Common Shares are not listed or
      included for quotation on the OTCBB or other exchange or market where
      shares of the Company's Common Stock are then traded; provided however,
      that any calendar day on which both conditions exist shall count as a
      single calendar day and no calendar day taken into account for purposes of
      determining whether any payment is due under Section 2 (c)(ii) shall be
      taken into account for purposes of determining whether any payment is due
      under this Section 2(c)(i) or the amount of such payment). The Company
      shall have the option, in its sole discretion, to pay the partial
      liquidated damages amount for each of the first three months with
      additional shares of Common Stock, with the price of each such additional
      share of Common Stock to be deemed equal to average closing price per
      share of the Company's Common Stock as quoted on the OTCBB for each such
      30 business day period, or portion thereof. The number of shares not
      previously sold as specified in the previous sentence shall be determined
      as of the end of the respective 30-business day period. In no event shall
      payment pursuant to this Section exceed 30% in the aggregate of the
      purchase price paid for (i) the Common Shares and Warrants then held by
      the Holder and (ii) Common Shares

                                       5
<PAGE>

      obtained upon conversion of the Notes or Preferred Stock or exercise of
      the Warrants (including such Holder's predecessors and successors) for the
      entire registration period (as described in Section 5). These payments
      will be prorated on a daily basis during the 30-business day period and
      will be paid to each Holder within ten business days following the end of
      each 30- business day period as to which payment is due hereunder provided
      that the respective Holder delivered to the Company at least two business
      days prior thereto information with respect to the number of Common Shares
      and Warrants not previously sold by such Holder (together with reasonable
      supporting documentation). The Holders may make a claim for additional
      damages as a remedy for the Company's failure to comply with the timelines
      set forth in this Section, but acknowledgement of such right in this
      Agreement shall not constitute an admission by the Company that any such
      damages exist or may exist. Nothing contained in the preceding sentence
      shall be read to limit the ability of the Holders to seek specific
      performance of this Agreement. Notwithstanding the foregoing, if the
      Holders are no longer entitled to receive payments as a result of the
      above-described percentage limitation on said payments, then each Holder
      shall have the right, at any time upon at least thirty (30) calendar days
      written notice, to sell all (but not less than all) of its Common Shares
      (including Common Shares issued on exercise of the Warrants) to the
      Company for a cash purchase price equal to the purchase price paid for
      such Common Shares.

                  (ii) Effect of Late Registration. If the Registration
      Statement related to a Holder's Common Shares has not been filed by the
      Required Filing Date or has not been declared effective by the Required
      Effective Date related to such Holder, then the Company will make a
      payment to such Holder for either such delay (each a "LATE REGISTRATION
      PAYMENT"). Each Late Registration Payment will be equal to 3% of the
      purchase price paid for (i) the Common Shares and Warrants then held by
      the Holder and not sold by the Holder and (ii) Common Shares obtained by
      such Holder upon exercise of the Warrants for the first 30 business days
      after the Required Filing Date or Required Effective Date, as the case may
      be, and 3% of such purchase price for each period of 30 business days
      thereafter (but no business day taken into account for purposes of
      determining whether any payment is due under Section 2(c)(i) shall be
      taken into account for purposes of determining whether any payment is due
      under this Section 2(c)(ii) or the amount of such payment). The Company
      shall have the option, in its sole discretion, to pay the Late
      Registration Payment for each of the first three months with additional
      shares of Common Stock, with the price of each such additional share of
      Common Stock to be deemed equal to average closing price per share of the
      Company's Common Stock as quoted on the OTCBB for each such 30 business
      day period, or portion thereof. In no event shall payment pursuant to this
      Section exceed 30% in the aggregate of the purchase price paid for (i) the
      Common Shares and Warrants then held by the Holder and (ii) Common Shares
      obtained upon conversion of the Notes or Preferred Stock or exercise of
      the Warrants (including such Holder's predecessors and successors) for the
      entire registration period (as described in Section 5). The Late
      Registration Payments will be prorated on a daily basis during the
      30-business day period and

                                       6
<PAGE>

      will be paid to the initial Holders within ten business days following the
      end of each 30-business day period as to which payment is due hereunder,
      provided that the respective Holder delivered to the Company at least two
      business days prior thereto information with respect to the number of
      Common Shares and Warrants not previously sold by such Holder (together
      with reasonable supporting documentation). The Holders may make a claim
      for additional damages as a remedy for the Company's failure to comply
      with the timelines set forth in this Section, but acknowledgement of such
      right in this Agreement shall not constitute an admission by the Company
      that any such damages exist or may exist. Nothing contained in the
      preceding sentence shall be read to limit the ability of the Holders to
      seek specific performance of this Agreement. Notwithstanding the
      foregoing, if the Holders are no longer entitled to receive Late
      Registration Payments as a result of the above-described percentage
      limitation on said payments, then each Holder shall have the right, at any
      time upon at least thirty (30) calendar days written notice, to sell all
      (but not less than all) of its Common Shares (including Common Shares
      issued on exercise of the Warrants) to the Company for a cash purchase
      price equal to the purchase price paid for such Common Shares.

                  (d) If at any time subsequent to the date such Registration
Statement is declared effective, the number of shares of Common Stock registered
for resale pursuant to the Registration Agreement is not equal to at least 100%
of the Registrable Securities, the Company shall amend the Registration
Statement to add such additional securities. In the event that the Company is
unable under the securities laws to add such additional securities to the then
effective Registration Statement, the Company shall promptly file, in accordance
with the procedures set forth herein, an additional Registration Statement with
respect to such newly Registrable Securities. The Company shall use its best
efforts to cause any such additional Registration Statement, when filed, to
become effective within 30 calendar days of that date that the need to file the
Registration Statement arose. All of the registration rights and remedies under
this Agreement shall apply to the registration of such newly reserved shares and
such new Registrable Securities.

                  (e) If at any time during the term of this Agreement, the
registration statement described in Section 2(a) is not effective with respect
to some or all of the Registrable Securities, each Purchaser shall have the
following "piggyback" registration rights. If the Company at any time following
the Closing Date proposes for any reason to register Common Shares under the
Securities Act (other than registrations relating to employee benefit plans,
business combinations or other registrations on Form S-4 or Form S-8 promulgated
under the Securities Act or any successor forms thereto), it shall promptly give
written notice to each Purchaser of its intention to so register such equity
securities and, upon the written request, given within 20 calendar days after
delivery of such notice by the Company, of such Purchaser to include in such
registration Registrable Securities held by such Purchaser (which request shall
specify the number of Registrable Shares proposed to be included in such
registration by such Purchaser and shall state the intended method of
disposition of such Registrable Securities by such Purchaser), the Company shall
use its best efforts to cause all such Registrable Securities to be included in
such registration on the same terms and conditions as the securities otherwise
being sold in such registration; provided, however, that the Company shall have
the right to delay such a registration under customary circumstances for a
period not in excess of 90 calendar

                                       7
<PAGE>

days each in any twelve month period and if the managing underwriter advises the
Company in writing that the inclusion of all Registrable Securities proposed to
be included in such registration would interfere materially with the successful
marketing (including pricing) of primary shares (the "PRIMARY SHARES") proposed
to be registered by the Company, then the number of Primary Shares and
Registrable Securities proposed to be included in such registration shall be
included in the following order:

                  (i) first, the Primary Shares; and

                  (ii) second, the Registrable Securities requested to be
      included in such registration pursuant to this Section 2(e)

provided, that in the case of any such underwritten offering of Common Shares by
the Company that is in satisfaction of a demand registration pursuant to Section
2(f), the order for inclusion of Primary Shares and Registrable Securities shall
be as set forth in that section. In no event shall the number of shares to be
sold by the Purchasers be less than 25% of the total amount of securities
included for securities holders in the registration. No shareholder of the
Company shall be granted piggyback registration rights that would reduce the
number of shares that may be included by the holders of the Registrable
Securities in such registration without the consent of the holders of at least
two-thirds of the Registrable Securities.

                  (f) If at any time during the period beginning 120 calendar
days after the Closing Date and ending two years after the Closing Date, the
registration statement described in Section 2(a) is not effective with respect
to some or all of the Registrable Securities, Purchasers who collectively hold
more than $500,000 in value of the Registrable Securities shall have the
following demand registration rights. If the Company shall be requested in
writing by an eligible Purchaser, or eligible Purchasers, to effect a
registration on Form S-1, or on Form SB-1 if the Company is so eligible, under
the Securities Act of Registrable Securities, then the Company shall promptly
use its best efforts to effect such registration under the Securities Act of
such Registrable Securities which the Company has been so requested to register
in the manner described in Section 2(a); provided, however, that the Company
shall not be obligated to effect any registration under this Section 2(f) except
in accordance with the following provisions:

                  (i) The Company shall not be obligated to use its best efforts
      to file and cause to become effective (x) more than two registration
      statements on Form S-1 with respect to Registrable Securities initiated by
      Purchasers pursuant to this Section 2(f); (y) any registration statement
      covering less than $500,000 in value of Registrable Securities; or (z) any
      registration statement during any period in which any other registration
      statement pursuant to which Common Shares are to be or were sold has been
      filed and not withdrawn or has been declared effective within the prior 60
      calendar days;

                  (ii) The Company may delay the filing or effectiveness of any
      registration statement for a period of up to 60 calendar days after the
      date of a request for registration pursuant to this Section 2(f) if the
      Company determines in good faith that (A) it is in possession of material,
      non-public information concerning an acquisition, merger,

                                       8
<PAGE>

      recapitalization, consolidation, reorganization or other material
      transaction by or of the Company or concerning pending or threatened
      litigation and (B) disclosure of such information would jeopardize any
      such transaction or litigation or otherwise materially harm the Company;
      provided, however, that the Company may not exercise such deferral right
      more than once in any twelve month-period.

                  (g) At such time as the Company shall have qualified for the
use of Form S-3 promulgated under the Securities Act or any successor form
thereto, the Purchasers shall have the right to request in writing registrations
on Form S-3 or such successor form of Registrable Shares held by Purchasers in
the manner described in Section 2(a), which request or requests shall (i)
specify the number of Registrable Shares held by the requesting Purchasers
intended to be sold or disposed of, (ii) state the intended method of
disposition of such Registrable Shares held by Purchasers and (iii) relate to
Registrable Shares having an anticipated aggregate offering price of at least
$500,000. A requested registration on Form S-3 or any such successor form in
compliance with Section 4 shall not count as a registration statement initiated
pursuant to Section 2(f) but shall otherwise be treated as a registration
statement initiated pursuant to, and shall, except as otherwise expressly
provided in Section 4, be subject to Section 2. In no event will any Purchaser
be entitled to demand any registration on Form S-3 if the registration would
require filing under Blue Sky or similar state securities laws in any
jurisdiction in which the Company would be required to qualify to do business or
execute a general consent to service of process to effect such registration and
filing.

            3. Expenses of Registration. All Registration Expenses in connection
with any registration, qualification or compliance with registration pursuant to
this Agreement shall be borne by the Company, and all Selling Expenses of a
Holder shall be borne by such Holder.

            4. Registration on Form SB-2. The Company shall use its reasonable
best efforts to continue to meet the "registrant eligibility" requirements for a
secondary offering set forth in the general instructions to Form SB-2 or any
comparable or successor form or forms, or in the event that the Company is
ineligible to use such form, such form as the Company is eligible to use under
the Securities Act, provided that if such other form is used, the Company shall
convert such other form to a Form SB-2 as soon as the Company becomes so
eligible.

            5. Registration Period. In the case of the registration effected by
the Company pursuant to this Agreement, the Company shall keep such registration
effective and current until the later of (a) the date on which all the Holders
have completed the sales or distribution described in the Registration Statement
relating thereto or, if earlier until such Registrable Securities may be sold by
the Holders under Rule 144(k) (provided that the Company's transfer agent has
accepted an instruction from the Company to such effect) or (b) the second (2nd)
anniversary of the Closing Date.

            6. Indemnification.

                  (a) Company Indemnity. The Company will indemnify each Holder,
each of its officers, directors, agents and partners, and each person
controlling each of the foregoing, within the meaning of Section 15 of the
Securities Act and the rules and regulations thereunder with respect to which
registration, qualification or compliance has been effected pursuant to this

                                       9
<PAGE>

Agreement, and each underwriter, if any, and each person who controls, within
the meaning of Section 15 of the Securities Act and the rules and regulations
thereunder, any underwriter, against all claims, losses, damages and liabilities
(or actions in respect thereof) arising out of or based on any untrue statement
(or alleged untrue statement) of a material fact contained in any final
prospectus (as amended or supplemented if the Company files any amendment or
supplement thereto with the SEC), Registration Statement filed pursuant to this
Agreement or any post-effective amendment thereof or based on any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the
circumstances under which they were made, or any violation by the Company of the
Securities Act or any state securities law or in either case, any rule or
regulation thereunder applicable to the Company and relating to action or
inaction required of the Company in connection with any such registration,
qualification or compliance, and will reimburse each Holder, each of its
officers, directors, agents and partners, and each person controlling each of
the foregoing, for any reasonable legal fees of a single counsel and any other
expenses reasonably incurred in connection with investigating and defending any
such claim, loss, damage, liability or action, provided that the Company will
not be liable in any such case to a Holder to the extent that any such claim,
loss, damage, liability or expense arises out of or is based on (i) any untrue
statement or omission based upon written information furnished to the Company by
such Holder or underwriter (if any) therefor and stated to be specifically for
use therein, (ii) any failure by any Holder to comply with prospectus delivery
requirements or the Securities Act or Exchange Act or any other law or legal
requirement applicable to them or any covenant or agreement contained in the
Purchase Agreement or this Agreement or (iii) an offer of sale of Common Shares
occurring during a period in which sales under the Registration Statement are
suspended as permitted by this Agreement. The indemnity agreement contained in
this Section 6(a) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Company (which consent will not be unreasonably withheld).

                  (b) Holder Indemnity. Each Holder will, severally but not
jointly, if Registrable Securities held by it are included in the securities as
to which such registration, qualification or compliance is being effected,
indemnify the Company, each of its directors, officers, agents and partners, and
any other stockholder selling securities pursuant to the Registration Statement
and any of its directors, officers, agents, partners, and any person who
controls such stockholder within the meaning of the Securities Act or Exchange
Act and each underwriter, if any, of the Company's securities covered by such a
Registration Statement, each person who controls the Company or such underwriter
within the meaning of Section 15 of the Securities Act and the rules and
regulations thereunder, each other Holder (if any), and each of their officers,
directors and partners, and each person controlling such other Holder(s) against
all claims, losses, damages and liabilities (or actions in respect thereof)
arising out of or based on any untrue statement (or alleged untrue statement) of
a material fact contained in any such final prospectus (as amended or
supplemented if the Company files any amendment or supplement thereto with the
SEC), Registration Statement filed pursuant to this Agreement or any
post-effective amendment thereof or based on any omission (or alleged omission)
to state therein a material fact required to be stated therein or necessary to
make the statement therein not misleading in light of the circumstances under
which they were made, and will reimburse the Company and such other Holder(s)
and their directors, officers and partners, underwriters or control persons for
any reasonable legal fees or any other expenses reasonably incurred in

                                       10
<PAGE>

connection with investigating and defending any such claim, loss, damage,
liability or action, in each case to the extent, but only to the extent, that
such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such final prospectus (as amended or supplemented if the
Company files any amendment or supplement thereto with the SEC), Registration
Statement filed pursuant to this Agreement or any post-effective amendment
thereof in reliance upon and in conformity with written information furnished to
the Company by such Holder and stated to be specifically for use therein, and
provided that the maximum amount for which such Holder shall be liable under
this indemnity shall not exceed the net proceeds received by such Holder from
the sale of the Registrable Securities pursuant to the registration statement in
question. The indemnity agreement contained in this Section 6(b) shall not apply
to amounts paid in settlement of any such claims, losses, damages or liabilities
if such settlement is effected without the consent of such Holder (which consent
shall not be unreasonably withheld).

                  (c) Procedure. Each party entitled to indemnification under
this Section 6 (the "INDEMNIFIED PARTY") shall give notice to the party required
to provide indemnification (the "INDEMNIFYING PARTY") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim in any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or any
litigation resulting therefrom, shall be approved by the Indemnified Party
(whose approval shall not be unreasonably withheld), and the Indemnified Party
may participate in such defense at its own expense, and provided further that
the failure of any Indemnified Party to give notice as provided herein shall not
relieve the Indemnifying Party of its obligations under this Section 6 except to
the extent that the Indemnifying Party is materially and adversely affected by
such failure to provide notice. No Indemnifying Party, in the defense of any
such claim or litigation, shall, except with the consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement which does
not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect
to such claim or litigation. Each Indemnified Party shall furnish such
non-privileged information regarding itself or the claim in question as an
Indemnifying Party may reasonably request in writing and as shall be reasonably
required in connection with the defense of such claim and litigation resulting
therefrom.

            7. Contribution. If the indemnification provided for in Section 6
herein is unavailable to the Indemnified Parties in respect of any losses,
claims, damages or liabilities referred to herein (other than by reason of the
exceptions provided therein), then each such Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such losses, claims, damages or
liabilities as between the Company on the one hand and any Holder(s) on the
other, in such proportion as is appropriate to reflect the relative fault of the
Company and of such Holder(s) in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities, as well as any
other relevant equitable considerations. The relative fault of the Company on
the one hand and of any Holder(s) on the other shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied by the Company or by such Holder(s).

      In no event shall the obligation of any Indemnifying Party to contribute
under this

                                       11
<PAGE>

Section 7 exceed the amount that such Indemnifying Party would have been
obligated to pay by way of indemnification if the indemnification provided for
under Section 6(a) or 6(b) hereof had been available under the circumstances.

      The Company and the Holders agree that it would not be just and equitable
if contribution pursuant to this Section 7 were determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or
by any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraphs. The amount
paid or payable by an Indemnified Party as a result of the losses, claims,
damages and liabilities referred to in the immediately preceding paragraphs
shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses reasonably incurred by such Indemnified Party in
connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section, no Holder shall be required to
contribute any amount in excess of the amount by which in the case of any
Holder, the net proceeds received by such Holder from the sale of Registrable
Securities pursuant to the registration statement in question. No person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.

            8. Survival. The indemnity and contribution agreements contained in
Sections 6 and 7 shall remain operative and in full force and effect regardless
of (i) any termination of this Agreement or the Purchase Agreement, and (ii) the
consummation of the sale or successive resales of the Registrable Securities.

            9. Information by Holders. As a condition to the obligations of the
Company to complete any registration pursuant to this Agreement with respect to
the Registrable Securities of each Holder, such Holder will furnish to the
Company such information regarding itself, the Registrable Securities held by it
and the intended methods of disposition of the Registrable Securities held by it
as is reasonably required by the Company to effect the registration of the
Registrable Securities. At least five business days prior to the first
anticipated filing date of a Registration Statement for any registration under
this Agreement, the Company will notify each Holder of the information the
Company requires from that Holder whether or not such Holder has elected to have
any of its Registrable Securities included in the Registration Statement.

            10. Further Assurances. Each Holder will cooperate with the Company,
as reasonably requested by the Company, in connection with the preparation and
filing of any Registration Statement hereunder, unless such Holder has notified
the Company in writing of such Holder's irrevocable election to exclude all of
such Holder's Registrable Securities from such Registration Statement.

            11. Suspension of Sales. Upon receipt of any notice from the Company
under Section 2(a)(v) or 2(b), each Holder will immediately discontinue
disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities until (i) it receives copies of a
supplemented or amended prospectus contemplated by Sections 2(a)(v) or (ii) the
Company advises the Holder that a suspension of sales under Section 2(b) has
terminated. If so directed by the Company, each Holder will deliver to the
Company (at the expense of the Company)

                                       12
<PAGE>

or destroy all copies in the Holder's possession (other than a limited number of
file copies) of the prospectus covering such Registrable Securities that is
current at the time of receipt of such notice.

            12. Replacement Certificates. The certificate(s) representing the
Registrable Securities held by a Purchaser (or then Holder) may be exchanged by
such Purchaser (or such Holder) at any time and from time to time for
certificates with different denominations representing an equal aggregate number
of Common Shares, as reasonably requested by such Purchaser (or such Holder)
upon surrendering the same. No service charge will be made for such registration
or transfer or exchange. Upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of the Note or
certificates for the underlying Common Shares of any of the foregoing, and, in
the case of loss, theft or destruction, of indemnity reasonably satisfactory to
it, or upon surrender and cancellation of such certificate if mutilated, the
Company will make and deliver a new Note or certificate of like tenor and dated
as of such cancellation at no charge to the holder.

            13. Transfer or Assignment. Except as otherwise provided herein,
this Agreement shall be binding upon and inure to the benefit of the parties and
their successors and permitted assigns. The rights granted to each Purchaser by
the Company under this Agreement to cause the Company to register Registrable
Securities, and all other rights granted to any Purchaser by the Company
hereunder, may be transferred or assigned (in whole or in part) by such
Purchaser to (i) any partner or retired partner of such Purchaser, if such
Purchaser is a partnership, (ii) any family member of such Purchaser or trust
for the benefit thereof or of such Purchaser; or (iii) any transferee from such
Purchaser of at least 5,000 shares of Registrable Securities; provided in each
case that (i) the Company is given written notice by the Purchaser at the time
of or within a reasonable time after such transfer or assignment, stating the
name and address of said transferee or assignee and identifying the securities
with respect to which such registration rights are being transferred or
assigned; and provided further that the transferee or assignee of such rights
agrees in writing to be bound by the registration provisions of this Agreement,
(ii) such transfer or assignment is not made under the Registration Statement or
Rule 144, (iii) such transfer is made according to the applicable requirements
of the Purchase Agreement, (iv) the transferee has provided to the Company an
investor questionnaire (or equivalent document) evidencing that the transferee
is a "qualified institutional buyer" or an "accredited investor" defined in Rule
501(a)(1),(2),(3), or (7) of Regulation D, and (v) no transfer is made to any
former director or officer of Agate or any competitor of the Company, as listed
on Schedule A attached hereto.

            14. Miscellaneous.

                  (a) Remedies. The Company and each Purchaser acknowledge and
agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Agreement and to enforce specifically the
terms and provisions hereof, this being in addition to any other remedy to which
any of them may be entitled by law or equity.

                  (b) Notices. Any notice or other communication required or
permitted to be given hereunder shall be in writing by facsimile, mail or
personal delivery and shall be

                                       13
<PAGE>

effective upon actual receipt of such notice. The addresses for such
communications shall be:

      to the Company:

      PowerHouse Technologies Group, Inc.

                 PowerHouse Technologies Group, Inc.
                 555 Twin Dolphin Drive, Suite 650
                 Redwood City, California, 94065
                 Facsimile:  (650) 232-2699
                 Attn:  Jay Elliot, CEO

      with a copy to:

                 Cadwalader, Wickersham & Taft
                 100 Maiden Lane
                 New York, NY  10038-4892
                 Facsimile:  (212) 504-6666
                 Attn:  Gerald A. Eppner, Esq.

      If to the Purchasers, to the respective addresses set forth on Schedule I
      to the applicable Purchase Agreement

      with a copy to:

                 C.E. Unterberg, Towbin
                 350 Madison Avenue
                 New York, New York
                 Facsimile: (212) 389-8810
                 Attention:  Jennifer Buckley

                 and

                 Pillsbury Winthrop Shaw Pittman LLP
                 2475 Hanover Street
                 Palo Alto, California 94304-1115
                 Facsimile:  (650) 233-4545
                 Attention:  Gabriella A. Lombardi

Any party hereto may from time to time change its address for notices by giving
at least five calendar days' written notice of such changed address to the other
parties hereto.

                  (c) Waivers. No waiver by any party of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of
any party to exercise any right hereunder in any manner impair the

                                       14
<PAGE>

exercise of any such right accruing to it thereafter. The representations and
warranties and the agreements and covenants of the Company and each Purchaser
contained herein shall survive the Closing.

                  (d) Execution in Counterpart. This Agreement may be executed
in two or more counterparts, all of which shall be considered one and the same
agreement, it being understood that all parties need not sign the same
counterpart.

                  (e) Signatures. Facsimile signatures shall be valid and
binding on each party submitting the same.

                  (f) Entire Agreement; Amendment. This Agreement, together with
the Purchase Agreement, the Warrants and the agreements and documents
contemplated hereby and thereby, contains the entire understanding and agreement
of the parties, and may not be amended, modified or terminated except by a
written agreement signed by the Company plus the Holders of 67% of the
Registrable Securities (determined on a fully-diluted, as converted basis).

                  (g) Governing Law. This Agreement and the validity and
performance of the terms hereof shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts executed and to
be performed entirely within such state, except to the extent that the law of
the State of Delaware regulates the Company's issuance of securities.

                  (h) Jury Trial. EACH PARTY HERETO WAIVES THE RIGHT TO A TRIAL
BY JURY.

                  (i) Titles. The titles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this
Agreement.

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

                                       15
<PAGE>

            IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
executed as of the date first written above.

                       COMPANY:

                       POWERHOUSE TECHNOLOGIES GROUP, INC.

                       By: ___________________________________
                             Jay Elliot
                             Chief Executive Officer

                                       16
<PAGE>

                           COUNTERPART SIGNATURE PAGE
                        TO REGISTRATION RIGHTS AGREEMENT,
                           DATED SEPTEMBER ___, 2005,
                  AMONG POWERHOUSE TECHNOLOGIES GROUP, INC. AND
                       THE "PURCHASERS" IDENTIFIED THEREIN

The undersigned hereby executes and delivers the Registration Rights Agreement
to which this Signature Page is attached, which, together with all counterparts
of the Registration Rights Agreement and Signature Pages of the Company and
other "Purchasers" under the Registration Rights Agreement, shall constitute one
and the same document in accordance with the terms of the Registration Rights
Agreement.

                       PURCHASER: __________________________________________

                       By: ___________________________________________
                       Name:
                       Title:

                       Address: __________________________

                       Telephone: ___________________________

                       Telecopier: __________________________

                       Email Address: __________________________

                                       17
<PAGE>

                                   SCHEDULE A

                       FORMER DIRECTOR OR OFFICER OF AGATE

Francis Khoo
Shirley Ooi

                                       18

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