Document:

AMENDMENT NO. 1 TO

INVESTMENT AGREEMENT

 

This AMENDMENT NO.1
TO INVESTMENT AGREEMENT (this “Amendment”) dated as of June 25, 2012 (the “Effective Date”)
is entered into by and among Lone Star Gold, Inc., a Nevada corporation with its principal executive
office at 6565 Americas Parkway NE, Suite 200, Albuquerque, NM 87110 (the “Company”),
and Fairhills Capital Offshore Ltd., a Cayman Islands exempted company (the “Investor”), with its principal
executive officers at 245 Main Street, Suite 302, White Plains, NY 10601. 

 

Recitals

 

WHEREAS, on April 30,
2012, the Company and the Investor entered into an Investment Agreement, attached hereto as Exhibit A, pursuant to which
the Investor agreed to invest up to Twenty-Four Million Dollars ($24,000,000) in the purchase of the
Company’s common stock (the “Investment Agreement”); and

 

WHEREAS, the Company
and the Investor seek to amend the Investment Agreement to reflect mutually agreed upon revised terms in accordance with the provisions
of this Amendment;

 

NOW, THEREFORE, in
consideration of the foregoing, and of the mutual representations, warranties, covenants, and agreements herein contained, the
parties hereto agree as follows:

 

Agreement

 

Section
1.             Defined Terms. Unless otherwise indicated herein, all
terms which are capitalized but are not otherwise defined herein shall have the meaning ascribed to them in the Investment Agreement.

 

Section
2.             Investment Amount. The Company and the Investor agree
to reduce the aggregate investment amount from $24,000,000 to $15,000,000. As such, the first paragraph of Recitals, Section 2.1
and Section 8.1 of the Investment Agreement are hereby amended to reflect the new aggregate purchase price of $15,000,000.

 

Section
3.             Purchase Price. The Company and the Investor agree
to amend the definition of “Purchase Price” by using lowest trading price instead of lowest
volume weighted average price. As such, the definition of “Purchase Price” under Section I of the Investment
Agreement is hereby amended and restated in its entirety as follows:

 

“Purchase Price”
shall mean Twenty-Four and a half (24.5%) percent discount to the lowest trading price of the common stock reported by Bloomberg,
L.P. during the ten (10) consecutive trading days immediately prior to receipt by the Investor of the Put Notice.

 

    	 

    	 

    

 

Section
4.             Ratifications; Inconsistent Provisions. Except as otherwise
expressly provided herein, the Investment Agreement, is, and shall continue to be, in full force and effect and is hereby ratified
and confirmed in all respects, except that on and after the Effective Date: (i) all references in the Investment Agreement to “this
Agreement”, “hereto”, “hereof”, “hereunder” or words of like import referring to the
Investment Agreement shall mean the Investment Agreement as amended by this Amendment. Notwithstanding the foregoing to the contrary,
to the extent that there is any inconsistency between the provisions of the Investment Agreement and this Amendment, the provisions
of this Amendment shall control and be binding.

 

Section
5.             Counterparts. This Amendment may be executed in any
number of counterparts, all of which will constitute one and the same instrument and shall become effective when one or more counterparts
have been signed by each of the parties and delivered to the other party. Facsimile or other electronic transmission of any signed
original document shall be deemed the same as delivery of an original.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be executed by their duly authorized representatives as of the date first indicated
above.

  

	 	The Company:
	 	 
	 	Lone Star Gold, Inc.
	 	 
	 	By:	/s/ Daniel M. Ferris
	 	 	Daniel M. Ferris
	 	 	Chief Executive Officer
	 	 
	 	The Investor:
	 	 
	 	Fairhills Capital Offshore Ltd.
	 	 
	 	By:	/s/ Edward Bronson
	 	 	Edward Bronson
	 	 	Senior Managing Member

 

    	 

    	 

    

 

Exhibit A

 

Investment Agreement

 

As attached.FLORIDA GAMING CORPORATION

 

Non-Plan Stock Option Agreement

 

This is an amendment
and restatement of the Non-Plan Stock Option Agreement ("Agreement") entered into, by and between Florida Gaming Corporation,
a Delaware corporation (the "Company"), and Freedom Holding, Inc., a Delaware corporation (the "Optionee").

 

Recitals

 

WHEREAS, the Company
granted Freedom Financial Corporation the Option to purchase up to 325,000 of the Company's $.20 par value common stock on July
10, 2006.

 

WHEREAS, the Board
of Directors of the Company (the "Board") held a special meeting of the Board on October 9, 2007, during which it amended
this Non-Plan Stock Option Agreement to allow cashless exercise and to make the Option transferable;

 

WHEREAS, Freedom Financial
Corporation transferred the Option to purchase 315,000 of the Company's $.20 par value common stock to the Optionee on March 11,
2008.

 

WHEREAS, by adoption
of a resolution on July 3, 2008, the Board of Directors amended this Non-Plan Stock Option Agreement
to permit the Option to be re-priced;

 

WHEREAS, the Company
now wishes to restate this Non-Plan Stock Option Agreement, such that this Agreement will incorporate
all of the aforementioned amendments and to allow the exercise period of the Option to be extended;

 

NOW, THEREFORE, the
Company and the Optionee agree as follows:

 

Agreement

 

The Company hereby
grants Optionee an option (the "Option") to purchase up to 315,000 shares of the Company's $.20 par value common stock
(the "Shares").

 

The Option is transferable
to a Permitted Transferee. Any attempted sale, transfer, pledge, exchange, hypothecation or other disposition of an Award not specifically
permitted by the Plan or the Award Agreement shall be null and void and without effect. For purposes of the Plan, "Permitted
Transferee" means (i) a member of a Participant's immediate family, (ii) any person sharing the Participant's household (other
than a tenant or employee of the Participant), (iii) trusts in which a person listed in (i) or (ii) above has more than 50% of
the beneficial interest, (iv) a foundation in which the Participant or a person listed in (i) or (ii) above controls the management
of assets, (v) any other entity in which the Participant or a person listed in (i) or (ii) above owns more than 50% of the voting
interests, provided that in the case of the preceding clauses (i) through (v), no consideration is provided for the transfer, and
(vi) any transferee permitted under applicable securities and tax laws as determined by counsel to the Company. In determining
whether a person is a "Permitted Transferee," immediate family members shall include a Participant's child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships.

 

    	 

    	 

    

 

The Option shall terminate
on March 31, 2017.

 

The purchase price
for each Share subject to the Option is $8.25 (the "Purchase Price"). The Option may be exercised by the Optionee tendering
to the Company the aggregate Purchase Price of the Shares to be purchased or an election to use cashless exercise and have the
Company retain Shares with a fair market value equal to the exercise price on the date of exercise plus, if required by the Company,
an amount of monies sufficient to pay all applicable federal, state and local withholding taxes on the difference between the Purchase
Price and the market value of the Shares on the date of exercise. In no event shall any amendment to this Agreement decrease the
exercise price of the Option or extend the period for exercise of the Option, unless the Purchase Price is equal to or greater
than the fair market value of the stock on the date that the Option is re-priced or the period for exercise of the Option is extended.

 

The Optionee acknowledges
and agrees that the obligation of the Company to sell any Shares to the Optionee pursuant to this Agreement is subject to the terms
and conditions of this Agreement, and all applicable laws, rules and regulations, including, without limitation, all applicable
federal and state securities laws.

 

The Optionee acknowledges
that (i) neither the Option nor the Shares have been registered under the Securities Act of 1933 (the "Act") or the Securities
Law of any state, (ii) the Optionee is acquiring the Option and the Shares for its own account for investment and not with a view
to distribution or resale, (iii) the Optionee may be deemed to be an affiliate of the Company within the meaning of Rule 144 under
the Act, (iv) the Option is non-transferable except as provided above, (v) the shares can only be resold by the Optionee if the
Shares are registered for resale under the Act and any applicable state Security Law, or if an exemption from registration is available,
and (vi) the stock certificate(s) representing the Shares will bear an appropriate legend describing the restrictions on resale.1

 

 

1 The following legend will
be placed on all stock certificates representing Shares issued upon exercise of the Option:

 

“THE SHARES REPRESENTED
BY THIS STOCK CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT” OR ANY STATE
SECURITIES LAW. SUCH SHARES WERE ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO RESALE OR DISTRIBUTION AND MAY NOT BE SOLD OR TRANSFERRED
UNLESS FIRST REGISTERED UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAW, OR UNLESS, IN THE OPINION OF COUNSEL ACCEPTABLE
TO THE ISSUER, AN EXEMPTION FROM REGISTRATION IS AVAILABLE.”

 

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EXECUTED as of the 9th day of July, 2012.

 

	 	FLORIDA GAMING CORPORATION 
	 	 
	 	By:	/s/ W. Bennett Collett, Jr.
	 	 	W. Bennett Collett, Jr.
	 	 	President and
	 	 	Chief Executive Officer
	 	 
	 	FREEDOM HOLDING, INC.
	 	 
	 	By:	/s/ W. Bennett Collett, Jr.
	 	 	W. Bennett Collett, Jr.
	 	 	President and
	 	 	Chief Executive Officer

  

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