Document:

Exhibit
4.2

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (the
“Agreement”) is made and entered
into as of June 29, 2004, by and among Lone Moose Adventures, Inc., a Nevada
corporation (the “Company”), and
each of the investors (“Investor”)
executing this Agreement who are listed on Schedule 1 attached
hereto (and who are collectively referred to as the “Investors”).

 

RECITALS

 

WHEREAS, the
Company has entered into an Introduction Agreement and an Agreement to Provide
Indemnification, respectively, with Jenson Services, Inc., a Utah corporation
(“Jenson Services”), and David C. Merrell, an individual (“Merrell”) (the
“Investors”) (the “Transaction Documents”) pursuant to which the Company agreed
to issue to each Investor certain Compensation Shares (as defined in these
respective Agreements) that comprise shares of Common Stock of the Company; and

 

WHEREAS, as a
condition to the obligations of the Investors under the Transaction Documents,
the Company has agreed to grant the registration rights with respect to the
Registrable Common (as defined herein) on the terms and conditions set forth
herein.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the foregoing, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Company and the
Holders hereby agree as follows.

 

Section
1.              Definitions.

 

As used in this
Agreement, the following terms shall have the meanings set forth below.
Capitalized terms used herein without definition have the meanings specified in
the Notes.

 

1.1           “Affiliate” means any Person which
controls, is controlled by or is under common control with any other Person or
Persons. For the purposes of this definition, “control” has the meaning
specified as of the date of this Agreement for that word in Rule 405 promulgated by the Commission under the Securities Act.

 

1.2           “Board” means the Board of Directors
of the Company.

 

1.3           “Commission” means the United States
Securities and Exchange Commission, and any successor thereto.

 

1.4           “Common Stock” means the Company’s
common stock, $0.00! par value.

 

1.5           “Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated
from time to time thereunder.

 

1.6           “Holders” means the (i) Investors,
each of whom is a party to this Agreement.

 

 

1.7           “Person” means an individual,
partnership, limited partnership, corporation, business trust, limited
liability company, association, joint stock company, trust, unincorporated
organization, joint venture or other entity of whatever nature.

 

1.8           “PIPE Transaction” means any private
placement in public equity of the Company following the completion of the
Agreement and Plan of Reorganization (“Reverse Merger Transaction”) between the
Company and Southwest Casino and Hotel Corp., a Minnesota corporation
(“Southwest”).

 

1.9           “Registrable Common” means the
Compensation Shares or any shares issued under the Transaction Documents.

 

1.10         “Register,” “registered” and “registration” refer
to a registration effected by preparing and filing a registration statement in
compliance with the Securities Act and the declaration or ordering of the
effectiveness of such registration statement.

 

1.11         “Rule 144” means Rule 144
promulgated by the Commission under the Securities Act, as such rule may be
amended from time to time, or any successor rule thereto.

 

1.12         “Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations promulgated
from time to time thereunder.

 

Section
2.              Registration
Rights.

 

2.1           Piggyback Registration.

 

2.1.1        If at any time within two
(2) years of the acquisition of the Compensation Shares, and subject to the
Carve Back Right described in Section 2.1.3, if the Company shall determine to
proceed with the actual preparation and filing of a registration statement
under the Securities Act in connection with the proposed offer or resale of any
of its Common Stock by any of its holders (excluding registrations on Forms S-4
and S-8 of the Securities and Exchange Commission), then the Company shall give
written notice of its determination to all record Holders of Registrable Common
(a “Participation Notice”) at
least thirty (30) days prior to filing such registration statement. Upon the
written request of a record Holder of any Registrable Common given within
fifteen (15) days after receipt of a
Participation Notice, the Company will, except as herein provided, cause all
such Registrable Common, the record Holders of which have so requested
registration thereof, to be included in such registration statement, provided
that, with respect to all shares of Registrable Common for which registration
has been requested, holders of the Compensation Shares so requesting to have
shares of Registrable Common included in such registration statement, all to
the extent required to permit the sale or other disposition by the prospective
seller or sellers of the Registrable Common, to be so registered. If any
registration pursuant to this Section 2.1 shall be underwritten in whole or in
part, the Company may require that the Registrable Common requested for
inclusion pursuant to this Section 2.1 be included in the underwriting on the
same terms and conditions as the securities otherwise being sold through the
underwriters.

 

2

 

2.1.2        Nothing contained in this
Agreement shall prevent the Company from, at any time, abandoning or delaying
any such registration initiated by it in order to comply with applicable
securities laws. All registration expenses in such case shall be borne by the
Company.

 

2.1.3        If, in the judgment of the
Company’s managing underwriter of any public offering or resale for Holders of
the Company’s common stock or the Company’s placement agent in the PIPE
Transaction or Capital Raising Transaction (the “Carve Back Right”), the
inclusion of any or all of the Registrable Common originally covered by a
request for registration would interfere with the successful marketing of the
shares of Common Stock offered by the Company or would negatively impact the
trading market of the Common Stock, then the number of Registrable Common
otherwise to be included in the public offering or registered hereunder may be
reduced pro rata (by number of shares) among the Holders thereof requesting
inclusion of such registration, which reduction may be to zero.

 

2.1.4        The right of any Holder to
include Registrable Common in any underwritten registration pursuant to this
Agreement shall be conditioned upon such Holder’s full participation in such
underwriting and the inclusion of such Holder’s Registrable Common in the
underwriting. All Holders proposing to distribute their securities through such
underwriting shall (together with the Company) enter into an underwriting
agreement in customary form with the underwriter or underwriters selected.

 

2.1.5        The Company shall not be
obligated to effect or take any action to effect, any registration pursuant to
Section 2.1 more than two (2) times.

 

Section 3.              Registration Procedures. When the Company is required by
the terms of this Agreement to effect the registration of Registrable Common
under the Securities Act, the Company will do the following:

 

3.1           Filing. Prepare and file with the
Commission a registration statement with respect to such securities, and use
its commercially reasonable efforts to cause such registration statement to
become and remain effective for such period as may be reasonably necessary to
effect the sale of such securities, not to exceed six (6) months;

 

3.2           Period of Effectiveness. Prepare and
file with the Commission such amendments to such registration statement and
supplements to the prospectus contained therein as may be necessary to keep
such registration statement effective for such period as may be reasonably
necessary to effect the sale of such securities, not to exceed nine (9) months;

 

3.3           Copies. Furnish to the Holders
participating in such registration and to the underwriters of the securities
being registered such reasonable number of copies of the registration
statement, preliminary prospectus, formal prospectus and such other documents
as such underwriters may reasonably request in order to facilitate the public
offering of such securities;

 

3.4           Blue Sky. Use its commercially
reasonable efforts to register or qualify the securities covered by such
registration statement under such state securities or blue sky laws of

 

3

 

such jurisdictions
as such participating Holders may reasonably request in writing within twenty
(20) days following the original filing of such registration statement, except
that the Company shall not for any purpose be required to execute a general
consent to service of process or to qualify to do business as a foreign
corporation in any jurisdiction wherein it is not so qualified;

 

3.5           Notification. Notify the Holders
participating in such registration, promptly after it shall receive notice
thereof, of the time when such registration statement has become effective or a
supplement to any prospectus forming a part of such registration statement has
been filed;

 

3.6           Amendment Notice. Notify such Holders
promptly of any request by the Commission for the amending or supplementing of
such registration statement or prospectus or for additional information;

 

3.7           Update. Prepare and promptly file with
the Commission and promptly notify such Holders of the filing of such amendment
or supplement to such registration statement or prospectus as may be necessary
to correct any statements or omissions if, at the time when a prospectus relating
to such securities is required to be delivered under the Securities Act, any
event shall have occurred as the result of which any such prospectus or any
other prospectus as then in effect would include an untrue statement of a
material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading;

 

3.8           Stop Orders. Advise such Holders,
promptly after it shall receive notice or obtain knowledge thereof, of the
issuance of any stop order by the Commission suspending the effectiveness of
such registration statement or the initiation or threatening of any proceeding
for that purpose and promptly use its best efforts to prevent the issuance of
any stop order or to obtain its withdrawal if such stop order should be issued;
and

 

3.9           Compliance Issues. Not file any
amendment or supplement to such registration statement or prospectus to which a
majority in interest of such Holders shall have reasonably objected on the
grounds that such amendment or supplement does not comply in all material
respects with the requirements of the Securities Act or the rules and
regulations promulgated thereunder, after having been furnished with a copy
thereof at least two (2) business days prior to the filing thereof, unless in
the opinion of counsel for the Company the filing of such amendment or
supplement is reasonably necessary to protect the Company from any liabilities
under any applicable federal or state law and such filing will not violate
applicable law.

 

Section 4.              Furnish Information. It shall be a condition
precedent to the obligations of the Company to take any action pursuant to
Sections 2 and 3 with respect to the Registrable Common of any selling Holder
that such Holder shall furnish to the Company such information regarding
itself, the Registrable Common held by him or it, and the intended method of
disposition of such securities as shall be required to effect the registration
of such Holder’s Registrable Common.

 

Section 5.              Expenses. With respect to each registration requested pursuant to
Section 2.1 hereof (except as otherwise provided in such Section) and with
respect to each inclusion of Registrable Common in a registration statement
pursuant to Section 2.1 hereof (except as

 

4

 

otherwise provided
in such Section), the Company shall bear the following fees, costs and
expenses: all registration, filing and NASD (or exchange) fees, printing
expenses, fees and disbursements of counsel and accountants for the Company,
fees and disbursements of counsel for the underwriter or underwriters of such
securities (if the Company and/or selling security Holders are required to bear
such fees and disbursements), all internal Company expenses, all legal fees and
disbursements and other expenses of complying with state securities or blue sky
laws of any jurisdictions in which the securities to be offered are to be
registered or qualified, and the premiums and other costs of policies of
insurance against liability (if any) arising out of such public offering. All
fees and disbursements of any legal counsel, accountants or advisors for the
selling security Holders, underwriting discounts and commissions and transfer
taxes relating to the shares included in the offering by the selling security
Holders, and any other expenses incurred by the selling security Holders not
expressly included above, shall be borne by the selling security Holders.

 

Section 6.              Delay of Registration. No Holder shall have any right
to obtain or seek an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Agreement.

 

Section 7.              Indemnification. In the event that any
Registrable Common is included in a registration statement under Section 2.1
hereof.

 

7.1           Indemnification by Company. To the
fullest extent permitted by law, the Company will indemnify and hold harmless
each Holder of Registrable Common which are included in a registration
statement pursuant to the provisions hereof, its directors, officers, partners,
shareholders and legal counsel and any underwriter (as defined in the
Securities Act) for such Holder and each Person, if any, who controls such Holder
or such underwriter within the meaning of the Securities Act, from and against,
and will reimburse such Holder and each such underwriter and controlling Person
with respect to, any and all loss, damage, claims or liability (collectively,
“Losses”), joint or several, to which any of them may become subject under the
Securities Act, state securities laws or otherwise, and the Company will pay to
each such Holder, director, officer, partner, shareholder, legal counsel,
underwriter or controlling person any legal or other costs or expenses
reasonably incurred by such person in connection with investigating or
defending any such Loss, insofar as such Losses are caused by any untrue or
alleged untrue statement of any material fact contained in such registration statement,
any prospectus contained therein or any amendment or supplement thereto, or
arise out of or are based upon the omission or the alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading; provided, however, that the Company will not be liable in any such
case to the extent that any such Loss arises out of or is based upon an untrue
statement or omission so made in conformity with information furnished by such
Holder, director, officer, partner, shareholder, legal counsel, such
underwriter or such controlling Person; provided further, however, that the
indemnity agreement in this Section 7.1 shall not apply to amounts paid in
settlement of any such Loss if such settlement is effected without the consent
of the Company, which consent shall not be unreasonably withheld, and that the
foregoing indemnity obligation with respect to any preliminary prospectus shall
not inure to the benefit of any Holder on account of any Loss whatsoever
arising from the sale of any Registrable Common by such Holder to any person if
(A) a copy of the prospectus (as amended or supplemented if such amendments or
supplements

 

5

 

shall have been
furnished to such Holder prior to the confirmation of the sale involved) shall
not have been sent or given by or on behalf of such Holder to such person, if
required by law, with or prior to the written confirmation of the sale
involved, and (B) the untrue statement or omission of a material fact contained
in such preliminary prospectus from which such Loss arose was corrected in the
prospectus (as amended or supplemented if such amendments or supplements thereto
shall have been furnished as aforesaid).

 

7.2           Indemnification by Holders. Each Holder
of Registrable Common which is included in a registration statement pursuant to
the provisions hereof will indemnify and hold harmless the Company, its
directors and officers, each Person, if any, who controls the Company within
the meaning of the Securities Act, any other Holder selling securities pursuant
to such registration statement, any controlling Person of any such selling
Holder, any underwriter and any controlling Person of any such underwriter
(each, an “Indemnitee”) from and against, and will reimburse any Indemnitee
with respect to, any and all Losses to which such Indemnitee may become subject
under the Securities Act, state securities laws or otherwise, and the Holder
will pay to each such Indemnitee any legal or other costs or expenses
reasonably incurred by such person in connection with investigating or
defending any such Loss, insofar as such Losses are caused by any untrue or
alleged untrue statement of any material fact contained in such registration
statement, any prospectus contained therein or any amendment or supplement
thereto, or arise out of or are based upon the omission or the alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances in which they were
made, not misleading, in each case to the extent, but only to the extent, that
such untrue statement or alleged untrue statement or omission or alleged
omission was so made in reliance upon and in conformity with information
furnished in writing by such Holder to the Company specifically for use in the
preparation thereof, and provided, however, that the indemnity agreement in
this Section 7.2 shall not apply to amounts paid in settlement of any such Loss
if such settlement is effected without the consent of the indemnifying Holder,
which consent shall not be unreasonably withheld, and that the foregoing
indemnity obligation with respect to any preliminary prospectus shall not inure
to the benefit of the Company on account of any Loss whatsoever arising from
the sale of any Registrable Common by the Holder to any person if (A) a copy of
the prospectus (as amended or supplemented if such amendments or supplements
shall have been furnished to such Holder prior to the confirmation of the sale
involved) shall not have been sent or given by or on behalf of such Holder to
such person, if required by law, with or prior to the written confirmation of
the sale involved, and (B) the untrue statement or alleged untrue statement or
omission or alleged omission of a material fact contained in such preliminary
prospectus from which such Loss arose was corrected in the prospectus (as
amended or supplemented if such amendments or supplements thereto shall have
been furnished as aforesaid); provided, further that the obligations of such
Holders under this Section 7.2 shall be limited to an amount equal to the net
proceeds received by each such Holder of Registrable Common sold as
contemplated herein.

 

7.3           Indemnification Procedures. Promptly
after receipt by a party entitled to indemnification pursuant to this Section 7
(each, an “Indemnified Party”) of notice of the commencement of any action
involving the subject matter of the foregoing indemnity provisions such
Indemnified Party will, if a claim is to be made against the party obligated to
provide indemnification pursuant to this Section 7 (each, an “Indemnifying
Party”), promptly notify the Indemnifying Party of the commencement thereof;
but the omission to provide such notice will

 

6

 

not relieve the
Indemnifying Party from any liability hereunder, except to the extent that the
delay in giving, or failing to give, such notice has a material adverse effect
upon the ability of the Indemnifying Party to defend against the claim. In case
such action is brought against an Indemnified Party, the Indemnifying Party
shall have the right to participate in and, at the Indemnifying Party’s option,
to assume the defense thereof, singly or jointly with any other Indemnifying
Party similarly notified, with counsel satisfactory to the Indemnified Party;
provided, however, that if the defendants in any action include both the
Indemnified Party and the Indemnifying Party and the Indemnified Party shall
have reasonably concluded that there may be legal defenses available to any
Indemnified Parties that are different from or additional to those available to
the Indemnifying Party, or if there is a conflict of interest which would
prevent counsel for the Indemnifying Party from also representing the
Indemnified Party, the Indemnified Party shall have the right to select counsel
to participate in the defense of such action on behalf of such Indemnified
Party at the expense of the Indemnifying Party; provided that the Indemnifying
Party shall be responsible for the expense of only one such special counsel
selected jointly by the Indemnified Parties, if there is more than one
Indemnified Party. After notice from an Indemnifying Party to any Indemnified
Party of such Indemnifying Party’s election to assume the defense or the
action, the Indemnifying Party will not be liable to such Indemnified Party
pursuant to this Section 7 for any legal or other expense subsequently incurred
by such Indemnified Party in connection with the defense thereof other than
reasonable costs of investigation, unless (i) the Indemnified Party shall have
employed counsel in accordance with the proviso of the preceding sentence, or
(ii) the Indemnifying Party shall not have employed counsel satisfactory to the
Indemnified Party to represent the Indemnified Party within a reasonable time
after the notice of the commencement of the action, or (iii) the Indemnifying
Party has authorized the employment of counsel for the Indemnified Party at the
expense of the Indemnifying Party.

 

Section 8.              Exceptions to and Termination of Registration
Obligations. The
Company shall not be obligated to (a) honor a request or a demand to register
its Registrable Common under Section 2.1 if all such Registrable Common which
could be registered pursuant to such demand is otherwise eligible for immediate
sale by the Holder thereof under Rule 144 promulgated under the Securities Act
or (b) effect a registration during the Lock-Out Period. Pursuant to Section 10
below, the Company shall not be obligated to effect a registration until the
expiration of the Lock-Out Period. This Agreement, and the registration rights
set forth herein, shall terminate on the earlier to occur of (a) a date that is
two (2) years following the issuance of the Registrable Securities or (b) at
any time following the Company’s Reverse Merger Transaction that all Holders
who make demand for registration hereunder are able to sell their entire
holdings during any ninety (90) day period under Rule 144(k).

 

Section 9.              Cooperation. Any Holder whose Registrable Common Stock are to be included
in a Registration Statement of the Company agrees to cooperate with all
reasonable requests by the Company necessary to effectuate the purposes of this
Agreement, including by timely providing the Company with all information
necessary to file a registration statement.

 

Section 10.            “Lock-Out” Agreement. Each
Holder hereby agrees that, following the effective date of a registration of
the Company’s securities (or securities of the Public Company) under the
Securities Act, for the period of time not to exceed ninety (90) days following
the effective date of any registration statement whether to register securities
acquired in connection

 

7

 

with the Company’s
PIPE Transaction, the Company’s Capital Raising Transaction, or the Company’s
IPO and to the extent requested by the Company’s underwriter(s) or placement
agent, such Holder shall not sell, offer to sell, contract to sell (including,
without limitation, any short sale), grant any option to purchase or otherwise
transfer or dispose of any securities of the Company (or the Public Company)
held by such Holder, directly or indirectly, whether through trade in the
public securities markets, OTCBB or private transactions or through any other
means, except transfers to donees who agree to be similarly bound) during the
Lock-Out Period. Each Holder acknowledges and agrees that the Company may
impose stop-transfer instructions during such Lock-Out Period with respect to
the securities of each Holder subject to this restriction if necessary to
enforce such restrictions.

 

Section
11.            Miscellaneous.

 

11.1         Waivers, Amendments and Approvals. In
each case in which the approval of the Holders is required by the terms of this
Agreement, such requirement shall be satisfied by a vote or the written action
of Holders of at least a majority of the Registrable Common, unless a higher
percentage is specifically required by the terms of this Agreement. Any term or
provision of this Agreement requiring performance by or binding upon the
Company or Holders may be amended, and the observance of any term of this
Agreement may be waived (either generally or in a particular instance and
either retroactively or prospectively), only by a writing signed by the Company
and the Holders of at least a majority of the then outstanding Registrable
Common. Any amendment or waiver effected in accordance with this Section shall
be binding upon the Holders (including permitted assigns pursuant to Section
11.9 hereof). The waiver by a party of any breach hereof or default in payment
of any amount due hereunder or default in the performance hereof shall not be
deemed to constitute a waiver of any other default or succeeding breach or
default. Written notice of any such waiver, consent or agreement of amendment,
modification or supplement shall be given to the record Holders of Registrable
Common who did not give written consent thereto.

 

11.2         Written Changes, Waivers, Etc. Neither
this Agreement nor any provision hereof may be changed, waived, discharged or
terminated orally, but only by a statement in writing signed by the party
against which enforcement of the change, waiver, discharge or termination is
sought, except to the extent provided in Section 11.1.

 

11.3         Notices. All notices, demands or other
communications to be given or delivered under or by reason of the provisions of
this Agreement shall be in writing and shall be deemed to have been given when
delivered personally to the recipient, sent to the recipient by reputable
overnight courier service (charges prepaid), mailed to the recipient by
certified or registered mail, return receipt requested and postage prepaid, or
transmitted by facsimile or electronic mail (with request for immediate
confirmation of receipt in a manner customary for communications of such type
and with physical delivery of the communication being made by one of the other
means specified in this section as promptly as practicable thereafter), as
follows:

 

11.3.1      To a Holder, addressed to
such Holder at the address(es) set forth on Schedule 1 hereto.

 

8

 

11.3.2      To the Company, to:

 

Lone Moose Adventures,
Inc.

1438 East 8850 South

Sandy, Utah 84983

Facsimile:               801-942-7753

Telephone:            801-566-2658

 

Any party may change its address for such
communications by giving notice thereof to the other parties in conformity with
this Section.

 

11.4         Delays or Omissions. Except as
expressly provided herein, no delay or omission to exercise any right, power or
remedy accruing to any party under this Agreement shall impair any such right,
power or remedy of such party nor shall it be construed to be a waiver of any
such breach or default, or an acquiescence thereto, or of a similar breach of
default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party hereto of any breach of default under the
Agreement, or any waiver on the part of any party of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing.

 

11.5         Other Remedies. Any and all remedies
herein expressly conferred upon a party shall be deemed cumulative with, and
not exclusive of, any other remedy conferred hereby or by law on such party,
and the exercise of any one remedy shall not preclude the exercise of any
other.

 

11.6         Attorneys’ Fees. Should suit be brought
to enforce or interpret any part of this Agreement, the prevailing party shall
be entitled to recover, as an element of the costs of suit and not as damages,
reasonable attorneys’ fees to be fixed by the court (including, without
limitation, costs, expenses and fees on any appeal). The prevailing party shall
be the party entitled to recover its costs of suit, regardless of whether such
suit proceeds to final judgment. A party not entitled to recover its costs
shall not be entitled to recover attorneys’ fees. No sum for attorneys’ fees
shall be counted in calculating the amount of a judgment for purposes of determining
if a party is entitled to recover costs or attorneys’ fees.

 

11.7         Entire Agreement. This Agreement, the
schedules hereto, the documents referenced herein and the exhibits thereto,
constitute the entire understanding and agreement of the parties hereto with
respect to the subject matter hereof and thereof and supersede all prior and
contemporaneous agreements or understandings, inducements or conditions,
express or implied, written or oral, between the parties with respect hereto
and thereto. The express terms hereof control and supersede any course of
performance or usage of the trade inconsistent with any of the terms hereof.

 

11.8         Severability. Should any one or more of
the provisions of this Agreement or of any agreement entered into pursuant to
this Agreement be determined to be illegal or unenforceable, all other
provisions of this Agreement and of each other agreement entered into

 

9

 

pursuant to this
Agreement, shall be given effect separately from the provision or provisions
determined to be illegal or unenforceable and shall not be affected thereby.

 

11.9         Successors and Assigns. The terms and
conditions of this Agreement shall inure to the benefit of, and be binding upon
and be enforceable by, the respective heirs, successors and assigns of the
parties hereto; provided, however, that if notice is given to the Company, the
rights of a Holder hereunder may be assigned only (i) to a partner or retired
partner of the assigning Holder if such assigning Holder is a partnership or to
any affiliate of an assigning Holder which is also an accredited investor
within the meaning of the Securities Act, (ii) to any family member of, or
trust for the benefit of, the assigning Holder, (iii) to any affiliated entities
of the assigning Holder if such affiliated entities are managed by the same
manager or managing partner or management company, or managed by an entity
controlling, controlled by or under common control with such manager, managing
partner or management company, or (iv) concurrent with the sale or transfer to
such assignee of at least 25,000 shares (subject to adjustment for any stock
dividend, stock split, subdivision, combination or other recapitalization of
the Company) of the Registrable Common then held by such Holder. Any Holder
making an assignment in connection with the sale or transfer of only a portion
of its shares shall retain its rights under this Agreement for the shares not
sold or transferred. Nothing in this Agreement, express or implied, is intended
to confer upon any party, other than the parties hereto or their respective
successors and assigns, any rights, remedies, obligations or liabilities under
or by reason of this Agreement, except as expressly provided in this Agreement.
Notwithstanding any provision contained elsewhere in this Agreement, upon the
transfer of shares by any of the parties hereto, no claims or causes of action
arising out of or related to this Agreement existing as of the transfer date
shall be transferred by such party to any respective heir, successor, assign or
permitted transferee, provided that the transfer of shares shall not be deemed
a waiver by the transferring party of any such claim or cause of action.

 

11.10       Assignment to and Assumption by Parent Company.
Company covenants and agrees to include as a condition precedent to
consummation of the Reverse Merger Transaction with the Public Company in any
definitive merger agreement entered into with the Public Company that the
Public Company will expressly assume this Registration Rights Agreement and
will succeed to and be substituted for the Company, with the same effect as if
the Public Company had been named in this Agreement in the Company’s place.

 

11.11       Governing Law. This Agreement shall be
governed by and construed under the laws of the State of Utah.

 

11.12       Counterparts. This Agreement may be
executed concurrently in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

 

(BALANCE OF PAGE INTENTIONALLYBLANK)

 

10

 

IN WITNESS WHEREOF, this
Agreement is hereby executed as of the date first written above.

 

	
  COMPANY:

  	
  LONE MOOSE ADVENTURES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher B. Glover

  
	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  
	
  INVESTORS:

  	
  /s/ David C. Merrell

  
	
   

  	
  David C. Merrell

  
	
   

  	
   

  
	
   

  	
  JENSON SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
  Its:

  	
  Vice President

  
					

 

11

 

SCHEDULE 1

 

LIST OF INVESTORS

 

Names and Addresses of Investors

 

David C. Merrell

9005 Cobble Canyon Lane

Sandy, Utah 84093

 

Jenson Services, Inc.

4685 So. Highland Dr., #202

Salt Lake City, Utah 84117Exhibit 4.3

 

FORM OF

LOCK-UP/LEAK-OUT AGREEMENT

 

THIS LOCK-UP/LEAK-OUT AGREEMENT (the “Agreement”) is made and entered
into as of the 20th day of July, 2004, between Lone Moose Adventures, Inc., a
Nevada corporation (“Lone Moose”), and MBC Global, LLC (the party) that execute
and deliver a Counterpart Signature Page hereof and sometimes collectively
referred to herein as the “Shareholders” and each, a “Shareholder.”

 

WHEREAS, Lone Moose intends to enter into an Agreement and Plan of
Reorganization between Lone Moose; certain Principal Shareholders of Lone
Moose; a wholly-owned Minnesota subsidiary of Lone Moose (the “Lone Moose
Subsidiary”); and Southwest Casino and Hotel Corp., a Minnesota corporation
(“Southwest”) (the “Merger Agreement”), pursuant to which the execution and
delivery of this Agreement is a condition precedent to the closing of the
Merger Agreement; and

 

WHEREAS, in order to facilitate the consummation of the transactions
contemplated by the Merger Agreement and to provide for an orderly market for
the Common Stock of Lone Moose subsequent to the Closing of the Merger
Agreement (as defined therein), the Shareholders have agreed to enter into this
Agreement and to restrict the public sale, assignment, transfer, conveyance,
hypothecation or alienation of the Common Stock, all on the terms set forth
below.

 

NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants contained herein, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Notwithstanding
anything contrary contained in this Agreement, a Shareholder may transfer
his/her/its shares of Common Stock to his/her/its affiliates, partners in a
partnership, subsidiaries and trusts, or spouses and lineal descendants for estate
planning purposes, or pursuant to bona fide non-public transactions, provided
that the transferee (or the legal representative of the transferee) executes an
agreement to be bound by all of the terms and conditions of this Agreement in
connection with the potential subsequent resale of the Common Stock so
acquired.

 

2.                                       Except
as otherwise expressly provided herein, and except as each Shareholder may be
otherwise restricted from selling shares of Common Stock, each Shareholder may
only publicly sell Common Stock subject to the following conditions for the
twelve (12) month period from the Closing of the Merger Agreement (the
“Lock-Up/Leak-Out Period”):

 

2.1                                 Each Shareholder shall
be allowed to sell 1/12th of such Shareholder’s shares of Common Stock per
month during the Lock-Up/Leak-Out Period, on a cumulative basis, meaning that
if no Common Stock was sold during one month while Common

 

 

Stock was qualified to be sold, up to 2/12ths of such Shareholder’s
shares of Common Stock could be sold in the next successive month and so forth;
provided, however, that for determining qualification of Common Stock for sale
and the availability to resell on a cumulative basis hereunder, no such
accumulation shall be applicable until the particular shares owned by a
Shareholder that is party hereto are otherwise freely publicly tradeable
(meaning that they are no longer restricted). 
Each Shareholder agrees that all sales will be made at no less than the
best “asked” prices, and no sales will be made at the “bid” prices for the
Common Stock.

 

2.2                                 The Common Stock may
not be sold at a price below $2.50 per share, which may be waived by the
Reorganized Parent.

 

2.3                                 Except as otherwise
provided herein, all Common Stock shall be sold in “broker’s transactions” and
each Shareholder will comply with the “manner of sale” requirements as those
terms are defined in Rule 144 of the Securities and Exchange Commission during
the Lock-Up/Leak-Out Period.

 

2.4                                 An appropriate legend
describing this Agreement shall be imprinted on each stock certificate
representing Common Stock covered hereby, and the transfer records of Lone
Moose’s transfer agent shall reflect such appropriate restrictions.

 

2.5                                 The Shareholders agree
that they will not engage in any short selling of the Common Stock during the
Lock-Up/Leak-Out Period.

 

2.6                                 During the
Lock-Up/Leak/Out Period, Lone Moose shall maintain its “reporting” status with
the Securities and Exchange Commission; file all reports that are required to
be filed by it during such period; and use its reasonable “best efforts” to
ensure that the Common Stock is continually quoted for public trading on a
nationally recognized medium of no less significance than the OTC Electronic
Bulletin Board of the National Association of Securities Dealers, Inc. (the
“NASD”), the NASDAQ Small Cap or a recognized national stock exchange.

 

3.                                       All
shares that are the subject of this Agreement shall be deposited, to the extent
that they can be then sold hereunder, with the broker/dealer selected by Lone
Moose for any secondary offering of its securities during the Lock-Up/Leak-Out
Period.  The delivery of a duly executed
copy of the Broker/Dealer Agreement by a selling Shareholder’s broker and a
duly executed Seller’s Resale Agreement by the selling Shareholder in the form
attached hereto shall be satisfactory evidence for all purposes of

 

 

this Agreement that such selling Shareholder and its broker will comply
with the “broker’s transactions” and “manner of sale” requirements of this
Agreement, and no further evidence thereof will be required of any selling
Shareholder; provided, however, Lone Moose may confirm such compliance with any
Shareholder and any selling Shareholder’s broker, to the extent that it deems
reasonably required or necessary to assure compliance with this Agreement.

 

4.                                       Notwithstanding
anything to the contrary set forth herein, Lone Moose may, in its sole
discretion, at any time and from time to time, waive any of the conditions or
restrictions contained herein to increase the liquidity of the Common Stock or
if such waiver would otherwise be in the best interests of the development of
the trading market for the Common Stock. 
Unless otherwise agreed by the Shareholders, all such waivers shall be
pro rata, as to all of the Shareholders whose Common Stock can, at the time of
any such waiver, be publicly sold in accordance with the Securities Act of
1933, as amended (the “Securities Act”) or Rule 144 promulgated thereunder by
the Securities and Exchange Commission.

 

5.                                       In
the event of:  (a) a completed tender
offer to purchase all or substantially all of Lone Moose’s issued and
outstanding securities; (b) a merger, consolidation or other reorganization of
Lone Moose with or into an unaffiliated entity; or (c) a private sale by
members of senior management of Southwest who are party to this Agreement, then
this Agreement shall terminate as of the closing of such event and the Common
Stock restricted pursuant hereto shall be released from such restrictions.

 

6.                                       Except
as otherwise provided in this Agreement or any other agreements between the
parties, the Shareholders shall be entitled to their respective beneficial
rights of ownership of the Common Stock, including the right to vote the Common
Stock for any and all purposes.

 

7.                                       The
number of shares of Common Stock included in any monthly allotment that can be
sold by a Shareholder and the per share price restrictions covered by this
Agreement shall be appropriately adjusted should Lone Moose make a dividend or
distribution, undergo a forward split or a reverse split or otherwise
reclassify its shares of Common Stock.

 

8.                                       This
Agreement may be executed in any number of counterparts with the same force and
effect as if all parties had executed the same document.

 

9.                                       All
notices, instructions or other communications required or permitted to be given
pursuant to this Agreement shall be given in writing and delivered by certified
mail, return receipt requested, overnight delivery or hand-delivered to all
parties to this Agreement, to Lone Moose, at 1438 East 8850 South, Sandy, Utah
84093; or, subsequent to the Closing of the Merger Agreement, to Southwest
Casino Corporation, 2001 Killebrew Drive, Suite 306, Minneapolis, Minnesota
55425; and to the Shareholders, at the addresses in their Counterpart Signature
Pages.  All notices shall be deemed to be
given on the same day if delivered by hand or on the following business

 

 

day if sent by overnight delivery or the second business day following
the date of mailing.

 

10.                                 The
resale restrictions on the Common Stock set forth in this Agreement shall be in
addition to all other restrictions on transfer imposed by applicable United
States and state securities laws, rules and regulations.

 

11.                                 Lone
Moose or each Shareholder who fails to fully adhere to the terms and conditions
of this Agreement shall be liable to every other party for any damages suffered
by any party by reason of any such breach of the terms and conditions
hereof.  Each Shareholder agrees that in
the event of a breach of any of the terms and conditions of this Agreement by
any such Shareholder, that in addition to all other remedies that may be
available in law or in equity to the non-defaulting parties, a preliminary and
permanent injunction, without bond or surety, and an order of a court requiring
such defaulting Shareholder to cease and desist from violating the terms and
conditions of this Agreement and specifically requiring such Shareholder to
perform his/her/its obligations hereunder is fair and reasonable by reason of
the inability of the parties to this Agreement to presently determine the type,
extent or amount of damages that Lone Moose or the non-defaulting Shareholders
may suffer as a result of any breach or continuation thereof.

 

12.                                 This
Agreement sets forth the entire understanding of the parties hereto with
respect to the subject matter hereof, and may not be amended except by a
written instrument executed by the parties hereto.

 

13.                                 This
Agreement shall be governed by and construed in accordance with the laws of the
State of Minnesota applicable to contracts entered into and to be performed
wholly within said State; and Lone Moose and the Shareholders agree that any
action based upon this Agreement may be brought in the United States and state
courts of Minnesota only, and each submits himself/herself/itself to the
jurisdiction of such courts for all purposes hereunder.

 

14.                                 In
the event of default hereunder, the non-defaulting parties shall be entitled to
recover reasonable attorney’s fees incurred in the enforcement of this
Agreement.

 

IN WITNESS WHEREOF, the undersigned have duly executed and delivered
this Agreement as of the day and year first above written.

 

	
   

  	
  LONE MOOSE ADVENTURES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: 

  	
   

  	
  .

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its

  	
   

  	
   

  
						

 

 

LOCK-UP/LEAK-OUT AGREEMENT

COUNTERPART SIGNATURE PAGE

 

This Counterpart Signature Page for that certain Lock-Up/Leak-Out
Agreement (the “Agreement”) dated as of the 20th day of July, 2004, among Lone
Moose Adventures, Inc., a Nevada corporation (“Lone Moose”); and certain
persons who are “Shareholders” of Lone Moose, by which the undersigned, through
execution and delivery of this Counterpart Signature Page, intends to be
legally bound by the terms of the Agreement, as a Shareholder, of the number of
shares of Lone Moose set forth below or hereafter acquired during the Lock-Up/Leak-Out
Period as defined in the Agreement.

 

	
   

  	
  MBC GLOBAL, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  (Printed Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Position)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Street Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (City and State)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Number of Shares Owned or Underlying Other Securities)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Date)

  

 

 

Broker/Dealer Agreement

 

Lone Moose Adventures, Inc.

1438 East 8850 South

Sandy, Utah 84093

 

Interwest Transfer Company

1981 East Holladay Blvd.

Salt Lake City, Utah 84117

 

Re:                                                                               Resale
restriction of certain shares of common stock of Lone Moose Adventures, Inc., a
Nevada corporation (“Lone Moose” or the “Company”)

 

Dear Ladies and Gentlemen:

 

The undersigned broker hereby acknowledges receipt of stock
certificates
representing                        shares
of common stock of the Company that are owned
by                                                                                 (the
“Customer”).

 

In consideration of transferring these securities free of any legend or
other notation respecting the resale of these securities so that the undersigned
broker can effect a sale of such shares (a “Company Approved Sale”), the
undersigned broker agrees:

 

(i)                                     That all sales of
these securities or any other securities of Lone Moose on deposit in the
accounts of the Customer will be made in “broker’s transactions” only as that
term is defined in Rule 144 of the Securities and Exchange Commission
until                        ,
2005 (the “Resale Restriction Period”);

 

(ii)                                  That there will be no
legend removal or DTC’s of any securities of the Customer prior to a Company
Approved Sale during the “Resale Restrictions Period”;

 

 

(iii)                               That if any of the
securities of the Company are ordered out by the Customer for delivery prior to
the expiration of the Resale Restriction Period, that instructions will be given
to the Company’s transfer agent to re-issue the stock certificates for the
Customer with the appropriate restriction or restrictions as are outlined in
the Letter Agreement of the Customer, and to the effect that such securities
can only be sold in “broker’s transactions;” and

 

(iv)                              That the undersigned
broker will not engage in, or facilitate, directly or indirectly, short sales
transactions or “short sales against the box” transactions in any manner during
the Resale Restriction Period.

 

The undersigned broker further agrees that we will provide you with
reasonable documentation on your request to verify our compliance with this
Letter Agreement.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Broker/Dealer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  City, State, Zip

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: 

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its

  	
   

  	
   

  
						

 

 

Seller’s Resale Agreement

 

Lone Moose Adventures, Inc.

1438 East 8850 South

Sandy, Utah 84093

 

Interwest Transfer Company

1981 East Holladay Blvd.

Salt Lake City, Utah 84117

 

Re:                                                                               Resale
restriction of certain shares of common stock of Lone Moose Adventures, Inc., a
Nevada corporation (“Lone Moose” or the “Company”)

 

Dear Ladies and Gentlemen:

 

The undersigned agrees to effect all sales of shares of common stock of
Stock Certificate
No.                           representing
                              shares
of common stock of Lone Moose in accordance with the “manner of sale”
requirements of Rule 144 as outlined in Schedule 1 hereto until on or
before                          ,
2005.

 

DATED
this          day of
                                 ,
200  .

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  City, State, Zip

  
						

 

 

SCHEDULE 1

 

SELLER’S REQUIREMENTS IN “BROKERS’
TRANSACTIONS”

RULE 144 “MANNER OF SALE” REQUIREMENTS

 

The securities shall be sold in “brokers’ transactions” within the
meaning of Section 4(4) of the Securities Act or in transactions directly
with a “market maker,” as that term is defined in Section 3(a)(38) of the
Securities Exchange Act of 1934, and the person selling the securities shall
not (1) solicit or arrange for the solicitation of orders to buy the securities
in anticipation of or in connection with such transaction, or (2) make any
payment in connection with the offer or sale of the securities to any person
other than the broker who executes the order to sell the securities.

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