Document:

Exhibit 4.6

 

NEITHER THIS WARRANT NOR
THE SHARES OF COMMON STOCK PURCHASED UPON EXERCISE OF THIS WARRANT MAY BE
TRANSFERRED WITHOUT (I) THE OPINION OF COUNSEL SATISFACTORY TO SOUTHWEST CASINO
CORPORATION THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION
UNDER THE FEDERAL SECURITIES ACT OF 1933 AND APPLICABLE STATE LAW; OR (II) SUCH
REGISTRATION. IN ADDITION, THE UNDERLYING SHARES OF COMMON STOCK ARE SUBJECT TO
RESTRICTION AND RIGHTS OF REDEMPTION CONTAINED IN THE COMPANY’S AMENDED AND
RESTATED ARTICLES OF INCORPORATION, AS THE SAME MAY BE AMENDED FROM TIME
TO TIME.

 

SOUTHWEST CASINO CORPORATION

WARRANT TO PURCHASE SHARES OF COMMON STOCK

 

Void after 4:00 p.m.,
Minneapolis, Minnesota time on October 19, 2010

 

This warrant (“Warrant”) certifies that                                         (“Holder”), is entitled to purchase, subject to fulfillment of
the terms and conditions in this Warrant (including, to the extent required,
the approval of all state and federal regulatory authorities having jurisdiction
over Southwest Casino Corporation (the “Company”)),
from the Company at any time before 4:00 p.m. Minneapolis time on October 19,
2010 (the “Exercise Period”), 100,000 shares
of Common Stock of the Company (“Common Stock”)
at the purchase price of $.58 per share. The number of shares of Common Stock
Holder will receive upon exercise of this Warrant and the price to be paid for
a share of Common Stock may be adjusted from time to time as stated in
this Warrant. The shares of Common Stock deliverable upon exercise of this
Warrant are sometimes referred to as “Warrant Shares”
and the purchase price of each share of Common Stock under this Warrant is
sometimes referred to as the “Exercise Price.”  The term “Warrant”
as used in this Warrant includes any warrants issued in exchange for,
substitution for, and replacement of this Warrant or into which this Warrant may be
divided or exchanged.

 

Section 1.                                          Exercise
of Warrant. Subject to the provisions of this Warrant (including, but
not limited to, the approval of all state and federal regulatory authorities
that have jurisdiction over the Company), this Warrant may be exercised at
any time during the Exercise Period by the presentation and surrender to the
Company of this Warrant with (1) the Purchase Form attached as Exhibit A,
duly executed by the Holder, and (2) payment, in cash, by wire transfer to
an account of the Company, or by certified or official bank check payable to
the order of the Company, of the Exercise Price payable for the Warrant Shares
being purchased (payment must include all applicable federal and state taxes). If
the Holder purchases less than all of the Warrant Shares, the Company will
execute and deliver to the Holder a new Warrant evidencing the right of the
Holder to purchase the balance of the shares purchasable under the Warrant
Shares on the terms provided in this Warrant.

 

As
soon as practicable after the exercise of this Warrant and payment of the
Exercise Price, the Company will cause to be issued in the name of and
delivered to the Holder, or as the Holder may direct, a certificate or
certificates representing the number of Warrant Shares purchased. The Company may require
that the certificate or certificates contain a legend substantially as follows:

 

“The
securities represented by this certificate (i) have not been registered
under the Securities Act of 1933, as amended, or any state securities laws; (ii) may not
be sold, offered for sale, or

 

1

 

transferred
in the absence of either an effective registration under the Securities Act of
1933, as amended, and under the applicable state securities laws, or an opinion
of counsel for the Company that such transaction is exempt from registration
under the Securities Act of 1933, as amended, and under the applicable state
securities laws; and (iii) a holder of the securities will be required to
comply with all federal and state rules and regulations regarding gaming
operations applicable to the Company and its subsidiaries and may be
required to sell the securities to the Company or otherwise dispose of the
securities if continued ownership of the securities by the holder may result
in a violation of applicable rules or regulations or the disapproval,
modification, loss or non-renewal of any contract or license or other consent
or approval related to the gaming operations of the Company or any subsidiary
of the Company.”

 

Section 2.                                          Reservation
of Shares. The Company agrees that, at all times until the expiration
of this Warrant, it will reserve for issuance and delivery upon exercise of
this Warrant the number of shares of its Common Stock required for issuance or
delivery upon exercise of this Warrant.

 

Section 3.                                          Assignment or Loss of Warrant. This
Warrant is issued subject to the following terms, conditions, and limitations:

 

3.1                               Assignment/Transfer
of Warrant. This Warrant is not assignable or transferable unless
accompanied by a favorable opinion of counsel satisfactory to the Company, as
stated in Section 6 of this Warrant; except that it may be
transferred according to the terms of the will of the Holder, or the law of
intestate succession, upon the death of the Holder. Any assignment must be made
by surrender of this Warrant to the Company with a Form of Assignment
acceptable to the Company and duly executed and with funds sufficient to pay
any transfer tax; whereupon the Company, without charge, will execute and
deliver a new warrant in the name of the assignee named in the instrument of
assignment and this Warrant will be promptly canceled.

 

3.2                               Loss
of Warrant. Upon receipt by the Company of evidence satisfactory to it
of the loss, theft, destruction, or mutilation of this Warrant, and (in the
case of loss, theft or destruction) of reasonably satisfactory indemnification,
and upon surrender and cancellation of this Warrant if mutilated, the Company
will execute and deliver a new Warrant of like tenor and date to the Holder or
such Holder’s designee.

 

Section 4.                                          Rights
of the Holder. The Holder, by virtue of this Warrant, is not entitled
to any rights of a stockholder in the Company, either at law or in equity, and
the rights of the Holder are limited to those expressed in this Warrant and are
not enforceable against the Company except to the extent stated in this
Warrant.

 

Section 5.                                          Registration
Rights. The shares of Common Stock issuable upon exercise of this
Warrant are subject to the registration rights stated in the separate
Registration Rights Agreement between the Company and the Holder dated the same
date as this Warrant.

 

Section 6.                                          Anti-Dilution
Provisions.

 

6.1                               Issuance
of Dividends and/or Stock Splits. If, before this Warrant is exercised
or expires, the Company declares and issues any shares of its Common Stock as a
stock dividend or subdivides the number of outstanding shares of its Common
Stock into a greater number of shares, the then applicable Exercise Price will
be proportionately reduced and the number of shares then purchasable under this
Warrant will be proportionately increased. Conversely, if the Company reduces
the number of

 

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outstanding shares of
Common Stock by combining shares into a smaller number of shares (e.g. reverse
stock split), the then applicable Exercise Price will be proportionately
increased and the number of shares of Common Stock then purchasable under this
Warrant will be proportionately decreased. Any dividend paid or distributed
upon the Common Stock in securities convertible into shares of Common Stock
will be treated as a dividend paid in Common Stock to the extent that shares of
Common Stock are issuable upon the conversion of such convertible security.

 

6.2                               Fractional
Shares. No fractional shares or script representing fractional shares
of Common Stock will be issued upon the exercise of this Warrant. With respect
to any fraction of a share called for upon any exercise of this Warrant, the
Company will pay to the Holder an amount in cash equal to that fraction
multiplied by the market value of a full share of Common Stock on the day of
exercise, as determined in good faith by the Company.

 

6.3                               Reclassification,
Reorganization or Merger. In case of any reclassification, capital
reorganization, or other change of outstanding shares of Common Stock of the
Company (other than a change in par value, or from par value to no par value,
or from no par value to par value, or as a result of an issuance of Common
Stock by way of dividend or other distribution or of a subdivision or
combination), or in case of any consolidation or merger of the Company with or
into another corporation (other than a merger with a subsidiary in which the
Company is the continuing corporation and which does not result in any
reclassification, capital reorganization, or other change of outstanding shares
of Common Stock), or in case of any sale or conveyance of all or substantially
all of the assets of the Company to another corporation, the Company shall
cause effective provision to be made so that the Holder shall have the right
thereafter, by exercising this Warrant, to purchase the kind and amount of
shares of stock and other securities and property receivable upon that
reclassification, capital reorganization, or other change, consolidation,
merger, sale or conveyance as may be issued or payable with respect to or
in exchange for the number of shares of Common Stock of the Company purchasable
upon the exercise of this Warrant had that recapitalization, capital
reorganization, or other change, consolidation, merger, sale or conveyance not
taken place. Any such provisions shall include provision for adjustments, which
shall be as nearly equivalent, as may be practicable to the adjustments
provided for in this Warrant. The foregoing provisions of this Section 5
will similarly apply to successive reclassifications, capital reorganizations,
changes of shares of Common Stock, and to successive consolidations, mergers,
sales or conveyances.

 

Section 7.                                          Transfer
to Comply With the Securities Act. This Warrant and the Warrant Shares
or any other security issued or issuable upon exercise of this Warrant may not
be transferred without (i) the opinion of counsel satisfactory to the
Company that such transfer may lawfully be made without registration under
the Federal Securities Act of 1933, as amended (the “Securities
Act”), and applicable state law; or (ii) such registration. Each
certificate representing Warrant Shares or other securities issued upon
exercise of this Warrant may bear a legend substantially as set forth in Section 1
above.

 

Section 8.                                          Representations
and Warranties of Holder. The Holder represents and warrants to the
Company the following:

 

8.1                               Holder
is an “Accredited Investor” as defined in Rule 501(a) of Regulation D
under the Securities Act of 1933, as amended (the “Act”).

 

8.2                               As a sophisticated investor, the Holder
has such knowledge and experience in financial business matters that the Holder
is capable of evaluating the merits and risks of the prospective investment in
the Warrant and the Warrant Shares.

 

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8.3                               The
Holder recognizes that an investment in the Warrant and the Warrant Shares of
Common Stock involves a high degree of risk, that transferability and resale is
restricted and that the Holder could sustain a loss of Holder’s entire
investment the Warrant and the Warrant Shares.

 

8.4                               In
connection with the acquisition of the Warrant, the Holder represents and
warrants that the Holder intends to acquire the Warrant and the Warrant Shares
for investment purposes and not with a view to or for resale in connection with
any distribution of the Warrant or the Warrant Shares, and agrees that the
Holder will not sell or assign the Warrant or the Warrant Shares without
registration under all applicable securities laws or appropriate exemption from
applicable registration requirements. The Holder understands and acknowledges
that neither the Warrant nor the Warrant Shares have been registered under the
Securities Act nor applicable state securities laws and therefore will not be
freely transferable. The Holder also understands and acknowledges that the
Company is under no obligation to register the Warrant or the Warrant Shares.

 

Section 9.                                          Survival of Representations and Warranties.
The representations and warranties set forth in Section 6 above will
survive the exercise of the Warrant.

 

Section 10.                                   Applicable Law. This Warrant is
governed by and must be construed in accordance with the laws of the State of
Minnesota.

 

IN WITNESS WHEREOF, this Warrant has been duly
executed by the undersigned as of October 20, 2005.

 

	
   

  	
  SOUTHWEST CASINO
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Jeffrey S.
  Halpern, Chairman of the Board

  
	
   

  	
   

  
	
  Accepted and
  agreed to:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Holder

  	
   

  
				

 

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EXHIBIT A

 

PURCHASE FORM

 

To be signed upon exercise of Warrant.

 

The
undersigned, the Holder of the attached Warrant (the “Warrant”), irrevocably elects to exercise
the purchase right represented by the Warrant for, and to purchase under the
Warrant,                             
of the shares of Common Stock of Southwest Casino Corporation (the “Company”) to which the Warrant relates and makes payment of
$                                                
($                  
per share) for those shares in cash or by certified check, which payment is
included with this Purchase Form. The undersigned requests that a certificate
representing the shares purchased be delivered to the undersigned at the
address stated below:

 

(a)                                  The
shares of common stock purchasable upon exercise of the attached Warrant (the “Warrant Shares”) have not been registered
under the Securities Act of 1933, as amended (the “Act”)
or applicable state securities laws and are being issued by the Company under
exemptions from such registration requirements. Neither the Securities and
Exchange Commission nor any state securities division has made an independent
determination that the Securities are exempt from registration. Any
representation to the contrary is a criminal offense.

 

(b)                                 The
Warrant Shares are subject to restrictions on transferability and resale and may not
be transferred or resold except as permitted under the Company’s Articles of
Incorporation and Bylaws, the Act and the applicable state laws, pursuant to
registration or exemption therefrom, and, if applicable, upon receipt of the
prior written approval of the Colorado Limited Gaming Control Commission, South
Dakota Commission on Gaming and such other state regulatory authorities as may have
jurisdiction.

 

(c)                                  The
undersigned Holder represents, warrants, and agrees that (i) the Company
has made no representations as to the value of the Warrant Shares; (ii) the
Holder has been provided with the opportunity to ask such information of the
Company’s management and to obtain such information regarding the Company, its
business and affairs as the Holder deems necessary or appropriate in
determining to accept the Securities under the terms and conditions of this
Agreement; (iii) the Holder is accepting the Warrant Shares for Holder’s
own account, for long-term investment and without the intention of reselling or
redistributing the Warrant Shares, (iv) the Company has no obligation to
register the Warrant Shares; and (v) any transfer of the Warrant Shares is
restricted by applicable state and federal securities laws and will be further
restricted by a restrictive legend placed on the certificate(s) representing
the Warrant Shares.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

A-1Exhibit 4.8

 

DIRECTOR
STOCK OPTION AGREEMENT

(NON-QUALIFIED
STOCK OPTION)

 

THIS DIRECTOR STOCK
OPTION AGREEMENT (the “Agreement”) is entered into and effective January 10,
2006 (the “Date of Grant”), by and between Southwest Casino Corporation (the “Company”)
and
                          
(the “Optionee”).

 

A.                 The Company has
adopted its 2004 Stock Incentive Plan (the “Plan”) which authorizes the Board
of Directors of the Company, or a committee as provided for in the Plan (the
Board or this committee are referred to as the “Committee” in this Agreement),
to grant incentive stock options to directors of the Company (as defined in the
Plan).

 

B.                   The Company
desires to give the Optionee an inducement to acquire a proprietary interest in
the Company and an added incentive to advance the interests of the Company by
granting to the Optionee an option to purchase shares of common stock of the
Company under the Plan.

 

C.                   Terms stated
but not otherwise defined in this Agreement have the meanings assigned to those
terms in the Plan.

 

Accordingly, the parties
agree as follows:

 

1.                                      Grant of Option.

 

The Company hereby
grants to the Optionee the right, privilege, and option (the “Option”) to
purchase 150,000 shares (the “Option Shares”) of the Company’s common stock,
$.001 par value (the “Common Stock”), according to the terms and subject to the
conditions stated in this Agreement and as stated in the Plan. This Option is not
intended to be an “incentive stock option,” as that term is used in Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”).

 

2.                                      Option Exercise Price.

 

The per share price to be
paid by Optionee upon exercise of this Option will be $0.65.

 

3.                                      Duration of Option and
Time of Exercise.

 

3.1                                 Initial Period of Exercisability. Subject to Sections 3.2 and 3.3 below,
this Option will become exercisable with respect to the Option Shares in 12
quarterly installments beginning on December 31, 2005 and continuing on
the last day of each fiscal quarter of the Company, as provided in the table
below. The table below states the initial dates of exercisability of each
installment and the number of Option Shares as to which this Option will become
exercisable on those dates:

 

	
  Initial Date of

  Exercisability

  	
   

  	
  Number of Option Shares

  Available for

  Exercise at each Date

  
	
  Mar. 31, June 30, Sept. 30, Dec. 31,
  2006

  	
   

  	
  12,500

  
	
  Mar. 31, June 30, Sept. 30, Dec. 31,
  2007

  	
   

  	
  12,500

  
	
  Mar. 31, June 30, Sept. 30, Dec. 31,
  2008

  	
   

  	
  12,500

  

 

The right to exercise
this Option is cumulative with respect to the Option Shares becoming
exercisable on the dates stated above; provided, however, that in no event will
this Option be

 

 

exercisable after, and
this Option will become void and expire as to all unexercised Option Shares at,
5:00 p.m. (Minnesota time) on January 9, 2016 (the “Time of
Termination”).

 

3.2                                 Termination of Service.

 

(a)                                  Termination Due to Mandatory Retirement. If Optionee’s service with the Board of
Directors of the Company is terminated by reason of the Optionee’s mandatory
retirement in accordance with the policies of the Company and its Board of
Directors, this Option will continue to become exercisable and remain
exercisable as if the Optionee continued to serve as a Director of the Company
(but not after the Time of Termination).

 

(b)                                 Termination Due to Death or Disability. If Optionee’s service with the Board of
Directors of the Company is terminated by reason of the Optionee’s death or
Disability, this Option will become immediately exercisable in full as of the
date of death or Disability and remain exercisable for a period of 12 months
after such termination (but not after the Time of Termination).

 

(c)                                  Termination for Reasons Other Than Death,
Disability or Retirement. Except as provided in Section 3.3, if Optionee’s service with
the Board of Directors is terminated for any reason other than death,
Disability or mandatory retirement, this Option will remain exercisable to the
extent exercisable on the date of termination of Optionee’s service on the
Board of Directors and remain exercisable for a period of 90 days after such
termination.

 

3.3                                 Change in Control.

 

(a)                                  Impact of Change in Control. If a Change in Control of the Company
occurs whereby the acquiring entity or successor to the Company does not assume
this Option or replace it with a substantially equivalent incentive award,
then, as of the date of the Change of Control, this Option will vest as to all
shares and become immediately exercisable in full and will remain exercisable
until the Time of Termination, regardless of whether the Optionee remains in
the service of the Company. In addition, if a change in control occurs, the
Committee, in its sole discretion and without consent of the Optionee, may determine
that the Optionee will receive, with respect to some or all of the Option
Shares, cash in the amount of the excess of the Fair Market Value (as defined
in the Plan) of those Option Shares immediately before the effective date of
the Change in Control over the per share exercise price of this Option.

 

(b)                                 Limitation on Change in Control Payments. Notwithstanding anything in this Section 3.3
to the contrary, if, with respect to the Optionee, the acceleration of the
vesting of this Option as provided above (which acceleration could be deemed a “payment”
within the meaning of Section 280G(b)(2) of the Code), together with
any other payments that the Optionee has the right to receive from the Company
or any corporation which is a member of an “affiliated group” (as defined in Section 1504(a) of
the Code without regard to Section 1504(b) of the Code) of which the
Company is a member, would constitute a “parachute payment” (as defined in Section 280G(b)(2) of
the Code), the payments to the Optionee stated herein will be reduced to the
largest amount that will result in no portion of the payments being subject to
the excise tax imposed by Section 4999 of the Code; provided, however,
that if the Optionee is subject to a separate agreement with the Company that
expressly addresses the potential

 

2

 

application of Sections 280G or 4999 of the Code
(including, without limitation, that “payments” under such agreement or
otherwise will be reduced, that the Optionee will have the discretion to
determine which “payments” will be reduced, that such “payments” will not be
reduced or that such “payments” will be “grossed up” for tax purposes), then
this Section 3.3(b) will not apply, and any payments to the Optionee
under Section 3.3(a) of this Agreement will be treated as payments
arising under such separate agreement.

 

4.                                      Manner of Option Exercise.

 

4.1                                 Notice. Optionee may exercise this Option, in whole or
in part from time to time, subject to the conditions in the Plan and in
this Agreement, by delivery, in person, by facsimile or electronic transmission
(if confirmed) or through the mail, to the Company at its principal executive
office (Attention: Chief Financial Officer), of a written notice of exercise. This
notice must (a) be in a form substantially similar to the form attached
to this Agreement as Exhibit A, or such other form as is
satisfactory to the Committee, (b) identify this Option, (c) specify
the number of Option Shares with respect to which this Option is being
exercised, and (d) be signed by the person or persons so exercising this
Option. The notice must be accompanied by payment in full of the total purchase
price of the Option Shares purchased. If this Option is being exercised as
provided by the Plan and Section 3.2 above, by any person or persons other
than the Optionee, the notice must be accompanied by appropriate proof of right
of that person or persons to exercise this Option. As soon as practicable after
the effective exercise of this Option, the Optionee will be recorded on the
stock transfer books of the Company as the owner of the Option Shares
purchased, and the Company will deliver to the Optionee one or more duly issued
stock certificates evidencing ownership.

 

4.2                                 Payment. At the time of exercise of this Option, the
Optionee must pay the total purchase price of the Option Shares to be purchased
entirely in cash (including a check, bank draft or money order, payable to the
order of the Company); provided, however, that the Committee, in its sole
discretion, may allow such payment to be made, in whole or in part, by
tender of a promissory note (on terms acceptable to the Committee in its sole
discretion) or a Broker Exercise Notice or Previously Acquired Shares, or by a
combination of such methods. If Optionee is permitted to pay the total purchase
price of this Option in whole or in part with Previously Acquired Shares,
the value of those shares will equal their Fair Market Value on the date of
exercise, in whole or in part, of this Option.

 

5.                                      Rights of Optionee;
Transferability.

 

5.1                                 Rights as a Shareholder. The Optionee has no rights as a
shareholder with respect to the Option Shares issuable upon exercise of this
Option unless and until all conditions to the effective exercise of this Option
(including, without limitation, the conditions stated in Sections 4 and 6 of
this Agreement) have been satisfied and the Optionee has become the holder of
record of the Option Shares. No adjustment will be made for dividends or
distributions for which the record Date precedes the date the Optionee becomes
the holder of record of the Option Shares, except as may otherwise be
provided in the Plan or determined by the Committee in its sole discretion.

 

5.2                                 Restrictions on Transfer. Except under testamentary will or the
laws of descent and distribution or as otherwise expressly permitted by the
Plan, no right or interest of the Optionee in this Option before exercise may be
assigned or transferred, or subjected to any lien, during the lifetime of the
Optionee, either voluntarily or involuntarily, directly or indirectly, by

 

3

 

operation of law or
otherwise. The Optionee will, however, be entitled to designate a beneficiary
to receive this Option upon Optionee’s death, and, in the event of the Optionee’s
death, exercise of this Option (to the extent permitted under Section 3.2(a) of
this Agreement) may be made by the Optionee’s legal representatives, heirs
and legatees.

 

5.3                                 Breach of Confidentiality, Assignment of
Inventions or Non-Compete Agreements. Notwithstanding anything in this Agreement or the
Plan to the contrary, if Optionee materially breaches the terms of any written
confidentiality, assignment of inventions or non-compete agreement entered into
with the Company or any Subsidiary, whether such breach occurs before or after
termination of the Optionee’s service to the Company, the Committee may immediately
terminate all rights of the Optionee under the Plan and this Agreement.

 

6.                                      Securities Law and Other
Restrictions.

 

Notwithstanding any other
provision of the Plan or this Agreement, the Optionee may not sell,
assign, transfer or otherwise dispose of, any Option Shares unless (a) there
is in effect with respect to the Option Shares a registration statement under
the Securities Act and any applicable state or foreign securities laws or an
exemption from such registration, and (b) there has been obtained any
other consent, approval or permit from any other regulatory body that the
Committee, in its sole discretion, deems necessary or advisable. The Company may condition
a sale or transfer by Optionee upon the receipt of any representations or
agreements from the parties involved, and the placement of any legends on
certificates representing Option Shares, as may be deemed necessary by the
Company in order to comply with such securities law or other restrictions.

 

7.                                      Withholding Taxes.

 

The Company is entitled
to (a) withhold and deduct from future amounts owed to Optionee, or make
other arrangements for the collection of, all legally required amounts
necessary to satisfy any federal, state or local withholding and
employment-related tax requirements attributable to this Option including,
without limitation, the grant or exercise of this Option or a disqualifying
disposition of any Option Shares, or (b) require the Optionee promptly to
remit the amount of such withholding to the Company before acting on the
Optionee’s notice of exercise of this Option. If the Company is unable to
withhold such amounts, for whatever reason, the Optionee agrees to pay to the
Company an amount equal to the amount the Company would otherwise be required
to withhold under federal, state or local law.

 

8.                                      Adjustments.

 

If any reorganization,
merger, consolidation, recapitalization, liquidation, reclassification, stock
dividend, stock split, combination of shares, rights offering, divestiture or
extraordinary dividend (including a spin-off), or any other similar change in
the corporate structure or shares of the Company occurs, the Committee (or, if
the Company is not the surviving corporation in any such transaction, the board
of directors of the surviving corporation), in order to prevent dilution or
enlargement of the rights of the Optionee, must make appropriate adjustment to
the number and kind of securities or other property (including cash) subject
to, and the exercise price of, this Option.

 

4

 

9.                                      Subject to Plan.

 

This Option and the
Option Shares granted and issued under this Agreement have been granted and
issued under, and are subject to the terms of, the Plan. The terms of the Plan
are incorporated by reference in this Agreement in their entirety, and the
Optionee, by execution of this Agreement, acknowledges having received a copy
of the Plan. The provisions of this Agreement will be interpreted as to be
consistent with the Plan, and any ambiguities in this Agreement will be
interpreted by reference to the Plan. If any provision of this Agreement is
inconsistent with the terms of the Plan, and the Plan does not permit that
provision to vary from the terms of the Plan, the terms of the Plan will
prevail.

 

10.                               Miscellaneous.

 

10.1                           Binding Effect. This Agreement will be binding upon the
heirs, executors, administrators and successors of the parties to this
Agreement.

 

10.2                           Governing Law. This Agreement and all rights and
obligations under this Agreement will be construed in accordance with the Plan
and governed by the laws of the State of Minnesota, without regard to conflicts
of laws provisions. Any legal proceeding related to this Agreement will be
brought in an appropriate Minnesota court and the parties to this Agreement
consent to the exclusive jurisdiction of the court for this purpose.

 

10.3                           Entire Agreement. This Agreement and the Plan state the
entire agreement and understanding of the parties to this Agreement with
respect to the grant and exercise of this Option and the administration of the
Plan and supersede all prior agreements, arrangements, plans and understandings
relating to the grant and exercise of this Option and the administration of the
Plan.

 

10.4                           Amendment and Waiver. Other than as provided in the Plan,
this Agreement may be amended, waived, modified or canceled only by a
written instrument executed by the parties to this Agreement or, in the case of
a waiver, by the party waiving compliance.

 

The parties to this Agreement
have executed this Agreement effective the day and year first above written.

 

	
   

  	
  SOUTHWEST CASINO CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Thomas E. Fox, President

  
	
   

  	
   

  
	
   

  	
   

  
	
  By execution of this Agreement, 

  	
  OPTIONEE

  
	
  the Optionee acknowledges having

  	
   

  
	
  received a copy of the Plan.

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
  (Name and Address)

  
	
   

  	
   

  
	
   

  	
   

  

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]