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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
      D.C. 20549</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Form
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to Section 13 or 15(d)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
      the
      Securities Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of Earliest event Reported): September 7, 2006 (August 31,
      2006)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong><u>WINWIN
      GAMING, INC.</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of registrant as specified in its charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

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            <td valign="top" width="25%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
            <td valign="top" width="25%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0-21566</font></div>
            </td>
            <td valign="top" width="25%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">84-1219819</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="25%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or Other Jurisdiction of Incorporation or Organization)</font></div>
            </td>
            <td valign="top" width="25%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                File Number)</font></div>
            </td>
            <td valign="top" width="25%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer Identification No.)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8687
      West
      Sahara, Suite 201, Las Vegas, Nevada 89117
</font>
      <div>
        <hr style="COLOR: black" align="left" noshade size="1" width="100%">
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Address
      of Principal Executive Offices</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Zip
      Code</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(702)
      212-4530</font>
      <hr style="COLOR: black" align="left" noshade size="1" width="100%">&#160;Registrant&#8217;s
      Telephone Number, Including Area Code</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>see</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      General
      Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>&#160;&#160;
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font face="Wingdings">o</font>&#160;&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font face="Wingdings">o</font>&#160;&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font face="Wingdings">o</font>&#160;&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>SECOND
      AMENDED AND RESTATED JOINT VENTURE AGREEMENT</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Background</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      October 5, 2005, WinWin Gaming, Inc. (&#8220;WinWin&#8221;), reported its entry on September
      30, 2005, into a joint venture agreement (the &#8220;Original JV Agreement&#8221;) with
      Solidus Networks, Inc., d/b/a PayByTouch Solutions (&#8220;Solidus&#8221;). Pursuant to the
      Original JV Agreement, and a related secured promissory note and security
      agreement, as subsequently amended, Solidus loaned WinWin $2.5 million (the
      &#8220;Loan&#8221;) and WinWin granted Solidus a security interest in all of WinWin's
      assets. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      20, 2006, WinWin reported (the &#8220;April 20th Report&#8221;) the parties&#8217; amendment and
      restatement of the Original JV Agreement, pursuant to an amended and restated
      joint venture agreement (the &#8220;First Restated JV Agreement&#8221;). As described in
      further detail in the April 20th Report, upon the occurrence of the first
      closing under the First Restated JV Agreement, the parties would convert the
      outstanding obligations of WinWin to Solidus under the note into shares of
      WinWin&#8217;s Series A Preferred Stock, to be authorized pursuant to a certain
      Amended and Restated Certificate of Incorporation (the &#8220;Original Restated
      Charter&#8221;), which was required by the First Restated JV Agreement to become
      effective as a condition to the first closing. In addition, Solidus would
      acquire additional shares of Series A Preferred Stock in exchange for the
      issuance of certain securities of Solidus at the first closing, and pursuant
      to
      a second closing, Solidus could purchase additional shares of Series A Preferred
      Stock, at Solidus&#8217; option, for any combination of such securities of Solidus and
      cash as Solidus elected. Furthermore, the Original Restated Charter would have
      given Solidus the right to require that WinWin repurchase or redeem all of
      the
      outstanding shares of WinWin&#8217;s common stock, for a price to be determined as set
      forth therein, thereby permitting Solidus to become the sole stockholder of
      WinWin, on terms described in further detail in the April 20th Report (such
      right being referred to hereinafter as the &#8220;Redemption Right&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      August
      31, 2006, WinWin and Solidus amended and restated the First Restated JV
      Agreement (the &#8220;Second Restated JV Agreement&#8221;), to modify certain features of
      the transactions contemplated under the First Restated JV Agreement. The Second
      Restated JV Agreement (i) eliminates the Redemption Right, (ii) provides for
      the
      designation of a series of preferred stock, the &#8220;Series A-1 Preferred Stock,&#8221;
having substantially identical rights as the Series A Preferred Stock, pursuant
      to the filing of a certificate of designation with the Delaware Secretary of
      State (the &#8220;Certificate of Designation&#8221;) and (iii) provides for the adoption and
      filing of an Amended and Restated Certificate of Incorporation (the &#8220;Restated
      Charter&#8221;), at which time all shares of Series A-1 Preferred Stock would be
      converted to Series A Preferred Stock, as soon as practicable following the
      occurrence of the first closing and compliance with applicable regulatory
      requirements. As a result of these amendments, the possibility that the series
      of transactions contemplated by the First Restated JV Agreement could result
      in
      a buy-out of all outstanding shares of WinWin Common Stock was eliminated,
      and
      the parties were able to consummate the first closing, providing for the
      issuance of the Series A-1 Preferred Stock rather than Series A Preferred Stock,
      prior to the effectiveness of the Restated Charter or the delivery to the
      stockholders of an Information Statement with respect thereto. The material
      terms of the Second Restated JV Agreement and the transactions contemplated
      thereby are described in further detail below. </font></div>
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      </div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
      Second Amended and Restated Joint Venture Agreement</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Closings
      and Closing Conditions</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Second Restated JV Agreement, WinWin agreed to sell to Solidus, and
      Solidus agreed to purchase from WinWin, shares of WinWin&#8217;s Series A-1 Preferred
      Stock, and, at Solidus&#8217; option, WinWin&#8217;s Series A Preferred Stock. The Series
      A-1 Preferred Stock, which is initially convertible into shares of Common Stock
      at a ratio of one hundred shares of Common Stock for each share of Series A-1
      Preferred Stock, was issued at the first closing contemplated by the Second
      Restated JV Agreement, which occurred on August 31, 2006 (the &#8220;First Closing&#8221;),
      at a purchase price of $79.10 per share. The Series A-1 Preferred Stock, which
      is initially convertible into shares of Common Stock at a ratio of ten shares
      of
      Common Stock for each share of Series A Preferred Stock, will be issued at
      the
      second closing contemplated by the Second Restated JV Agreement (the &#8220;Second
      Closing&#8221;) at a purchase price of $7.91 per share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      of
      the two closings described above is subject to several closing conditions,
      which
      are described in more detail below. At the First Closing, Solidus acquired
      from
      WinWin 149,401 shares of Series A-1 Preferred Stock (the &#8220;Initial WinWin
      Shares&#8221;), which represents 19% of the outstanding capital stock of WinWin on an
      as-converted-to-common basis as of the First Closing. Solidus paid for the
      Initial WinWin Shares by (i)&#160;canceling all principal and accrued interest
      on the promissory note evidencing the Loan and (ii)&#160;issuing to WinWin
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,829,336
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
      of
      Solidus&#8217; Series C Preferred Stock at a deemed value of $5.00 per
      share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      First
      Closing was subject to the satisfaction or waiver of several closing conditions,
      including the following conditions:</font></div>
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    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
              execution and delivery of an investment option agreement (described
              below);</font></div>
          </td>
        </tr>

    </table>
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    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">an
              increase in the authorized number of WinWin&#8217;s board of directors to seven,
              with at least two vacancies;</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
              execution and delivery of a registration rights agreement (described
              below); </font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
              approval by WinWin&#8217;s board of directors of (a) the designation of
              6,000,000 of the 10,000,000 shares of preferred stock currently authorized
              by WinWin&#8217;s Certificate of Incorporation as &#8220;Series A-1 Preferred Stock&#8221;
              and (b) the filing by WinWin of the Certificate of Designation;
              and</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">other
              customary conditions.</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      the
      Second Closing, which is to occur, at Solidus' option at any time within one
      year of the First Closing, if at all, Solidus may acquire from WinWin a number
      of shares of Series A-1 Preferred Stock or Series A Preferred Stock, depending
      on whether the Restated Charter, as further described below, shall have become
      effective, sufficient for Solidus to increase its ownership interest in WinWin
      to thirty-five percent (35%) of WinWin&#8217;s capital stock on a fully diluted,
      as-converted-to-common basis. Solidus may pay the purchase price for these
      second closing shares either in cash, through the issuance of shares of Solidus&#8217;
Series C Preferred Stock with a deemed value of $5.00 per share, or a
      combination of both. The Second Closing is also subject to the satisfaction
      or
      waiver of closing conditions, including, the execution and delivery of a sales
      representative agreement (described below), and additional customary conditions.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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      <div id="HDR">
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Covenants</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WinWin
      agreed to various covenants in the Second Restated JV Agreement. Among other
      things, these covenants impose obligations on WinWin to make required filings
      under state and federal securities laws, to obtain the requisite stockholder
      vote to amend WinWin&#8217;s certificate of incorporation, to provide Solidus with
      access to WinWin&#8217;s senior management, accountants, records and other documents,
      and to provide Solidus with financial and other information regarding WinWin.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
      material covenants and obligations of WinWin under the Second Restated JV
      Agreement, include the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Restated
      Charter.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      WinWin
      will seek the written consent of the stockholders of WinWin to the adoption
      of
      the Restated Charter creating the Series A Preferred Stock with the rights
      described below, and will file such Restated Charter with the Secretary of
      State
      of the State of Delaware. Upon the filing of the Restated Charter, all
      outstanding shares of Series A-1 Preferred Stock will be converted automatically
      into shares of Series A Preferred Stock at a ratio of ten shares of Series
      A
      Preferred Stock for each share of Series A-1 Preferred Stock. The terms of
      the
      Restated Charter and the Series A Preferred Stock to be created thereunder
      are
      described below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Board
      of Directors</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      At the
      request of Solidus, WinWin&#8217;s board must nominate two directors designated by
      Solidus for election to the board of directors of WinWin, and during any period
      when Solidus has the right to elect board members, but has not done so, WinWin
      must maintain at least two vacancies on its board of directors.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Cooperation</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Until
      December 31, 2006, WinWin is obligated to provide Solidus with physical and
      logistical support for Solidus&#8217; entry into China, including providing access to
      WinWin&#8217;s distribution channels and lawful contacts with government officials and
      making available without charge a limited amount of office space in Shanghai.
      Under the terms of the cooperation covenants, Solidus is required to provide
      WinWin with reasonable support and assistance in (i) promoting WinWin's
      products, services and technologies and (ii) obtaining financing. In addition,
      both parties must use commercially reasonable efforts to identify and exploit
      opportunities for the benefit of both parties.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Covenant.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      If at
      any time WinWin or its accountants determine that WinWin has a material weakness
      in its internal controls over financial reporting, WinWin must promptly provide
      notice of this determination to Solidus and, upon the written request of
      Solidus, remediate the material weakness within three months of the
      determination, provided that WinWin has available funds (as defined in the
      Second Restated JV Agreement) to do so or that Solidus agrees to reimburse
      the
      reasonable costs of the remediation above specified levels.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Negative
      Pledge.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      WinWin
      has agreed not to sell, transfer, pledge or otherwise encumber WinWin&#8217;s rights
      in the shares of Solidus&#8217; Series C Preferred Stock that it has acquired or may
      acquire under the Second Restated JV Agreement. WinWin is also obligated to
      maintain, preserve and defend its title to the those shares. This covenant
      expires on the date, following an initial public offering of Solidus, on which
      any lockup or market standoff restrictions applicable to Solidus shares
      expire.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Termination</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Second Restated JV Agreement will terminate upon the mutual agreement of the
      parties. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Indemnification</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      representations and warranties set forth in the amended and restated joint
      venture agreement expire one year following the closing at which the
      representations and warranties are made. Each party indemnifies the other party
      for inaccuracies in representations and warranties as of the date of the
      agreement and as of each closing date. Each party has the right to claw back
      the
      securities that it delivered to the other party under the Second Restated JV
      Agreement that are sufficient to satisfy the damages that constitute the basis
      for the indemnification claim. Before Solidus can make an indemnification claim
      to recover damages under the agreement, the extent of the damages must be at
      least $50,000 in the aggregate. Once the $50,000 threshold is achieved, then
      Solidus would be able to seek indemnification for the entire amount of damages
      going back to the first dollar of damages. Each party&#8217;s maximum indemnification
      liability under the agreement is limited by the deemed value of the securities
      exchanged by that party under the agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
      Amended and Restated Voting Agreements</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      August
      31, 2006, stockholders of WinWin holding approximately 43% of the issued and
      outstanding common stock of WinWin entered into amended and restated voting
      agreements (the &#8220;Restated Voting Agreements&#8221;), pursuant to which, each such
      stockholder agreed not to transfer, pledge, otherwise encumber or dispose of
      their stock. They also agreed to vote their shares in favor of the Restated
      Charter. The Restated Voting Agreements will terminate on the earlier to occur
      of (i) the date that the Second Restated JV Agreement terminates in accordance
      with its terms, and (ii) the date of the Second Closing under the Second
      Restated JV Agreement. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
      Ancillary Agreements</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      noted
      above, at or prior to the First Closing, WinWin (a) filed the Certificate of
      Designation, (b) entered into a registration rights agreement with Solidus
      (the
&#8220;Registration Rights Agreement&#8221;) and (c) granted to Solidus an investment option
      (the &#8220;Investment Option&#8221;). Following the First Closing, WinWin will seek
      stockholder approval of and file the Restated Charter and will commence
      negotiation of a sales representation agreement with Solidus (the &#8220;Sales
      Representative Agreement&#8221;). Each of these agreements and instruments are
      described below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>The
      Amended and Restated Certificate of Incorporation</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      a
      condition to the First Closing under the Second Restated JV Agreement, WinWin
      filed the Certificate of Designation with the Secretary of State of the State
      of
      Delaware on August 31, 2006 to create WinWin&#8217;s Series A-1 Preferred
      Stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Terms
      of the WinWin Series A-1 Preferred Stock.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      Certificate of Designation established a new series of WinWin preferred stock
      consisting of 6,000,000 shares designated as &#8220;Series A-1 Preferred Stock&#8221;. The
      Series A-1 Preferred Stock has the following attributes:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Series A-1 Preferred Stock ranks senior to any other class or series
              of
              WinWin stock with respect to dividend and liquidation
              rights.</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Series A-1 Preferred Stock is entitled to non-cumulative dividends,
              payable at a rate per annum equal to 8% of the $79.10 per share original
              issue price, when and if declared by the board of directors of
              WinWin.</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
              of Series A-1 Preferred Stock are entitled to distributions upon
              liquidation in the amount of the $79.10 per share original issue price
              plus an additional amount equal to 8% of the original issue price per
              year
              and any declared but unpaid dividends. </font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Series A-1 Preferred Stock votes together with all other classes of
              capital stock of the company on an as-converted-to-common basis. The
              holders of the Series A-1 Preferred Stock voting as a separate class
              are
              also entitled to elect two directors of
              WinWin.</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
              long as at least 85% of the shares of Series A-1 Preferred Stock first
              issued remain outstanding, holders of a majority of the shares of Series
              A-1 Preferred Stock outstanding have the right to
              veto:</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o&#160;&#160;</font></td>
          <td>
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              alteration or change of the rights, preferences or privileges of the
              Series A-1 Preferred Stock;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
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          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              creation of any new series of stock that is senior or on parity with
              the
              Series A-1 Preferred Stock with respect to redemption, voting, dividends
              or distribution of assets upon a
              liquidation;</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
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            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              creation of any new class of stock unless the shares of that new class
              of
              stock are subject to the purchase option and redemption rights of the
              certificate of incorporation;</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              repurchase or redemption of any shares of common stock, except in
              specified instances;</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
              business combination or sale of a controlling interest by WinWin of
              any of
              its subsidiaries or the sale of all or substantially all of WinWin&#8217;s
              assets;</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
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    </div>
    <div>&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
              voluntary dissolution or liquidation;</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
              amendment or waiver of any provision of WinWin&#8217;s certificate of
              incorporation or bylaws relative to the Series A-1 Preferred Stock
              or
              relating to an increase in the authorized number of shares of common
              stock;</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              payment or declaration of any dividend or the making of any other
              distribution on any shares of common or preferred stock;
              or</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              authorization or issuance of any additional shares of Series A-1 Preferred
              Stock or equity securities convertible, directly or indirectly, into
              additional shares of Series A-1 Preferred
              Stock.</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Series A-1 Preferred Stock is convertible, at any time, into WinWin
              common
              stock at a ratio of 100 shares of WinWin common stock for each share,
              subject to adjustment. The conversion ratio is subject to adjustment
              for
              dilutive issuances (i.e., issuances of common stock or common stock
              equivalents below $0.79 per share) on a weighted average basis, subject
              to
              specified exceptions. In addition, if certain specified warrants are
              exercised, then upon conversion of the Series A-1 Preferred Stock
              additional shares of common stock would be issuable in an amount that
              is
              equal to 66% of each share issued upon exercise of those
              warrants.</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WinWin
              is required to reserve at all times sufficient common stock for the
              purpose of effecting the conversion of the Series A-1 Preferred Stock;
              provided, however, that no Series </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A-1</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
              Preferred Stock may be converted into WinWin common stock unless and
              until
              WinWin has available sufficient authorized but unissued shares of WinWin
              common stock for the purpose of effecting such a
              conversion.</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Registration
      Rights Agreement</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      terms of the Registration Rights Agreement, upon the request of Solidus, WinWin
      would become obligated to register under the Securities Act in up to two
      separate registrations, the common stock underlying the shares of Series A-1
      Preferred Stock or Series A Preferred Stock issued to Solidus and any other
      shares of common stock issued to Solidus under the Second Restated JV Agreement.
      The Registration Rights Agreement also gives Solidus customary piggyback
      registration rights and the right to require WinWin to effect up to an
      additional two registrations if WinWin is eligible to use Form S-3. In addition,
      Solidus has a right of first offer to acquire any new securities that WinWin
      issues other than with respect to certain specified issuances. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Investment
      Option Agreement</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WinWin
      granted to Solidus an option, prior to the effective date of the Restated
      Charter, to purchase a number of shares of Series A-1 Preferred Stock, and
      from
      and after the effective date of the Restated Charter, to purchase a number
      of
      shares of Series A Preferred Stock that, together with other securities held
      by
      Solidus at the time of exercise, will be sufficient to give Solidus ownership
      of
      up to eighty percent (80%) of the outstanding common stock of WinWin on an
      as-converted-to-common basis following such exercise. The purchase price under
      the investment option agreement is payable by Solidus either in cash,
      free-trading stock of Solidus, or a combination of both. The fair market value
      purchase price will be determined either by agreement of the parties or, failing
      such agreement, by an appraisal procedure conducted at the time of Solidus&#8217;
exercise of the option. Th</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">e
      option
      is exercisable at any time from the date of the investment option agreement
      until the third anniversary of the First Closing; provided, however, that the
      option would automatically terminate upon the closing of the sale of all or
      substantially all of the assets of Solidus, or upon the closing of a merger,
      consolidation or similar transaction in which the stockholders of Solidus as
      of
      immediately prior to the transaction do not hold a majority of the voting power
      of the surviving company as of immediately following such transaction. The
      option is not assignable or transferable unless WinWin consents to any
      assignment or transfer.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>The
      Restated Charter</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      soon
      as practicable following the First Closing, WinWin must amend and restate its
      certificate of incorporation to, among other things, (i) increase the number
      of
      authorized shares of WinWin&#8217;s capital stock to 750,000,000 shares of authorized
      common stock and 60,000,000 shares of authorized preferred stock and (ii) create
      a class of preferred stock to be designated as WinWin&#8217;s Series A Preferred Stock
      (such amended and restated certificate of incorporation being referred to herein
      as the &#8220;Restated Charter&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Terms
      of the WinWin Series A-1 Preferred Stock and Series A Preferred
      Stock.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      Restated Charter, when filed, will establish a new series of WinWin preferred
      stock consisting of 60,000,000 shares that will be designated as &#8220;Series A
      Preferred Stock.&#8221; Upon the filing of the Restated Charter, the Series A-1
      Preferred Stock will be automatically converted into Series A Preferred Stock
      at
      a ratio of ten shares of Series A Preferred Stock per share of Series A-1
      Preferred Stock. The Series A Preferred Stock will have the following
      attributes:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Series A Preferred Stock is entitled to non-cumulative dividends, payable
              at a rate per annum equal to 8% of the $7.91 per share original issue
              price, when and if declared by the board of directors of
              WinWin.</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
              of Series A Preferred Stock will be entitled to distributions upon
              liquidation in the amount of the $7.91 per share original issue price
              plus
              an additional amount equal to 8% of the original issue price per year
              and
              any declared, but unpaid dividends.</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Series A Preferred Stock is convertible, at any time, into WinWin common
              stock at a ratio of 10 shares of WinWin common stock for each share,
              subject to adjustment.</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
              other rights, preferences and privileges of the Series A Preferred
              Stock
              are similar to those of the Series A-1 Preferred Stock, as described
              above. </font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Sales
      Representative Agreement</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
      the First Closing, WinWin and Solidus will negotiate a sales representative
      agreement on terms and conditions substantially similar to those described
      in
      the term sheet attached as </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit
      C</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      to the
      Second Restated JV Agreement. Those terms include the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Solidus
              will appoint WinWin as a non-exclusive marketing partner in China;
              </font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WinWin,
              at its own expense, will use its best efforts to market Solidus&#8217; products;
              and</font></div>
          </td>
        </tr>

    </table>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <table cellpadding="0" cellspacing="0" id="list" width="100%">

        <tr valign="top" style="line-height: 1.25;">
          <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif"><strong><em>&#183;&#160;&#160;</em></strong></font></td>
          <td>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WinWin
              would be entitled to a mutually agreeable fee based upon the revenues
              received from Solidus customers that WinWin signs
              up.</font></div>
          </td>
        </tr>

    </table>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing description of the terms of the Second Restated JV Agreement, the
      Registration Rights Agreement, the Investment Option Agreement and the Restated
      Voting Agreements, is qualified by reference to the provisions of those
      agreements, attached to this report as Exhibits 10.1 through 10.4. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      copy of
      the Company&#8217;s press release regarding the Second Restated JV Agreement is also
      attached hereto and is incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      3.02 </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SALE
      OF UNREGISTERED SECURITIES. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      August
      31, 2006, WinWin entered into a Second Amended and Restated Joint Venture
      Agreement (the &#8220;Second Restated JV Agreement&#8221;) with
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Solidus
      Networks, Inc., d/b/a PayByTouch Solutions (&#8220;Solidus&#8221;)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      pursuant to which WinWin issued to Solidus </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">149,401
      shares of WinWin&#8217;s Series A-1 Preferred Stock, which represents 19% of the
      outstanding capital stock of WinWin on an as-converted-to-common basis.
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      details regarding the issuance of shares to Solidus, see Item 1.01 above, which
      is incorporated herein by reference. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing securities were issued pursuant to the exemption from registration
      provided by Section 4(2) of the Securities Act of 1933 and Regulation D
      promulgated thereunder. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      9.01 Financial Statements and Exhibits.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 63pt;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>No.</u></font>&#160;</div>
            </td>
            <td align="left"><u><font size="2">Description</font></u></td>
          </tr>

      </table>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 63pt;">&#160;</td>
            <td align="left">&#160;</td>
          </tr>

      </table>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Amended and Restated Joint Venture Agreement, dated as of August
                31, 2006,
                by and between Solidus Networks, Inc. and WinWin Gaming,
                Inc.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
                Rights Agreement, dated as of August 31, 2006, by and between WinWin
                Gaming Inc. and Solidus Networks, Inc.
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investment
                Option Agreement, dated as of August 31, 2006, by and between WinWin
                Gaming Inc. and Solidus Networks, Inc.
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.4</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                of Amended and Restated Voting Agreement, Irrevocable Proxy and Form
                of
                Stockholders Written Consent, dated as of August 31, 2006, by and
                among
                WinWin Gaming Inc., Solidus Networks, Inc., and certain stockholders
                of
                WinWin Gaming, Inc. </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                Release of WinWin Gaming, Inc., dated September 5,
                2006.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;September
      7, 2006&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WINWIN
      GAMING, INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
      </font><u><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Martie
      Vlcek</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></u></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Martie
      Vlcek, Chief Financial Officer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXHIBIT
      INDEX</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 63pt;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>No.</u></font>&#160;</div>
              </td>
              <td align="left" valign="bottom"><u><font size="2">Description</font></u></td>
            </tr>

        </table>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 63pt;">&#160;</td>
              <td align="left">&#160;</td>
            </tr>

        </table>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                  Amended and Restated Joint Venture Agreement, dated as of August
                  31, 2006,
                  by and between Solidus Networks, Inc. and WinWin Gaming,
                  Inc.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
                  Rights Agreement, dated as of August 31, 2006, by and between WinWin
                  Gaming Inc. and Solidus Networks, Inc.
</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investment
                  Option Agreement, dated as of August 31, 2006, by and between WinWin
                  Gaming Inc. and Solidus Networks, Inc.
</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.4</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Amended and Restated Voting Agreement, Irrevocable Proxy and
                  Form of
                  Stockholders Written Consent, dated as of August 31, 2006, by and
                  among
                  WinWin Gaming Inc., Solidus Networks, Inc., and certain stockholders
                  of
                  WinWin Gaming, Inc. </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release of WinWin Gaming, Inc., dated September 5,
                  2006.</font></div>
              </td>
            </tr>

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{"company-data": {"conformed-name": "WINWIN GAMING INC", "cik": "0000897545", "assigned-sic": "7990", "irs-number": "841219819", "state-of-incorporation": "DE", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-21566", "film-number": "061078495"}, "business-address": {"street1": "2980 S RAINBOW BLVD.", "street2": "SUITE 200", "city": "LAS VEGAS", "state": "NV", "zip": "89146", "phone": "7022334138"}, "mail-address": {"street1": "2980 S. RAINBOW BLVD.", "street2": "SUITE 200", "city": "LAS VEGAS", "state": "NV", "zip": "89146"}, "former-company": [{"former-conformed-name": "JUNUM INC", "date-changed": "20010123"}, {"former-conformed-name": "EURBID COM INC", "date-changed": "20010123"}, {"former-conformed-name": "LS CAPITAL CORP", "date-changed": "19961016"}]}
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
Form
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d)
of
      the
      Securities Exchange Act of 1934
Date
      of
      Report (Date of Earliest event Reported): September 7, 2006 (August 31,
      2006)
WINWIN
      GAMING, INC.
(Exact
      name of registrant as specified in its charter)
Delaware
0-21566
84-1219819
(State
                or Other Jurisdiction of Incorporation or Organization)
(Commission
                File Number)
(IRS
                Employer Identification No.)
8687
      West
      Sahara, Suite 201, Las Vegas, Nevada 89117
Address
      of Principal Executive Offices
Zip
      Code
(702)
      212-4530
Registrant's
      Telephone Number, Including Area Code
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (
see
General
      Instruction A.2. below):
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
ITEM
      1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
SECOND
      AMENDED AND RESTATED JOINT VENTURE AGREEMENT
Background
On
      October 5, 2005, WinWin Gaming, Inc. ("WinWin"), reported its entry on September
      30, 2005, into a joint venture agreement (the "Original JV Agreement") with
      Solidus Networks, Inc., d/b/a PayByTouch Solutions ("Solidus"). Pursuant to the
      Original JV Agreement, and a related secured promissory note and security
      agreement, as subsequently amended, Solidus loaned WinWin $2.5 million (the
      "Loan") and WinWin granted Solidus a security interest in all of WinWin's
      assets.
On
      April
      20, 2006, WinWin reported (the "April 20th Report") the parties' amendment and
      restatement of the Original JV Agreement, pursuant to an amended and restated
      joint venture agreement (the "First Restated JV Agreement"). As described in
      further detail in the April 20th Report, upon the occurrence of the first
      closing under the First Restated JV Agreement, the parties would convert the
      outstanding obligations of WinWin to Solidus under the note into shares of
      WinWin's Series A Preferred Stock, to be authorized pursuant to a certain
      Amended and Restated Certificate of Incorporation (the "Original Restated
      Charter"), which was required by the First Restated JV Agreement to become
      effective as a condition to the first closing. In addition, Solidus would
      acquire additional shares of Series A Preferred Stock in exchange for the
      issuance of certain securities of Solidus at the first closing, and pursuant
      to
      a second closing, Solidus could purchase additional shares of Series A Preferred
      Stock, at Solidus' option, for any combination of such securities of Solidus and
      cash as Solidus elected. Furthermore, the Original Restated Charter would have
      given Solidus the right to require that WinWin repurchase or redeem all of
      the
      outstanding shares of WinWin's common stock, for a price to be determined as set
      forth therein, thereby permitting Solidus to become the sole stockholder of
      WinWin, on terms described in further detail in the April 20th Report (such
      right being referred to hereinafter as the "Redemption Right").
On
      August
      31, 2006, WinWin and Solidus amended and restated the First Restated JV
      Agreement (the "Second Restated JV Agreement"), to modify certain features of
      the transactions contemplated under the First Restated JV Agreement. The Second
      Restated JV Agreement (i) eliminates the Redemption Right, (ii) provides for
      the
      designation of a series of preferred stock, the "Series A-1 Preferred Stock,"
having substantially identical rights as the Series A Preferred Stock, pursuant
      to the filing of a certificate of designation with the Delaware Secretary of
      State (the "Certificate of Designation") and (iii) provides for the adoption and
      filing of an Amended and Restated Certificate of Incorporation (the "Restated
      Charter"), at which time all shares of Series A-1 Preferred Stock would be
      converted to Series A Preferred Stock, as soon as practicable following the
      occurrence of the first closing and compliance with applicable regulatory
      requirements. As a result of these amendments, the possibility that the series
      of transactions contemplated by the First Restated JV Agreement could result
      in
      a buy-out of all outstanding shares of WinWin Common Stock was eliminated,
      and
      the parties were able to consummate the first closing, providing for the
      issuance of the Series A-1 Preferred Stock rather than Series A Preferred Stock,
      prior to the effectiveness of the Restated Charter or the delivery to the
      stockholders of an Information Statement with respect thereto. The material
      terms of the Second Restated JV Agreement and the transactions contemplated
      thereby are described in further detail below.
The
      Second Amended and Restated Joint Venture Agreement
Closings
      and Closing Conditions
Pursuant
      to the Second Restated JV Agreement, WinWin agreed to sell to Solidus, and
      Solidus agreed to purchase from WinWin, shares of WinWin's Series A-1 Preferred
      Stock, and, at Solidus' option, WinWin's Series A Preferred Stock. The Series
      A-1 Preferred Stock, which is initially convertible into shares of Common Stock
      at a ratio of one hundred shares of Common Stock for each share of Series A-1
      Preferred Stock, was issued at the first closing contemplated by the Second
      Restated JV Agreement, which occurred on August 31, 2006 (the "First Closing"),
      at a purchase price of $79.10 per share. The Series A-1 Preferred Stock, which
      is initially convertible into shares of Common Stock at a ratio of ten shares
      of
      Common Stock for each share of Series A Preferred Stock, will be issued at
      the
      second closing contemplated by the Second Restated JV Agreement (the "Second
      Closing") at a purchase price of $7.91 per share.
Each
      of
      the two closings described above is subject to several closing conditions,
      which
      are described in more detail below. At the First Closing, Solidus acquired
      from
      WinWin 149,401 shares of Series A-1 Preferred Stock (the "Initial WinWin
      Shares"), which represents 19% of the outstanding capital stock of WinWin on an
      as-converted-to-common basis as of the First Closing. Solidus paid for the
      Initial WinWin Shares by (i) canceling all principal and accrued interest
      on the promissory note evidencing the Loan and (ii) issuing to WinWin
1,829,336
shares
      of
      Solidus' Series C Preferred Stock at a deemed value of $5.00 per
      share.
The
      First
      Closing was subject to the satisfaction or waiver of several closing conditions,
      including the following conditions:
·
the
              execution and delivery of an investment option agreement (described
              below);
·
an
              increase in the authorized number of WinWin's board of directors to seven,
              with at least two vacancies;
·
the
              execution and delivery of a registration rights agreement (described
              below);
·
the
              approval by WinWin's board of directors of (a) the designation of
              6,000,000 of the 10,000,000 shares of preferred stock currently authorized
              by WinWin's Certificate of Incorporation as "Series A-1 Preferred Stock"
              and (b) the filing by WinWin of the Certificate of Designation;
              and
·
other
              customary conditions.
At
      the
      Second Closing, which is to occur, at Solidus' option at any time within one
      year of the First Closing, if at all, Solidus may acquire from WinWin a number
      of shares of Series A-1 Preferred Stock or Series A Preferred Stock, depending
      on whether the Restated Charter, as further described below, shall have become
      effective, sufficient for Solidus to increase its ownership interest in WinWin
      to thirty-five percent (35%) of WinWin's capital stock on a fully diluted,
      as-converted-to-common basis. Solidus may pay the purchase price for these
      second closing shares either in cash, through the issuance of shares of Solidus'
Series C Preferred Stock with a deemed value of $5.00 per share, or a
      combination of both. The Second Closing is also subject to the satisfaction
      or
      waiver of closing conditions, including, the execution and delivery of a sales
      representative agreement (described below), and additional customary conditions.
Covenants
WinWin
      agreed to various covenants in the Second Restated JV Agreement. Among other
      things, these covenants impose obligations on WinWin to make required filings
      under state and federal securities laws, to obtain the requisite stockholder
      vote to amend WinWin's certificate of incorporation, to provide Solidus with
      access to WinWin's senior management, accountants, records and other documents,
      and to provide Solidus with financial and other information regarding WinWin.
Other
      material covenants and obligations of WinWin under the Second Restated JV
      Agreement, include the following:
Restated
      Charter.
WinWin
      will seek the written consent of the stockholders of WinWin to the adoption
      of
      the Restated Charter creating the Series A Preferred Stock with the rights
      described below, and will file such Restated Charter with the Secretary of
      State
      of the State of Delaware. Upon the filing of the Restated Charter, all
      outstanding shares of Series A-1 Preferred Stock will be converted automatically
      into shares of Series A Preferred Stock at a ratio of ten shares of Series
      A
      Preferred Stock for each share of Series A-1 Preferred Stock. The terms of
      the
      Restated Charter and the Series A Preferred Stock to be created thereunder
      are
      described below.
Board
      of Directors
.
      At the
      request of Solidus, WinWin's board must nominate two directors designated by
      Solidus for election to the board of directors of WinWin, and during any period
      when Solidus has the right to elect board members, but has not done so, WinWin
      must maintain at least two vacancies on its board of directors.
Cooperation
.
      Until
      December 31, 2006, WinWin is obligated to provide Solidus with physical and
      logistical support for Solidus' entry into China, including providing access to
      WinWin's distribution channels and lawful contacts with government officials and
      making available without charge a limited amount of office space in Shanghai.
      Under the terms of the cooperation covenants, Solidus is required to provide
      WinWin with reasonable support and assistance in (i) promoting WinWin's
      products, services and technologies and (ii) obtaining financing. In addition,
      both parties must use commercially reasonable efforts to identify and exploit
      opportunities for the benefit of both parties.
Financial
      Covenant.
If at
      any time WinWin or its accountants determine that WinWin has a material weakness
      in its internal controls over financial reporting, WinWin must promptly provide
      notice of this determination to Solidus and, upon the written request of
      Solidus, remediate the material weakness within three months of the
      determination, provided that WinWin has available funds (as defined in the
      Second Restated JV Agreement) to do so or that Solidus agrees to reimburse
      the
      reasonable costs of the remediation above specified levels.
Negative
      Pledge.
WinWin
      has agreed not to sell, transfer, pledge or otherwise encumber WinWin's rights
      in the shares of Solidus' Series C Preferred Stock that it has acquired or may
      acquire under the Second Restated JV Agreement. WinWin is also obligated to
      maintain, preserve and defend its title to the those shares. This covenant
      expires on the date, following an initial public offering of Solidus, on which
      any lockup or market standoff restrictions applicable to Solidus shares
      expire.
Termination
The
      Second Restated JV Agreement will terminate upon the mutual agreement of the
      parties.
Indemnification
The
      representations and warranties set forth in the amended and restated joint
      venture agreement expire one year following the closing at which the
      representations and warranties are made. Each party indemnifies the other party
      for inaccuracies in representations and warranties as of the date of the
      agreement and as of each closing date. Each party has the right to claw back
      the
      securities that it delivered to the other party under the Second Restated JV
      Agreement that are sufficient to satisfy the damages that constitute the basis
      for the indemnification claim. Before Solidus can make an indemnification claim
      to recover damages under the agreement, the extent of the damages must be at
      least $50,000 in the aggregate. Once the $50,000 threshold is achieved, then
      Solidus would be able to seek indemnification for the entire amount of damages
      going back to the first dollar of damages. Each party's maximum indemnification
      liability under the agreement is limited by the deemed value of the securities
      exchanged by that party under the agreement.
The
      Amended and Restated Voting Agreements
On
      August
      31, 2006, stockholders of WinWin holding approximately 43% of the issued and
      outstanding common stock of WinWin entered into amended and restated voting
      agreements (the "Restated Voting Agreements"), pursuant to which, each such
      stockholder agreed not to transfer, pledge, otherwise encumber or dispose of
      their stock. They also agreed to vote their shares in favor of the Restated
      Charter. The Restated Voting Agreements will terminate on the earlier to occur
      of (i) the date that the Second Restated JV Agreement terminates in accordance
      with its terms, and (ii) the date of the Second Closing under the Second
      Restated JV Agreement.
The
      Ancillary Agreements
As
      noted
      above, at or prior to the First Closing, WinWin (a) filed the Certificate of
      Designation, (b) entered into a registration rights agreement with Solidus
      (the
"Registration Rights Agreement") and (c) granted to Solidus an investment option
      (the "Investment Option"). Following the First Closing, WinWin will seek
      stockholder approval of and file the Restated Charter and will commence
      negotiation of a sales representation agreement with Solidus (the "Sales
      Representative Agreement"). Each of these agreements and instruments are
      described below.
The
      Amended and Restated Certificate of Incorporation
As
      a
      condition to the First Closing under the Second Restated JV Agreement, WinWin
      filed the Certificate of Designation with the Secretary of State of the State
      of
      Delaware on August 31, 2006 to create WinWin's Series A-1 Preferred
      Stock.
Terms
      of the WinWin Series A-1 Preferred Stock.
The
      Certificate of Designation established a new series of WinWin preferred stock
      consisting of 6,000,000 shares designated as "Series A-1 Preferred Stock". The
      Series A-1 Preferred Stock has the following attributes:
·
The
              Series A-1 Preferred Stock ranks senior to any other class or series
              of
              WinWin stock with respect to dividend and liquidation
              rights.
·
The
              Series A-1 Preferred Stock is entitled to non-cumulative dividends,
              payable at a rate per annum equal to 8% of the $79.10 per share original
              issue price, when and if declared by the board of directors of
              WinWin.
·
Holders
              of Series A-1 Preferred Stock are entitled to distributions upon
              liquidation in the amount of the $79.10 per share original issue price
              plus an additional amount equal to 8% of the original issue price per
              year
              and any declared but unpaid dividends.
·
The
              Series A-1 Preferred Stock votes together with all other classes of
              capital stock of the company on an as-converted-to-common basis. The
              holders of the Series A-1 Preferred Stock voting as a separate class
              are
              also entitled to elect two directors of
              WinWin.
·
As
              long as at least 85% of the shares of Series A-1 Preferred Stock first
              issued remain outstanding, holders of a majority of the shares of Series
              A-1 Preferred Stock outstanding have the right to
              veto:
o
Any
              alteration or change of the rights, preferences or privileges of the
              Series A-1 Preferred Stock;
o
The
              creation of any new series of stock that is senior or on parity with
              the
              Series A-1 Preferred Stock with respect to redemption, voting, dividends
              or distribution of assets upon a
              liquidation;
o
The
              creation of any new class of stock unless the shares of that new class
              of
              stock are subject to the purchase option and redemption rights of the
              certificate of incorporation;
o
The
              repurchase or redemption of any shares of common stock, except in
              specified instances;
o
Any
              business combination or sale of a controlling interest by WinWin of
              any of
              its subsidiaries or the sale of all or substantially all of WinWin's
              assets;
o
A
              voluntary dissolution or liquidation;
o
Any
              amendment or waiver of any provision of WinWin's certificate of
              incorporation or bylaws relative to the Series A-1 Preferred Stock
              or
              relating to an increase in the authorized number of shares of common
              stock;
o
The
              payment or declaration of any dividend or the making of any other
              distribution on any shares of common or preferred stock;
              or
o
The
              authorization or issuance of any additional shares of Series A-1 Preferred
              Stock or equity securities convertible, directly or indirectly, into
              additional shares of Series A-1 Preferred
              Stock.
·
The
              Series A-1 Preferred Stock is convertible, at any time, into WinWin
              common
              stock at a ratio of 100 shares of WinWin common stock for each share,
              subject to adjustment. The conversion ratio is subject to adjustment
              for
              dilutive issuances (i.e., issuances of common stock or common stock
              equivalents below $0.79 per share) on a weighted average basis, subject
              to
              specified exceptions. In addition, if certain specified warrants are
              exercised, then upon conversion of the Series A-1 Preferred Stock
              additional shares of common stock would be issuable in an amount that
              is
              equal to 66% of each share issued upon exercise of those
              warrants.
·
WinWin
              is required to reserve at all times sufficient common stock for the
              purpose of effecting the conversion of the Series A-1 Preferred Stock;
              provided, however, that no Series
A-1
Preferred Stock may be converted into WinWin common stock unless and
              until
              WinWin has available sufficient authorized but unissued shares of WinWin
              common stock for the purpose of effecting such a
              conversion.
Registration
      Rights Agreement
Under
      the
      terms of the Registration Rights Agreement, upon the request of Solidus, WinWin
      would become obligated to register under the Securities Act in up to two
      separate registrations, the common stock underlying the shares of Series A-1
      Preferred Stock or Series A Preferred Stock issued to Solidus and any other
      shares of common stock issued to Solidus under the Second Restated JV Agreement.
      The Registration Rights Agreement also gives Solidus customary piggyback
      registration rights and the right to require WinWin to effect up to an
      additional two registrations if WinWin is eligible to use Form S-3. In addition,
      Solidus has a right of first offer to acquire any new securities that WinWin
      issues other than with respect to certain specified issuances.
Investment
      Option Agreement
WinWin
      granted to Solidus an option, prior to the effective date of the Restated
      Charter, to purchase a number of shares of Series A-1 Preferred Stock, and
      from
      and after the effective date of the Restated Charter, to purchase a number
      of
      shares of Series A Preferred Stock that, together with other securities held
      by
      Solidus at the time of exercise, will be sufficient to give Solidus ownership
      of
      up to eighty percent (80%) of the outstanding common stock of WinWin on an
      as-converted-to-common basis following such exercise. The purchase price under
      the investment option agreement is payable by Solidus either in cash,
      free-trading stock of Solidus, or a combination of both. The fair market value
      purchase price will be determined either by agreement of the parties or, failing
      such agreement, by an appraisal procedure conducted at the time of Solidus'
exercise of the option. Th
e
      option
      is exercisable at any time from the date of the investment option agreement
      until the third anniversary of the First Closing; provided, however, that the
      option would automatically terminate upon the closing of the sale of all or
      substantially all of the assets of Solidus, or upon the closing of a merger,
      consolidation or similar transaction in which the stockholders of Solidus as
      of
      immediately prior to the transaction do not hold a majority of the voting power
      of the surviving company as of immediately following such transaction. The
      option is not assignable or transferable unless WinWin consents to any
      assignment or transfer.
The
      Restated Charter
As
      soon
      as practicable following the First Closing, WinWin must amend and restate its
      certificate of incorporation to, among other things, (i) increase the number
      of
      authorized shares of WinWin's capital stock to 750,000,000 shares of authorized
      common stock and 60,000,000 shares of authorized preferred stock and (ii) create
      a class of preferred stock to be designated as WinWin's Series A Preferred Stock
      (such amended and restated certificate of incorporation being referred to herein
      as the "Restated Charter").
Terms
      of the WinWin Series A-1 Preferred Stock and Series A Preferred
      Stock.
The
      Restated Charter, when filed, will establish a new series of WinWin preferred
      stock consisting of 60,000,000 shares that will be designated as "Series A
      Preferred Stock." Upon the filing of the Restated Charter, the Series A-1
      Preferred Stock will be automatically converted into Series A Preferred Stock
      at
      a ratio of ten shares of Series A Preferred Stock per share of Series A-1
      Preferred Stock. The Series A Preferred Stock will have the following
      attributes:
·
The
              Series A Preferred Stock is entitled to non-cumulative dividends, payable
              at a rate per annum equal to 8% of the $7.91 per share original issue
              price, when and if declared by the board of directors of
              WinWin.
·
Holders
              of Series A Preferred Stock will be entitled to distributions upon
              liquidation in the amount of the $7.91 per share original issue price
              plus
              an additional amount equal to 8% of the original issue price per year
              and
              any declared, but unpaid dividends.
·
The
              Series A Preferred Stock is convertible, at any time, into WinWin common
              stock at a ratio of 10 shares of WinWin common stock for each share,
              subject to adjustment.
·
All
              other rights, preferences and privileges of the Series A Preferred
              Stock
              are similar to those of the Series A-1 Preferred Stock, as described
              above.
Sales
      Representative Agreement
Following
      the First Closing, WinWin and Solidus will negotiate a sales representative
      agreement on terms and conditions substantially similar to those described
      in
      the term sheet attached as
Exhibit
      C
to the
      Second Restated JV Agreement. Those terms include the following:
·
Solidus
              will appoint WinWin as a non-exclusive marketing partner in China;
·
WinWin,
              at its own expense, will use its best efforts to market Solidus' products;
              and
·
WinWin
              would be entitled to a mutually agreeable fee based upon the revenues
              received from Solidus customers that WinWin signs
              up.
The
      foregoing description of the terms of the Second Restated JV Agreement, the
      Registration Rights Agreement, the Investment Option Agreement and the Restated
      Voting Agreements, is qualified by reference to the provisions of those
      agreements, attached to this report as Exhibits 10.1 through 10.4.
A
      copy of
      the Company's press release regarding the Second Restated JV Agreement is also
      attached hereto and is incorporated herein by reference.
ITEM
      3.02
SALE
      OF UNREGISTERED SECURITIES.
On
      August
      31, 2006, WinWin entered into a Second Amended and Restated Joint Venture
      Agreement (the "Second Restated JV Agreement") with
Solidus
      Networks, Inc., d/b/a PayByTouch Solutions ("Solidus")
,
      pursuant to which WinWin issued to Solidus
149,401
      shares of WinWin's Series A-1 Preferred Stock, which represents 19% of the
      outstanding capital stock of WinWin on an as-converted-to-common basis.
For
      details regarding the issuance of shares to Solidus, see Item 1.01 above, which
      is incorporated herein by reference.
The
      foregoing securities were issued pursuant to the exemption from registration
      provided by Section 4(2) of the Securities Act of 1933 and Regulation D
      promulgated thereunder.
Item
      9.01 Financial Statements and Exhibits.
(d)
Exhibits
Exhibit
No.
Description
10.1
Second
                Amended and Restated Joint Venture Agreement, dated as of August
                31, 2006,
                by and between Solidus Networks, Inc. and WinWin Gaming,
                Inc.
10.2
Registration
                Rights Agreement, dated as of August 31, 2006, by and between WinWin
                Gaming Inc. and Solidus Networks, Inc.
10.3
Investment
                Option Agreement, dated as of August 31, 2006, by and between WinWin
                Gaming Inc. and Solidus Networks, Inc.
10.4
Form
                of Amended and Restated Voting Agreement, Irrevocable Proxy and Form
                of
                Stockholders Written Consent, dated as of August 31, 2006, by and
                among
                WinWin Gaming Inc., Solidus Networks, Inc., and certain stockholders
                of
                WinWin Gaming, Inc.
99
Press
                Release of WinWin Gaming, Inc., dated September 5,
                2006.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
Date: September
      7, 2006
WINWIN
      GAMING, INC.
By:
/s/
Martie
      Vlcek
Martie
      Vlcek, Chief Financial Officer
EXHIBIT
      INDEX
Exhibit
No.
Description
10.1
Second
                  Amended and Restated Joint Venture Agreement, dated as of August
                  31, 2006,
                  by and between Solidus Networks, Inc. and WinWin Gaming,
                  Inc.
10.2
Registration
                  Rights Agreement, dated as of August 31, 2006, by and between WinWin
                  Gaming Inc. and Solidus Networks, Inc.
10.3
Investment
                  Option Agreement, dated as of August 31, 2006, by and between WinWin
                  Gaming Inc. and Solidus Networks, Inc.
10.4
Form
                  of Amended and Restated Voting Agreement, Irrevocable Proxy and
                  Form of
                  Stockholders Written Consent, dated as of August 31, 2006, by and
                  among
                  WinWin Gaming Inc., Solidus Networks, Inc., and certain stockholders
                  of
                  WinWin Gaming, Inc.
99
Press
                  Release of WinWin Gaming, Inc., dated September 5,
                  2006.