Document:

Stock Purchase Agreement

EXHIBIT 10(r) 
 
STOCK PURCHASE AGREEMENT 
 
THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of March 28, 2003 by and among REFAC, a
Delaware corporation (the “Company”), and Palisade Concentrated Equity Partnership, L.P., a Delaware limited partnership (the “Purchaser”). 
 
WHEREAS, on February 28, 2003, the Company and the Purchaser consummated a transaction whereby a wholly-owned subsidiary of the Purchaser
was merged with and into the Company, pursuant to an Agreement and Plan of Merger, dated as of August 19, 2002, by and among the Company, the Purchaser and such subsidiary (the “Merger Agreement”); 
 
WHEREAS, following the closing of such merger, the Purchaser
owns approximately 80% of the Company’s outstanding shares of common stock, par value $0.001 per share (the “Common Stock”); 
 
WHEREAS, Purchaser has determined that it desires to purchase 3,469,387 additional shares of Common Stock from the Company (the
“Shares”), at an aggregate price of $17 million in immediately available funds (the “Purchase Price”); and 
 
WHEREAS, the Board of Directors has (i) formed a special committee to review the proposed transaction and (ii) received the written
opinion of Morgan Joseph & Co., Inc. to the effect that the Purchase Price is fair from a financial point of view to the Company and its stockholders; 
 
NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the Purchaser hereby agree as follows: 
 
Section 1. Purchase and Sale of Stock. (a) Upon the terms and subject to the conditions of this Agreement, on the Closing Date (as
defined in Section 2.1), the Purchaser shall purchase from the Company, and the Company shall issue and sell to the Purchaser, 3,469,387 Shares for an aggregate price equal to the Purchase Price. 
 
(b) In connection with the payment of the Purchase Price, the
Company shall provide the Purchaser with written wire transfer instructions prior to the Closing. 

 
Section 2. The Closing.

 
2.1. The Closing. (a) The purchase and
sale of the Shares pursuant to this Agreement will take place at a closing (the “Closing”) to be held at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, New York 10036, at 10:00 a.m. New York time,
on such date as shall be agreed upon by the Company and the Purchaser (the “Closing Date”), which date shall be no later than five (5) business days following the satisfaction or waiver of all the conditions set forth in Section 2.2,
unless otherwise agreed to by the Parties, and no earlier than the twentieth calendar day following the mailing of the information statement required by Section 6.1(a). At the Closing: 
 
(i) the Purchaser shall deliver to the Company immediately available funds in the full amount
of the Purchase Price, in accordance with the wire transfer instructions delivered by the Company pursuant to Section 1(b); and 
 
(ii) the Company shall deliver to the Purchaser one or more certificates representing 3,469,387 Shares, bearing a legend
in accordance with Section 5. 
 
2.2. Conditions to
Closing. 
 
(a) The Company’s obligation to
complete the sale of the Shares is subject to: 
 
(i) the accuracy in all material respects of the representations and warranties made by the Purchaser in Section 4 as of the date hereof and as of the Closing Date and the fulfillment in all material respects of those undertakings of
the Purchaser in this Agreement to be fulfilled on or prior to the Closing Date; and 
 
(ii) the approval for listing the Shares, upon notice of issuance, by the American Stock Exchange. 
 
(b) The Purchaser’s obligation to complete the purchase
of the Shares is subject to the accuracy in all material respects of the representations and warranties made by the Company in Section 3 as of the date hereof and as of the Closing Date and the fulfillment in all material respects of those
undertakings of the Company in this Agreement to be fulfilled on or prior to the Closing Date. 
 
Section 3. Representations and Warranties of the Company. The Company hereby represents and warrants to the Purchaser as follows: 
 
3.1. Organization, Authorization, Etc. The Company is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware. The Company has the requisite corporate power and authority to enter into and perform its obligations under this Agreement and to issue the Shares in accordance 
 

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with the terms hereof. The
execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by the Company’s Board of Directors and no further consent or authorization thereof is
required. Upon the satisfaction of the obligation set forth in Section 6.1(a), this Agreement shall be duly authorized by the Company’s stockholders and no further consent or authorization thereof shall be required. This Agreement constitutes
the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies. 
 
3.2. Issuance of Shares. The Shares to be issued to the Purchaser are duly authorized and, upon issuance in accordance with the
terms of this Agreement, shall be validly issued, fully paid and non-assessable, and shall not be subject to preemptive rights or other similar rights of any other person or entity. 
 
Section 4. Representations and Warranties of The Purchaser. 
 
The Purchaser hereby represents and warrants to the Company as
of the Closing Date as follows: 
 
4.1.
Organization, Authorization, Etc. The Purchaser is a limited partnership duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. 
 
The Purchaser has the requisite power and authority to enter into this Agreement and to consummate the
transactions contemplated hereby. The general partners of the Purchaser have taken all necessary action to authorize the execution, delivery and performance of this Agreement. This Agreement constitutes the valid and binding obligation of the
Purchaser, enforceable against the Purchaser in accordance with its terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws
relating to, or affecting generally, the enforcement of creditors’ rights and remedies. 
 
4.2. Sufficient Funds. The Purchaser will at the Closing have sufficient immediately available funds in cash to pay the Purchase Price. 
 
4.3. Investment Experience. The Purchaser is an
accredited investor within the meaning of Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”), is knowledgeable, sophisticated and experienced in making, and is qualified to make,
decisions with respect to investments in shares representing an investment decision like that involved in the purchase of the Shares. 
 
4.4. Investment Intent and Limitation On Dispositions. The Purchaser is acquiring Shares for its own account for investment only
and has no intention of selling or distributing any of such Shares or any arrangement or understanding with any other 
 

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person or entity regarding the
sale or distribution of such Shares except pursuant to a registration, or an exemption from registration, under the Securities Act. 
 
4.5. Information And Risk. 
 
(a) The Purchaser has requested, received, reviewed and considered all information the Purchaser deems relevant in making an informed
decision to purchase the Shares. The Purchaser has had an opportunity to discuss the Company’s business, management and financial affairs with its management and also had an opportunity to ask questions of officers of the Company that were
answered to the Purchaser’s satisfaction, provided that such inquiries do not impair the rights of the Purchaser to rely on the representations and warranties of the Company as set forth in Section 3. 
 
(b) The Purchaser recognizes that an investment in the Shares
involves a high degree of risk, including a risk of total loss of the Purchaser’s investment. The Purchaser is able to bear the economic risk of holding the Shares for an indefinite period, and has knowledge and experience in the financial and
business matters such that it is capable of evaluating the risks of the investment in the Shares. 
 
(c) The Purchaser has, in connection with the Purchaser’s decision to purchase Shares, not relied upon any representations or other
information (whether oral or written) with respect to the Company other than as set forth in Section 3 hereof, and the Purchaser has, with respect to all matters relating to this Agreement and the sale of the Shares, relied solely upon the advice of
the Purchaser’s own counsel and has not relied upon or consulted counsel to the Company. 
 
4.6. Disclosures to the Company. The Purchaser understands that the Company is relying on the statements contained herein to establish an exemption from registration under federal and state
securities laws. 
 
4.7. Brokers or Finders.
No broker, investment banker, financial advisor or other person or entity is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission from the Company in connection with the transactions contemplated
hereby based upon arrangements made by or on behalf of the Purchaser. 
 
Section 5. Legends. The Purchaser understands and agrees that each certificate or other document evidencing any of the Shares shall be endorsed with the legend in the form set forth below, and the Purchaser covenants
that the Purchaser will not transfer the shares represented by any such certificate without complying with the restrictions on transfer described in the legend endorsed on such certificate and understands that the Company will refuse to register a
transfer of any Shares unless the conditions specified in the following legend are satisfied: 
 
“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. SUCH SHARES MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED, OR OTHERWISE TRANSFERRED IN THE 
 

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ABSENCE OF A
REGISTRATION STATEMENT IN EFFECT WITH RESPECT THERETO UNDER SUCH ACT UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT OR UNLESS SUCH SALE, PLEDGE, HYPOTHECATION OR TRANSFER IS OTHERWISE EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT AND ANY
APPLICABLE STATE SECURITIES LAWS. THE COMPANY MAY REQUEST A WRITTEN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED IN CONNECTION WITH SUCH SALE OR OTHER TRANSFER.” 
 
Section 6. Covenants. 
 
6.1. Covenants of the Company. 
 
(a) As soon as practicable following the date hereof, the
Company shall mail to its stockholders an information statement in connection with this Agreement and the transactions contemplated hereby, in accordance with Regulation 14C under the Securities Exchange Act of 1934, as amended. 
 
(b) The Company shall use commercially reasonable efforts to
as soon as practicable cause the Shares to be listed on the American Stock Exchange, upon notice of issuance. 
 
6.2. Covenants of Purchaser. 
 
(a) Simultaneously herewith, the Purchaser is executing and delivering to the Company an action by written consent in the form attached
hereto as Exhibit A. Such consent shall be effective no earlier than the twentieth calendar day following the mailing of the information statement pursuant to Section 6.1(a). 
 
(b) The Purchaser shall not directly or indirectly cause a merger between the Company and the Purchaser (or
any subsidiary or affiliate thereof) pursuant to Section 253 or any other provision of the Delaware General Corporation Law until the one hundred and twentieth day following the date on which instructions in connection with the Payment Right (as
defined in the Merger Agreement) were first mailed by the Company to holders of Common Stock pursuant to Sections 2.01(d) and (f) of the Merger Agreement. 
 
Section 7. Notices. 
 
(a) All notices, requests, consents and other communications hereunder shall be in writing, shall be mailed by first-class registered or
certified airmail, confirmed facsimile or nationally recognized overnight express courier postage prepaid, and shall be as addressed as follows: 
 

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If to the
Purchaser, to: 
 
Palisade Capital

One Bridge Plaza 
Fort Lee, NJ 07024 
Telephone: (201) 585-7733 
Facsimile: (201) 585-9798

Attention: Steven E. Berman 
 
If to the Company, to: 
 
Refac 
115 River Road 
Edgewater, NJ 07020 
Telephone: (201) 943-4400 
Facsimile: (201) 943-7400 
Attention: Robert L. Tuchman, President and CEO 
 
with a copy to: 
 
Skadden, Arps, Slate, Meagher & Flom LLP 
Four Times
Square 
New York, NY 10036 
Telephone: (212) 735-2760 
Facsimile: (917) 777-2760 Attention: 
Stephen M. Banker, Esq.

 
(b) Such notices or other communications shall
be deemed delivered upon receipt, in the case of overnight delivery, personal delivery, facsimile transmission (as evidenced by the confirmation thereof), or mail. 
 
Section 8. Miscellaneous. 
 
8.1. Amendments. Any term of this Agreement may be amended only with the written consent of the Company and the Purchaser.

 
8.2. Headings. The headings of the
various sections of this Agreement are for convenience of reference only and shall not be deemed to be part of this Agreement. 
 
8.3. Severability. In the event that any provision in this Agreement is held to be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 
 
8.4. Governing Law And Forum. This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware, without giving effect 
 

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to any choice of law
provisions thereof, and the federal law of the United States of America. The parties hereto agree to submit to the exclusive jurisdiction of the federal and state courts of the State of Delaware with respect to the interpretation of this Agreement
or for the purposes of any action arising out of or related to this Agreement. 
 
8.5. Counterparts. This Agreement may be executed in two counterparts, each of which shall constitute an original, and both of which together shall constitute one and the same instrument. In the
event that any signature is delivered via facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such
facsimile signature page were an original hereof. 
 
8.6. Entire Agreement. This Agreement contains the entire understanding of the parties with respect to the matters covered herein and supersedes all prior agreements and understandings with respect to such matters. Except as
specifically set forth herein or therein, neither the Company nor the Purchaser makes any representation, warranty, covenant or undertaking with respect to such matters. 
 
8.7. Expenses. Each party hereto shall pay all costs and expenses incurred by it in connection with
the execution, delivery and performance of this Agreement, including, but not limited to, fees of legal counsel. 
 

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IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their duly authorized representatives as of the day and year first above written. 
 

	 REFAC

	
	 
	 By:
	 	 /S/    ROBERT L.
TUCHMAN         

	 	 	 
	 	 	 Name:
	 	 Robert L. Tuchman

	 	 	 Title:
	 	 Chief Executive Officer

	
	 PALISADE CONCENTRATED EQUITY PARTNERSHIP, L.P.

	
	 
	 By:
	 	 /S/    STEVEN E.
BERMAN        

	 	 	 
	 	 	 Name:
	 	 Steven E. Berman

	 	 	 Title:
	 	 Member

 

8Employment Agreement dated January 1, 2003

 
EXHIBIT 10.20

 
HEARST-ARGYLE TELEVISION, INC.

888 Seventh Avenue 
New York, NY 10106 
 
As of January 1, 2003 
 
Mr. Philip Stolz

[ADDRESS ON FILE] 
 
Dear Phil: 
 
This letter constitutes all of the terms of the Employment Agreement between you and Hearst-Argyle Television, Inc.
(“Hearst-Argyle”). It is subject to the approval of the Board of Directors of Hearst-Argyle. The terms are as follows: 
 

	 1. Legal Name of Employee:
	  	 Philip M. Stolz

	
	 2. Mailing Address of Employee:
	  	 [ON FILE] 

	
	 3. Title of Position; Duties:
	  	 Senior Vice President

 
You
agree to carry out the duties assigned to you by the senior executives of Hearst-Argyle. Hearst-Argyle has the right to assign you to other duties consistent with those of other executives of your level. 
 
4. Length of Employment. The term of this Agreement
will start on January 1, 2003 and continue through December 31, 2004 (the “Term”). 
 
5. Salary. You will receive a base salary for all services to Hearst-Argyle as follows: 
 

	 	a)	 	$465,000 per year from January 1, 2003 through December 31, 2003; and 

 

	 	b)	 	$485,000 per year from January 1, 2004 through December 31, 2004. 

 
The salary will be paid according to Hearst-Argyle’s payroll practices, but not less frequently than
twice a month. You acknowledge that you are not entitled to overtime pay. 
 
In addition it is understood that you are eligible to receive a bonus up to a maximum of 75% of your base salary. The criteria for the bonus will be set by the Compensation Committee of the Board of Directors of
Hearst-Argyle, at its sole discretion. 
 
The bonus
is payable only for as long as you work for Hearst-Argyle, and will be payable only at the end of a complete bonus cycle and is not proratable, except in the event of your death, when it will be proratable. 
 
In determining the amount of your bonus, the books and records
of Hearst-Argyle are absolute and final and not open to dispute by you. Hearst-Argyle will pay any bonus due you by March 31 of the year following the year for which the bonus is applicable. 
 
6. Exclusive Services. You agree that you will work
only for Hearst-Argyle, and will not render services or give business advice, paid or otherwise, to anyone else, without getting Hearst-Argyle’s written approval. However, you may participate as a member of the board of directors of other
organizations and in charitable and community organizations, but only if such activities do not conflict or interfere with your work for Hearst-Argyle, and if such work is approved in advance by Hearst-Argyle, which approval will not be unreasonably
withheld. You acknowledge that your services will be unique, special and original and will be financially and competitively valuable to Hearst-Argyle, and that your violation of this paragraph will cause Hearst-Argyle irreparable harm for which
money damages alone would not adequately compensate Hearst-Argyle. Accordingly, you acknowledge that if you violate this paragraph, Hearst-Argyle has the right to apply for and obtain injunctive relief to stop such violation (without the posting of
any bond, and you hereby waive any bond-posting requirements in connection with injunctive relief), in addition to any other appropriate rights and remedies it might lawfully have. 

 
7. No
Conflicts. You agree that there is no reason why you cannot make this Agreement with Hearst-Argyle, including, but not limited to, having a contract, written or otherwise, with another employer. 
 
8. Termination of Employment. Hearst-Argyle has the
right to end this Agreement: 
 

	 	a)	 	Upon your death; or 

 

	 	b)	 	For any of the following: (i) indictment for a felony, (ii) failure to carry out, or neglect or misconduct in the performance of, your duties hereunder or a breach
of this Agreement; (iii) willful failure to comply with applicable laws with respect to the conduct of Hearst-Argyle’s business, (iv) theft, fraud or embezzlement resulting in gain or personal enrichment, directly or indirectly, to you at
Hearst-Argyle’s expense, (v) addiction to an illegal drug, (vi) conduct or involvement in a situation that brings, or may bring, you into public disrespect, tends to offend the community or any group thereof, or embarrasses or reflects
unfavorably on Hearst-Argyle’s reputation (or the reputation of the station at which you are employed), or (vii) willful failure to comply with the reasonable directions of senior management. 

 
9. Payment for Plugs. You acknowledge that you are
familiar with Sections 317 and 508 of the Communications Act of 1934 and are aware that it is illegal without full disclosure to promote products or services in which you have a financial interest. You agree not to participate in any such promotion
under any circumstances and understand that to do so is a violation of law as well as a cause for termination. Also, you agree that you will not become involved in any financial situation which might compromise or cause a conflict with your
obligations under this paragraph or this Agreement without first talking with Hearst-Argyle about your intentions and obtaining Hearst-Argyle’s written consent. 
 
10. Confidentiality. You agree that while employed by Hearst-Argyle and after this Agreement is
terminated or expires, you will not use or divulge or in any way distribute to any person or entity, including a future employer, any confidential information of any nature relating to Hearst-Argyle’s business. You will surrender to
Hearst-Argyle at the end of your employment all its property in your possession. If you breach this paragraph, Hearst-Argyle has the right to apply for and obtain injunctive relief to stop such a violation, in addition to its other legal remedies,
as outlined in Paragraph 6. 
 
You agree to keep
the terms of this Agreement confidential from everybody except your professional advisors and family. 
 
11. Non-Solicitation; Non-Hire. You agree that for two (2) years after the expiration or termination of this Agreement, you will
not hire, solicit, aid or suggest to any (i) employee of Hearst-Argyle, its subsidiaries or affiliates, (ii) independent contractor or other service provider or (iii) any customer, agency or advertiser of Hearst-Argyle, its subsidiaries or
affiliates to terminate such relationship or to stop doing business with Hearst-Argyle, its subsidiaries or affiliates. 
 
If you violate this provision, Hearst-Argyle will have the same right to injunctive relief as outlined in Paragraph 6, as well as any
other remedies it may have. If any court of competent jurisdiction finds any part of this paragraph unenforceable as to its duration, scope, geographic area or otherwise, it shall be deemed amended so as to permit it to be enforced. 
 
12. Officer; Director. Upon request, you agree that you
will serve as an officer or director, in addition to your present position, of Hearst-Argyle or any affiliated entity, without additional pay. 
 
13. Continuation of Agreement. This Agreement and your employment shall terminate upon the expiration of the Term (unless
terminated earlier pursuant to Paragraph 8 hereof), provided that if Hearst-Argyle gives you written notice of extension then this Agreement shall continue on a month-to-month basis until the earlier of (i) the commencement of a renewal or extension
agreement between you and Hearst-Argyle, or (ii) termination of this Agreement by either party on fifteen days written notice to the other. 

 
14.
Assignment of Agreement. Hearst-Argyle has the right to transfer this Agreement to a successor, to a purchaser of substantially all of its assets or its business or to any parent, subsidiary, or affiliated corporation or entity and you will
be obligated to carry out the terms of this Agreement for that new owner or transferee. You have no right to assign this Agreement, and any attempt to do so is null and void. 
 
15. State Law. This Agreement will be interpreted under the laws of the State of New York, without
regard to conflicts or choice of law rules. 
 
16.
No Other Agreements. This Agreement is the only agreement between you and Hearst-Argyle. It supersedes any other agreements, amendments or understandings you and Hearst-Argyle may have had. This Agreement may be amended only in a written
document signed by both parties. 
 
17.
Approvals. In any situation requiring the approval of Hearst-Argyle, such approval must be given by either the President and Chief Executive Officer or the Chief Operating Officer of Hearst-Argyle Television, Inc. 
 
18. Dispute Resolution. Hearst-Argyle and Employee
agree that any claim (other than claims arising out of Paragraphs 6 or 12 of this Agreement) which either party may have against the other under local, state or federal law including, but not limited to, matters of discrimination, matters arising
out of the termination or alleged breach of this Agreement or the terms, conditions or termination of employment, will be submitted to mediation and, if mediation is unsuccessful, to final and binding arbitration in accordance with
Hearst-Argyle’s Dispute Settlement Procedure (“Procedure”), of which Employee has received a copy. During the pendency of any claim under this Procedure, 
Hearst-Argyle and Employee agree to make no statement orally or in writing
regarding the existence of the claim or the facts forming the basis of such claim, or any statement orally or in writing which could impair or disparage the personal or business reputation of Hearst-Argyle or Employee. The Procedure is hereby
incorporated by reference into this Agreement. 
 
19. Correspondence. All correspondence between you and Hearst-Argyle will be written and sent by certified mail, return receipt requested, or by personal delivery or courier, to the following addresses: 
 

	                 If to
Hearst-Argyle:
 

	 	  
 Hearst-Argyle Television, Inc.

88 Seventh Avenue
 27th Floor
 New York, New York 10106
 Attn: David J. Barrett
          President and CEO

	                 with a copy
to:
 

	 	  
 Hearst-Argyle Television, Inc.

888 Seventh Avenue
 27th Floor
 New York,
New York 10106
 Attn:    Jonathan C. Mintzer
 Vice President, General Counsel & Secretary

	                 If to
Employee:
 

	 	  
 Mr. Philip Stolz
 [ADDRESS ON FILE]

 
 
Either party may change its address in writing sent to the above addresses. 
 

20.  Severability.    If a court decides that any
part of this Agreement is unenforceable, the rest of the Agreement will survive. 
 
21.  Originals of Agreement.    This Agreement may be signed in any number of counterparts, each of which shall be considered an original. 
 
HEARST-ARGYLE TELEVISION, INC. 
 
By:      /S/    JONATHAN C. MINTZER 

Title:  Vice President, Secretary and General Counsel 

 
By:      /S/    PHILIP M. STOLZ 

                       Philip M. Stolz

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