Document:

Exhibit 10.5

 

STOCK
PURCHASE AGREEMENT

 

 

                This STOCK
PURCHASE AGREEMENT (this “Agreement”), dated as of December 15, 2004, by
and among Ronald S. Boreta (“RBoreta”), Vaso Boreta (“VBoreta”),
John Boreta (“JBoreta”), Boreta Enterprises Ltd. (“BEL”), ASI Group
LLC (“ASI” and collectively with 
RBoreta, VBoreta, JBoreta and BEL, the “Selling Stockholders”)
and RFX Acquisition LLC,  a Delaware
limited liability company (the “Purchaser”).

 

WHEREAS, Purchaser proposes to acquire from the
Selling Stockholders, and the Selling Stockholders propose to sell to
Purchaser, an aggregate of 2,240,397 shares (the “Shares”) of common
stock, no par value per share (the “Common Stock”) of Sports Entertainment
Enterprises, Inc. (the “Company”);

 

                WHEREAS, pursuant
to that certain purchase agreement dated as of the date hereof (the “Simultaneous
Purchase Agreement”), Purchaser, simultaneously herewith, is acquiring from
the Company 34,320,124 shares of Common Stock, at a price of $0.10 per share
(the “Simultaneous Purchase”);

 

                WHEREAS, as the
result of the efforts of Purchaser, on the date hereof the Company, along with
the Purchaser, have become parties to a Contribution and Exchange Agreement
(the “Concurrent Contribution Agreement”) with the Promenade Trust, a
grantor’s trust organization under the laws of Tennessee (the “Trust”),
pursuant to which, among other things, such grantor’s trust will contribute to
the Company an interest in certain assets, properties and rights of such
grantor’s trust; and

 

                WHEREAS, the
purchase of the Shares by Purchaser is a condition to the consummation of the
Simultaneous Purchase, and the purchase of the Shares by Purchaser and the
Simultaneous Purchase are conditions to the consummation of the transactions
contemplated by the Concurrent Contribution Agreement;

 

                NOW, THEREFORE, in
consideration of the premises and the covenants set forth herein, the parties
hereto agree as follows:

 

ARTICLE I

 

Purchase
of Stock

 

Section
1.01           Purchase of Shares. 
Upon the terms and subject to the conditions set forth herein, Purchaser
shall purchase from the Selling Stockholders, and the Selling Stockholders
shall sell to Purchaser, an aggregate of 2,240,397 Shares at a price of $0.10
per Share.  The aggregate consideration
for such Shares is hereinafter referred to as the “Purchase Price”. The number
of Shares sold by each Selling Stockholder, and the amount of proceeds to be
received in respect thereof shall be as set forth on Schedule 1.01 attached
hereto.

 

1

 

Section
1.02           Closing.

(a)   The consummation of the transactions
contemplated by this Agreement (the “Closing”) shall take place at the
offices of Greenberg Traurig, LLP, 200 Park Avenue, New York, New York 10166,
at 11:00 a.m. local time, on the business day specified by Purchaser which is
within thirty (30) days of the date upon which all of the conditions precedent
set forth in Articles V and VI of this Agreement are satisfied or waived by the
appropriate party hereto (other than those conditions which by their nature are
be satisfied at Closing, but subject to the fulfillment or waiver of those
conditions).  The actual date of the
Closing is herein referred to as the “Closing Date.”

(b)   At the Closing, the Selling Stockholders
shall deliver or caused to be delivered to Purchaser the Shares, free and clear
of all pledges, claims, liens, charges, encumbrances, adverse claims, mortgages
and security interests of any nature or description (collectively, “Liens”).
The Selling  Stockholder shall deliver or
cause to be delivered to the Purchaser at the Closing  certificates representing the Shares fully
endorsed in blank or accompanied by stock powers duly endorsed in blank, in
each case in proper form for transfer, with signatures guaranteed by a
commercial bank or a member firm of the New York  Stock 
Exchange,  Inc.,  and with all stock transfer and any other
required documentary stamps affixed thereto.

(c)   At the Closing, Purchaser shall deliver
to the Selling Stockholders the Purchase Price, by wire transfer of immediately
available funds to the accounts specified by the Selling Stockholders at least
two (2) business days prior to the Closing Date.

 

ARTICLE II

 

Representations
and Warranties of the Selling Stockholders

 

                The Selling
Stockholders hereby make the following representations and warranties to Purchaser
as of the date hereof and as of the Closing Date, provided however that each
Selling Stockholder is making such representations and warranties solely with
respect to himself or itself, and his or its Shares.

 

Section
2.01           Title.       Each
Selling Stockholder has good and marketable title to his or its Shares, free
and clear of any Liens. No Selling Stockholder has previously transferred, sold
or assigned his or its Shares, or any portion thereof, or any interest therein,
to any other person or entity.

Section
2.02           Authorization; No Conflicts.  This Agreement has been duly executed and
delivered by each Selling Stockholder and constitutes a legal, valid and
binding obligations of such Selling Stockholders, enforceable in accordance
with its terms, subject to applicable

 

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bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting generally creditors’
rights and subject to general principles of equity.

Section
2.03           Governmental
Consents.  No consent,
approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any U.S. Federal, state, local,
municipal or foreign governmental authority, quasi-governmental authority
(including any governmental agency, commission, public authority, branch, department
or official, and any court or other tribunal) or body exercising, or entitled
to exercise, any governmentally derived administrative, executive, judicial,
legislative, police, regulatory or taxing authority, or any self-regulatory
organization, administrative or regulatory agency, commission, tribunal or
authority is required on the part of any Selling Stockholder in connection with
the execution, delivery or performance of this Agreement and the transactions
to be consummated hereby, other than (i) filings required to be made after the
Closing under applicable U.S. Federal and state securities or “blue sky” laws
(which filings will be made in accordance with such laws), and (ii) compliance with any applicable
requirements of the Exchange Act.

Section
2.04           Litigation.  No claim, action, suit or other proceeding is
pending or, to each Selling Stockholder’s knowledge, threatened against such
Selling Stockholder: (i) which questions the validity of this Agreement or the
right of such Selling Stockholder to enter into it or to consummate the
transactions contemplated hereby, or (ii) which might, either individually or
in the aggregate, have a material adverse effect on, or impair the
ability of such Selling Stockholder to perform its obligations hereunder.  No Selling Stockholder is a party to or subject to any writ,
order, decree, injunction or judgment of any court, governmental agency or
instrumentality, which would impair the performance of its obligations
hereunder, and there is no reasonable basis therefor or threat thereof.

Section
2.05           Affiliate Transactions. 
Schedule 2.05 sets forth each transaction by and between the Company and
any Selling Stockholder between January 1, 1998 and December 31, 2000 that was
material to the Company at the time such transaction was consummated, and each
transaction by and between the Company and any Selling Stockholder since
January 1, 2001, regardless of materiality to the Company (the “Stockholder
Transactions”). All Stockholder Transactions listed on Schedule 2.05 (i)
were consummated in accordance with all federal, state and local laws
pertaining thereto as well in accordance with all SEC rules and regulations,
including, without limitation, the Sarbanes-Oxley Act (as applicable), and (ii)
have been conducted on an arms’ length basis, on terms no less favorable
to the Company than if the transactions were with unaffiliated third parties

Section
2.06           Trading in Stock.  Except
as otherwise set forth on Schedule 2.06, since March 31, 2004, no Selling
Stockholder, nor any affiliate thereof, has purchased, offered, pledged, sold,
contracted to sell, sold any option or contracted to purchase, purchased any
option or contracted to sell, granted any option, right or warrant for the sale
of, or otherwise acquired, disposed of or transferred any shares of Common
Stock or any securities convertible into or exchangeable or exercisable for
Common Stock.

 

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Section
2.07           Securities Laws.   No
Selling Stockholder, nor any affiliate thereof, has engaged in the purchase,
sale or other transfer of Company securities, where such transaction was in
violation of federal, state or local laws pertaining thereto or any SEC rules
and regulations. Each Selling Stockholder has filed all reports required to be
filed under SEC rules and regulations in connection with each such purchase,
sale or other transfer of Company securities.

Section
2.08           Simultaneous Purchase Agreement. Each
Selling Stockholder has reviewed the Simultaneous Purchase Agreement and is not
aware of any information or statements of the
Company contained therein (including the Schedules attached thereto) or any
report, certificate or instrument furnished or to be furnished to Purchaser in
connection therewith that contains or will contain any untrue statement of a
material fact or omits or will omit to state a material fact necessary to make
the statements contained therein not misleading in light of the circumstances
under which they were made.

Section
2.09           Disclosures.  No information or statements of the Selling
Stockholders contained in this Agreement (including the Schedules attached
hereto) or any report, certificate or instrument furnished or to be furnished
to Purchaser in connection with the transactions contemplated by this Agreement
contains or will contain any untrue statement of a material fact or omits or
will omit to state a material fact necessary to make the statements contained
herein or therein not misleading in light of the circumstances under which they
were made.

ARTICLE III

 

Representations
and Warranties of Purchaser

 

                Purchaser
represents and warrants to the Selling Stockholders as of the date hereof and
as of the Closing Date as follows:

Section
3.01           Authority.  Purchaser is
duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization.  Purchaser has full power and authority to enter
into and to perform its obligations under this Agreement in accordance with its
terms.

Section 3.02           Validity of Agreements.  This Agreement has been duly executed and
delivered by Purchaser and, assuming due authorization, execution and delivery
by the other parties hereto, constitutes a legal, valid and binding obligations
of Purchaser enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
generally creditors’ rights and subject to general principles of equity.

 

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ARTICLE IV

 

Covenants

 

Section
4.01           Further Assurances; Reasonable Best
Efforts.  Subject to the terms and conditions herein
provided and to applicable legal requirements, each of the Selling Stockholders
and Purchaser shall cooperate and use its reasonable best efforts to take, or
cause to be taken, all action, and to do, or cause to be done and to assist and
cooperate with the other parties hereto in doing, as promptly as practicable,
all things necessary, proper or advisable under applicable laws and regulations
to ensure that the conditions set forth in Articles V and VI are satisfied and
to consummate and make effective the transactions contemplated by this
Agreement.

Section
4.02           Simultaneous Purchase Agreement. Selling Stockholders shall cooperate and
use their reasonable best efforts to take, or cause to be taken, all action,
and to do, or cause to be done and to assist, as promptly as practicable, all
things necessary, proper or advisable under applicable laws and regulations to
ensure that the Company complies with all obligations set forth in the
Simultaneous Purchase Agreement and that the transactions contemplated thereby
are consummated.

Section
4.03           Public Announcements. 
The initial press release announcing the terms of this Agreement shall
be a joint press release.  Thereafter,
each Selling Stockholder agrees not to issue any press release or otherwise
make any public statement with respect to the transactions contemplated by this
Agreement without the prior written consent of the Purchaser, unless required
by applicable law or any listing agreement with a securities exchange.  Purchaser agrees to provide to the Selling
Stockholders for review a copy of any press release or public statement it
intends to issue or make with respect to the proposed transactions.

Section
4.04           Notification of Certain Matters. 
Purchaser, on the one hand and the Selling Stockholders on the other,
shall promptly notify each other of 
(a)  any notice or other
communication from any person alleging that the consent of such person is or
may be required in connection with the transactions contemplated by this
Agreement; (b) any notice or other communication from any governmental or
regulatory agency or authority in connection with the transactions contemplated
by this Agreement or regarding any violation, or alleged violation of law; (c)
any actions, suits, claims, investigations or proceedings commenced or, to the
best of its knowledge, threatened against, relating to or involving or
otherwise affecting the Company; (d) the occurrence or non-occurrence of any
fact or event which would be reasonably likely (i) to cause any representation
or warranty contained in this Agreement to be untrue or inaccurate in any
material respect at any time from the date hereof to the Closing or (ii) to
cause any material covenant, condition or agreement hereunder not to be
complied with or satisfied in all material respects; and (e) any failure of a
Selling Stockholder or Purchaser, as the case may be, to comply with or satisfy
any covenant, condition or agreement to be complied with or satisfied by it
hereunder in any material respect; provided, however, that no
such notification shall affect the representations or warranties of any party
or the conditions to the obligations of any party hereunder.

 

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ARTICLE V

 

Closing
Conditions of Purchaser

 

The obligations of Purchaser to consummate the
transactions contemplated by this Agreement are subject to the satisfaction at
or prior to the Closing Date of each of the following conditions, any one or
more of which may be waived (but only in writing) by Purchaser (provided that
no such waiver shall be deemed to have cured any breach of any representation,
warranty or covenant made in this Agreement):

 

Section
5.01           Representations, Warranties and Covenants
of the Selling Stockholders.  (i) All
of the representations and warranties made by the Selling Stockholders in this
Agreement shall be true and correct, in all material respects, except in the
case of representations or warranties that are qualified as to materiality,
which shall be true and correct in all respects, as of the date hereof and as
of the Closing Date as though made at and as of the Closing Date, except to the
extent such representations and warranties expressly speak as of an earlier
date;  and (ii)  the Selling
Stockholders shall have performed and complied with all agreements and covenants
required by this Agreement to be performed by them on or prior to the Closing
Date. No information shall have come to the attention of Purchaser that shall
cause Purchaser to believe that any of the representations and warranties made
by the Selling Stockholders in this Agreement are not true and correct in all
respects, as of the date hereof and as of the Closing Date, except to the
extent such representations and warranties expressly speak as of an earlier
date.

Section
5.02           Consents.  All consents
and approvals of, and all filings and registrations with, governmental
authorities and other third parties required in connection with the
consummation of the transactions contemplated by this Agreement shall have been
obtained or made by or on behalf of the Selling Stockholders.

Section
5.03           Simultaneous Purchase. 
The Simultaneous Purchase shall have been consummated.

Section
5.04           No Litigation or Legislation.  No statute, rule, regulation, decree, ruling or
injunction shall have been enacted or entered, and no litigation, proceeding,
governmental inquiry or investigation shall be pending or threatened, which
challenges, prohibits, restricts or deems inadvisable, or seeks to prohibit or
restrict, the consummation of the transactions contemplated by this Agreement
or restricts or impairs the ability of Purchaser to own an equity interest in
the Company.

Section
5.05           No Stockholder Action; No Claim Regarding
Stock Ownership.  No stockholder action, suit or proceeding
against the Company shall be pending or threatened.  There shall not have been made or threatened
by any person any claim asserting that such person (a) is the holder of, or has
the right to acquire or to obtain beneficial ownership of Shares or any other
stock, voting, equity, or ownership interest in, the Company, or (b) is
entitled to all or any portion of the Shares.

Section
5.06           SEC Rules and Regulations. 
There shall not have occurred any enactment of any rule or regulation by
the SEC which in the reasonable judgment of Purchaser would materially impair
the ability of Purchaser to purchase the Shares.

 

6

 

Section
5.07           No Trading Halt. 
There shall not have occurred any suspension or limitation in trading
in, and minimum prices shall not have been established for, the Company’s
Common Stock on the OTC Bulletin Board, and the Company shall not have received
any notice threatening the continued quotation of the Common Stock on the OTC
Bulletin Board.

Section
5.08           Delivery of the Shares. 
The Selling Stockholders shall have delivered the Shares, or caused them
to be delivered, to Purchaser.

Section
5.09           The Concurrent Contribution Agreement. 
The transaction contemplated by the Concurrent Contribution Agreement
shall be consummated substantially at the same time as the Closing.

 

ARTICLE VI

Closing Conditions of the Selling
Stockholders

 

The obligations of the Selling Stockholders to
consummate the transactions contemplated by this Agreement are subject to the
satisfaction at or prior to the Closing Date of each of the following
conditions, any one or more of which may be waived (but only in writing) by the
Selling Stockholders (provided that no such waiver shall be deemed to have
cured any breach of any representation, warranty or covenant made in this
Agreement):

 

Section
6.01           Representations, Warranties and Covenants
of Purchaser.  (i) All of the representations and
warranties made by Purchaser in this Agreement to which it is a party shall be
true and correct , in all material respects, except in the case of
representations or warranties that are qualified as to materiality, which shall
be true and correct in all respects, as of the date hereof and as of the
Closing Date as though made at and as of the Closing Date, except to the extent
such representations and warranties expressly speak as of an earlier date;
(ii) Purchaser shall have performed and complied with all agreements and
covenants required by this Agreement to be performed by it on or prior to the
Closing Date; and (iii) with respect to clauses (i) and (ii), at the Closing
there shall be delivered to the Company a certificate signed by the Chief
Executive Officer of Purchaser to the foregoing effect.

Section
6.02           No Litigation or Legislation.  No statute, rule, regulation, decree, ruling or
injunction shall have been enacted or entered, and no litigation, proceeding,
governmental inquiry or investigation shall be pending or threatened, which
challenges, prohibits, restricts or deems inadvisable, or seeks to prohibit or
restrict, the consummation of the transactions contemplated by this Agreement
or restricts or impairs the ability of Purchaser to own an equity interest in
the Company.

Section
6.03           Simultaneous Purchase. 
The Simultaneous Purchase shall have been consummated.

 

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Section
6.04           Payment of the Purchase Price. 
Purchaser shall have delivered the Purchase Price to the Selling
Stockholders.

Section
6.05           The Concurrent Contribution Agreement. 
Purchaser and the Trust shall not have exercised their joint right under
the Concurrent Contribution Agreement to substitute the Company as a party to
the transaction contemplated thereby.

 

ARTICLE VII

 

Termination

Section
7.01           Termination. 
This Agreement may be terminated and the transactions contemplated
hereby may be abandoned at any time prior to the Closing Date:

(a)   by the mutual written consent of the
Selling Stockholders and Purchaser;

(b)   by Purchaser, if Purchaser is willing and
able to close and the Closing Date shall not have occurred on or before the
date that is thirty (30) days after the date on which all conditions to closing
set forth in Articles V and VI have been satisfied;

(c)   by the Selling Stockholders, if the
Selling Stockholders are willing and able to close and the Closing Date shall
not have occurred on or before the date that is six (6) months after that after
the date on which all conditions to closing set forth in Articles V and VI have
been satisfied;

(d)   by Purchaser or the Selling Stockholders
if any court or other governmental authority or agency shall have issued,
enacted, entered, promulgated or enforced any law, order, judgment, decree,
injunction or ruling or taken any other action (that has not been vacated,
withdrawn or overturned) restraining, enjoining or otherwise prohibiting the
transactions contemplated hereby and such law, order, judgment, decree,
injunction, ruling or other action shall have become final and non-appealable; provided
that the party seeking to terminate pursuant to this Section 7.01(d) shall have
used its reasonable best efforts to challenge such law, order, judgment,
decree, injunction or ruling;

(e)   by the Selling Stockholders, (i) if there
shall have occurred, on the part of Purchaser, a breach of any material
representation, warranty, covenant or agreement contained in this Agreement
which is not curable or, if curable, is not cured within ten (10) calendar days
after written notice of such breach is given by the Selling Stockholders to
Purchaser; or (ii) upon the failure of a closing condition set forth in Article
VI which is not curable;

(f)    by Purchaser, (i) if there shall have
occurred, on the part of any Selling Stockholder, a breach of any
representation, warranty, covenant or agreement contained in this Agreement
which is not curable or, if curable, is not cured on or prior to the earlier of
(x) ten (10) calendar days after written notice of such breach is given by Purchaser
to such Selling Stockholder and (y) the date on which all

 

8

 

        conditions to the
consummation of the transactions contemplated hereby not related to such breach
have been satisfied, (ii) any Selling Stockholder breaches a covenant in
Article IV or (iii) upon the failure of a closing condition set forth in
Article V which is not curable; or

(g)   by Purchaser, if Purchaser and the Trust
exercise their joint right of substitution under Section 10.3 of the Concurrent
Contribution Agreement.

Section
7.02           Effect of Termination. 
In the event of the termination of this Agreement pursuant to Section
7.01, this Agreement shall forthwith become void and have no effect, without
any liability on the part of any party or its directors, officers, members or
stockholders, other than pursuant to the provisions of this Section 7.02 and
Section 7.03, which shall survive any such termination.  Nothing contained in this Section 7.02 shall
relieve any party from liability for any breach of this Agreement.

Section
7.03           Fees and Expenses.

(a)   If the transactions contemplated hereby
are not consummated, except as otherwise provided herein, all costs and
expenses incurred in connection with this Agreement and the transactions
contemplated by this Agreement shall be paid by the party incurring such
expenses.  If the transactions
contemplated hereby are consummated, all costs and expenses incurred in
connection with this Agreement and the transactions contemplated by this
Agreement by any party hereto shall be paid by the Company at the Closing.

(b)   In the event that this Agreement is
terminated by  Purchaser pursuant to
Section 7.01(b) or 7.01(f), the Selling Stockholders, severally or pro rata
based on the number of Shares being sold by such Selling Stockholders to
Purchaser, shall promptly (and, in any event, within three business days after
such termination by Purchaser or, in the case of any termination by the
Company, immediately upon such termination) reimburse Purchaser for up to
$100,000 of costs and expenses incurred in connection with this Agreement and
the transactions contemplated hereby (the “Purchaser Termination
Reimbursement”).  The Purchaser
Termination Reimbursement shall be payable by wire transfer of immediately
available funds.

(c)   In the event the Selling Stockholders
shall have terminated this Agreement pursuant to Sections 7.01(c) or 7.01(e),
Purchaser shall promptly (and, in any event, within three business days after
such termination) reimburse the Selling Stockholders for up to an aggregate
amount of $100,000 of costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby (the “Stockholder
Termination Reimbursement”).  The
Stockholder Termination Reimbursement shall be payable by wire transfer of
immediately available funds.

(d)   The parties hereto agree that the
provisions contained in this Section 7.03 are an integral part of the
transactions contemplated by this Agreement, that the damages

 

9

 

        resulting from the
termination of this Agreement as set forth in Sections 7.03(b) and (c) of this
Agreement are uncertain and incapable of accurate calculation and that the
amounts payable pursuant to Sections 7.03(b) and (c) hereof are reasonable
forecasts of the actual damages which may be incurred by the parties under such
circumstances. The amounts payable pursuant to Sections 7.03(b) and (c) hereof
constitute liquidated damages and not a penalty and shall be the sole monetary
remedy in the event of termination of this Agreement on the bases specified in
such Sections. If either party fails to pay to the other party any amounts due
under Sections 7.03(b) and (c), as applicable, in accordance with the terms
hereof, the breaching party shall pay the costs and expenses (including legal
fees and expenses) of the other party in connection with any action, including
the filing of any lawsuit or other legal action, taken to collect payment.

Section
7.04           Specific Performance.          Notwithstanding
anything set forth above, the Selling Stockholders acknowledge that Purchaser
has entered into the Simultaneous Purchase Agreement in reliance upon Selling
Stockholder’s covenant to consummate the transactions contemplated hereby upon
consummation of the Simultaneous Purchase. The parties hereby agree that, in
the event that any Selling Stockholder shall fail to consummate the
transactions contemplated hereby (other than in as a result of Sections
7.01(a), 7.01(c) or 7.01(e)) following consummation of the Simultaneous
Purchase, then, in addition to any other remedy set forth above, Purchaser shall
be entitled to specific performance, and upon demand by Purchaser, such Selling
Stockholder shall be required to consummate the transactions contemplated by
this Agreement.

 

ARTICLE VIII

Indemnification;
Survival of Representations and Warranties

 

Section
8.01           Indemnification by the Selling
Stockholders.  Each Selling Stockholder agrees to indemnify
and hold harmless Purchaser, and its shareholders, directors, officers,
employees, agents, affiliates, successors in interest, assigns and
representatives (collectively, the “Purchaser Indemnified Parties”)  from and against any and all claims,
liabilities, obligations, losses, fines, costs, proceedings, deficiencies or
damages (whether absolute, accrued, conditional or otherwise and whether or not
resulting from third party claims), including out-of-pocket expenses, court
costs, expert witness fees and reasonable attorneys’ fees incurred in the
investigation or defense of any of the same or in asserting any of their
respective rights hereunder (“Losses”) which may be incurred, directly
or indirectly, by any such party as a result of, or based upon or arising from
(i) any inaccuracy in or breach of any of the representations and warranties
made by such Selling Stockholder pursuant to this Agreement, (ii) any breach or
nonperformance of any of the covenants or agreements made by such Selling
Stockholder pursuant to this Agreement, (iii) any matter as to which such
Selling Stockholder in other provisions of this Agreement has expressly agreed
to indemnify Purchaser or (iv) any and all actions, suits, proceedings, claims,
demands, assessments, judgments, costs and expenses, including, without
limitation, reasonable legal fees and expenses, incurred in enforcing the
indemnity provided by this Section 8.01.

 

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Section
8.02           Cooperation. 
The parties shall cooperate in the defense of all third party claims
which may give rise to indemnifiable claims hereunder.  In connection with the defense of any claim,
each party shall make available to the party controlling such defense any
books, records or other documents within its control and access to employees
that are reasonably requested in the course of such defense.

Section
8.03           Limitations on Indemnification. 
No Selling Stockholder shall be required to indemnify any Purchaser
Indemnified Parties under Sections 8.01 unless the aggregate of all amounts for
which indemnity would otherwise be payable by such Selling Stockholder exceeds
$100,000 (except with respect to any inaccuracy in or breach of the
representations and warranties contained in Sections 2.01 and 2.05 with respect
to which this threshold shall not apply), and, in such event, the Selling
Stockholder shall be responsible for the entire amount.  Each Selling Stockholder’s indemnity
obligations under Section 8.01 with respect to any breach of the
representations and warranties in Article II hereof (except with respect to any
inaccuracy in or breach of the representations and warranties contained in
Sections 2.01 and 2.05) shall be limited, in the aggregate, to the amount of
Purchase Price received by such Selling Stockholder pursuant hereto.

Section
8.04           Notice to Indemnifying Party. 
If any party (the “Indemnified Party”) receives notice of any
claim or other commencement of any action or proceeding with respect to which
any other party (or parties) (the “Indemnifying Party”) is obligated to
provide indemnification pursuant to Section 8.01 pursuant to any other specific
indemnification provision contained in this Agreement, the Indemnified Party
shall promptly give the Indemnifying Party written notice thereof which notice
shall specify, if known, the amount or an estimate of the amount of the
liability arising therefrom. The failure of a party to give notice under this
Section 8.04 shall not relieve any party from liability, unless and to the
extent the other party has been materially prejudiced thereby. The Indemnified
Party shall not settle or compromise any claim by a third party for which it is
entitled to indemnification hereunder, without the prior written consent of the
Indemnifying Party (which shall not be unreasonably withheld or delayed) unless
a suit shall have been instituted against it and the Indemnifying Party either
(i) shall not have undertaken the defense of such suit after notification
thereof as provided in Section 8.05 or (ii) is demonstrably unable to undertake
the defense of such suit or satisfy the claims arising thereunder.

Section
8.05           Defense by Indemnifying Party. 
In connection with any claim giving rise to indemnity hereunder
resulting from or arising out of any claim or legal proceeding by a person who
is not a party to this Agreement, the Indemnifying Party at its sole cost and
expense may, upon written notice to the Indemnified Party, assume the defense
of any such claim or legal proceeding using counsel of its choice (subject to
the approval of the Indemnified Party, which approval may not be unreasonably
withheld or delayed) if it (i) acknowledges to the Indemnified Party in writing
its obligations to indemnify the Indemnified Party with respect to all elements
of such claim and (ii) demonstrates its ability to undertake the defense of
such claim or proceeding and satisfy any liabilities resulting therefrom.  The Indemnified Party shall be entitled to
participate in (but not control) the defense of any such action, with its
counsel and at its own expense; provided, however, that if the
Indemnified Party, in its reasonable discretion, determines that there exists a
conflict of interest between the Indemnifying Party (or any constituent party
thereof) and the Indemnified Party, the Indemnified Party (or such constituent
party thereof) shall

 

11

 

have the right to engage separate counsel, the
reasonable costs and expenses of which shall be paid by the Indemnifying Party,
but in no event shall the Indemnifying Party be liable to pay for the costs and
expenses of more than one separate firm of attorneys (in addition to any local
counsel). If the Indemnifying Party does not assume the defense of any such
claim or litigation resulting therefrom, the Indemnified Party may settle or
defend against such claim or litigation, after giving notice of the same to the
Indemnifying Party, on such terms as the Indemnified Party may deem
appropriate, and the Indemnifying Party shall be entitled to participate in
(but not control) the defense of such action, with its counsel and at its own
expense.  If the Indemnifying Party
thereafter seeks to question the manner in which the Indemnified Party defended
such third-party claim or the amount or nature of any such settlement, the
Indemnifying Party shall have the burden to prove by a preponderance of the
evidence that the Indemnified Party did not defend or settle such third-party
claim in a reasonably prudent manner.

Section
8.06           Survival of Representations and
Warranties of the Selling Stockholders. 
Notwithstanding any right of Purchaser and the Selling Stockholders to
fully investigate the affairs of the other parties hereto and notwithstanding
any knowledge of facts determined or determinable by Purchaser or the Selling
Stockholders pursuant to such investigation or right of investigation, whether
before or after execution and delivery of this Agreement or the Closing, and
notwithstanding any waiver of any condition to the Closing, Purchaser and the
Selling Stockholders shall have the right to rely fully upon the
representations, warranties, covenants and agreements of the other parties
hereto contained in this Agreement. The waiver of any condition based on the
accuracy of any representation or warranty, or on the performance or compliance
with any covenant or obligation, will not affect the right of indemnification,
payment of damages, or other remedy based on such representations, warranties,
covenants and obligations.  Except as set
forth below, each representation, warranty, covenant and agreement of the
Selling Stockholders contained in this Agreement shall survive the execution
and delivery of this Agreement and the Closing and investigation at any time
made by or on behalf of Purchaser and terminate and expire on the six (6) month
anniversary of the Closing Date, unless on or prior to such date Purchaser has
delivered to the Company a written notice of a claim with respect to any such
representation, warranty, covenant or agreement.  Notwithstanding the foregoing
or any other provision in this Agreement, the representations and warranties of
the Selling Stockholders contained in Sections 2.01 and 2.05 of this Agreement
shall survive the execution and delivery of this Agreement and the Closing and
any investigation at any time made by or on behalf of Purchaser indefinitely.

Section
8.07           Non-Survival of Representations and
Covenants of Purchaser.  Each representation, warranty,
covenant and agreement of Purchaser contained in this Agreement shall terminate
upon the Closing.

ARTICLE IX

 

Miscellaneous

Section
9.01           Amendments and Waivers. 
No amendment or waiver of any provision of this Agreement shall be
effective with respect to any party unless made in writing and signed by such
party. Waiver by any party of any breach or failure to comply with any
provision of this

 

12

 

Agreement by any other
party shall not be construed as, or constitute, a continuing waiver of such
provision, or a waiver of any other breach of or failure to comply with any
other provisions of this Agreement.

Section
9.02           Assignability. 
Neither this Agreement nor any right, remedy, obligation or liability
arising hereunder or by reason hereof shall be assignable by the Company or any
Selling Stockholder without the prior written consent of Purchaser.  Any right, remedy, obligation or liability
arising hereunder or by reason hereof shall be assignable by Purchaser without
the prior written consent of the Selling Stockholders. Purchaser may purchase
the Shares as nominee of its members.

Section
9.03           Entire Agreement. 
This Agreement, the Exhibits and Schedules hereto constitute the entire
agreement among the parties relating to the subject matter hereof and supersede
any and all prior agreements or understandings with respect to the subject matter
hereof.

Section
9.04           Notices.  All notices,
requests, claims, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given when delivered in person,
by overnight courier or facsimile to the respective parties as follows:

	
   

  	
  If to Purchaser:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RFX Acquisition LLC

  	
   

  
	
   

  	
  650 Madison Avenue

  	
   

  
	
   

  	
  16th Floor

  	
   

  
	
   

  	
  New York, New York 10022

  	
   

  
	
   

  	
  Facsimile: 212-753-3188

  	
   

  
	
   

  	
  Attention: Howard Tytel, Esq.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Greenberg Traurig, LLP

  	
   

  
	
   

  	
  200 Park Avenue

  	
   

  
	
   

  	
  New York, New York 10166

  	
   

  
	
   

  	
  Facsimile: (212) 801-6400

  	
   

  
	
   

  	
  Attention: Alan I. Annex, Esq.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  If to the Selling Stockholders:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ronald S. Boreta

  	
   

  
	
   

  	
  Sports Entertainment
  Enterprises, Inc.

  	
   

  
	
   

  	
  6730 South Las Vegas Boulevard

  	
   

  
	
   

  	
  Las Vegas, Nevada 89119

  	
   

  

 

13

 

	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Todd Wilson

  
	
   

  	
  ASI Group LLC

  
	
   

  	
  6730 South Las Vegas Boulevard

  
	
   

  	
  Las Vegas, Nevada 89119

  

 

or to such other address
as the person to whom notice is given may have previously furnished to the
other in writing in the manner set forth above (provided that notice of any
change of address shall be effective only upon receipt thereof).

Section
9.05           Governing Law; Submission to
Jurisdiction.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.  Each of the Selling Stockholders and
Purchaser irrevocably consents to the exclusive jurisdiction of the Federal and
state courts, located in New York County, New York, in any suit or proceeding
based on or arising under this Agreement and irrevocably agree that all claims
in respect of such suit or proceeding shall be determined in such courts.  The Selling Stockholders and Purchaser
irrevocably waive the defense of an inconvenient forum to the maintenance of
such suit or proceeding.  Nothing herein
shall affect the right of Purchaser to serve process in any manner permitted by
law.

Section
9.06                           Waiver
of Jury Trial.  EACH PARTY
ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY OR DISPUTE THAT MAY ARISE UNDER
THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND
THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.  EACH
PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER, (II) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF
THIS WAIVER, (III) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) EACH
SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.06.

Section
9.07           Arm’s Length Negotiation.                Each
party hereto expressly represents and warrants to all other parties hereto that
(a) before executing this Agreement, said party has fully informed himself or
itself of the terms, contents, conditions and effects of this Agreement, (b)
said party has relied solely and completely upon his or its own judgment in
executing this Agreement, (c) said party has had the opportunity to seek and
has obtained the advice of counsel before executing this Agreement, (d) said
party has acted voluntarily and of his or its own free will in executing this
Agreement, (e) said party is not acting under duress, whether economic or
physical, in executing this Agreement, and (f) this Agreement is the result of
arm’s-length negotiations conducted by and among parties and their respective
counsel.

 

14

 

Section
9.08           Severability. 
If one or more of the provisions contained in this Agreement shall, for
any reason, be held invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision
hereof.

Section
9.09           Third Party Beneficiaries. 
This Agreement is intended for the benefit of the parties hereto and
their respective successors and assigns, and is not for the benefit of, and no
provision hereof may be enforced by, any other person or entity.

Section
9.10           Descriptive Headings, etc. 
The descriptive headings herein are inserted for convenience of
reference only and are not intended to be part of or to affect the meaning or interpretation
of this Agreement.  All references herein
to “Articles,” “Sections” and “Paragraphs” shall refer to corresponding
provisions of this Agreement unless otherwise expressly noted.

Section
9.11           Counterparts; Execution and Delivery by
Facsimile.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same agreement. 
This Agreement may be executed and delivered by facsimile, with such
delivery to be as effective as delivery of an originally executed counterpart
hereof, followed promptly by delivery of an originally executed counterpart.

Section
9.12           Certain Definitions. 
Certain terms used in this Agreement are defined as follows:

(a)   the term “affiliate,” as applied to any
person, shall mean any other person directly or indirectly controlling,
controlled by, or under common control with, that person.  For the purposes of this definition, “control”
(including, with correlative meanings, the terms “controlling,” “controlled by”
and “under common control with”), as applied to any person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of that person, whether through the ownership of voting
securities, by contract or otherwise, and a person shall be deemed to control
another person if the controlling person owns 15% or more of any class of
voting securities (or other ownership interest) of the controlled person;

(b)   the term “business day” shall mean each
day other than a Saturday, Sunday or a day on which commercial banks and
national stock exchanges located in New York, New York are closed or authorized
by law to close; and

(c)   the term “person” shall include
individuals, corporations, partnerships, trusts, other entities and groups
(which term shall include a “group” as such term is defined in Section 13(d)(3)
of the Exchange Act).

 

[signature page follows]

 

15

 

                IN WITNESS
WHEREOF, the parties hereto have executed this Purchase Agreement as of the
date first above written.

 

 

	
   

  	
  BORETA ENTERPRISES, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Ronald S. Boreta

  
	
   

  	
  Name:

  	
  Ronald S. Boreta

  
	
   

  	
  Title: 

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Ronald S. Boreta

  
	
   

  	
  Ronald S. Boreta

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Vaso Boreta

  
	
   

  	
  Vaso Boreta

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ John Boreta

  
	
   

  	
  John Boreta

  
	
   

  	
   

  	
   

  
	
   

  	
  ASI GROUP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Perry Rogers

  
	
   

  	
  Name:

  	
  Perry Rogers

  
	
   

  	
  Title: 

  	
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  RFX ACQUISITION LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert F.X. Sillerman

  
	
   

  	
  Name:

  	
  Robert F.X. Sillerman

  
	
   

  	
  Title: 

  	
  Managing Member

  

 

Signature Page to Selling
Stockholders Purchase Agreement

 

16Exhibit
10.6

 

AMENDMENT

 

To

 

STOCK PURCHASE AGREEMENT

 

By and Among

 

RONALD S. BORETA,

 

VASO BORETA,

 

JOHN BORETA,

 

BORETA ENTERPRISES LTD.

 

ASI GROUP LLC,

 

And

 

RFX ACQUISITION LLC

 

THIS AMENDMENT (this “Amendment”) is
made as of February 7, 2005 by and among Ronald S. Boreta (“RBoreta”),
Vaso Boreta (“VBoreta”), John Boreta (“JBoreta”), Boreta
Enterprises Ltd. (“BEL”), ASI Group LLC (“ASI” and collectively
with RBoreta, VBoreta, JBoreta and BEL, the “Selling Stockholders”) and
RFX Acquisition LLC, a Delaware limited liability company (the “Purchaser”).

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, the Purchaser and the Selling
Stockholders have entered into that certain Stock Purchase Agreement, dated as
of December 15, 2004 (the “Stock Purchase Agreement”); and

 

WHEREAS, the Purchaser and the Selling
Stockholders have agreed to amend the Stock Purchase Agreement as provided
herein and desire that such revisions be effective as of the date hereof;

 

NOW, THEREFORE, in consideration of the
mutual agreements herein contained and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

 

SECTION 1.                     Definitions.

 

Unless otherwise defined herein, capitalized
terms used herein which are defined in the Stock Purchase Agreement shall have
the respective meanings assigned to such terms in the Stock Purchase Agreement.

 

SECTION 2.                     Amendment to the Stock Purchase Agreement.

 

The Stock Purchase Agreement is hereby
amended as follows:

 

A.                                   The second WHEREAS
clause in the preamble of the Stock Purchase Agreement is hereby deleted in its
entirety and replaced with the following new WHEREAS clause:

 

“WHEREAS,
pursuant to that certain purchase agreement dated as of the date hereof (the “Simultaneous
Purchase Agreement”), Purchaser, simultaneously herewith, is acquiring from
the Company 30,464,072 shares of Common Stock, at a price of $0.10 per share
(the “Simultaneous Purchase”);”

 

SECTION 3.                     Effectiveness.

 

This Amendment shall become effective as of
the date first written above when and if the Purchaser and the Selling
Stockholders shall have executed this Amendment.  Upon the effectiveness hereof, all references
in the Stock Purchase Agreement to the “Agreement” and each reference in any
other document to the Stock Purchase Agreement (regardless of how the Stock
Purchase Agreement is defined in such other document) shall mean and be a
reference to the Stock Purchase Agreement as amended by this Amendment.

 

SECTION 4.                     Counterparts.

 

This Amendment may be executed in any number
of counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

 

SECTION 5.                 Governing Law.

 

All issues and questions concerning the
construction, validity, interpretation and enforceability of this Amendment
shall be governed by and construed in accordance with, the laws of the State of
New York, without giving effect to any choice of law or conflict of law rules
or provisions (whether of the State of New York or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the
State of New York.

 

 

SECTION 6.                     Confirmation of Stock Purchase Agreement.

 

Except as expressly amended hereby, all of
the terms of the Stock Purchase Agreement shall remain in full force and effect
and are hereby ratified and confirmed in all respects.

 

 

[The remainder of this page is
intentionally left blank.]

 

 

IN WITNESS WHEREOF, the parties hereto have
executed this Amendment as of the date first written above.

 

 

	
   

  	
  BORETA ENTERPRISES, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald
  S. Boreta

  	
   

  
	
   

  	
  Name:  Ronald S. Boreta

  
	
   

  	
  Title:  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Ronald
  S. Boreta

  	
   

  
	
   

  	
  Ronald S.
  Boreta

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Vaso
  Boreta

  	
   

  
	
   

  	
  Vaso Boreta

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ John
  Boreta

  	
   

  
	
   

  	
  John Boreta

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASI GROUP, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Perry
  Rogers

  	
   

  
	
   

  	
  Name:  Perry Rogers

  
	
   

  	
  Title:  Member

  
	
   

  	
   

  
	
   

  	
  RFX
  ACQUISITION LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  F.X. Sillerman

  	
   

  
	
   

  	
  Name:  Robert F.X. Sillerman

  
	
   

  	
  Title:  Managing Member

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