Document:

Exhibit
10.3

 

PURCHASE AGREEMENT

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

                WHEREAS, the Company proposes to
issue to the Purchaser, and Purchaser proposes to acquire from the Company
34,320,124 shares (each a “Share”, and collectively the “Shares”)
of Common Stock, no par value per share, of the Company (the “Common Stock”);

WHEREAS,
in connection with the transactions contemplated by this Agreement, at the
Closing (as defined in Section 1.02), the Company will issue to Purchaser
warrants (the “Warrants”) to purchase (i) 8,689,599 shares of Common
Stock at an exercise price of $1.00 per share, (ii) 8,689,599 shares of Common
Stock at an exercise price of $1.50 per share, and (iii) 8,689,599 shares of
Common Stock at an exercise price of $2.00 per share, pursuant to Warrant
Agreements (the “Warrant Agreements”) to be entered into by the Company
and Purchaser, in the form attached hereto as Exhibit A;

                WHEREAS, the Board of Directors
of the Company (the “Board”) unanimously has determined and resolved
that all of the transactions contemplated by this Agreement are fair to and in
the best interests of the Company and has approved the issuance of the Shares
and the Warrants in accordance with the terms set forth herein;

                WHEREAS, simultaneously
herewith, Purchaser is purchasing directly from the Principal Stockholders, for
a price of $0.10 per share, an aggregate of 2,240,397 shares of Common Stock
owned by the Principal Stockholders (the “Principal Stockholder Sale”);
and

                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;

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

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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 Company, and the Company
shall sell and issue to Purchaser, 34,320,124 shares of Common Stock at a price
of $0.10 per share, for an aggregate purchase price (the “Purchase Price”)
of $3,432,012.40.

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, NY 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 Company shall deliver or caused to be
delivered to Purchaser the Shares and the Warrants, free and clear of all
pledges, claims, liens, charges, encumbrances, adverse claims, mortgages and
security interests of any kind or nature whatsoever (collectively, “Liens”).  At the Closing, the Company shall deliver to
Purchaser one or more duly authorized, issued and executed certificates (I/N/O
Purchaser or, if the Company otherwise has been notified, I/N/O Purchaser’s
nominee) evidencing the Shares which Purchaser is purchasing hereunder.

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

 

ARTICLE II

 

Representations and Warranties of
the Company

                The Company hereby makes the
following representations and warranties to Purchaser as of the date hereof and
as of the Closing Date, provided  however, that the Boreta
Parties, jointly and severally with the Company, make the representations and
warranties set forth below in Sections 2.01, 2.04(b), 2.06, 2.07(b), 2.08,
2.09, 2.15, 2.19, 2.21, 2.23, 2.24 and 2.25, and further provided that ASI,
solely with respect to itself, makes the representations and warranties set
forth below in Sections 2.01, 2.04(b), 2.21 and 2.24.

 

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Section
2.01           Organization and
Standing.  Each of the Company
Entities is a corporation or limited liability company, as the case may be,
duly organized, validly existing and in good standing under the laws of the
state of its respective formation and has full corporate or, as the case may
be, limited liability company power and authority to conduct its business as
presently conducted and as proposed to be conducted.  Each of the Company Entities has full
corporate or, as the case may be, limited liability power and authority to
enter into and perform its obligations under this Agreement and to carry out
the transactions contemplated hereby and thereby.  Each of the Company Entities is duly
qualified to do business as a foreign corporation and is in good standing in
every jurisdiction in which it is required to be so qualified.  Each of the Company Entities has furnished to
Purchaser true and complete copies of its certificate of incorporation or
formation and by-laws or operating agreement, each as amended to date and
presently in effect.  No Company entity
is in violation of any provision of its certificate of incorporation or
by-laws.

Section
2.02           Subsidiaries.  Except as set forth on Schedule 2.02, the
Company has no Subsidiaries (as hereinafter defined) and does not own or
control, directly or indirectly, any shares of capital stock of any other
corporation or any interest in any partnership, joint venture or other
non-corporate business enterprise.  For
purposes of this Agreement, the term “Subsidiary” or “Subsidiaries” shall mean,
with respect to any person, any corporation or other entity (whether
incorporated or unincorporated) in which a majority of the outstanding voting
power or interests is at the time owned, directly or indirectly, by such person
or by any of its Subsidiaries or in which such person or any Subsidiary is the
general partner or controlling manager thereof.

Section
2.03           Capitalization.

(a)                                  Schedule 2.03(a) sets forth the capitalization of the Company
as of the date hereof, including (i) the authorized classes and series of
capital stock, (ii) the number of shares of capital stock issued and
outstanding, (iii) the number of shares of capital stock reserved for issuance
or issuable pursuant to securities exercisable for, or convertible into or
exchangeable for, any shares of capital stock, including the number of shares
reserved for issuance pursuant to stock option, employment benefit or other
plans or warrants, and (iv) all issued and outstanding securities exercisable
for or convertible into or exchangeable for shares of capital stock, of the
Company.  All outstanding shares of
capital stock have been duly authorized and validly issued and are fully paid
and non-assessable.  Except as set forth
on Schedule 2.03(a), the Company has (i) no existing options, warrants, calls,
subscriptions or other rights, agreements, arrangements or commitments of any
character, relating to the issued or unissued capital stock of the Company,
obligating the Company to issue, transfer or sell or cause to be issued,
transferred or sold any shares of capital stock of, or other equity interest
in, the Company or securities convertible into or exchangeable for such shares
or equity interests, nor are there any obligations of the Company to grant,
extend or enter into any such option, warrant, call, subscription or other
right, agreement, arrangement or commitment, and (ii) no shares of its capital
stock reserved for issuance.

(b)                                 Since December 31, 2003, the Company has not issued any
shares of capital stock or securities exchangeable or convertible into shares
of capital stock.  All of the

 

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                                                outstanding shares of capital stock of the Company are, and
all shares of capital stock which may be issued pursuant to the exercise of
outstanding stock options and warrants will be, when issued in accordance with
the respective terms thereof, duly authorized, validly issued, fully paid and
nonassessable and are not subject to nor were they issued in violation of any
preemptive rights (or similar rights). 
There are no issued and outstanding bonds, debentures, notes or other
indebtedness having general voting rights (or convertible into, or exchangeable
for, securities having such rights) (“Voting Debt”) of the Company.  There are no outstanding contractual
obligations of the Company to any third party to repurchase, redeem or
otherwise acquire any shares of capital stock of the Company.  Except as set forth on Schedule 2.03(b), as
of the date of this Agreement, there are no (i) voting agreements with respect
to shares of capital stock of the Company which affect or relate to the voting
of, or the execution of written consents with respect to, or the solicitation
of proxies relating to the voting of, any security of the Company, or (ii)
agreements between the Company and any holders of capital stock of the Company
or any persons or entities receiving, or entitled to receive, shares of capital
stock of the Company relating to the acquisition (including, without
limitation, rights of first refusal or pre-emptive rights), disposition,
redemption, registration under the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder (the “Securities Act”) or
voting of the capital stock of the Company.

(c)                                  The Shares have been duly authorized and, when issued against
payment therefor in accordance with the provisions of this Agreement, will be
validly issued, fully paid and non-assessable, free and clear of all
Liens.  The issuance of shares of Common
Stock upon conversion of the Warrants (the “Warrant Shares”) has been
duly authorized and, when issued, will be validly issued, fully paid and non-assessable,
free and clear of all Liens.  Except as
set forth on Schedule 2.03(c), the issuance of the Shares or the Warrant Shares
are not subject to any preemptive rights, rights of first refusal, tag-along
rights, drag-along rights or other similar rights and will not otherwise result
in the issuance of any additional shares of capital stock of the Company (other
than the Warrant Shares) or the triggering of other anti-dilution or similar
rights contained in any options, warrants, debentures or other securities,
agreements or commitments of the Company. 
The Company does not have any obligations, contractual or otherwise, to
pay any dividend or make any distribution in respect of its capital stock.

(d)                                 All the issued and outstanding shares of capital stock of the
Company have been offered and sold in compliance with applicable U.S. Federal
and state securities or “blue sky” laws. 
The offer, sale and issuance of the Shares and the Warrant Shares will
be done in compliance with all applicable U.S. Federal and state securities or “blue
sky” laws.  Neither the Company nor any
person or entity acting on its behalf has taken or will take any action which
would subject the offering, sale and issuance of the Shares or the Warrant
Shares to the registration requirements of the Securities Act.

 

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Section 2.04           Authorization;
No Conflicts.

(a)                                  The execution and delivery of this Agreement by the Company
and the performance by the Company of its obligations hereunder will not
(i) conflict with or violate the certificate of incorporation or by-laws
of the Company, (ii) conflict with or violate any law, statute, ordinance,
rule, regulation, order, judgment, decree, injunction or other binding action
or requirement of any governmental authority or agency applicable to the
Company, (iii) result in a breach or violation of, a default under (or an event
which with notice or lapse of time or both would become a default), or the
triggering of any payment or other obligations to any of the Company’s present
or former employees, or (iv) result in a violation or breach of or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, or result in any loss of any benefit under, or
the creation of any lien on any of the property or assets of the Company
pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease,
license, permit, franchise or other instrument or obligation of the Company or
to which the Company is a party.

(b)                                 The execution, delivery and performance by the Company of
this Agreement and the consummation by the Company of the transactions
contemplated hereby, including the issuance of the Warrant Shares, have been
duly authorized by all necessary corporate action.  No meeting of the shareholders of the Company
is necessary to authorize the consummation of the transactions contemplated
hereby. This Agreement has been duly executed and delivered by the Company,
each Boreta Party and ASI and constitutes a legal, valid and binding
obligations of the Company, each Boreta Party and ASI 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.

(c)                                  The Board, by unanimous written consent in lieu of a meeting,
that are in full force and effect and have not been in any way modified or
rescinded, after full and deliberate consideration, has duly taken (or caused
to have been taken) and has done (or caused to have been done) all actions and
things necessary under the Colorado Business Corporation Act (“CBCA”),
the Company’s certificate of incorporation and all other applicable laws to (i)
approve and adopt this Agreement and the transactions contemplated hereby, (ii)
determine that this Agreement and the transactions contemplated hereby are fair
to and in the best interests of the Company, and (iii) ensure that this
Agreement and all of the transactions contemplated hereby, including, without
limitation, the issuance of the Shares and the Warrant Shares, are exempt from
or otherwise not subject to the provisions of any “change-in-control”, “fair
price”, “interested stockholder”, “business combination”, “control share
acquisition”, “moratorium”, “vote sterilization”, “pre-acquisition notification”
or any other anti-takeover laws, and do not trigger any appraisal rights or
right to dissent and obtain the fair value of stockholders’ shares under the
CBCA.

 

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Section
2.05           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 the
Company 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
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder (the “Exchange Act”), including, without
limitation, (A) the filing by the Company with the Securities and Exchange
Commission (the “SEC”) of the Transaction 8-K (as defined in Section
4.08 below) and (B) the filing by the Company with the SEC of the Rule 14f-1
Information Statement (as defined in Section 4.07 below).

Section
2.06           Litigation.  No claim, action, suit or other proceeding is
pending or, to the Company’s knowledge, threatened against the Company or any
Boreta Party (i) which questions the validity of this Agreement or the right of
the Company or such Boreta Party 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 result in any material
adverse change in the Company or impair the ability of the Company or such
Boreta Party to perform its obligations hereunder.  Neither the Company nor any Boreta Party is a
party to or subject to any writ, order, decree, injunction or judgment of any
court, governmental agency or instrumentality, which would adversely affect the
Company or the performance of its obligations hereunder, and there is no
reasonable basis therefor or threat thereof.

Section
2.07           SEC Reports and
Financial Statements.

(a)                                  Except as set forth on Schedule 2.07, the Company has filed
on a timely basis with the United States Securities and Exchange Commission
(the “SEC”) all forms, reports, schedules, registration statements,
definitive proxy or information statements and other documents required to be
filed by the Company with the SEC since January 1, 2001 (as they have been
amended since the time of their filing, and including any documents filed as
exhibits thereto as well as any Form 8-Ks that have been filed with or
furnished to the SEC, collectively, the “SEC Reports”).  As of their respective dates, except as set
forth in Schedule 2.07, each SEC Report (including, without limitation, any
financial statements or schedules included or incorporated by reference
therein) complied in all material respects with the requirements of the
Exchange Act and the Securities Act that are or were applicable to such SEC
Report, and none of the SEC Reports contained when filed or contains any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements made therein, in light of
the circumstances under which they were made, not misleading.

 

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(b)                                 Neither the Company nor any Boreta Party has ever been the
subject of an investigation or action brought by the SEC nor been issued any
fine, penalty, punishment or other disciplinary action by the SEC.

(c)                                  The consolidated balance sheets of the Company as of December
31, 2003 and December 31, 2002 and the related consolidated statements of
operations, stockholders’ equity and cash flows for each of the two fiscal
years in the period ended December 31, 2003 (including the related notes and
schedules thereto) of the Company contained in the Company’s Annual Report on
Form 10-KSB for the fiscal year ended December 31, 2003, as
amended present fairly, in all material respects, the consolidated
financial position and the consolidated results of operations and cash flows of
the Company as of the dates or for the periods presented therein in accordance
with United States generally accepted accounting principles (“GAAP”)
applied on a consistent basis during the periods involved except as otherwise
noted therein.

(d)                                 Except as reflected, reserved against or otherwise disclosed
in the financial statements (including the related notes and schedules thereto)
of the Company included in the SEC Reports, the Company has no liabilities or
obligations (absolute, accrued, fixed, contingent or otherwise) required to be
set forth in a balance sheet of the Company under GAAP.

(e)                                  The Company’s unaudited balance sheet as of September 30,
2004, and the related statements of operations, stockholders’ equity and cash
flows for the nine  months then ended,
contained in the Company’s quarterly report on Form 10-QSB for the fiscal
quarter ended September 30, 2004 present fairly, in all material respects
(subject to normal year-end adjustments), the financial position and the
results of operations and cash flows of the Company as of the date or for the
periods presented therein in accordance with GAAP applied on a consistent basis
during the periods involved, except as otherwise noted therein (including the
related notes and schedules thereto).

(f)                                    Piercy, Bowler, Taylor & Kern, who have expressed their
opinion with respect to the financial statements of the Company included in the
SEC reports (including the related notes), are independent public or certified
public accountants as required by the Securities Act and the Exchange Act.

Section
2.08           Supplied Information None of the information supplied by the
Company specifically for inclusion or incorporation by reference in (i) the
Transaction 8-K, (ii) the Rule 14f-1 Information Statement or (iii) any
other document filed or to be filed with the SEC in connection with the
transactions contemplated by this Agreement (the “Other Filings”) will,
at the respective times filed with the SEC and, in addition, in the case of the
Rule 14f-1 Information Statement, at the date it or any amendment or supplement
thereto is mailed to stockholders of the Company, contain any untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements made therein, in light of
the circumstances under which they were made, not misleading, provided that no
representation is made by the Company with respect to information furnished by
Purchaser in

 

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writing specifically for
inclusion therein.  The Transaction 8-K,
the Rule 14f-1 Information Statement and the Other Filings made by the Company
will, at the respective times filed with the SEC and mailed to the stockholders
(as applicable), comply as to form in all material respects with the provisions
of the Exchange Act, except that no representation is made by the Company with
respect to statements made therein based on information supplied by Purchaser
in writing specifically for inclusion in the Transaction 8-K, the Rule 14f-1
Information Statement or the Other Filings.

Section
2.09           Securities Laws Matters.

(a)                                  The Company is in compliance with the rules and regulations
promulgated under the Sarbanes-Oxley Act of 2002 and the rules and regulations
adopted by the SEC in connection therewith (collectively, the “Sarbanes-Oxley
Act”) and will remain in compliance with the Sarbanes-Oxley Act at all
times through the Closing Date.  The
Company maintains adequate internal controls over financial reporting (as such
term is defined in Section 404 of the Sarbanes-Oxley Act) which provide
assurance that (i) transactions are executed with management’s authorization,
(ii) transactions are recorded as necessary to permit the preparation of the
financial statements of the Company and to maintain accountability for the
Company’s assets, (iii) access to the Company’s assets is permitted only in
accordance with management’s authorization, (iv) the reporting of the Company’s
assets is compared with its existing assets at regular intervals, and (v)
accounts, notes and other receivables and inventory are recorded accurately,
and proper and adequate procedures are implemented to effect the collection
thereof on a current and timely basis. 
The Company’s principal executive officer and its principal financial
officer have disclosed, based on their most recent evaluation, to the Company’s
auditors and the Board (i) all significant deficiencies in the design or
operation of internal controls over financial reporting which could adversely
affect the Company’s ability to record, process, summarize and report financial
data and have identified to the Company’s auditors any material weaknesses in
internal controls and (ii) any fraud, whether or not material, that
involves management or other employees who have a significant role in the
Company’s internal controls over financial reporting.  The Company has heretofore made available to
Purchaser copies of, all written descriptions of, and all policies, manuals and
other documents promulgating, such internal controls over financial reporting.

(b)                                 The Company has established and maintains disclosure controls
and procedures (as such term is defined in Rule 13a-14 or 15a-14 under the
Exchange Act and Section 404 of the Sarbanes-Oxley Act); such disclosure
controls and procedures are designed to ensure that material information
relating to the Company is made known to the Company’s principal executive
officer and its principal financial officer by others within the Company; and,
to the Company’s knowledge, such disclosure controls and procedures are
effective in timely alerting the Company’s principal executive officer and its
principal financial officer to material information required to be included in
the Company’s periodic reports required under the Exchange Act.  The Company has heretofore made available to 

 

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                                                Purchaser copies of, all written descriptions of, and all
policies, manuals and other documents promulgating, such disclosure controls
and procedures.

(c)                                  With respect to each annual report on Form 10-KSB, each quarterly
report on Form 10-QSB and each amendment of any such report included in
the SEC Reports filed since July 30, 2002, the chief executive officer and
chief financial officer of the Company have made all certifications required by
the Sarbanes-Oxley Act and any related rules and regulations promulgated by the
SEC, and the statements contained in any such certifications are complete and
correct.

Section
2.10           Business of the Company.  Since August 31, 2002, the Company has not
conducted any activities other than the filing of SEC Reports, the issuance of
stock options, warrants and Common Stock set forth on Schedule 2.10 hereof and
the negotiation and execution of this Agreement and the consummation of the
transactions contemplated hereby and other customary ministerial matters
incidental to the Company’s existence and ongoing operations.

Section
2.11           Taxes.  The Company has timely filed all tax returns,
whether Federal, state, local or foreign, required to be filed by it (giving
effect to any valid extensions by the Company) and has paid all taxes shown to
be due by such returns, as well as all other taxes, assessments and
governmental charges which have become due or payable.  All such returns, as filed, are true, correct
and complete in all material respects. 
The Company has established adequate reserves, as reflected on its
balance sheet, for all taxes accrued but not yet payable.  The Company has not executed or filed with the
Internal Revenue Service or any other governmental authority or agency any agreement
or other document extending, or having the effect of extending, the period for
assessment or calculation of any taxes. 
No federal, state, or local income tax returns of the Company have been
audited by any governmental authority or agency, and no controversy or
assessment with respect to taxes of any type is pending or, to the best of the
Company’s knowledge, threatened.  There
are no tax liens (other than inchoate liens for accrued taxes not currently due
or payable) imposed by any governmental authority or agency on any of the
assets of the Company.  All material tax
elections of any type which the Company has made as of the date hereof are set
forth in the Company’s financial statements. 
The Company has no obligations under any written tax sharing
agreement.  The Company (A) has not been
a member of an affiliated group filing a consolidated federal income tax return
(other than a group the common parent of which was the Company)  within the meaning of Section 1502 of the
Code, or (B) has any liability for the taxes of any other person or entity
(other than the Company) under Treasury Regulation Section 1.1502-6 (or any
similar provision of state, local, or foreign law), as a transferee or
successor, by contract, or otherwise. The Company will not be required to
include any item of income in, or exclude any item of deduction from, taxable
income for any taxable period (or portion thereof) ending after the Closing
Date as a result of: (i) a change in method of accounting for a taxable period
ended or ending on or prior to the Closing Date; (ii) a “closing agreement” as
described in Section 7121 of the Code (or any corresponding or similar
provision of state, local or foreign income Tax law) executed on or prior to
the Closing Date; (iii) an intercompany transaction or excess loss account
described in Treasury Regulations under Section 1502 of the Code (or any
corresponding or similar provision of state, local or foreign income tax law);
(iv) an installment sale or open transaction disposition made on or prior to
the Closing Date; or (v) with respect to any prepaid amount received on or
prior to the Closing Date.  The Company
has not been a party to a transaction (including a transaction involving the 

 

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distribution of the stock of
the Company by another entity or person) that was purported or intended to be
governed in whole or in part by Section 355 or Section 361 of the Code.  The Company has not filed a consent under
Section 341(f) of the Code concerning collapsible corporations.  The Company is not a party to any agreement,
contract, arrangement or plan that has resulted or could result, separately or
in the aggregate, in the payment of (i) any “excess parachute payment” within
the meaning of Section 280G of the Code (or any corresponding provision of
state, local or foreign tax law) and (ii) any amount that will not be fully
deductible as a result of Section 162(m) of the Code (or any corresponding
provision of state, local or foreign tax law). 
The Company has not been a United States real property holding
corporation within the meaning of Section 897(c)(2) of the Code during the
applicable period specified in Section 
897(c)(1)(A)(ii) of the Code.

Section
2.12           Property and Assets.  The Company has no assets other than cash and
cash equivalents.  The Company does not
own or lease any real property.

Section
2.13           Intellectual Property.  The Company does not own or use any patents,
trademarks, service marks, trade names, domain names and copyrights, domestic
and foreign (the “Intellectual Property Rights”).  The Company is not infringing on any person’s
Intellectual Property Rights.

Section
2.14           Insurance.  Schedule 2.14 lists all insurance policies
maintained by the Company.

Section
2.15           Material Contracts and
Obligations.  Schedule 2.15 sets
forth a list of all agreements or commitments of any nature to which the
Company is a party or by which it is bound, whether written or verbal,
including, without limitation, (a) each agreement or lease which requires
future payments or guarantees by the Company, (b) all employment and consulting
agreements, employee benefit, bonus, pension, profit-sharing, stock
option, stock purchase

Section
2.16           and similar plans and
arrangements, (c) any agreement with any stockholder, officer or director of
the Company or any affiliate of such persons, (d) any agreement relating to the
issuance or purchase of capital stock of the Company, (e) all loans,
guarantees, pledges and other agreements of the Company relating to indebtedness
for borrowed money, (f) all non-competition and similar agreements entered into
by the Company, and (g) any agreement pursuant to which the Company must
provide indemnification to a third-party. 
Each of such agreements is valid and binding on and enforceable against
the Company and, to the knowledge of the Company, each other party thereto and
is in full force and effect.  The Company
is not in breach of or noncompliance with any term of any such agreement, and
no event has occurred which, with the passage of time or giving of notice (or
both), would constitute a breach under any such agreement.  To the Company’s and each Boreta Party’s
knowledge, no third party to such agreements is in breach of or default under
any of the provisions thereof.

Section
2.17           Compliance.  The Company is, in all material respects, in
compliance with all applicable domestic and foreign statutes, laws,
regulations, ordinances, permits, rules, writs, judgments, orders, decrees and
arbitration awards (including, without limitation, environmental laws, labor
laws and the Foreign Corrupt Practices Act). 
There is no term or provision of any 

 

10

mortgage, indenture,
contract, agreement or instrument to which the Company is a party or by which
it is bound, or of any provision of any foreign, Federal or state judgment,
decree, order, statute, rule or regulation applicable to or binding upon the
Company, which restricts in any respect the conduct of its business, or that in
any manner relates to its policies, affairs or management, or that otherwise
materially adversely affects the Company. 
The Company has not, during the past two years, received any notice
relating to any violation or potential violation of any applicable statutes,
laws, regulations, ordinances, permits, rules, writs, judgments, orders,
decrees and arbitration awards.

Section
2.18           Employees.  The Company has no employees who receive a
salary and no employee of or consultant to the Company is a party to a written
employment or consulting agreement or arrangement.  None of the employees of the Company are or
ever have been represented by any labor union, the Company has never had any
collective bargaining relationship or duty to bargain with any “Labor
Organization” (as such term is defined in Section 2(5) of the National Labor
Relations Act, as amended), and the Company has never recognized any labor
organization as the collective bargaining representative of any of its
employees.  There is no contract,
agreement, plan or arrangement (oral or written) covering any employee of the
Company with “change of control”, “stay-put”, severance or similar provisions.

Section
2.19           ERISA.  Except as disclosed in Schedule 2.18, the
Company does not maintain or contribute to, or have any obligations to
contribute to, any employee pension plans, as defined in Section 3(2) of the
Employer Retirement Income Securities Act of 1974, as amended (“ERISA”),
or any employer welfare plans, as defined in Section 3(1) of ERISA, or any
equity-based compensation plans.  All
such employee benefit plans are in compliance with the applicable provisions of
ERISA, the Internal Revenue Code of 1986, as amended, and all other applicable
rules, regulations and administrative pronouncements.  The Company has not contributed to a
multi-employer pension plan or a single-employer plan as described in Title IV
of ERISA.

Section
2.20           Absence of Undisclosed
Liabilities.  The Company has no
liabilities or obligations (absolute, fixed, contingent or otherwise) other
than those liabilities and obligations set forth on the Company’s consolidated
balance sheet in its SEC Reports.

Section
2.21           Books and Records.  The minute books of the Company contain
complete and accurate records of all meetings and other corporate actions of the
stockholders and board of directors (including committees) of the Company.

Section
2.22           Brokers.  Neither the Company, nor any Principal
Stockholder has any contract, arrangement or understanding with any broker,
investment banker, financial advisor, finder, consultant or similar agent
relating to the payment of commissions, fees or other compensation in
connection with the transactions contemplated by this Agreement.

Section
2.23           Intentionally Omitted.

Section
2.24           Affiliate Transactions.  Schedule 2.23 sets forth each transaction by
and between the Company and any Affiliated Entity (as defined below) between
January 1, 1998 and December 31, 2000 that was material to the Company at the
time such transaction was 

11

consummated, and each
transaction by and between the Company and any Affiliated Entity since January
1, 2001, regardless of materiality to the Company (the “Affiliated
Transactions”). All Affiliated Transactions listed on Schedule 2.23 (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.  An “Affiliated Entity” shall include (i) any
individual or entity that controls, is controlled by or is under common control
with the Company, including but not limited to the Boreta Parties, and (ii) any
entity that is owned, operated or controlled by any Boreta Party, including but
not limited to All-American Sportpark, Inc. (“AASP”).

Section
2.25           Trading in Stock.  Except as otherwise set forth on Schedule
2.24, since March 31, 2004, no Principal 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.

Section
2.26           Disclosures.  No information or statements of the Company
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 Company 
as of the date hereof and as of the Closing Date as follows:

Section
3.01           Investment Intent.  Purchaser is acquiring the Shares and
Warrants for its own account for investment and not with a view to, or for sale
in connection with, any distribution thereof (other than to its members and in
accordance with applicable law). 
Purchaser is able to bear the economic risk of this investment indefinitely
and may not sell or otherwise transfer the Shares or Warrants unless such
Shares or Warrants are registered pursuant to the Securities Act and any
applicable state securities or blue sky laws or an exemption from such
registration is available.  Purchaser
understands that certificates representing the Shares shall bear restrictive
legends to reflect the foregoing.

Section
3.02           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.

12

Section
3.03           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.

Section
3.04           Experience.  The Company has made available to Purchaser
any and all information requested by Purchaser and has answered to Purchaser’s
satisfaction all inquiries made by Purchaser. 
However, neither the foregoing nor any other due diligence investigation
conducted by Purchaser or on its behalf shall limit, modify or affect the
representations and warranties of the Company and the Principal Stockholders in
Article II of this Agreement or the right of Purchaser to rely thereon.

Section
3.05           Accredited Investor.  Purchaser is an “accredited investor” as
defined in Rule 501 of Regulation D under the Securities Act.  Purchaser is capable of evaluating the merits
and risks of an investment in the Shares and is financially capable of bearing
a total loss of the investment made pursuant to this Agreement.

Section
3.06           Reliance on Exemptions.  Purchaser understands that the Shares are
being offered and sold and the Warrants are being issued in reliance upon
specific exemptions from the registration requirements of Federal and state
securities laws and that the Company is relying upon the truth and accuracy of
the representations and warranties of Purchaser set forth herein in order to
determine the availability of such exemptions and the eligibility of Purchaser
to acquire the Shares and receive the Warrants.

Section
3.07           Information Supplied.  None of the information supplied by Purchaser
in writing specifically for inclusion or incorporation by reference in (i) the
Transaction 8-K, (ii) the Rule 14f-1 Information Statement or (iii) any
Other Filings will, at the respective times filed with the SEC and, in
addition, in the case of the Rule 14f-1 Information Statement, at the date it
or any amendment or supplement thereto is mailed to stockholders of the
Company, contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the
statements made therein, in light of the circumstances under which they were
made, not misleading.

 

ARTICLE IV

 

Covenants

Section
4.01           Conduct of Business of
the Company.  Except as contemplated
by this Agreement or with the prior written consent of Purchaser, during the
period from the date of this Agreement to the earlier of (i) such time as this
Agreement is terminated in accordance with Section 7.01 or (ii) the Closing
Date, the Company shall (a) not engage in any business activities or operations,
(b) use its reasonable efforts to preserve intact its organization and (c) not
take any action which could adversely affect the ability of the parties to
consummate the transactions contemplated by this Agreement.  Without limiting the generality of the
foregoing and except as 

13

otherwise contemplated by
this Agreement, the Company will not, without the prior written consent of
Purchaser:

(a)                                  adopt any amendment to its certificate of incorporation or
bylaws;

(b)                                 (i) issue, reissue, sell, or convey, or authorize the
issuance, reissuance, sale or conveyance of, (A) shares of capital stock (or
other ownership interests) of any class (including shares held in treasury), or
securities convertible or exchangeable into capital stock (or other ownership
interests) of any class, or any rights, warrants or options to acquire any such
convertible or exchangeable securities or capital stock (or other ownership
interests), or any Voting Debt; or (ii) make any other changes in the capital
structure of the Company; provided, however, that (y) the Company
may issue three-year warrants to purchase an aggregate of 500,000 shares of
Common Stock with an exercise price of $10.00 per share to certain of its
current stockholders in for a purchase price of $.02 per warrant and (z) the
Company may issue up to 10,000 shares of Common Stock in satisfaction of
certain outstanding indebtedness;

(c)                                  declare, set aside or pay any dividend or other actual,
constructive or deemed distribution (whether in cash, securities or property or
any combination thereof) in respect of any class or series of its capital stock
or otherwise make any payments to stockholders in their capacity as
stockholders;

(d)                                 split, combine, subdivide, reclassify or redeem, purchase or
otherwise acquire, or propose to redeem or purchase or otherwise acquire,
directly or indirectly, any shares of its capital stock, or any of its other
securities;

(e)                                  increase the compensation or fringe benefits payable or to
become payable to any of its present or former directors, officers, consultants
or employees, or pay or award any benefit not required by any existing plan or
arrangement (including, without limitation, the granting of stock options,
stock appreciation rights, phantom stock, shares of restricted stock or
performance units) or grant any severance or termination pay to, or enter into
any employment, severance or other compensation agreement with, any director,
officer, consultant or employee of the Company or establish, adopt, enter into,
amend or waive any performance or vesting criteria or accelerate vesting or
exercisability under any collective bargaining, bonus profit sharing, thrift,
compensation, stock option, restricted stock, pension, retirement, savings,
welfare, deferred compensation, employment, termination, severance or other
employee benefit plan, agreement, trust, fund, policy or arrangement for the
benefit or welfare of any present or former director, officer, consultant or
employee (any of the foregoing being an “Employee Benefit Arrangement”);

(f)                                    acquire, mortgage, encumber, license, sell, lease or dispose
of any assets or securities, or enter into any commitment to do any of the
foregoing or enter into any material commitment or transaction outside the ordinary
course of business;

14

(g)                                 (i) incur, assume, guarantee or pre-pay any indebtedness,
(ii) assume, guarantee, endorse or otherwise become liable or responsible
(whether directly, contingently or otherwise) for the obligations of any other
person, (iii) pay, discharge or satisfy any claims, liabilities or obligations
(absolute, accrued, contingent or otherwise), (iv) make any loans, advances or
capital contributions to, or investments in, any other person or (v) authorize
or make capital expenditures;

(h)                                 settle or compromise any suit or claim or threatened suit or
claim;

(i)                                     authorize, recommend, propose or announce an intention to
adopt a plan of complete or partial liquidation or dissolution of the Company;

(j)                                     make any tax election not required by law or settle or
compromise any material tax liability;

(k)                                  (i) waive any rights of substantial value, (ii) cancel or
forgive any indebtedness owed to the Company or (iii) make any payment, direct
or indirect, of any material liability of the Company before the same comes due
in accordance with its terms;

(l)                                     enter into or amend any contract or agreement;

(m)                               except as may be required as a result of a change in law or
under GAAP, make any change in its methods, principles and practices of
accounting, including tax accounting policies and procedures;

(n)                                 acquire (by merger, consolidation or acquisition of stock or
assets) any corporation, partnership or other business organization or division
thereof or any assets, except with respect to the transactions contemplated by
the Concurrent Contribution Agreement;

(o)                                 enter into any joint venture, partnership or similar
agreement;

(p)                                 make any application or filing with any governmental agency
or authority; or

(q)                                 agree in writing or otherwise to take any of the foregoing
actions or any action which could cause any representation or warranty in this
Agreement to be or become untrue or incorrect or could cause any condition to
the consummation of the transactions contemplated hereby or thereby not to be
satisfied.

Section
4.02           Access to Information.  From the date hereof until the Closing, the
Company shall, and shall cause its officers, directors, employees, counsel,
advisors, accountants, financial advisors, representatives and affiliates
(collectively, the “Company Representatives”) to provide Purchaser its
officers, employees, counsel, advisors, accountants, financial advisors,
financial sources, affiliates and representatives (collectively, “Purchaser
Representatives”) full and complete access during normal business hours and
upon reasonable notice, to the offices and other facilities and to the books
and records of the Company, as will permit Purchaser to make inspections of
such as it may reasonably require, and will cause the Company Representatives
to 

15

furnish Purchaser and
Purchaser Representatives to the extent available with such financial and
operating data and other information with respect to the business and operations
of the Company as Purchaser may from time to time reasonably request.

Section
4.03           Further Assurances;
Reasonable Best Efforts.  Subject to
the terms and conditions herein provided and to applicable legal requirements,
each of the Company, the Principal 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
4.04           Filings; Consents.  Upon the terms and conditions hereof, each of
the parties hereto shall use its reasonable best efforts to obtain as promptly
as practicable all consents of any governmental agency or authority or any
other person required in connection with, and waivers of any breaches or
violations of any contracts, permits, licenses or other agreements that may be
caused by, the consummation of the transactions contemplated by this
Agreement.  Each of the Company, the
Boreta Parties and Purchaser shall keep the others informed of any material
communication, and provide to the other copies of all correspondence between it
(or its advisors) and any third party (including the SEC) relating to this
Agreement, the Transaction 8-K and the Rule 14f-1 Information Statement and
shall permit the other to review any material communication to be given by it
to, and shall consult with each other in advance of any telephone calls,
meetings or conferences with, any governmental agency or authority (including
the SEC) and, to the extent permitted, give the other party the opportunity to
attend and participate in such telephone calls, meetings and conferences.

Section
4.05           Public Announcements.  The initial press release announcing the
terms of this Agreement shall be a joint press release.  Thereafter, the Company and each Principal
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 Company
for review a copy of any press release or public statement it intends to issue
or make with respect to the proposed transactions.

Section
4.06           No Solicitation.

(a)                                  The Company shall, and shall cause the Company
Representatives to, immediately cease and cause to be terminated any existing
activities, discussions or negotiations with any parties conducted heretofore with
respect to any Acquisition Proposal (as defined below).  The Company also will promptly request each
person that has heretofore executed a confidentiality agreement in connection
with its consideration of an Acquisition Proposal to return or destroy all
information heretofore furnished to such person by the Company or on the
Company’s behalf.

16

(b)                                 The Company agrees that, prior to the Closing, it shall not,
directly or indirectly, nor shall it authorize or permit any Company
Representatives to, directly or indirectly, (i) initiate, solicit, encourage
(including by way of furnishing non-public information or assistance), or take
any other action to facilitate the making of any proposal or offer concerning an
Acquisition Proposal, (ii) engage in any discussions or negotiations
concerning, or provide any information or data to any person relating to, an
Acquisition Proposal, whether made before or after the date of this Agreement,
or (iii) approve, endorse or recommend any Acquisition Proposal unless, after
the date hereof, (A) the Company receives a bona fide unsolicited written
proposal that constitutes an Acquisition Proposal (as defined below), (B) the
Board in good faith reasonably determines, after consultation with outside
legal counsel and its independent financial advisors, that such Acquisition
Proposal is likely to constitute a Superior Acquisition Proposal, (C) the Board
determines in good faith (after having consulted with outside legal counsel) that
such action is necessary in order for its directors to comply with their
fiduciary duties under applicable law, (D) the Company (x) shall have provided
at least 48 hours’ advance written notice to Purchaser that it intends to take
such action, together with the identity of the person making the Acquisition
Proposal and the terms and conditions of such proposal and (y) shall have
received from such person an executed confidentiality agreement containing
terms no less stringent than those terms contained in any confidentiality
agreement executed between the Company and Purchaser; provided, that
such confidentiality agreement shall not contain any exclusivity provision or
other term that would restrict, in any manner, the Company’s ability to
consummate the transactions contemplated by this Agreement, (E) Purchaser shall
have received a copy of all nonpublic information being furnished to such
person, and (F) neither the Company nor any of the Company Representatives
shall have violated any of the provisions set forth in this Section 4.06; provided,
however, that nothing contained herein shall prevent the Company from
complying with Rule 14e-2 and Rule 14d-9 promulgated under the Exchange Act
with regard to an Acquisition Proposal. 
The Company shall promptly notify Purchaser of any amendments or
revisions to such Acquisition Proposal. 
Any violation of the restrictions set forth in this Section 4.06 by any
Company Representative shall be deemed to be a breach of this Section 4.06 by
the Company.  In addition, the Company
shall not terminate, amend, modify or waive any provision of any
confidentiality or standstill agreement to which it is a party and shall
enforce, to the fullest extent permitted under applicable law, the provisions
of any such agreement, including, but not limited to, by obtaining injunctions
to prevent any breaches of such agreements and to enforce specifically the
terms and provisions thereof in any court having jurisdiction.

(c)                                  The Board (or any committee thereof) shall not (i) approve or
recommend, or propose publicly to approve or recommend, any Acquisition
Proposal, or (ii) cause the Company to enter into or approve any letter of
intent, agreement in principle, acquisition agreement or similar agreement
relating to any Acquisition Proposal (an “Acquisition Agreement”) unless
(A) the Board has received an Acquisition Proposal which it has reasonably
determined in good faith (after 

17

                                                having consulted with outside legal counsel and its independent
financial advisors) is a Superior Acquisition Proposal and it is necessary for
the Board to terminate this Agreement in order for its directors to comply with
their fiduciary duties under applicable law, (B) the Company has notified
Purchaser in writing of the terms of the Superior Acquisition Proposal and the
determinations described in clause (A) above and of its intent to take such
action and has taken into account any revised proposal made by Purchaser to the
Company within five (5) business days after its receipt of such notice and
again has reasonably determined in good faith after consultation with its
outside legal counsel and independent financial advisors that such Acquisition
Proposal (as the same may have been modified or amended, but provided that
Purchaser shall have received the requisite notice of any such modification or
amendment) remains a Superior Acquisition Proposal and the Board has again made
the determinations referred to in clause (A) above (although no additional time
period shall be required following such determinations, unless Purchaser shall
have, following notice of the determinations referred to in clause (A) above,
proposed to increase the Purchase Price, or otherwise offered to amend the
terms of the transaction contemplated hereby to make them more favorable to the
Company, in which case the Company shall again notify Purchaser in writing of
the determinations described in clause (A) above), and (C) the Company is in
compliance with this Section 4.06.

(d)                                 The term “Acquisition Proposal” shall mean any offer or
proposal (whether or not in writing and whether or not delivered to the Company’s
stockholders generally) from any person to acquire, in a single transaction or
series of transactions, by merger, tender offer, stock acquisition,
consolidation, liquidation, business combination or otherwise, at least 10% of
any class of equity securities of the Company, other than the transactions
contemplated by this Agreement.  The term
“Superior Acquisition Proposal” shall mean any bona fide unsolicited written
Acquisition Proposal (x) on terms superior in value from a financial point of
view to the Company and its stockholders than the transactions contemplated by
this Agreement, taking into account all the terms and conditions of such
proposal and this Agreement (including any proposal by Purchaser to amend the
terms of the transactions contemplated by this Agreement) and (y) reasonably
capable of being completed, taking into account the identity of the person or
persons making the proposal and all financial, regulatory, legal and other
aspects of such proposal.

Section 4.07           Appointment of
Directors.  Upon the
execution of this Agreement, Purchaser shall designate certain individuals to
be appointed at the Closing to serve as directors on the Board.  Immediately prior to the Closing, if
necessary to effect the Appointment (defined below), the Company shall take any
and all actions necessary in accordance with the Company’s charter and bylaws
to increase the number of directors constituting the Board to such number as is
necessary to effect the Appointment of Purchaser’s designees.  At the Closing, the Company shall secure the
resignation of each of Vaso Boreta, William Kilmer and Robert R. Rosburg
effective as of the Closing and, concurrently therewith, the Company shall take
all actions necessary to cause each of Purchaser’s designees to be appointed to
the Board (the “Appointment”). 
Furthermore, at the Closing, the Company shall secure the resignation of
Ronald S. Boreta, which resignation shall be effective immediately after the
effectiveness of the 

18

Appointment as set forth
herein.  In furtherance thereof, as soon
as practicable after the execution of this Agreement, the Company shall prepare
and file with the SEC the information required by Section 14(f) of the Exchange
Act and Rule 14f-1 promulgated thereunder (the “Rule 14f-1 Information
Statement”).  Purchaser shall
promptly supply the Company any information with respect to itself and its
nominees, officers, directors and affiliates required by Section 14(f) and Rule
14f-1. If at any time following the filing of the Rule 14f-1 Information
Statement with the SEC any event shall occur that should be set forth in an
amendment of or a supplement to the Rule 14f-1 Information Statement, the
Company shall prepare and file with the SEC such amendment or supplement as
soon thereafter as is reasonably practicable. 
Purchaser and the Company shall cooperate with each other in the
preparation of the Rule 14f-1 Information Statement, and the Company shall
notify Purchaser of the receipt of any comments of the SEC with respect to the
Rule 14f-1 Information Statement and of any requests by the SEC for any
amendment or supplement thereto or for additional information, and promptly
shall provide to Purchaser copies of all correspondence between the Company or
any representative of the Company and the SEC with respect to the Rule 14f-1
Information Statement.  The Company shall
give Purchaser and its counsel the opportunity to review the Rule 14f-1
Information Statement and all responses to requests for additional information
by, and replies to comments of, the SEC before their being filed with, or sent
to, the SEC.  Each of the Company and
Purchaser shall use its best efforts, after consultation with the other parties
hereto, to respond promptly to all such comments of and requests by the SEC.  The
Company shall mail the Rule 14f-1 Information Statement to its stockholders as
promptly as practicable after the filing thereof with the SEC pursuant to the
Exchange Act.  The Appointment shall
become effective at the later of (i) 10 days following the mailing of the Rule
14f-1 Information Statement to the Company’s stockholders (as required by Rule
14f-1 under the Exchange Act) and (ii) the Closing.

Section
4.08           Preparation of the
Transaction 8-K.

(a)                                  On the Closing Date, the Company shall file with the SEC a
Current Report on Form 8-K pursuant to the Exchange Act (together with any
amendments thereof or supplements thereto, the “Transaction 8-K”).

(b)                                 If at any time following the filing of the Transaction 8-K
with the SEC any event shall occur that should be set forth in an amendment of
or a supplement to the Transaction 8-K, the Company shall prepare and file with
the SEC such amendment or supplement as soon thereafter as is reasonably
practicable.  Purchaser and the Company
shall cooperate with each other in the preparation of the Transaction 8-K, and
the Company shall notify Purchaser of the receipt of any comments of the SEC
with respect to the Transaction 8-K and of any requests by the SEC for any
amendment or supplement thereto or for additional information, and promptly
shall provide to Purchaser copies of all correspondence between the Company or
any representative of the Company and the SEC with respect to the Transaction
8-K.  The Company shall give Purchaser
and its counsel the opportunity to review the Transaction 8-K and all responses
to requests for additional information by, and replies to comments of, the SEC
before their being filed with, or sent to, the SEC.  Each of the Company and Purchaser shall use
its best efforts, after consultation with the other parties hereto, to respond
promptly to all such comments of and requests by the SEC.

19

(c)                                  If at any time after the Closing any further action is
necessary or reasonably desirable to carry out the purposes of this Agreement,
including the execution of additional instruments, the Principal Stockholders
and the proper officers and directors of each party to this Agreement shall
take all such necessary or desirable action.

Section
4.09           Notification of Certain
Matters.  Purchaser, on the one hand
and the Company and the Principal 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 the
Company 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.

Section
4.10           State Takeover Laws.  If any “fair price,” “moratorium,” “control
share acquisition,” “interested stockholder” or other similar anti-takeover
statute or regulation (each a “Takeover Statute”) is or may become
applicable to the transactions contemplated by this Agreement, each of
Purchaser and the Company shall grant such approvals and take such actions as
are necessary so that such transactions may be consummated as promptly as
practicable on the terms contemplated by this Agreement and otherwise act to
eliminate the effects of such Takeover Statutes.  Without limiting the terms of Section 4.06,
the Company covenants and agrees that it will not take any action that would
make any Takeover Statute inapplicable to an Acquisition Proposal (other than
the transactions contemplated by this Agreement).

Section
4.11           Additional Reports;
Securities Law Matters.  Prior to the
Closing, the Company shall timely file with the SEC all reports, proxy
statements and other documents required under the Securities Act and the
Exchange Act, and furnish to Purchaser copies of such documents (including any
exhibits, schedules or correspondence) which it files with or furnishes to the
SEC on or after the date of this Agreement, and the Company represents and
warrants that as of the respective dates thereof, such documents (i) will not
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading and
(ii) will comply in all material respects with the requirements of the
Securities Act and the Exchange Act.  Any
financial statements included in such reports (including any related notes and
schedules) will fairly present, in all material respects, the financial
position of the Company as of the dates thereof and its results of operations
and changes in financial position or other information included therein for the
periods or as of the dates then ended (subject, where 

20

appropriate, to normal
year-end adjustments), in each case in accordance with GAAP consistently
applied during the periods involved (except as otherwise disclosed in the notes
thereto).  At all times prior to the
Closing, the Company shall, and the Boreta Parties shall cause the Company to,
comply with the provisions of the Sarbanes-Oxley Act.

Section
4.12           Principal Stockholder
Lock-Up.  Except as otherwise set
forth herein, during the period from the date hereof through the earlier of (x)
the termination of this Agreement or (y) the Closing Date, no Principal
Stockholder shall, without the prior written consent of Purchaser, directly or
indirectly, (i) offer, pledge, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any
option, right or warrant for the sale of, or otherwise dispose of or transfer
any shares of Common Stock or any securities convertible into or exchangeable
or exercisable for Common Stock, whether now owned or hereafter acquired by
such Principal Stockholder or with respect to which such Principal Stockholder
has or hereafter acquires the power of disposition or (ii) enter into any swap
or any other agreement or any transaction that transfers, in whole or in part,
directly or indirectly, the economic consequence of ownership of the Common
Stock, whether any such swap or transaction is to be settled by delivery of
Common Stock or other securities, in cash or otherwise; provided, however,
that each Principal Stockholder may transfer its securities of the Company to
Purchaser in connection with the Principal Stockholder Sale or to (a) in the
event of a Principal Stockholder that is an individual, his spouse, parent,
sibling or lineal descendants, or any trust for the benefit of such person or
(any distributee, legatee or devisee of his, and (b) in the event of a
Principal Stockholder that is an entity, to any affiliate thereof, if, in the
case of both (a) and (b) such transferee agrees in writing to be bound by the
terms of this agreement to the same extent as the transferring Principal
Stockholder.

Section
4.13           Observer at Board
Meetings.  From the date hereof
through the earlier of (i) the termination of this Agreement, and (ii) the date
upon which all of the individuals specified in Schedule 4.13 are appointed to
the Board, Purchaser shall be entitled to designate an observer who shall be
permitted (but not required) to attend meetings of the Board and any meetings
of any committees thereof and shall be entitled to receive all notices, reports
and other materials sent to directors (including committee members) of the
Company.  Such observer shall not have
any of the duties, responsibilities or liabilities of a director, shall not be
permitted to vote on any matter and shall not participate in any action of the
Board or any such committees.  The
Company shall reimburse any such observer for all reasonable out-of-pocket
expenses incurred by such observer in connection with attendance at meetings of
the Board or meetings of any committees thereof.

Section
4.14           Business Opportunities.  For a period of ten (10) years following the
Closing Date, Robert F.X. Sillerman shall not, directly or indirectly,
purchase, invest or otherwise participate in any significant manner, in
investments, businesses and commercial operations in the media or entertainment
sectors, unless such purchase, investment or participation is conducted by and
through the Company or its subsidiaries; provided, that: (i) Mr. Sillerman may
make investments in securities of any Person listed on any national securities
exchange or any national market system; provided that Mr. Sillerman’s ownership
does not exceed five percent of the outstanding voting power of such Person;
and (ii) this Section 4.14 shall not apply to the activities of Mr. Sillerman
as set forth on Schedule 4.14 hereto. 
Notwithstanding the foregoing, the obligations pursuant to this Section
4.14 shall terminate 

21

immediately upon: (i) a
change in control of the Company (as such concept is defined in Mr. Sillerman’s
employment agreement); (ii) the later of (A) the termination of Mr. Sillerman’s
employment with the Company following the expiration of the initial term of Mr.
Sillerman’s employment agreement with the Company, if the Company has elected
as of such time not to renew such employment agreement on reasonable terms and
(B) the date that is five (5) years following the Closing Date; and (iii) the
later of (A) the termination of Mr. Sillerman’s employment with the Company
without cause or upon a constructive termination, in each case as such concepts
are defined in Mr. Sillerman’s employment agreement, and (B) the date that is
three (3) years following the Closing Date.

Section
4.15           Intentionally Omitted.

Section
4.16           Corporate Governance.  From the date hereof through the earlier of
(x) the termination of this Agreement or (y) the Closing, the Company shall, at
Purchaser’s request, agree to cause its executive officers and directors to
meet with Purchaser’s accountants and other representatives for the purpose of
considering the adoption by the Company of additional corporate governance
initiatives suggested by Purchaser, including, without limitation, additional
internal controls, procedures and approval processes, codes of conduct and
ethics and other corporate governance initiatives.

Section
4.17           Pledge Agreements.  Upon the execution of this Agreement, certain
of the Boreta Parties shall execute and deliver to Purchaser a pledge
agreement, in the form attached hereto as Exhibit B, and deliver to
Purchaser stock certificates representing 10% of the issued and outstanding
shares of Common Stock or other securities of the Company owned by him or it,
together with stock powers duly executed in blank, in form and substance
reasonably satisfactory to Purchaser.  At
the Closing, each of the Boreta Parties shall execute and deliver to Purchaser
a pledge agreement, in the form attached hereto as Exhibit C, and
deliver to Purchaser stock certificates representing 50% of the issued and
outstanding shares of Common Stock or other securities of the Company owned by
him or it, together with stock powers duly executed in blank, in form and
substance reasonably satisfactory to Purchaser.

 

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 Company and the Principal Stockholders.  (i) All of the representations and
warranties made by the Company and the Principal Stockholders in this Agreement
to which any of them 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 

22

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) the Company and the Principal Stockholders shall have performed and
complied with all agreements and covenants required by this Agreement to be
performed by it or them on or prior to the Closing Date; and (iii) with respect
to clauses (i) and (ii), at the Closing there shall be delivered to Purchaser a
certificate signed by the chief executive officer of the Company, and the
managing member of each of BEL and ASI to the foregoing effect.  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 Company and the Principal
Stockholders in this Agreement to which any of them is a party 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           Resolutions.  The Company shall have delivered to Purchaser
resolutions of the Board, certified by the Secretary of the Company as of the
Closing Date, which resolutions unanimously have been duly adopted and are in
full force and effect, authorizing and approving this Agreement and the
consummation of the transactions contemplated hereby.

Section
5.03           Certified Charter,
By-laws and Good Standing Certificates. 
The Company shall have delivered to Purchaser (a) copies of the
certificate of incorporation, as amended, of the Company as in effect on the
Closing Date certified by the Secretary of State of the State of Colorado, (b)
copies of the by-laws, as amended, of the Company as in effect on the Closing
Date certified by the Secretary of the Company, (c) certificates from the
Secretary of State of the State of Colorado dated within three (3) business
days of the Closing Date to the effect that the Company is in good standing or
subsisting in such jurisdiction, and (d) a certificate from the Secretary of
State or other appropriate official in each jurisdiction in which the Company
is qualified or admitted to do business dated within three (3) business days of
the Closing Date to the effect that the Company is duly qualified or admitted
and in good standing in such jurisdiction.

Section
5.04           Pledge Agreements.  Certain of the Boreta Parties shall have
executed and delivered at the Closing a pledge agreement, in the form attached
hereto as Exhibit C, and shall have delivered to Purchaser stock
certificates for 50% of the issued and outstanding shares of Common Stock or
other securities of the Company owned by him or it together with stock powers duly
executed in blank, in form and substance reasonably satisfactory to Purchaser.

Section
5.05           Termination of ASI
Agreements. Purchaser shall have received documentation, executed by the
Company and the Principal Stockholders, evidencing the absolute termination of
each of the following agreements: (i) the Investment and Voting Agreement
dated  as of October 19, 1998, by and
between ASI  and the Company, (ii) the
Option Agreement dated as of October 19, 1998 by and between ASI and the
Company, (iii) the Voting Agreement dated as of October 19, 1998 by and among
ASI and the Boreta Parties, and (iv) the Co-Sale Agreement, dated as of October
19, 1998 by and among ASI, the Company and the Boreta Parties.

Section
5.06           Indebtedness. The
Company shall have no outstanding indebtedness of any kind, including no
obligations to any Affiliated Entities.

23

Section
5.07           Option/Warrant
Cancellation and Release.  The
Company shall have obtained from each holder of an option or warrant to
purchase Common Stock or any other equity security of the Company a fully
executed copy of an Option/Warrant Cancellation Agreement and Release in such
form and substance as is reasonably acceptable to Purchaser.

Section
5.08           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 Company.

Section
5.09           Principal Stockholder
Sale.  The Principal Stockholders
shall have entered into binding agreements for the Principal Stockholder Sale
to the Purchaser, which Principal Stockholder Sale shall close simultaneously
with the transactions contemplated hereby.

Section
5.10           Opinion of Counsel.  Purchaser shall have received an opinion,
dated the Closing Date, of Krys Boyle, P.C., counsel for the Company, in form,
scope and substance reasonably satisfactory to Purchaser.

Section
5.11           Proceedings.  All
corporate and other proceedings taken or to be taken in connection with the
transactions contemplated by this Agreement shall have been completed and all
documents incident hereto and thereto shall be reasonably satisfactory in form
and substance to Purchaser.

Section
5.12           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
5.13           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
5.14           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.

Section
5.15           Appointment of Directors;
Exchange Act Filing.  Each of Vaso
Boreta, William Kilmer and Robert R. Rosenberg shall have resigned from the
Board, and the Company shall have complied in all respects with each of the
requirements of Section 4.07 of this Agreement, including, without limitation,
effecting the Appointment and securing the resignation of Ronald S. Boreta
effective immediately after the effectiveness of the Appointment.  Without limiting the generality of the
foregoing, the Rule 14f-1 Information Statement shall have been mailed to the
stockholders of the Company as required by the Exchange Act, and all applicable

24

waiting periods (and any
extensions thereunder) under the Exchange Act shall have expired or otherwise
been terminated, and no action, suit or proceeding occasioned by the Rule 14f-1
Information Statement shall have been initiated or threatened by the SEC (which
action, suit or proceeding remains unresolved as of the Closing Date).

Section
5.16           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
5.17           Due Diligence.  Purchaser shall have completed to its
satisfaction its business, accounting, tax and legal due diligence
investigation and review of the Company.

Section
5.18           Intentionally Omitted.

Section
5.19           Intentionally Omitted.

Section
5.20           Company’s Auditors.  Piercey Bowler Taylor & Kern (“Piercey”),
the Company’s independent public accountant, shall have delivered to the
Company a letter, in form and substance reasonably satisfactory to Purchaser,
pursuant to which it agrees to (i) provide its consent, subject to reasonable
and customary conditions, to the use by the Company of its audit report dated
February 20, 2004 in any public filings required to be made by the Company or
in connection with the offer or sale of any securities by the Company and (ii)
if requested by the Company, audit the Company’s financial statements as of and
for the Company’s fiscal year ending December 31, 2004.

Section
5.21           Delivery of the Shares.  The Company shall have issued the Shares and
delivered the Shares, or caused them to be delivered, to Purchaser.

Section
5.22           Delivery of the
Warrants.  The Warrant Agreements
shall have been duly executed and delivered by the Company and the Warrant
Shares shall have been duly authorized for issuance upon exercise of the
Warrants.

Section
5.23           No Company Material
Adverse Effect.  There shall not be
or exist any change, effect, event, circumstance, occurrence or state of facts
that, individually or aggregated with any other change, effect, event,
circumstance, occurrence or state of facts, has had, has or which reasonably
could be expected to have, a material adverse effect on the Company.

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

Section
5.25           Registration Rights.  The Company shall have delivered to the
Purchaser a registration rights agreement in such form and substance as shall
mutually be agreed to by the Purchaser and the Company Entities.

25

ARTICLE VI

 

Closing Conditions of the Company
And the Principal Stockholders

The
obligations of the Company and the Principal 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 Company (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           Payment of the Purchase
Price.  Purchaser shall have
delivered the Purchase Price to the Company.

Section
6.04           The Concurrent
Contribution Agreement.  Purchaser
shall not have exercised its 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 Purchaser and the Company;

(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;

26

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

(d)                                 by Purchaser or the Company 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 Company, (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 Company to Purchaser, (ii) if a third party, including any group,
shall have made a Superior Acquisition Proposal and the requirements set forth
in Section 4.06(b) have been satisfied in all respects or (iii) 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 of the Company or any Principal 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 the Company and (y) the date on which all conditions to the
consummation of the transactions contemplated hereby not related to such breach
have been satisfied, (ii) the Company or any Principal Stockholder breaches a
covenant in Section 4.06 or (iii) upon the failure of a closing condition set
forth in Article V which is not curable;

(g)                                 by Purchaser, if a Company Triggering Event shall have
occurred.  A “Company Triggering Event”
shall be deemed to have occurred if: 
(i) the Board (or any committee thereof) shall have approved,
endorsed or recommended any Acquisition Proposal; (ii) the Company shall
have entered into any Acquisition Agreement relating to any Acquisition
Proposal or shall have consummated a transaction with respect to an Acquisition
Proposal; (iii) the Company shall have failed to file the Rule 14f-1
Information Statement with the SEC as required by Section 4.07 or otherwise
shall have failed to comply in all respects with the requirements of Section
4.07; (iv) a tender or exchange offer relating to securities of the
Company shall have been commenced and the Company shall not have sent to its
security holders, within ten (10) business days after the commencement of such
tender or exchange offer, a statement disclosing that the Company recommends
rejection of such tender or exchange offer; (v) the Company or any 

27

                                                of its affiliates or any of their respective officers,
directors, employees, investment bankers, advisors, representatives or agents
shall have violated the restrictions set forth in Section 4.06 or (vii)
the Company or any director or officer of the Company shall have asserted, in
any manner, that any provision of this Agreement is invalid or unenforceable in
any respect; or

(h)                                 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 (y) the
Company pursuant to Section 7.01(e)(ii) or (z) Purchaser pursuant to Section
7.01(b), 7.01(f) or 7.01(g), the Company 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 not less than $250,000 of costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby (the “Purchaser
Termination Reimbursement”) and the Boreta Parties shall convey to
Purchaser that number of shares of Common Stock as shall be equal to 10% of the
aggregate number of shares of Common Stock held by the Boreta Parties as of the
date hereof (as adjusted for stock subsequent stock splits, dividends,
reclassifications, etc.).  The Purchaser
Termination Reimbursement shall be payable by wire transfer of immediately
available funds.

(c)                                  In the event the Company shall have terminated this Agreement
pursuant to Sections 7.01(c), 7.01(e)(i) or 7.01(e)(iii), Purchaser shall promptly
(and, in any event, within three business days after such termination)
reimburse the Company for all reasonable fees and expenses of the Company,
subject to a maximum aggregate reimbursement of $250,000 (the “Company
Termination Fee”).  The Company Termination
Fee shall be payable by wire transfer of immediately available funds.

28

(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 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.

(e)                                  Any amounts not paid when due pursuant to this Section 7.03
shall bear interest from the date such payment is due until the date paid at a
rate equal to 8% per annum.

ARTICLE VIII

 

Indemnification; Survival of
Representations and Warranties

Section
8.01           Indemnification by Boreta
Parties.  The Boreta Parties, jointly
and severally, agree 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 a Boreta Party pursuant to this Agreement, (ii) any breach or
nonperformance of any of the covenants or agreements made by a Boreta Party
pursuant to this Agreement, (iii) any matter as to which a Boreta Party in
other provisions of this Agreement has expressly agreed to indemnify Purchaser,
(iv) the Affiliated Transactions, (v) illegal trading in the Company’s Common
Stock by a Boreta Party or an affiliate thereof since January 1, 2000; (vi)
conversations, discussions, negotiations, agreements regarding Acquisition
Proposals, or (vii) 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.

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, 

29

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 Boreta Party
shall be required to indemnify any Purchaser Indemnified Parties under Section
8.01 unless the aggregate of all amounts for which indemnity would otherwise be
payable by a Boreta Party exceeds $200,000 (except with respect to any
inaccuracy in or breach of the representations and warranties contained in
Sections 2.01, 2.03, 2.04, 2.05, 2.09, 2.11, 2.23, 2.24 and 2.25 with respect
to which this threshold shall not apply), and, in such event, the Boreta
Parties shall be responsible for the entire amount.  The Boreta Parties 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 Section 2.23) shall
be limited, in the aggregate, to $2,000,000 plus 50% of the shares of Common
Stock held by the Boreta Parties (the “Boreta Indemnification Shares”); provided,
however, that in the event that any of the Boreta Parties are obligated
to provide indemnification under Section 8.01 hereof, Purchaser shall have
recourse to cash indemnification from the Boreta Parties (subject to the above
limitation) prior to, and without any condition precedent of, the exercise of
any of Purchaser’s rights and remedies under the pledge agreement in the form
attached hereto as Exhibit C in respect of the Boreta Indemnification
Shares.

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, 

30

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 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           Non-Survival of Representations
and Warranties of the Company and ASI; Survival of Representations and
Warranties of Boreta Parties. 
Notwithstanding any right of Purchaser and the Company to fully
investigate the affairs of the other parties hereto and notwithstanding any knowledge
of facts determined or determinable by Purchaser or Company 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 Company 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.  Each representation, warranty, covenant and
agreement of the Company, and each representation, warranty, covenant and
agreement of ASI contained in this Agreement shall terminate upon the
Closing.  Notwithstanding any other
provision in this Agreement to the contrary, each representation and warranty
of the Boreta Parties contained in 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 the Purchaser and shall thereafter terminate and
expire on the six (6) month anniversary of the Closing Date, unless, on or
before such date, Purchaser has delivered to the Boreta Parties a written
notice of a claim with respect to any such representation and warranty.

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.

Section
8.08           Transfer of
Indemnification Rights. 
Notwithstanding anything in this Agreement to the contrary, at the
closing of the transactions contemplated by the Concurrent Contribution
Agreement, Purchaser shall transfer all of its rights under this Article VIII
to the Company.

31

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 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 Principal 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 any of the Company
or the Principal Stockholders.  Purchaser may purchase the Shares,
the Warrants and the shares of Common Stock underlying the Warrants 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.

  	
   

  	
   

  

 

32

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If to the Company:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Sports Entertainment
  Enterprises, Inc.

  	
   

  	
   

  
	
   

  	
  6730 South Las Vegas
  Boulevard

  	
   

  	
   

  
	
   

  	
  Las Vegas, Nevada 89119

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Krys Boyle, P.C.

  	
   

  	
   

  
	
   

  	
  600 Seventeenth Street

  	
   

  	
   

  
	
   

  	
  Suite 2700 South Tower

  	
   

  	
   

  
	
   

  	
  Denver, CO 80202

  	
   

  	
   

  
	
   

  	
  Attention: James P. Beck,
  Esq.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If
  to the Boreta Parties:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Ronald
  S. Boreta

  	
   

  	
   

  
	
   

  	
  Sports
  Entertainment Enterprises, Inc.

  	
   

  	
   

  
	
   

  	
  6730 South Las Vegas
  Boulevard

  	
   

  	
   

  
	
   

  	
  Las Vegas, Nevada 89119

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If
  to ASI:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  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 Company, the Principal
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 Company, the
Principal Stockholders and Purchaser irrevocably waive the defense of an
inconvenient forum to the maintenance of such suit or proceeding.  Service of process on the Company mailed by
first class mail shall be deemed in every respect effective service of process
upon the Company in any 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 

33

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 10.06.

Section 9.07           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 9.08           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 9.09           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 9.10           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 9.11           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 

34

                                                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).

(d)                                 “material
adverse change” or “material adverse effect” means, when used in
reference to the Company, any change, effect, event, circumstance, occurrence
or state of facts that is, or which reasonably could be expected to be,
materially adverse to the business, assets, liabilities, condition (financial
or otherwise), cash flows or results of operations of the Company and its
subsidiaries, considered as an entirety; provided,  however, that
the following shall not be taken into account or given effect, either
individually or in the aggregate, in determining whether there has occurred or
there reasonably could be expected to occur, or whether there exists a change,
effect, event, circumstance, occurrence or state of facts that is or which
reasonably could be expected to be, a material adverse change or a material
adverse effect: (i) any change, effect, event, circumstance, occurrence or
state of facts relating to the United States economy or financial or securities
markets in general (but only to the extent not constituting or arising from a
banking moratorium or general suspension of trading for more than five consecutive
trading days on any national securities exchange or U.S. inter-dealer quotation
system of a registered national securities association or not otherwise
involving a decline in the Dow Jones Industrial Average of more than 25%
measured over any five Nasdaq—trading day period), or (ii) any change, effect,
event, circumstance, occurrence or state of facts directly relating to and
arising out of the public announcement or performance of this Agreement and the
transactions contemplated hereby.

(e)                                  “knowledge”
means, (i) with respect to the Company, the knowledge (after reasonable inquiry
and investigation) of the Company’s Chairman of the Board, President, Chief
Executive Officer, Treasurer and Secretary and the Principal Stockholders and
(ii) with respect to Purchaser, the knowledge (after reasonable inquiry and
investigation) of Purchaser’s managing member and senior executive officers.

Section 9.12           Specific Performance.  The parties hereto agree that irreparable
damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise
breached.  The Company agrees that
Purchaser shall be entitled to an injunction or injunctions to prevent breaches
of this Agreement and to enforce specifically the terms and provisions hereof,
this being in addition to any other remedy to which they are entitled at law or
in equity and hereby waives the defense in any action for specific performance
that a remedy at law would be adequate.

35

Section 9.13           Interpretation. 
When a reference is made in this Agreement to an Article, Section or
Exhibit, such reference shall be to an Article or Section of, or an Exhibit to,
this Agreement unless otherwise indicated. The table of contents and headings
contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. Whenever the
words “include,” “includes” or “including” are used in this Agreement, they
shall be deemed to be followed by the words “without limitation.” The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement. All terms defined in this Agreement shall have the
defined meanings when used in any certificate or other document made or
delivered pursuant hereto unless otherwise defined therein. The definitions
contained in this Agreement are applicable to the singular as well as the
plural forms of such terms and to the masculine as well as to the feminine and
neuter genders of such term. Any agreement, instrument or statute defined or
referred to herein or in any agreement or instrument that is referred to herein
means, in the case of any agreement or instrument, such agreement or instrument
as from time to time amended, modified or supplemented, including by waiver or
consent and, in the case of statutes, such statutes as in effect on the date of
this Agreement. References to a person are also to its permitted successors and
assigns. The parties have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any of the provisions of
this Agreement. Any reference to any Federal, state, local or foreign statute
or law shall be deemed to also refer to any amendments thereto and all rules
and regulations promulgated thereunder, unless the context requires otherwise.

[signature page follows]

 

36

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

	
   

  	
  SPORTS ENTERTAINMENT

  ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Vaso Boreta

  
	
   

  	
  Name: 

  	
  Vaso Boreta

  
	
   

  	
  Title: 

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  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

  

 

37

 

	
   

  	
   

  	
   

  
	
   

  	
  RFX ACQUISITION LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Robert F.X. Sillerman

  
	
   

  	
  Name: 

  	
  Robert F.X. Sillerman

  
	
   

  	
   

  	
  Title: Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  Solely With Respect to Section 4.14 of this
  Agreement:

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Robert F.X. Sillerman

  
	
   

  	
  Robert F.X. Sillerman

  
	
   

  	
   

  	
   

  

 

Purchase
Agreement Signature Page

 

 

38Exhibit
10.4

 

AMENDMENT

 

To

 

PURCHASE AGREEMENT

 

By and Among

 

SPORTS ENTERTAINMENT ENTERPRISES, INC.,

 

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 Sports Entertainment Enterprises, Inc., a Colorado
corporation (the “Company”), Ronald S. Boreta (“RBoreta”), Vaso
Boreta (“VBoreta”), John Boreta (“JBoreta”), Boreta Enterprises
Ltd. (“BEL” and, collectively with RBoreta, VBoreta and JBoreta, the “Boreta
Parties”), ASI Group LLC (“ASI” and collectively with the Boreta
Parties, the “Principal Stockholders” and collectively with BEL and the
Company, the “Company Entities”) and RFX Acquisition LLC, a Delaware
limited liability company (the “Purchaser”).

 

W
I  T  N  E  S  S  E  T  H:

 

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

 

WHEREAS, the Purchaser, the Company and the Principal Stockholders have
agreed to amend the 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 Purchase Agreement shall have the respective meanings
assigned to such terms in the Purchase Agreement.

 

SECTION 2.                   Amendments to the Purchase Agreement.

 

The Purchase Agreement is hereby amended as follows:

 

A.                                   The
first two WHEREAS clauses in the preamble of the Purchase Agreement are hereby
deleted in their entirety and replaced with the following two new WHEREAS
clauses:

 

“WHEREAS, the Company proposes to issue to
the Purchaser, and Purchaser proposes to acquire from the Company 30,464,072
shares (each a “Share”, and collectively the “Shares”) of Common
Stock, no par value per share, of the Company (the “Common Stock”);

 

WHEREAS, in connection with the transactions
contemplated by this Agreement, at the Closing (as defined in Section 1.02),
the Company will issue to Purchaser warrants (the “Warrants”) to
purchase (i) 6,828,938 shares of Common Stock at an exercise price of $1.00 per
share, (ii) 6,828,938 shares of Common Stock at an exercise price of $1.50 per
share, and (iii) 6,828,939 shares of Common Stock at an exercise price of $2.00
per share, pursuant to Warrant Agreements (the “Warrant Agreements”) to
be entered into by the Company and Purchaser, in the form attached hereto as Exhibit
A;”

 

B.                                     Section 1.01
of the Purchase Agreement is hereby deleted in its entirety and replaced with
the following new Section 1.01:

 

“Purchase of Shares.  Upon the terms and subject to the conditions
set forth herein, Purchaser shall purchase from the Company, and the Company
shall sell and issue to Purchaser, 30,464,072 shares of Common Stock at a price
of $0.10 per share, for an aggregate purchase price (the “Purchase Price”)
of $3,046,407.20.”

 

C.                                     Section 5.25
of the Purchase Agreement is hereby deleted in its entirety.

 

SECTION 3.                   Effectiveness.

 

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

 

 

document)
shall mean and be a reference to the 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 Purchase Agreement.

 

Except as expressly amended hereby, all of the terms of the 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.

 

 

	
   

  	
  SPORTS
  ENTERTAINMENT

  
	
   

  	
  ENTERPRISES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Vaso
  Boreta

  	
   

  
	
   

  	
  Name:  Vaso Boreta

  
	
   

  	
  Title:  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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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