Document:

EXHIBIT 10.33

OPTION TO PURCHASE THE GOLD RANCH CASINO PROPERTY

AND IMPROVEMENTS, THE LEACH FIELD PROPERTY, THE

FRONTAGE PARCEL, THE CALIFORNIA LOTTERY STATION AND

THE CALIFORNIA LOTTERY PROPERTY, AND THE RIGHT OF

FIRST REFUSAL

BETWEEN

PROSPECTOR GAMING ENTERPRISE, INC.

A Nevada Corporation

AND

TARGET INVESTMENTS, L.L.C.

A Nevada Limited Liability Company

AND

LAST CHANCE, INC.,

A Nevada Corporation

 

OPTION TO PURCHASE THE GOLD RANCH CASINO PROPERTY

AND IMPROVEMENTS,  THE LEACH FIELD
PROPERTY, THE

FRONTAGE PARCEL, THE CALIFORNIA LOTTERY STATION AND

THE CALIFORNIA LOTTERY PROPERTY, AND RIGHT OF FIRST

REFUSAL

This Option to Purchase the Gold Ranch Casino Property and
Improvements, the Leach Field Property, the Frontage Parcel, the California
Lottery Station and the California Lottery Property, and Right of First Refusal
(“Agreement”) is made this 27th day of
December, 2001, by and between Prospector Gaming Enterprises, Inc., a Nevada
corporation (PGE), Target Investments, L.L.C., a Nevada limited liability
company (Target) and Last Chance, Inc., a Nevada corporation (Last Chance).

RECITALS

A.            Capitalized terms
used in this Agreement and not otherwise defined shall have the meanings
ascribed to such terms in Section 1.

B.            PGE is the owner of
the Gold Ranch Casino Property and Improvements;

C.            Target is the owner
of the Leach Field Property, the Frontage Parcel, the California Lottery
Station and the California Lottery Property.

D.            Last Chance desires
to acquire an option to purchase the Gold Ranch Casino Property and
Improvements, the Leach Field Property, the Frontage Parcel, the California
Lottery Station and the California Lottery Property and a right of first
refusal with respect thereto and PGE and Target are willing to grant such
option and right of first refusal to Last Chance on the terms and conditions
set forth in this Agreement.

E.             This Agreement is
one of the Integrated Agreements by and between Last Chance and Prospector
Gaming Enterprises, Inc., and its Affiliates, for the acquisition by Last
Chance of all of the Integral Properties and Assets of the Gold Ranch Casino
and RV Resort.

NOW, THEREFORE, in consideration of the foregoing recitals and of the
mutual covenants and agreements provided below, the execution and delivery of
the Integrated Agreements and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:

1.                                      DEFINITIONS.

1.1           “Affiliate” means as to any Person, any other Person which
directly or indirectly controls, or is under common control with, or is
controlled by, such Person and, if such Person is an individual, any member of
the immediate family (including parents, spouse, children, grandchildren,
brothers and sisters, of such individual and any trust the principal
beneficiary of which is such individual or one or more members of such
individual’s immediate family and any Person who is controlled by any such
member or trust.  As used in this
definition, “control” (including its correlative meanings, “controlled by” and “under
common control with”) means

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possession, directly or indirectly, of power to direct
or cause the direction of the management or policies, whether through the
ownership of securities, limited liability company or partnership or other
ownership interests, by contract or otherwise.

1.2           “Asset Purchase Agreement” means the Asset Purchase Agreement
by and between Prospector Gaming Enterprises, Inc., a Nevada Corporation and
Last Chance, Inc., a Nevada Corporation, executed contemporaneously herewith
and as to which this Agreement is an integral part.

1.3           “California Lottery Property” means the real property
described in Exhibit 1 (APN 038-230-06 and APN 023-100-06) which is owned
by Target Investments, LLC and upon which California Prospectors, Ltd.,
operates the California Lottery Station.

1.4           “California Lottery Station” means the improvements located
on the California Lottery Property from which California Prospectors Ltd.  operates as a California Lottery game
retailer, including the building containing the lottery station and a
convenience store, adjacent parking, landscaping and associated improvements,
furniture, fixtures and equipment not otherwise owned by California
Prospectors, Ltd.

1.5           “California Lottery Station Lease” the lease between
California Prospectors, Ltd., as “Tenant”, and Target Investments, LLC, as “Landlord”,
for the lease of the California Lottery Property.

1.6           “CERCLA” means the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended.

1.7           “Closing” means the completion of the transaction
contemplated by the Integrated Agreements on the Closing Date.

1.8           “Closing Date” means the last day of the month in which all
conditions precedent to the Closing have occurred as provided in the Asset
Purchase Agreement.

1.9           “Environmental Claim” means, with respect to any Person, any
written notice, claim, demand or other communication (collectively, a “claim”)
by any other person alleging or asserting such person’s liability for
investigatory costs, cleanup costs, Governmental Authority response costs,
damages to natural resources or other Premises, personal injuries, fines or
penalties arising out of, based on or resulting from (A) the presence, or
release into the environment, of any Hazardous Material at any location,
whether or not owned by such person, or (B) circumstances forming the
basis of any violation, or alleged violation, of any Environmental Law.  The term “Environmental Claim” shall include,
without limitation, any claim by any Governmental Authority for enforcement,
cleanup, removal, response, remedial or other actions or damages pursuant to
any applicable Environmental Law, and any claim by any third party seeking
damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from the presence of Hazardous Materials or arising
from alleged injury or threat of injury to health, safety or the environment.

1.10         “Environmental
Law” means any law, regulation or order relating to the regulation
or protection of human health, safety or the environment or to emissions,
discharges,

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releases or threatened releases of Hazardous Materials
into the environment (including without limitation ambient air, soil, surface
water, ground water, wetlands, land or subsurface strata), or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Materials.

1.11         “FF&E”
means any and all furniture, fixtures and equipment installed or used, or to be
installed or used, in connection with the operation of the Gold Ranch Casino
Property and Improvements which is not owned by Last Chance, including, but not
limited to, the plumbing systems, HVAC systems, fire protection systems,
electrical systems, equipment, elevators, exterior sidings and doors,
landscaping and irrigation systems.

1.12         “Frontage
Parcel” means a portion of that certain parcel of real property (APN
038-241-08) located in Washoe County, Nevada, as more particularly described in
Exhibit 1.

1.13         “Gold Ranch
Casino Property and Improvements” means the real property located in
Washoe County, Nevada, as more particularly described in Exhibit 1 (APN
038-230-24) and the improvements and FF&E located thereon at the time of
the exercise by Last Chance of the rights granted by Sections 2 or 3 of
this Agreement.

1.14         “Governmental
Authority” shall mean any federal, state, regional, county or
municipal governmental agency, board, commission, officer or official having or
exercising or purporting to have or exercise jurisdiction over the Option
Assets or the Parties with respect to the Option Assets.

1.15         “Hazardous
Materials” includes (A) any “hazardous substance,” as defined
by CERCLA or any other similar substance or waste regulated pursuant to any
similar state or local law, regulation or ordinance; (B) any “waste” or “hazardous
waste,” as defined by the Resource Conservation and Recovery Act, as amended,
or any other similar substance or waste regulated pursuant to any similar state
or local law, regulation or ordinance; (C) any pollutant, contaminant,
material, substance or waste regulated by the Clean Water Act, as amended, or
any other similar substance or waste regulated pursuant to any similar state or
local law, regulation or ordinance; (D) any pollutant, contaminant,
material, substance or waste regulated by the Clean Air Act, as amended, or any
other similar substance or waste regulated pursuant to any similar state or
local law, regulation or ordinance; (E) any petroleum product;
(F) any polychlorinated biphenyls; or (G) any radioactive material or
substances.

1.16         “Index”
means the Consumer Price Index, All Urban Consumers — (CPI-U), U.S.  City Average, All Items, 1982-84=100.” If the
Index should cease to be compiled and published by the Bureau of Labor
Statistics and if other indexes are published by U.S.  governmental agencies for which tables are
available to correlate the discontinued Index with such other index, then such
other index and correlation tables shall be employed to make the inflation
adjustments required under this Agreement. 
If no such correlation tables are available, then the parties shall
utilize such other indexes as may be available in such manner as may fairly and
reasonably carry out and effectuate the purposes of this Section to reflect the
effects of inflation upon the payments required to be adjusted under this
Agreement.

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1.17         “Integral
Properties and Assets” means all of the assets, real and personal,
tangible and intangible, which constitute integral parts of the businesses
operated by Prospector Gaming Enterprises, Inc., and its Affiliates, as the
Gold Ranch Casino & RV Resort, and as that term is more particularly
described in the Asset Purchase Agreement.

1.18         “Integrated
Agreements” means this Agreement and each of the agreements and
documents described as a component of that term in the Asset Purchase
Agreement, which constitute integral parts of the single transaction by which
Last Chance, Inc., will acquire the businesses and assets (real, personal,
tangible and intangible) operated by Prospector Gaming Enterprises, Inc.  and its Affiliates, as the Gold Ranch Casino
& RV Resort.

1.19         “Leach Field
Property” means a portion of that certain parcel of real property
(APN 038-230-02) located in Washoe County, Nevada as more particularly
described in Exhibit 1.

1.20         “Option
Assets” means the Gold Ranch Casino Property and Improvements, the
Leach Field Property, the Frontage Parcel (excluding, however, alterations,
improvements and additions made by Last Chance under Section 6.5 of the Gold
Ranch Casino Lease which are the sole property of Last Chance), and the
California Lottery Station and the California Lottery Property (excluding alterations,
improvements and additions made by, and furniture, fixtures and equipment owned
by California Prospectors, Ltd.).

1.21         “Person”
means an individual, firm, corporation, trust, association, partnership, joint
venture, tribunal or other entity.

1.22         “Release”
means release, spill, emission, leaking, pumping, injection, deposit, disposal,
discharge, dispersal, leaching or migration into the indoor or outdoor
environment or into or out of any real or personal property or any fixture,
including the movement of Hazardous Materials through or in the air, soil,
surface water or groundwater.

2.                                      OPTION TO PURCHASE.

PGE and Target hereby grant to Last Chance an exclusive option, right
and privilege to purchase the Option Assets at any time after the 18th anniversary
of the Closing and prior to the expiration of the term of this Agreement as
provided in Section 4.  The option must
be exercised, if at all, as to all of the Option Assets and simultaneously as
to all option agreements contained in the Integrated Agreements.

2.1           Notice of
Exercise of Option.  Last Chance
shall exercise the option by written notice thereof to PGE and Target (Notice
of Exercise).  Upon receipt of the Notice
of Exercise by PGE and Target, the parties shall open an escrow with the title
company selected by PGE and Target under Section 2.5.

2.2           Purchase Price,
Calculation and Payment.  The
purchase price for the Option Assets shall be $6,000,000.00 (Base Price)
adjusted as provided in Section 2.2(A).

(A)          Base
Price Adjustment.  The Purchase Price
for the Option Assets shall be calculated as follows: The Base Price shall be
increased or decreased effective on each

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anniversary of the Commencement Date of the Gold Ranch
Casino Lease (Adjustment Date) preceding the date of exercise of the option, by
an amount equal to the increase or decrease in the Index for the calendar year
last concluded prior to the applicable Adjustment Date, PROVIDED, HOWEVER, that
no annual increase or decrease shall exceed 5% regardless of the actual
increase or decrease in the Index.  The
product of that calculation shall be the Base Price for the next Adjustment
Date.  In the event that any of the
Option Assets, or any portion of any of them, are taken by condemnation, or
destroyed or damaged and not repaired or replaced (whether or not such failure
constitutes a breach of any of the Integrated Agreements) the base price at the
Adjustment Date next preceding the condemnation, damage or destruction, shall
be reduced by (i) the amount of the condemnation award, or (ii) the insurance
proceeds, received by PGE or Target, or their Affiliates, as the case may be,
and not paid over to Last Chance.  The
product of that calculation shall be the Base Price for the next Adjustment
Date.

(B)           Terms
of Payment.  The purchase price shall
be paid on terms mutually agreeable to PGE and Target and Last Chance, however,
if the parties cannot reach an agreement thereon, Last Chance shall either pay
cash or obtain its own third party financing.

2.3           Title.  PGE and Target shall convey good and
marketable title to the Option Assets to Last Chance free and clear of all
liens, claims and encumbrances of any kind whatever, all other defects in title
and any Environmental Claims, except for those caused, permitted or suffered by
Last Chance or approved by Last Chance as provided in Section 2.4.  The real property portion of the Option
Assets shall be conveyed to Last Chance by grant, bargain and sale deed and any
personal property shall be transferred by bill of sale.  In either case, the grantor or transferor
shall warrant that title is conveyed free and clear of all liens, claims and
encumbrances of any kind whatever, all other defects in title and any
Environmental Claims, with any exceptions for those caused, permitted or
suffered by Last Chance being set forth in detail reasonably sufficient for
identification.

2.4           Approval of
Conditions of Title.

(A)          Within
fifteen (15) days following the receipt by PGE and Target of the Notice of
Exercise, PGE and Target shall deliver to Last Chance, at PGE and Target ‘s
sole cost and expense: (i) a CLTA preliminary title report for the Option
Assets issued by a reputable title company, and (ii) the results of a
search conducted of the public records of the State of Nevada and Washoe
County, Nevada, and the State of California and Sierra County, California, for
personal property security interests and liens by the public officials
responsible for such records, together with full and complete copies of all
documents referenced in the title report and the results of such searches, and
(iii) copies of all liens, claims, encumbrances and financing statements
affecting the Option Assets and not otherwise produced by PGE and Target
pursuant to Section 2.4(A)(i) or (ii). 
Any obligation of Last Chance to purchase the Option Assets upon its
election to exercise the Option is contingent on Last Chance’s approval of the
condition of title thereto.  Last Chance
shall have thirty (30) business days following its receipt of all of the
materials required by Section 2.4(A)(i), (ii) and (iii), within which to give
written notice to PGE and Target of Last Chance’s objections to the condition
of title to the Option Assets (Title Defects).

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(B)           Last
Chance’s notice of objection shall either state that: (i) Last Chance
elects to revoke its exercise of the option and to cancel the escrow
established following the Notice of Exercise, or (ii) that PGE and Target
shall have until the close of escrow to remove the Title Defects at their
expense.  If PGE and Target do not remove
all of the Title Defects, Last Chance shall notify PGE and Target that:
(iii) Last Chance elects to revoke its exercise of the option and to
cancel the escrow established following the Notice of Exercise, or
(iv) the Title Defects or one or more of them are waived and shall
constitute Permitted Exceptions, or (v) that Last Chance will cure any
remaining Title Defect(s) and deduct the cost thereof from the Purchase Price,
or (vi) that Last Chance will seek specific performance of PGE and Target ‘s
agreement to convey title to the Option Assets in the condition provided in
Section 2.3.

(C)           All
matters shown in the materials produced pursuant to Section 2.4(A)(i),
(ii) and (iii), which are not objected to by Last Chance, shall be deemed to be
Permitted Exceptions.

3.                                      RIGHT OF FIRST REFUSAL.

In the event that PGE and Target receive an arms-length, good faith,
bona fide offer from a third party to purchase the Option Assets during the
Term of this Agreement, or any extension thereof, Last Chance shall have the
right of first refusal to meet any such offer on terms and conditions identical
thereto and in accordance with the provisions of this Section 3.  PGE and Target agree that they will not sell,
transfer or dispose of any of the Option Assets separately and acknowledge that
the right of sale, transfer or disposition hereby reserved is limited to a
sale, transfer or disposition of all of the Option Assets, in toto, in a single
transaction.  In the event that Last
Chance exercises its right of first refusal but a purchase is not consummated,
for any reason, this Section 3 and the rights and obligations of the parties
thereunder, shall survive.

3.1           Notice.  Within ten (10) days following their receipt
of an offer to purchase the Option Assets, PGE and Target shall deliver a written
notice (Notice) to Last Chance stating: (A) PGE and Target ‘s bona fide
intention to sell the Option Assets, (B) the name and address of the proposed
purchaser, (C) the date of the proposed sale, (D) copies of any drafted
documents evidencing the proposed transaction, including letters of intent, and
(E) the purchase price and terms for or upon which PGE and Target propose to
sell the Option Assets.

3.2           Exercise.  Within thirty (30) days following receipt of
the Notice Last Chance shall have the right, but not the obligation, to elect
to purchase the Option Assets for the price and/or upon the terms set forth in
the Notice subject, however, to Section 3.3 in the event that the third party
offer includes non-cash consideration. 
Within thirty (30) days after the receipt of the Notice, Last Chance
shall notify PGE and Target in writing of its election to exercise the right of
first refusal granted by this Section 3 (Notice of Election).  The failure of Last Chance to give a timely
Notice of Election shall constitute an election by Last Chance not to
exercise.  In the event that Last Chance
elects to exercise its right of first refusal, PGE and Target and Last Chance
shall execute such documents and instruments and make such deliveries as may be
reasonably required to consummate such purchase and sale.

3.3           Non-Cash
Consideration.  If the Notice
provides for the payment of non-cash consideration, Last Chance may elect to
provide the non-cash consideration or to pay cash in lieu

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of the non-cash consideration in an amount equal to
the good faith estimate of the present fair market value of the non-cash
consideration offered as determined by an independent appraiser of Last Chance’s
choice.  Notwithstanding the date
specified in the Notice for the closing of the proposed sale, in the event that
Last Chance elects to provide the non-cash consideration, it shall have until
close of business on the later of (A) forth-five (45) days from the date of
receipt of the Notice of Election by PGE and Target, or (B) the date specified
in the Notice for the closing of the sale, within which to provide such
non-cash consideration.

3.4           Non-exercise.  If Last Chance elects or is deemed to have
elected not to exercise its right of first refusal or, having exercised that
right, a purchase of the Option Assets is not consummated due to the fault of
Last Chance, PGE and Target may (A) seek specific performance of the
election by Last Chance to exercise its right of first refusal, or
(B) sell the Option Assets to the proposed purchaser, provided that such
sale is: (i) completed within the time specified in the Notice and if none
is specified, within one (1) year after the expiration of Last Chance’s right
of first refusal, (ii) made on terms identical to those specified in the
Notice, (iii) the transferee takes, and acknowledges in writing that it
takes title to the Option Assets subject to Last Chance’s rights under this
Agreement, specifically including, without limitation, the rights of Last
Chance under Sections 2 and 3 of this Agreement, and the Integrated
Agreements, and (iv) all deeds and other documents by which the Option
Assets are conveyed or transferred recite that title thereto is taken subject
to the rights of Last Chance under Sections 2 and 3 of this Agreement, and
the other Integrated Agreements (with specific reference to all pertinent
recording information) and that the grantee, transferee or assignee of the
Option Assets, as the case may be, is bound thereby.  If a sale of the Option Assets as herein
provided is not consummated, PGE and Target must give notice anew in accordance
with Section 3.1 prior to any other sale of the Option Assets.  Any sale or transfer in violation of Section
3 shall be voidable by Last Chance, in its absolute discretion.  In the event that Last Chance elects to void
a sale or transfer under this Section 3.4, PGE and Target shall, jointly
and severally and at their sole cost and expense, indemnify, protect and defend
Last Chance (including costs and attorneys’ fees incurred by Last Chance) from
and against the claims of any such transferee and shall, upon demand by Last
Chance, take such actions as may be necessary, including the commencement of an
action to quiet title to the Option Assets, or any portion thereof as may have
been transferred in violation of Section 3, to free the Option Assets of
any claim or encumbrance other than the rights of Last Chance under this
Agreement.

4.                                      TERM.

The Term of this Agreement shall commence on the Closing and shall
continue so long as any of the Integrated Agreements remain in force and
effect.

5.                                      REPRESENTATIONS AND
WARRANTIES.

5.1           PGE and Target’s
Representations and Warranties. 
Except as provided in Exhibit 2, PGE and Target represent and
warrant to Last Chance that each of the following representations and
warranties are true and correct as of the date hereof and, except as otherwise
expressly provided herein, will be true and correct on the Closing and the
close of escrow in the event of a purchase of the Option Assets by Last Chance
pursuant to Sections 2 or 3 of this Agreement.

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(A)                              Organization.  (i) PGE is a corporation validly
existing and in good standing under the laws of the State of Nevada and every
other jurisdiction in which it does business, owns property or has employees
and has all requisite power and authority to own the Gold Ranch Casino Property
and Improvements and to grant the option to purchase and right of first refusal
as provided in Sections 3 and 4 of this Agreement; (ii) Target is
limited liability company duly organized, validly existing and in good standing
under the laws of the State of Nevada and every other jurisdiction in which it
does business, owns property or has employees, and has all requisite power and
authority to own the Leach Field Property, the Frontage Parcel, the California
Lottery Station and the California Lottery Property and to grant the option to
purchase and right of first refusal as provided in Sections 3 and 4 of this
Agreement.

(B)                                Articles,
By Laws, Operating Agreement.  The
execution and delivery of this Agreement does not, and the consummation of the
transactions contemplated hereby will not, conflict with the terms and
provisions of the Articles of Incorporation, By Laws or Articles of
Organization or Operating Agreement, of either PGE or Target.

(C)                                Proper
Authority and Action, Binding Obligation. 
Each of PGE and Target has had since its formation, does have currently,
and will have at the Closing and the closing of any transaction under
Sections 2 and 3, all necessary registrations, licenses, filings, permits,
exemptions, certificates, approvals, and other authorizations required of them
by any Governmental Authority, to own, use and operate the Option Assets, at
the places and in the manner in which the Option Assets have been and are being
owned, used, and operated.  Each of PGE
and Target has taken all action necessary under their respective organizational
documents and applicable corporate and limited liability company laws, to
authorize the execution and delivery of this Agreement and the performance of
their respective obligations thereunder and has duly executed and delivered
this Agreement.  The Agreement is the
valid and binding obligation of each of PGE and Target, enforceable against
each of them in accordance with its terms.

(D)                               Ownership,
Authority and Compliance.  PGE represents
and warrants that it is the legal owner of the Gold Ranch Casino Property and
Improvements and Target represents and warrants that it is the legal owner of
the Leach Field Property, the Frontage Parcel, the California Lottery Station
and the California Lottery Property; that this Agreement does not violate any
contractual obligations with any third party, including recorded documents such
as deeds of trust, mortgages, security agreements, liens or other encumbrances,
or violate or contravene any law, governmental rule, regulation, order, writ,
injunction or decree applicable to either PGE or Target, that there are no
consents necessary from any person, association, entity, or Governmental
Authority necessary to render this Agreement lawful, or effective in accordance
with its terms, and that each of PGE and Target is in compliance with all
federal, state and local laws, rules and regulations applicable to the Option
Assets.

(E)                                 Want
of Notice.  Neither PGE nor Target
has received any notice from any Governmental Authority: (i) requiring
either of them to make any material repairs or changes to any of the Option
Assets which have not been made, or (ii) giving notice of any material
governmental actions pending or threatened relating to any of the Option
Assets.  All of the Option Assets are in
material compliance with applicable laws, regulations and ordinances and, to
the best of Optionors’ knowledge, all current building and health codes to the
extent

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applicable. 
Neither PGE nor Target has received any notice of any material
violations of any laws, regulations, ordinances or building or health codes
with respect to the Option Assets.

(F)                                 Licenses
and Permits.  Each of PGE and Target
represents and warrants that they hold all licenses and permits necessary to
their ownership and use of the Option Assets and are in compliance with all
such licenses and permits.

(G)                                Condition
and Compliance.  PGE and Target
warrant and represent that all of the Option Assets: (A) comply with, and are
operated in accordance with, all material applicable laws, (B) that the Option
Assets are in good operating condition and repair, free from latent and patent
defects and adequate for the uses to which they are being put, and (C) that
none of the Option Assets is in need of maintenance or repair, except for
ordinary, routine maintenance and repairs that are not material in nature or
cost.

(H)                               Environmental
Matters.

(i)                                     Each
of PGE and Target represents and warrants that, except as provided in Exhibit
2, the Option Assets have all times been, and continue to be, used and operated
in material compliance with all Environmental Laws;

(ii)                                  Except
as provided in Exhibit 3, there have been no past, and there are no pending or
threatened: (a) Environmental Claims, complaints, notices, requests for
information or investigations with respect to any alleged material violation of
any Environmental Law by either PGE or Target, or (b) complaints, notices
or inquiries to or investigations of PGE or Target regarding potential
liability under any Environmental Law;

(iii)                               Except as provided in
Section 5.1(H)(vi), there have not been, at or on any of the Option Assets any
Releases of Hazardous Materials and there are no citations, notices or orders
of noncompliance issued and outstanding to PGE or Target under any
Environmental Law;

(iv)                              Each
of PGE and Target is the holder of and is in material compliance with all
permits, certificates, approvals, licenses and other governmental
authorizations relating to environmental matters and necessary for the
ownership, operation, lease and use of the Option Assets, and no order has been
issued, no Environmental Claim has been made, no penalty has been assessed and
no investigation or review has occurred or is pending or threatened, by any
Governmental Authority or any Person with respect to any alleged failure by
either PGE or Target to have any license or permit required under applicable
Environmental Laws in connection with the use of the Option Assets or to comply
with any Environmental Laws or with respect to any generation, treatment,
storage, recycling, transportation, discharge, disposal or release of any
Hazardous Material generated or Released by them;

(v)                                 Each
of PGE and Target warrant that, except as provided in Exhibit 2 and Section
5.1(H)(vi), no condition exists with respect to the Option Assets that would
represent an environmental liability to Last Chance, and that if such a
condition does exist, that PGE and Target shall indemnify, defend, and hold
harmless,

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Last Chance for any losses associated with such
liability, including, but not limited to, any and all claims, judgments,
damages, penalties, fines, costs, liabilities or other losses, sums paid in
settlement of claims, attorney fees, consultant fees and expert fees.

(vi)                              PGE
and Target acknowledge that a petroleum Release from an underground storage
tank on the Gold Ranch Casino Property was discovered in 1995.  That Release resulted in the contamination of
the well(s) (Permit No.  48834 and Permit
No.  49019; Certificate No.  12799 and Certificate No.  12801) located inside the Casino
building.  Subsequent examination and
characterization led PGE to cease using these wells and to install numerous
monitoring wells, ground water recovery wells, soil vapor extraction points,
and a treatment system, which continue to operate.  It is expected that remediation will be
concluded within twelve (12) months following the Closing.  PGE and Target shall indemnify Last Chance from
and against liability for this Release to the extent provided in Section 4(g)(vi)
of the Asset Purchase Agreement.

(I)                                    Full
and Accurate Disclosure, Reliance. 
No statement of fact made by PGE and/or Target in this Agreement
contains any untrue statement of a material fact or omits to state any material
fact necessary to make statements contained herein not misleading in all
material respects.  There is no material
fact presently known to PGE and/or Target which has not been disclosed to Last
Chance which adversely affects, nor as far as PGE and Target can foresee, would
reasonably be expected to have a material adverse effect upon the Option Assets
or Last Chance’s willingness to enter into this Agreement.  All representations, warranties, covenants
and agreements made in this Agreement by PGE and Target shall be deemed to have
been relied upon by Last Chance notwithstanding any investigation made by Last
Chance or on its behalf.

(J)                                   No
Material Adverse Change.  Since June
30, 2001, there has not been any material adverse change in the Option Assets
or the results of operation thereof (financial or otherwise), including
customer or employee or supplier relations or relations with any Governmental
Authority.

5.2                                 Last
Chance’s Representations and Warranties. 
Last Chance represents and warrants to PGE and Target as set forth in
this Section 5.2.  and that all such
representations and warranties are true and correct as of the date hereof and,
except as otherwise expressly provided herein, will be true and correct on the
as of the Closing and the close of escrow in the event of a purchase of the
Option Assets by Last Chance as provided for in Sections 2 or 3.

(A)                              Organization.  Last Chance is a corporation duly organized,
validly existing and in good standing under the laws of the State of Nevada and
every other jurisdiction in which the Last Chance does business, owns property
or has employees, and has all requisite power and authority to acquire the
rights granted or created by this Agreement.

(B)                                Articles
and By Laws.  The execution and
delivery of this Agreement does not, and the consummation of the transaction
contemplated hereby will not, conflict with the terms and provisions of the
Articles of Incorporation or the By Laws of Last Chance.

(C)                                Proper
Authority and Action, Binding Obligation. 
Last Chance has all requisite corporate power and authority to enter
into this Agreement and to perform its

 10
 

 

obligations thereunder.  Last Chance has taken all action necessary
under its organizational documents and applicable corporate law to authorize
the execution and delivery of this Agreement and the performance of its
obligations thereunder and has duly executed and delivered this Agreement.  The Agreement is the valid and binding
obligation of Last Chance, enforceable against Last Chance in accordance with
its terms.  Neither this Agreement nor
Last Chance’s performance of its obligations thereunder, will violate any
contractual obligations with any third party or contravene any law,
governmental rule, regulation, order, writ, injunction or decree applicable to
Last Chance.

6.                                      MISCELLANEOUS PROVISIONS.

6.1.                              Covenants
and Conditions.  All of the terms and
conditions of this Agreement are expressly intended to be construed as
covenants as well as conditions.

6.2.                              Notice.  Whenever under this Agreement a provision is
made for any demand, notice or declaration of any kind, or whether it is deemed
advisable or necessary by either party to give or serve any such notice, demand
or declaration to the other party, the notice shall be in writing and served
either personally or sent by certified or registered mail, return receipt
requested, postage prepaid, addressed to addresses set forth below:

	
  To PGE and Target:

  	
  Peter Stremmel

  
	
   

  	
  Prospector
  Gaming Enterprises, Inc.

  
	
   

  	
  1400 S. Virginia

  
	
   

  	
  Reno, Nevada
  89502

  
	
   

  	
   

  
	
  With a copy to:

  	
  David R. Grundy, Esq.

  
	
   

  	
  Lemons, Grundy
  & Eisenberg

  
	
   

  	
  6005 Plumas
  Street, Suite 300

  
	
   

  	
  Reno, Nevada
  89509

  
	
   

  	
   

  
	
  To Last Chance:

  	
  Ferenc B. Szony, President

  
	
   

  	
  Last Chance,
  Inc.

  
	
   

  	
  345 Arlington
  Ave.

  
	
   

  	
  Reno, Nevada
  89501

  
	
   

  	
   

  
	
  With a copy to:

  	
  David R. Wood, Treasurer

  
	
   

  	
  The Sands Regent

  
	
   

  	
  345 Arlington
  Ave.

  
	
   

  	
  Reno, Nevada
  89501

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Paul A. Bible,
  Esq.

  
	
   

  	
  Bible, Hoy &
  Trachok

  
	
   

  	
  201 West Liberty
  Street, Third Floor

  
	
   

  	
  Reno, Nevada
  89501.

  

 

 11
 

 

6.3                                 Parties
Bound; Assignment.  This Agreement
shall be binding on and inure to the benefit of and be enforceable by the
parties and their respective successors and assigns, provided, however, that
this Agreement may not be assigned by Last Chance without the prior written
consent of PGE and Target or by PGE and Target without the prior written
consent of Last Chance, which consent, by any party, shall not be unreasonably
withheld or delayed.

6.4                                 Effect
of Partial Invalidity.  Should any
section or any part of any section of this Agreement be rendered void, invalid
or unenforceable for any reason by any court of law exercising competent
jurisdiction, such a determination shall not render void, invalid or
unenforceable any other section or any part of any section in this agreement.

6.5                                 Choice
of Law and Venue.  This Agreement
shall be interpreted, governed and controlled by the laws of the State of
Nevada and venue for any litigation arising out of or related to this Agreement
shall be in Washoe County, Nevada.

6.6                                 Attorney’s
Fees.  In the event a party must retain
an attorney to enforce this Agreement or in the event of litigation which
arises as a result of any controversy, dispute, breach or construction of this
Agreement, the prevailing party shall be entitled to recover, from the other
party, all costs, expenses and reasonable attorney’s fees incurred in
connection with the enforcement efforts or litigation.

6.7                                 Modification.  This agreement may not be modified unless
such modification is in writing and signed by both parties to this Agreement.

6.8                                 Headings.
 The headings of this Agreement are
inserted for convenience and identification only and are in no way intended to
describe, interpret, define or limit the scope, extent or intent of this
Agreement or any provision hereof.

6.9                                 Waivers.  No waiver by any party hereto of any
provision hereof shall be deemed a waiver of any other provision hereof or of
any subsequent breach by the respective party of the same or any other
provision.  Any party’s consent to or
approval of any act shall not be deemed to render unnecessary the obtaining of
that party’s consent to or approval of any subsequent act by the breaching
party.

6.10                           Recording.  The parties hereto shall execute a memorandum
of option to purchase and right of first refusal in recordable form and either
party may record the memorandum.

6.11                           Approvals.  This Agreement shall be contingent upon Last
Chance receiving any and all required government approvals.  In the event that Last Chance is unable to
secure the required approvals, this Agreement shall terminate with no damages
claimed by any party against the other.

6.12                           Additional
Documents.  The parties hereto agree
to execute any additional documents, as may be reasonable and necessary to
carry out the provisions of this Agreement.

6.13                           No
Construction Against Drafting Party. 
This Agreement is not being offered on a take-it-or-leave-it basis.  Each party has been given an opportunity to
negotiate each term, propose new language or edits to existing language, and
has been given an opportunity to have

 12
 

 

the Agreement reviewed by an independent
attorney.  This Agreement is a joint
product of all parties and not one party. 
Therefore, the rule of construction that an ambiguous contract should be
construed against the drafting party shall not apply to this Agreement.

6.14                           Expenses.  Each party shall pay its own attorneys’ fees
incurred to document or negotiate this Agreement.

6.15                           Covenant
Running With Land.  All of the
covenants, conditions, and terms of this Agreement shall (i) be of benefit
to the parties, (ii) constitute a covenant running with the Option Assets,
and (iii) bind and inure to the benefit of the Parties and any Person acquiring
any interest in the Option Assets.

 13
 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.

	
  Target Investments, L.L.C.,

  	
  Last Chance, Inc.

  
	
  a Nevada limited
  liability company

  	
  a Nevada corporation

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Peter
  Stremmel

  	
   

  	
  By:

  	
  /s/ Ferenc Szony

  	
   

  
	
  Its: 

  	
  Partner

  	
  Its:

  	
  Pres/CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Prospector
  Gaming Enterprises, Inc.

  	
   

  	
   

  
	
  a Nevada
  Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Peter Stremmel

  	
   

  	
   

  	
   

  
	
  Its:

  	
  Partner

  	
   

  	
   

  

 

 14
 

 

 

	
  State of Nevada

  	
  )

  
	
   

  	
  ) ss.

  
	
  County of Washoe

  	
  )

  

 

This instrument was
acknowledged before me on the 27th day of December, 2001, by Peter Stremmel,
the Partner of Target Investments, LLC.

 

	
  

  	
  /s/ Yvonne Cody

  	
   

  
	
   

  	
  Notary Public

  

 

 

	
  State of Nevada

  	
  )

  
	
   

  	
  ) ss.

  
	
  County of Washoe

  	
  )

  

 

This instrument was acknowledged before me on the 27th day of December,
2001, by Peter Stremmel, the President of Prospector Gaming Enterprises, Inc.

 

	
  

  	
  /s/ Yvonne Cody

  	
   

  
	
   

  	
  Notary Public

  

 

 

	
  State of Nevada

  	
  )

  
	
   

  	
  ) ss.

  
	
  County of Washoe

  	
  )

  

 

This instrument was acknowledged before me on the 27th day of December,
2001, by Ferenc Szony, the President/CEO of Last Chance, Inc.

 

	
  

  	
  /s/ Yvonne Cody

  	
   

  
	
   

  	
  Notary Public

  

 

 15EXHIBIT
10.4

BOSTON CAPITAL REAL
ESTATE INVESTMENT TRUST, INC.

INDEPENDENT DIRECTOR
STOCK OPTION PLAN

FORM OF STOCK OPTION
AGREEMENT

THIS AGREEMENT dated as of               ,
20    , between Boston Capital Real Estate Investment
Trust, Inc., a corporation organized under the laws of the State of Maryland
(the “Company”), and the individual identified below, residing at the address
there set out (the “Optionee”).

1.             GRANT OF OPTION. 
Pursuant and subject to the Company’s Independent Director Stock Option
Plan (as in effect on the date hereof and as amended from time to time, the “Plan”),
the Company grants to you, the “Optionee,” an option (the “Option”) to purchase
from the Company all or any part of a total of                     
shares of the common stock, par value $.001 per share, in the Company (the
Company’s “Common Stock”), at a price of $       per
share of Common Stock.  The Grant Date of
this Option is as of            ,
20    .  In this
Agreement, we refer to the specific number of shares of Common Stock which are
the subject of this Option as your “Optioned Shares.”

2.             CHARACTER OF OPTION.  This Option is not intended to be treated as
an “incentive stock option” within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended.

3.             DURATION OF OPTION.  Subject to the following sentence, this
Option shall expire at 5:00 p.m. on              ,
20    . (1) However, if your service as an independent
director of the Company ends before that date, this Option shall expire at 5:00
p.m. on             ,
20     (2) or, if earlier, the date specified in whichever
of the following applies:

(a)           If the termination
of your service is on account of your death or disability, the six-month
anniversary of the date your service ends.

(b)           If the termination
of your service is due to any other reason other than for Cause, the 30th day
after your service ends.

(c)           If the termination
of your service is for Cause, immediately upon such termination.

(1)  The day immediately preceding the tenth
anniversary of the Grant Date.

(2)  Same as described in
footnote (1)

 

4.             EXERCISE OF OPTION.

(a)           Until this Option
expires and subject to the remainder of this Section 4, you may exercise it as
to the Optioned Shares, and from the dates, identified in (i) and (ii) below,
in full or in part, at any time on or after the applicable exercise date or
dates identified therein:

 2
 

(i)            As to all of the Optioned Shares, in the following
installments:

	
  NUMBER OF

  OPTIONED SHARES

  IN EACH INSTALLMENT

  	
   

  	
  INITIAL EXERCISE DATE
  FOR SHARES

  IN INSTALLMENT

  
	
  One-fifth

  	
   

  	
  On the Grant
  Date

  
	
  One-fifth

  	
   

  	
  First
  anniversary of the Grant Date

  
	
  One-fifth

  	
   

  	
  Second
  anniversary of the Grant Date

  
	
  One-fifth

  	
   

  	
  Third
  anniversary of the Grant Date

  
	
  One-fifth

  	
   

  	
  Fourth
  anniversary of the Grant Date

  

 

(ii)           Without duplication, as to all of the Optioned
Shares, in the event of a Change in Control.

(b)           During any period
that this Option remains outstanding after your service with the Company ends,
you may exercise it only to the extent it was exercisable immediately prior to
the end of your service.

(c)           You may pay the
exercise price due on exercise by delivering other shares of Common Stock of
equivalent Fair Market Value provided you have owned such shares of Common
Stock for at least six months.

(d)           Subject to the
foregoing, the procedure for exercising this Option is as described in Section
2.4(a) of the Plan.

5.             TRANSFER OF OPTION.  You may not transfer this Option except by
will or the laws of descent and distribution, and, during your lifetime, only
you may exercise this Option.

6.             INCORPORATION OF PLAN TERMS.  This Option is granted subject to all of the
applicable terms and provisions of the Plan, including but not limited to the
limitations on the Company’s obligation to deliver Optioned Shares upon
exercise set forth in Sections 2.1(a) and 3.7.

7.             ACKNOWLEDGMENTS. 
You acknowledge that you have previously received or have been advised
that you may on request receive a copy of the Plan.  You further acknowledge that the Company makes
no representation or warranty to you as to the tax treatment to you of your
receipt or exercise of this Option or upon your sale or other disposition of
the Optioned Shares.  You should rely on
your own tax advisors for such advice.

8.             MISCELLANEOUS.  This Agreement shall be construed and enforced
in accordance with the laws of The Commonwealth of Massachusetts, without
regard to the conflict of laws principles thereof and shall be binding upon and
inure to the benefit of any successor or assign of the Company and any
executor, administrator, trustee, guardian, or other legal representative of
you.  Capitalized terms used but not
defined herein shall have the respective meanings assigned under the Plan.  This Agreement may be executed in one or more
counterparts all of which together shall constitute but one instrument.  In making proof of this Agreement it shall
not be necessary to produce or account for more than one such counterpart.

 3
 

IN WITNESS WHEREOF, the parties have executed this
Agreement as a sealed instrument as of the date first above written.

 

	
  BOSTON CAPITAL REAL ESTATE

  INVESTMENT TRUST, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature of
  Optionee

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name of Optionee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Optionee’s
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

 4

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