Document:

Exhibit
10.7

 

SPORTS ENTERTAINMENT ENTERPRISES, INC.

 

 

Series A Convertible Redeemable Preferred Stock

Common Stock

Warrants

 

 

 

STOCK PURCHASE AGREEMENT

 

 

 

Dated as of February 7, 2005

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  DEFINITIONS

  	
   

  
	
  2.

  	
  PURCHASE AND
  SALE OF SHARES

  	
   

  
	
   

  	
  2.1

  	
  Sale and Issuance of Series A Convertible
  Senior Preferred Shares

  	
   

  
	
   

  	
  2.2

  	
  Sale and
  Issuance of Common Shares; Issuance of Warrants

  	
   

  
	
   

  	
  2.3

  	
  The Closing

  	
   

  
	
  3.

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE COMPANY

  	
   

  
	
   

  	
  3.1

  	
  Organization, Good Standing and
  Qualification

  	
   

  
	
   

  	
  3.2

  	
  Authorization

  	
   

  
	
   

  	
  3.3

  	
  Absence of Defaults and Conflicts

  	
   

  
	
   

  	
  3.4

  	
  Absence of Proceedings

  	
   

  
	
   

  	
  3.5

  	
  Tax Returns and Payments

  	
   

  
	
   

  	
  3.6

  	
  Governmental Consents

  	
   

  
	
   

  	
  3.7

  	
  Investment Company Act

  	
   

  
	
   

  	
  3.8

  	
  Subsidiaries

  	
   

  
	
   

  	
  3.9

  	
  Capitalization

  	
   

  
	
   

  	
  3.10

  	
  Certain Changes or Events

  	
   

  
	
   

  	
  3.11

  	
  Financial Statements and Reports

  	
   

  
	
   

  	
  3.12

  	
  SEC Reports

  	
   

  
	
   

  	
  3.13

  	
  No Undisclosed Brokers or Finders Fees

  	
   

  
	
   

  	
  3.14

  	
  Registration Rights

  	
   

  
	
   

  	
  3.15

  	
  Private Placement

  	
   

  
	
   

  	
  3.16

  	
  Environmental and Safety Laws

  	
   

  
	
   

  	
  3.17

  	
  ERISA

  	
   

  
	
   

  	
  3.18

  	
  Compliance

  	
   

  
	
   

  	
  3.19

  	
  Employees

  	
   

  
	
   

  	
  3.20

  	
  Books and Records

  	
   

  
	
   

  	
  3.21

  	
  Contribution and Exchange Agreement

  	
   

  
	
   

  	
  3.22

  	
  Sufficiency of Assets

  	
   

  
	
   

  	
  3.23

  	
  Affiliate Arrangements

  	
   

  
	
  4.

  	
  REPRESENTATIONS AND WARRANTIES OF
  THE INVESTORS

  	
   

  

 

i

 

	
   

  	
  4.1

  	
  Organization

  	
   

  
	
   

  	
  4.2

  	
  Authorization

  	
   

  
	
   

  	
  4.3

  	
  No Intended
  Resale

  	
   

  
	
   

  	
  4.4

  	
  Restricted
  Securities

  	
   

  
	
   

  	
  4.5

  	
  Investor
  Representations

  	
   

  
	
   

  	
  4.6

  	
  Legends

  	
   

  
	
   

  	
  4.7

  	
  Brokers or
  Finders

  	
   

  
	
  5.

  	
  COVENANTS

  	
   

  
	
   

  	
  5.1

  	
  Payment of
  Taxes and Claims

  	
   

  
	
   

  	
  5.2

  	
  Maintenance of
  Properties and Corporate Existence

  	
   

  
	
   

  	
  5.3

  	
  Compliance with
  Law

  	
   

  
	
   

  	
  5.4

  	
  Financing
  Purposes

  	
   

  
	
   

  	
  5.5

  	
  Reports

  	
   

  
	
   

  	
  5.6

  	
  Availability of
  Common Stock

  	
   

  
	
   

  	
  5.7

  	
  Delivery of
  Cash or Issuance of Additional Shares

  	
   

  
	
   

  	
  5.8

  	
  Transactions
  with Related Parties

  	
   

  
	
   

  	
  5.9

  	
  Right of First
  Offer

  	
   

  
	
   

  	
  5.10

  	
  Insurance

  	
   

  
	
   

  	
  5.11

  	
  Issuance of
  Warrants

  	
   

  
	
   

  	
  5.12

  	
  Appraisal of
  the Preferred Shares

  	
   

  
	
  6.

  	
  CONDITIONS TO
  OBLIGATIONS OF THE INVESTORS

  	
   

  
	
  7.

  	
  CONDITIONS TO
  OBLIGATIONS OF THE COMPANY

  	
   

  
	
  8.

  	
  TERMINATION.

  	
   

  
	
   

  	
  8.1

  	
  Termination

  	
   

  
	
   

  	
  8.2

  	
  Effect of
  Termination

  	
   

  
	
   

  	
  8.3

  	
  Fees and Expenses

  	
   

  
	
  9.

  	
  INDEMNIFICATION

  	
   

  
	
   

  	
  9.1

  	
  Indemnification
  of the Investor Indemnified Parties

  	
   

  
	
   

  	
  9.2

  	
  Cooperation

  	
   

  
	
   

  	
  9.3

  	
  Limitations on
  Indemnification

  	
   

  
	
   

  	
  9.4

  	
  Notice to
  Indemnifying Party

  	
   

  
	
   

  	
  9.5

  	
  Defense by
  Indemnifying Party

  	
   

  
	
   

  	
  9.6

  	
  Investors as
  Indemnified Party

  	
   

  

 

ii

 

	
   

  	
  9.7

  	
  Survival of
  Representations and Warranties

  	
   

  
	
  10.

  	
  REGISTRATION,
  TRANSFER AND SUBSTITUTION OF SHARE REGISTER

  	
   

  
	
  11.

  	
  RESTRICTIONS ON
  TRANSFER; CERTAIN OTHER RESTRICTIONS

  	
   

  
	
   

  	
  11.1

  	
  Restrictions
  Generally

  	
   

  
	
   

  	
  11.2

  	
  Legend

  	
   

  
	
   

  	
  11.3

  	
  Furnishing of
  Information

  	
   

  
	
   

  	
  11.4

  	
  Certain Other
  Restrictions

  	
   

  
	
  12.

  	
  MISCELLANEOUS.

  	
   

  
	
   

  	
  12.1

  	
  Amendments
  and Waivers

  	
   

  
	
   

  	
  12.2

  	
  No Waiver

  	
   

  
	
   

  	
  12.3

  	
  Assignability

  	
   

  
	
   

  	
  12.4

  	
  Entire
  Agreement

  	
   

  
	
   

  	
  12.5

  	
  Notices

  	
   

  
	
   

  	
  12.6

  	
  Governing
  Law; Submission to Jurisdiction

  	
   

  
	
   

  	
  12.7

  	
  Waiver of
  Jury Trial

  	
   

  
	
   

  	
  12.8

  	
  Severability

  	
   

  
	
   

  	
  12.9

  	
  Third Party
  Beneficiaries

  	
   

  
	
   

  	
  12.10

  	
  Descriptive
  Headings, Etc

  	
   

  
	
   

  	
  12.11

  	
  Counterparts,
  Execution and Delivery by Facsimile

  	
   

  
	
   

  	
  12.12

  	
  Interpretation

  	
   

  
	
   

  	
  12.13

  	
  Binding
  Effect

  	
   

  
	
   

  	
  12.14

  	
  Publicity

  	
   

  
	
   

  	
  12.15

  	
  Further
  Assurances

  	
   

  

 

iii

 

	
  Appendices

  	
   

  
	
   

  	
   

  
	
  Appendix 1

  	
   

  
	
   

  	
   

  
	
  Exhibits

  	
   

  
	
   

  	
   

  
	
  A – Form of Investor Warrants

  	
   

  
	
  B – Form of Registration Rights Agreement

  	
   

  
	
  C – Form of Articles of Amendment

  	
   

  
	
  D – Form of Opinion of Counsel

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Disclosure Schedules

  	
   

  
	
   

  	
   

  
	
  3.4 – Proceedings

  	
   

  
	
  3.6 – Consents

  	
   

  
	
  3.8 –
  Subsidiaries

  	
   

  
	
  3.9 –
  Capitalization

  	
   

  
	
  3.10 – Certain
  Changes or Events

  	
   

  
	
  3.11 – Financial
  Statements and Reports

  	
   

  
	
  3.12 – SEC
  Reports

  	
   

  
	
  3.13 – Fees

  	
   

  
	
  3.14 –
  Registration Rights

  	
   

  
	
  3.17 – ERISA

  	
   

  
	
  3.23 – Affiliate
  Arrangements

  	
   

  
	
  4.7 – Brokers

  	
   

  
	
  5.4 – Financing
  Purposes

  	
   

  

 

iv

 

STOCK PURCHASE AGREEMENT

 

STOCK PURCHASE AGREEMENT,
dated as of February 7, 2005, by and between SPORTS ENTERTAINMENT
ENTERPRISES, INC., a Colorado corporation with its principal office located at
6730 South Las Vegas Boulevard, Las Vegas, Nevada 89119 (the “Company”), and each of the
investors listed on Appendix 1 hereto (each, an “Investor,”
and collectively, the “Investors”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to that
certain Purchase Agreement, dated as of December 15, 2004 (the “Common Stock Purchase Agreement”),
by and among the Company, certain stockholders of the Company signatory thereto
(the “Principal Stockholders”) and RFX
Acquisition LLC, a Delaware limited liability company (the “Purchaser”), the Company proposes
to issue to the Purchaser, and Purchaser proposes to acquire from the Company,
34,170,124 shares of common stock, no par value, of the Company (the “Common Stock”);

 

WHEREAS, in connection
with the transactions contemplated by the Common Stock Purchase Agreement, the
Company has agreed to issue to Purchaser (i) $1.00 Warrants to purchase
6,828,939 shares of Common Stock, (ii) $1.50 Warrants to purchase 6,828,939
shares of Common Stock, and (iii) $2.00 Warrants to purchase 6,828,939 shares
of Common Stock (collectively, the “Purchaser Warrants”);

 

WHEREAS, in connection
with the transactions contemplated by the Common Stock Purchase Agreement,
Purchaser has agreed to purchase 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
Agreement”);

 

WHEREAS, the Company and
the Purchaser are parties to a Contribution and Exchange Agreement, dated as of
December 15, 2004 (the “Contribution Agreement”)
with The Promenade Trust, a grantor trust organized under the laws of the State
of Tennessee (the “Trust”),
pursuant to which, among other things, the Trust has agreed to contribute to
the Company an interest in certain assets, properties and rights of the Trust;

 

WHEREAS, all the
transactions, contributions, transfers and assignments contemplated by this
Agreement, the Contribution Agreement, the Investor Warrants and the Common
Stock Purchase Agreement are intended to be part of a single integrated plan
and are together intended to qualify as a tax-free contribution to the capital
of the Company under Section 351 of the Internal Revenue Code;

 

WHEREAS, for the purpose
of financing partially the transactions contemplated by the Common Stock
Purchase Agreement, the Principal Stockholder Sale Agreement and the
Contribution Agreement (collectively, the “Concurrent Transaction
Agreements”), the Company desires to consummate a financing in
the aggregate amount of $43,818,605 (the “Financing”);

 

WHEREAS, each of the
Investors desires to provide the Company the Financing through 

 

 

the purchase of
2,172,400 shares of Series A Convertible Redeemable Preferred Stock, no par
value (the “Series A Preferred Stock” or
the “Preferred Shares”) and the purchase
of 3,706,052 shares of Common Stock (the “Common Shares”
and together with the Preferred Shares, the “Shares”);
and

 

WHEREAS, the Parties
desire to set forth the terms and conditions of and to provide for the issuance
by the Company of the Preferred Shares and the Common Shares described herein.

 

NOW THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereby agree as follows:

 

1.     Definitions.  The following terms when used in this
Agreement, including its preamble and recitals, shall, except where the context
otherwise requires, have the following meanings (such meanings to be equally
applicable to the singular and plural forms thereof):

 

“$1.00
Warrant” means a warrant to purchase one share of Common Stock
with an exercise price of $1.00 and a term expiring two years after the Closing
Date.

 

“$1.50
Warrant” means a warrant to purchase one share of Common Stock
with an exercise price of $1.50 and a term expiring two years after the Closing
Date.

 

“$2.00
Warrant” means a warrant to purchase one share of Common Stock
with an exercise price of $2.00 and a term expiring two years after the Closing
Date.

 

“Accredited
Investor” has the meaning specified in Rule 501 of Regulation D
promulgated under the Securities Act.

 

“Actions”
has the meaning specified in Section 3.4.

 

“Affiliate”
as applied to any Person, means any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with,
such Person. For 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 such Person, whether through the ownership of voting
securities, by contract or otherwise, and, in addition to the foregoing, a
Person shall be deemed to control another Person if the controlling Person owns
15% or more of any class of voting securities (or other ownership interest) of
the controlled Person. In the case of the Company, Affiliate shall include the
Primary Sponsor and any of his Affiliates.

 

“Affiliate
Transaction” has the meaning specified in Section 5.8.

 

“Agreement”
means this Stock Purchase Agreement (including any Schedules, Appendices and
Exhibits hereto), as such agreement may be amended, supplemented or otherwise
modified from time to time in accordance with the terms hereof.

 

“Agreements
and Instruments” has the meaning specified in Section 3.3.

 

2

 

“Articles
of Amendment” has the meaning specified in Section 2.1.

 

“Audited
Financial Statements” has the meaning specified in Section 3.11.

 

“Bankruptcy”
means, with respect to any Person, the happening of any of the following
events:

 

(i)            such
Person shall commence a proceeding or make an application or petition to a
court or other judicial or administrative forum for an order that such Person
be declared bankrupt or insolvent or be wound up or that an order be entered
for the liquidation, reorganization or for other relief with respect to the
debts of such Person or that a provisional liquidator be appointed;

 

(ii)           any
application shall be made or any involuntary case or proceeding shall be
commenced against such Person seeking liquidation, reorganization or other
relief with respect to it or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian, administrator or other similar
official of it or any substantial part of its property (unless the application
is withdrawn, struck out or dismissed, or the case or proceeding is dismissed
or terminated, within 30 days of it being made); or

 

(iii)          a
liquidator is appointed for such Person.

 

“Board”
or “Board of Directors” means the Board
of Directors of the Company or a committee consisting of one or more directors
lawfully exercising the relevant powers of the Board.

 

“Business Day”
means each day other than a Saturday, Sunday or any other day on which
commercial banks and national stock exchanges located in New York, New York are
authorized or required by law to be closed.

 

“Capital
Stock” means, with respect to any Person, any and all shares,
interests, warrants, options, participations, rights to acquire or other
equivalents (however designated, whether voting or non-voting) in equity of
such Person, whether now outstanding or issued subsequent hereto, including,
without limitation, all series and classes of Common Stock and Preferred Stock.

 

“CERCLA”
means the federal Comprehensive Environmental Response, Compensation and
Liability Act of 1980 (42 U.S.C. 9601 et seq.) and the rules and regulations
promulgated thereunder.

 

“Closing”
has the meaning specified in Section 2.3.

 

“Closing
Date” means the date on which the Closing occurs.

 

“Commission”
means the Securities and Exchange Commission or any other Federal agency at the
time administering the Securities Act.

 

3

 

“Common
Stock” has the meaning specified in the Preamble.

 

“Company”
has the meaning specified in the Preamble.

 

“Conversion
Shares” or “Conversion Stock”
means the shares of the Company’s Common Stock issued or issuable (as the
context may require) upon conversion of the Series A Preferred Stock in
accordance with the Articles of Amendment.

 

“Concurrent
Transaction Agreements” has the meaning specified in the
Recitals.

 

“Concurrent
Transactions” means the transactions contemplated by the Common
Stock Purchase Agreement, the Principal Stockholder Sale Agreement and the
Contribution Agreement.

 

“Contribution
Agreement” has the meaning specified in the Recitals.

 

“Disclosure
Schedule” means the written exceptions and schedules to the
representations and warranties of the Company delivered to the Investors in
connection with this Agreement.

 

“Environmental
Law” means any federal, state or local law, statute, rule or
regulation relating to public health or safety, pollution, damage to or
protection of the environment, environmental conditions, releases or threatened
releases of Hazardous Substances into the environment or the use, manufacture,
processing, distribution, treatment, storage, generation, disposal, transport
or handling of Hazardous Substances, whether existing in the past or present or
hereafter enacted, rendered, adopted or promulgated prior to the Closing Date,
including without limitation, the following laws, and the regulations
promulgated thereunder, as the same may be amended from time to time prior to
the Closing Date: CERCLA (as defined below), the Resource Conservation and
Recovery Act of 1976 (42 U.S.C. 6901 et seq.), the Clean Air Act (42 U.S.C.
7401 et seq.); and the Clean Water Act (33 U.S.C. 1251 et seq.).  As used in the context of Environmental Law,
the terms “release” and “environment” shall have the meaning set forth in
CERCLA.

 

“Equity
Package” means, collectively, (i) the Preferred Shares and
(ii) the Common Stock into which the Preferred Shares being acquired by
the Investors pursuant hereto are converted or convertible, in each case, after
giving effect to any stock split, stock dividend, recapitalization, merger,
consolidation or similar event occurring after the date hereof that effects a
change in the capitalization of the Company.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“Excess
Affiliate Payment” has the meaning specified in Section 5.8.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder, all as the same shall be in
effect at the time.

 

“External
Investor Sales” means the sale of a portion or all of the Equity
Package by any of the Investors to any Person other than another Investor or a
Permitted Transferee.  For purposes of
determining whether the Investors have sold any Conversion Shares, any sale of 

 

4

 

Common Stock made
by an Investor after the conversion of any Preferred Stock shall be deemed a
sale of Conversion Shares unless within fifteen (15) days after the sale the
Investor notifies the Company that it does not deem such sale of Common Stock
to be a sale of Conversion Stock.

 

“Fair
Market Value” means, for any non-cash consideration, the value
that would be paid by a willing buyer to an unaffiliated willing seller in a
transaction not involving distress or necessity of either party determined in
good faith by the Majority in Interest of the Investors and certified to the
Company.  Fair Market Value of any
capital stock of a Person issued in connection therewith shall be determined
based on the closing price (or last bid price) of such capital stock on the
Business Day before the date such capital stock is issued (if such capital stock
is not common stock and is convertible into common stock that is publicly
traded, it shall be valued as if converted into common stock after the close of
business on the day immediately prior to the date such capital stock is issued,
and no deduction shall be taken therefrom on account of the illiquidity of such
capital stock).  If such capital stock is
not listed or quoted on any national securities exchange or U.S. inter-dealer
quotation system of a registered national securities association, or convertible
into any capital stock that is listed or quoted on any national securities
exchange or U.S. inter-dealer quotation system of a registered national
securities association, the Fair Market Value of such capital stock shall be
determined in good faith by the Majority in Interest of the Investors and
certified to the Company.

 

“Financial
Statements” has the meaning specified in Section 3.11.

 

“Financing”
has the meaning specified in the Recitals.

 

“Financing
Purposes” means the consummation of the transactions
contemplated by the Concurrent Transactions Documents and the Financing.

 

“Fund
Commitment” means the sum of (i) the purchase price of the
Preferred Shares to be purchased by the Investors pursuant to this Agreement
plus (ii) the purchase price of the Common Shares to be purchased by the
Investors pursuant to this Agreement plus (iii) the purchase price of the
Investor Warrants.

 

“GAAP”
means United States generally accepted accounting principles as in effect on
the date hereof, including, without limitation, those set forth in the opinions
and pronouncements of the Accounting Principles Board of the American Institute
of Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board or in such other statements by such other
entity as approved by a significant segment of the accounting profession.

 

“Governmental
Authority” shall mean any: (a) state, commonwealth, county,
municipality, district or other domestic jurisdiction of any nature; (b)
federal, state, local, municipal or other government; or (c) governmental or
quasi governmental authority of any nature (including any governmental
division, subdivision, department, agency, registering authority, bureau,
branch, office, commission, council, self-regulatory organization, board,
instrumentality, officer, official, representative, organization, unit, body or
Person and any court or other tribunal).

 

“Governmental
Authorization” shall mean any permit, license, certificate,
franchise, 

 

5

 

concession,
approval, consent, ratification, permission, clearance, confirmation,
endorsement, waiver, certification, designation, rating, registration,
qualification or authorization issued, granted, given or otherwise made available
by or under the authority of any Governmental Authority or pursuant to any
Legal Requirement.  Notwithstanding
anything to the contrary contained herein, for purposes of Section 3.6 the
term “Governmental Authorization” shall not include any patent issued by or
pending with any Governmental Authority, any trademark registered with any
Governmental Authority or any other intellectual property registered with or
recognized by any Governmental Authority or any employee benefit plan
maintained pursuant to any Legal Requirement.

 

“Gross
Sale Consideration” is equal to the net cash proceeds received
in connection with any External Investor Sale plus the Fair Market Value of any
non-cash consideration or any capital stock of another Person issued in connection
therewith.

 

“Hazardous
Substances” means any substance presently listed, defined,
designated or classified as hazardous, toxic or radioactive under any
applicable Environmental Law or regulated by any Governmental Authority
including petroleum and any derivatives or by-products thereof, asbestos,
presumed asbestos-containing material or asbestos-containing material, urea
formaldehyde and polychlorinated biphenyls and including any material,
substance or waste which is defined as a “hazardous waste,” “hazardous
material,” “hazardous substance,” “extremely hazardous waste,” “restricted
hazardous waste,” “contaminant,” “toxic waste” or “toxic substance” under any
provision of any Environmental Law.

 

“Holder”
means, with respect to each Share, the Person in whose name such Share is
registered in the register maintained by the Company pursuant to Section 10.

 

“Independent
Appraisal” means an appraisal issued by an accounting, appraisal
or investment banking firm selected by the Investors from time to time, for
purposes of making an annual appraisal of the assets owned by the Investors.

 

“Interim
Financial Statements” has the meaning specified in Section 3.11.

 

“Internal
Revenue Code” means the Internal Revenue Code of 1986, as
amended.

 

“Investment”
in any Person means any direct or indirect advance, loan or other extension of
credit (including without limitation by way of guarantee or similar
arrangement, but excluding advances to customers in the ordinary course of
business that are, in conformity with GAAP, recorded as accounts receivable on
the balance sheet of the Company) or capital contribution to (by means of any
transfer of cash or other property to others or any payment for property or
services for the account or use of others), or any purchase or acquisition of
Capital Stock, bonds, notes, debentures or other similar instruments issued by,
such Person.

 

“Investment
Company Act” means the Investment Company Act of 1940, as
amended.

 

“Investor”
and “Investors” has the meaning
specified in the Preamble.

 

“Investor
Warrants” means, collectively, the Common Stock Purchase
Warrants with respect to 1,860,660 of the $1.00 Warrants, the Common Stock
Purchase Warrants with respect 

 

6

 

to 1,860,660 of
the $1.50 Warrants and the Common Stock Purchase Warrants with respect to
1,860,661 of the $2.00 Warrants, each issued by the Company at the Closing in
substantially the form of Exhibit A hereto, as such warrants may
thereafter be amended, supplemented or otherwise modified from time to time in
accordance with the respective terms thereof.

 

“Knowledge”
with respect to a Person means the actual knowledge of such Person, after
reasonable inquiry or investigation.  For
purposes of this Agreement, the phrase “Knowledge of the Company” or phrases of
similar import shall mean the actual knowledge of Jack Soden, Gary Hovey, Tom
Benson and Jason Horowitz, after reasonable inquiry or investigation. 

 

“Legal
Requirement” shall mean any federal, state, local, municipal,
foreign or other law, statute, legislation, constitution, principle of common
law, resolution, ordinance, code, edict, decree, proclamation, treaty,
convention, rule, regulation, ruling, directive, pronouncement, requirement,
specification, determination, decision, opinion or interpretation that is or
has been issued, enacted, adopted, passed, approved, promulgated, made,
implemented or otherwise put into effect by or under the authority of any
Governmental Authority.

 

“Lien”
means any mortgage, pledge, security interest, encumbrance, lien, claim,
litigation or charge of any kind whatsoever (including, without limitation, any
conditional sale or other title retention agreement or lease in the nature
thereof or any agreement to give any security interest).

 

“Majority
in Interest of the Investors” means Investors holding more than
50% of the total of (i) the number of shares of Common Stock owned by the
Investors plus (ii) the number of shares of Common Stock into which the
Preferred Shares are convertible plus (iii) the number of shares of Common
Stock for which the Investor Warrants are exercisable.  For purposes of the determination of the
Majority in Interest of the Investors, all Preferred Shares and Investor
Warrants shall be treated as if they had been converted into Common Stock as of
12:01 a.m. on such date of determination.

 

“Market
Price” means, with respect to any security, the last reported
sale price of such security on any national securities exchange or U.S.
inter-dealer quotation system of a registered national securities association
on which such security is then listed or quoted.

 

“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, prospects, condition (financial or otherwise),
cash flows or results of operations of the Company and its subsidiaries,
considered as an entirety and after giving effect to the consummation of the
Concurrent Transactions; provided, however, that there 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 

 

7

 

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.

 

“Order”
has the meaning specified in Section 3.4.

 

“Party”
or “Parties” means the Company and the
Investors individually or collectively, as the case may be.

 

“Permitted
Transferee” means, (i) with respect to any Investor, any
other Investor or any controlled Affiliate of such Investor that has as its
principal business and purpose to acquire, hold, maintain, finance, manage or
dispose of investments in other entities, (ii) with respect to any
Investor that is a limited partnership or general partnership or a limited
liability company, any limited partner, general partner or member in connection
with a distribution to limited partners, any general partner or member,
(iii) with respect to any Investor that is a trust, all the beneficiaries
of such trust or the grantor of the trust, and (iv) with respect to any
Investor, any investment fund or vehicle for which such Investor or any of its
Affiliates acts as an investment advisor or portfolio manager.

 

“Person”
means any individual, partnership, limited liability company, corporation,
joint venture, association, trust, unincorporated organization, government or
agency or political subdivision thereof or any other entity of whatever nature.

 

“Preferred
Stock” as applied to the Capital Stock of any corporation, means
Capital Stock of any class or classes (however designated) which is preferred
as to the payment of dividends, or as to the distribution of assets upon any
voluntary or involuntary liquidation or dissolution of such corporation, over shares
of Capital Stock of any other class of such corporation.

 

“Preferred
Shares” has the meaning specified in the Recitals.

 

“Primary
Sponsor” means Robert F.X. Sillerman.

 

“Principal
Stockholder Sale Agreement” has the meaning specified in the
Recitals.

 

“Principal
Stockholders” has the meaning specified in the Recitals.

 

“Purchaser”
has the meaning specified in the Recitals.

 

“Purchaser
Warrants” has the meaning specified in the Recitals.

 

“Registration
Rights Agreement” means the registration rights agreement by and
among the Parties hereto and certain other stockholders, to be entered into at
the Closing, substantially in the form of Exhibit B hereto and as such
agreement may be amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof.

 

8

 

“Required
Filing Dates” has the meaning specified in Section 5.5.

 

“Response
Period” has the meaning specified in Section 5.9.

 

“Responsible
Officer” shall mean the Chairman, President and Chief Executive
Officer, Chief Financial Officer, any Executive Vice President, any Senior Vice
President, any Vice President, the Secretary and any Assistant Secretary of the
Company.

 

“Restricted
Securities” means (i) any shares of Series A Preferred Stock or
Common Stock sold pursuant to this Agreement or issued upon the conversion of
such Series A Preferred Stock or upon the exercise of the Investor Warrants
held or hereafter acquired by any Holder and (ii) any Capital Stock or
other securities held or hereafter acquired by any Holder which are issued or
issuable in respect of the securities referred to in clause (i) of this
definition in exchange for or upon conversion or exercise of such securities or
by way of a stock dividend, subdivision, reclassification, recapitalization,
split, combination, merger, consolidation, reorganization or such similar
event.

 

“Returns”
has the meaning specified in Section 3.5.

 

“Right of
First Offer Election” has the meaning specified in Section 5.9.

 

“Right of First
Offer Notice” has the meaning specified in Section 5.9.

 

“Schedules”
means the schedules attached to the Disclosure Schedule.

 

“SEC
Reports” has the meaning specified in Section 3.12.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any
similar federal statute and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

 

“Series A
Preferred Stock” means the Series A Convertible Redeemable
Preferred Stock, no par value, of the Company, having the number of votes per
share equal to the number of shares of Common Stock into which one share of
Series A Convertible Preferred Stock is convertible.

 

“Series B
Preferred Stock” means the Series B Convertible Preferred Stock,
no par value, of the Company, having the number of votes per share equal to the
number of shares of Common Stock into which one share of Series B Convertible
Preferred Stock is convertible.

 

“Series C
Preferred Stock” means the Series C Convertible Preferred Stock,
no par value, of the Company.

 

“Shares”
has the meaning specified in the Recitals.

 

“SOXA”
means the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated
thereunder, all as the same shall be in effect from time to time.

 

9

 

“Subsidiaries”
means, with respect to any Person, any corporation, association or other
business entity of which more than fifty percent (50%) of the voting power of
the outstanding Voting Stock is owned, directly or indirectly, by such Person
or one or more Subsidiaries of such Person.

 

“Tax”
means any federal, state, local, or foreign income, gross receipts, license,
payroll, employment, excise, severance, stamp, occupation, premium, windfall
profits, environmental, customs duties, capital stock, franchise, profits,
withholding, social security (or similar), unemployment, disability, real
property, personal property, sales, use, transfer, registration, value added,
alternative or add-on minimum, estimated, or other tax, fee, levy, duty,
tariff, impost and other charges of any kind whatsoever, including any
interest, penalty, or addition thereto, whether disputed or not imposed by any
governing or taxing authority.

 

“Third
Party Private Equity Financing Transaction” means the issuance
and sale of Capital Stock in the Company (or any securities of the Company
convertible into Capital Stock in the Company other than such convertible debt
securities with respect to which Bear, Stearns & Co. Inc. is permitted to
act as book runner or placement agent pursuant to that certain Engagement
Letter, dated as of December 10, 2004, between Bear, Stearns & Co. Inc. and
RFX Acquisition LLC, after giving effect to any novation thereof in favor of
the Company) to any investor or other financing source other than to
(i) participants in any incentive option plan adopted by the Company
pursuant to which grants of Capital Stock or instruments comprising derivatives
of Capital Stock (such as share appreciation rights, phantom stock plans, etc.)
are issued or (ii) the seller or purchaser, as the case may be, in any
sale or acquisition by the Company of personal property or real property, which
such issuance and sale is not made in connection with a public offering of the
Capital Stock of the Company or a “PIPES” or comparable transaction.

 

“Total
Return” as of any determination date means the sum of
(i) the number of shares of Common Stock to be issued upon the conversion
of the Preferred Shares then held by the Investors multiplied by the closing
price (or last bid price) of the Common Stock on any national securities
exchange or U.S. inter-dealer quotation system of a registered national
securities association on which such Common Stock is then listed or quoted on
any date of determination, (ii) the Gross Sale Consideration from all
External Investor Sales, (iii) the amount of any cash dividends or
distributions paid to the Investors on the Preferred Shares or on the Common
Stock received upon conversion of the Preferred Shares, (iv) the Market Price
as of the determination date of any registered publicly traded stock (to the
extent not already included in clause (ii)) issued to the Investors as a
dividend or distribution in respect of Preferred Shares plus any cash received
in respect of the disposition of any other non-cash dividends or distributions
made to the Investors in respect of the Preferred Shares, and (v) the value
attributed to any non-cash dividends or distributions paid to the Investors on
the Preferred Shares or on the Common Stock received upon conversion of the
Preferred Shares (the “Non-Cash Value”),
which Non-Cash Value shall be determined by the Investors in their sole
discretion and which Non-Cash Value is not required to be the fair market value
thereof; provided however, if the Company disagrees with such Non-Cash Value,
the Company shall have the option of purchasing such non-cash dividends or
distributions from the Investors by paying the Non-Cash Value to the Investors
on the date the Total Return Shortfall is payable, in which case non-cash dividends
or distributions shall not be included in the calculation of Total Return.

 

10

 

“Total
Return Shortfall” as of any determination date is equal to the
Total Return Threshold as of such date minus the Total Return as of such date;
provided that if such amount is less than 0, the Total Return Shortfall as of
such date of determination shall be equal to 0.

 

“Total
Return Threshold” as of any determination date means the product
of (i) the Fund Commitment multiplied by (ii) the result of an
exponential equation with the base number equal to 1.08 and the exponent equal
to the number of full and partial years commencing on the Closing Date and
ending on such date of determination.

 

“Transaction
Documents” means this Agreement and all documents delivered in
connection with the transactions contemplated by this Agreement, including
without limitation, the Articles of Amendment, the Registration Rights
Agreement and the Investor Warrants.

 

“Transfer”
means, with respect to any Restricted Securities, directly or indirectly, any
sale, transfer, assignment, or other disposition of such Restricted Securities
or any interest therein (whether with or without consideration and whether
voluntarily or involuntarily or by operation of law).

 

“Transfer
Agent” means the entity designated from time to time by the
Company to act as the registrar and transfer agent for the Series A Preferred
Stock.

 

“Trust”
has the meaning specified in the Recitals.

 

 “Voting Stock”
means with respect to any Person, Capital Stock of any class or kind ordinarily
having the power to vote for the election of directors, managers or other
voting members of the governing body of such Person.

 

“Warrant
Shares” means the shares of the Company’s Common Stock issuable
upon exercise of the Investor Warrants.

 

2.     Purchase
and Sale of Shares.

 

2.1           Sale
and Issuance of Series A Convertible Senior Preferred Shares.

 

(i)            The
Company shall adopt and file with the Secretary of State of the State of
Colorado on or before the Closing Date Articles of Amendment to the Articles of
Incorporation of the Corporation in the form attached hereto as Exhibit C
(the “Articles of Amendment”).  The rights, preferences and privileges of the
Preferred Shares will be as provided in the Articles of Amendment.

 

(ii)           Subject
to the terms and conditions of this Agreement, each of the Investors agrees,
severally and not jointly, to purchase from the Company at the Closing, and the
Company agrees to sell and issue to each of the Investors at the Closing, that
number of shares of Series A Preferred Stock as is set forth opposite such
Investor’s name on Appendix 1 for the cash purchase price of $20.00 per
share, with the aggregate amount to be paid by each Investor for the Preferred
Shares to be acquired by such Investor being as stated on Appendix 1
opposite such Investor’s name.  The
Company’s agreements with each of the Investors are conditional on each 

 

11

 

other and the sale of the
Preferred Shares to each of the Investors shall only occur if all such sales of
Preferred Shares are consummated.

 

2.2           Sale
and Issuance of Common Shares; Issuance of Warrants.

 

(i)            Subject
to the terms and conditions of this Agreement, each of the Investors agrees,
severally and not jointly, to purchase from the Company at the Closing, and the
Company agrees to sell and issue to each of the Investors at the Closing, that
number of shares of Common Stock as is set forth opposite such Investor’s name
on Appendix 1 for the cash purchase price of $0.10 per share, with the
aggregate amount to be paid by each Investor for the Common Shares to be
acquired by such Investor being as stated on Appendix 1 opposite such
Investor’s name.  The Company’s
agreements with each of the Investors are separate agreements, and the sale of
the Common Shares to each of the Investors are separate sales.

 

(ii)           Subject
to the terms and conditions of the Investors Warrants, the Company agrees to
issue to each of the Investors at the Closing that number of $1.00 Warrants,
$1.50 Warrants and $2.00 Warrants as are set forth opposite such Investor’s
name on Appendix 1.  The
Investor Warrants shall be in the form attached hereto as Exhibit A.

 

2.3           The
Closing.  The closing of the
sale and purchase of the Preferred Shares and the Common Shares pursuant to
this Agreement shall take place at the offices of Paul, Hastings, Janofsky
& Walker LLP, Park Avenue Tower, 75 East 55th Street, New York, New York
10022 on the day on which all the conditions set forth in Sections 6 and 7
hereof are satisfied or waived, which is anticipated to be February 7, 2005, at
10:00 a.m., eastern standard time, or at such other time and place as the
Company and each of the Investors may mutually agree (the “Closing”).  At the Closing, the Company shall deliver to
each Investor a certificate or certificates (in definitive form) representing
the Preferred Shares, the Common Shares and the Investor Warrants which such
Investor is purchasing against delivery to the Company by such Investor of a
certified check or wire transfer of immediately available funds in the amount
of the purchase price therefor. Such certificates shall be issued in the names
and the amounts sets forth on Appendix 1.

 

3.     Representations
and Warranties of the Company.  The Company hereby represents and warrants to
each of the Investors, that subject only to the exceptions specifically stated
in this Section 3 and contained in the Disclosure Schedule furnished to each of
the Investors concurrently herewith, the following representations and
warranties are true, accurate and complete as of the date of this Agreement.

 

3.1           Organization,
Good Standing and Qualification.  The
Company is a corporation duly incorporated, validly existing and in good
standing under the laws of the jurisdiction of its incorporation, and has all
requisite corporate power and authority to own its properties and to carry on
its business as now conducted and as currently proposed to be conducted after
giving effect to the consummation of the transactions contemplated by the
Contribution Agreement.  The Company and
each of its Subsidiaries are duly qualified to transact business and is in good
standing in each jurisdiction where the failure so to qualify would have a
Material Adverse Effect.

 

12

 

3.2           Authorization.  The Company has all requisite power and
authority to execute and deliver this Agreement and the other Transaction
Documents and to carry out and perform its obligations under this Agreement and
the Transaction Documents and to consummate the transactions contemplated
hereby and thereby.  The execution and
delivery of and the performance under this Agreement and the Transaction
Documents and the consummation of the transactions contemplated hereby and
thereby have been duly and validly authorized by all necessary corporate action
and any required stockholder action on the part of the Company.  This Agreement and the Transaction Documents
have been, or will be as of the Closing, as applicable, duly executed and
delivered by the Company and are, or will be as of the Closing, legal, valid
and binding obligations of the Company, enforceable against the Company in
accordance with their respective terms, except as limited by
(i) Bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, and other laws of general application affecting the rights of
creditors generally or by general principles of equity (ii) laws relating
to the availability of specific performance, injunctive relief or other
equitable remedies, and (iii) with respect to the Registration Rights
Agreement, applicable federal or state securities laws to the extent such laws
may limit the indemnification provisions contained therein.  The Shares, when issued in compliance with
the provisions of this Agreement, will be duly authorized, validly issued,
fully paid and nonassessable, and the Preferred Shares will have the rights,
preferences and privileges described in the Articles of Amendment.  The Conversion Stock has been, or will be at
the Closing, duly and validly reserved for issuance and, when issued in
compliance with the provisions of this Agreement and the Articles of Amendment
will be duly authorized, validly issued, fully paid and nonassessable.  The Investor Warrants, when issued pursuant
to this Agreement, will be duly authorized and validly issued.  The Warrant Shares have been, or will be at
the Closing, duly and validly reserved for issuance and, when issued pursuant
to an exercise of the Investor Warrants, will be duly authorized, validly
issued, fully paid and nonassessable. 
The Preferred Shares and the Conversion Stock, the Investor Warrants and
the Warrant Shares, and the Common Shares will be free of any Liens, charges or
encumbrances other than those created by or imposed upon the holders thereof
through no action of the Company, and the Preferred Shares and the Conversion
Stock, the Investor Warrants and the Warrant Shares, and the Common Shares will
be free of restrictions on transfer, other than the restrictions on transfer
under this Agreement and pursuant to applicable state and federal securities
laws.

 

3.3           Absence
of Defaults and Conflicts.  The
Company and its Subsidiaries are not in violation of their respective articles
of incorporation, certificate of formation, bylaws, operating agreement or
other organizational documents or in default in the performance or observance
of any obligation, agreement, covenant or condition contained in any contract,
agreement, indenture, mortgage, loan agreement, note, lease or other instrument
to which it is a party or by which it is bound, or to which either of the
property or assets of the Company or a Subsidiary is subject (collectively, the
“Agreements and Instruments”),
except where the violation could not reasonably be expected to have a Material
Adverse Effect; and the execution and delivery of and performance under this
Agreement, the Transaction Documents and any other Agreements and Instruments,
and the consummation of the transactions contemplated herein or therein
(including without limitation the issuance of the Preferred Shares, the
Investor Warrants and the Common Shares) and compliance by the Company and its
Subsidiaries with their respective obligations hereunder and thereunder, do not
and will not, whether with or without the giving of notice or passage of time
or both, conflict with or constitute a breach of or a default under, or result
in the creation or imposition of any Lien upon any property or assets of 

 

13

 

the Company or any
Subsidiary pursuant to such Agreements and Instruments, nor will such actions
result in any violation of or require any notice, consent or waiver or trigger
any change of control provisions of the articles of incorporation or formation,
bylaws, operating agreement or other organizational documents of the Company or
any Subsidiary or any applicable law, statute, rule, regulation, judgment,
order, writ or decree of any court or Governmental Authority having
jurisdiction over the Company, any Subsidiary or any of their respective assets
or properties.

 

3.4           Absence
of Proceedings.  Except as set forth
in Schedule 3.4, there is no action, suit or proceeding, claim, arbitration or
investigation (collectively, “Actions”)
before or by any court, arbitrator, arbitrational body or Governmental
Authority, pending or to the Knowledge of the Company, threatened in writing,
against the Company or any of its Subsidiaries, or affecting any of the
properties or assets of the Company or its Subsidiaries which individually or
in the aggregate would have a Material Adverse Effect or relating to the
transactions contemplated by this Agreement or the other Transaction Documents
or the Concurrent Transactions.  To the
Knowledge of the Company, there is no Action pending or threatened in writing
against any of its officers, directors or employees in connection with such
officer’s, director’s or employee’s relationship with, or actions taken on
behalf of the Company.  None of the
Company, its Subsidiaries or any of its assets or properties is subject to the
provisions of any order, writ, injunction, judgment, ruling, decision or decree
(collectively, an “Order”) of
any court, arbitrator, arbitrational body or Governmental Authority which would
reasonably be expected to have a Material Adverse Effect.

 

3.5           Tax
Returns and Payments. 
The Company and its Subsidiaries have duly filed on a timely basis all
tax returns, whether Federal, state, local or foreign, required to be filed by
it (giving effect to any valid extensions by the Company) (such tax returns
collectively, the “Returns”)
other than such failures as would not reasonably be expected to have a Material
Adverse Effect.  All such returns, as
filed, are true, correct and complete in all material respects.  The Company and its Subsidiaries have paid
all Taxes shown to be due on such Returns, except for (i) any Taxes and
assessments the amount, applicability or validity of which is currently being
contested in good faith by appropriate proceedings and with respect to which
the Company or its Subsidiaries, as the case may be, has established adequate
reserves in accordance with GAAP, without regard to the materiality thereof,
(ii) any Taxes not yet due and payable, and (iii) any Taxes with
respect to which the failure to pay would not reasonably be expected to cause a
Material Adverse Effect.  To the
Knowledge of the Company, there are no additional assessments pending with any
Governmental Authority with respect to such Returns discussed in this Section
3.5.  No claims, investigations, audits
or adjustments relating to such Taxes have been made or proposed in writing by
any taxing authority.  The Company and
its Subsidiaries have withheld all amounts required to be withheld of payments
of compensation and remitted such amounts to the proper authorities.

 

3.6           Governmental
Consents.  Except as set forth on
Schedule 3.6, no Governmental Authorization is required on the part of the
Company or any of its Subsidiaries in connection with the execution, delivery
or performance of this Agreement or the other Transaction Documents and the
transactions to be consummated hereby and thereby, other than 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 by the Company in accordance
with such laws).

 

14

 

3.7           Investment
Company Act.  The Company is not, and
upon the issuance of the Preferred Shares, the Investor Warrants and the Common
Shares as herein contemplated will not be, an “investment company” or an entity
“controlled” by an “investment company” as such terms are defined in the
Investment Company Act.

 

3.8           Subsidiaries.  Immediately prior to the consummation of the
Concurrent Transactions, the Company had no Subsidiaries, other than EPE
Holding Corporation, 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. On the
Closing Date, effective with the consummation of the transactions contemplated
by the Contribution Agreement, the Company will have the Subsidiaries listed on
Schedule 3.8 hereto.  Each such
Subsidiary is a corporation or limited liability company duly incorporated,
formed or organized, as the case may be, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation, as the
case may be, and is in good standing in each jurisdiction in which the failure
to so qualify would have a Material Adverse Effect.  Each such Subsidiary has all requisite
corporate or limited liability company power and authority to own its
properties and to carry on its business as now conducted and as currently proposed
to be conducted after giving effect to the consummation of the transactions
contemplated by the Contribution Agreement. 
Except as set forth on Schedule 3.8, on the Closing Date all of the
issued and outstanding Capital Stock of each Subsidiary will be owned
beneficially and of record by the Company, one of the Company’s other such
Subsidiaries, or any combination of the Company and/or one or more of its other
Subsidiaries, free and clear of any Liens, except for restrictions on transfer
imposed by applicable securities laws. 
Except as set forth on Schedule 3.8, there are no outstanding
subscriptions, warrants, options, convertible securities, or other rights
(contingent or other) pursuant to which any of the Subsidiaries is or may
become obligated to issue any shares of its Capital Stock to any person other
than the Company or a Subsidiary of the Company.

 

3.9           Capitalization.

 

(a)        The
authorized, issued and outstanding Capital Stock of the Company as of the date
hereof and is, and on the Closing Date prior to the Closing will be as set
forth in Schedule 3.9 hereof under “Actual Capitalization.” All outstanding
shares of Capital Stock of the Company have been duly authorized and validly
issued and are fully paid and non-assessable.

 

(b)        The
authorized, issued and outstanding Capital Stock of the Company immediately
after the Closing and the closing of the Concurrent Transactions will be as set
forth in Schedule 3.9 hereof under “Pro Forma Capitalization.”  All shares of Capital Stock of the Company
outstanding immediately after the Closing and the closing of the Concurrent
Transactions will be duly authorized, validly issued, fully paid and
non-assessable.

 

(c)        Other
than as set forth on Schedule 3.9, the Company does not have outstanding any
securities convertible into or exercisable or exchangeable for any shares of
its Capital Stock nor does it have outstanding any rights to subscribe for or
to purchase, or any options for the purchase of, or any agreements providing
for the issuance (contingent or otherwise) of, or any calls, commitments or
claims of any character relating to, any of its Capital 

 

15

 

Stock or securities
convertible into or exercisable or exchangeable for any of its Capital Stock.
Other than as set forth on Schedule 3.9, no shares of the Company’s outstanding
Capital Stock, or stock issuable upon exercise or exchange of any outstanding
options, warrants or rights, or other stock issuable by the Company, are
subject to any rights of first refusal or other rights to purchase such stock
(whether in favor of the Company or any other Person), pursuant to any
agreement or commitment of the Company. 
Except as set forth on Schedule 3.9, the Company has no obligation to
pay any dividend on or make any distribution in respect of any Capital Stock.

 

(d)        Except
as set forth on Schedule 3.9, there are no preemptive or other outstanding
rights, options, warrants, conversion rights, stock appreciation rights,
redemption rights, repurchase rights, agreements, arrangements, evidences of
indebtedness or commitments of any character, written or oral, under which the
Company is or may become obligated to issue or sell, or giving any Person a
right to subscribe for or acquire, or in any way dispose of any shares of the
Capital Stock or other equity interests, or any securities or obligations
exercisable or exchangeable for or convertible into any shares of the Capital
Stock or other equity interests of the Company, and no securities or
obligations evidencing such rights are authorized, issued or outstanding.  Except as set forth on Schedule 3.9, the
outstanding Capital Stock of the Company is not subject to any voting trust
agreement or other agreement or commitment restricting or otherwise relating to
the voting, dividend rights or disposition of such Capital Stock.  There are no outstanding or authorized stock
appreciation, phantom stock or similar rights providing economic benefits
based, directly or indirectly, on the value or price of the stock or other
equity interests of the Company.  Other
than the transactions contemplated by this Agreement, the other Transaction
Documents and the Concurrent Transaction Agreements, there are no outstanding
obligations or other commitments of the Company to make any Investment (in the
form of a loan, capital contribution or other obligation to provide funds) in,
any other Person.

 

(e)        Upon
issuance thereof, the Preferred Shares and the Conversion Stock, the Investor
Warrants and the Warrant Shares, and the Common Shares will be free of any
Liens other than restrictions on transfer under state and federal securities
laws.  The Preferred Shares, upon
issuance in accordance with the terms of this Agreement, and the Conversion
Stock, upon issuance in accordance with the terms of the Articles of Amendment,
and the Warrant Shares when issued upon exercise of the Investor Warrants and
the Common Shares will be duly authorized, validly issued, fully paid and
nonassessable, and owned by the Investors, free from Liens other than restrictions
on transfer under state and federal securities laws.  The Conversion Stock has been duly and
validly reserved for issuance on the conversion of the Series A Preferred Stock
and the Warrant Shares have been duly and validly reserved for issuance upon exercise
of the Investor Warrants.

 

(f)         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 Preferred Shares, the Common Shares and the
Investor Warrants will be made 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

 

16

 

the Preferred Shares, the
Common Shares or the Investor Warrants to the registration requirements of the
Securities Act.

 

(g)        Other
than the rights of holders of Common Stock, Series A Preferred Stock and Series
C Preferred Stock, no Person has any rights to vote for the election of members
of the Company’s Board of Directors.

 

3.10         Certain
Changes or Events.  Except as set
forth in Schedule 3.10, since September 30, 2004, (i) the Company has not
authorized or made any distributions, or declared or paid any dividends, upon
or with respect to any of its Capital Stock or other equity interests, nor has
the Company redeemed, purchased or otherwise acquired, or issued or sold, any
of its Capital Stock or other equity interests; (ii) the Company has not
entered into any material transaction, other than the Concurrent Transaction
Agreements and other agreements related thereto and hereto; (iii) the Company
has not incurred any indebtedness for borrowed money or made any loans or
advances to any Person which are individually in excess of $500,000 or in
excess of $1,000,000 in the aggregate; (iv) there has been no waiver by
the Company of a material right or of a material debt owed to it; (v) the
Company has not failed to satisfy or discharge any Lien, except in the ordinary
course of business and would not reasonably be expected to cause a Material
Adverse Effect; (vi) there has been no material change in any
compensation, arrangement or agreement with any employee, director, stockholder
or Affiliate (as defined below) thereof; (vii) since the enactment of the SOXA,
the Company has not made any loans to any executive officer (as defined in Rule
3b-7 under the Exchange Act) or director of the Company; and (viii) there has
been no agreement or commitment by the Company to do or perform any of the acts
described in this Section 3.10.

 

3.11         Financial
Statements and Reports.

 

(a)        Schedule
3.11 sets forth (i) the audited balance sheet of the Company as of
December 31, 2003 and the related audited statements of income, changes in
stockholders’ equity and cash flows for the fiscal year then ended (the “Audited Financial Statements”); and
(ii) the audited balance sheet of the Company as of September 30, 2004 and
the related audited statements of income, changes in stockholders’ equity and
cash flows for the Company for the nine-month period then ended (the “Interim Financial Statements,”
together with the Audited Financial Statements, the “Financial
Statements”).  The
Financial Statements have been prepared by the Company in accordance with GAAP,
consistently applied, and fairly present in all material respects the financial
condition and results of operations of the Company as of the dates thereof,
and, with respect to the Interim Financial Statements, subject to normal
year-end adjustments that are not material in amount or effect and the absence
of footnotes and similar presentation items therein.  Except as set forth in the Financial
Statements or on Schedule 3.11, the Company does not have any liabilities or
obligations of any nature (absolute, accrued, fixed, contingent or otherwise)
required by GAAP to be set forth on a balance sheet of the Company, or disclosed
in the notes thereto or, even if not so required to be set forth or disclosed,
that are material to the Company.  Other
than as set forth in the Financial Statements or on Schedule 3.11, the Company
has no “off balance sheet arrangements” (as defined by item 303(a)(4) of
Regulation S-K promulgated by the Commission).

 

17

 

(b)        As
of the Closing Date, the Company will have in place the “disclosure controls
and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange
Act) required in order for the principal executive officer and principal
financial officer of the Company to engage in the review and evaluation process
mandated by Section 302 of SOXA.  The
Company’s “disclosure controls and procedures” are reasonably designed to
ensure that material information (both financial and non-financial) relating to
the Company required to be disclosed by the Company in the reports that it
files or submits under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the rules and forms of the
Commission, and that such information is accumulated and communicated to the
Company’s principal executive and principal financial officers, or persons
performing similar functions, as appropriate to allow timely decisions
regarding required disclosure and to make the certifications of the principal
executive officer and principal financial officer of the Company required by
Section 302 of SOXA with respect to such reports.

 

3.12         SEC
Reports.  Except as set forth on
Schedule 3.12, the Company has filed on a timely basis with the Commission all
forms, reports, schedules, registration statements, definitive proxy or
information statements and other documents required to be filed by the Company
with the Commission 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 Current Reports on Form 8-K that have been filed with or furnished
to the Commission, collectively, the “SEC Reports”).  As of their respective dates, except as set
forth in Schedule 3.12, 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.

 

3.13         No
Undisclosed Brokers or Finders Fees. 
Except as set forth on Schedule 3.13, there are no brokerage or
finders’ fees or agents’ commissions or any similar charges due in connection
with this Agreement, the other Transaction Documents or the Concurrent
Transactions.

 

3.14         Registration
Rights.  Except as set forth on
Schedule 3.14, there are no contracts, agreements or understandings between the
Company and any other Person granting such Person the right to require the
Company to file a registration statement under the Securities Act with respect
to any securities that the Company owned or to be owned by such a Person or to
require the Company to include such securities in the Securities registered
pursuant to any of the registration statements filed by the Company under the
Securities Act.

 

3.15         Private
Placement.  Based on the Investors’
representations set forth in Sections 4.3 and 4.5 of this Agreement, the offer,
sale and issuance of the Preferred Shares, the Investor Warrants and the Common
Shares as contemplated by this Agreement, the issuance of the Conversion Stock,
and the issuance of the Warrant Shares upon exercise of the Investor Warrants
is exempt from the registration requirements of the Securities Act.  Neither the Company nor anyone acting on its
behalf will take any action hereafter that would cause the 

 

18

 

offer, sale or issuance
of the Shares, the Investor Warrants, the Conversion Shares or Warrant Shares
not to be exempt from the registration requirements of the Securities Act.

 

3.16         Environmental
and Safety Laws.  Except as set forth
in the Contribution Agreement, the disclosure schedules and exhibits thereto
(as defined and referenced in the Contribution Agreement) and except as would
not be reasonably likely to have a Material Adverse Effect:

 

(a)        the
Company is in compliance with all applicable Environmental Laws.  To the Company’s Knowledge, the Company has
not received any written claim, notice, complaint, Order or request for
information from any Governmental Authority or private party (i) alleging any
violation of, or asserting any non-compliance with any Environmental Law or
permit, (ii) asserting potential or actual liability under Environmental Laws
for matters relating to Hazardous Substances contamination or exposure or (iii)
requesting information or investigation or clean-up of any site under any
Environmental Law.

 

(b)        Neither
the Company nor, to the Knowledge of the Company, any third party, has released
at or transported from any real property or any facility owned, leased,
operated or controlled by the Company or any legally responsible predecessor
thereof any Hazardous Substances.

 

3.17         ERISA.

 

(a)        Except,
in the case of the Subsidiaries, as set forth in the Contribution Agreement,
the Company has no written or unwritten executive compensation plans, bonus
plans, incentive compensation plans, deferred compensation plans or agreements,
retirement plans, employee stock purchase plans, group life insurance,
hospitalization insurance, sale bonus, stay bonus, severance or other employee
benefit plans (as defined in Section 3(3) of ERISA) (collectively, “Benefit Plans”).

 

(b)        Except
as set forth on Schedule 3.17(b), neither the Company nor any of its
Subsidiaries is a member of a controlled group of corporations (as defined in
Section 414(b) of the Internal Revenue Code), any trade or business under
common control (within the meaning of Section 414(c) of the Internal Revenue
Code) or an affiliated service group (as defined in Section 414(m) of the
Internal Revenue Code).

 

(c)        The
Company and its Subsidiaries have substantially performed and complied in all
material respects with any obligations under or with respect to any Benefit
Plans to which it may have been party. 
Each of the Benefit Plans set forth on Schedule 3.17(c) is intended to
be qualified under Section 401 of the Code has received a favorable
determination letter from the Internal Revenue Service regarding such qualified
status and has not, since receipt of the most recent favorable determination
letter, been amended or operated in a way which could reasonably be expected to
adversely affect such qualified status. 
Neither the Company nor any of its Subsidiaries has, and has not had
within the last six calendar years, a “multiemployer plan” within the meaning
of Section 3(37) of ERISA and neither the Company (or any affiliated company
under Sections 414(b), (c) or (m) of the Internal Revenue Code) nor any of its
Subsidiaries has maintained, been required to contribute to, or been required
to pay any 

 

19

 

amount with respect to a “multiemployer
plan” at any time in the past three (3) years. 
Neither the Company nor any of its Subsidiaries has and nor have they
had within the last six calendar years any single employer defined benefit
pension plans subject to Title IV of ERISA and neither the Company (nor an
affiliated company as defined in the preceding sentence) has sponsored or
contributed to a defined benefit pension plan subject to Title IV at any time
in the past three (3) years.  Except in
the case of the Subsidiaries as set forth in the Contribution Agreement, the
Company does not have any “employee pension benefit plan(s)” within the meaning
of Section 3(2) of ERISA (“Pension Plan”),
whether or not intended to be qualified under Section 401(a) of the Internal
Revenue Code.

 

(d)        There
is no pending or, to the Knowledge of the Company, threatened litigation
against the Company or any of its Subsidiaries relating to any Benefit Plans
set forth on Schedule 3.17(c).  Neither
the Company nor any of its Subsidiaries has engaged in a transaction with
respect to any Benefit Plan set forth on Schedule 3.17(c) that, assuming the
taxable period of such transaction expired as of the date hereof, could subject
the Company or any of its Subsidiaries to a tax or penalty imposed by either
Section 4975 of the Code or Section 502(i) of ERISA in an amount which would be
material.

 

(e)        No
liability under Title IV of ERISA has been or is expected by the Company or any
of its Subsidiaries to be incurred by the Company or any of its Subsidiaries
with respect to any ongoing, frozen or terminated Pension Plan currently or
formerly maintained by the Company or any of its Subsidiaries within the last
six calendar years.  No notice of a “reportable
event”, within the meaning of Section 4043 of ERISA, for which the thirty
(30)-day reporting requirement has not been waived, has been required to be
filed for any Benefit Plan within the twelve-month period ending on the date
hereof.

 

(f)         Except,
in the case of the Subsidiaries, as set forth in the Contribution Agreement,
the Company and its Subsidiaries have no obligations for retiree health and
life benefits under any Benefit Plans. 
All group health plans of the Company and its Subsidiaries, if any, have
been operated in material compliance with the applicable requirements of Part 6
of Subtitle B of Title I of ERISA.

 

(g)        The
consummation of the transactions contemplated by this Agreement will not
entitle any employee or former employee of the Company or any of its
Subsidiaries to severance pay, or accelerate the time of payment or vesting, or
increase the amount, of compensation or benefits due to any such employee or
former employee.  The Company has not
announced any type of plan or binding commitment to create any additional Benefit
Plan or to enter into any agreement with an employee, or to amend or modify any
existing Benefit Plan or agreement.

 

3.18         Compliance.  The Company is and its Subsidiaries are, 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
mortgage, indenture, contract, agreement or instrument to which the Company or
any of its Subsidiaries is a party or by which it is or they are bound, or of
any provision of any foreign, Federal or state judgment, decree, order,
statute, rule or regulation 

 

20

 

applicable to or binding
upon the Company or any of its Subsidiaries, which restricts in any respect the
conduct of its or their business, or that in any manner relates to its or their
policies, affairs or management, or that otherwise materially adversely affects
the Company and its Subsidiaries, taken as a whole.  Neither the Company nor any of its
Subsidiaries has, 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.

 

3.19         Employees.  Except, in the case of the Subsidiaries, as
set forth in the Contribution Agreement or the schedules thereto, the Company
and its Subsidiaries have no employees who receive an annual salary of more
than $75,000 and no employee of or consultant to the Company or its
Subsidiaries is a party to a written employment or consulting agreement or
arrangement.  None of the employees of
the Company or its Subsidiaries are represented by any labor union, the Company
and its Subsidiaries do not have 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 and its
Subsidiaries do not recognize 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 or its Subsidiaries with
“change of control”, “stay-put”, severance or similar provisions.

 

3.20         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.

 

3.21         Contribution
and Exchange Agreement.  All of the
representations and warranties of the Trust made in Article IV of the Contribution
Agreement and of the Company and the Purchaser made in Article V of the
Contribution Agreement that are qualified as to materiality or a Material
Adverse Effect are true and correct, and those not so qualified are true and
correct in all material respects, after giving effect to the transactions
contemplated hereby and by the Concurrent Transactions, as of the date hereof
and as of the Closing Date as if made on and as of such time.

 

3.22         Sufficiency
of Assets.  Upon and after the
Closing and the consummation of the Concurrent Transactions, the Company will
own or will hold a valid license to or leasehold interest in all assets,
properties and rights necessary to conduct its business as currently conducted
and as proposed to be conducted, in all material respects.

 

3.23         Affiliate
Arrangements.  Schedule 3.23 sets
forth a correct and complete list of (i) all loans or advances by the Company
or its Subsidiaries, to and all indebtedness owed to the Company and its
Subsidiaries by, any officer, director or Affiliate of the Company and their
respective Affiliates, and (ii) all agreements, contracts and other
arrangements between the Company or its Subsidiaries and any officers,
directors or Affiliates of the Company, its Subsidiaries and their respective
Affiliates.

 

4.     Representations
and Warranties of the Investors. 
Each Investor, with respect to itself, severally as to itself and not
jointly, hereby represents and warrants to the Company, that subject 

 

21

 

only to the exceptions
specifically stated in this Section 4, the following representations and
warranties are true, accurate and complete as of the date of this Agreement.

 

4.1           Organization.  Such Investor is duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization.

 

4.2           Authorization.  Such Investor has all requisite power and
authority to execute, deliver and perform this Agreement and the Transaction
Documents to which it is a party.  The
execution, delivery and performance of this Agreement and the Transaction
Documents to which it is a party have been duly and validly authorized by all
necessary action on the part of such Investor. 
This Agreement and the Transaction Documents to which it is a party have
been duly executed and delivered by such Investor and constitutes its legal,
valid and binding obligation, enforceable against such Investor in accordance
with its terms, except (i) as limited by Bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforceability
of creditors’ rights in general or by general principles of equity,
(ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable relief and (iii) to the
extent that the enforceability of any indemnification provisions may be limited
by applicable law.  The execution,
delivery and performance of this Agreement and the Transaction Documents to
which it is a party will not violate or conflict with any provision of such
Investor’s governing documents as currently in effect.

 

4.3           No
Intended Resale.  The Preferred
Shares, the Investor Warrants and the Common Shares are being acquired by such
Investor for investment for its own account for investment purposes, and not with
a view to, or for sale in connection with, any distribution thereof.  Such Investor does not presently have any
contract, undertaking, agreement or arrangement with any Person to sell,
transfer or grant participation rights to such Person or to any third party
with respect to any of the Preferred Shares, the Investor Warrants or the
Common Shares; without prejudice, however, to the Investor’s rights at all
times to sell or otherwise dispose of all or any part of such Shares pursuant
to a registration under the Securities Act or under an exemption from such
registration available under the Securities Act.

 

4.4           Restricted
Securities.  Such Investor
understands that the Preferred Shares, the Investor Warrants and the Common
Shares it is purchasing are characterized as “restricted securities” under the
federal securities laws inasmuch as they are being acquired from the Company in
a transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under
the Securities Act, only in certain limited circumstances.  Such Investor understands that no public
market now exists for the Preferred Shares and that a public market may never
exist for the Preferred Shares.

 

4.5           Investor
Representations.  Such Investor is an
Accredited Investor.  Such Investor
(a) understands that the Preferred Shares, the Investor Warrants and the
Common Shares have not been registered under the Securities Act, or under any
state securities laws, and are being offered and sold in reliance upon federal
and state exemptions for transactions not involving any public offering,
(b) has received certain information concerning the Company and has had
the opportunity to obtain additional information as desired in order to
evaluate the merits of and the risks inherent in an investment in the Company
and (c) is able to bear the economic risk of investing in the Company and
the Preferred Shares, the Investor Warrants and the 

 

22

 

Common Shares in that,
among other factors, such Investor can afford to hold the Preferred Shares and
the Common Shares for an indefinite period and can afford a complete loss of
such Investor’s investment in the Company; provided, however, that no such investigation by any Investor shall
limit, diminish, or constitute a waiver of any representation or warranty made
by the Company in this Agreement or any Transaction Documents or impair any
rights which any Investor may have with respect thereto.

 

4.6           Legends.  Such Investor understands that the
certificates evidencing the Preferred Shares and the Common Shares will bear
the following legends, in addition to any legend required by applicable state
securities laws:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY STATE SECURITIES LAWS.  THEY MAY
NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT AND COMPLIANCE
WITH THE REQUIREMENTS OF ANY RELEVANT STATE SECURITIES LAWS, OR AN OPINION OF
COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION OR COMPLIANCE IS
NOT REQUIRED.

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO THE PROVISIONS OF SECTION 11.1(a) OF A STOCK PURCHASE AGREEMENT
DATED AS OF FEBRUARY 7, 2005 (A COPY OF WHICH IS ON FILE WITH THE
SECRETARY OF THE COMPANY) AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR
OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE PROVISIONS OF SUCH STOCK
PURCHASE AGREEMENT.  THE RESTRICTIONS IN
SECTION 11.1(a) SHALL TERMINATE UPON THE EARLIER OF ONE YEAR FROM THE DATE OF
INITIAL ISSUANCE OR SUCH EARLIER DATE AS IS PROVIDED FOR IN SECTION 11.1(a) OF
SUCH STOCK PURCHASE AGREEMENT.”

 

In the event any other legend is placed on the
certificates evidencing the Preferred Shares or the Common Shares which is
required by the law of the State of Colorado, such legend shall be removed if
the Company becomes domiciled in another jurisdiction and such legend is not
required by such other jurisdiction.

 

4.7           Brokers
or Finders.  Except as disclosed in
Schedule 4.7, the Company will not incur as a result of any agreement entered
into by the Investor, any liability for brokerage or finders’ fees or agents’
commissions or any similar charges in connection with this Agreement.

 

5.     Covenants.  For so long as any Series A Preferred Stock
remains outstanding, the Company will perform or comply with, as required, each
of the following covenants (as used in

 

23

 

this Section 5 (unless
the context otherwise requires), the term “Company” shall mean the Company and
its Subsidiaries, individually or collectively, as appropriate):

 

5.1           Payment
of Taxes and Claims.  The Company
will pay and discharge promptly all lawful claims of materialmen, mechanics,
carriers, warehousemen, landlords and other similar Persons for labor,
materials, supplies and rentals which, if unpaid, might by law become a Lien
upon its property, except where the failure could not reasonably be expected to
have a Material Adverse Effect; provided, however, that none of the foregoing need be paid while being
contested in good faith by appropriate proceedings initiated within the period
allowed by applicable law, rule or regulation and diligently conducted so long
as (i) adequate book reserves have been established in accordance with GAAP
with respect thereto and (ii) the Company’s title to or right to the use of its
properties is not adversely affected thereby.

 

5.2           Maintenance
of Properties and Corporate Existence. 
The Company will:

 

(a)        maintain
its property in good condition and make all necessary renewals, replacements,
additions, betterments and improvements thereto, all as in the judgment of the
Company may be necessary so that the business carried on in connection
therewith may be conducted properly and advantageously at all times, except
where the failure to do so could not reasonably be expected to have a Material
Adverse Effect;

 

(b)        keep
adequately insured, by financially sound and reputable insurers, all of its
property of a character usually insured by entities engaged in the same or a
similar business similarly situated against loss or damage of the kinds and in
amounts customarily insured against by such entities and with deductibles or
co-insurance no greater than is customary, and carry, with such insurers in
customary amounts and with deductibles or co-insurance no greater than is
customary, such other insurance, including public liability insurance and
liability insurance against claims for any violation of applicable law, as is
usually carried by entities engaged in the same or a similar business similarly
situated;

 

(c)        keep
proper books of record and account in which entries will be made of all its
business transactions and generally maintain a system of accounting established
and administered, in accordance with GAAP; and

 

(d)        except
as otherwise permitted or contemplated hereby, do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and such rights, patents, trademarks, copyrights, licenses, permits,
franchises and Governmental Authorizations as the Company determines to be
necessary, or as are required for the present and presently planned future
conduct of its business, except where the failure to do so could not reasonably
be expected to have a Material Adverse Effect; provided; however, that the
Company may, in its sole discretion, cause the Company to merge with and into
another Person incorporated or formed in a State other than the State of
Colorado in a reorganization subject to Section 368(a)(1)(F) of the Internal
Revenue Code; provided that the surviving entity assumes all of the Company’s
obligations to the Investors hereunder and under the other Transaction
Documents, and such merger does not adversely affect any of the Investors’
rights hereunder or under the other Transaction Documents or the rights,
privileges or preferences of any of the Shares under the articles of
incorporation of the Company, as amended from time to time.

 

24

 

5.3           Compliance
with Law.  The Company will, except
where the failure to do so could not reasonably be expected to have a Material
Adverse Effect:

 

(a)        not
violate any laws, ordinances, governmental rules or regulations to which it is,
or might become, subject, unless the same are being contested by the Company in
good faith and by appropriate proceedings which shall legally prevent the
imposition of any penalty on the Company or such Subsidiaries for such
noncompliance; or

 

(b)        use
its best efforts to obtain or retain (as applicable) any patents, trademarks,
service marks, trade names, copyrights, design patents, licenses, permits, franchises
or other Governmental Authorizations necessary or required to or for the
ownership of its property or to or for the conduct of its business.

 

5.4           Financing
Purposes.  The net proceeds of the
Financing shall be used by the Company solely for the Financing Purposes and as
specified on Schedule 5.4 hereto. The Investors hereby acknowledge their
consent to the consummation of the acquisitions and other transactions set
forth on Schedule 5.4.

 

5.5           Reports.  Whether or not the Company is subject to Section
13(a) or 15(d) of the Exchange Act, or any successor provision thereto, the
Company shall file with the Commission the annual reports, quarterly reports
and other documents which the Company would have been required to file with the
Commission pursuant to such Section 13(a) or 15(d) or any successor provision
thereto if the Company were subject thereto, such documents to be filed with
the Commission on or prior to the respective dates (the “Required
Filing Dates”) by which the Company would have been required to
file them.  The Company shall also
(whether or not it is required to file reports with the Commission), within
thirty (30) days of each Required Filing Date, (1) transmit by mail to all
Holders of the Series A Preferred Stock, as their names and addresses appear on
the records of the Transfer Agent and to any Persons that request such reports
in writing, without cost to such holders or Persons, and (ii) file with the
Transfer Agent copies of the annual reports, quarterly reports and other documents
(without exhibits) which the Company has filed or would have filed with the
Commission pursuant to Section 13(a) or 15(d) of the Exchange Act, any
successor provisions thereto or this covenant. The Company shall not be
required to file any report or other information with the Commission if the
Commission does not permit such filing.

 

5.6           Availability
of Common Stock.  The Company shall
at all times reserve and keep available out of its authorized but unissued
shares of Common Stock, such number of its duly authorized shares of Common
Stock as shall be sufficient to effect the conversion of the Preferred Shares
and the exercise of the Investor Warrants. 
If at any time the number of authorized but unissued shares of Common
Stock shall not be sufficient to effect the conversion of the Preferred Shares
and the exercise of the Investor Warrants, or otherwise comply with the terms
of this Agreement or any other Transaction Document, the Company shall
forthwith take such corporate action as may be necessary to increase its
authorized but unissued shares of Common Stock to such number of shares as
shall be sufficient for such purposes.

 

5.7           Delivery
of Cash or Issuance of Additional Shares. 
In the event that, on February 7, 2011, there is a Total Return
Shortfall, the Company shall distribute to the Investors 

 

25

 

or their Permitted
Transferees, in the aggregate, an amount equal to such Total Return Shortfall,
which distribution, in the Company’s sole discretion, shall be made in cash,
Series A Preferred Stock (such Series A Preferred Stock to be valued at its
Stated Value) or Common Stock (such Common Stock to be valued at Fair Market
Value) or a combination thereof within thirty (30) days thereafter.

 

5.8           Transactions
with Related Parties.  If the Company’s
Common Stock is listed on a national securities exchange or U.S. inter-dealer
quotation system of a registered national securities association, the Company
agrees to comply with the rules of the national securities exchange or U.S.
inter-dealer quotation system of a registered national securities association
on which it is primarily listed with respect to engaging in transactions,
contracts, agreements, understandings, loans, advances or guarantees with, or
for the benefit of, any director, officer, Affiliate or related party (each, an
“Affiliate Transaction”).  If the Company’s Common Stock is not listed
on a national securities exchange or U.S. inter-dealer quotation system of a
registered national securities association, it agrees to comply with the Nasdaq
National Market requirements with respect to related party transactions.

 

If any amounts
paid to an Affiliate of the Trust or the Purchaser in connection with an
Affiliate Transaction are greater than the amount that would be paid to an
unaffiliated party providing the same goods or services to the Company (such
excess amount, an “Excess Affiliate Payment”),
the Investors shall have the right to deem such Excess Affiliate Payment to be
a dividend to the Trust or the Purchaser, as the case may be, on all of the
Common Stock held by such entity for purposes of Section 3(a) of the
Articles of Amendment.

 

5.9           Right
of First Offer.

 

(a)        From
the date of this Agreement and so long as the Investors and their Permitted Transferees
hold, on an as converted basis, at least 50% of the (i) aggregate number of
shares of Common Stock issuable upon exercise of the Investor Warrants and the
conversion of the Preferred Shares as of the Closing Date (in each case, after
adjusting for stock splits, stock dividends, recapitalizations, mergers,
consolidations or similar events occurring after the Closing Date that effects
a change in the capitalization of the Company) plus (ii) the number of the
Common Shares purchased by the Company on the Closing Date pursuant to this
Agreement, the Company will not consummate any Third Party Private Equity
Financing Transaction without first delivering to the Investors the terms of
such proposed Third Party Private Equity Financing Transaction in writing (the “Right of First Offer Notice”)
including the proposed purchase price, the other economic terms and conditions
and other material conditions of such proposed Third Party Private Equity
Financing Transaction (whether or not the Company has received a binding
commitment from a Person in respect of such Third Party Private Equity
Financing Transaction at such time), and such Right of First Offer Notice shall
contain and be accompanied by detailed computations setting forth the Company’s
best estimate of the net proceeds to the Company of such proposed Third Party
Private Equity Financing Transaction.  At
any time within ten (10) Business Days of the date the Company delivers
the Right of First Offer Notice with respect to any proposed Third Party Private
Equity Financing Transaction described above (the “Response
Period”), the Investors shall have the right, exercisable by
delivery of notice in writing (the “Right of First Offer
Election”) to the Company, to elect to either:

 

26

 

(i)            provide
the financing on the terms contemplated by the Right of First Offer Notice and
consummate the proposed Third Party Private Equity Financing Transaction with
the Company; or

 

(ii)           not
provide the financing contemplated by the Right of First Offer Notice, in which
case the Company shall be permitted to consummate the Third Party Private
Equity Financing Transaction contemplated in the Right of First Offer Notice
provided such Third Party Private Equity Financing Transaction is consummated
within seventy-five (75) days.

 

(b)        If
the Investors do not deliver the Right of First Offer Election within the
Response Period, the Investors shall be deemed to have waived their right of
first offer and the Company shall be permitted to consummate such Third Party
Private Equity Financing Transaction contemplated in the Right of First Offer
Notice provided such Third Party Private Equity Financing Transaction is
consummated within seventy-five (75) days. 
If the Investors deliver a Right of First Offer Election to the Company
but do not provide the financing contemplated by the related Right of First
Offer Notice within seventy-five (75) days after the Company’s written
request therefor, and all customary closing conditions with respect to such
proposed Third Party Private Equity Financing Transaction are satisfied, the
Investors’ rights under this Section 5.9 shall terminate and the Company shall
thereafter be permitted to enter into any Third Party Private Equity Financing
Transaction without providing a Right of First Offer Notice to the Investors.

 

5.10         Insurance.  As of the Closing Date and at all times
thereafter, the Company shall, and shall cause its Subsidiaries to, maintain,
with financially sound and reputable insurance companies, insurance to protect
the Company and its Subsidiaries and their respective material properties and
assets against the risks involved in the businesses conducted by the
Company and its Subsidiaries, respectively.

 

5.11         Issuance
of Warrants.  In the event that the
Company issues warrants, convertible stock, options, rights or other
derivatives exercisable for, convertible into or exchangeable into Common
Stock, the Company will give notice thereof to the Investors concurrently with
or prior to such issuance, specifying the terms and conditions including the
exercise, conversion, exchange or strike price therefor and the number of any
such warrants, convertible stock, options, rights or other derivatives
exercisable for, convertible into or exchangeable into Common Stock being
issued.

 

5.12         Appraisal
of the Preferred Shares.  From the
date of this Agreement until the Investors no longer beneficially own any
Preferred Shares, the Company shall promptly pay or reimburse the Investors for
the reasonable costs of an Independent Appraisal of the value of the Series A
Preferred Stock, no more frequently than once per calendar year, for purposes
of valuing the Investors’ investment in the Company.

 

6.     Conditions to
Obligations of the Investors.  Each
Investor’s obligation to purchase its respective Shares at the Closing is
subject to the fulfillment on or prior to the Closing of the following
conditions, of which conditions (a) and (b) may be waived at the option of such
Investor:

 

27

 

(a)        The
representations and warranties made by the Company in Section 3 hereof shall be
true and correct in all material respects when made, and such representation
and warranties shall be true and correct at the Closing after giving effect to
the Concurrent Transactions and the transactions contemplated hereby and by the
other Transaction Documents (in each case, without giving effect to any “material”
or “Material Adverse Effect” qualifiers contained therein), with the same force
and effect as if they had been made on and as of said date, in either case,
without giving effect to any update of or modification to the Disclosure
Schedule made or purported to be made after the date of this Agreement.

 

(b)        All
covenants, agreements and conditions contained in this Agreement to be
performed by the Company on or prior to such purchase shall have been performed
or complied with in all respects, and the Company shall not be in breach or
default in the performance of or compliance with any of the provisions of this
Agreement or the Contribution Agreement.

 

(c)        There
shall not then be in effect any legal, court or other order enjoining or
restraining the transactions contemplated by this Agreement.

 

(d)        There
shall not be in effect any law, rule or regulation prohibiting or restricting
such purchase or requiring any consent or approval of any Person which shall
not have been obtained to issue the Preferred Shares, the Common Shares or the
Investor Warrants (except as otherwise provided in this Agreement).

 

(e)        Each
of the Investors shall have received opinions of counsel to the Company with
respect to the Preferred Shares, the Common Shares, the Transaction Documents
and the transactions contemplated thereby and as to such other matters, in
substantially the form attached hereto as Exhibit D, and the Investors shall be
entitled to rely on the opinions delivered in connection with the Contribution
Agreement.

 

(f)         The
Company shall have duly filed with the Secretary of State of the State of
Colorado the Articles of Amendment, and the Articles of Amendment shall be in
full force and effect and shall not have been amended.

 

(g)        All
authorizations, approvals or permits, if any, of any Governmental Authority or
regulatory body required in connection with the transactions contemplated by
this Agreement and the other Transaction Documents, including, without
limitation, lawful issuance and sale of the Shares and the Investor Warrants
pursuant to this Agreement shall have been duly obtained and shall be in full
force and effect on and as of the Closing.

 

(h)        All
corporate and other proceedings in connection with the transactions
contemplated at the Closing and all documents incident thereto shall be
reasonably satisfactory in form and substance to each Investor and to the
Investors’ counsel, and they shall each have received all such counterpart
originals and certified or other copies of such documents as they may
reasonably request.  Such documents shall
include (but not be limited to) the following:

 

28

 

(i)            A
copy of the Articles of Amendment, the charter and the Bylaws of the Company
(as amended through the date of the Closing), certified by the Secretary of the
Company as true and correct copies thereof as of the Closing.

 

(ii)           A
certificate of the Secretary or an Assistant Secretary or other officer of the
Company certifying the names of the officers of the Company authorized to sign
this Agreement, the Transaction Documents, the certificates for the Preferred
Shares, the Common Shares, and the Investor Warrants and the other documents,
instruments or certificates to be delivered pursuant to this Agreement and the
other Transaction Documents by the Company or any of its officers, together
with the true signatures of such officers.

 

(iii)          A
certificate of a Responsible Officer certifying that the conditions specified
in Sections 6(a), (b), (c), (k) and (m) have been fulfilled.

 

(iv)          A
copy of the resolutions of the Board of Directors and, if required, the
shareholders of the Company authorizing this Agreement, the other Transaction
Documents and the consummation of the transactions contemplated hereby and
thereby, including, without limitation, the issuance of the Shares and the
Investor Warrants, certified by the Secretary of the Company to be true,
complete and correct.

 

(v)           Good
standing certificates issued by the Secretary of State of the State of Colorado
dated within three days of the Closing.

 

(i)         Each
of the Investors and the Company and the other parties thereto shall have
executed and delivered each of the Transaction Documents to which each is a
party.

 

(j)         The
Company shall have taken all necessary action for the election immediately
following the Closing of the Investors’ designees to the Company’s Board of
Directors.

 

(k)        The
Company shall have obtained all authorizations, approvals, permits, if any, of
any Governmental Authority or regulatory body and all consents and approvals of
any third party, including but not limited, to the consents set forth on
Schedule 3.6 that are required in connection with the consummation of the
transactions provided for herein and in the Transaction Documents.

 

(l)         The
Common Stock Purchase Agreement shall have been amended, or shall be amended
concurrently with the Closing, to reduce the number of $1.00 Warrants granted
to the Purchaser thereunder by 1,860,660, the $1.50 Warrants granted to the
Purchaser thereunder by 1,860,660 and the $2.00 Warrants granted to the
Purchaser thereunder by 1,860,661 and the Purchaser shall have exercised $1.00
Warrants for the purchase of 5,000,000 shares of Common Stock.

 

(m)       The
Concurrent Transactions shall have been consummated or shall be consummated
concurrently with the Closing in accordance with the Concurrent Transaction
Agreements.

 

29

 

If the Investors
specifically waive in writing the conditions set forth in Section 6(a) or
Section 6(b) hereof, any breach of a representation, warranty or covenant so
waived in writing shall not survive the Closing.

 

7.     Conditions to
Obligations of the Company.  The
Company’s obligation to sell and issue the Preferred Shares and the Common
Shares at the Closing is subject to the fulfillment at or prior to the Closing
of the following conditions, of which conditions (a) and (b) may be waived at
the option of the Company:

 

(a)        The
representations and warranties made by the Investors in Section 4 hereof shall
be true and correct in all material respects when made, and such representation
and warranties shall be true and correct in all material respects at the
Closing with the same force and effect as if they had been made on and as of
said date.

 

(b)        All
covenants, agreements and conditions contained in this Agreement to be
performed by the Investors on or prior to such sale shall have been performed
or complied with in all material respects.

 

(c)        All
of the Investors shall purchase the Shares as set forth opposite their
respective names on Appendix I hereto pursuant to Section 2.1(ii) hereof.

 

(d)        There
shall not then be in effect any legal, court or other order enjoining or
restraining the transactions contemplated by this Agreement.

 

(e)        There
shall not be in effect any law, rule or regulation prohibiting or restricting
such purchase or requiring any consent or approval of any Person which shall
not have been obtained to issue the Preferred Shares, the Common Shares or the
Investor Warrants (except as otherwise provided in this Agreement).

 

(f)         Each
of the Investors and the Company and the other parties thereto shall have
executed and delivered each of the Transaction Documents to which each is a
party.

 

(g)        The
Common Stock Purchase Agreement shall have been amended, or shall be amended
concurrently with the Closing, to reduce the number of $1.00 Warrants granted
to the Purchaser thereunder by 1,860,660, the $1.50 Warrants granted to the
Purchaser thereunder by 1,860,660 and the $2.00 Warrants granted to the
Purchaser thereunder by 1,860,661.

 

(h)        The
Concurrent Transactions shall have been consummated or shall be consummated
concurrently with the Closing in accordance with the Concurrent Transaction
Agreements.

 

If the Company
specifically waives in writing either of the conditions set forth in Section
7(a) or Section 7(b) hereof, any breach of a representation, warranty or
covenant so waived in writing shall not survive the Closing.

 

30

 

8.     Termination.

 

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

 

(i)            by
the mutual written consent of the Investors and the Company;

 

(ii)           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 Sections 6 and 7 have been
satisfied;

 

(iii)          by
the Company if any court or Governmental Authority 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;

 

(iv)          by
the Company, (a) if there shall have occurred, on the part of any Investor, 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 such Investor, (b) if any of the Concurrent Transaction
Agreements is terminated in accordance with the terms thereof or (c) upon the failure
of a closing condition set forth in Section 7 which is not curable; or

 

(v)           by
a Majority in Interest of the Investors, (a) if there shall have occurred, on
the part of the Company, a breach of any representation, warranty, covenant or
agreement contained in the 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 the Investors 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, (b) if any
of the Concurrent Transaction Agreements is terminated in accordance with the
terms thereof or (c) upon the failure of a closing condition set forth in
Section 6 which is not curable.

 

8.2           Effect
of Termination.  In the event of the
termination of this Agreement pursuant to Section 8.1, 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 8.2 and Section 8.3, which shall
survive any such termination.  Nothing
contained in this Section 8.2 shall relieve any party from liability for any
breach of this Agreement.

 

8.3           Fees
and Expenses.

 

(i)            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; provided, however, that whether or not the transactions contemplated
by this Agreement are consummated (unless due to a termination of this
Agreement by the Company pursuant to Section 8.1(iv)(a), the Company shall pay
all reasonable fees and expenses of the Investors relating to the transactions
contemplated by this Agreement and the other Transaction 

 

31

 

Documents up to a maximum
of $250,000, including the reasonable fees and disbursements of outside counsel
and accountants for the Investors.

 

(ii)           The
amounts payable pursuant to Section 8.3(i) hereof constitute liquidated damages
and not a penalty and shall be the sole monetary remedy in the event of
termination of this Agreement except if the termination is pursuant to
Section 8.1(v)(a) or except if the Concurrent Transactions were
consummated and the Company was not entitled to terminate this Agreement
pursuant to Section 8.1(iv)(a). If the Company fails to pay to the
Investors any amounts due under Section 8.3(i), as applicable, in accordance
with the terms hereof, the Company shall pay the costs and expenses (including
legal fees and expenses) of the Investors in connection with any action,
including the filing of any lawsuit or other legal action, taken to collect
payment.

 

9.     Indemnification.

 

9.1           Indemnification
of the Investor Indemnified Parties. 
The Company agrees to indemnify and hold harmless the Investors and
their respective shareholders, partners, members, directors, officers,
employees, agents, affiliates, successors in interest, assigns and
representatives (collectively, the “Investor Indemnified
Parties”) from and against any and all claims, liabilities,
obligations, losses (excluding speculative or consequential damages, lost
profits or diminution in value), fines, costs, proceedings, deficiencies or
damages, 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 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
the Company pursuant to this Agreement, or (ii) any breach or nonperformance
of any of the covenants or agreements made by the Company pursuant to this
Agreement.

 

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

 

9.3           Limitations
on Indemnification.  The Company
shall not be required to indemnify any of the Investor Indemnified Parties
under Section 9.1(a) hereunder unless the aggregate of all Losses for which
indemnity would otherwise be payable by the Company exceeds $10,000, and, in
such event, the Company shall be responsible for all Losses, including such
$10,000.  The Company’s indemnification
obligations under Section 9.1(a) with respect to any breach of the
representations and warranties in Section 3 hereof shall be limited, in the
aggregate, to an amount equal to (i) the Total Return Threshold plus (ii) any
amounts paid in respect of any exercise of the Investor Warrants plus (iii) an
amount equal to the number of shares of Common Stock purchased by the Investors
on the Closing Date as provided in Section 2.2(i) multiplied by $10.00.

 

9.4           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 

 

32

 

which any other party (or
parties) (the “Indemnifying Party”)
is obligated to provide indemnification pursuant to Section 9.1 or 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 9.4 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 9.5 or
(ii) is demonstrably unable to undertake the defense of such suit or satisfy
the claims arising thereunder.

 

9.5           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.  If an Indemnifying Party assumes the defense
of such an action, no compromise or settlement thereof may be effected by the
Indemnifying Party without the Indemnified Party’s consent unless (A) there is
no finding or admission of any violation of law or any violation of the rights
of any Person and no effect on any other claims that may be made against the
Indemnified Party and (B) the sole relief provided is monetary damages that are
paid in full by the Indemnifying Party. 
The Indemnified Party shall be entitled to participate in (but not
control) the defense of any such action, with its counsel and at its own
expense; provided, however, that if the Indemnified Party, in its reasonable
discretion, determines that there exists or may exist a conflict of interest
between the Indemnifying Party (or any constituent party thereof) and the
Indemnified Party or that there may be one or more legal defenses available to
such Indemnified Party that are different from or additional to those available
to the Indemnifying 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 Indemnifying Party shall be responsible for
the reasonable costs and expenses of the Indemnified Party’s defense thereof
and 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, and shall be bound by any
determination made in such action or any compromise or settlement thereof
effected by the Indemnified Party.  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 

 

33

 

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.

 

9.6           Investors
as Indemnified Party.  For the
purpose of this Section 9, any action by the Investors as an Indemnified Party
or Indemnified Parties in accordance with this Section 9 shall be made by a
Majority in Interest of the Investors.

 

9.7           Survival
of Representations and Warranties. 
The waiver in writing of any condition based on the accuracy of any
representation or warranty, or on the performance or compliance with any
covenant or obligation, shall preclude the right of the Investors to seek
indemnification hereunder with respect to such representation, warranty or
covenant.  Each representation, warranty,
covenant and agreement of the Company contained in this Agreement shall survive
the Closing.

 

10.   Registration,
Transfer and Substitution of Share Register.  The Company will keep at its principal office
a register in which the Company will provide for the registration of the
Preferred Shares and the Common Shares and the registration of transfers of the
Preferred Shares and the Common Shares. The Company may treat the Person in
whose name the Preferred Shares and the Common Shares are registered on such
register as the owner and Holder thereof for the purpose of receiving payment
dividends on the Common Shares, the Warrant Shares and the Preferred Shares and
for all other purposes, and the Company shall not be affected by any notice to
the contrary.

 

11.   Restrictions on
Transfer; Certain Other Restrictions.

 

11.1         Restrictions
Generally.

 

(a)        Each
Investor agrees that it will not, without the prior written consent of the
Company, Transfer (other than to Permitted Transferees) the Shares purchased by
it pursuant hereto, the Investor Warrants acquired by it on the Closing Date or
any Common Shares issued to it in respect of the exercise of any Investor
Warrants owned by it (“Conversion Shares”)
for a period of one (1) year after the date hereof or such shorter period of
time as is equal to the shortest period during which any Affiliate of the
Company, including, without limitation, the Primary Sponsor and his Affiliates,
agrees not to Transfer any Capital Stock of the Company (a “Lock-Up Period”); provided,
however, that (i) if any Affiliate of the Company is not subject to a Lock-Up
Period, the Investors shall no longer be subject to the restrictions set forth
in this Section 11.1(a) and this Section 11.1(a) shall terminate and be of no
further force or effect and (ii) if any Lock-Up Period is waived or otherwise
not enforced with respect to any Affiliate of the Company, the restrictions set
forth in this Section 11.1(a) shall be waived or shall not be enforceable
against any Investor, as applicable.  For
purposes of this Section 11.1(a), Permitted Transferees shall not include
any “controlled Affiliate” referred to in clause (i) of the definition of
Permitted Transferee or any Person included in clause (iv) of the definition of
Permitted Transferee.

 

(b)        Each
Investor agrees that, in addition to the other requirements imposed herein
relating to Transfer, it will not Transfer any Restricted Securities except
(i) pursuant to an effective registration statement under the Securities
Act or (ii) pursuant 

 

34

 

to an exemption from the
registration requirements under the Securities Act and, if requested by the
Company, shall deliver to the Company an opinion of counsel reasonably
satisfactory to the Company to the effect that the proposed transfer may be so
effected without registration under the Securities Act; provided, however, that
no such opinion of counsel shall be required for a transfer by a holder of
Restricted Securities to a Permitted Transferee or for a Transfer pursuant to
Rule 144(k).

 

11.2         Legend.

 

(a)        All
certificates representing Restricted Securities, for so long as they are
subject to Section 11.1(a) hereof, or in the case of the first legend set forth
in Section 4.7 hereof, for so long as is required by the Securities Act and
applicable state securities laws, shall have endorsed upon them a legend
evidencing the restrictions set forth herein, in substantially the form set
forth in Section 4.7 of this Agreement, and such other legends as may be
required by applicable state securities laws.

 

(b)        Any
certificate issued at any time in exchange or substitution for any certificate
bearing such legends shall also bear such legends, unless the Restricted
Securities represented thereby are no longer subject to the provisions of this
Agreement or the restrictions imposed under the Securities Act or state
securities laws, in which case the applicable legend (or legends) may be
removed.

 

(c)        Any
legend endorsed on a certificate for Shares pursuant to Section 4.7 or Section
11.2 hereof and any stop transfer instructions with respect to such Shares
shall be removed, and the Company shall issue a certificate without such legend
to the Holder of such Shares, if (i) such Holder provides the Company with
an opinion of counsel reasonably acceptable to the Company, in form and
substance reasonably satisfactory to the Company, that a public sale, transfer
or assignment of such Shares may be made without registration, or
(ii) such Shares may be sold to the public without restriction pursuant to
Rule 144 promulgated under the Securities Act or any similar provision.

 

11.3         Furnishing
of Information.  The Company
covenants to timely file (or obtain extensions in respect thereof and the file
within the applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to Section 13(a) or 15(d) of the
Exchange Act.  If at any time prior to
the date on which a Holder may resell all of its Shares without volume
restrictions pursuant to Rule 144(k) promulgated under the Securities Act (as
determined by counsel to the Company, which may be counsel employed by the
Company, pursuant to a written opinion letter of the Company’s counsel to such
effect, if necessary, addressed and acceptable to the Company’s transfer agent
for the benefit of and enforceable by the Investors) the Company is not
required to file reports pursuant to such sections, it will prepare and furnish
to the Investors and make publicly available information in accordance with
Rule 144(c) promulgated under the Securities Act.  The Company further covenants that it will
take such further action as any Holder of Shares may reasonably request, all to
the extent required from time to time to enable such Holder to sell Shares
without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 promulgated under the Securities Act, including
providing the legal opinion referenced above in this Section (if required by
the Company’s transfer agent).  Upon the
request of any such Holder, the Company 

 

35

 

shall deliver to such
Holder written certifications of the Company executed by a duly authorized
officer on behalf of the Company as to whether it has complied with such
requirements of Rule 144(c).

 

11.4         Certain
Other Restrictions.

 

(a)        Notwithstanding
anything herein to the contrary, the Company agrees that if, within the
first six (6) months after the date hereof (such six (6) month period, the “Blocked Period”), it gives notice
to the Investors that it is exercising its right to convert shares of
Series A Preferred into Common Stock pursuant to Section 5(b) of
the Articles of Amendment or that it is exercising its right to repurchase
shares of Series A Preferred Stock pursuant to Section 8 of the Articles
of Amendment (either such notice, the “Company Notice”),
and the Company receives notice from the Investors (the “Investor
Notice”) within five (5) Business Days after the date of such
Company Notice that the Investors have directly or indirectly purchased
shares of Common Stock or derivatives thereof during the Blocked Period
together with documentation reasonably acceptable to the Company evidencing such
securities transaction, the Company shall be precluded from consummating such
conversion or repurchase, as the case may be.  Notwithstanding the
foregoing, the Company shall not be so precluded from effecting such conversion
or repurchase if it delivers to the Investors (i) an unqualified opinion of
nationally recognized counsel, in substance reasonably satisfactory to the
Investors and based on factual information supplied by the Investors, that such
conversion or repurchase is not subject to the provisions of Section 16 of the
Exchange Act and (ii) if permitted under applicable law, an indemnity from the
Company indemnifying and holding the Investors harmless in the event such legal
opinion proves to be incorrect in any material respect.

 

(b)        If
the Company is precluded from effecting a conversion or repurchase pursuant to
Section 11.4(a) hereof, once the Blocked Period has ended, the Company can
elect, within five (5) Business Days of such Company Notice to effect such
conversion or repurchase at the price per share indicated in such Company Notice
within ten (10) Business Days of the end of the Blocked Period.

 

12.   Miscellaneous.

 

12.1         Amendments
and Waivers.  Any term of this
Agreement may be amended, and the observance of any term of this Agreement or
may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the written consent of the Company
and with the written consent of a Majority in Interest of the Investors. Any
amendment or waiver effected in accordance with this Section 12.1 shall be
binding upon each future holder of the Preferred Shares and the Company.

 

12.2         No
Waiver.  It is agreed that a waiver
by any party of a breach of any provision of this Agreement shall not operate,
or be construed, as a waiver of any subsequent breach by the breaching party.

 

12.3         Assignability.  Neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be
assignable by the Company without the prior written consent of a Majority in
Interest of the Investors.  Any right,
remedy, obligation or 

 

36

 

liability arising
hereunder or by reason hereof shall be assignable by the Investors without the
prior written consent of the Company. 
The Investors may purchase the Preferred Shares (pursuant hereto), the
Investor Warrants (pursuant to the Investor Warrant Agreements) and the Common
Shares as nominee.

 

12.4         Entire
Agreement.  This Agreement, the
Exhibits, Appendices 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.

 

12.5         Notices.  Except as otherwise provided in this
Agreement, notices and other communications under this Agreement shall be in
writing and shall be deemed properly served if: (i) mailed by registered or
certified mail, return receipt requested, (ii) delivered by a recognized
overnight courier service, (iii) delivered personally, or (iv) sent by
facsimile transmission, addressed to the individual listed below for each party
at the address set forth below or at such other address or to the attention of
such other officers as such party shall have furnished in writing pursuant to
this Section 12.5.  Such notice shall be
deemed to have been received: (i) five (5) days after the date of
mailing if sent by certified or registered mail, (ii) one (1)
Business Day after delivered to an overnight courier for next Business Day
delivery, (iii) the date of delivery if personally delivered, or (iv) the next
succeeding Business Day after transmission by facsimile.

 

If to the Company:

 

Sports Entertainment
Enterprises, Inc. 

650 Madison Avenue

16th Floor

New York, New York 10022

Facsimile: 212-753-3188

Attention: Howard Tytel, Esq.

 

with copies (which shall
not constitute notice) to each of:

 

Paul, Hastings, Janofsky
& Walker LLP

Park Avenue Tower

75 East 55th Street

New York, New York  10022

Facsimile:  (212) 230-7834

Attention:  William F. Schwitter, Esq.

 

If to the Investors:

 

The Huff Alternative
Fund, L.P.

1776 On The Green

67 Park Place

Morristown, New Jersey  07960

Facsimile:  (973) 984-5818

Attention:  Bryan Bloom, Esq.

 

37

 

with a copy (which shall
not constitute notice) to:

Nixon Peabody LLP

437 Madison Avenue 

New York, New York  10022 

Facsimile:  (866) 947-2363 

Attention: Lauren E. Wiesenberg, Esq.

 

 

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).

 

12.6         Governing
Law; Submission to Jurisdiction. 
This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York applicable to agreements made and performed
therein, without giving effect to any conflict of law provisions thereof other
than New York General Obligations Law Sections 5-1401 and 5-1402.  Each of the Company and the Investors hereby
irrevocably consents to the exclusive jurisdiction of the United States
District Court for the Southern District of New York or the courts of the State
of New York located in New York County, New York, in any suit, action or
proceeding based on or arising under this Agreement and the other Transaction
Documents and irrevocably agree that all claims in respect of such suit or
proceeding shall be determined in such courts. 
The Company and the Investors 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 the
Investors to serve process in any manner permitted by law.  The foregoing consents to jurisdiction and
service of process shall not constitute general consents to service of process
in the State of New York for any purpose except as relates to any suit, action
or proceeding arising out of or in connection with this Agreement and the other
Transaction Documents, and shall not be deemed to confer rights on any Person
other than the respective parties to this Agreement.

 

12.7         Waiver
of Jury Trial.  EACH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, 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 

 

38

 

THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12.7.

 

12.8         Severability.  The holding of any provision of this
Agreement to be invalid or unenforceable by a court of competent jurisdiction
shall not affect any other provision of this Agreement, which shall remain in
full force and effect. If any provision of this Agreement shall be declared by
a court of competent jurisdiction to be invalid, illegal or incapable of being enforced
in whole or in part, such provision shall be interpreted so as to remain
enforceable to the maximum extent permissible consistent with applicable law
and the remaining conditions and provisions or portions thereof shall
nevertheless remain in full force and effect and enforceable to the extent they
are valid, legal and enforceable, and no provisions shall be deemed dependent
upon any other covenant or provision unless so expressed herein.

 

12.9         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, other than the Indemnified Parties as
provided in Section 9 hereof.

 

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

 

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

 

12.12       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 

 

39

 

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.

 

12.13       Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of the Parties and their respective
successors and assigns, except that the Company shall not have the right to
assign its rights or obligations hereunder or any interest herein without the
prior written consent of the Holder which may be withheld for any reason.

 

12.14       Publicity.  No public release or announcement concerning
the transactions contemplated hereby shall be issued by the Company or the Investors
without the prior consent of the other party (the consent of the Investors
being evidenced by the consent of a Majority in Interest of the Investors),
which will not be unreasonably withheld or delayed, except as such release or
announcement may be required by law or the applicable rules or regulations of
any securities exchange or securities market. 
In addition, the Company will make such other filings and notices in the
manner and time required by the Commission.

 

12.15       Further
Assurances.  The Parties agree to
execute and deliver all such further documents, agreements and instruments and
take such other and further action as may be reasonably necessary or
appropriate to carry out the purposes and intent of this Agreement, including
without limitation, entering into the other Transaction Documents as
contemplated hereby.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

40

 

IN WITNESS WHEREOF, the
Parties have caused this Agreement to be duly signed as of the date first above
written.

 

 

	
  SPORTS
  ENTERTAINMENT ENTERPRISES, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Thomas P.
  Benson

  	
   

  
	
   

  	
  Name: 

  	
  Thomas P. Benson

  
	
   

  	
  Title:

  	
  Executive Vice
  President, Cheif Financial

  Officer and Treasurer

  
	
   

  
	
   

  
	
  THE
  HUFF ALTERNATIVE FUND, L.P.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Edwin M.
  Banks

  	
   

  
	
   

  	
  Name: 

  	
  Edwin M. Banks

  
	
   

  	
  Title:

  	
  Chief Investment
  Officer

  
	
   

  
	
   

  
	
  THE
  HUFF ALTERNATIVE PARALLEL FUND, L.P.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Edwin M.
  Banks

  	
   

  
	
   

  	
  Name: 

  	
  Edwin M. Banks

  
	
   

  	
  Title:

  	
  Chief Investment
  Officer

  
						

 

 

SIGNATURE
PAGE TO STOCK PURCHASE AGREEMENT

 

 

APPENDIX 1

 

 

EXHIBIT A

 

FORM OF INVESTOR
WARRANTS

 

 

A-1

 

EXHIBIT B

 

FORM OF
REGISTRATION RIGHTS AGREEMENT

 

 

B-1

 

EXHIBIT C

 

FORM OF ARTICLES
OF AMENDMENT

 

 

C-1

 

EXHIBIT D

 

FORM OF OPINION OF
COUNSEL

 

 

D-1Exhibit
10.8

 

STOCK PLEDGE AGREEMENT

 

This Stock Pledge Agreement (this “Agreement”), dated as of February 7,
2005, among RFX Acquisition LLC, a Delaware limited liability company (the “Pledgee”),
and each of the undersigned pledgors (each such undersigned pledgor, a “Pledgor”
and collectively, the “Pledgors”).

 

RECITALS

 

WHEREAS, the Pledgors own an aggregate of 605,856 shares of the common stock, no par value
per share (the “Common Stock”), of Sports Entertainment Enterprises,
Inc., a Colorado corporation (the “Company”);

 

WHEREAS, the Company, Pledgee, Pledgors and ASI Group LLC have entered
into a Purchase Agreement, dated as of December 15, 2004 (as amended,
modified, restated or supplemented from time to time, the “Purchase
Agreement”), pursuant to which, among other things, the Pledgee will
purchase from the Company 30,464,072 shares of Common Stock in consideration
for an aggregate purchase price of $3,046,407.20 from the Pledgee to the
Company; and

 

WHEREAS, in order to induce the Pledgee to consummate the transactions
contemplated by the Purchase Agreement, each Pledgor has agreed to pledge and
grant a security interest in the collateral described herein to the Pledgee on
the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration the receipt of which is hereby acknowledged, the parties
hereto agree as follows:

 

1.                                       Defined
Terms.  All capitalized terms used
herein which are not defined shall have the meanings given to them in the
Purchase Agreement.

 

2.                                       Pledge
and Grant of Security Interest.  To
secure the full and punctual performance of each and every obligation of the
Pledgors under Article VIII of the Purchase Agreement (collectively, the “Obligations”),
each Pledgor hereby pledges, assigns, hypothecates, transfers and grants a
security interest to Pledgee in all of the following (the “Collateral”):

 

(a)                                  the
shares of stock set forth on Schedule A annexed hereto and
expressly made a part hereof (together with any additional shares of stock or
other equity interests acquired by any Pledgor after the date hereof, the “Pledged
Stock”), the certificates representing the Pledged Stock and all dividends,
cash, instruments and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of the Pledged Stock;

 

(b)                                 all
additional shares of stock of the Company from time to time acquired by any
Pledgor in any manner in respect of or in exchange for any or all of the
Pledged Stock, including, without limitation, stock dividends or a distribution
in connection with any increase or

 

 

reduction of
capital, reclassification, merger, consolidation, sale of assets, combination
of shares, stock split, spin-off or split-off (which shares shall be deemed to
be part of the Collateral), and the certificates representing such additional
shares, and all dividends, cash, instruments and other property or proceeds
from time to time received, receivable or otherwise distributed in respect of
or in exchange for any or all of such shares; and

 

(c)                                  all
options and rights, whether as an addition to, in substitution of or in
exchange for any shares of any Pledged Stock and all dividends, cash,
instruments and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
such options and rights.

 

3.                                       Delivery
of Collateral.  All certificates
representing or evidencing the Pledged Stock shall be delivered to and held by
or on behalf of Pledgee pursuant hereto and shall be accompanied by duly
executed instruments of transfer or assignment in blank, all in form and
substance satisfactory to Pledgee.  Each
Pledgor hereby authorizes the Company upon demand by the Pledgee to deliver any
certificates, instruments or other distributions issued in connection with the
Collateral directly to the Pledgee, in each case to be held by the Pledgee,
subject to the terms hereof.  Upon a
Triggering Event (as defined below) that has occurred and is continuing beyond
any applicable grace period, the Pledgee shall have the right, during such time
in its discretion and without notice to the Pledgor, to transfer to or to
register in the name of the Pledgee or any of its nominees any or all of the
Foreclosed Collateral (as defined below). 
In addition, the Pledgee shall have the right at such time to exchange
certificates or instruments representing or evidencing Foreclosed Collateral
for certificates or instruments of smaller or larger denominations.

 

4.                                       Representations
and Warranties of each Pledgor.  Each
Pledgor jointly and severally represents and warrants to the Pledgee (which
representations and warranties shall be deemed to continue to be made until the
six (6) month anniversary of the Closing Date of the transactions contemplated
by the Purchase Agreement) that:

 

(a)                                  the
execution, delivery and performance by each Pledgor of this Agreement and the
pledge of the Collateral hereunder do not and will not result in any violation
of any agreement, indenture, instrument, license, judgment, decree, order, law,
statute, ordinance or other governmental rule or regulation applicable to any
Pledgor;

 

(b)                                 this
Agreement constitutes the legal, valid, and binding obligation of each Pledgor
enforceable against each Pledgor in accordance with its terms;

 

(c)                                  (i)
all Pledged Stock owned by each Pledgor is set forth on Schedule A
hereto and (ii) each Pledgor is the direct and beneficial owner of each share
of the Pledged Stock set forth opposite such Pledgor’s name;

 

(d)                                 all
of the shares of the Pledged Stock have been duly authorized, validly issued
and are fully paid and nonassessable;

 

(e)                                  no
consent or approval of any person, corporation, governmental body, regulatory
authority or other entity, is or will be necessary for (i) the execution,
delivery and performance of this Agreement, (ii) the exercise by the Pledgee of
any rights with respect to the

 

 

Collateral or
(iii) the pledge and assignment of, and the grant of a security interest in,
the Collateral hereunder;

 

(f)                                    there
are no pending or, to the best of Pledgor’s knowledge, threatened actions or
proceedings before any court, judicial body, administrative agency or
arbitrator which may materially adversely affect the Collateral;

 

(g)                                 each
Pledgor has the requisite power and authority to enter into this Agreement and
to pledge and assign the Collateral to the Pledgee in accordance with the terms
of this Agreement;

 

(h)                                 each
Pledgor owns each item of the Collateral and, except for the pledge and security
interest granted to Pledgee hereunder, the Collateral is free and clear of any
other security interest, pledge, claim, lien, charge, hypothecation,
assignment, offset or encumbrance whatsoever (collectively, “Liens”);

 

(i)                                     there
are no restrictions on transfer of the Pledged Stock contained in the
certificate of incorporation or by-laws (or equivalent organizational
documents) of the Company or otherwise which have not otherwise been
enforceably and legally waived by the necessary parties;

 

(j)                                     none
of the Pledged Stock has been issued or transferred in violation of U.S.
federal or state securities or “blue sky” laws, or similar laws of any other
domestic or foreign jurisdiction to which such issuance or transfer may be
subject;

 

(k)                                  the
pledge and assignment of the Collateral and the grant of a security interest
under this Agreement vest in the Pledgee all rights of each Pledgor in the
Collateral as contemplated by this Agreement; and

 

(l)                                     The
Pledged Stock constitutes 50% of the aggregate number of shares of Common Stock
held by the Pledgors as of the date hereof.

 

5.                                       Covenants.  Each Pledgor jointly and severally covenants
that, until the six (6) month anniversary of the Closing Date of the
transactions contemplated by the Purchase Agreement:

 

(a)                                  No
Pledgor will sell, assign, transfer, convey, or otherwise dispose of its rights
in or to the Collateral or any interest therein; nor will any Pledgor create,
incur or permit to exist any Lien whatsoever with respect to any of the
Collateral or the proceeds thereof other than that created hereby;

 

(b)                                 Each
Pledgor will, at its expense, defend Pledgee’s right, title and security
interest in and to the Collateral against the claims of any other party; and

 

(c)                                  Each
Pledgor shall at any time, and from time to time, upon the written request of
Pledgee, execute and deliver such further documents and do such further acts
and things as Pledgee may reasonably request in order to effect the purposes of
this Agreement including, but without limitation, delivering to Pledgee upon
the occurrence of a Triggering

 

 

Event
irrevocable proxies in respect of the Foreclosed Collateral in form
satisfactory to Pledgee.  Until receipt
thereof, upon a Triggering Event that has occurred and is continuing beyond any
applicable grace period, this Agreement shall constitute Pledgor’s proxy to
Pledgee or its nominee to vote all shares of Foreclosed Collateral then
registered in each Pledgor’s name.

 

6.                                       Voting
Rights and Dividends.  In addition to
the Pledgee’s rights and remedies set forth in Section 8 hereof, in case a
Triggering Event shall have occurred and be continuing, beyond any applicable
cure period, the Pledgee shall (i) be entitled to vote the Foreclosed
Collateral, (ii) be entitled to give consents, waivers and ratifications in
respect of the Foreclosed Collateral (each Pledgor hereby irrevocably
constituting and appointing the Pledgee, with full power of substitution, the
proxy and attorney-in-fact of each Pledgor for such purposes) and (iii) be
entitled to collect and receive for its own use cash dividends paid on the
Foreclosed Collateral.  No Pledgor shall
be permitted to exercise or refrain from exercising any voting rights or other
powers if, in the reasonable judgment of the Pledgee, such action would have a
material adverse effect on the value of the Collateral or any part thereof;
and, provided, further, that each Pledgor shall give at least five (5) days’
written notice of the manner in which such Pledgor intends to exercise, or the
reasons for refraining from exercising, any voting rights or other powers other
than with respect to any election of directors and voting with respect to any
incidental matters.  Following the
occurrence of a Triggering Event, all dividends and all other distributions in
respect of any of the Collateral, shall be delivered to the Pledgee to hold as
Collateral and shall, if received by any Pledgor, be received in trust for the
benefit of the Pledgee, be segregated from the other property or funds of any
other Pledgor, and be forthwith delivered to the Pledgee as Collateral in the
same form as so received (with any necessary endorsement).

 

7.                                       Triggering
Event.  A “Triggering Event” shall be
deemed to have occurred and may be declared by the Pledgee upon the happening
of any one or more of the following events:

 

(a)                                  The
incurrence of any Losses, directly or indirectly, by any Purchaser Indemnified
Party that give rise to an indemnity Obligation on the part of the Pledgors
under Article VIII of the Purchase Agreement;

 

(b)                                 Any
Pledgor shall default in the performance of any of its obligations under this
Agreement, and such default shall not be cured within ten (10) calendar days
after the occurrence thereof;

 

(c)                                  Any
representation or warranty of any Pledgor made herein or in the Purchase
Agreement shall be false or misleading in any material respect;

 

(d)                                 Any
portion of the Collateral is subjected to levy of execution, attachment,
distraint or other judicial process; or any portion of the Collateral is the
subject of a claim (other than by the Pledgee) of a Lien or other right or
interest in or to the Collateral and such levy or claim shall not be cured,
disputed or stayed within a period of ten (10) business days after the
occurrence thereof; or

 

(e)                                  Any
Pledgor shall (i) apply for, consent to, or suffer to exist the appointment of,
or the taking of possession by, a receiver, custodian, trustee, liquidator or
other

 

 

fiduciary of
itself or of all or a substantial part of its property, (ii) make a general
assignment for the benefit of creditors, (iii) commence a voluntary case under
any state or federal bankruptcy laws (as now or hereafter in effect), (iv) be
adjudicated a bankrupt or insolvent, (v) file a petition seeking to take
advantage of any other law providing for the relief of debtors, (vi) acquiesce
to, or fail to have dismissed, within sixty (60) days, any petition filed
against it in any involuntary case under such bankruptcy laws, or (vii) take
any action for the purpose of effecting any of the foregoing.

 

8.                                       Remedies.  In case a Triggering Event shall have
occurred and be declared by the Pledgee, the Pledgee may:

 

(a)                                  Transfer
into its name, or into the name of its nominee or nominees, (i) in the case of
a Triggering Event under Section 7(a) hereof, any or all of such portion
of the Collateral having a Fair Market Value (as defined below) equal to any
and all Losses (as such term is defined in Section 8.01 of the Purchase
Agreement) which may have been incurred, directly or indirectly, by any
Purchaser Indemnified Party (as such term is defined in Section 8.01 of
the Purchase Agreement) that give rise to an indemnity Obligation on the part
of the Pledgors under Article VIII of the Purchase Agreement, or (ii) in
the case of a Triggering Event under Sections 7(b), (c), (d) or (e) hereof, any
or all of such portion of the Collateral having a Fair Market Value equal to
the aggregate amount of 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, reasonable attorneys fees and
the like which may have been incurred, directly or indirectly, by the Pledgee
as a result of, or based upon or arising from such Triggering Event
(collectively, the “Foreclosed Collateral”);

 

(b)                                 Exercise
all corporate rights with respect to the Foreclosed Collateral including,
without limitation, all rights of conversion, exchange, subscription or any
other rights, privileges or options pertaining to any shares of the Foreclosed
Collateral as if it were the absolute owner thereof, including, but without
limitation, the right to exchange, at its discretion, any or all of the
Foreclosed Collateral upon the merger, consolidation, reorganization,
recapitalization or other readjustment of the Company thereof, or upon the
exercise by the Company of any right, privilege or option pertaining to any of
the Foreclosed Collateral, and, in connection therewith, to deposit and deliver
any and all of the Collateral with any committee, depository, transfer agent,
registrar or other designated agent upon such terms and conditions as it may
determine, all without liability except to account for property actually
received by it; and

 

(c)                                  Subject
to any requirement of applicable law, sell, assign and deliver the whole or,
from time to time, any part of the Foreclosed Collateral at the time held by
the Pledgee, at any private sale or at public auction, with or without demand,
advertisement or notice of the time or place of sale or adjournment thereof or
otherwise (all of which are hereby waived, except such notice as is required by
applicable law and cannot be waived), for cash or credit or for other property
for immediate or future delivery, and for such price or prices and on such
terms as the Pledgee in its sole discretion may determine, or as may be
required by applicable law.

 

 

The “Fair Market Value” shall be equal to the average of the closing
price per share of Common Stock of the Company as reported on any national
securities exchange, market or quotation system on which the Common Stock of
the Company is then listed for trading or quoted for each of the twenty (20)
trading days prior to: (i) the date that written notice is first delivered to
Pledgors by Pledgee (or its representative) under Section 8.06 of the
Purchase Agreement (in accordance with the provisions of Section 9.04 of
the Purchase Agreement), in the case of a Triggering Event under Section 7(a)
hereof, or (ii) the date of the Triggering Event, in the case of a Triggering
Event under Sections 7(b), (c), (d) and (e) hereof.

 

Each Pledgor hereby waives and releases any and all right or equity of
redemption, whether before or after sale hereunder.  At any such sale, unless prohibited by
applicable law, the Pledgee may bid for and purchase the whole or any part of
the Foreclosed Collateral so sold free from any such right or equity of
redemption.  All moneys received by the
Pledgee hereunder whether upon sale of the Foreclosed Collateral or any part
thereof or otherwise shall be held by the Pledgee and applied by it as provided
in Section 10 hereof.  No failure or
delay on the part of the Pledgee in exercising any rights hereunder shall
operate as a waiver of any such rights nor shall any single or partial exercise
of any such rights preclude any other or future exercise thereof or the
exercise of any other rights hereunder. 
The Pledgee shall have no duty as to the collection or protection of the
Collateral or any income thereon nor any duty as to preservation of any rights
pertaining thereto, except to apply the funds in accordance with the
requirements of Section 10 hereof. 
The Pledgee may exercise its rights with respect to property held
hereunder without resort to other security for or sources of reimbursement for
the Obligations.  In addition to the
foregoing, Pledgee shall have all of the rights, remedies and privileges of a
secured party under the Uniform Commercial Code of New York regardless of the
jurisdiction in which enforcement hereof is sought.

 

9.                                       Private
Sale.  Each Pledgor recognizes that
the Pledgee may be unable to effect (or to do so only after delay which would
adversely affect the value that might be realized from the Foreclosed
Collateral) a public sale of all or part of the Foreclosed Collateral by reason
of certain prohibitions contained in the Securities Act of 1933, as amended
(the “Securities Act”), and may be compelled to resort to one or more
private sales to a restricted group of purchasers who will be obliged to agree,
among other things, to acquire such Foreclosed Collateral for their own
account, for investment and not with a view to the distribution or resale
thereof.  Each Pledgor agrees that any
such private sale may be at prices and on terms less favorable to the seller
than if sold at public sales and that such private sales shall be deemed to
have been made in a commercially reasonable manner.  Each Pledgor agrees that the Pledgee has no
obligation to delay sale of any Foreclosed Collateral for the period of time
necessary to permit the Company to register the Foreclosed Collateral for
public sale under the Securities Act.

 

10.                                 Proceeds
of Sale.  The proceeds of any
collection, recovery, receipt, appropriation, realization or sale of the
Foreclosed Collateral shall be applied by the Pledgee as follows:

 

(a)                                  First,
to the payment of all costs, reasonable expenses and charges of the Pledgee and
to the reimbursement of the Pledgee for the prior payment of such costs,
reasonable expenses and charges incurred in connection with the care and
safekeeping of the Collateral (including, without limitation, the reasonable
expenses of any sale or any other disposition of any

 

 

of the
Foreclosed Collateral), the expenses of any taking, attorneys’ fees and
reasonable expenses, court costs, any other fees or expenses incurred or
expenditures or advances made by Pledgee in the protection, enforcement or
exercise of its rights, powers or remedies hereunder;

 

(b)                                 Second,
to the payment or satisfaction of the Obligations or any such other 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, reasonable attorneys fees and the like which may have been incurred,
directly or indirectly, by the Pledgee as a result of, or based upon or arising
from any Triggering Event, in whole or in part, in such order as the Pledgee
may elect, whether or not such Obligations or any such other amounts are then
due;

 

(c)                                  Third,
to such persons, firms, corporations or other entities as required by
applicable law including, without limitation, Section 9-504(1) (c) of the
UCC; and

 

(d)                                 Fourth,
to the extent of any surplus to the Pledgors or as a court of competent
jurisdiction may direct.

 

In the event that the proceeds of any collection, recovery, receipt,
appropriation, realization or sale are insufficient to satisfy the Obligations,
each Pledgor shall be jointly and severally liable for the deficiency plus the
costs and fees of any attorneys employed by Pledgee to collect such deficiency.

 

11.                                 Release
of Collateral.  Provided all
Obligations secured hereunder shall at the time have been paid or performed in full
and there does not otherwise exist any Triggering Event under Section 7
hereof (and Pledgee has not received any notification of any existing or
threatened claim or commencement of any action or proceeding or any other event
or occurrence that could reasonably be expected to result in a Triggering
Event), the Pledged Stock, together with any additional Collateral which may
hereafter be pledged and deposited hereunder, shall be released from pledge and
returned to the Pledgors as soon as practicable following the six (6) month
anniversary of the Closing Date of the transactions contemplated by the
Purchase Agreement; provided, however, that under no
circumstances shall any Pledged Stock or any other Collateral be released if
previously applied to the payment of any Obligations secured hereunder.

 

12.                                 Waiver
of Marshaling.  Each Pledgor hereby
waives any right to compel any marshaling of any of the Collateral.

 

13.                                 No
Waiver.  Any and all of the Pledgee’s
rights with respect to the Liens granted under this Agreement shall continue
unimpaired, and Pledgor shall be and remain obligated in accordance with the
terms hereof, notwithstanding (a) the bankruptcy, insolvency or reorganization
of any Pledgor, (b) the release or substitution of any item of the Collateral
at any time, or of any rights or interests therein, or (C) any delay, extension
of time, renewal, compromise or other indulgence granted by the Pledgee in
reference to any of the Obligations. 
Each Pledgor hereby waives all notice of any such delay, extension,
release, substitution, renewal, compromise or other indulgence, and hereby
consents to be bound hereby as fully and effectively as if such Pledgor had
expressly agreed thereto in advance.  No
delay or extension of

 

 

time by the
Pledgee in exercising any power of sale, option or other right or remedy
hereunder, and no failure by the Pledgee to give notice or make demand, shall
constitute a waiver thereof, or limit, impair or prejudice the Pledgee’s right
to take any action against any Pledgor or to exercise any other power of sale,
option or any other right or remedy.

 

14.                                 Expenses.  The Collateral shall secure, and each Pledgor
shall pay to Pledgee on demand, from time to time, all reasonable costs and
expenses, (including but not limited to, reasonable attorneys’ fees and costs,
taxes, and all transfer, recording, filing and other charges) of, or incidental
to, the custody, care, transfer, administration of the Collateral or any other
collateral, or in any way relating to the enforcement, protection or
preservation of the rights or remedies of the Pledgee under this Agreement or
with respect to any of the Obligations.

 

15.                                 The
Pledgee Appointed Attorney-In-Fact and Performance by the Pledgee.  Upon the occurrence of a Triggering Event,
each Pledgor hereby irrevocably constitutes and appoints the Pledgee as such
Pledgor’s true and lawful attorney-in-fact, with full power of substitution, to
execute, acknowledge and deliver any instruments and to do in such Pledgor’s
name, place and stead, all such acts, things and deeds for and on behalf of and
in the name of such Pledgor, which such Pledgor could or might do or which the
Pledgee may deem necessary, desirable or convenient to accomplish the purposes
of this Agreement, including, without limitation, to execute such instruments
of assignment or transfer or orders and to register, convey or otherwise
transfer title to the Foreclosed Collateral into the Pledgee’s name.  Each Pledgor hereby ratifies and confirms all
that said attorney-in-fact may so do and hereby declares this power of attorney
to be coupled with an interest and irrevocable. 
If any Pledgor fails to perform any agreement herein contained, the
Pledgee may itself perform or cause performance thereof, and any costs and
expenses of the Pledgee incurred in connection therewith shall be paid by the
Pledgors as provided in Section 10 hereof.

 

16.                                 Waivers.

 

(e)                                  EACH
PARTY HERETO HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH,
OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF
THE PARTIES HERETO OR ANY OTHER AGREEMENT EXECUTED OR DELIVERED BY THEM IN CONNECTION
HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER
NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR
OTHERWISE AND EACH PARTY HERETO HEREBY AGREES AND CONSENTS THAT ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A
JURY, AND THAT ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH
ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH PARTY TO THE WAIVER OF ITS
RIGHT TO TRIAL BY JURY.

 

17.                                 Captions.  All captions in this Agreement are included
herein for convenience of reference only and shall not constitute part of this
Agreement for any other purpose.

 

 

18.                                 Miscellaneous.

 

(f)                                    This
Agreement constitutes the entire and final agreement among the parties with
respect to the subject matter hereof and may not be changed, terminated or
otherwise varied except by a writing duly executed by the parties hereto.

 

(g)                                 No
waiver of any term or condition of this Agreement, whether by delay, omission
or otherwise, shall be effective unless in writing and signed by the party
sought to be charged, and then such waiver shall be effective only in the
specific instance and for the purpose for which given.

 

(h)                                 In
the event that any provision of this Agreement or the application thereof to
any Pledgor or any circumstance in any jurisdiction governing this Agreement
shall, to any extent, be invalid or unenforceable under any applicable statute,
regulation, or rule of law, such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform
to such statute, regulation or rule of law, and the remainder of this Agreement
and the application of any such invalid or unenforceable provision to parties,
jurisdictions, or circumstances other than to whom or to which it is held
invalid or unenforceable shall not be affected thereby, nor shall same affect
the validity or enforceability of any other provision of this Agreement.

 

(i)                                     This
Agreement shall be binding upon Pledgee and its successors and assigns and upon
Pledgors and their respective executors, heirs and legatees of their respective
estates and the Pledgors’ permitted successors and assigns.  Neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be
assignable by any Pledgor without the prior written consent of the
Pledgee.  Any right, remedy, obligation
or liability arising hereunder or by reason hereof may be assignable by Pledgee
without the prior written consent of any of the Pledgors.

 

(j)                                     Any
notice or other communication required or permitted pursuant to this Agreement
shall be given in accordance with the Purchase Agreement.

 

(k)                                  This
Agreement shall be governed by and construed and enforced in all respects in
accordance with the laws of the State of New York applied to contracts to be
performed wholly within the State of New York.

 

(l)                                     EACH
PLEDGOR EXPRESSLY CONSENTS TO THE JURISDICTION AND VENUE OF EACH COURT OF
COMPETENT JURISDICTION LOCATED IN THE STATE OF NEW YORK FOR ALL PURPOSES IN
CONNECTION WITH THIS AGREEMENT.  ANY
JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY ANY MATTER OR CLAIM IN
ANY WAY ARISING OUT OF, RELATED TO OR CONNECTED WITH THIS AGREEMENT SHALL BE
BROUGHT ONLY IN A STATE COURT LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW
YORK.  EACH PLEDGOR FURTHER CONSENTS THAT
ANY SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING, WITHOUT
LIMITATION, ANY NOTICE OR MOTION OR OTHER APPLICATION TO EITHER OF THE
AFOREMENTIONED COURTS OR A JUDGE THEREOF) OR ANY NOTICE IN CONNECTION WITH ANY

 

 

PROCEEDINGS
HEREUNDER, MAY BE SERVED INSIDE OR OUTSIDE OF THE STATE OF NEW YORK OR THE
SOUTHERN DISTRICT OF NEW YORK BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, OR BY PERSONAL SERVICE PROVIDED A REASONABLE TIME FOR APPEARANCE IS
PERMITTED, OR IN SUCH OTHER MANNER AS MAY BE PERMISSIBLE UNDER THE RULES OF
SAID COURTS.  EACH PLEDGOR WAIVES ANY
OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED HEREON AND SHALL
NOT ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE OR BASED UPON
FORUM NON CONVENIENS.

 

(m)                               This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which when taken together shall constitute one
and the same agreement.  Any signature
delivered by a party by facsimile transmission shall be deemed an original
signature hereto.

 

[Signature Page Follows]

 

 

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

 

	
   

  	
  PLEDGEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RFX
  ACQUISITION LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  F.X. Sillerman

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert F.X.
  Sillerman

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PLEDGORS:

  
	
   

  	
   

  
	
   

  	
  BORETA
  ENTERPRISES, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald
  S. Boreta

  	
   

  
	
   

  	
  Name:  Ronald S. Boreta

  
	
   

  	
  Title:  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Ronald
  S. Boreta

  	
   

  
	
   

  	
  Ronald S.
  Boreta

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ John
  Boreta

  	
   

  
	
   

  	
  John Boreta

  
									

 

 

SCHEDULE A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]