Document:

Exhibit
4.5

 

REGISTRATION
RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of February 7,
2005 by and among Sports Entertainment Enterprises, Inc., a corporation
organized and existing under the Business Corporation Act of the State of
Colorado (the “Company”) and The Promenade Trust, a grantor trust
created under the laws of Tennessee (the “Trust”) (each a “Party”,
and collectively, the “Parties”).

 

RECITALS:

 

A.                                   Concurrently
with the execution of this Agreement, the Parties and RFX Acquisition LLC, a
Delaware limited liability company, have entered into that certain Contribution
and Exchange Agreement, dated December 15, 2004 (the “Contribution
Agreement”), pursuant to which the Trust has received shares of Series B
Voting Convertible Preferred Stock of the Company (the “Series B Preferred
Stock”) convertible into shares of common stock of the Company, no par
value (the “Common Stock”) in exchange for the contribution to the
Company of certain assets related to the Business (as defined in the
Contribution Agreement).

 

B.                                     Pursuant
to the Contribution Agreement, the Company has agreed to grant the Holders (as
defined below) the registration rights set forth in this Agreement.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is 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):

 

(a)                                  “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.

 

(b)                                 “Agreement”
has the meaning set forth in the Preamble.

 

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

 

(d)                                 “Common
Stock” means shares of common stock, no par value, of the Company.

 

(e)                                  “Company”
has the meaning set forth in the Preamble.

 

 

(f)                                    “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.

 

(g)                                 “Form
S-1” means such form under the Securities Act as in effect on the date
hereof or any registration form under the Securities Act subsequently adopted
by the SEC used for the initial public offering of securities.

 

(h)                                 “Form
S-3” means such form under the Securities Act as in effect on the date
hereof or any registration form under the Securities Act subsequently adopted
by the SEC which permits inclusion or incorporation of substantial information
by reference to other documents filed by the Company with the SEC.

 

(i)                                     “Holder”
means any Person owning or having the right to acquire Registrable Securities, or
any assignee thereof in accordance with Section 11 hereof. If the Company
receives conflicting instructions, notices or elections from two or more
Persons with respect to the same Registrable Securities, the Company may act
upon the basis of the instructions, notice or election received from the
registered owner of such Registrable Securities.

 

(j)                                     “Initiating
Holders” means the Holder(s) initiating a registration request under Section 2(a)
below.

 

(k)                                  “Immediate
Family” means any relationship by blood, marriage, or adoption, not more
remote than first cousin.

 

(l)                                     “Trust”
has the meaning set forth in the Preamble.

 

(m)                               “Permitted Transferee” means (i)
the Holder or the beneficiary as of the date hereof of the Holder; (ii) any
member of the Immediate Family or any natural Person in clause (i); (iii) any
descendant of any natural Person identified in clause (i) or (ii) or member of
the Immediate Family of any such descendant; or (iv) or any other trust or
other similar entity formed for the direct or indirect benefit of any natural
Person identified in clauses (i) through (iii).

 

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

 

(o)                                 “Contribution
Agreement” has the meaning set forth in the Recitals.

 

(p)                                 “Register,”
“registered,” and “registration” refer to a registration effected
by preparing and filing a registration statement or similar document in
compliance with the Securities Act, and the declaration or ordering of
effectiveness of such registration statement or document by the SEC.

 

(q)                                 “Registrable
Securities” means, collectively, (i) any Common Stock directly or
indirectly issuable or issued upon conversion of the Series B Preferred Stock

 

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owned by the Holders or their
Permitted Transferees, (ii) the 500,000 shares of Common Stock issued to the
Trust on February 7, 2005 and (iii) any shares of Common Stock hereafter
distributed by the Company as a result of a stock dividend, stock split,
reclassification, recapitalization or otherwise by virtue of the ownership of
shares or warrants described in the immediately preceding clause (i); provided,
however, that any such securities shall cease to be Registrable
Securities when (A) such securities shall have been registered under the
Securities Act, the registration statement with respect to the sale of such securities
shall have become effective under the Securities Act and such securities shall
have been disposed of pursuant to such effective registration statement; (B)
such securities shall have been otherwise transferred, if new certificates or
other evidences of ownership for them not bearing a legend restricting further
transfer and not subject to any stop transfer order or other restrictions on
transfer shall have been delivered by the Company and subsequent disposition of
such securities shall not require registration or qualification of such
securities under the Securities Act or any state securities law then in force;
(C) such securities shall cease to be outstanding; (D) the holding period that
would be applicable under Rule 144(k) of the Securities Act expires, such
securities are freely tradable by the Holder thereof under Rule 144(k) without
regard to volume limitations or other restrictions and the Company shall have
removed any restrictive legends and stop transfer restrictions with respect to
such securities; or (E) such securities are sold to the public pursuant to Rule
144 (or any similar provision then in force, but not Rule 144A) under the
Securities Act.

 

(r)                                    “Rule
144” means Rule 144 under the Securities Act, as such rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
Commission.

 

(s)                                  “Rule
144A” means Rule 144A under the Securities Act, as such rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
Commission.

 

(t)                                    “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.

 

(u)                                 “Series
B Request” means as of any date a request from Holders owning at least 66
2/3% of the shares of Common Stock issued upon conversion of the Series B
Preferred Stock on or prior to the date of such request.

 

(v)                                 “Series
B Preferred Stock” has the meaning set forth in the Recitals.

 

(w)                               “Series
A Preferred Stock” means the Series A 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 A Preferred Stock is
convertible.

 

(x)                                   “Violation”
means any of the following statements, omissions or violations:  (i) any untrue statement or alleged untrue
statement of a material fact contained or incorporated by reference in a
registration statement filed under or referred to in this Agreement,

 

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including any preliminary
prospectus or final prospectus contained therein or any amendments or
supplements thereto or any documents filed under state securities or “blue sky”
laws in connection therewith, (ii) the omission or alleged omission to state
therein a material fact required to be stated therein, including, without
limitation, in any document incorporated by reference therein, or necessary to
make the statements therein, including, without limitation, in any document
incorporated by reference therein, not misleading, or (iii) any violation or
alleged violation by the Company of the Securities Act, the Exchange Act, any
state securities law or any rule or regulation promulgated under the Securities
Act, the Exchange Act or any state securities law arising from, relating to or
in connection with the offer and sale of Registrable Securities pursuant to
this Agreement.

 

2.                                       Demand Registration.

 

(a)                                  Request
for Demand Registration.  If at any
time after the conversion of not less than 33 1/3% of the Series B Preferred
Stock into shares of Common Stock, the Company shall receive a written Series B
Request covering at least 66 2/3% of the converted securities then outstanding
that the Company file a registration statement under the Securities Act, then
the Company shall, within ten (10) days of the receipt thereof, give written
notice of such request to all Holders and, subject to the limitations of Section 2(b)
below, shall file (as expeditiously as practicable, and in any event within
sixty (60) days of the receipt of such request) and use commercially reasonable
efforts to effect, a registration statement under the Securities Act with
respect to all Registrable Securities which the Holders request to be
registered within twenty (20) days of the mailing of such notice by the Company
in accordance with Section 18 below.

 

(b)                                 If
the Initiating Holders intend to distribute the Registrable Securities covered
by their request pursuant to Section 2(a) by means of an underwriting,
they shall so advise the Company as a part of their request made pursuant to
this Section 2 and the Company shall include such information in the
written notice referred to in Section 2(a).  In such event, the right of any Holder to include
such Holder’s Registrable Securities in such registration shall be conditioned
upon such Holder’s participation in such underwriting and the inclusion of such
Holder’s Registrable Securities in the underwriting (unless otherwise mutually
agreed by a majority in interest of the Initiating Holders and such Holder) to
the extent provided herein.  A majority
in interest of the Initiating Holders of Registrable Securities participating
in the underwriting, in consultation with the Company, shall select the
managing underwriter or underwriters in such underwriting.

 

(c)                                  All
Holders proposing to distribute their securities through such underwriting
shall (together with the Company as provided in Section 4(f)) enter into
an underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting by a majority in interest of such
Initiating Holders; provided, however, that no Holder participating in such
underwriting shall be required to make any representations, warranties or
indemnities except as they relate to such Holder’s ownership of shares and
authority to enter into the underwriting agreement and to such Holder’s
intended method of distribution, and the liability of such Holder shall be
limited to an amount equal to the net proceeds from the offering received by
such Holder.

 

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(d)                                 Notwithstanding
any other provision of this Section 2, if the underwriter advises the
Initiating Holder in writing that marketing factors require a limitation of the
number of shares to be underwritten, then the Initiating Holder shall so advise
the Company and the Company shall so advise all Holders of Registrable
Securities which would otherwise be underwritten pursuant hereto, and the number
of shares of Registrable Securities that may be included in the underwriting
shall be allocated as follows:  (i)
first, among Holders of Registrable Securities that have elected to participate
in such underwritten offering, in proportion (as nearly as practicable) to the
aggregate amount of Registrable Securities held by all such Holders, until such
Holders have included in the underwriting all shares requested by such Holders
to be included and (ii) second, if the holders of the Series A Preferred Stock
have elected to participate in such underwritten offering, the holders of the
Series A Preferred Stock and the holders of the Series B Preferred Stock shall
be included on a pro rata basis based upon the number of Registrable Securities
requested to be included in such underwritten offering.  Without the consent of a majority in interest
of the Holders of Registrable Securities participating in a registration
referred to in Section 2(a), no securities other than Registrable
Securities and shares of Common Stock underlying the Series A Preferred Stock
shall be covered by such registration if the inclusion of such other securities
would result in a reduction of the number of Registrable Securities covered by
such registration or included in any underwriting or if, in the opinion of the
managing underwriter, the inclusion of such other securities would adversely
impact the marketing of such offering.

 

(e)                                  The
Company shall not be required to cause a registration pursuant to Section 2(a)
to be declared effective within a period of ninety (90) days of the effective
date of any registration statement of the Company effected in connection with a
Series B Request, provided the Company has not breached its obligations under Section 2(a).
Additionally, the Company shall not be required to effect a demand registration
and, upon written notice from the Company, the holders of the Registrable
Securities will discontinue the disposition of their securities during any
blackout period (i) if the Board of Directors of the Company determines in good
faith that effecting such a registration or continuing such disposition at such
time would have a material adverse effect upon a proposed sale of all (or
substantially all) of the assets of the Company or a merger, reorganization, recapitalization
or similar current transaction materially affecting the capital structure or
equity ownership of the Company, or (ii) if the Company is in possession
of material information which the Board of Directors of the Company determines
in good faith it is not in the best interests of the Company to disclose in a
registration statement at such time; provided, however, that the
Company may only delay a demand registration pursuant to this Section 2(b)
by delivery of a blackout notice within thirty (30) days of delivery of the
notice requesting a demand registration and, in any case, only for a period not
exceeding ninety (90) days (or until such earlier time as such transaction is
consummated or no longer proposed or the material information has been made
public) provided that the Company is actively employing in good faith
commercially reasonable efforts to cause such registration statement to be
declared effective.  There shall not be
more than one blackout period in any twelve (12) month period.

 

(f)                                    The
Company shall not be obligated to effect in the case of a demand request
pursuant to a Series B Request in accordance with the provisions of Section 2(a),
more than two (2) registrations, provided, however, that once the Company has
satisfied the requirements to file a Form S-3 there shall be no limit on the
number of demand requests made by the Trust or its Permitted Transferees.  In order to count as one of the demand
registrations

 

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pursuant to Section 2(a),
the registration statement in respect thereof must have not been withdrawn and
all Registrable Securities which the Holders requested to be registered
pursuant to it must have been so included and sold pursuant to an effective
registration statement.

 

3.                                       Piggyback Registration.  If (but
without any obligation to do so) the Company proposes to register (including
for this purpose a registration effected by the Company for stockholders other
than the Trust) any of its stock or other securities under the Securities Act
in connection with the public offering of such securities solely for cash
(other than a registration on Form S-8 (or similar or successor form) relating
solely to the sale of securities to participants in a Company stock option,
stock purchase or other stock-based compensation arrangement to the extent
includable on Form S-8 (or similar or successor form), or a registration
relating solely to an transaction under Rule 145 of the Securities Act on Form
S-4 (or similar or successor form) or a registration in which the only Common
Stock being registered is Common Stock issuable upon conversion of debt
securities or Common Stock comprising part of a unit or otherwise sold in
connection with the issuance or sale of debt securities which are also being
registered) (each such registration not withdrawn or abandoned prior to the
effective date thereof being herein called a “Piggyback Registration”),
the Company shall, at such time, promptly give each Holder of Registrable
Securities written notice of such registration not later than forty-five (45)
days prior to the anticipated filing date of such Piggyback Registration.  Upon the written request of each Holder of
Registrable Securities given within twenty (20) days after the delivery of such
notice by the Company in accordance with Section 18, the Company shall,
subject to the provisions of Section 8, use commercially reasonable
efforts to cause to be registered under the Securities Act all of the
Registrable Securities that each such Holder of Registrable Securities has
requested to be registered.  The Company
shall have no obligation under this Section 3 to make any offering of its
securities, or to complete an offering of its securities that it proposes to
make.  Any selling Holder of Registrable
Securities shall be permitted to withdraw all or any part of its Registrable
Securities from any Piggyback Registration at any time prior to the effective
date of such Piggyback Registration.

 

4.                                       Obligations of the Company.  Whenever
required under this Agreement to effect the registration of any Registrable
Securities, the Company shall use its commercially reasonable efforts to:

 

(a)                                  Prepare
and file with the SEC a registration statement with respect to such Registrable
Securities and use commercially reasonable efforts to cause such registration
statement to become effective, keep such registration statement effective for
up to one hundred eighty (180) days or until the Holders have completed the
distribution referred to in such registration statement, whichever occurs first
(but in any event for at least any period required under the Securities Act); provided that before filing such registration
statement or any amendments thereto, the Company will furnish to the Holders
copies of all such documents proposed to be filed.

 

(b)                                 Prepare
and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration
statement as may be necessary to comply with the provisions of the Securities
Act with respect to the disposition of all securities covered by such
registration statement.

 

6

 

(c)                                  Furnish
to the Holders such number of copies of such registration statement and of each
amendment and supplement thereto (in each case including all exhibits), such
number of copies of the prospectus contained in such registration statement
(including each preliminary prospectus and any summary prospectus) and any
other prospectus filed under Rule 424 under the Securities Act, in conformity
with the requirements of the Securities Act, and such other documents as
Holders may reasonably request in order to facilitate the disposition of
Registrable Securities owned by them.

 

(d)                                 Use
commercially reasonable efforts to register and qualify the securities covered
by such registration statement for offer and sale under such other securities
or “blue sky” laws of such states or jurisdictions as shall be reasonably
requested by the Holders, provided that the Company shall not be required in
connection therewith or as a condition thereto (i) to qualify to do business in
any state or jurisdiction where it would not otherwise be required to qualify
but for the requirements of this clause (d), or (ii) to file a general consent to
service of process in any such state or jurisdiction.

 

(e)                                  Use
diligent efforts to cause all Registrable Securities covered by such
registration statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary by virtue of the
Company’s business or operations to enable the seller or sellers thereof to
consummate the disposition of such Registrable Securities.

 

(f)                                    In
the event of any underwritten public offering, enter into and perform its
obligations under an underwriting agreement, in usual and customary form, with
the managing underwriter of such offering.

 

(g)                                 Notify
each Holder of Registrable Securities covered by such registration statement at
any time when a prospectus relating thereto is required to be delivered under
the Securities Act of the happening of any event of which it has knowledge as a
result of which the prospectus included in such registration statement, as then
in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing.

 

(h)                                 Notify
each Holder of Registrable Securities covered by such registration statement
and such Holder’s underwriters, if any, and confirm such advice in
writing:  (i) when the registration
statement has become effective, (ii) when any post-effective amendment to the
registration statement becomes effective and (iii) of any request by the SEC
for any amendment or supplement to the registration statement or prospectus or
for additional information.

 

(i)                                     Cooperate
with the selling holders of Registrable Securities and the managing
underwriters, if any, to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any restrictive
legends; and enable such Registrable Securities to be in such dominations and
registered in such names as the managing underwriters may request at least two
(2) business days prior to any sale of Registrable Securities to the
underwriters.

 

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(j)                                     If
any fact contemplated by clause (g) above shall exist, prepare a supplement or
post-effective amendment to the Registration Statement or the related
prospectus or any document incorporated therein by reference or file any other
required document so that, as thereafter delivered to the purchasers of the
Registrable Securities, the prospectus will not contain an untrue of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading.

 

(k)                                  Notify
each Holder of Registrable Securities if at any time the SEC should institute
or threaten to institute any proceedings for the purpose of issuing, or should
issue, a stop order suspending the effectiveness of the Registration
Statement.  Upon the occurrence of any of
the events mentioned in the preceding sentence, the Company will use
commercially reasonable efforts to prevent the issuance of any such stop order
or to obtain the withdrawal thereof as soon as possible.  The Company will advise each Holder of
Registrable Securities promptly of any order or communication of any public
board or body addressed to the Company suspending or threatening to suspend the
qualification of any Registrable Securities for sale in any jurisdiction.

 

(l)                                     Furnish
to any Holder requesting registration of Registrable Securities pursuant to
this Agreement, (i) on the date that such Registrable Securities are delivered
to the underwriters for sale in connection with a registration pursuant to this
Agreement, if such securities are being sold through underwriters, or, if such
securities are not being sold through underwriters, on the date that the
registration statement with respect to such securities becomes effective, an
opinion, dated such date, of the counsel representing the Company for the
purposes of such registration, in form and substance as is customarily given to
underwriters in an underwritten public offering, addressed to the underwriters,
if any, and to the Holders requesting registration of Registrable Securities.

 

(m)                               On
the date that the registration statement with respect to such securities
becomes effective, a “comfort” letter dated such date, from the independent
certified public accountants of the Company, in form and substance as is
customarily given by independent certified public accountants to underwriters
in an underwritten public offering, addressed to the underwriters, if any, and
to the Holders requesting registration of Registrable Securities, and, if such
securities are being sold through underwriters, a reaffirmation of such letter
on the date that such Registrable Securities are delivered to the underwriters
for sale.

 

(n)                                 As
soon as practicable after the effective date of the registration statement, and
in any event within sixteen (16) months thereafter, have “made generally
available to its security holders” (within the meaning of Rule 158 under the
Securities Act) an earning statement (which need not be audited) covering a
period of at least twelve (12) months beginning after the effective date of the
registration statement and otherwise complying with Section 11(a) of the
Securities Act.

 

(o)                                 Cause
all such Registrable Securities registered pursuant hereunder to be listed on
each securities exchange or quotation system on which similar securities issued
by the Company are then listed.

 

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(p)                                 Provide
a transfer agent and registrar for all Registrable Securities registered
pursuant hereunder and a CUSIP number for all such Registrable Securities, in
each case not later than the effective date of such registration and provide
the transfer agent with printed certificates for Registrable Securities in a
form eligible for deposit with The Depositary Trust Company.

 

(q)                                 Make
available for inspection by a representative of the holders of a majority in
number of the Registrable Securities, any underwriter participating in any
disposition pursuant to such Registration Statement, and any attorney or
accountant retained by the sellers or underwriter all financial and other
records, pertinent corporate documents and properties of the Company, and cause
the Company’s officers, directors and employees to supply all information
reasonably requested by any such representative, underwriter, attorney or
accountant in connection with the registration, with respect to each at such
time or times as the Company shall reasonably determine; subject to reasonable
restrictions and agreements to safeguard the confidentiality of confidential
information.

 

(r)                                    Cooperate
and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation by any underwriter (including
any “qualified independent underwriter” that is required to be retained in
accordance with the rules and regulations of the NASD).

 

5.                                       Obligations of the Holders.

 

(a)                                  It
shall be a condition precedent to the obligations of the Company to take any
action pursuant to this Agreement with respect to the Registrable Securities of
any selling Holder that such Holder shall furnish to the Company such
information regarding itself, the Registrable Securities held by it, and the
intended method of disposition of such securities as shall be required to
effect the registration of such Holder’s Registrable Securities.  If any registration statement or comparable
statement under the Securities Act refers to the Trust, any Permitted
Transferee or any of their respective affiliates, by name or otherwise, as the
holder of any securities of the Company then, unless counsel to the Company
advises the Company that the Securities Act requires that such reference be
included in any such statement, each such holder shall have the right to
require the deletion of such reference to itself and its Affiliates.

 

(b)                                 Upon
receipt of any notice from the Company of the happening of any transaction or
occurrence of any event of the kind specified in Sections 4(g) or 4(i), such
Holder will forthwith discontinue disposition of Registrable Securities
pursuant to any registration statement at issue until such Holder’s receipt of
copies of a supplemented or amended prospectus contemplated by Section 4(c)
and receives notice that any post-effective amendment (if required) has become
effective or until it is advised in writing by the Company that the use of the
applicable prospectus and registration statement may be resumed, and, if so
directed by the Company, such Holder will deliver to the Company (at the
Company’s expense) all copies in such Holder’s possession, other than permanent
file copies then in such Holder’s possession, of the registration statement and
prospectus covering such Registrable Securities current at the time of receipt
of such notice.

 

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6.                                       Expenses of Demand Registration.  All
expenses, other than underwriting discounts and commissions relating to
Registrable Securities, incurred in connection with registrations, filings or
qualifications pursuant to Section 2, including, without limitation, all
registration, filing and qualification fees, printers’ and accounting fees,
fees and disbursements of counsel for the Company, and the reasonable fees and
disbursements of one counsel (selected by the Initiating Holders) for the
selling Holders shall be borne by the Company.

 

7.                                       Expenses of Company Registration.  The
Company shall bear and pay all expenses incurred in connection with any
registration, filing or qualification of Registrable Securities with respect to
the registrations pursuant to Section 3 for each Holder, including without
limitation all registration, filing and qualification fees, printers’ and
accounting fees relating or apportionable thereto and the fees and
disbursements of one counsel for the selling Holders (selected by the Holders
of a majority of the Registrable Securities being registered), but excluding
underwriting discounts and commissions relating to Registrable Securities.

 

8.                                       Underwriting Requirements.  In
connection with any offering initiated by the Company involving an underwriting
of shares being issued by the Company, the Company shall not be required under Section 3
to include any Holder’s securities in such underwriting unless such Holder
accepts the terms of the underwriting as agreed upon between the Company and
the underwriters selected by it, and then only in such quantity as will not, in
the written opinion of the underwriters, exceed the largest number of
securities requested to be included in such offering which can be sold without
having an adverse effect on such offering by the Company; provided, however, that no
Holder participating in such underwriting shall be required to make any
representations, warranties or indemnities except as they relate to such Holder’s
ownership of shares and authority to enter into the underwriting agreement and
to such Holder’s intended method of distribution, and the liability of such
Holder shall be limited to an amount equal to the net proceeds from the
offering received by such Holder.  If the
total number of securities, including Registrable Securities, requested by
stockholders to be included in such offering (or in any other offering in which
Holders shall have the right to include Registrable Securities pursuant to Section 3)
exceeds the largest number of securities that, in the written opinion of the
underwriters, the underwriters reasonably believe can be sold without having an
adverse effect on such offering, then the Company shall be required to include
in the offering only that number of such securities, including Registrable
Securities, which the underwriters believe will not have an adverse effect on
such offering, in the following priority:

 

(a)                                  if
initiated by the Company: (i) first,
securities of the Company to be sold for the account of the Company; and (ii) second, the Registrable Securities
requested to be included by the holders of the Series B Preferred Stock and, in
the event the holders of the Series A Preferred Stock have, pursuant to rights
granted to them, indicated that they will participate in such offering, then
allocated (if necessary) pro rata on the basis of the number of Registrable
Securities and the shares of Common Stock underlying the Series A Preferred
Stock that each such party has requested to be included in such offering; or

 

(b)                                 if
initiated by a Person other than the Company, the Trust or the holders of the
Series B Preferred Stock: (i) first,
the securities requested to be included by such other Person; (ii) second, the Registrable Securities
requested to be included by the holders of the Series B Preferred Stock and, in
the event the holders of the Series A Preferred Stock have,

 

10

 

pursuant to rights granted to
them, indicated that they will participate in such offering, then allocated (if
necessary) pro rata on the basis of the number of Registrable Securities and
shares of Common Stock underlying the Series A Preferred Stock that each such
party has requested to be included in such offering; and (iii) third, securities of the Company to be
sold for the account of the Company; or

 

(c)                                  if
initiated by the holders of the Series B Preferred Stock: (i) first, the Registrable Securities
requested to be included by the holders of the Series B Preferred Stock and the
holders of the Series A Preferred Stock pro rata on the basis of the number of
Registrable Securities and shares of Common Stock underlying the Series A
Preferred Stock that each such party has requested to be included in such
offering; and (ii) second,
securities of the Company to be sold for the account of the Company.

 

For
purposes of this Section 8 for any selling stockholder which is a Holder
of Registrable Securities and which is a partnership, limited liability company
or corporation, the partners, retired partners, members and shareholders of
such Holder, or the estates and family members of any such partners, retired
partners and members and any trusts for the benefit of any of the foregoing
persons shall be deemed to be a single “selling Holder,” and any pro rata
reduction with respect to such “selling Holder” shall be based upon the
aggregate amount of shares carrying registration rights owned by all entities
and individuals included in such “selling Holder,” as defined in this sentence.

 

9.                                       Indemnification.  In the event any Registrable
Securities are included in a registration statement under this Agreement:

 

(a)                                  To
the extent permitted by law, the Company will indemnify and hold harmless each
Holder, its heirs, personal representatives, successors and assigns, each of
such Holder’s partners, officers, directors, members, employees and affiliates,
any underwriter (as defined in the Securities Act) for such Holder and each
Person, if any, who controls such Holder or underwriter within the meaning of
the Securities Act or the Exchange Act against any losses, claims, damages or
liabilities (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal or state law, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon a Violation; and the Company will pay to each such
indemnified party, as incurred, any legal or other expenses reasonably incurred
by them in connection with investigating or defending any such loss, claim,
damage, liability, or action; in enforcing this Section 9; provided,
however, that the indemnity agreement contained in this Section 9(a)
shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld, delayed or
conditioned), nor shall the Company be liable in any such case to a particular
indemnified party for any such loss, claim, damage, liability or action to the
extent that it arises out of or is based upon a Violation which occurs in
reliance upon and in conformity with written information furnished expressly
for use in connection with such registration by such indemnified party; provided,
further, that the indemnity agreement contained in this Section 9(a)
shall not apply to any underwriter to the extent that any such loss is based on
or arises out of an untrue statement or alleged untrue statement of a material
fact, or an omission or alleged omission to state a material fact, contained in
or omitted from any preliminary prospectus if the final prospectus shall
correct

 

11

 

such untrue statement or
alleged untrue statement, or such omission or alleged omission, and a copy of
the final prospectus has not been sent or given to such Person at or prior to
the confirmation of sale to such Person.

 

(b)                                 To
the extent permitted by law, each selling Holder will indemnify and hold
harmless the Company, each of its directors, each of its officers who has
signed the registration statement, each Person, if any, who controls the
Company within the meaning of the Securities Act, any underwriter, any other
Person selling securities in such registration statement and any controlling
Person of any such underwriter or other Person, against any losses, claims,
damages or liabilities (joint or several) to which any of the foregoing Persons
may become subject, under the Securities Act, the Exchange Act or other federal
or state law, insofar as such losses, claims, damages or liabilities (or
actions in respect thereto) arise out of or are based upon a Violation, in each
case to the extent (and only to the extent) that such Violation occurs in
reliance upon and in conformity with written information furnished by such
Holder expressly for use in connection with such registration; and each such
Holder will pay, as incurred, any legal or other expenses reasonably incurred
by any Person intended to be indemnified pursuant to this Section 9(b), in
connection with investigating or defending any such loss, claim, damage,
liability, or action; provided, however, that the indemnity
agreement contained in this Section 9(b) shall not apply to amounts paid
in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Holder, which consent shall
not be unreasonably withheld; and provided further, that, in no event shall the
liability of any Holder under this Section 9(b) exceed the net proceeds
from the offering received by such Holder; provided, further, that the
indemnity agreement contained in this Section 9(b) shall not apply to any
underwriter to the extent that any such loss is based on or arises out of an
untrue statement or alleged untrue statement of a material fact, or an omission
or alleged omission to state a material fact, contained in or omitted from any
preliminary prospectus if the final prospectus shall correct such untrue
statement or alleged untrue statement, or such omission or alleged omission,
and a copy of the final prospectus has not been sent or given to such Person at
or prior to the confirmation of sale to such Person.

 

(c)                                  Promptly
after receipt by an indemnified party under this Section 9 of notice of
the commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against any
indemnifying party under this Section 9, deliver to the indemnifying party
a written notice of the commencement thereof and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
the defense thereof with counsel mutually satisfactory to the parties, acting
reasonably; provided, however, that an indemnified party shall have the right to retain
its own counsel, with the fees and expenses to be paid by the indemnifying
party, if representation of such indemnified party by the counsel retained by
the indemnifying party would be inappropriate due to actual or potential
differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. 
The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such
indemnifying party of any liability to the indemnified party under this Section 9
except if, and only to the extent that, the indemnifying party is actually
prejudiced thereby; and such failure to deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to any
indemnified party otherwise than under this Section 9.  An indemnifying party may settle

 

12

 

any action or claim under this Section 9
at any time without the consent of the indemnified party so long as such
settlement involves no cost or liability to the indemnified party and includes
an unconditional release of the indemnified party from all liability with
respect to such claim or action.

 

(d)                                 The
obligations of the Company and Holders under this Section 9 shall survive
the completion of any offering of Registrable Securities in a registration
statement under this Agreement, and otherwise.

 

(e)                                  Any
indemnity agreements contained herein shall be in addition to any other rights
to indemnification or contribution which any indemnified party may have
pursuant to law or contract and shall remain operative and in full force and
effect regardless of any investigation made or omitted by or on behalf of any
indemnified party.

 

(f)                                    If
a court of competent jurisdiction holds that the foregoing indemnity is
unavailable, then the indemnifying party shall contribute to the amount paid or
payable by the indemnified party as a result of such losses, claims, damages,
liabilities or expenses (i) in such proportion as is appropriate to reflect the
relative benefits received by the indemnifying party on the one hand and the
indemnified party on the other (taking into consideration, among other things,
the fact that the provision of the registration rights and indemnification
hereunder was a material inducement to the Trust to purchase Registrable
Securities) or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law or provides a lesser sum to the indemnified party
than the amount hereinafter calculated, in such proportion as is appropriate to
reflect not only the relative benefits received by the indemnifying party on
the one hand and the indemnified party on the other (taking into consideration,
among other things, the fact that the provision of the registration rights and
indemnification hereunder is a material inducement to the Trust to purchase
Registrable Securities) but also the relative fault of the indemnifying party
and the indemnified party as well as any other relevant equitable
considerations.  The relative fault shall
be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by or on behalf of the
indemnifying party or the indemnified party and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission.  No Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any Person who
was not guilty of such fraudulent misrepresentation.  Notwithstanding anything to the contrary in
this Section 9, no Holder shall be required, pursuant to this Section 9,
to contribute any amount in excess of the net proceeds received by such
indemnifying party from the sale of securities in the offering to which the
losses, claims, damages, liabilities or expenses of the indemnified party
relate.

 

10.                                 Reports Under the Exchange Act.  With a
view to making available to the Holders the benefits of Rule 144 under the
Securities Act and any other rule or regulation of the SEC that may at any time
permit a Holder to sell securities of the Company to the public without
registration or pursuant to a registration on Form S-3, the Company agrees at
all times after 90 days after any registration statement covering a public
offering of securities of the Company under the Securities Act shall have
become effective, to:

 

13

 

(a)                                  make
and keep public information available, as those terms are understood and
defined in Rule 144 under the Securities Act;

 

(b)                                 use
commercially reasonable efforts (without unreasonable expense) to enable the
Holders to utilize Form S-3 for the sale of their Registrable Securities;

 

(c)                                  file
with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act; and

 

(d)                                 furnish
to any Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request (i) a written statement by the Company that it has complied with
the reporting requirements of Rule 144 under the Securities Act (at any time
after the effective date of the first registration statement filed by the
Company) and the Securities Act and Exchange Act (at any time after it has
become subject to such reporting requirements) or that it qualifies as a
registrant whose securities may be resold pursuant to Form S-3 (at any time it
so qualifies), (ii) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the Company, and (iii)
such other information as may be reasonably requested in availing any Holder of
any rule or regulation of the SEC which permits the selling of any such
securities without registration or pursuant to such form.

 

11.                                 Assignment of Registration Rights.  The
rights to cause the Company to register Registrable Securities pursuant to this
Agreement may be assigned in whole or in part by  a Holder to one or more of its Affiliates or
to one or more transferees or assignees of the Registrable Securities owned by
such Holder, provided that (in each case) such transferee or assignee
delivers to the Company a written instrument by which such transferee or
assignee agrees to be bound by the obligations imposed on Holders under this
Agreement to the same extent as if such transferee or assignee was a party
hereto; provided, further, such assignment shall not require
registration under the Securities Act. 
Except as specifically permitted in the preceding sentence, neither this
Agreement nor any Holder’s rights or privileges under this Agreement can be
assigned or transferred in whole or in part without the prior written consent
of the other parties.

 

12.                                 “Market Stand-Off” Agreement.  Each Holder hereby agrees that, during the
period of ninety (90) days following the effective date of a registration
statement of the Company filed under the Securities Act in connection with an
underwritten offering in which securities owned by such Holder are registered
for sale, it shall not, if requested by the Company and such underwriter,
directly or indirectly sell, offer to sell, contract to sell (including,
without limitation, any short sale), grant an option to purchase or otherwise
transfer or dispose of (other than to Permitted Transferees) any Common Stock
or any securities of the Company convertible into Common Stock held by it
except Common Stock included in such registration.  No Holder shall be bound by this Section 12
unless each officer, director and other stockholder of the Company holding in
excess of 5% of the then outstanding common share equivalents of the Company
shall have entered into and complied with an agreement substantially to the
effect of this Section 12.

 

14

 

In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to the Registrable Securities of the
Holders (and the shares or securities of every other person subject to the
foregoing restriction) until the end of such period.

 

Notwithstanding the foregoing, the obligations described in this Section 12
shall not apply to a registration relating solely to employee benefit plans on
Form S-1 or Form S-8 or similar forms which may be promulgated in the future,
or a registration relating solely to a transaction under Rule 145 of Securities
Act on Form S-4 or similar forms which may be promulgated in the future.

 

13.                                 Amendment; Waiver.  Any term
of this Agreement may be amended only with the written consent of the Company
and the Holders holding a majority of the Registrable Securities then held by
such Holders.  The observance of any
provision of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively) only with the written
consent of the party to be charged, provided that the Holders of a majority of
the Registrable Securities then outstanding may act on behalf of all Holders of
Registrable Securities.  Any amendment or
waiver effected in accordance with this Section 13 shall be binding upon
each Holder of Registrable Securities at the time outstanding, each future
Holder of all such securities, and the Company.

 

14.                                 Changes in Registrable Securities.  If, and
as often as, there are any changes in the Registrable Securities by way of
stock split, stock dividend, combination or reclassification, or through
merger, consolidation, reorganization or recapitalization, or by any other
means, appropriate adjustment shall be made in the provisions of this
Agreement, as may be required, so that the rights and privileges granted hereby
shall continue with respect to the Registrable Securities as so changed.  Without limiting the generality of the
foregoing, the Company will require any successor by merger or consolidation to
assume and agree to be bound by the terms of this Agreement, as a condition to
any such merger or consolidation.

 

15.                                 Entire Agreement.  This Agreement constitutes the entire
understanding and agreement among the parties relating to the subject matter
hereof and supersedes any and all prior agreements or understandings with
respect to the subject matter hereof. 
Nothing in this Agreement, express or implied, is intended to confer
upon any Person, other than the parties hereto and their respective successors
and assigns, any rights, remedies, obligations, or liabilities under or by
reason of this Agreement, except as expressly provided herein.

 

16.                                 Governing Law.

 

(a)                                  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York as applied to agreements among New York residents entered
into and to be performed entirely within New York.

 

(b)                                 The
jurisdiction and venue in any action brought by any party hereto pursuant to
this Agreement shall properly lie in any federal or state court located in the
State of New York.  By execution and
delivery of this Agreement, each party hereto irrevocably submits to the
jurisdiction of such courts for himself or itself and in respect of his or its
property with respect to such action. 
The parties irrevocably agree that venue would be proper in such

 

15

 

court, and hereby waive any
objection that such court is an improper or inconvenient forum for the
resolution of such action.  The parties
further agree that the mailing by certified or registered mail, return receipt
requested, of any process required by any such court shall constitute valid and
lawful service of process against them, without necessity for service by any
other means provided by statute or rule of court.

 

(c)                                  WAIVER OF JURY TRIAL  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY
CONTROVERSY OR DISPUTE THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES AND THEREFORE EACH SUCH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT
(I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH SUCH PARTY
UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) EACH SUCH
PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) EACH SUCH PARTY HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 16(C).

 

17.                                 Successors and Assigns.  The
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, permitted assigns (as provided in Section 11), heirs, executors
and administrators of the parties hereto.

 

18.                                 Notices.  Unless otherwise provided, any
notice required or permitted under this Agreement shall be given in writing and
shall be deemed effectively given or delivered upon receipt by the party to be
notified (including by telecopier, receipt confirmed) or five (5) days after
deposit with the United States Post Office, by registered or certified mail,
postage prepaid and addressed to the party to be notified (a) if to a party
other than the Company, at such party’s address set forth at the end of this
Agreement or at such other address as such party shall have furnished the
Company in writing, or, until any such party so furnishes an address to the
Company, then to and at the address of the last holder of the shares covered by
this Agreement who has so furnished an address to the Company, or (b) if to the
Company, at its address set forth at the end of this Agreement, or at such
other address as the Company shall have furnished to the parties in writing.

 

19.                                 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

 

16

 

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.

 

20.                                 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
“Sections” shall refer to corresponding provisions of this Agreement unless
otherwise expressly noted.

 

21.                                 Delays or Omissions; Remedies Cumulative.  It is
agreed that no delay or omission to exercise any right, power or remedy
accruing to the parties shall impair any such right, power or remedy, nor shall
it be construed to be a waiver of any such breach or default, or any
acquiescence therein, or of any similar breach or default thereafter occurring;
nor shall any waiver of any single breach or default be deemed a waiver of any
other breach or default theretofore or thereafter occurring.  It is further agreed that any waiver, permit,
consent or approval of any kind or character by a party of any breach or
default under this Agreement, or any waiver by a party of any provisions or
conditions of this Agreement must be in writing and shall be effective only to
the extent specifically set forth in writing and that all remedies, either
under this Agreement, or by law or otherwise afforded to a party, shall be
cumulative and not alternative.

 

22.                                 Counterparts.  This Agreement may be executed in
any number of counterparts, each of which shall be an original, but all of
which together shall constitute one instrument. 
Facsimile counterpart signatures shall be acceptable.

 

[SIGNATURE PAGES FOLLOW]

 

17

 

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

 

	
   

  	
  SPORTS
  ENTERTAINMENT ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas
  P. Benson

  	
   

  
	
   

  	
   

  	
  Name: Thomas
  P. Benson

  	
   

  
	
   

  	
   

  	
  Title:
  Executive Vice President,

  Chief Financial Officer and Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  PROMENADE TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Barry J.
  Siegel

  	
   

  
	
   

  	
   

  	
  Name: Barry
  J. Siegel

  	
   

  
	
   

  	
   

  	
  Title:
  Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary A.
  Hovey

  	
   

  
	
   

  	
   

  	
  Name: Gary
  A. Hovey

  	
   

  
	
   

  	
   

  	
  Title:
  Trustee

  	
   

  

 

18Exhibit 4.6

 

COMMON STOCK PURCHASE WARRANT

 

 

NEITHER THE WARRANT REPRESENTED BY THIS CERTIFICATE NOR THE SHARES
ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED. NEITHER THE WARRANT NOR SUCH SHARES MAY BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT, OR AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT.

 

 

SPORTS ENTERTAINMENT ENTERPRISES, INC.

 

 

	
  No.      

  	
   

  	
                              Shares

  

 

THIS CERTIFIES that, for value received,                                                         
(the “Holder”), is entitled to subscribe for and purchase from Sports
Entertainment Enterprises, Inc., a Colorado corporation (the “Company”), upon
the terms and conditions set forth herein, at any time after the date hereof,
and before 5:00 p.m., New York City time, on February 7, 2007 (the “Exercise
Period”),                         
shares, no par value, of the Company (“Common Stock”), at an exercise
price of $                      
per share (the “Exercise Price”). As used herein the term “this Warrant”
shall mean and include this Warrant and any Warrant or Warrants hereafter
issued as a consequence of the exercise or transfer of this Warrant in whole or
in part.

 

The number of shares of Common Stock issuable upon exercise of the
Warrant (the “Warrant Shares”) and the Exercise Price may be adjusted
from time to time as hereinafter set forth.

 

1.             This
Warrant may be exercised, at any time and from time to time, during the
Exercise Period, as to the whole or any lesser number of the respective whole
Warrant Shares, as follows:

 

(a)           by the surrender of
this Warrant (with the Form of Election at the end hereof duly executed) to the
Company at its office as set forth in the Form of Election attached hereto, or
at such other place as is designated in writing by the Company, together with
payment to the Company of an amount equal to the then applicable Exercise Price
multiplied by the number of respective Warrant Shares for which this Warrant is
being exercised.  Such payment may be
made by certified or bank cashier’s check payable to the order of the Company
or by wire transfer of immediately available funds to an account or accounts
specified in advance by the Company; or

 

(b)           by surrender of this
Warrant (with the Notice of Cashless Exercise at the end hereof duly executed)
to the Company at its office as set forth in the Notice of Cashless Exercise
attached hereto, or at such other place as is designated in writing by the

 

 

Company, in which event the Company shall issue to the Holder the
number of Warrant Shares determined as follows:

 

X = Y (A-B)/A

where:

X = the number of Warrant Shares to be issued to the Holder.

 

Y = the number of Warrant Shares with respect to which this Warrant is
being exercised.

 

A = the last sale price of the Common Stock for the trading day
immediately prior to the date of exercise, as reported on any national
securities exchange, market or quotation system on which the Common Stock is
then listed for trading or quoted.

 

B = the Exercise Price.

 

2.             Upon
the exercise of the Holder’s rights to purchase Warrant Shares, either pursuant
to Section 1(a) or 1(b) above, the Holder shall be deemed to be the holder of
record of the Warrant Shares issuable upon such exercise, notwithstanding that
the transfer books of the Company shall then be closed or certificates
representing such Warrant Shares shall not then have been actually delivered to
the Holder.  For purposes of Rule 144
promulgated under the Securities Act of 1933, as amended (the “Act”), it
is intended, understood and acknowledged that the Warrant Shares issued in a
cashless exercise transaction pursuant to Section 1(b) above shall be deemed to
have been acquired by the Holder, and the holding period for the Warrant Shares
shall be deemed to have commenced, on the issue date of this Warrant.  As soon as practicable after the exercise of
this Warrant either pursuant to Section 1(a) or 1(b) above, a certificate or
certificates for the Warrant Shares issuable upon such exercise, registered in
the name of the Holder or its designee, shall be issued by the Company to the
Holder.  If the Warrant should be
exercised in part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new Warrant evidencing the right of the
Holder to purchase the balance of the Warrant Shares (or portions thereof)
subject to purchase hereunder.

 

3.             The
Company shall be entitled to treat the registered holder of any Warrant on the
Warrant Register as the owner in fact thereof for all purposes and shall not be
bound to recognize any equitable or other claim to or interest in such Warrant
on the part of any other person, and shall not be liable for any registration
or transfer of Warrants which are registered or to be registered in the name of
a fiduciary or the nominee of a fiduciary unless made with the actual knowledge
that a fiduciary or nominee is committing a breach of trust in requesting such
registration or transfer, or with the knowledge of such facts that its
participation therein amounts to bad faith. 
This Warrant shall be transferable only on the books of the Company upon
delivery thereof duly endorsed by the Holder or by his duly authorized attorney
or representative, or accompanied by proper evidence of succession, assignment,
or authority to transfer.  In all cases
or transfer by an attorney, executor, administrator, guardian, or other legal

 

 

representative, duly authenticated evidence of his or its authority
shall be produced.  Upon any registration
of transfer, the Company shall promptly deliver a new Warrant or Warrants to
the person entitled thereto. The Company shall have no obligation to cause
Warrants to be transferred on its books to any person if, in the opinion of
counsel to the Company, such transfer does not comply with the provisions of
the Act, and the rules and regulations promulgated thereunder.

 

4.             The
Company shall at all times reserve and keep available out of its authorized and
unissued Common Stock, solely for the purpose of providing for the exercise of
the rights to purchase all Warrant Shares granted pursuant to this Warrant,
such number of shares of Common Stock as shall, from time to time, be
sufficient therefor. The Company covenants that all shares of Common Stock
issuable upon exercise of this Warrant, upon receipt by the Company of the full
Exercise Price therefor if such exercise is pursuant to Section 1(a) above, or
upon receipt by the Company of the Notice of Cashless Exercise duly executed if
such exercise is pursuant to Section 1(b) above, shall be duly authorized,
validly issued, fully paid, nonassessable, and free of preemptive rights.

 

5.             (a)           In
case the Company shall at any time after the date this Warrant was first issued
(i) declare a dividend on the outstanding shares of its Common Stock payable in
shares of its capital stock, (ii) subdivide the outstanding shares of its
Common Stock, (iii) combine the outstanding shares of its Common Stock into a
smaller number of shares, or (iv) issue any shares of its capital stock by
reclassification of the Common Stock (including any such reclassification in
connection with a consolidation or merger in which the Company is the
continuing corporation), then, in each case, the Exercise Price, and the number
of Warrant Shares issuable upon exercise of this Warrant, in effect at the time
of the record date for such dividend or of the effective date of such
subdivision, combination, or reclassification, shall be proportionately
adjusted so that the Holder after such time shall be entitled to receive the
aggregate number and kind of shares which, if such Warrant had been exercised
immediately prior to the record date therefor, he would have owned upon such
exercise and been entitled to receive by virtue of such dividend, subdivision, combination,
or reclassification. Such adjustment shall be made successively whenever any
event listed above shall occur.

 

(b)           No adjustment in the
Exercise Price shall be required if such adjustment is less than $.01; provided,
however, that any adjustments which by reason of this Section 5 are not
required to be made shall be carried forward and taken into account in any
subsequent adjustment.  All calculations
under this Section 5 shall be made to the nearest cent or to the nearest one-thousandth
of a share, as the case may be.

 

(c)           In any case in which
this Section 5 shall require that an adjustment in the Exercise Price be made
effective as of a record date for a specified event, the Company may elect to
defer, until the occurrence of such event, issuing to the Holder, if the Holder
exercised this Warrant after such record date, the shares of Common Stock, if
any, issuable upon such exercise over and above the shares of Common Stock, if
any, issuable upon such exercise on the basis of the Exercise Price in effect
prior to such adjustment; provided, however, that the Company
shall deliver to the Holder a due bill or

 

 

other appropriate instrument evidencing the Holder’s right to receive
such additional shares upon the occurrence of the event requiring such
adjustment

 

(d)           Whenever there shall be
an adjustment as provided in this Section 5, the Company shall promptly cause
written notice thereof to be sent by registered mail, postage prepaid, to the
Holder, at its address as it shall appear in the Warrant Register, which notice
shall be accompanied by an officer’s certificate setting forth the number of
Warrant Shares purchasable upon the exercise of this Warrant and the Exercise
Price after such adjustment and setting forth a brief statement of the facts requiring
such adjustment and the computation thereof, which officer’s certificate shall
be conclusive evidence of the correctness of any such adjustment absent
manifest error.

 

6.             (a)           In case of any
consolidation with or merger of the Company with or into another corporation
(other than a merger or consolidation in which the Company is the surviving or
continuing corporation), or in case of any sale, lease, or conveyance to
another corporation of the property and assets of any nature of the Company as
an entirety or substantially as an entirety, such successor, leasing, or
purchasing corporation, as the case may be, shall (i) execute with the Holder
an agreement providing that the Holder shall have the right thereafter to
receive upon exercise of this Warrant solely the kind and amount of shares of
stock and other securities, property, cash, or any combination thereof
receivable upon such consolidation, merger, sale, lease, or conveyance by a
holder of the number of shares of Common Stock for which this Warrant might
have been exercised immediately prior to such consolidation, merger, sale,
lease, or conveyance and (ii) make effective provision in its certificate of
incorporation or otherwise, if necessary, to effect such agreement. Such
agreement shall provide for adjustments which shall be as nearly equivalent as
practicable to the adjustments in Section 5.

 

(b)           In
case of any reclassification or change of the shares of Common Stock issuable
upon exercise of this Warrant (other than a change in par value or from no par
value to a specified par value, or as a result of a subdivision or combination,
but including any change in the shares into two or more classes or series of
shares), or in case of any consolidation or merger of another corporation into
the Company in which the Company is the continuing corporation and in which
there is a reclassification or change (including a change to the right to
receive cash or other property) of the shares of Common Stock (other than a
change in par value, or from no par value to a specified par value, or as a
result of a subdivision or combination, but including any change in the shares
into two or more classes or series of shares), the Holder shall have the right
thereafter to receive upon exercise of this Warrant solely the kind and amount
of shares of stock and other securities, property, cash, or any combination
thereof receivable upon such reclassification, change, consolidation, or merger
by a holder of the number of shares of Common Stock for which this Warrant
might have been exercised immediately prior to such reclassification, change,
consolidation, or merger. Thereafter, appropriate provision shall be made for
adjustments which shall be as nearly equivalent as practicable to the
adjustments in Section 5.

 

 

(c)           In the event
that the Company (i) issues as a dividend or other similar distribution (an
“Extraordinary Dividend”) on all of its then outstanding Common Stock, (A)
securities of the Company of a class other than Common Stock, (B) rights,
warrants or options (individually, a “Right” and collectively, the “Rights”) to
acquire any securities of the Company (including Common Stock) or (C) evidences
of its indebtedness or assets, or (ii) issues any dividend or other similar
distribution (a “Secondary Extraordinary Dividend”) on any such securities in
the form of securities of the Company (including Common Stock) (any securities
(other than Rights) issued as an Extraordinary Dividend or Secondary
Extraordinary Dividend or issued upon exercise of any Rights issued as an
Extraordinary Dividend or Secondary Extraordinary Dividend shall be referred to
as “Dividend Securities”):

 

(x)            this Warrant
shall thereafter be exercisable for (1) the original number of shares of Common
Stock (subject to adjustment as herein provided), (2) such Dividend Securities
and Rights as would theretofore have been issued in respect of such shares
(adjusted as herein provided) had such shares been outstanding at the time of
such Extraordinary Dividend, and (3) any Dividend Securities that would theretofore
have been issued as a Secondary Extraordinary Dividend in respect of such
Dividend Securities had such Dividend Securities been outstanding at the time
of such Secondary Extraordinary Dividend; and

 

(y)           any Right
issued as an Extraordinary Dividend or a Secondary Extraordinary Dividend shall
(1) expire upon the later of (a) the original expiration date of such Right or
(b) the 180th day following the exercise of this Warrant, and (2) be
exercisable for (a) the Dividend Securities issuable upon exercise of such
Right and (b) any property theretofore issued as a Secondary Extraordinary
Dividend in respect of such Dividend Securities.

 

(d)           In the event that at
any time while this Warrant is outstanding, the Company shall offer to sell to
all of the holders of Common Stock as a class, rights or options to purchase
Common Stock or rights or options to purchase any stock or securities
convertible into or exchangeable for Common Stock (such exchangeable or
convertible stock or securities being herein called “Convertible Securities”),
whether or not such rights or options are immediately exercisable, and the
price per share for which Common Stock is issuable upon the exercise of such
rights or options or upon conversion or exchange of such Convertible Securities
(determined by dividing (i) the total amount received or receivable by the
Company upon issuance and sale of such rights or options, plus the aggregate
amount of additional consideration payable to the Company upon the exercise of
all such rights or options, plus, in the case of rights or options which relate
to Convertible Securities, the aggregate amount of additional consideration, if
any, payable upon the conversion or exchange of all such Convertible
Securities, by (ii) the total maximum number of shares of Common Stock issuable
upon the exercise of all such rights or options or upon the conversion or
exchange of all such Convertible Securities issuable upon the exercise of all
such rights or options) shall be less than the Exercise Price in effect
immediately prior to the initial sale of any such rights or options, the
Company shall offer to sell to the Holder, at the price and upon the terms at
which such rights or options are offered to holders of its Common Stock, such
number of such rights

 

 

or options as the Holder would have been entitled to purchase had the
Holder exercised this Warrant immediately prior to the commencement of the
offering of such rights or options.

 

(e)           The above provisions of
this Section 6 shall similarly apply to successive reclassifications and
changes of shares of Common Stock and to successive consolidations, mergers,
sales, leases, or conveyances.

 

7.             In
case at any time the Company shall propose:

 

(a)           to
pay any dividend or make any distribution on shares of Common Stock in shares
of Common Stock or make any other distribution (other than regularly scheduled
cash dividends which are not in a greater amount per share than the most recent
such cash dividend) to all holders of Common Stock; or

 

(b)           to
issue any rights, warrants, or other securities to all holders of Common Stock
entitling them to purchase any additional shares of Common Stock or any other
rights, warrants, or other securities; or

 

(c)           to
effect any reclassification or change of outstanding shares of Common Stock, or
any consolidation, merger, sale, lease, or conveyance, described in Section 6;
or

 

(d)           to
effect any liquidation, dissolution, or winding-up of the Company; or

 

(e)           to
take any other action which would cause an adjustment to the Exercise Price;

 

then, and in any one or more of such cases, the Company shall give
written notice thereof, by registered mail, postage prepaid, to the Holder at
the Holder’s address as it shall appear in the Warrant Register, mailed at
least 30 days prior to (i) the date as of which the holders of record of shares
of Common Stock to be entitled to receive any such dividend, distribution,
rights, warrants, or other securities are to be determined, (ii) the date on
which any such reclassification, change of outstanding shares of Common Stock,
consolidation, merger, sale, lease, conveyance, liquidation, dissolution, or
winding-up is expected to become effective, and the date as of which it is
expected that holders of record of shares of Common Stock shall be entitled to
exchange their shares for securities or other property, if any, deliverable
upon such reclassification, change of outstanding shares, consolidation,
merger, sale, lease, conveyance of property, liquidation, dissolution, or
winding-up, or (iii) the date of such action which would require an adjustment
to the Exercise Price.

 

8.             The
issuance of any Warrant Shares or other securities upon the exercise of this
Warrant, and the delivery of certificates or other instruments representing
such shares or other securities, shall be made without charge to the Holder for
any tax or other charge in respect of such issuance. The Company shall not,
however, be required to pay

 

 

any tax which may be payable in respect of any transfer involved in the
issue and delivery of any certificate in a name other than that of the Holder
and the Company shall not be required to issue or deliver any such certificate
unless and until the person or persons requesting the issue thereof shall have
paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

 

9.             Certificates
evidencing the Warrant Shares issued upon exercise of the Warrant shall bear
the following legend:

 

“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         ,
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.”

 

10.           Upon
receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction, or mutilation of any Warrant (and upon surrender of any Warrant if
mutilated), and upon reimbursement of the Company’s reasonable incidental
expenses, the Company shall execute and deliver to the Holder thereof a new
Warrant of like date, tenor, and denomination.

 

11.           The
Holder of any Warrant shall not have, solely on account of such status, any
rights of a stockholder of the Company, either at law or in equity, or to any
notice of meetings of stockholders or of any other proceedings of the Company,
except as provided in this Warrant.

 

12.           Any
notice or other communication required or permitted to be given hereunder shall
be in writing and shall be mailed by certified mail, return receipt

 

 

requested or sent by Federal Express, Express Mail, or similar
overnight delivery or courier service or delivered (in person or by telecopy,
telex, or similar telecommunications equipment) against receipt to the party to
whom it is to be given, if sent to the Company, at: 650 Madison Avenue, New
York, NY 10022, Attention: Corporate Secretary; or if sent to the Holder, at
the Holder’s address as it shall appear on the Warrant Register; or to such
other address as the party shall have furnished in writing in accordance with
the provisions of this Section 12.  Any
notice or other communication given by certified mail shall be deemed given
five days after the time of certification thereof, except for a notice changing
a party’s address which will be deemed given at the time of receipt thereof.
Any notice given by other means permitted by this Section 12 shall be deemed
given at the time of receipt thereof.

 

13.           This
Warrant shall be binding upon the Company and its successors and assigns and
shall inure to the benefit of the Holder and its successors and assigns.

 

14.           This
Warrant shall be construed in accordance with the laws of the State of New York
applicable to contracts made and performed within such State, without regard to
principles of conflicts of law, except to the extent that the Colorado Business
Corporation Act may govern by virtue of the fact that the Company is
incorporated under the laws of the State of Colorado.

 

15.           The
Company irrevocably consents to the jurisdiction of the US District Courts for
the Southern District of New York and courts located in New York County in
connection with any action or proceeding arising out of or relating to this
Warrant, any document or instrument delivered pursuant to, in connection with
or simultaneously with this Warrant, or a breach of this Warrant or any such
document or instrument. In any such action or proceeding, the Company waives
personal service of any summons, complaint or other process.

 

16.           Put Option.

 

(a)           If a Cash Transaction occurs, the
Holder hereof shall have the option (the “Put Option”) to sell to the Company
all of the shares of Common Stock represented by this Warrant, for a purchase
price equal to the product of (i) the number of shares of Common Stock represented
by this Warrant multiplied by (ii) (a) the per share cash amount paid to each
holder of Common Stock in respect of such Cash Transaction minus (b) the
Exercise Price per Warrant Share.

 

For purposes
of this Section 16, a “Cash Transaction” means (i) a consolidation or merger to
which the Company is a party (other than a Primary Merger), (ii) any sale or
other conveyance of all or substantially all of the assets of the Company, or
(iii) any cash tender offer or similar transaction for all or part of the
Common Stock, and in each such case all of the consideration paid to the
holders of Common Stock in respect of such transaction is comprised of cash.

 

For purposes
of this Section 16, a “Primary Merger” is any consolidation or merger in which
the Company is the surviving corporation other than any such consolidation or
merger in which the persons who held Common Stock immediately prior to the
approval of such transaction by the Company’s shareholders do not continue to
hold a majority of such Common Stock after such transaction becomes effective.

 

(b)           The Company shall provide the Holder
hereof with notice of any Cash Transaction at the same time and in the same
manner that notice thereof is provided to holders of Common Stock; provided
that if the Company provides notice to the holders of Common Stock of such Cash
Transaction less than twenty (20) calendar days prior to the effective date
thereof, the Company shall be required to provide the Holder hereof with notice
of such Cash Transaction at least twenty (20) calendar days prior to the
effective date thereof.  If the Holder
hereof exercises the Put Option, it shall provide notice thereof to the Company
no less than ten (10) calendar days prior to the consummation of such Cash
Transaction.

 

(c)           Payment for the Put Option shall be
paid to the Holder hereof at the same time and in the same manner as the
holders of Common Stock receive their distributions of cash with respect to
such Cash Transaction.  In the event that
the amount of the cash payment to any holder of Common Stock in respect of any
Cash Transaction increases after the initial payment in respect thereof, the
Company shall pay the ratable amount of such increase attributable to this
Warrant to the Holder hereof. Any payment required pursuant to this Section 16
may, at the option of the Holder, be made by check payable to the order of the
Holder hereof duly mailed or delivered to its registered address or, if
requested by the Holder hereof, by wire transfer of federal or other
immediately available funds to its account at any bank or trust company in the
United States of America.

 

(d)           In the event that (i) any
consolidation or merger in respect of which the Put Option shall have been
exercised does not become effective, (ii) shares of securities into which this
Warrant is exercisable are not purchased pursuant to any tender offer in
respect of which the Put Option shall have been exercised, or (iii) any holder
of securities into which this Warrant is exercisable shall have the right to
withdraw securities deposited pursuant to any tender offer in respect of which
the Put Option shall have been exercised (any such event specified in clause
(i), (ii) or (iii) being hereinafter referred to as a “Withdrawal”), within
sixty (60) days after the occurrence of such Withdrawal, the Holder hereof
shall have the right to rescind the exercise of the Put Option.

 

	
  Dated: February         ,
  2005

  	
  SPORTS ENTERTAINMENT

  ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Thomas P. Benson

  
	
   

  	
   

  	
  Title: Chief Financial Officer,

  Executive Vice President

  

 

 

FORM OF ASSIGNMENT

 

(To be executed by the registered holder if such holder desires to
transfer the attached Warrant.)

 

FOR VALUE RECEIVED,                                                             
hereby sells, assigns, and transfers unto                                           
a Warrant to purchase shares of common stock, no par value, of Sports
Entertainment Enterprises, Inc., a Colorado corporation (the “Company”),
together with all right, title, and interest therein, and does hereby
irrevocably constitute and appoint                                       
attorney to transfer such Warrant on the books of the Company, with full power
of substitution.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  	
   

  

 

 

NOTICE

 

The signature on the foregoing Assignment must correspond to the name
as written upon the face of this Warrant in every particular, without
alteration or enlargement or any change whatsoever.

 

 

	
  To:

  	
  Sports Entertainment Enterprises, Inc.

  
	
   

  	
  650 Madison Avenue, New York, NY 10022

  
	
   

  	
  Attention: Corporate Secretary

  

 

 

ELECTION TO EXERCISE

 

The undersigned hereby exercises its rights to purchase                             
Warrant Shares covered by the within warrant and tenders payment herewith in
the amount of $                          
in accordance with the terms thereof, and requests that certificates for such
securities be issued in the name of, and delivered to:

 

	
   

  
	
   

  
	
   

  
	
  (Print Name, Address and Social Security

  
	
  or Tax Identification Number)

  

 

and, if such number of Warrant Shares shall not be all the Warrant
Shares covered by the within Warrant, that a new Warrant for the balance of the
Warrant Shares covered by the within Warrant be registered in the name of, and
delivered to, the undersigned at the address stated below.

 

 

	
  Dated:

  	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  (Print)

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
							

 

 

	
  To:

  	
  Sports Entertainment Enterprises, Inc.

  
	
   

  	
  650 Madison Avenue, New York, NY 10022

  
	
   

  	
  Attention: Corporate Secretary

  

 

NOTICE OF CASHLESS EXERCISE

 

(To be executed upon exercise of Warrant

pursuant to Section 1(b))

 

The undersigned hereby irrevocably elects to exchange its Warrant for                       
Warrant Shares pursuant to the cashless exercise provisions of the within
Warrant, as provided for in Section 1(b) of such Warrant, and requests that a certificate
or certificates for such Warrant Shares be issued in the name of and delivered
to:

 

	
   

  
	
   

  
	
   

  
	
  (Print Name, Address and Social Security

  
	
  or Tax Identification Number)

  

 

and, if such number of Warrant Shares shall not be all the Warrant
Shares which the undersigned is entitled to purchase in accordance with the
within Warrant, that a new Warrant for the balance of the Warrant Shares
covered by the within Warrant be registered in the name of, and delivered to,
the undersigned at the address stated below.

 

 

	
  Dated:

  	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  (Print)

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

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