Asset Purchase Agreement (2000)Full Document 

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                            ASSET PURCHASE AGREEMENT


                                   dated as of


                                  June 12, 2000


                                  by and among


                             STATION CASINOS, INC.,
                              a Nevada corporation
                                  ("PURCHASER")

                              SANTA FE HOTEL INC.,
                              a Nevada corporation
                                   ("SELLER")

                                       and


                          SANTA FE GAMING CORPORATION,
                              a Nevada corporation
                                   ("PARENT")

                                 with respect to
                                  the assets of


                               SANTA FE HOTEL INC.



                                TABLE OF CONTENTS

                  This Table of Contents is not part of the Agreement to which
it is attached but is inserted for convenience only.




                                                                                            Page
                                                                                            No .
                                                                                            ----

                                                                                          
ARTICLE I SALE OF ASSETS AND CLOSING..........................................................1
         1.01.    Assets......................................................................1
         1.02.    Liabilities.................................................................5
         1.03.    Net Current Assets; Purchase Price Adjustment...............................6
         1.04.    Purchase Price; Allocation..................................................9
         1.05.    Closing; Escrow.............................................................9
         1.06.    Intentionally Omitted......................................................10
         1.07.    Prorations.................................................................10
         1.08.    Further Assurances; Post-Closing Cooperation...............................11
         1.09.    Third-Party Consents.......................................................12
         1.10.    Insurance Proceeds.........................................................12
         1.11.    Redemption of Gaming Chips and Tokens......................................13
         1.12.    Collection of Accounts Receivable..........................................13

ARTICLE II REPRESENTATIONS AND WARRANTIES OF PARENT AND SELLER...............................13
         2.01.    Organization of Seller and Parent..........................................13
         2.02.    Authority..................................................................13
         2.03.    No Conflicts...............................................................14
         2.04.    Governmental Approvals and Filings.........................................14
         2.05.    Books and Records..........................................................15
         2.06.    Financial Statements.......................................................15
         2.07.    Absence of Changes.........................................................15
         2.08.    No Undisclosed Liabilities.................................................17
         2.09.    Taxes......................................................................17
         2.10.    Legal Proceedings..........................................................17
         2.11.    Compliance With Laws and Orders............................................18
         2.12.    Benefit Plans; ERISA.......................................................18
         2.13.    Real Property..............................................................19
         2.14.    Tangible Personal Property.................................................21
         2.15.    Intellectual Property Rights...............................................21
         2.16.    Contracts..................................................................22
         2.17.    Licenses...................................................................23
         2.18.    Insurance..................................................................24
         2.19.    Affiliate Transactions.....................................................24
         2.20.    Employees; Labor Relations.................................................24
         2.21.    Environmental Matters......................................................25
         2.22.    Inventory..................................................................26


                                        i


         2.23.    Vehicles...................................................................26
         2.24.    No Guarantees..............................................................26
         2.25.    Entire Business............................................................26
         2.26.    Solvency; Sufficient Capital...............................................27
         2.27.    Brokers....................................................................27

ARTICLE III REPRESENTATIONS AND WARRANTIES OF PURCHASER......................................27
         3.01.    Organization...............................................................27
         3.02.    Authority..................................................................28
         3.03.    No Conflicts...............................................................28
         3.04.    Governmental Approvals and Filings.........................................28
         3.05.    Legal Proceedings..........................................................28
         3.06.    Brokers....................................................................28

ARTICLE IV COVENANTS OF PARENT AND SELLER....................................................29
         4.01.    Regulatory and Other Approvals.............................................29
         4.02.    HSR Filings................................................................29
         4.03.    Investigation by Purchaser.................................................29
         4.04.    No Solicitations...........................................................30
         4.05.    Conduct of Business........................................................30
         4.06.    Financial Statements and Reports; Filings..................................30
         4.07.    Employee Matters...........................................................31
         4.08.    Certain Restrictions.......................................................31
         4.09.    Delivery of Books and Records, etc.; Removal of Property...................32
         4.10.    Noncompetition.............................................................32
         4.11.    Notice and Cure............................................................34
         4.12.    Fulfillment of Conditions..................................................34
         4.13.    Baggage....................................................................34
         4.14.    Safe Deposits..............................................................34
         4.15.    Valet Parking..............................................................35
         4.16.    Estoppel Certificates......................................................35
         4.17.    Computer Equipment.........................................................35

ARTICLE V COVENANTS OF PURCHASER.............................................................35
         5.01.    Regulatory and Other Approvals.............................................35
         5.02.    HSR Filings................................................................36
         5.03.    Notice and Cure............................................................36
         5.04.    Fulfillment of Conditions..................................................36

ARTICLE VI CONDITIONS TO OBLIGATIONS OF PURCHASER............................................36
         6.01.    Representations and Warranties.............................................36
         6.02.    Performance................................................................37
         6.03.    Officers' Certificates.....................................................37
         6.04.    Orders and Laws............................................................37
         6.05.    Regulatory Consents and Approvals..........................................37
         6.06.    Third Party Consents.......................................................38
         6.07.    Opinion of Counsel.........................................................38


                                       ii


         6.08.    Personal Property Leases...................................................38
         6.09.    Deliveries.................................................................38
         6.10.    Absence of Changes.........................................................38
         6.11.    Proceedings................................................................39

ARTICLE VII CONDITIONS TO OBLIGATIONS OF SELLER..............................................39
         7.01.    Representations and Warranties.............................................39
         7.02.    Performance................................................................39
         7.03.    Officers' Certificates.....................................................39
         7.04.    Orders and Laws............................................................39
         7.05.    Regulatory Consents and Approvals..........................................39
         7.06.    Third Party Consents.......................................................40
         7.07.    Deliveries.................................................................40
         7.08.    Proceedings................................................................40

ARTICLE VIII TAX MATTERS AND POST-CLOSING TAXES..............................................40
         8.01.    Taxes......................................................................40
         8.02.    Intentionally Omitted......................................................40
         8.03.    Pre-Closing Taxes..........................................................40
         8.04.    Tax Indemnification........................................................40
         8.05.    Tax Cooperation............................................................41
         8.06.    Notification of Proceedings; Control.......................................41

ARTICLE IX TITLE INSURANCE...................................................................41
         9.01.    Title Policies and Exceptions..............................................41

ARTICLE X SURVIVAL OF REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS..................43
         10.01.     Survival of Representations, Warranties, Covenants and Agreements........43

ARTICLE XI INDEMNIFICATION...................................................................43
         11.01.     Indemnification..........................................................43
         11.02.     Method of Asserting Claims...............................................44

ARTICLE XII TERMINATION......................................................................47
         12.01.     Termination..............................................................47
         12.02.     Effect of Termination....................................................48

ARTICLE XIII DEFINITIONS.....................................................................49
         13.01.     Definitions..............................................................49

ARTICLE XIV MISCELLANEOUS....................................................................59
         14.01.     Notices..................................................................59
         14.02.     Bulk Sales Act...........................................................60
         14.03.     Entire Agreement.........................................................60
         14.04.     Expenses.................................................................60
         14.05.     Public Announcements.....................................................60
         14.06.     Confidentiality..........................................................60


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         14.07.     Waiver; Remedies; Attorneys Fees.........................................61
         14.08.     Amendment................................................................61
         14.09.     No Third Party Beneficiary...............................................62
         14.10.     No Assignment; Binding Effect............................................62
         14.11.     Headings.................................................................62
         14.12.     Consent to Jurisdiction; Venue...........................................62
         14.13.     Invalid Provisions.......................................................62
         14.14.     Governing Law............................................................62
         14.15.     Counterparts.............................................................63





                                             EXHIBITS
                                             --------
                                         
                  Exhibit A                 General Assignment and Bill of Sale
                  Exhibit B                 Assumption Agreement
                  Exhibit C                 Officer's Certificate of Seller
                  Exhibit D                 Secretary's Certificate of Seller
                  Exhibit E                 Officer's Certificate of Parent
                  Exhibit F                 Secretary's Certificate of Parent
                  Exhibit G                 Officer's Certificate of Purchaser
                  Exhibit H                 Secretary's Certificate of Purchaser
                  Exhibit I                 [Intentionally Omitted]
                  Exhibit J                 [Intentionally Omitted]
                  Exhibit K                 Affidavit of Nonforeign Status
                  Exhibit L                 Option Agreement
                  Exhibit M                 Title Report
                  Exhibit N                 Shareholders Agreement
                  Exhibit O                 Escrow Agreement





                                                      SCHEDULES
                                                      ---------
                                                  
                  Schedule 1.01(a)(i)                Real Property
                  Schedule 1.01(a)(ii)(A)            Real Property Leases (Lessor/Sublessor)
                  Schedule 1.01(a)(ii)(B)            Real Property Leases (Lessee/Sublessee)
                  Schedule 1.01(a)(iii)              Tangible Personal Property
                  Schedule 1.01(a)(iv)               Business Contracts
                  Schedule 1.01(a)(v)                Intangible Personal Property
                  Schedule 1.01(a)(vi)               Business Licenses
                  Schedule 1.01(a)(vii)              Vehicles
                  Schedule 1.01(b)(xii)              Personal Effects
                  Schedule 1.01(b)(xiii)             Certain Gaming Devices
                  Schedule 1.01(b)(xiv)              Certain Computer Equipment
                  Schedule 1.01(b)(xv)               Utility Deposits
                  Schedule 1.02(b)                   Retained Liabilities
                  Schedule 1.03(a)(ii)(A)            Prepaid Expenses
                  Schedule 1.03(a)(ii)(B)            Excluded Prepaid Expenses
                  Schedule 1.03(b)(iii)              Security Deposits


                                       iv


                  Schedule 2.03                      Consents (Seller)
                  Schedule 2.04                      Governmental Approvals and Filings (Seller)
                  Schedule 2.05                      Books and Records
                  Schedule 2.06                      Financial Statements
                  Schedule 2.07                      Changes in Condition
                  Schedule 2.08                      Undisclosed Liabilities
                  Schedule 2.09(a)                   Tax Return Filings
                  Schedule 2.09(b)                   Tax Liens
                  Schedule 2.09(c)                   Withholding Taxes
                  Schedule 2.09(d)                   Changes in Accounting
                  Schedule 2.10(a)                   Legal Proceedings
                  Schedule 2.10(b)                   Expected Legal Proceedings
                  Schedule 2.10(c)                   Orders
                  Schedule 2.11                      Noncompliance With Laws and Orders
                  Schedule 2.12(a)                   Employee Benefit Plans
                  Schedule 2.13(b)                   Title to Real Property
                  Schedule 2.13(c)                   Lease Defaults
                  Schedule 2.13(e)                   Tenant Rights
                  Schedule 2.13(f)                   Condition of Improvements
                  Schedule 2.13(g)                   Violations of Law
                  Schedule 2.13(h)                   Improvement Contracts
                  Schedule 2.13(m)                   Insurance Claims
                  Schedule 2.14                      Tangible Personal Property Liens
                  Schedule 2.15                      Intellectual Property Rights
                  Schedule 2.16(a)                   Contracts
                  Schedule 2.16(b)                   Breaches of Contracts
                  Schedule 2.16(c)                   Contract Termination Rights
                  Schedule 2.17                      Licenses
                  Schedule 2.18                      Insurance
                  Schedule 2.19                      Affiliate Transactions
                  Schedule 2.20                      Employee Matters
                  Schedule 2.21                      Environmental Matters
                  Schedule 2.23                      Vehicles
                  Schedule 3.03                      Conflicts
                  Schedule 3.04                      Governmental Approvals and Filings (Purchaser)
                  Schedule 6.06                      Third Party Consents (Purchaser Condition)
                  Schedule 6.08(i)                   Personal Property Leases (to be paid off by Seller)
                  Schedule 6.08(ii)                  Personal Property Leases (assigned to Purchaser)
                  Schedule 7.06                      Third Party Consents (Seller Condition)



                                        v


                            ASSET PURCHASE AGREEMENT


                  This ASSET PURCHASE AGREEMENT dated as of June 12, 2000 is
made and entered into by and among STATION CASINOS, INC., a Nevada corporation
("PURCHASER"), SANTA FE HOTEL INC., a Nevada corporation ("SELLER"), and SANTA
FE GAMING CORPORATION, a Nevada corporation ("PARENT"). Capitalized terms not
otherwise defined herein have the meanings set forth in SECTION 13.01.

                  WHEREAS, Seller is engaged in the business of owning and
operating the Santa Fe Hotel & Casino, located at 4949 North Rancho Drive, Las
Vegas, Nevada, as well as various other related assets (collectively, the
"BUSINESS"); and

                  WHEREAS, Seller is a wholly-owned subsidiary of Parent; and

                  WHEREAS, Seller desires to sell, transfer and assign to
Purchaser, and Purchaser desires to purchase and acquire from Seller, certain of
the assets of Seller relating to the operation of the Business, and in
connection therewith, Purchaser has agreed to assume certain of the liabilities
of Seller relating to the Business, all on the terms set forth herein;

                  NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:


                                    ARTICLE I

                           SALE OF ASSETS AND CLOSING


                  1.01.    ASSETS.

                  (a)      ASSETS TRANSFERRED. On the terms and subject to the
conditions set forth in this Agreement, Seller will, and Parent will cause
Seller to, sell, transfer, convey, assign and deliver to Purchaser, and
Purchaser will purchase and pay for, at the Closing, all of Seller's right,
title and interest in, to and under all of the Assets and Properties of Seller
used or held for use in connection with the Business, free and clear of all
Liens and encumbrances, except as otherwise provided in SECTION 1.01(b), as the
same shall exist on the Closing Date (collectively with any proceeds and awards
referred to in SECTION 1.10, the "ASSETS"), including, without limitation, the
following:

                           (i)      REAL PROPERTY. The real property described
         in SECTION 1.01(a)(i) OF THE DISCLOSURE SCHEDULE, and all of the rights
         arising out of the ownership thereof or appurtenant thereto (including,
         without limitation, any and all easements relating thereto) (the "REAL
         PROPERTY"), together with all buildings, structures, facilities,
         fixtures and other improvements thereto (the "IMPROVEMENTS");



                           (ii)     REAL PROPERTY LEASES. Subject to SECTION
         1.09, (A) the leases and subleases of real property described in
         SECTION 1.01(a)(ii)(A) OF THE DISCLOSURE SCHEDULE as to which Seller is
         the lessor or sublessor and (B) the leases and subleases of real
         property described in SECTION 1.01(a)(ii)(B) OF THE DISCLOSURE SCHEDULE
         as to which Seller is the lessee or sublessee, together with any
         options to purchase the underlying property and leasehold improvements
         thereon, and in each case all other rights, subleases, licenses,
         permits, deposits and profits appurtenant to or related to such leases
         and subleases (the leases and subleases described in subclauses (A) and
         (B), the "REAL PROPERTY LEASES");

                           (iii)    TANGIBLE PERSONAL PROPERTY. All furniture,
         fixtures, equipment, supplies, parts, machinery and other tangible
         personal property (including, without limitation, any and all tangible
         "gaming devices" (as defined in NRS 463.0155), gaming device parts
         inventory and other related gaming equipment and supplies used in
         connection with the operation of the casino, including, without
         limitation, slot machines, gaming tables, cards, dice (but excluding
         gaming chips and tokens) and tangible "associated equipment" (as
         defined in NRS 463.0136))(other than Inventory and Vehicles) used or
         held for use in the conduct of the Business at the locations at which
         the Business is conducted, or otherwise used or held for use by Seller
         in the conduct of the Business (including, without limitation, the
         items listed in SECTION 1.01(a)(iii) OF THE DISCLOSURE SCHEDULE),
         including any of the foregoing purchased subject to any conditional
         sales or title retention agreement in favor of any other Person (the
         "TANGIBLE PERSONAL PROPERTY");

                           (iv)     BUSINESS CONTRACTS. Subject to SECTION 1.09,
         all Contracts (other than the Real Property Leases, the Personal
         Property Leases) listed in SECTION 1.01(a)(iv) OF THE DISCLOSURE
         SCHEDULE to which Seller is a party and which are utilized in the
         conduct of the Business, including, without limitation, Contracts
         relating to suppliers and purchase orders and marketing arrangements,
         but excluding any and all collective bargaining agreements, contracts
         for employment and independent contractor agreements (the "BUSINESS
         CONTRACTS");

                           (v)      INTANGIBLE PERSONAL PROPERTY. All
         Intellectual Property used or held for use and necessary to conduct the
         Business as it is presently conducted (including, without limitation,
         intangible "gaming devices" (as defined in NRS 463.0155), player
         tracking systems, "cashless wagering systems" (as defined in NRS
         463.014) and intangible "associated equipment" (as defined in NRS
         463.0136)), and all goodwill associated therewith, and all rights,
         privileges, claims, causes of action and options relating or pertaining
         to the Intellectual Property, the Business or the Assets, including,
         without limitation, the name "Santa Fe Hotel & Casino" and any
         derivative names and related marks (provided that Seller and Parent
         shall have the right, but not the obligation, to continue to utilize
         their respective corporate names for a period of nine (9) months so
         long as such names or any derivation thereof are not used by Seller or
         Parent directly in the operation of any hotel/resort or gaming
         business), designs, and logos, together with all of Seller's right,
         title and interest in, to and under the items listed in SECTION
         1.01(a)(v) OF THE DISCLOSURE SCHEDULE (the "INTANGIBLE PERSONAL
         PROPERTY");


                                        2


                           (vi)     LICENSES. To the extent their transfer to
         Purchaser is permitted under applicable Laws, and subject to SECTION
         1.09, all Licenses (including applications therefor) utilized in and
         necessary to conduct and promote the Business as it is presently
         conducted, including, without limitation, the Licenses listed in
         SECTION 1.01(a)(vi) OF THE DISCLOSURE SCHEDULE (the "BUSINESS
         Licenses");

                           (vii)    VEHICLES. Subject to SECTION 1.01(b)(xii)
         and, if applicable, SECTION 1.09, all motor vehicles owned or leased by
         Seller and used or held for use in the conduct of the Business,
         including but not limited to the vehicles listed in SECTION
         1.01(a)(vii) OF THE DISCLOSURE SCHEDULE (the "VEHICLES");

                           (viii)   ADVANCE RESERVATIONS AND DEPOSITS. All
         advance reservations, bookings and room deposits applicable to any
         period following the Closing, and originals of casino credit files with
         respect to the casino operations, and any telephone numbers used
         exclusively in connection with the Business (the "ADVANCE RESERVATIONS
         AND DEPOSITS");

                           (ix)     CUSTOMER LISTS. All customer lists and
         databases relating to the Business (the "CUSTOMER LISTS");

                           (x)      BOOKS AND RECORDS. All Books and Records

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