STOCK PURCHASE AGREEMENT

EXHIBIT 10.2

STOCK PURCHASE AGREEMENT

This Stock Purchase Agreement (this “Agreement”) is entered into as of June 25, 2008, by and between H. Xxxxxx XxXxxxx a.k.a. Xxxxxxxxx XxXxxxx (“XxXxxxx”) and Kings Road Entertainment, Inc. (“XXXX”) and is executed pursuant to and in conjunction with that certain Settlement Agreement and Mutual General Release (the “Settlement Agreement”) executed concurrently herewith by and among XXXX, XxXxxxx and the other parties named therein.

RECITALS

A. Whereas, XxXxxxx owns 500,000 shares of the common stock of XXXX, as represented by XXXX certificates no. 3509 and 3583 representing 100,000 and 400,000 shares respectively.

B. Whereas, pursuant to and in conjunction with the terms of the Settlement Agreement, XxXxxxx, agrees to sell and XXXX agrees to buy a total of five hundred thousand (500,000) shares of common stock of XXXX (the “Shares”) owned by XxXxxxx, as provided in this Agreement.

C. Whereas, XXXX and in order to facilitate the Settlement between XXXX and XxXxxxx, as contemplated by the Settlement Agreement, for the benefit of all shareholders of XXXX, has agreement to purchase the 500,000 shares of the common stock of XXXX owned by XxXxxxx.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties to this Agreement hereby agree as follows:

AGREEMENT

1. Stock Purchase.

(a) Purchase Price. Contemporaneously with the execution of this Agreement, XxXxxxx shall convey, transfer and sell to XXXX, and XXXX shall purchase from XxXxxxx five hundred thousand (500,000) shares of common stock of XXXX, for consideration of twelve cents ($0.12) per share for a total purchase price of sixty thousand dollars ($60,000.00) (the “Purchase Price”). Payment of the Purchase Price shall be made in the form of cash, check or wire transfer of immediately available funds or any combination thereof.

Deliveries by XxXxxxx. Contemporaneous with the execution of this Agreement, XxXxxxx shall deliver to Chachas Law Group P.C., Attention Xxxxxx X. Xxxxxxx, 0000 Xxxxx Xxxxxx, Xxxxx 000, Xxx Xxxxx, XX 00000, for processing with Computershare Trust Company (the “Transfer Agent”), original certificates representing 500,000 shares of common stock in XXXX, as represented by XXXX certificates no. 3509 and 3583 representing 100,000 and 400,000 shares respectively, along with Irrevocable Stock Powers with signature medallion guaranteed, such other certifications or documentation as required by the Transfer Agent, and an instruction letter to the Transfer Agent authorizing the Transfer Agent to effectuate the transfer and delivery of the 500,000 shares, to XXXX.

(b) Deliveries by XXXX. Contemporaneous with execution of this agreement, XXXX shall deliver $60,000.00 in immediately available funds to Chachas Law Group Attorney-Client Trust account. Wire instructions are as follows:

Bank Name:	US Bank
Address	0000 Xx Xxxxx Xxxxxxx Xxxxx, Xxxxx 000 Xxx Xxxxx, XX 00000
ABA Routing No.:	000000000
Account No.	1534-00000000
Acct Name:	Chachas Law Group - Attorney Client Trust Account
Reference	XXXX/ XxXxxxx

(c) Conditions to Closing; Deliveries on Closing. As a condition to the closing, the Settlement Agreement and all other documents, agreements and instruments to be executed pursuant to this Agreement shall have been executed and delivered. At such time as Chachas Law Group has received written confirmation from the Transfer Agent that the Transfer Agent has processed and completed the transfer and delivery of 500,000 shares to XXXX, the Xxxxxxx Law Group shall deliver the $60,000.00 in immediately available funds via wire transfer to an account designated by XxXxxxx.

(d) The closing of the transactions contemplated by this Agreement (the “Closing”) on July 15, 2008 (or at such later date) and at such time as shall be agreed upon by the parties (the “Closing Date”). All proceedings to be taken and all documents to be executed and delivered by the parties at the Closing shall be deemed to have been taken and executed simultaneously and no proceeding shall be deemed taken or any documents executed or delivered until all have been taken and delivered.

2. XxXxxxx’x Representations, Warranties, Covenants and Acknowledgements.

(a) XxXxxxx represents, warrants and acknowledges that as a prior officer and director of XXXX, XxXxxxx is aware that XXXX has been engaged in conversations with various companies and potential acquirers, potential sale or remake of films and its film library.

(b) XxXxxxx acknowledges that consideration to XXXX shareholders in any such acquisition or sale of XXXX may be in the form or combination of cash or securities of the acquiring company.

(c) XxXxxxx further acknowledges that the sale price for the 500,000 shares of common stock of XXXX to XXXX has been determined based on negotiations and the terms of this settlement and not on actual market value of the shares.

(d) XxXxxxx acknowledges that XxXxxxx is not relying upon any person, firm or corporation, in making his decision to sell the 500,000 shares to XXXX.

(e) XxXxxxx further acknowledges and represents that he understands that the shares of common stock of XXXX could appreciate in value considerably in the near term or otherwise in the future and notwithstanding such possibility the XxXxxxx desires to enter into this Stock Purchase Agreement for the sale of the 500,000 shares of common stock of XXXX to XXXX.

(f) XxXxxxx represents and warrants that the Shares to be conveyed, transferred and sold hereunder shall be transferred to XXXX free and clear of all liens, claims, security interests and encumbrances of any nature whatsoever.

(g) XxXxxxx represents and warrants that other than the 500,000 shares of common stock of XXXX held of record by XxXxxxx, as set forth in Recital A above, XxXxxxx does not own, directly or indirectly, of record or beneficially, any other shares of common stock of XXXX.

(h) XxXxxxx represents and warrants that he has the capacity to enter into this Agreement to consummate the sale of the Shares and to comply with the terms, conditions and provisions of this Agreement.

(i) XxXxxxx represents and warrants this Agreement constitutes the valid and binding obligations of XxXxxxx, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws and equitable principles related to or limiting creditors’ rights generally and by the availability of equitable remedies and defenses.

(j) Neither the execution of this Agreement by XxXxxxx or the consummation of the sale of the Shares (a) will result in the breach of any term or provision of, constitute a default under, or accelerate or change the performance otherwise required under, any agreement (including any loan agreement or promissory note), indenture, instrument, order, law or regulation to which XxXxxxx is a party or by which XxXxxxx is bound or (b) require the approval, consent, waiver, authorization or act of, or the making by XxXxxxx of, any declaration, filing or registration with, any third party or any governmental authority.

(k) XxXxxxx is not a party to any stockholder agreement, voting trust agreement or any other similar contract, agreement, arrangement, commitment, plan or understanding restricting or otherwise relating to the voting, dividend, ownership or transfer of the 500,000 shares being sold and transferred to XXXX’x under this Agreement.

(l) XxXxxxx agrees that no XXXX, or any officer, director, shareholder, agent, or employee of XXXX, shall be liable to XxXxxxx for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the sale of the Shares by XxXxxxx, other than for payment of Shares as stated in Section 1(c) above.

(m) XxXxxxx acknowledges that he is freely and voluntarily entering into and executing this Agreement after having been advised to seek separate independent counsel of XxXxxxx’x choice for advice regarding this Agreement and any other legal rights pertaining to this Agreement. XxXxxxx has either been apprised of all relevant information and legal rights by legal counsel of his own choice, or has voluntarily chosen not to seek separate independent counsel for advice regarding this Agreement. In executing this Agreement, other than the representations and undertakings set forth in the Settlement Agreement, XxXxxxx does not rely on any inducements, promises, or representations made by KREN, KREN, any officer, director, shareholder, agent, attorney or representative of XXXX or any other party or person.

3. XXXX’ Representations, Warranties and Acknowledgements.

(a) XXXX represents and warrants that he or it has the capacity to enter into this Agreement to consummate the purchase of the Shares and to comply with the terms, conditions and provisions of this Agreement.

(b) The execution, delivery and performance of this Agreement and all other agreements, documents and instruments contemplated by this Agreement to which a XXXX is a party and the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary action of such entity.

(c) XXXX represents and warrants that this Agreement constitutes a valid and binding obligation of XXXX, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws and equitable principles related to or limiting creditors’ rights generally and by the availability of equitable remedies and defenses.

(d) XXXX represents, warrants and acknowledges that the Shares are not registered under the Securities Act of 1933, as amended (the “1933 Act”), on the basis that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from registration under the 1933 Act pursuant to Section 4(1).

(e) XXXX represents, warrants and acknowledges that he is aware that there is a very limited trading market in XXXX shares and that XXXX may not be able to resell his shares and that the Shares may be held indefinitely.

(f) XXXX represents and warrants to the Company that he/it is an “accredited investor” within the meaning of Securities and Exchange Commission Rule 501 of Regulation D, as presently in effect and, for the purpose of Section 25102(f) of the California Corporations Code.

(g) XXXX represents, warrants and acknowledges that they are aware of the financial condition of XXXX, XXXX’x operations, as well as the risk associated with the purchase and ownership of the Shares and that they are not relying upon XxXxxxx or any person, firm or corporation, in making a decision to purchase the Shares from XxXxxxx.

4. Notices. All notices, requests, demands and other communications under this Agreement, including any request or demand for indemnification under paragraph 5, shall be in writing and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given or within five (5) business days if mailed to the party to whom notice is to be given, by first-class mail, registered, or certified, postage prepaid and properly addressed as follows:

If to XxXxxxx, addressed to:

H. Xxxxxx XxXxxxx
000 X. Xxxxxxxx Xxxxxx #000
Xxxxxxxx, XX 00000

If to XXXX, addressed to:

Kings Road Entertainment, Inc.
Attn: Xxxxxx Xxxxxx, President
000 X. Xxxxxx Xxxxx
Xxxxxxx Xxxxx, XX 00000

5. Successors. This Agreement shall be binding upon and inure to the benefit of any successor or successors of XxXxxxx, any XXXX or XXXX. Where the context permits, “XXXX” as used in this Agreement shall include XXXX’x executor, administrator or other legal representative or the person or persons to whom XXXX’x rights pass by will or the applicable laws of descent and distribution.

6. Governing Law. This Agreement is being executed and delivered, and is intended to be performed, in the State of California, and to the extent permitted by law, the execution, validity, construction, and performance of this Agreement shall be construed and enforced in accordance with the laws of California. This Agreement shall be deemed made and entered into in Xxx Xxxxxxx Xxxxxx, Xxxxx xx Xxxxxxxxxx, Xxxxxx Xxxxxx of America.

7. Counterparts; Facsimile Signatures. This Settlement Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same agreement. Facsimile signatures shall be sufficient for execution of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Stock Purchase Agreement the day and year first above written.

SELLER

/s/ H. Xxxxxx XxXxxxx

H. Xxxxxx XxXxxxx, individually

(aka Xxxxxxxxx XxXxxxx)

KINGS ROAD ENTERTAINMENT, INC.

/s/ Xxxxxx Xxxxxx

By: Xxxxxx Xxxxxx

Its: President