Document:

Exhibit 10.7

 
Exhibit 10.7

 
PROMISSORY NOTE 
 
January 30, 2002 
$750,000.00 
 
FOR VALUE RECEIVED, SCOTT R. ROYSTER, an individual residing at 15 19 Kingman Place, NW, Washington, DC 20005, (the
“Executive”) hereby unconditionally promises to pay to the order of RADIO ONE, INC., a Delaware corporation (“Radio One”) the aggregate principal sum of Seven Hundred and Fifty Thousand Dollars ($750,000.00) (the
“Principal Amount”) in accordance with the terms and conditions of this Promissory Note (this “Note”) set forth below. This Note evidences a loan made by Radio One to the Executive pursuant to the Amended and
Restated Employment Agreement between Radio One and the Executive, dated as of October 18, 2000 (the “Employment Agreement”) and is a full recourse obligation of the Executive. Capitalized terms contained herein but not defined
herein have the meanings ascribed to them in the Employment Agreement. 
 
1. Interest. No interest shall accrue on the Principal Amount of this Note. 
 
2. Maturity. This Note shall be due and payable in full on the earlier of (a) January 1, 2005, and (b) the sixtieth
(60th) calendar day following the effective date of the termination of the Executive’s employment with the
Company. 
 
3. Payment.
Except as provided below, any payments made hereunder shall be made by wire transfer or certified check in lawful money of the United States of America and shall be made to Radio One, Inc., at 5900 Princess Garden Parkway, 8th Floor, Lanham, MD 20706 or such other address as Radio One may designate in writing. The Executive may satisfy all or a
portion of his obligations hereunder by transferring to the Company, free and clear of any lien, security interest, claim or other encumbrance (other than those arising under the Employment Agreement), shares of Purchased Common Stock. For purposes
of determining the amount of the Executive’s obligations hereunder thus satisfied, shares of Purchased Common Stock that have not vested pursuant to Section 5.12(d) of the Employment Agreement shall be deemed to have a value equal to $7.00 per
share, and shares of Purchased Common Stock that have vested pursuant to Section 5.12(d) of the Employment Agreement shall be deemed to have a per share value equal to their Fair Market Value. For purposes hereof, the term “Fair Market
Value” per share, on any given date, means the average for the preceding ten (10) trading days of the closing prices of the sales of the relevant class of Purchased Common Stock on all securities exchanges on which such stock may at the
time be listed, or, if there have been no sales on any such exchange on any day, the average of the highest bid and lowest asked prices on all such exchanges at the end of such day, or, if on any day such stock is not so listed, the average of the
representative bid and asked prices quoted on the Nasdaq Stock Market as of 4:00 P.M., New York time, or, if on any day such stock is not quoted on the Nasdaq Stock Market, the average of the highest bid and lowest asked prices on such day in the
domestic over-the-counter market as reported by the National Quotation Bureau, Incorporated, or any similar successor organization. If at any time the relevant class of Purchased Common Stock is not listed or quoted, the Fair Market Value per share
shall be determined by the Board or a committee of the Board based on such factors as the members thereof in the exercise of their business 
 

1 

 
judgment
reasonably consider relevant. After all obligations arising under this Note have been satisfied in full, this Note will be surrendered to the Executive for cancellation. 
 
4. Costs of Enforcement and Collection. The Executive agrees to pay any and all costs
or expenses, including without limitation reasonable attorneys fees, incurred or arising in connection with the enforcement by Radio One of its rights under this Note. The Executive agrees that all such costs and expenses may be added to and become
part of the Principal Amount and will become a full recourse obligation of the Executive. 
 
5. Waiver of Presentment. The Executive hereby waives presentment for payment, protest, demand, notice of protest,
notice of nonpayment and diligence with respect to this Note, and expressly agrees that this Note, or any payment hereunder, may be extended from time to time and that Radio One may accept security for this Note or release security for this Note,
all without in any way affecting the liability of the Executive hereunder. 
 
6. Modification. Except as may otherwise be expressly provided herein, the provisions of this Note may be amended and the Executive may take any action herein prohibited, or omit to perform any
act herein required to be performed by the Executive, but only if the Executive has obtained the written consent of Radio One. 
 
7. Severability. If any provision of this Note shall be held to be invalid or unenforceable under any applicable
law, then such provision shall be deemed inoperative to the extent that it conflicts with such law. Such provision shall not affect the validity or enforceability of any other provision hereof, and to this extent the provisions hereof shall be
severable. 
 
8. Choice of
Law. This Note and the rights and obligations hereunder shall be construed under and governed by the internal laws of the state of Maryland, without regard to conflicts of laws principles. 
 
9. Entire Agreement. This Note and the
Employment Agreement represent the final and complete agreement between the parties as to the loan represented hereby and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties. 
 
10. Right of Offset. The Executive
agrees, and by its acceptance here of Radio One acknowledges and agrees for itself and any assignee hereof, that concurrently with the execution and delivery of this Note Executive and Radio One are entering into the Employment Agreement which
provides, among other things, for the payment of various amounts to Executive. At the sole option of Executive, any amounts due hereunder shall be offset against any amount owing but not paid under or with respect to the Employment Agreement.
Without limiting the generality of the foregoing, if at the time this Note becomes due and payable the conditions set forth in the Employment Agreement with respect to the earning or vesting all or part of the Initial Term Retention Bonus have been
satisfied, at the sole option of Executive, the payment of this Note shall be offset against such Initial Term Retention Bonus. 
 

2 

 
IN WITNESS
WHEREOF, the undersigned has executed and delivered this Promissory Note as of the date first above written. 
 

	 EXECUTIVE

	
	 	 	 /s/ Scott R. Royster

	

	 Scott R. Royster

	 	 	 
	 Address:

	 	 	 
	 	 	 
	

	

	

	

 

3EXHIBIT 10.21

                         WAIVER OF EVENT OF DEFAULT AND
               AGREEMENT REGARDING THE DEMAND AND PAYMENT OF FEES

         This Waiver of Event of Default and Agreement Regarding Payment of and
Demand of Fees (this "Agreement") is made by NPO Management LLC ("NPO"), as
follows:

         1. Reference is made to that certain Asset Servicing Agreement dated as
of March 27, 1996 (the "Servicing Agreement") by and among DVL, Inc. ("DVL"),
Professional Service Corporation ("PSC"), KM Realty Corporation ("KMR") and NPO.
DVL, PSC and KMR are sometimes collectively referred to herein as the
"Companies". Capitalized terms which are not otherwise defined herein shall have
the meanings assigned to them in the Servicing Agreement.

         2. Section 9 of the Servicing Agreement imposes limitations on the
amount of Servicing Fees (excluding any accrued and unpaid interest thereon)
which may be deferred by DVL (the "Limitations"). NPO acknowledges that the
amount of deferred Servicing Fees has exceeded the operative Limitation since
mid-1997. Furthermore, DVL has advised NPO that, the amount of deferred
Servicing Fees may continue, through December 31, 2001, to exceed the
Limitations which are currently operative, or which are scheduled to become
operative. The deferral of Servicing Fees in excess of the Limitations
constitutes an Event of Default under Section 15(a)(ii)(b). The Companies have
requested that NPO waive this Event of Default, defer the payment of the
Servicing Fee and loan to or pay on behalf of DVL certain obligations of DVL, in
order to accommodate DVL in its continuing efforts to improve its financial
situation. Therefore, for the sum of $2,500 and other valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, NPO consents and
agrees to the following:

                  (a) NPO hereby waives any Event of Default which may have
existed under Section 15(a)(ii)(b) of the Servicing Agreement during the period
from January 1, 2001 to the dates of this Agreement, and which may exist under
said Section 15(a)(ii)(b) during the period from the date hereof through
December 31, 2001, solely by virtue of the deferral of any Servicing Fees in
excess of the Limitations.

                  (b) NPO hereby agrees that it will not demand payment by DVL
of any Servicing Fees which may be due and owing to NPO as of the date of this
Agreement and/or which NPO may be entitled to receive for the period from the
date of this Agreement through December 31, 2001 until the earlier to occur of
(i) January 1, 2002 or (ii) the time that DVL obtains cash in excess of that
required by DVL in order for it to fund its operations through January 1, 2002.

                  (c) Notwithstanding anything to the contrary contained herein,
the terms of this Agreement shall not affect any other rights of NPO under the
Servicing Agreement, or under any other agreement it has with DVL, including but
not limited to the right to receive payment of all deferred Servicing Fees, and
interest thereon computed pursuant to Section 9(a) of the Servicing Agreement,
which are currently outstanding or

<PAGE>

which may become  outstanding  during the period  from the date  hereof  through
December 31, 2001.

         3. This Agreement by NPO, may be signed in counterpart. All such
executed counterparts taken together shall be deemed an original.

         IN WITNESS WHEREOF, the undersigned has executed this Waiver on the
14th day of March, 2001.

                                      NPO MANAGEMENT LLC

                                      By: Pembroke Companies, Inc., its member

                                      By: /s/ Lawrence J. Cohen
                                          -------------------------------------
                                          Lawrence J. Cohen, President

                                      By: Omni Partnership Capital I, Inc., its
                                          Member

                                      By: /s/ Jay Chazanoff
                                          -------------------------------------
                                              Jay Chazanoff

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